YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE WWW.FRANCHISEBUSINESS.COM.AU
AUS $6.95|NZ2021 $7.95 MAY/JULY
MAY/JULY 2021
ISSUE 34 VOL 02
ISSUE 34 VOL 02
5-STAR QUALITY
Which brands come out on top?
A BETTER BITE
THE TRUTH ABOUT TERRITORY
Healthy eating is on the menu
What you must know about site selection
DRIVING AMBITION DRIVING
AMBITION Rookie franchisee gets revved up
5-STAR QUALITY Which brands come out on top?
THE TRUTH ABOUT TERRITORY What you must know about site selection
A BETTER BITE? Healthy eating is on the menu
Rookie franchisee gets revved up
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
Your are the owner, not the Tutor 1-to-1 tutoring in the family home All ages and subjects National curriculum support Exam preparation Virtual tutoring also available
CONTENTS
REGULARS
LEADERSHIP
11 EDITORIAL 12 GLOBAL EYE 14 INSIGHTS 16 THE LIST 74 GLOSSARY 76 BUYING PROCESS 77 INFLUENCERS 78 CHECKLIST 79 RESOURCES 80 A-Z LISTINGS
20 COVER STORY
SPOTLIGHT: FOOD
Snap-on franchisee Max Hardy has drive and determination in spades.
30 ON A ROLL
One multi-unit franchisee is stacking up the stores.
32 MAKING A SPLASH
Mum dives into swim school franchise.
36 BRUSH STROKES
Where art and wine combine.
38 5 FRANCHISE SUPERSTARS Outstanding leadership that helps franchisees.
24 KWIK STEP TO SUCCESS One couple turn business into a multi-state affair.
26 TECH TALK
40 HERO IMAGE
Why brands love sports sponsorship.
42 THE HEIGHT OF AMBITION
Gutter-Vac, a family business for 30 years.
Finding IT solutions is all in a day’s work at Computer Troubleshooters.
44 MEXICAN WAVE
Casual dining’s growing tribe.
48 A BETTER BITE
28 ROLLING OUT THE PASSION
SPOTLIGHT: AUTO
SPOTLIGHT: B2B
What healthy eating looks like now.
Vietnamese chain hits big milestones.
FRANCHISE BASICS 60 CONVINCE ME ABOUT MY TERRITORY
Why a franchisor’s assumptions aren’t enough.
62 HOW DOES HR FIT?
Understand the role of HR in a franchise.
66 BANKING ON YOUR FUTURE Your company is not an ATM!
52 REVVED UP
Four franchisees talk all things motor.
57 POWERING PROFESSIONALS
Bring your business skills to a service-based franchise.
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68 TAXING ISSUES
Easy guide to key tax concerns.
70 THE CHEAT SHEET
Check these franchise agreement essentials before you buy.
visit appliancetaggingservices.com.au or contact Chris Longley +61 1300 287 669 franchising@ats.com.au 16 | 20 2 0 FR A NCHISE DIRECTORY
EDITORIAL
A dose of positivity A survey conducted for the Franchise Council of Australia and released earlier this year reveals optimism and franchisee profitability are trending in franchising. It’s a sector that has always appealed to anyone looking to create a new future for themselves, with the backing of a business model that has proven its worth. Our cover story this issue is an inspiring tale of someone who was just perfect for a franchisee role, and a franchisor keen to adapt where necessary to accommodate their needs. As you will read in this edition, there is plenty of inspiration to be found in the franchise sector - you could start with the list of 5-star franchises rated for their financial and system transparency, and then read about the leading franchise executives awarded for their contributions to franchisee business. There are fresh concepts hitting the franchise landscape, and established brands innovating and collaborating to bring their products or services to a wider audience, and individual business owners forging a path with their chosen brand. You will recognise some of the brands featured in this edition, others will be new to you. Brands such as Battery World, Computer Troubleshooters, Delicia, Gutter-Vac, Jax Tyres & Auto, Jump! Swim, Kwik Kopy, Mad Mex, McDonald’s, Paint & Sip, Pirtek, Red Rooster, Roll’d, Snap-on Tools... In this issue of our quarterly magazine we shine the spotlight on some of the franchise chains operating in the healthy eating category, businessto-business brands, and the Mexican casual dining marketplace. Choosing the brand is a major step in the journey to becoming a franchisee; vitally important are business issues like location or territory, assessing financial viability, and understanding HR — and you can find more about these in our Franchise Basics section. Good luck with your search!
EDITOR
Sarah Stowe P: 02 8224 8371 sarah.stowe@octomedia.com.au
SUB-EDITOR Karen Gee
SENIOR ACCOUNT MANAGER
Charlotte Redfern P: 02 8224 8373 charlotte.redfern@octomedia.com.au
Sar a h Sarah Stowe Editor
Advertising coordinator
Simone Lagudi P: 02 8224 8375 simone.l@octomedia.com.au
GRAPHIC DESIGN
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
MAY/JULY 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
FRANCHISE BRANDS ARE RARING TO GO New ideas and established concepts are ready for expansion in 2021.
MAILBOXESETC BUYS PACK & SEND Logistics and shipping franchise Pack & Send has been sold to MBE Worldwide. Pack & Send will continue to operate as an independent company under current management and will maintain its name and business concept. CEO Michael Paul began the business back in 1993 and has overseen national and international growth, adding master licensees for both the UK and New Zealand. Michael said “This is an exciting development for the Pack & Send franchise system. Combining forces with MBE Worldwide creates unique opportunities to synergise with colleagues similarly steeped in managing a franchise‐based network of entrepreneurs.”
MBE is a third-party provider of shipping, fulfilment, print and marketing solutions to businesses and consumers across the globe. Paolo Fiorelli, chairman and CEO at MBE, said the two businesses are well-aligned. “Pack & Send is an excellent strategic fit for MBE because of its entrepreneur‐ driven, people‐centric, customer‐first business model, which complements our MBE business and culture,” he said. The MBE group includes complementary brands Mail Boxes Etc., AlphaGraphics and PostNet. In the first half of the financial year 2021, Pack & Send network sales rocketed to $42.09m. n
KID’S GYM CHAIN LAUNCHES FRANCHISE BK’s Gymnastics is franchising, with plans to add 10 franchise sites this year to its existing seven company-owned locations. The gymnastics brand is part of Belgravia Group, one of Australia’s largest-privately owned companies, with a portfolio of health and fitness businesses. The brand’s CEO Mark Rendell said “We have seen a major growth in memberships over the last two years – up 225 per cent. “We’re looking to secure 10 new franchise sites before the end of the year. With our current membership growth levels and the backing of Belgravia giving franchisees confidence in the offering, we’re very optimistic about reaching this target.”
Franchise sites are available Australia-wide and footprints range from 350-650m2 with existing indoor sports centres or buildings able to be converted into a BK’s Gymnastics facility. n
SNAP FITNESS TARGETS 25 GYMS
AUSSIE TO OPEN 24 OUTLETS
Snap Fitness opened nine clubs over nine weeks early 2021, going full steam ahead with the plan to have a network of 281 clubs by the end of first quarter. Chris Caldwell, CEO at Lift Brands Asia Pacific, Snap’s parent company, said “We have another 10 clubs in build out phase, that’s 19 confirmed for this year and we are aiming to get to 25 new clubs open in 2021.” While most of the gyms set to open are on the eastern seaboard, with another four marked out for New Zealand, Western Australia has potential with good central territories and the southern development corridor. n
Mortgage broking firm Aussie will open a further 24 stores this year to bring the total number of outlets to more than 244. Aussie is heavily recruiting to add to its broker network with new sites already pinpointed. Locations include areas such as Macquarie Park, Vincentia, Bankstown, Bella Vista, Ingleburn, Dickson, Ballarat, Mudgeeraba, Ashmore, Coomera, Buderim, North Lakes, Blackwood, and Mordialloc. Aussie CEO, James Symond, said “The growth of our broker and store networks are providing people the opportunity to join Aussie from both financial and non-financial backgrounds, with 198 recruits hired and trained during 2020 and more than 220 projected to join in 2021.” n MAY/JULY 2021 | 12 | WWW.FRANCHISEBUSINESS.COM.AU
SOUL BURGER SIGNS FIRST FRANCHISEES Plant-based burger joint Soul Burger’s first franchisee has signed up to run a Parramatta location which will be the anchor for Western Sydney as the group looks to grow its vegan chain across the city. Soul Burger is moving towards a fully franchised model, so the two existing company-owned restaurants, in Randwick and Glebe, are on the market. Buyers who snap up either of these sites will enjoy the first 12 months free of franchise fees and over the following six months will pay half-price royalty and marketing levies. n
WORKSPACE FIRM TO OPEN 100 OFFICES IWG, a flexible workspace provider, plans to open up new opportunities to invest in the business with a strategy to develop up to 150 franchised centres across Australia and New Zealand. There are regional pockets identified for development across New South Wales and Queensland, while cities in Tasmania and New Zealand have been earmarked for multiple sites.
SHANE WARNE LAUNCHES CRICKET STAR ACADEMY
For 30 years IWG has operated office locations for rent in urban areas and transport hubs. Options include coworking facilities booked by the hour to long term office leases. The business has a 30-centre target each year for up to four years in Australia. Over the next four years the target in New Zealand is for a total of 30 centres. n
MILESTONES The company behind SWIMART is celebrating its 40th anniversary. Waterco began selling PVC pipes in Sydney with three staff and one truck driver. Today this is an ASX listed company. QUEST APARTMENT HOTELS is giving new franchisees the chance to take on a brand new, or greenfield, location. Previously the hotel chain only allowed existing franchisees to operate new apartment hotels. POOLWERX has two new senior executive roles, appointing a chief technology officer, and a chief innovation officer who will be based in New York. SNAP PRINT & DESIGN has joined forces with digital design platform Canva to give franchisees a competitive advantage.
Shane Warne, Aussie cricket legend and commentator, is ready to pass on his sporting insights and knowledge to the next generation of wannabe cricketers with the launch of a kids program, Cricket Star Academy. The cricketing great has joined forces with national children’s sport program provider Sport Star Academy (SSA) to develop a grassroots cricket program. The new tie-up creates a new and exciting opportunity for young children to learn and improve their cricket skills. Shane Warne says “I am excited to be part of the next generation of cricketers. Through my new program, Cricket Star Academy we will develop and nurture young players to be the best they can be. Professional coaching, all year round and most importantly fun!” The franchised Sport Star Academy teaches a variety of sports including football, tennis, footy and basketball. n
COWCH DESSERT COCKTAIL BAR has signed its first franchisees who will open up a brand new location in Garden City. CYCLEBAR’s first Queensland franchisees have signed up. George and Nadia Economous will open the Carindale outlet for the premium indoor cycling business. Franchisees in the LAING+SIMMONS boutique real estate business joined with members of head office to buy the New South Wales firm. Japanese casual dining chain MOTTO MOTTO appointed its first franchisees for New South Wales. Boutique fitness business ZADI has sold 11 sites to two franchisees. n
STRETCHLAB LAUNCHES IN AUSTRALIA US-based wellness franchise StretchLab is landing in Australia and has former AFL player Tory Dickson and professional cricketer James Pattinson as brand ambassadors and investors. The two athletes have partnered with Boutique Fitness Studios, the master franchise group that brought indoor fitness chain CycleBar to Australia. The concept offers customised, one-onone assisted stretch sessions with fully trained staff . Matt Gordin, CEO of Boutique Fitness MAY/JULY 2021 | 13 | WWW.FRANCHISEBUSINESS.COM.AU
Studios, said “The unique beauty of this concept is that it complements almost every other fitness brand out there. It’s adding value rather than creating competition. The franchise opportunity is an affordable, scalable way for entrepreneurs of all types to bring a proven and sustainable business model to their market.” Matt has plans to expand the unique concept across Australia with a minimum of 50 studios; the first set to open mid-year in Currambine, Western Australia. n
INSIGHTS
POSITIVE VIBES The franchise sector started 2021 encouraged about the immediate future.
A
ccording to a survey released in March this year, overall there’s a mood of optimism coursing through franchising.
The report, commissioned by the Franchise Council of Australia and conducted by FRANData, shows the December quarter was a better period for many franchise brands than previous periods in 2020. The Pulse Check survey comprised responses from 68 Australian franchise systems covering 14,596 outlets. It revealed that one third of respondents (33 per cent) reported a December 2020 quarterly revenue rise of more than 10 per cent compared to the corresponding period in 2019. So who have been the lucky industries to see business in a good light? Quick service restaurants, maintenance, health, courier and freight industries proved resilient and showed positive trading. However sit-down restaurants and cafes, fitness clubs and accommodation businesses were harder hit. Unfortunately a total of 62 franchised units were permanently closed across 18 systems, predominantly in the cafe sector. While 53 per cent of respondents indicated some level of loss making within their franchise system, 47 per cent of respondents reported none of their franchisees would record a trading loss in the December quarter. That’s a lift from 24 per cent in the September quarter. Thirty five brands reported the opening of a total of 157 new units, most of these retail, pet services and home maintenance services. There was positive sentiment for the March 2021 quarter, with 51 per cent of respondents anticipating a moderate (37 per cent) or significant (14 per cent) increase in revenue.
OPTIMISM IS ON THE RISE According to the December Pulse Check, 75 per cent (up from 64 per cent last quarter) of respondents felt more optimistic about business conditions in the next six months; of these, 22 per cent (up from 16 per cent last quarter) felt very optimistic.
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BUSINESS CONDITIONS
53% optimistic 22% very optimistic 15% indifferent 10% pessimistic
There was also a lift in those who felt indifference about the upcoming half year – 15 per cent (up from 12 per cent last quarter). The rise in optimism wasn’t the only good news: a negative view of the business landscape in the first six months of 2021 dropped by half, to just 10 per cent of respondents. Last September 30 per cent were providing some form of financial support (direct or indirect) to at least 50 per cent of their network. The March Pulse Check showed this has dropped significantly, and only 9 per cent of franchisors in the last quarter were providing financial support to more than half of their franchisees. FRANData Australia CEO Darryn McAuliffe says “On the back of a much stronger December quarter, many franchisors (61 per cent) are feeling optimistic about March revenues. For most franchise systems, this positive sentiment will have been based on their real time data on revenue collection and trends during the post-holiday data collection period.”
FRANCHISE PROFITABILITY Darryn says the optimistic outlook is good news for franchisees and the broader small business community. Which is not to suggest there are not challenges remaining, and these do centre on franchise profitability, rental issues, and being able to recruit franchisees. Darryn says the most significant issue recognised by most franchise systems is the financial performance of their franchisees. “On a positive note for franchisees this was of far greater importance to franchisors than their own financials,” he explains. “We expect an ongoing sharp focus by franchisors on collective bargaining, targeted support and other helpful measures for franchisees.” n
MOST OPTIMISTIC SECTORS Quick service restaurants Cafes and restaurants Fitness Health related Baked goods
WHAT FRANCHISORS ARE CONCERNED ABOUT Franchisors have placed their own financial performance way down on the list. The top five challenges remained the same as in other periods, but with a shift in importance. 1. Financial performance of franchisees 2. Landlord issues 3. Franchisee recruitment 4. Wellness of franchisees and support staff 5. Engagement and satisfaction of franchisees In June 2020 landlord issues were the number one concern; in September it was wellness of franchisees and support staff.
