14 minute read
Tuning up
Tuning up to support franchisees
Take a look under the bonnet of the Rapid Tune automotive aftermarket repair business, the 2021 Established Franchisor of the Year.
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Asmall office onsite at the very first Rapid Tune outlet was where founder Mark Rippon hatched his franchising plan.
Today the business that started in Ferntree Gully, Victoria, boasts 29 locations, 25 franchises and four company stores based in its home state and Queensland; 18 of the stores have been launched within the last five years.
The business delivers a range of mechanical repairs on all makes and models of vehicles including logbook servicing, brake repairs, air conditioning, management system diagnostics and a complete range of tyre fitting services.
Mark has personal experience as a franchisee with other brands, and that has given him the franchise smarts required to launch a system that works for franchisees. He set out to create a franchise brand with a unique culture and high franchisee satisfaction, and launched the model in 2008.
“We have steadily grown our brand, franchise footprint, customer and franchisee satisfaction scores and revenue,” Mark says.
It’s been a deliberate choice to focus on steady, sustainable growth, starting with Victoria, and in 2016, Queensland, where there are now eight outlets. Once there are 25 stores operating in the Sunshine State, Rapid Tune will expand into New South Wales.
The very first franchisee came from within the business and 90 to 95 percent of franchisees today are Rapid Tune employees-turned-business owners.
The initial franchisee has been an integral part of the company for more than a decade. Mark says,
“Over his career he has purchased and sold multiple Rapid Tune franchises, and is currently a shareholder in one of Rapid Tune's best performing outlets.”
Supporting franchisees
Three years ago Rapid Tune established a financing department to provide financial support to franchisees who are unable to access capital, and it’s been a fundamental tool in achieving the brand’s growth, says Mark.
Now the $50,000 deposit can be paid off during the duration of the franchisee agreement.
There’s also the opportunity for franchisees to access equipment financing.
Like so many other businesses, Rapid Tune had to adapt to the challenges set by operating in a pandemic. For instance, in Melbourne services were cut back to just emergency repairs during lockdown, which put a strain on those franchisees.
“We intervened to lessen the impacts and protect franchisees from the financial fallout,” explains Mark.
There were other changes across the network such as negotiating rent relief for franchisees, providing relief from royalty payments, assisting franchisees to apply for government subsidies and support, loan deferrals and financing help.
“These measures not only helped franchisees weather the storm, they also helped us build integrity and bolster our franchisee relationships, demonstrating our proposition of being one of the most supportive franchise systems in the country,” says Mark.
“We work hard to build trusted relationships, and open and honest communication with franchisees. This enables us to have the tough conversations when needed and encourage accountability in order to help our franchisees succeed.”
When franchisees start out, they work for a month in another outlet while their store is being established.
Franchisees receive training on business operations including financial reporting, employment law, compliance, sales techniques and customer service; on instore operations; technical training if required; and Fair Work Australia and Work Safe introductory training.
As franchisees build their businesses, training continues across all aspects of the business, and for any underperforming franchisees there is a tailored training program to help get them back on track.
Head office can undertake real-time analysis using a cloud-based revenue management system and provide the appropriate franchisee support.
Personalised training and support is also available to help franchisees manage mental health and work–life balance, something that proved particularly important during Covid-19.
Looking ahead, it will be the ongoing technological advancements within the industry that create service and repair opportunities for franchisees.
“All franchise outlets are fitted out with the latest service equipment needed to maintain this ever-changing industry. To date, Tyre repairs, diagnostics and vehicle repairs and maintenance remain our core sources of revenue,” says Mark.
Award-winning business
Rapid Tune was named the Australian Established Franchisor of the Year 2021 in the FCA Excellence in Franchising Awards held in October last year, after being a finalist in the two previous annual awards programs.
The award recognises excellence in an Aussie franchise that has been trading for at least five years.
So what is distinctive about the business that makes it a success?
“That’s easy,” says Mark, ”Rapid Tune’s superior culture. Every individual at Rapid Tune places a considerable amount of value in backing each other through the good times and the bad. In business, having people you can rely on for support is your greatest asset, and that’s what you get when you’re part of the Rapid Tune team.”
WHAT DOES IT TAKE TO BE A RAPID TUNE FRANCHISEE?