LEAST OPTIMISTIC INDUSTRIES
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Personnel services Retail stores Retail food
THE LIST
5 STAR QUALITY Find a top drawer business opportunity that’s right for you and your budget.
H
ow do you find a 5-star franchise? Well, the independent FRANData business has created the Australian Franchise Rating Scale that requires businesses to demonstrate a high level of transparency and an outstanding overall level of franchise performance across seven key categories: 1. system performance 2. franchisee financial performance 3. franchisee engagement and satisfaction
4. franchisor training and support 5. franchisor financial performance 6. lender relations 7. compliance and assurance.
For brands who reach a high standard across these categories, the reward is a 4-star or 5-star rating. Here are the current Australian 5-star franchises [as of April 5, 2021].
SNAP FITNESS Snap was the very first gym to achieve a top ranking on the Australian Franchise Rating Scale. Chris Caldwell heads up Snap Fitness in Australia, and he praised the franchisees and their team members for their efforts in sustaining top-level performance. He said the group’s capacity for innovation has also helped it stay ahead of the game. “We are extremely humbled and excited to have been awarded the highest rating possible,” he said. “Our franchisees and their teams go nothing short of above and beyond to achieve excellence in their clubs, so it is
with incredible pride that I say this is a reflection of their hard work.” Chris said the focus on creating a nimble, adaptive and forward thinking franchise model will continue. “It is a standard we are committed to serve well into the future,” he said. Darryn McAuliffe, FRANData Australia CEO, believes the high-level rating will only serve to increase the brand’s appeal to banks and other lenders. “It will be no surprise there will be a heightened interest in Snap Fitness from the lending community, particularly given a Franchise Underwriting Report has also been completed, categorising Snap as
having a ‘low default risk’.” Darryn said two elements in particular stood out for the review team: internal data collection and reporting capabilities. These allow for franchise performance to be effectively monitored, and for early alerts that extra support might be needed by a franchisee. “Snap Fitness also evidenced a strong commitment to the measurement and ongoing monitoring of franchisee satisfaction. These factors coupled with a disciplined recruitment program have contributed strongly to a very low churn rate across the network,” he said.
TATTS, NSW LOTTERIES, GOLDEN CASKET AND SA LOTTERIES It’s a ratings clean sweep for “the Lott” (part of Tabcorp), which operates all four lottery brands. Darryn McAuliffe said the review team was particularly impressed with the range of new initiatives introduced by the lottery group to support the financial performance of more than 3800
franchisees. The review revealed a high level of investment in the professional development of the leadership and head office teams. This not only helps maintain a clear “culture of compliance” but also equips them to provide optimal levels of support to their franchisees, he said.
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Tabcorp’s brands are representative of “listening” franchises, he said. “The good systems are listening to their franchisees, who are listening to their customers, and are then refining and improving the model. They have addressed the financial performance of the franchisees.”
THE LIST
QUEST APARTMENT HOTELS
ANZ MOBILE LENDING
POOLWERX
In 2019 accommodation franchise Quest Apartment Hotels was named the country’s first system with a 5-star rating under the Australian Franchise Rating Scale. “In achieving the 5-star rating, the extended-stay accommodation specialists have been able to demonstrate a high level of transparency and an outstanding overall level of franchise performance,” Darryn pointed out. He cited the systems and disciplines in place that allowed Quest to measure, monitor and support a high level of performance at an individual unit level. The business was founded by executive chairman Paul Constantinou back in 1988 with a single property in Fitzroy, Melbourne. Today the network of 170+ properties is part of The Ascott Limited, a serviced residence and hotel chain operator based in Singapore.
ANZ Mobile Lending scooped up a coveted 5-star rating back in 2019. According to Darryn McAuliffe, three elements in particular stood out for this financial services brand. “The review team was particularly impressed with the financial performance across the franchisee network, a strong onboarding process and the high investment in supporting their franchisees. Not surprisingly in the financial services sector, a very robust compliance framework was also evidenced,” he said.
The highly-awarded poolcare business was one of the earlier brands to scoop a top rating. At the time, Andrew Walker, chief development officer, said the rating reflected the support the business is delivering franchisees. “Franchise buyers see the value of the brand through all the processes being evaluated by an independent party.” Darryn commented on the brand’s transparency. “As one of the first Australian franchise systems to achieve a 5-star rating outcome, Poolwerx continues to set the standard with their approach to transparency and their focus on the success of their franchisees.” Reviewers considered two programs in particular to be indicative of their franchise support. “Their ongoing investment in both ‘Learning and Development’ and ‘Franchise Partner support programs’ is proving to be a key driver of performance across their network,” he said.
THE CHEESECAKE SHOP
GUTTER-VAC
PACK & SEND
The first food franchise to score a 5-star rating, the dessert chain was able to demonstrate a very high level of transparency and franchise performance to gain its top mark. The Cheesecake Shop’s MD Ken Rosebery said, “We are thrilled to achieve this recognition, which validates our focus on trust, transparency and rigour as essential qualities in contributing to our long-term success.” What stood out for the reviewers was the very high standard of systems and processes in the Cheesecake Shop backed up by top quality information that reflected best practice across most categories. “The review team was particularly impressed with their financial reporting framework, the financial performance of franchisees and their support model,” explained Darryn. “These results were also validated by the responses of franchisees in their latest external engagement and satisfaction report.”
It was Gutter-Vac’s financial performance across the gutter-cleaning network, franchisee engagement levels and the support provided to its franchisees that impressed the ratings review team. Gutter-Vac founder and CEO Warren Ballantyne said, “Gutter-Vac is delighted to have been assessed as a 5-star franchise system. We have worked hard and invested heavily to get to where we are today. “For us, this rating also effectively recognises the performance and contribution of every franchisee across our 90-strong network. We will continue to be driven by opportunities for continuous improvement for the benefit of our franchisees and their customers.” Darryn described Gutter-Vac as one of the great success stories in Australian franchising [read more about this on page 42]. He told Inside Franchise Business, “Following our review of 100 individual measures across the seven performance standards, we are pleased to recognise the Gutter-Vac franchise system for its superior transparency and very high levels of performance. Their 5-star rating has been underpinned by their ability to substantiate that performance with fact-based data.”
The service franchise, which in March this year was acquired by global business MBE Worldwide, was rewarded for its focus on technology innovation and commitment. Pack & Send has invested more than $5 million in new technology initiatives. CEO and founder Michael Paul said “We operate a technology business within our operations to develop and support innovative and scalable proprietary technology products so as to provide our franchisees with e-commerce customer solutions, increased sales opportunities, increased productivity and also provide real-time data analytics on their business operations.” FRANData’s CEO praised the investment and focus on technology. “In an increasingly digital world there is no doubt that technological innovation is both important for franchisees winning more customers and also equipping the franchisor to provide optimal levels of franchisee support,” he said. “Pack & Send also has very strong stability, which gives it the capacity to reinvest in its franchise business system. This is not only attractive to prospective franchisees but also to lenders, making it easier for franchisees to obtain financing.”
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a proven business system be part of a successful brand
Over 40 years of successful trading shows that the Amber business system works. We aim to take advantage of the past to leverage a stronger future. The Amber brand is synonymous with style and value. Sourcing product from around the world, Inspirational living spaces are made easy with our huge range of pavers, natural stone, retaining walls, floor and wall tiles and bathroomware. With product for both the indoor and outdoor areas of the home, coupled with our group buying power, the Amber franchise model provides a unique business opportunity like no other. We currently have 29 stores across three states/territories with many thousands of
For more information contact: Head of Franchise Relations and Development Phone: 02 9621 0444 Email: franchising@ambertiles.com.au www.ambertiles.com.au
satisfied customers. Recent market research continues to confirm that Amber has a powerful unaided recall with customers - incredibly strong in fact for any retail field. The success of our network has always depended on the success of our Franchisees. Our stores are supported by market leading IT systems with a dedicated and experienced support team with a passion for the success of our franchisees. It's our intention to grow and nurture the Amber Franchisee family well into the future.
LEADERSHIP COVER STORY
“HE’S TOTALLY
THE GUY!” MAY/JULY 2021 | 20 | WWW.FRANCHISEBUSINESS.COM.AU
This Rookie Franchisee of the Year narrowly missed joining the million dollar club in his first year. Max Hardy has drive and determination in spades. By Sarah Stowe
I
t might have taken 12 months for Max Hardy to get on the road but the wait was worth it. So says Stacey Gilbert, Snap-on Tools’ national franchise manager. “He’s totally the guy,” she says. “He doesn’t have a disability, he is just height-challenged,” says Stacey. To ensure this dynamo franchisee could get stuck into his new business the truck cab required adjustment to suit his needs: readjusting
the pedals, adding a customised ladder for him to service his customers. “You have to be prepared to think outside the box and go the extra mile. We stuck with each other for the 12 months. All the adjustments he paid for out of his capital expenditure, which was incorporated into his business plan,” Stacey explains. “It was all credit to Max, he found people willing to work with him. He came to us a fully qualified technician, we
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knew he had tenacity and had overcome obstacles not applicable to others.” It was not the first time Snap-on had worked to adjust the mobile shop to suit an individual franchisee. Wheelchair franchisee Steven Fell retired from Snap-on a couple of years ago after 18 years. Snap-on had built a completely different truck – Steven was able to lever himself out of his driver seat, into his wheelchair, and service customers from an aisle that was wider than the standard fitout. ⊲
COVER STORY
SNAP-ON IS ALL ABOUT PROFESSIONAL TOOLS The business began in 1920 and today is one of the longest running franchises in the world. It is a leading developer, manufacturer and marketer of tool and equipment solutions for professional tool users from NASA to the local mechanic. The reputation it has for top-class tools tends to attract mechanics and hands-on individuals who can share their passion with customers. Max Hardy is someone who made the jump from employed mechanic to a driven Snap-on franchisee, and he’s reaping the benefits. Having spent 12 years as a mechanic, Max started his own Brisbane-based Snap-on franchise 14 months ago, and with hard work his business grew rapidly. Getting into his stride in the first year with a phenomenal near million dollar turnover wasn’t what he expected. “I was overwhelmed. If you’d told me that would happen in the first 12 months I wouldn’t have believed you,” he says. He had always planned on doing something for himself but he admits he is a procrastinator, so the decision took time. “I was getting bored doing what I was doing as a mechanic but I didn’t really know anything else,” Max says. “There was the fear of not knowing what was going to happen if I had my own business. Then I thought, the worst that can happen is I end up doing what I am doing now.” His experience with Snap-on started during his apprenticeship; his boss introduced the brand to him.
“So when the opportunity came up to join the team as a franchisee I thought it was perfect as I was still able to be around the industry without being directly in it.” With no business background, Max didn’t know where to start when it came to setting himself up, so a franchise made perfect sense. He could get support from Snap-on whenever he needed it. “The advantage with Snap-on is that there is a lot of training, guidance and support from the very beginning,” Max says. “The support from head office is really impressive, whether it’s IT, advertising, purchasing or marketing, they’re multifaceted in their approach and support. “When you think of what we all went through in 2020, Snap-on never left my
side. The support was incredible from head office,” he says. “They are there to help you out and knowing that they’re with you the whole way – it fills you with confidence.” But it’s not just assistance from head office that ensures success; the support from the franchisee network is also invaluable. Franchisees are there to give tips on products, demonstrations and advice on working with customers. And it’s the relationship with the customer that pays dividends. “I love it when a customer comes to me with a problem and I can offer them a solution,” Max says. “Whether it’s a new or existing customer, you build really close relationships with the customers through regular contact. “I meet people at their workplace or their home, whatever works best for them. Dealing with people, communicating with them and showing them how you can help them is satisfying. “I love being able to provide a service and know that I am supporting myself rather than working for someone else.” Already, Max is looking for an assistant to help him grow the business: he has big plans to be a multi-franchisee in the future, running a second Snap-on truck. His advice for someone considering a Snap-on franchise is to talk to their local franchisee and to take the discovery tour. “They’ll explain all the methods and the advantages of having your own business, I wish I’d done it sooner,” Max admits. “Other than that, just give it a go. Get around people. Don’t stand back, grab the opportunity and make it yours. You won’t regret it for a second.” n
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ADVERTORIAL
FRANCHISEES AND FRANCHISOR PARTNERING TO DRIVE INNOVATION SUCCESS AT 7-ELEVEN 7-Eleven Australia is making major investments in technology and innovation to set itself up to continue to lead the convenience market in the years ahead. The investment is focused on the customer, to ensure that the technology supports customer needs across bricks and mortar stores and digital interactions. The company’s technology ambition is all about making customers’ lives easier by providing products and services when, where and how they want them. 7-Eleven’s franchisees and their teams not only benefit from the insight and sales building opportunities the technology provides, but also play a significant role in testing, implementation and customer engagement. Nouman Khan is a second generation 7-Eleven franchisee, who has been with the network as a franchisee for more than 15 years. Starting in convenience in his father’s 7-Eleven store when he was young, Nouman now owns and operates two 7-Eleven stores in Minto and Bankstown in Sydney. Mr Khan says that embracing digital such as the new My 7-Eleven app with integrated fuel price lock, offers, loyalty and personalised rewards adds value to his regular customers, as well as attracting new and repeat customers to the brand overall. “Having a business wide digital system makes it simpler to consistently reward my customers and give them extra value,” Mr Khan said. “We are all creatures of habit, and this app can help establish that initial connection with my store and 7-Eleven. It gives people reasons to try 7-Eleven and to keep choosing our stores over the competition.” The simplicity of the app is critical to both customer and team member engagement. “When the technology is simple to use, like the My 7-Eleven app, it’s easier to have a conversation with a customer, or to show them on your own phone how it might benefit them,” he said. “When it’s simple and easy to use for everyone, the confidence
level is high and that makes it easy for team members to have conversations about value, freebies and rewards with customers. His expertise as both a franchisee and in convenience retail means he often plays a role in testing, and providing feedback for new innovations being developed by 7-Eleven. “One of the most important aspects of any new innovation’s success is how easy it is at store level. If it’s too hard operationally team members aren’t as confident to talk to customers about it. You get customer disappointment if something that’s advertised isn’t delivered well too,” he says. “Bringing a franchisee perspective to changes being rolled out identifies operational constraints. That in-store perspective sees any problems that need resolving or things that might be improved. “We are the face of the brand for customers so we have a lot of insight into what might work for them and what would be pain points. We all benefit when innovation is successful.” In the 7-Eleven network, in addition to the business advice and coaching provided, franchisees share knowledge and support each other. This is critical when innovations are being rolled out. “I think when franchisees see their peers embracing innovation it creates a sense of ease that it’s possible to be done. They can relate to their peers, and sometimes just want to talk to another franchisee to ask questions or provide feedback. Mr Khan also believes innovation success is heavily influenced by the franchisees and leaders in stores. “There’s tools, training and even videos that 7-Eleven provides, which are important, but as the leader of my businesses, it’s up to me to ensure that innovations are successfully implemented in my stores,” Mr Khan said. “If the franchisee or store leader is on board with the innovation, the rapport you have with your team means they embrace it a lot quicker and faster. “It’s key that I talk with my team about new initiatives, the benefits to our customers. Once the customer is at the heart of those conversations, everything else falls into place.”
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KWIK STEP TO SUCCESS One couple has turned their multistate Kwik Kopy franchise business into a family affair.
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uzan and Paul Lindsey own the award-winning Kwik Kopy Five Dock in Sydney, named Franchise of the Year in 2019. They co-own Kwik Kopy Coburg with a former employee. And now Suzan has bought the Shellharbour franchise. It all started when the couple moved from Victoria to Suzan’s home state New South Wales. Paul was a dedicated Kwik Kopy employee who had notched up decades with the print and design firm. But suddenly the pair had the opportunity to go into the business at Five Dock. “We had three young children and it was a huge risk. We didn’t know if we would have enough money to support us to give the business a chance to grow,” says Suzan. Despite the nervousness, the couple took the leap and bought the franchise. And it proved to be a good move. “It all turned out wonderfully. I was an account manager in media, Paul ran the
centre and I did the accounting from home. Within six months we were quite content with the business, it was paying for itself, we were paying out the mortgage.” Suzan says the pair were told to expect to break-even in two years, and they were way ahead of that. It wasn’t long before the couple spread their wings. One employee, Dipika, moved to Victoria and the couple went into business with her in the Coburg Kwik Kopy franchise. Now their franchisee partner, who emigrated from Nepal and was sponsored by Suzan and Paul, is going gangbusters, employing her first staff member. The latest addition to the portfolio of businesses, the outlet at Shellharbour, is an opportunity for Suzan to become hands-on in her own business. “I’m doing four weeks training learning all terminology, learning how to manage staff, that’s all new to me. Setting goals is part of my training. For me, it’s a daily goal: get some new customers, follow up leads, have a great day.” It’s now become a family affair, with all
three offspring involved in some way in the business. “We have Daymein working with us as production manager. The other two, Naythen and Emma, are 10 and nine. “The kids have helped out when there’s a big job on – collating, putting books together. Emma’s the sealer of envelopes – she’s a master. Naythen is already learning the accounting side – he’s keen and he’s good at maths.” Suzan still handles the accounts for all of the stores – a sign that the couple understand the importance of playing to their own strengths. Neither has a background in family business, but there’s been no lack of business initiative. Before moving back to New South Wales, Paul spotted an opportunity to develop a 4D baby ultrasound service. While parents-in-waiting could get an ultrasound pic from some medical centres, he believed it was a commercial venture in the making. “We travelled to the US and purchased an ultrasound machine,” explains Suzan. “I
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was trained for a week on how to do an ultrasound and I practised for a year at no charge out the front of Baby Bunting.” Once comfortable with the procedure Suzan rented a shop and ran the business for five years before selling it to her employee. So now the couple have interests in three geographically-distant locations and keep a close eye on all three. But each one has a different hands-on franchisee: the Five Dock franchise in Sydney where Paul takes a hands-on role four days a week; the co-owned Coburg store run by Dipika (with daily phone calls and accounts handled by Suzan); and the Shellharbour outlet run by Suzan, where Paul works one day a week. The couple learned the importance of a strong team when Paul stepped back from the business for six months due to serious illness. “The team has to be very supportive and understanding,” says Suzan. The brand new Shellharbour outlet opened in December, with an official opening in February 2021. “I had to find the site, get the builders in, electricians in, and get it all ready. It’s been wonderful. In 12 months we should be doing well. In five years we expect to be comfortable.” In a few years the plan is to get their younger son involved and encourage him to join forces with his older brother to buy out their parents or grow the business further. For now, Suzan is relishing the work and the connection with community. “I’m loving it, it’s rewarding, if you follow through with a sale it’s very fulfilling. It’s surprising how many people you come across, being part of the community for a long time, which is great.” n
Setting goals is part of my training. For me, it’s a daily goal: get some new customers, follow up leads, have a great day.
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LEADERSHIP
TECH TALK Itching to get your IT skills to work? Finding solutions to IT concerns are all in a day’s work for Computer Troubleshooters.
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he need for effective communications and the importance of managing technology are putting the spotlight on IT services as Michael Dowling, national manager, Computer Troubleshooters, explains in this Q&A. Q: WHAT ARE YOUR EXPANSION PLANS FOR 2021 AND BEYOND? A: The last few years for us have been about consolidation of the franchise network as the need for IT services has evolved into the managed services space and now the managed security space away from the traditional break/fix model. Our network has had to move with the times and as a result has focused on ensuring the existing franchise network has transitioned to the subscription based service model. Now that has been achieved and with the following factors at play: IT services and infrastructure has never been more complicated for small to medium businesses. Employing people with the necessary IT skills has also become more difficult with the shortage of IT skills in the Australian economy. The shift to new working models thanks to Covid-19 (remote working) means more
businesses understand IT is an enabler for their business and they always need to remain connected. With our consolidation we have built the preferred supplier program so our franchisees can source and utilise the right tools set to deliver the services required by the small to medium businesses. So we are aggressively now looking for new franchisees with experience in the managed services provider (MSP) space who want to make IT their business. The aim is to add to our network of franchisees across all states and the biggest opportunities lie in Tasmania, South Australia, Northern Territory and Canberra. Q: CAN YOU SHARE SOME STATISTICS THAT HIGHLIGHT WHY THIS IS A GOOD BUSINESS TO INVEST IN RIGHT NOW? A: IT services, which declined by 1.5 per cent last year, will grow by 2.3 per cent in 2021 to $34.4 billion. At the same time, communications services will gain an uplift of 3.4 per cent to $26 billion, bouncing back from a decline of 2.2 per cent during the pandemic, the predictions suggest. [Source: Aussie tech spend to hit $98B in 2021 (arnnet.com.au)] MSP customers, especially small businesses, have been facing increased
security threats year over year. In the 2020 survey, 29 percent of respondents listed ‘‘meeting security risks’’ as the top IT need for their clients. Another 14 percent of respondents listed cybersecurity services as a top need. TOP 6 IT NEEDS OF MSP CLIENTS Meeting security risks
29%
Cybersecurity services (e.g. AV, AM or ransomware protection)
14%
Public cloud adoption/migration/support (laaS, PaaS, SaaS)
9%
Private cloud adoption/migration
6%
Increasing the value of IT as a competitive advantage
4%
Increasing the level of IT Automation
4%
Source: Kaseya white paper 2020 MSP benchmark - survey 2020
Deloitte Access Economics in 2017 indicated that there are more than 2.1 million small to medium businesses in Australia. The impact of the NBN means more businesses are connected and the area of VoIP Unified communications is a growth opportunity for all of our franchisees. All franchisees undertake the NBN training program to become accredited advisers.
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FRANCHISEE TESTIMONIALS ROBERTO MULLER, WELSHPOOL, WA
On average, two in five SMEs report that they’ve fallen victim to a ransomware attack. In particular, SMEs who don’t outsource their IT services are more at risk.* [Source: Datto ANZ Ransomware Report 2019] In addition the residential market becomes more interesting with the trends of remote working, Internet of things and more connected devices. It’s a growth market driven by the client. During Covid 80 per cent of our franchise network reported growth in 2020 calendar year. The Internet of Things (IoT) market in Australia is set to explode to $4 billion by 2020, according to a forecast by Telsyte. Australian households are expected to have 29 devices connected to the internet by the end of the decade, nearly tripling the current number of 11, the report says. Issues are security, connectivity and ensuring devices are performing optimally. Q: WHAT ARE YOU CORE SERVICES? A: Business services: managed services, managed cybersecurity, business continuity – backup, Microsoft 365 Solutions, VoIP communications, IT support, repairs and hardware and software procurement. Residential services: cyber security, computer repairs and support, hardware and software, data recovery and backup plans. Q: WHAT DO CUSTOMERS NOW EXPECT FROM YOU AS A B2B SERVICE? A: Client expectations are high; they
expect us not only to deliver our services but they are looking to us to guide and drive their application of technology to deliver significant business benefits. When they engage our franchisees they expect all technology issues will be resolved. Q: WHAT'S YOUR USP FROM A CUSTOMER PERSPECTIVE? A: Technology solved from a local, approachable and dependable provider, all supported by a 100 per cent guarantee on services delivered. Q: HOW LONG TYPICALLY DO FRANCHISEES STAY IN YOUR BUSINESS? A: The average franchise tenure works out to 9.6 years as an average with 60 per cent of franchisees with us for 10-plus years. Q: WHAT SKILLS DO YOU LOOK FOR IN A FRANCHISEE? A: We are looking for people with solid IT experience and knowledge who have either worked in corporate IT departments, perhaps then graduated into more senior roles in particular around cloud and security. Ideally people will come with experience in MSP. Of course, as a relatively low cost entry point this opportunity is perfect for a partnership of two people, with one person skilled in selling MSP services and the other delivering the technical services. n
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“Choosing to start a business was one of the most important decisions I have made. I only realised the vast amount of things I needed when I actually started my own business. “Michael is always available to provide guidance when I need it and is always making sure we're all doing well. “The amount of support and assistance I receive from fellow franchisees is invaluable and they are always willing to help and share their experiences. I couldn't ask for a better team by my side.” PETER BLACK, WIDEBAY, QLD PETER BLACK, WIDEBAY, QLD
“Starting a Computer Troubleshooters franchise is a great experience, and you are provided with everything you need: branding, tools, training, and mentoring. With an engaged list of preferred suppliers and a well-established business model, you can run your business to suit your strengths. Computer Troubleshooters is an excellent option for anyone wanting to start their own local IT business.” MARK HANCOCK, NORTH LAKES, QLD
“It provides piece of mind knowing that going into business you’re not alone. As well as the training and coaching you have a national network of knowledgeable and friendly franchisees always looking to help each other out where needed.”
LEADERSHIP
ROLLING OUT the passion
Two amazing milestones are making Roll’d a talking point in fast food.
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he idea of Roll’d came about through conversations at home between founder Bao Hoang and his wife, Angela. Bao says “We always wanted to share my Mum’s food. All Vietnamese kids think that their Mum’s food is the best. But my siblings and I knew our mum's food really was the best because other Vietnamese mum’s would ask Mum to cook for their parties!” In less than 10 years (the business was founded in 2012) Roll’d has spread its love of healthy Vietnamese food around Australia and it’s still growing. In fact, the chain in March 2021 hit two significant goals with the opening up of its latest retail venture. The new Moonee Ponds store is both the 100th outlet for the healthy eating chain and its first ‘store within a store’ at a Coles supermarket. Characterised by its historic homes, lush parklands and significant development, Moonee Ponds continues to be a thriving family-oriented suburb in Melbourne’s inner north-west. And with the nearest Roll’d outlet 10km away, the new concession is viewed as an important step to expanding the consumer base. The exciting new development with the supermarket chain marks the start of a new partnership with Coles and gives shoppers in Moonee Ponds the full Roll’d menu of packaged grab and-go meals, Roll’d Iced Peach and Iced Lemon Teas and
Vietnamese Iced Coffee to choose from. Founder and CEO Bao Hoang says so much has changed since the business started out. “Ten years ago sushi was one of the only perceived fast and healthy meal options in the CBD environment. We started in the Melbourne CBD. We made a lot of mistakes and were always adapting. Right now, we are in the best shape we have ever been. “We will most likely open in New Zealand next year and we have got an aggressive international agenda coming up. “Local and international growth is very much a cornerstone of the Roll’d brand in 2021. We believe that we will get close to 150 stores, close to mid-2022.” It’s already been an exciting 18 months for the Vietnamese eatery. Early in 2020, Roll’d embarked on new delivery methods and innovations such as the Roll’d Runner and the Roll’d Meal Box. “We’ve picked up a lot of business through the lunch market as we offer a quick, light and healthy meal. Currently we are expanding our offering to include rice, which is increasing our dinner offering and reaching more Australians,” Hoang explained. “Vietnamese food is an inherently healthy cuisine. I think that fresh, healthy and convenient food options are the way of the future. In light of this, we created simple Roll’d menu inclusions that are having a dramatic impact on our business.” *Read more about healthy eating on page 48.
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ROLL’D SNAPSHOT • It costs between $400,000 and $500,000 to buy a Roll’d franchise. • The business was established in 2012. • There are 100+ outlets across Australia. • Training is an eight week program, then ongoing. • The food is inspired by co-founders Bao and Tin’s hard-working mothers Mama Hoang and Mama Ly.
WHO ARE THE FOUNDERS? BAO HOANG. As a former franchisee in a non-food business, Bao understands the franchisee perspective. TIN LY grew up working in his family’s Vietnamese bakery and brought their speciality Bánh Mì to Roll’d. RAY ESQUIERES is a former banking executive with JP Morgan and ANZ.
We believe that we will get close to 150 stores, close to mid-2022
COLES CONCEPT The brand new concept concession store is located in a supermarket designed to set a new standard in sustainability. The supermarket chain has a commitment for the entire Coles Group to be powered by 100 per cent renewable electricity by the end of the financial year of 2025, and to have net zero greenhouse gas emissions by 2050.
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LEADERSHIP
ON A
Roll
Multi-unit franchisee Simon Keegel was working in Roll’d when he saw the potential to own a franchise... and now he’s stacking up the stores. WHEN DID YOU BUY YOUR FRANCHISE? I bought three Roll’d stores in 2018. At that time, it was with a silent partner who I have since bought out. I now have five Roll’d stores in the ACT. WHY DID YOU CHOOSE ROLL’D? I’m close friends with one of the founders, Tin Ly. We were at school together in South East Melbourne and then were also housemates for about three years from 2012, which was the year Roll’d was established. So, I saw the progress and reputation of the business in its early stages. I was at the opening day for the first Roll’d store in Melbourne and was in awe of the massive lines of people that were keen to get some fresh Vietnamese. Growing up, I used to go to Springvale in South East Melbourne and get Banh Mi from local Vietnamese bakeries so had a great appreciation of Vietnamese food from early on. WHAT WAS YOUR WORKING BACKGROUND? I worked at Pizza Hut from when I was 16 and a couple of other takeaway pizza stores following that up until I was about 23, so I did have hospitality experience.