• Automotive and mechanical knowledge • Customer service and sales experience • A working history demonstrating commitment • A clear understanding of the responsibilities and obligations required of them when aligning with the Rapid
Tune brand • The right personality to maintain the brand culture
THE DETAILS
• Investment: $265,000 – this includes the complete site set up and franchise fee. • Marketing fee: 3.6% • Franchise fee: 9%
‘Quirky’ Royal Stacks ready to beef up
The distinctive Melbourne-area burger business has plans to more than double its number of stores over the next two years.
“W e do good classic burgers in a friendly environment, using the best ingredients. We’re not trying to be everything to everybody.”
The Royal Stacks burger restaurant started in 2016 but founder Dani Zeini’s burger journey began earlier, at Dandenong Pavilion, Grand Trailer Park Taverna, and Truck Stop Deluxe.
He wrote on Instagram after closing the Grand Trailer Park Taverna in lockdown, “At its peak, just before we shut the doors, we were getting almost 2,000 people through the doors a week. When you talk about good burgers in the CBD, I’d say we were right up there, and that was something that meant a lot to me.”
Dani flipped his efforts to enhancing the Royal Stacks flagship and today his goal is simple. “I want to be the Melbourne number one burger brand.”
He’s ready to bring in other passionate business owners to help. Royal Stacks will open four new locations over summer 2021/22, doubling its restaurants to eight, and has plans to increase its footprint significantly over the next two years.
Dani says gradual and considered growth is important for retaining the distinctive burger culture and character of the brand in a busy marketplace.
“On the surface it seems crowded but we’ve got our own little niche. We try to be quirky, more than just a burger joint. We try to be a restaurant first,” he explains. “ I want people to come to the restaurant to get that experience from the vibe, the music, the decor.”
Neon lights and elements of an American diner give the brand fresh appeal and there are features unique to each venue, such as an in-house podcast studio and a vintage Flavour Shot machine.
When it comes to restaurant design, while the kitchen layout is standard, the front of house can be more collaborative.
“We’re actually hoping franchisees will have personality traits or hobbies that will influence the design, perhaps basketball or music vernacular.,” Dani says.
Traditionally, burger stores sport dark decor and loud music; the design thread that runs through Royal Stacks stores is one of colour and light. That’s one reason Royal Stacks appeals particularly to female customers, Dani believes. Women make up 55 per cent of the main customer demographic – 18- to 34 year-olds.
Another reason is the size of the menu – and the meals. Just nine items are on the menu, which features moderately sized burgers dressed with lighter sauces and mayonnaise.
“They are not overwhelmingly heavy,” Dani says. “We’re always fresh, we’ll never do frozen. Our bread recipe has been developed by us, we use
different types of proteins.”
So what’s the story behind the name? Royal Stacks is a juxtaposition of an Aussie colloquialism, ‘stacks’, and ‘royal’, indicating premium; the implication being that you don’t have to be royal to eat like a queen every day.
“Everyone’s working really hard,” Dani says. “This is an opportunity to treat yourself. We are trying to replicate the age-old tradition of making fresh food.”
Expanding through franchising
“The plan is not to be the most franchised, but to service the franchise well. Franchising the restaurant gives others the opportunity to build their own kingdom and we have taken our time to ensure that every piece of the project is world-class.
“This is all about sharing success with people, providing others with an interest in our brand to build something of their own. Royal Stacks is a family at the end of day. I want to make people happy and this is the perfect opportunity to do so.”
Royal Stacks has highlighted 10 suburbs for possible expansion. The measured franchise expansion plan is a deliberate move to develop the business locally, and a recognition of the role franchising can play.
“Our main priority is customer satisfaction and the franchisee can provide that,” Dani says.
THE DETAILS
• It will cost $350,000 to purchase a franchise. This includes the store fit-out, kitchen equipment, capital, and franchisee fee. • Franchisees will pay a 6% royalty fee and a 1% marketing fee. • New franchisees will undertake a training program that includes an in-restaurant period of 4-6 weeks.
Turn up the volume
Fitness chain S30 Studio plans 17 new franchised outlets within the next 12 months.
This fledgling franchise offers a sensory-led, fully immersive experience, with 45-minute group weight sessions set to hiphop and R&B tracks from an immersive sound system, with dark LED-lit decor reminiscent of a nightclub.