I studied science at uni but never really pursued a career in that field. I worked as a state manager for a company that audited the Coles Liquor Group. I also have a Bachelor of Accounting which I chose to study to get a better understanding of business. WHAT MADE YOU WANT TO CHANGE YOUR CAREER PATH? I was a Roll’d employee for three and a half years before making the move to become a franchisee. In 2015, I was seconded to Canberra to assist in the management of the then two stores that were in the ACT. The turning point for me was being able to grow the sales to a level where I saw good potential to be successful as a franchisee. WHAT TYPE OF TRAINING AND ONGOING SUPPORT IS PROVIDED? I was fortunate as an employee to be able to learn the in-store management required to successfully run a store. As a franchisee, I have always been given amazing support from the head office team whenever I need it. As a multi-site owner, I received some great advice on how to move to more of an area management role.
HAS YOUR WORK/LIFE BALANCE IMPROVED SINCE BUYING THE FRANCHISE? It has considerably improved since becoming a franchisee! I used to dedicate a lot of time to Roll’d as an employee and now I think I have learned how to better manage my time to maintain a much better balance as a franchisee. I got married in November 2018 and had my first daughter earlier this year so I try to spend as much time with my family as I can while trying to be smart with the time I spend managing the businesses. I am lucky to be able to rely on the dedication and amazing efforts of my store managers and other team members. IS THERE ONE ASPECT OF THE FRANCHISE SYSTEM THAT STANDS OUT? The family culture. Even with 100 stores, it feels like every person involved including the founders, head office team, franchisees and their teams all care about each other like a big family. n
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LEADERSHIP
Making a splash How mum Holly discovered the ultimate career sea change with a Jump! Swim School franchise
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or 38-year-old Holly Singh, the prospect of going back to a job in hospitality, after the birth of her son Jai had lost its spark. The long, and often unpredictable hours, coupled with the challenges and responsibilities of her new young family, made the lure of a fresh new career all-the-more enticing. During Holly’s hospitality career, she worked in hotel accommodation management, which often saw her on call 24/7. “Even though I adored my role, where I
had the opportunity to speak with lots of people and be in an industry I loved, I knew that it would be very hard to keep up with the job, as well as raise a young family.” Once Jai was born in 2017, Holly switched to working in finance in the hospitality industry but missed the social interaction of her previous roles. “You do often get stuck in a rut where it would have been easier to return to a job that I was good at and knew well, but it certainly did not tick all the boxes for me when it came to finding a career I could sink my teeth into and using my skillsets in a fresh environment,” she says.
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HOLLY’S TOP FIVE TIPS FOR MUMS IN BUSINESS 1. INVEST IN YOUR STAFF! Schedule time to train, develop and communicate with your staff. If you have a team of staff who are skilled, happy and fulfilled in their roles it is a much easier task to steer the ship towards a common goal... even when you are not there. 2. BE ORGANISED. I spend five minutes each day writing a to-do list which keeps me on top of daily tasks and gives me a sense of satisfaction once I have achieved each thing on the list. This keeps me productive. I also make sure I use my phone's calendar and reminders for planning. 3. PRIORITISE FAMILY TIME. We have scheduled "Mummy, Jai days" and "Family days" which we all look forward to each week.
Holly started to explore opportunities in areas where her passions lay. Children and water safety had played a part in Holly’s life as a nanny in the UK and when she was teaching summer camp in the US. “After my son was born, I decided that if I was to go back into the workforce I wanted it to be something I was passionate about and would give me a good work life balance. I had been taking my son swimming regularly and it renewed my interest in swim teaching. “At the time, my husband owned a cafe next door to a Jump! franchise in Sydney. I popped my head in one day and thought it was such a great concept.
“It was small, intimate and purpose built for learn to swim. This prompted me to make inquiries about the business and as they say; the rest is history!” While no stranger to long working hours, Holly has found there is more enthusiasm for her work now than in the daily grind of hospitality. “Don’t get me wrong, the team work hard but it is different. There is a feeling of joy and satisfaction that I have every time I walk through the doors. As a parent myself, I think it is connecting with other parents where I now have this newfound authenticity in my career which I love. “And my workday plays out so differently, especially with the franchisor
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4. DON'T BE TOO HARD ON YOURSELF. Being a mum and running your own business is a juggling act. And there are times when things don't go to plan. Don't dwell on mistakes, take a moment to assess the situation, ask yourself what can be done to solve the issue or what could have been done better. Apply and move on. 5. DON'T OVERCOMMIT. Only say yes to things you know you can manage. If you are unsure if an activity, event or task will fit in with your workload / home-life balance then it's best not to commit. It will only cause stress and guilt when you can't follow through.
LEADERSHIP
supporting me all the way and having such a great team. All this is a formula which allows me to spend quality time with my partner and son, with plenty of energy to give to everyone around me, including myself!” For Holly, the intimate nature of the franchise set up is particularly appealing, and it’s backed up by a good community spirit, she says. And she love the convenience of a family-friendly workplace. “My son loves visiting the pool and playing with the other kids in the play area. We have built a great team at Jump! Fyshwick and we spend a lot of time on training and development so when I’m not at the facility, I know our team of staff and teachers have the same mission as I do and will carry out their duties to provide the best experience they can for our members.” The family moved from Sydney to Canberra and while Holly’s husband continues to work in hospitality, the structure of the day allows for more family time. With a financially sound business that continues to grow, and a better worklife balance, it’s all going swimmingly for Holly. “Before having my son, my life was more of a catch up rather than it being controlled and manageable. Now owning a franchise, you would think life would be more chaotic, but it isn’t. “That is the beauty of owning a franchise and being a mum. You take over the reins of a well-oiled machine and have the support of Jump! headquarters. It is the best of both worlds and a perfect dynamic for a mumpreneur!”
• Mums with school age children make up 40 per cent of the current franchise owners for JUMP! Swim Schools • 78 per cent are owned by a female or a husband/wife duo • The swim school offers swimming lessons to babies and children in small class sizes at 53 boutique facilities across Australia and New Zealand.
MUM’S THE WORD
Jump! Swim Schools is raring to go in 2021 as it relaunches its franchise recruitment program and gets set to welcome new franchisees into the chain – and mums are crucial to the mix. CEO Mark Collins says “We’re relaunching our franchising program to begin actively securing new franchisees across Australia. The time is right for innovation and further growth and we’re really excited about the coming months. “As we look to grow our network by a further 10 sites before the end of 2021, mums are definitely a buyer group that are on our radar,” he points out. “The format of JUMP! Swim Schools really appeals to mothers and families with kids, because the business hours can be managed around family commitments, leaving that important space for family time in the mornings and evenings. There’s not a lot of franchise options that allow that level of flexibility. “We’re expecting interest from this market to continue due to the impacts of Covid as well. Many families are considering their options moving forward and seeking out alternatives that give that level of flexibility as they re-evaluate their work-life balance and look to move away from careers that may be demanding more of their time or requiring them to start commuting to the city again. “Feedback from our owners also shows that our franchisees get a lot of satisfaction out of the type of work that JUMP! Swim Schools involves – helping children get life-saving swim skills and working with kids and families on a daily basis is very rewarding.” n
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LEADERSHIP
Brush Strokes
Where art and wine combine to fuel customer creativity and franchisee success.
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he paint and sip industry has really taken off within the last three years, creating a totally new avenue for social interaction. We first saw the industry exploding in the US market, and knew it would be perfect for Australia,” says Kathy Chalker, founder and franchisor of Paint and Sip Studios. Kathy launched her business as a mobile operation in 2018 before opening her first studio in Newcastle, New South Wales, that same year. Since then, a second studio has opened in Penrith, with franchise outlets at Rockhampton and Liverpool launching soon after. “Expanding Paint and Sip Studios is something I am extremely passionate about and franchising is such a natural pathway to grow a business. It also doesn’t require
anyone to be naturally artistic, just enthusiastic about providing a five-star experience,” Kathy says. Paint and Sip franchisees are offered a fixed price turn-key investment, so costs are known upfront before they proceed. The emphasis is on providing an experience that does not require a lot of labour or time to prepare, the online booking and payment service means the franchisee runs a cashless business and can focus on creating fun, engaging, and memorable customer experiences. “As a franchise business, our philosophy is about making our customers feel good and providing a memorable art event experience through simple, special moments regardless of the occasion.” The feel-good philosophy continues into the relationship between franchisor and franchisee, she says and transparent, honest communications with franchisees is crucial. Advice from Kathy for a future
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franchisee would be to “make sure you talk to existing franchisees in the group. It surprises me how many potential franchisees do not do this. A franchise agreement is a long-term relationship and you want to find out as much about your partner as you possibly can, before taking that giant step. “Franchising provides the opportunity to take on the challenge of running a business while being supported. In a climate where there is still so much unpredictability in the workplace, and despite the challenges that Covid-19 has unearthed, opportunities arise. We want to let people know that there are options available to them if they find themselves unemployed and are looking for their next challenge,” says Kathy. “I have personally undertaken the journey of choosing to take the big step and go into business for myself, so I understand the decisions our franchisees are making,” she adds. “Running a successful business can appear daunting; you have to
know who your customer is, give them the best quality service at the right price to retain their loyalty, while recruiting, training and motivating your own team, keeping on top of expenses, complying with all the regulatory requirements, keeping up to date on government legislation and new developments in your industry segment, all the while watching your competitors and then finding time for your personal life! “While that can be very challenging, personally I find that if you keep it simple and just ask yourself: ‘If I was a customer or a team member, is that the way I would expect to be treated?’ then everything else is just part of the business and the rewards can be fantastic, not just financially but also emotionally and physically.” How does she define success at Paint and Sip Studios? “We see success when a customer walks away from our studio feeling better than when they arrived. We made their special moment,” explains Kathy. n
FRANCHISEE SIVA KAMMA New to franchising, and to the art event business, Siva Kamma took on the franchise for the Liverpool area in Sydney. “During a time of uncertainty, we found ourselves in a position where we needed a source of stable income and an opportunity to manage our own careers. Paint and Sip studios equipped us with the tools to create an experience for customers that was second to none while also giving us the chance to grow our business,” says Siva. “Owning a franchise has been a great way to get started in business. As well as the chance to earn money, franchising offers pride of ownership, influence within the community and an opportunity to take charge of one’s career. “We offer uniquely tailored experiences for any occasion including hen’s parties, baby showers, and corporate team building events. We also have a selection of themed art events, which are hands-on fun for all ages and abilities, and we regularly have guest artists to further inspire our budding artists. Kids parties are especially fun – and very messy!”
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LEADERSHIP
5
FRANCHISE SUPERSTARS 1. MARK MCGINLEY CEO, COURIERSPLEASE
Quick and decisive action meant Ben was able to head off the worst impact of the pandemic and come through the year with all franchise sites trading well. His actions included innovations to provide revenue opportunities for his franchisees, such as upgrading systems and focusing on digital solutions. He also set up business foundations for future growth, signing off on an LYTB Academy for personal trainers. Ben says it was crucial to adapt very fast, increase communication and support all stakeholders on multiple levels.
These standout performances are then judged by a cross-section of franchisor, franchisee and industry suppliers to find the Top 30 franchise executives So here’s a sneak peek of the top five for 2020.
2. BEN FLINTOFF GM, BASKIN-ROBBINS
Mark excelled in 2020, matching his swift action to support franchisees with a clear focus on sustainability. He was instrumental in providing tools to help franchisees’ productivity while initiating measures to secure their health and safety and establishing a financial support structure for franchisees forced to self-isolate. Last year Mark steered the fuel-dependent courier business towards lower carbon operations, and extended the network’s environmental reach with sustainability partnerships. He has overseen considerable growth in the business over 2020, with both franchisee and team member numbers increasing. The judges commended Mark for making decisions with great foresight, using technology to bolster business, showing unwavering commitment to the health and safety of his franchisees and making time to champion sustainability.
3. BEN FLETCHER, FOUNDER AND CEO, LISTEN TO YOUR BODY
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ach year Inside Franchise Business encourages franchise executives to submit entries showcasing how they have supported franchisees, delivered best practice and been brilliant ambassadors for the franchise sector.
Ben began the pandemic in a positive mode, providing strategies and tools to help franchisees, creating solutions to reduce costs and introducing promotional campaigns to boost sales with a focus on delivery and digital. The year has also been about wider community support, with Ben volunteering in bushfire-ravaged areas, and developing other community-based initiatives. He has promoted the franchise sector through the media, invested in his own personal development, and championed solution-based thinking as a way to tackle challenges. “The trust placed in us by our franchise partners, by our stakeholders and by our guests remains a continuous source of motivation,” he says.
4. AARON SMITH FOUNDER, CHIEF CULTURAL OFFICER, KX PILATES During 2020 Aaron displayed his passion for helping people thrive, including taking action to improve the partnerships and culture between franchisor and franchisees. “New leadership in 2021 comes with empathy and compassion, with more focus on growing our people than growing the business,” he says. He impressed the judges with his attention to research and development, and smart use of technology to the betterment of the business.
5. ZOE FARRELL, HEAD OF PRODUCT DEVELOPMENT, SAN CHURRO A franchise professional whose strategic product leadership really stood out in a year when franchisees needed every tool available to boost business. As a result of Zoe’s initiatives, franchisee sales increased, and the franchisor’s service effectiveness improved. Throughout the year she displayed a positive growth mindset, not only in the strategies she employed but by maintaining her personal and professional development and her morale-boosting support for team members.
The full Top 30 Franchise Executives 2020, sponsored by BlueRock, is available for download at top30.franchisebusiness.com.au MAY/JULY 2021 | 38 | WWW.FRANCHISEBUSINESS.COM.AU
LEADERSHIP
HERO IMAGE The roar of an engine, the kick of a ball...sports-loving Aussies are thrilled by competitive games so for franchise brands to tie-up with a national or local club makes perfect sense.
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ranchise chains love to align with other successful brands and forging a partnership with a sports brand is a popular step. Whether franchisors sign up brand ambassadors from the field of sport - think Battery World’s link with rugby’s Honey Badger Nick Cummins - or sponsor a club or a competition, they are often eager to be associated with sporting champions. Managing director at The Marketing Lab, Kelli Ponting, points out the value to a business, particularly a franchise. “Sponsorships can be a great way to drive brand awareness at a large scale, and when done well can really enhance public perception. If we know local area marketing works for franchisees because it creates a connection with a local community, sponsorships can do this but on a larger scale for the entire brand.” Kelli insists it is crucial for any brand association to really align with the franchise and its target market. “While sponsorships themselves often occur without the overt push to buy like traditional marketing does, a good sponsorship provides a solid foundation for subsequent marketing to have more of an impact. “This means that the local area marketing franchisees are doing, will leverage the brand equity and positive sentiment that comes from the sponsorship. This helps with the overall effectiveness of the marketing mix,” she points out. So who is stepping out with sports names this year? These four brands have all recently aligned with, or re-signed, clubs or competitions.
ARAMEX AND CRONULLA SHARKS Footy fans will be seeing courier firm Aramex’ branding throughout the 2021-22 NRL seasons as the franchise signs up as major sponsorship partner of the Cronulla Sharks. The signature red Aramex branding will now appear front and centre of Sharks jerseys for the national NRL audience, and signage will be displayed at Jubilee Oval home games in Kogarah and across digital assets. Peter Lipinski, CEO Aramex Australia,
says he is looking forward to delivering success for Sharks fans and franchisees through the sponsorship. “With 25,000 Australian business customers and counting, Aramex is committed to supporting the local communities our franchise partners operate in, and we know Sharks fans represent one of the most incredibly passionate groups in the NRL,” he said. “This sponsorship will provide a boost for the team and their fans moving into the new season, and put our franchise network on millions of TV and phone screens across Australia for the next two years.” The courier firm is banking on the new deal raising the profile of the brand as it starts its hunt for another 300 individuals to join the network of 900 independently owned and operated courier franchises. Peter Lipinski explains there has been a boom in demand due to the growth of ecommerce. Last year Aramex delivered more than 37 million parcels and is seeing strong growth in the first weeks of 2021. “Covid has given us the opportunity and the need for an additional 300 franchise partners in 2021 to capitalise on surging demand in Australian ecommerce as we all adapt to this new normal. This partnership will support that goal and help grow our Aramex Australia franchise family,” he says.
Originally the Fastway business (started in New Zealand in 1983), in 2016 Fastway Australia became part of the Aramex group, which operates logistics and transportation solutions in over 354 locations across 60 countries.
MCDONALDS AND SOCCER LEAGUES McDonald’s Australia is partnering with soccer’s newly formed Australian Professional Leagues (APL) in an initiative designed to boost the connection between grassroots participants and professional football. In the deal McDonald’s takes on the mantle of Official Quick Service Restaurant Partner and McCafé the Coffee Partner to the A-League, Westfield W-League and the E-League. The relationship will also extend to nine APL clubs, including three new relationships with Brisbane Roar FC, Macarthur FC and Western United FC. In December 2020 four football leagues (A-League, W-League, Y-League and E-League) moved from the governing body Football Australia to the new organisation which will operate the competitions. The APL has exclusive rights to use intellectual property rights associated with the E-league (online gaming) brand.
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As part of the newly-inked agreement McDonald’s is introducing the ‘Macca’s Half-Time Heroes’ series of small-sided games played at half-time. The new initiative aims to encourage families to experience football firsthand, supported by ticket giveaways and competitions. Amanda Nakad, marketing manager, McDonald’s Australia says “We’re proud to play an active role in communities across Australia, and are thrilled to be a foundation partner of the Australian Professional Leagues. “Working together, we hope to help further connect fans and players to the sport they love, ultimately getting more people playing, watching and supporting the great game of football. “Football has a terrific atmosphere – everyone is made feel welcome at their local A- and W-League or junior club and feels immediately at home. We love that aspect of sociability and familiarity, that’s so aligned to what we strive to provide in our restaurants.” Ant Hearne, chief commercial officer of
APL, says the partnership with McDonald’s is an exciting development for football at all levels. “Our shared passion for the game is at the heart of our partnership with McDonald’s, and they have recognised the unique moment in time for the growth of our game. “We’ve got two million people playing football in Australia and we want to give them the best possible access to the highest level of football in this country through APL.”
RED ROOSTER AND SYDNEY ROOSTERS A brilliant boost to the brand for Red Rooster franchisees as the well-loved chicken chain adds another three years to its Premier Partnership with NRL club the Sydney Roosters. The newly-extended partnership means footy fans will see the Red Rooster logo appear regularly at the league club until the end of 2023. Red Rooster’s logo will be displayed on the back left panel of the NRL playing
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shorts, and across LED and on-field bolster signage at all Roosters home games. Red Rooster CEO Clint Ault says “It’s wonderful that this partnership between two iconic Roosters will continue for a further three years, and we look forward to working with the team at the Roosters on a number of unique fan engagement initiatives for members and fans.” The brand has also just been unveiled as the club’s Official Membership Partner. That means 2021 Sydney Roosters Membership Packs will include Red Rooster vouchers and special discounts for members. The deal should help franchisees boost sales, particularly as the restaurant chain plans to launch a brand new menu that brings fried chicken to the table. Red Rooster is one of three iconic chicken brands sitting under the wing of Craveable Brands; Oporto and Chicken Treat are also in the group.
BATTERY WORLD AND AUSSIE RACING CARS Battery World signed up as naming rights partner for Aussie Racing Cars’ Super Series. Johnny Kennedy, Battery World GM, says the partnership strengthens the well-known chain’s position as Australia’s leading battery retailer. As part of the deal Battery World gains prominent branding on all of the vehicles in the Aussie Racing Cars Super Series. Battery World’s associated company, Yuasa, will become the official battery of the Super Series and all race cars will be fitted with a Yuasa high performance battery. Johnny says “With 2021 being an extremely successful year for Battery World, our 110 stores are extremely excited to see what this partnership will deliver to the business”. n
LEADERSHIP
THE HEIGHT OF AMBITION A family business has been delivering rooftop service to Aussie homeowners for nearly three decades.
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ou know those ideas that seem so obvious once someone else has thought of it? Well, 26 years ago, cleaning gutters was neither safe nor efficient. Then Warren Ballantyne had a moment of inspiration. “We had a need in our plumbing business to clean gutters, and it became more and more a part of what we did. So we decided the solution was vacuuming to make it more efficient, and safer. We searched and we found vacuuming equipment, and literally started the business a month after we thought about it,” Warren explains. The proprietary Gutter-Vac system, which now operates from a closed trailer, van or truck, was a revelation and today it remains one of the franchise’s unique selling points: it’s convenient and safe, allowing even height-averse operators to clean roofs. But back when Warren and his wife Anne began the business in 1995 paying to have your gutters cleaned just wasn’t done. “They just got the kid next door to get up and clean it. So, when we started charging $80 to clean their gutters, people
used to laugh at me and say, ‘people will never pay that’. Well guess what – they do! And today that same size house would be $400,” Warren says. Safety has always been a priority at the Queensland-based business. Warren and his brother, Trevor began Ballantyne Safety to offer working from heights equipment and an RTO nationally accredited training course, which would later be rolled out to Gutter-Vac’s franchisees. Gutter-Vac began franchising in 2001, and as it grew, Warren and Anne relocated to Brisbane, although all the trailers and tools are still made locally in Bundaberg. The business now boasts a network of 51 franchisees operating across 90 territories around Australia, and still growing. Nationally the brand has seen year-on-year growth, including a 30 per cent rise from 2019 to 2020 and a respectable 17 per cent lift during the 2020 pandemic. Not only has the business survived and thrived, earning itself a 5-star franchise rating, so too have the founders, who are still enmeshed in the business. Married for 46 years and working together for about 36 of those years,
Anne and Warren have perfected a solid relationship and base their strong working partnership on clear roles: Anne as GutterVac’s management consultant, and Warren heading up the business as managing director. Together, they’ve been proud to grow a network of franchisees who share a love of attaining best practice in their businesses. “Our franchisees love to go to conference where they can sit down and share stories about gutter cleaning and how they can improve,” Anne reveals. “Or if one of our franchisees gets sick, the other surrounding franchisees will put their hand up and do the work for them so they can survive – that’s the best thing about our franchisees, they want to help each other.” So what are Warren and Anne most proud of in their 21 years of business? It’s about helping people, says Anne. “We’ve been able to give so many people a lifestyle, to help them out, take just an ordinary man from the street and turn him into a businessman with a profitable business, to be able to buy a house and go on overseas holidays.” n
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SPOTLIGHT ON MEXICAN
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TEX-MEX TRENDS IN THE US The latest report (August 2020) from IBISWorld, Mexican Restaurants, reveals the hugely popular US dining option has embraced technology, particularly with delivery and takeaway options. Some chains have reconfigured their restaurant layout to add more kitchen space dedicated to off-premises dining demands. The US Mexican wave has also brought menu innovation focused often on expanding vegetarian meals.
WHO OWNS TACO BELL IN AUSTRALIA? Good question. The parent company is Yum! Brands, based in the US. When the business brought the brand to Australia in 2017 it was the third attempt to get the high-profile global chain established here. To help achieve this, Yum! signed a deal in 2018 with Collins Foods, a big franchisee business operating a number of fast-food brands, to open 50 outlets across Australia. Collins Foods started with seven restaurants in its home state of Queensland. But Restaurant Brands, another multibrand operator, based in New Zealand, is also spreading the Tex-Mex love with Taco Bell expansion across NSW.
BURRITO BAR’S MEXICAN FUSION Big, bright and burgeoning, the Mexican fast food scene in Australia is franchise-dominant, with a line-up of big brand names and fresh concepts all operating through a franchised set-up.
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he marketplace is bustling: think Guzman Y Gomez, Mad Mex Fresh Mexican Grill, Salsas and Zambrero. Add to this list the longstanding chain of Montezuma’s restaurants, the innovative Burrito Bar, the Funky Mexican Cantina concept, and Taco Bill, the first Australian business to capitalise on Tex-Mex cuisine and not to be confused with US favourite Taco Bell, owned by Yum! Brands. And while Taco Bell is exploring growth across Australia, Guzman Y Gomez has staked out a path to US expansion, backed by a mega capital injection from the Magellan Financial Group. The first store opened early 2020 outside Chicago. In August 2020 GYG passed a mega milestone, turning over $1 billion since opening 14 years ago.
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The Burrito Bar fuses Mexican street food and art, offering both take-aways and a dine-in experience accompanied by a cocktail, beer or tequila. It’s expanding beyond its Mexican roots however, bringing in new revenue streams for franchisees. Last year, it piloted a Baskin-Robbins ice-cream and dessert parlour in a Burrito Bar restaurant and the concept took off. Its first drive-thru site will also be the first to showcase a restaurant partnership with sister brand Smokin Ribs & Burgers, previously just an online delivery service. The unveiling of the first Smokin Ribs & Burgers physical restaurant means franchise partners can enjoy four distinct revenue streams: the Burrito Bar, dessert parlour, Smokin Ribs & Burgers, and drive-thru. “This not only helps boost profits, it also creates a more resilient business,” says GM Shaun Butcher.
SPOTLIGHT ON MEXICAN
Q&A WITH MAD MEX Inside Franchise Business posed founder Clovis Young some questions about the business. Q. WHAT INNOVATIONS ARE HELPING FRANCHISEES’ BUSINESS? A: We’ve completed a major aesthetic design refresh to our restaurants to align them with our “fresh fuel for life” brand positioning. We want to support and inspire our customers to live a big life and to eat healthy and tasty Mexican food as part of these big life ambitions. Our restaurants provide a beachy, relaxed environment that suits the “Mexicana” theme, and is decluttered, clean and bright. With delivery growing, we’ve also partnered with delivery providers to extend the reach of our stores and deliver the Mad Mex brand experience into people’s homes. Our brand-new app reflects the FFFL design and makes it faster and easier for customers to place orders and get cool loyalty member benefits. Our digital marketing has evolved to be more metric and ROI oriented and when combined with grassroots local area marketing is helping franchisees reach their community beyond the bounds of their restaurant, resulting in greater engagement and more customers.
Q. WHAT ARE THE BIG CHALLENGES FOR THIS YEAR? A. Our biggest challenge was pivoting to a fast and nimble mentality, and the team totally embraced the urgency that Covid-19 forced on all of us. In the first three months of the pandemic, we did 12 months’ worth of work, all while working remotely. It was inspiring to see the team rise to the challenge. The recovery out of Covid will continue to disrupt our businesses, with many of our locations in the CBD and airports, but we are already seeing a recovery in these markets. We expect the CBDs will continue to be a challenge in 2021 and that the five-day office work week won’t be back this year, so there will be fewer people in the city. International tourism is non-existent, which adds to the challenge, but we still believe the CBD will be an important and relevant market in the future, it’s just going to take some time. The good news is that restaurants in neighbourhoods are booming and sales here are up dramatically. It really is a “tale of two cities”. The Covid-19 dislocation has created some great opportunities for us to grow, and we’re actively looking for A-grade locations in neighbourhood shopping centres where people are now spending more time.
Q. WHAT EXPECTATIONS DO YOU HAVE FOR THE MEXICAN FAST-FOOD MARKET IN AUSTRALIA FOR 2021–22? A. Australians have embraced Mexican like no other nation in the world (outside of the US) and we expect that trend to continue. The quick service restaurant (QSR) market is primarily serviced with burgers, chicken and pizza, which all have their appeal, but miss the global trend towards real food with minimal additives and preservatives, as well as Australian consumers’ desire to eat food that is both tasty and healthy. High-quality Mexican food is made using fresh ingredients and traditional home cooking techniques, and is incredibly tasty and wholesome. At Mad Mex you can get a burrito with brown rice, vegetarian or vegan fillings or freshly grilled chicken and topped with fresh guacamole that’s hand smashed each morning. Q. WHAT IS YOUR EXPANSION PLAN FOR THE NEXT 18 MONTHS? A. We have some big goals and a clear vision to grow our network across the country to build on the regions where we have a solid restaurant footprint. While the specific targets are confidential at this stage, we are super excited about the opportunities out there and landlords are excited by the new look and feel of Mad
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MAD MEX MAKEOVER
Our re-brand has been top-to-bottom. We’re changing our signage and visual identity for all restaurants, with the first rollout in the Sydney Central Plaza location, and we’re now in the process of renovating a further 25 per cent of our restaurants. We’re looking to have a fresh new look and feel in the majority of stores by the end of next year, which is very exciting. We’re aiming for a laid-back, Californian beach vibe with the redesign aesthetic, which will look a lot less cluttered and eclectic. Menu boards will be upgraded to digital, and each location will have a 60-inch TV playing our “fresh food for life” sport and lifestyle entertainment, to feature the junior athletes we sponsor so that we’re also communicating our brand and food values that way. Basically, the goal is that instead of telling people about individual products, we want to show them that our food is healthy and goes hand-in-hand with an active lifestyle.