S30 Studio workouts are streamed to display units, which control the movements, timers, and music; a lighting system integrates sound and vision, matching the beats per minute of the music to the lighting.
The Western Australian company’s existing studio footprint includes sites at Mount Lawley, South Perth, the CBD flagship, and the recently launched studio at Myaree.
S30 Studio chief operating officer Luke Faulkner believes the current enquiry level will lead to as many as 17 studio openings in 2022.
“Our studios offer a friendly and encouraging space for people of Perth to get a customised, results-driven workout,” Luke says. “We are excited to continue our expansion into the Perth metropolitan area and welcome additional franchisees to the group.”
For franchisees, all the stress of paperwork, payments and suspended memberships is removed with head office handling administration.
And before the business is even up and running,
the franchisor will be managing elements such as council approval, equipment and logistics.
Franchisee Christian Leembruggen, who co-owns the newest site at Myaree, says he was originally attracted to the brand for its unique customer experience. Having started his S30 journey as a trainer at the flagship location 12 months ago, he’s excited to be expanding his involvement in the business.
“The S30 experience is something that really stands out from competitors. From the studio space itself, to the customised workout, the offering has an edge that competitors will struggle to keep up with,” Christian explains. “The investment and innovation of the S30 owners in continuing to strengthen the company’s offering provided us with the confidence to invest and become a franchisee.”
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Turbo charged
Store manager turned franchisee Daniel Fenech now has seven Battery World stores. And he’s not stopping there. So how did he do it?
Daniel reveals there is a simple explanation for his success – his staff.
“A lot comes down to staff, you have to trust them to run the business. A lot of multi-unit franchisees fail because they don’t give staff ownership or the responsibility to make key decisions.
“Training is constant. The area manager does a lot of training and there is also a lot from the franchisor.
“What do staff do? It’s their attitude and presentation that matters. You can teach product to anyone; you can’t teach attitude and manners.”
While Daniel praises his staff’s ability to deliver first class customer service, he’s also grateful that it was the original team who were operating the first two stores that got him over the line into the third outlet.
“Once one store was doing well, then there was the opportunity for a second, and the team behind it then said we should do a third store.
“I make sure I have the right team and they share the same common goal. Every Monday we meet to see where staff are at with sales, and they have a good grasp of where the business sits.”
Transparency among the team has been important, and it’s helped shape the strategy for a business built on spotting opportunities.
“The strategy comes as the business grows. Once the third store came along, we knew the vision,” he says.
Now the goal is clear: 10 Battery World outlets in New South Wales by 2025.
The Battery World model encourages growth through multi-unit franchising and is, says Daniel, well set up for it.
“I’m not in any financial debt, this growth is achievable with cash flow. The return on investment is generally 12 to 18 months.”
About one third of the franchise network own two to three stores, he says.
How do you know you’re ready to open another store?
“The franchisor is great to deal with. It is still treated as a mum and dad group, with more personal care if it’s required, we don’t get lost in the system. The general manager will pick up the phone if you call, or call you back.”
Running his own business proved to be just what Daniel was looking for after he left his role as Battery World Caringbah store manager for a short spell in car sales. He came back to the brand to purchase the very same store.
“I had ultimate control, didn’t have to answer to anyone or seek anyone’s approval. It gave me a real sense of autonomy.”
It was the magic mix of his own savings, some funding from his parents and a bank loan that got him on the first step on the ladder to success as a business owner.
Since acquiring the stores, most have experienced significant growth and profit, including Kirrawee and South Nowra, which achieved double-digit growth from 2020–2021 (17.95 percent and 13.85 percent respectively).
Each allocated territory includes a store and a 24-hour roadside assistance van.
“With Covid, we saw a lot more consumers utilise the roadside assistance,” says Daniel. “But people prefer stores – they prefer the choice. And it gets people out of the house.”
Conversely, the business is well positioned to withstand the e-commerce onslaught.
“I don’t think online is as detrimental, you can’t post a battery. That’s bulletproofed us to the likes of Amazon,” he adds.
Daniel also owns and operates a single Opposite Lock 4WD accessories store, located next to a Battery World outlet, but this will remain a standalone business, he says.
As Daniel looks ahead to adding another three Battery World stores to his business, he reiterates the importance of a good team.
“It comes down to staff, you can buy a battery anywhere, so what makes you different? It comes down to staff.”