Mex’s “fresh fuel for life” positioning. We will have some exciting news to share about growth plans in the Central Coast and Newcastle soon. To bolster our growth plans, we brought in new development experts who are veterans and leaders in their respective fields. Our franchising, leasing store design and construction team will support our franchisees to get them set up for success from the first day of operation. We have also completed a full network development plan to better understand what drives success in our locations and we are applying that to future locations, helping us to better drive performance and profitability for our franchisees. Q. WHAT ARE YOU DOING TO ATTRACT FRANCHISEES TO YOUR BRAND? A. Potential franchisees know and love the brand, so our biggest shift has been to simply get our message out to prospective franchisees using more sophisticated digital marketing, SEO, social media and PR. We run a range of initiatives for new franchisees to help them get going successfully, but the biggest value now is in leveraging the Mad Mex brand and the disruption related to Covid-19, to get great lease deals with shopping centre support to ensure the cost of entry is manageable and the potential profit margins are attractive. In addition to a competitive franchise
fee and our commitment to locating them in prime real estate locations, we take each of our new franchisees through a rigorous six-week training program, and additionally provide them with significant on-theground support for the first two weeks of the restaurant opening. The team is 100 per cent focused on each franchisee’s success and while that might sound obvious, it is a real point of difference with our Mad Mex support office team. In some regions we are finding that the traditional marketing channels still work, so we have pushed ahead with PR efforts in local newspapers and local media channels. There is no one size fits all when trying to get your message out to different communities, which has encouraged us to try some traditional print media and which still works surprisingly well. We also have an active “fresh fuel for life” youth sponsorship program that is raising awareness across many favourite youth sports, bringing the next generation into the Mad Mex familia. This program aligns with our core values around healthy living and living a big life and we are aligning this with our customers to ensure our franchisees benefit from the clout of the younger demographic. Q. HOW DO YOU SUPPORT FRANCHISEES IN THEIR BUSINESS? A. Every franchisee has a dedicated
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regional operations manager (ROM) who shepherds the franchisee through the challenges of business. Their ROM provides advice, guidance, best practice and experience in best in class operations to give our franchisees every possible success to run a profitable business. From a store level, our ROMs drive performance, with transparency to our franchisees of restaurant performance and incentivising them and their teams to reach new heights. We create competitions for restaurants to challenge each other and outperform their own expectations. We like to have fun while getting awesome results. Performance targets for our stores are derived from where we see franchisees getting the most bang for their buck and encouraging sales and operational behaviours in the restaurant teams to continually raise the bar. As a franchisor, we obsess over the details as we too have skin in the game through our corporate restaurants. We continually monitor supplier agreements and market pricing for improvements in our costs of goods sold, and maintain key relationships with our landlords to make sure we are the Mexican brand of choice in their future dining precincts. Rental discussions are always ongoing with landlords as we continue to build symbiotic relationships. n
SPOTLIGHT ON HEALTHY EATING
A BETTER
BITE
An increasing awareness of nutrition and a balanced lifestyle is pushing healthy eating into the limelight.
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hat’s your definition of healthy eating? It might be quite different from the view held by your partner, your teenage son, or your neighbour. One thing is for sure, the trend towards conscious consumption is being embraced by a more knowledgeable consumer. Accredited practising dietitian Sarah Leung is the Roll’d nutrition ambassador. She says the definition of healthy eating has changed over the years. “Consumers have always wanted quick, nourishing foods for themselves and their families but their understanding of what’s healthy has changed. Gone are the days of calorie counting and strict fad diets. ‘Health’ has been redefined to be focused on whole foods, fresh ingredients and minimal processing,” she explains. And as healthy eating is a moveable
feast, Roll’d co-founder Bao Hoang believes it’s important for franchisors to be adapting swiftly. “Challenges will always be there; they just shift focus but it’s about how quickly businesses can adapt to consumer woes of increased dietary and planetary concerns,” he says. “You can no longer avoid the importance and value of good nutrition, nor ignore climate change, which is why the Roll’d offering is constantly evolving to include more vegan and vegetarian options, less or earth-friendly packaging and innovative delivery systems.” Bao says that understanding the consumer is crucial. “At Roll’d we’re obsessed with our customers and their health, and we look to data to make the right choices. In 2020 we invested into a complete customer insights study to better understand their needs.
“Everything we do as a business rests on strong market research. We value customer and consumer feedback and actively seek out gaps in where our brand can improve or deliver more. Roll’d has always maintained strict training programs and procedures to ensure the experience is kept as a consistently high standard at each franchised store.” While a Vietnamese cuisine is often considered a healthy meal option, Sarah points out choice and education around the menu items are essential. “It’s important to provide well balanced and flexible options that are made of fresh, whole food ingredients, that the consumer understands and recognises to be healthy.” For example, Roll’d’s rice menu has the option of white or brown rice, Soldiers are available in low carb options loaded with mixed salad and up to 36-45 per cent less carbohydrates, to suit a range of individual
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FEASTING ON FLAVOUR Check out some of the other brands in this food category.
ROLL’D MEAL PLAN LUNCH – Lemongrass Beef Banh Mi SNACK – BBQ Chicken Soldier DINNER – Pho Tofu Cup with a Vietnamese Salad (Goi) Prawn 54% RECOMMENDED DAILY ENERGY INTAKE, 111% RECOMMENDED PROTEIN INTAKE 60% RECOMMENDED DIETARY FIBRE INTAKE A 33% RECOMMENDED SATURATED FAT INTAKE. *Percentage daily intakes is based on an average adult diet of 8700kj.
dietary needs. “We’re hugely passionate about our heritage, so the menu won’t stray too far, however being Australian born, this is our home, and we’ve of course adapted flavours to include the amazing produce available here and attract local taste buds. “Innovation is in our blood, but again we’re guided by our customer and the data,” says Bao. At Roll’d the journey in healthy eating has been personal: the co-founders have tapped into their family heritage to deliver naturally healthy dishes. For Delicia managing director and former athlete Scott Dempster, the food business is a reflection of his own lifestyle and meal choices and started out in response to a gap he saw in the market. “It’s been about my own needs. I don’t eat until lunch and I wanted protein, fats, and low glycemic index ingredients to break my fast but I couldn’t find it. “Delicia is about that; all of our food is low GI. So many people make carbs the enemy and you’ll never find breads in our business, but a lot of our food is quite carb heavy, but low GI.”
MOTTO MOTTO Fledgling Brisbane-based chain focused on Japanese cuisine, offering a menu of traditional and modern dishes as well as Japanese-inspired meals in a fast casual dining setting.
SUSHI SUSHI The traditional custodian of healthy eating on the go since 1998, Sushi Sushi brought the sushi concept out of expensive restaurants and into the mainstream. The chain now has more than 175 outlets in Australia.
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SPOTLIGHT ON HEALTHY EATING
DRINK IT UP Fancy more of a sweet investment?
Educating consumers about their ingredients choices is an increasingly important aspect of the business, Scott reveals. “We educate our customers when they come in. We explain the carbs are all below 55 on the GI scale. “The first fuel source our body looks for is glucose which is carbohydrates broken down. If your fuel source is empty, then it’s fat, and then protein.” “We’re building an online course for stores to help them educate customers. Living healthily is a lifestyle, it’s a balanced lifestyle, not a strict regimented thing. Enjoy your life, but extend it by having a balanced lifestyle. “We’re trying to involve more people in a plant-based lifestyle. If you replace three meals a week with plants, you’re doing something for the world,” says Scott, who says there is a trend towards substituting one or two healthy days a week. “In nutrition there’s an unwritten parallel: if you say plantbased people automatically think healthy.” Delicia has a clear position in the market: plant-based and grab ‘n go, and there is no target customer. “We accommodate, we don’t discriminate. We want everyone coming in. We’re like a family,” says Scott. He points out the menu and product remain the same in outlets, but every store has its own soul. “One has a mother hen feel, it’s warm and like a hug. At another shop, the core value is fitness and high level athleticism. People fit to that. “We want them to feel comfortable, wherever they are in their fitness journey. We’re here if you need us.” The brand has moved on from its start-up base of frozen products to now offering some warm takeaway dishes. Meals can be customised with additional ingredients too. Delicia has also been taking its balanced lifestyle approach to the streets, with its first mobile truck Delicia2U on the road in Adelaide, and another already sold in Brisbane. Franchisees operating these mobiles prepare meals on-site, as in the 19 bricks-and-mortar stores, but with a restricted menu. n
BOOST JUICE BAR High profile business with more than 600 stores globally, Boost Juice was the first major player in the juice bar category and is famed for its ‘love life’ philosophy. KOOMI A Sydney concept that has spread across Asia, Koomi stores utilise natural drinking yogurt and fresh fruits, serving up froyos, bubble teas and cakes.
DIETARY TRENDS
According to a 2018 survey by Roy Morgan, 2.5 million people in Australia are either mostly or only vegetarian, a trend that’s continuing to grow. Flexitarian is a relatively new concept, reflecting the growing popularity of predominantly plant-based diets, with fish and some lean meat occasional additions. The Mintel Global New Products Database shows in the years 2014 to 2016 a massive 92 percent increase in the number of food products claiming to be vegan.
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2020
Top 10
Easy-to-use systems Our franchisor develops a fantastic and easy to adopt new owner take over which would allow anyone with passion and drive to purchase and manage your business. They also provide all the back system which includes social media, marketing and IT support that allows me to feel confident to recommend purchasing a Kwik Kopy store. Emmanuel - Kwik Kopy Bondi Junction
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SPOTLIGHT ON AUTO
REVVED UP
Four franchisees reveal the driving force behind their decision to buy a business, and what they love about the brand they picked. By Sarah Stowe
DANIEL SPITERI, FRANCHISEE AT JAX TYRES & AUTO NARELLAN HOW LONG HAVE YOU BEEN IN THE BUSINESS AND WHY DID YOU BUY THE FRANCHISE? I have worked in the automotive industry for 20 years and have been a franchisee at JAX Tyres & Auto Narellan for three and a half years now. I came into this role from quite a large organisation after taking a voluntary redundancy and wanted to get a business of my own.
Tyre, mechanical and servicing seemed the most logical path out of all the other areas of the automotive industry. I was a customer of the JAX Narellan store for 11 years myself through my work, so I knew the owner at the time. Regardless, I went away to do some competitor research for due diligence and ultimately chose the JAX Tyres & Auto model because I believed in the company’s vision for the future. WHAT HAVE BEEN THE BIGGEST CHALLENGES AND HOW HAVE YOU
OVERCOME THEM? The biggest challenge is always competition. Automotive customers are very savvy, they know what they need for their car and are open to looking elsewhere. It can be a cut-throat business because there will always be other operations that are willing to tell customers whatever is needed to keep them happy. It can be difficult when you’re competing to do the right thing by a customer – it presents financial problems, you can get out-quoted on jobs and customers may question your
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WHY THESE NEWBIE HYDRAULINK FRANCHISEES SIGNED UP TO THE “BEST UNDER PRESSURE” BRAND Former aircraft engineer PETER THOMSON (above) says the opportunity to join the network was timely. “After the impact of Covid-19 on many industries, I believed it was time to take a look into the future and decide where I wanted to go over the years ahead. I had the opportunity to slow down and take stock, to decide how I wanted to take my future into my own hands and provide a good strong future for my young family. “I am at a good stage of life to invest my energy and strong technical background into determining my own future, growing with the big expansion here. Our local area needs excellent hydraulic service backing for major industries such as housing and infrastructure development, earthmoving and roads, transport, warehousing and retail distribution, municipal and all the other industries that come with growth. “I dug deeper into the opportunity – as an aircraft engineer you take nothing for granted – and found that there was true depth of professionalism and service backing Hydraulink people. The company wants you to succeed and they will back you to do it. They have a clear idea about where they want to demonstrate leadership and I am happy to share that path to achievement.” Fly-in-fly-out resources industry operations leader and machinery troubleshooter JORDAN LESTRANGE ended 20 years in the sector to join Hydraulink. “I really wanted to get back home closer to my wife and family,” says Jordan. His last role was in drilling in Papua New Guinea. “With our boys showing an interest in the business and my wife Mel doing the books – and our commitment in the community in rugby league – we would love to build a balanced future for ourselves in the place where we belong. We love the Central Coast, and we want to be here building a strong local business as our daughter and our three boys grow up. “I have loved fixing and operating things since I was a little boy on our farm out west in NSW, where I started ploughing by myself when I was six. I was always picking up the tools to get things working right. It is bred into us out on the farm to get out and fix things – it is in our family’s blood.”
recommendations – but ultimately you have to stick to your gut instinct. The best way to overcome competition is clear communication with customers. Take them out to their vehicle, show them what you see, explain why you’re recommending particular products or services and go through the bigger picture with them.
customers come back for repeat tyre fitment, vehicle servicing or whatever it might be. Having a relationship built on trust, where they feel comfortable enough to drop off their keys and go and believe in your ability to look after them and give them peace of mind is very rewarding. It’s better than any business review.
WHAT’S BEEN THE BEST PART OF BEING A JAX TYRES & AUTO FRANCHISEE? The thing that I enjoy most is having
WHAT ARE YOUR PLANS FOR THE FUTURE? I’m very keen for where our store and JAX
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Tyres & Auto as a group are heading. We’re always looking to expand and find opportunities where we can be a one-stop shop for automotive retail and mechanical servicing. The good thing is there are no real barriers. Whether it be electrical, accessory fitting, compliancing or upskilling in different areas of vehicle maintenance, you can go as far as you want to. As long as a new venture is viable, at the end of the day there’s no real limit to where you can take your business.
SPOTLIGHT ON AUTO
JACK FULLER, PIRTEK ALBANY Why did you pick this franchise? We identified that many businesses in the region were looking for an alternative supplier for their hose and hydraulic equipment and servicing so we decided to fill the gap in the market and early feedback has been very encouraging. Pirtek is obviously a leader in the field and it made sense to explore the possibilities of establishing a franchise in Albany.
What do you hope for the future? There are so many terrific stories of Pirtek franchises being handed to the next generation and while that is some time off for our children, it would be great to think we can build our business so we have that option in a few years’ time.
WHAT’S FUELLING THE SECTOR? Construction and mining activity is projected to grow, boosting demand for industry services, suggests Daisy Feller, the author of IBISWorld’s Motor Vehicle Engine and Parts Repair and Maintenance in Australia, June 2020. Growing activity in the construction and transport sectors is expected to lead to a rise in demand for truck and commercial vehicle maintenance. New cars are likely to be more environmentallyfriendly and technologically advanced, which means complex repairs. Overall the industry forecast is for a minimal revenue rise – an annualised 1.4 per cent over the next five years. Now revenue is estimated at $11.7 billion, and in 2024–25 it is predicted to reach $12.6 billion. More than half of the industry is dedicated to motor vehicle servicing. n
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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.
Be in business for yourself, but never by yourself! 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 Lawn & Garden Care Windows & Exterior Home Care
SUPPORT
ALL equipment and training included in your purchase
FLEXIBILITY
Weekly coaching while you get established
TRAINING
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The benefit of a nationally recognised brand
Learn how to run your business, as well as how to do the job Choose the service model that suits you Work when you want!
Let us help you consider if James’ is the right move for you. Call our Sales Consultant, Lisa Schubert if you’d like to learn more.
1800 497 086
SPOTLIGHT ON BUSINESS FRANCHISES
POWERING PROFESSIONALS Why not bring your business skills to a franchise that helps fire up other local organisations?
T
he business-to-business (B2B) marketplace provides plenty of opportunities for customerservice-oriented professionals to deliver a valued solution to local small and medium sized businesses.
EXPENSE REDUCTION ANALYSTS
Management consultancy business ERA takes a specialist approach to its solution provision. Working in the field of cost optimisation, consultants not only harness their own skill set but leverage the breadth of expertise from other franchisees, combining skills to meet the needs of every client. Professionals bring relevant corporate experience in one or more of a variety of different areas. These include sales and marketing, project management, engineering, banking, finance, general management, purchasing or expertise in sectors such as facility management, logistics, packaging, telecommunications, energy and office supplies.
There’s a resilience to many B2B operations that has stood them in good stead through the rollercoaster year of 2020 and they are well-placed for the future. Here are just some of the myriad brands servicing Australia’s local businesses.
EXPRESS EMPLOYMENT PROFESSIONALS
This is a leading franchised recruitment chain with a big presence in its home base of the US, in Canada and South Africa. Recently it launched in Australia and New Zealand with the goal of linking good clients with great job seekers. The business acquired the privately-held Frontline Recruitment Group [see page 58] and is maintaining the two brands in their distinct markets. As a territory-based business Express focuses on hiring temporary staff - and that’s where growth is expected to take off.
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SPOTLIGHT ON BUSINESS FRANCHISES
FRONTLINE RECRUITMENT GROUP
INXPRESS
Established 25 years with proven systems, training and support in Australia and New Zealand, this business has an extensive database of more than 1.2 million candidates. The business model specialises in recruiting top quality staff for particular industries - including IT and digital, retail, education, hospitality, health - with franchisees drawing on their own sector experience to build a successful niche business in one of those industries.
This is a global online shipping company with about 380 franchisees utilising its fully integrated, web-based customer shipping platform across 14 countries. The business combines the freight volumes from all its customers, negotiating significant discounts with world-wide carriers, which are then passed on to customers. The explosion of online shopping enhances the potential for delivery services. It’s a low-entry business with low-level operating costs, and flexibility.
IWG
KWIK KOPY
MAILBOXES ETC
MINUTEMAN PRESS
PACK & SEND
QUEST APARTMENT HOTELS
FOCALPOINT
A renowned business coaching group founded by business expert Brian Tracy which started up in Vancouver, Canada, and has since taken its proprietary systems and programs around the world. Today the network comprises about 270 coaches helping others to achieve success. And the business is looking for more passionate individuals with business or corporate experience to join the established Australian network.
A flexible workspace provider established for about 30 years with offices around the world provides a choice of rental options for businesses of all sizes. Coworking facilities can be booked by the hour or in long term lease agreements. Locations are typically set in urban areas and transport hubs; a number of regional sites have been identified for development in Australia and New Zealand. IWG operates brands including Spaces and Regus.
For more than 45 years Minuteman Press has developed and refined its customer service driven business model. It offers clients printing and marketing services, and provides franchisees with ongoing local support, proprietary software, marketing programs, and research and development. There’s no experience required to own and operate a successful Minuteman Press franchise which has multiple revenue streams available for franchisees.
SNAP PRINT & DESIGN
Not just a printing facility, Kwik Kopy provides business services on a Monday to Friday basis. It’s a tried and tested system operating as a franchise since 1982, with centres fully equipped to create high quality graphic design and digital printing on-site. Franchisees deliver business products and services including business cards, brochures, training materials, marketing plans, websites, and direct marketing campaigns.
A business with a ‘no limits’ culture, Pack & Send has been providing freight, logistics and parcel services from convenient retail stores for more than 27 years. Franchisees typically have skills in sales, business development, account management or customer service and benefit from a comprehensive suite of technical and retail solutions. Today there are more than 135 retail outlets and franchisees can access multiple revenue streams.
It’s multi-award winning, and it’s an Australian franchise success. And while it has been around since 1899, Snap Print & Design continues to evolve the business model combining the best of traditional print with online marketing solutions. In fact the business recently signed a deal with digital design platform Canva which delivers an extra benefit to franchisees and clients. Snap has expanded with master franchises in to Ireland and New Zealand. Franchise partners ideally are service oriented, entrepreneurial and motivated. n
Think MBE, think multiple revenue streams – packing and freight services, printing, mailing postal address and virtual office services are all in high demand. More than 2500 service centres are in the global MBE network, with more than 38 in Australia.
This Aussie brand has more than 170 apartment hotels across Australia, New Zealand, Fiji and the UK, providing accommodation for both business and some leisure guests. For more than a decade the average opening rate has been seven new properties a year. Its growth strategy is backed by a strong performance over 2020, despite a challenging year in the accommodation and tourism sector. Quest has provided accommodation for essential workers across healthcare, mining, infrastructure and government. Rather than hospitality experience, franchisees are expected to have a track record of running a business or a corporate team.
MAY/JULY 2021 | 58 | WWW.FRANCHISEBUSINESS.COM.AU
Partnering up to kick-start their business dreams! InXpress Narangba Building a future together
A respected partner to global carriers
Jason Hand, Wendy Hand and David Begg, from InXpress
Founded in 1999, InXpress has a long history in managing
Narangba, leveraged their experience in transport and sales
successful businesses around the world. With 400+ franchises
into a successful career as an InXpress franchisee. Together,
globallly, many of which started out as business partnerships,
they utilised the skills of those around them to build a
the multi award-winning business continues to grow. InXpress
sustainable and successful business.
has already established strong relationships with trusted courier
Jason’s background is as a National Sales Manager and shareholder at a large transport business. Prior to that, he had stints with UPS and other transport providers in sales development and management roles. Wendy has extensive
partners, providing access to highly competitive rates. This leaves you free to concentrate on building sales, working towards your goals and creating the lifestyle you want.
experience in management, human resources and recruitment,
The InXpress Franchising Opportunity
having worked with Vodafone as a Team Leader in the past.
Build your own successful and profitable start-up business with
David brings an array of sales and management experience, having previously managed a hospitality business in Canada and worked as a Sales Manager for a transport business. Together, the team at InXpress Narangba have formidable experience in transport, sales and customer service.However, they can’t do everything alone. That’s where the major benefits
the security of the world’s largest franchisor of global courier services. No experience is necessary; all you need is to be salesoriented and have an aptitude for business. We’ll provide full training, with ongoing coaching and support.
Recession-resistant, essential services industry
of the InXpress franchise structure come into play. Rather
Low entry and ongoing costs
than needing to hire a separate bookkeeper, InXpress provides
Proven model for 21 years, constantly evolving
franchisees with support with their invoicing and accounts,
Comprehensive training and ongoing coaching
which for Jason, Wendy and David, is the perfect complement to their existing skill set.
No inventory, warehousing, vans or trucks
The team have had an incredibly successful run over their ten
No employee base initially, opportunity to grow
years in business. In 2019, they won the Franchise Council
Potential to earn unlimited passive income
of Australia QLD and NT “Single Unit” (two or more staff)
Ability to work from anywhere!
Franchisee of the Year Award. They were a Top 4 Finalist in the National Awards and have been awarded multiple InXpress awards, including Highest Margin and Franchise of the Year. Now more than a decade into their franchise journey, it’s the work/life balance that is most appealing. Having spent so much working on their business, Jason, Wendy and David now have an impressive book of clients and a strong rate of continued growth.
To find out how you can get started with InXpress, contact us on 1300 097 857 or email sales.au@inxpress.com
inxpress.com.au
FRANCHISE BASICS
CONVINCE ME
ABOUT MY TERRITORY
What is your franchisor doing to ensure your proposed territory is a sound proposition? PETER BUCKINGHAM Spectrum Analysis
A
potential client rang me the other day and said he was looking at going into a franchise relating to the health and fitness industry. He said the franchisor had given him a territory, and could we do some work to decide if it made business sense. Well, while I feel I am reasonably astute in these areas, my first questions were ‘what did your franchisor tell you in the disclosure document’, and ‘what are the basic assumptions about the market and specifically the brand and business you are becoming part of?’ The answer was very little! This seems to me to be a common problem, especially with small franchise systems, where the potential franchisee sits between a franchisor telling them enough to raise interest, and trying to avoid saying anything of substance in fear of later legal recriminations if there is a problem.
BASIC ASSUMPTIONS My view is if some logical work and assumptions have been formulated by the franchisor, then there is a reasonable
case to give a territory with a realistic explanation, not just ‘This should work well, but don’t ask me how we came to that conclusion’. DOING THE RESEARCH AND ARITHMETIC As a potential franchisee, you are predominantly interested in your own market and probably not other capital cities where the franchisor may operate. For this example let us consider the health and fitness business. Maybe we are joining a fitness group of 24/7 gyms, in direct competition to the likes of Anytime Fitness, Jetts or Plus Fitness. The first question is always – how big is the market? Let us imagine we are going into business in an area of Melbourne – so we can visualise. If we undertake some research we can find information about the size of the fitness industry. For instance, IBISWorld reports reveal helpful statistics such as market size, the number of businesses, and employment figures. Gyms and Fitness Centres in Australia industry outlook (2020-2025), IBISWorld • Market size: $2bn • Number of businesses: 6,601 • Industry employment: 24,342
The size of the market may even be broken down to state level, and ultimately to specific areas. The franchisor should have a business plan that addresses issues like total market size and forecast market share, and a good understanding of where the opportunities lie for the business. In our hypothetical case, the franchisor and its advisors have decided to target five per cent of the market, or a Melbourne and Geelong market of $25 million annually. UNDERSTANDING THE MARKET While you may dispute the detail, at least we are gathering an understanding of the big picture, so now we need to understand: 1. Are the franchisor’s assumptions realistic? 2. How many territories should there be and what should a territory include?
THE FRANCHISOR’S ASSUMPTIONS In your due diligence – fancy wording for doing your own investigations to decide whether you proceed or not – you have every right to ask the franchisor to convince you that what they are putting before you is reasonable.
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In my view a franchisor should consider the question of territory numbers in one of three ways: 1. COOKIE CUTTER APPROACH Have some successful territories that can be measured and replicated, and therefore understand that each territory has been built to meet a requirement; when a franchisor can say that certain successful franchisees have been able to successfully operate the system based in the following territory. This may be based on population, number of households or number of businesses in a business-to-business model. This is then adjusted in size if the area (and postcode) is seen to be better or worse than the average for the potential to use the service you are offering. 2. PROJECTED REVENUE AND COSTS The franchisor may have an internal view that a franchisee needs to invoice out or generate revenues of $500,000 p.a. to cover his or her own rent, wages, incidentals, return on investment, and other operating costs. If the Melbourne/Geelong target market is $25 million, then it should be able to support 50 franchisees as it approaches maturity. This may need to be the five to 10 year plan, but it creates a structure and allows for flexibility with franchisees able to carertake unassigned areas until the franchise system can support the target number of franchises.
CITY
PERSONS
HOUSEHOLDS
POP. RATIO
SYDNEY (Newcastle/ Central Coast/ Wollongong)
5,672,390
1,933,915
34%
MELBOURNE (Geelong)
4,647,007
1,637,362
28%
BRISBANE (Gold Coast/ Sunshine Coast)
3,118,322
1,097,575
19%
PERTH (Rockingham/ Mandurah)
1,942,730
690,081
12%
ADELAIDE
1,234,468
470,906
7%
*Based on Census 2016 population estimates SUCCESS IN A DIFFERENT MARKET Sometimes a franchisor has been successful in another market and therefore we can use the territory numbers and size of territories from elsewhere and transpose that into the market we are working in. If the franchisor has been operating for some years and has 60 territories in Sydney, Newcastle, Central Coast and Wollongong this would be equivalent to having 49 in Melbourne/Geelong, based purely on population and household numbers. Whichever way it is put to you by the franchisor, you should expect to see realistic assumptions, facts and data to support this view.
COMMITMENT OF THE FRANCHISOR Often a franchisor seeking help with territory planning asks us how many territories it should have. Of course we do not write a franchisor’s business plan so the number of territories needs to be considered before any territory planning can occur. We walk them through most of the steps above to come out with a logical and realistic position. Once a franchisor has undertaken reasonable research, it should be able to show you a logically thought out set of information based on realistic assumptions, with mapping to back it up.
IT’S YOUR DECISION If you are looking at taking on a franchise, ask the franchisor what research has been done, and more importantly, what assumptions have been made in working out your territory and whether it has a reasonable chance of sustaining the business. If the answer is vague, may I suggest either referring the franchisor to a company such as ours, or consider looking at another franchise system. n Peter Buckingham is the managing director of geodemographic and sales prediction modelling firm Spectrum Analysis Australia. He is a Certified Franchise Executive, and also a past director and Vic / Tas president of the Institute of Management Consultants.
Credit: Demonstration map of overall territories for Sydney, source: Spectrum Analysis MAY/JULY 2021 | 61 | WWW.FRANCHISEBUSINESS.COM.AU
FRANCHISE BASICS
HOW DOES HR FIT INTO A FRANCHISE? HR issues are part and parcel of a business. In a franchise, HR support comes in the package.
JENNA PAULIN Now Actually
H
uman Resources (HR) is generally not a function in business that owners want to deal with. Unfortunately, reality is, as a business owner managing the complexities of the employment framework under the Fair Work Act it is a requirement of employing staff. When it comes to HR in a franchise system the question of who is responsible for HR becomes uncertain with multiple opinions on the law. Is it the franchisor or the franchisee? One thing that can be agreed on is, there is an argument the function of HR is the responsibility of both the franchisor and franchisee. The boundary on where the liability sits is when the question becomes ambiguous. Depending on who you speak to a different answer may be provided. As a franchisee, you are the director in your own right and
employing staff comes with responsibilities under the Fair Work Act. Although as a franchisor there are also responsibilities under the Protecting Vulnerable Workers Act, that if a franchisor knew or could reasonably have known about a contravention of underpayment by one of their franchisees and failed to take reasonable steps to prevent this contravention the responsibility also applies to the franchisor’s entity along with the franchisee’s entity for underpayment. So why should HR be involved in a franchise system? • To play a role of an educator – upskilling and sharing knowledge with franchisees on obligations under the Fair Work Act. • Provide advice on Award interpretation – with 122 Modern Awards no one is an expert. How a certain award applies for the specific industry or job a franchisee operates under is what must be understood. What clauses impact the franchisees and most importantly the
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! W NO G IN CH IS AN FR ARE YOU PASSIONATE ABOUT FOOD & COMMUNICATION? WANT TO BE HANDS ON AND RUN YOUR OWN BUSINESS? DO YOU ENJOY BEING PART OF THE NEW FOOD REVOLUTION? WE WANT YOU! FRANCHISING@OGALO.COM.AU
(02) 94381711
OGALO-FRANCHISE-449889709115451/
OGALOAUSTRALIA
OGALO_AUSTRALIA
FRANCHISE BASICS
•
Franchisors must take reasonable steps to make sure their franchisees are complying with the rules and regulations when it comes to employing staff.
•
•
minimum rate of pay and how this must be applied. Focus on proactive advice rather than reactive solutions to situations – being on the front foot with an underperforming employee is going to save a franchisee time, money, headaches and brand image in the long run. Ensure appropriate processes are undertaken from a legal perspective. Dismissing an employee because they are no longer working out unfortunately is not also as simple as it sounds. Conducting the appropriate termination process is one of the key factors to avoiding an Unfair Dismissal Claim in the Fair Work Commission. Provide an expert opinion on a complicated area of law – the employment framework in Australia is known to be one of the most complex in the world. As a franchisee you wear multiple hats running a successful business but added to that, needing to know the appropriate obligations under the Fair Work Act is an additional stress to anyone. Having HR support is a key element to a successful business just like having an expert accountant or bookkeeper.
There is a myriad of reasons as to why HR should be involved within a franchise system, only some of which have been mentioned above. Franchisees need to be
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 MAY/JULY 2021 | 64 | WWW.FRANCHISEBUSINESS.COM.AU
aware of their responsibilities and look for the support in that specialised area. Franchisors must take reasonable steps to make sure their franchisees are complying with the rules and regulations when it comes to employing staff. One of the best ways a franchisor can take the lead of HR is not only providing the support as part of the system either at the cost of the franchisor or the franchisee but introducing a regular and consistent HR audit across the franchise network. At the end of the day the franchisor is not wholly responsible for a franchisee underpaying, but they are responsible for providing the adequate education, tools and resources. So introducing an HR audit provides the franchisor with an opportunity to assess how well each franchisee is complying with obligations under the Fair Work Act. It is an opportunity to review, reflect, highlight areas of concern and make changes. Taking a proactive approach is the key to success – it costs an employee $74.50 to lodge a claim in the Fair Work Commission
and they can represent themselves. It will cost a franchisee or franchisor a lot more than that to defend a claim not to mention the brand damage and media attention in the community. Here are 10 reasonable steps for a franchisor to take: 1. Educate and train franchisees on correct process; 2. Audit and monitor franchisees to ensure compliance; 3. Support and assist franchisees and their employees by providing the tools and resources to support the HR function like employment contract templates, correct rates of pay, policies on performance issues etc. 4. Keep franchisees updated about their workplace law responsibilities and refer franchisees to trustworthy workplace law advice; 5. Incorporate Fair Work resources into operations, franchise manual or intranet etc; 6. Ensure the franchise business model takes into account the costs of lawfully
employing satisfactory numbers of staff; 7. Make certain franchise agreements require franchisees to abide by workplace laws and allow for auditing and monitoring for compliance; 8. Consider introducing software to assist franchisees to comply with workplace law responsibilities; 9. Provide franchisees with compliant template documents and resources; and 10. Consider negotiating a registered agreement with Fair Work for consistency of employment conditions across the franchise network. Franchisors should aim to create a network that is attractive and delivers best practice support to their franchisees. HR is one of the support services they need to consider. n Jenna Paulin is managing director of HR firm Now Actually which specialises in providing HR support for franchise networks.
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FRANCHISE BASICS
BANKING ON
YOUR FUTURE Your new business is not an ATM, so don’t treat it like one.
Y
ou’ve done all the research and you’re ready to sign the franchise agreement, armed with a brilliant business plan. Keeping a tight rein on your financials will ensure you don’t unwittingly sabotage the business. One of the reasons franchisors choose franchising to expand their business models is the belief that franchisees’ financial investments give them ‘skin in the game’. The resulting shift in mindset from employee to business owner is most obvious when new franchisees, who were previously managing the business, lift their performance level once the business is their own. There’s a reason the term ‘take ownership’ is so commonly used in business circles. As a business owner, even as a
franchisee, you are ultimately responsible for your business, its performance and its finances. So it makes perfect sense for a new business owner to focus on getting a good return on their investment. That’s what any financial institution will do. Kate Groom, a business advisor and former franchisor, and co-founder of Franchise Accounting & Tax, draws a simple parallel between banks and business owners. "When you buy a franchise, it's a good idea to 'think like a bank' when it comes to your investment in the business. Every franchise buyer invests some of their own money when they buy a franchise.” So what does it mean, to think like a bank? If you have a bank loan, your bank will want to get a return for the risk it is taking. Of course franchisees need to be
rewarded for the risk they take in investing in the business, but this value is greatly decreased if the business has been unable to pay the franchisee a salary. “We think it's important to see that the business has the capacity to repay this investment - on top of the wage you take for the day-to-day role you play, for instance as manager or pool technician,” says Kate. “You should allow for the business to repay all your investment within the first franchise term. This is exactly what a bank does with a loan. They want it repaid — and so should you!" And the ability to take a banker’s view of the business will also help keep the flow of cash on track, and easy to manage. Kate is adamant that while it is the easiest thing in the world to treat your flourishing business like an ATM, it is inadvisable to do so.
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THINK LIKE A DIRECTOR AND SHAREHOLDER •Retain the services of an accounting firm with relevant expertise •Take a regular wage from the business (once it can sustain this) •Work out with your adviser the best way to repay director loans •Understand directors' obligations •Work to a business and financial plan
For starters the revenue your business achieves will be allocated to repay loans, rent, fees, business outgoings, suppliers, wages, insurance, tax. Putting money aside to build up cash for business improvements - a store refit, a new vehicle, an equipment upgrade - means you will be able to take your franchise to the next level. You’ll also need a buffer for any unexpected downturn - and hasn’t 2020 shown us the importance of having funds in reserve? If you start to raid the business for cash for one-off events, or to reward yourself with an expensive toy from your wishlist, it’s easy for these ‘treats’ to increase in occurrence. Then it becomes what’s known as lifestyle creep. Investopedia defines this as when ‘luxury goods and discretionary spending become perceived as a right to have and not a
choice—as a necessity versus a want’. The danger with this is habituable over-spending eats away at your capital, and in extreme circumstances your ability to repay essential bills, putting your business at risk. So rather than treating your business as a cash machine, take a longer term approach. Think like a director. Have a clear understanding of what’s required as a business owner: your responsibilities, both legal and financial, and how to implement them. Ignoring this important part of business ownership can lead to a world of pain at a later stage, says Kate. You may, for instance, become liable for significant tax bills. Of course a good franchise system can provide tools, systems and mentoring but as a business owner you’d be wise to seek
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advice from experts. The easiest way to start your business up the right way could be turning to an accounting firm well versed in franchising and small business issues. A good franchise-focused accountant can advise on an appropriate business structure, set out what reporting requirements there are, advise on BAS and tax issues, and offer general business guidance so you can work to a business and financial plan that is realistic, and regularly updated. You can also work out with your adviser the best way to repay director loans. Thinking like a bank before you buy the business, and like a director once you are running your franchise, will also make you a much better prospect for financial institutions when you want to take out a loan to expand your business, buy a second outlet, or buy a new home. n
FRANCHISE BASICS
TAXING ISSUES Easy guide to tax concerns you need to think about as a start-up business. MARK CHAPMAN Director of tax communication, H&R Block
S
tarting up as a franchisee comes with all kinds of benefits. It also brings tax responsibilities.
Small business is the engine room of the Australian economy and with the numbers of small businesses growing rapidly there are thousands of Aussies confronting the challenge of getting a business off the ground for the first time. So, if you’re a budding entrepreneur, what do you need to know about the tax opportunities and pitfalls that starting a new business brings?
SAVE TAX AND GET YOUR BUSINESS STRUCTURE RIGHT If you opt to operate as a sole trader, you’re taxed at your normal individual tax rates. The same generally applies if you run your business through a trust, though there may be opportunities to save tax by distributing profits to beneficiaries with lower incomes and lower tax rates. You could also operate your business through a company. This is a separate legal entity to the people who run it, meaning that the company lodges its own tax return and pays tax on its profits at the company tax rate – currently 26 per cent (provided the company’s aggregate turnover is less than $50m). The company can then distribute
profits to shareholders in the form of franked dividends which are taxable to the shareholders less a credit for the tax already paid by the company. In some cases, companies retain the profits, possibly for future investment in the business. In that sense, companies can be regarded as tax shelters since the rate of tax payable by the company is significantly lower than the higher rates of personal taxation. That is only part of the story of course; ultimately the cash in the company needs to be extracted and at that point, tax will need to be paid, so the tax is deferred rather than avoided.
GET AN EARLY TAX BREAK It’s quite common to incur costs relating to a proposed business even before you start trading. Certain costs that you incur can be claimed even before the business starts. These can be claimed by whoever incurs them, even if the business ends up in a different entity (you incur a cost personally but end up running the business through a company). Examples of what could be claimable include: • Payments to accountants and lawyers for structuring advice, setting up entities, due diligence and business plans, even if the business doesn’t go ahead).
•
Government fees and charges relating to setting up an entity (eg stamp duty).
AVOID TAX TRAPS For small businesses operating through a company, the biggest tax trap is failing to distinguish the company’s money from the individual business owner’s money. Small-businesses owners often fall into the trap of taking money out of their company and failing to account for it properly as either salary or a dividend. In that case, the ATO can deem the amount taken out to be a loan and tax it as an unfranked dividend if the situation isn’t rectified. The same treatment can be applied where business owners use company assets at no cost, like a company owned property or boat. Other major issues include: • “Cash only” businesses failing to correctly record all turnover. • Not realising you need to register for GST (particularly common for taxi drivers and Uber drivers). • Not focusing on keeping records leading to missed BAS and tax return deadlines, missed tax payments and poorly kept records. n A version of this article was first published on Inside Small Business.
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FRANCHISE BASICS
THE CHEAT SHEET Top line info on the franchise agreement.
T
he franchise agreement is central to your purchase of a franchise, and while each will differ in detail, there are some crucial commonalities that you need to be aware of.
WHAT IS THE FRANCHISE AGREEMENT? It is a legally binding contract between you and the franchisor. This document outlines the obligations that you will need to fulfil as a franchisee, for the length of the franchise term you sign up to. It gives you permission as the franchisee to use the brand and the systems associated with it in your own business. And it outlines the roles and responsibilities of both parties: franchisee and franchisor. While each franchise agreement will convey the rules that govern every aspect of the business, each agreement will be distinct in the detail. For instance, two agreements viewed side-by-side may set out entirely different rules and expectations around franchise territories. A franchise agreement could be 20 pages, or a much longer document; it may use legal jargon or be written in an easy-tounderstand style.
WHEN DO I GET A COPY? You can ask for a copy of the franchise agreement at any time in your discussions with the franchisor. However, the franchisor must give you a copy of the document at least 14 days before you sign the agreement or hand over non-refundable payments to the franchisor.
WHAT DO I DO WITH IT? Once you receive your franchise agreement, read it - several times if possible - to ensure you understand it. It can be helpful to read it alongside the disclosure document - and if you can get access to it, the operations manual. Take notes of any questions you have and either address these with the franchisor or discuss them with your franchiseexperienced lawyer.
WHAT SHOULD I LOOK FOR? Check the term of the agreement and whether there are options to renew it. Find out if it coincides with the length of
a lease, if that’s relevant to the business model. If the business is territory based find out whether or not you will be operating in an exclusive area, and how this is mapped. Look at the schedule of fees. Check what the franchisor will provide for set-up - any equipment, training, store fit-out. Are there any minimum performance criteria you will need to adhere to? Does the franchisor provide any income guarantees? Will you need to provide personal guarantees? Consider what the agreement says about suppliers and what rules you have to observe around sourcing product. Understand what the transfer process is when you are ready to sell. Look at the dispute process that’s outlined in the agreement - it needs to match the requirements of the Franchising Code of Conduct. Ensure you understand what is regarded as a breach of contract, and what can lead to the franchisor terminating the agreement. Review any clauses relating to restraints of trade both during the life of, and after the agreement expires. n
TOP TIPS Make sure you have enough time to read the document through thoroughly, so you have a good understanding of what’s included. You can take as long as you like to do this. It’s wise to seek legal advice from a franchise lawyer early on in the process because they can advise about any inappropriate or illegal clauses included in the agreement and can negotiate any proposed changes with the franchisor’s lawyer.
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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.
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
CHIEF INFORMATION OFFICER
The CMO is essentially charged with increasing revenue through increased sales using market research, product marketing, pricing, marketing communications, advertising and public relations. Responsible for directing the planning, development and implementation of the franchisor’s marketing and advertising campaigns, ensuring a common message across multiple channels and platforms, the CMO reports directly to the CEO.
GENERAL MANAGER
A general manager has overall profit and loss responsibility for the company, and usually oversees sales, marketing and daily business operations. The responsibilities of the role may be incorporated into a CEO role.
FRANCHISE RECRUITMENT MANAGER
The franchise recruitment manager is responsible for attracting franchise buyer enquiries and for the recruitment selection process, increasingly working with managers from other divisions and
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the CEO or MD in the final selection. The franchise recruitment manager needs to meet internal recruitment targets and ensure franchisees are a match for the franchise brand.
BUSINESS DEVELOPMENT MANAGER/FIELD MANAGER:
Variously called a BDM, regional manager, field or area manager, this role is the interface between the franchisee and franchisor. Responsibilities include helping franchisees achieve their business goals, ensuring brand compliance across the network, communicating brand direction and strategy to franchisees.
TRAINER
The person or team who will set up a franchisee to run the business. Responsibility for training may fall under operations or general management. Training may involve technical skills, customer service, business basics, and operational procedures. The trainer may train franchisee staff.
PR AND COMMUNICATIONS
How the brand is presented in the media, how the brand engages with social media, how brand damage is mitigated...all these are influenced by the team that handles PR and corporate communications. This may be an internal team or an external agency.
SUPPORT TEAM
The individual employees at head office who manage, monitor and deal with queries, requests and complaints from franchisees.
FRANCHISE ADVISORY COUNCILLOR A franchisee member of the Franchise Advisory Council which is typically involved in providing frontline feedback from franchisees to the franchisor, and in assessing and trialling new initiatives.
FRANCHISE BASICS FRANCHISE BASICS
30
THINGS TO CHECK R BEFORE YOU INVEST
Get set prior to your purchase with our easy checklist. Just tick off the must-do items.
Are you confident in the franchisor?
Have you worked out your operating costs?
What are the franchisee and franchisor obligations?
Have you seen a disclosure document?
Do you know the term of the agreement?
What training is available and who pays for it?
Is the franchisor compliant with the Franchising Code of Conduct?
Do you need a permit or license to operate the business?
Who owns the intellectual property and what is licensed to the franchisee?
Have you run a credit check on the franchisor?
Is the business operating from fixed or mobile premises?
What marketing will the franchisor implement?
Does the franchisor have a history of litigation? Are there any cases coming up?
Have you checked the lease? Is there a right to renew?
What marketing is your responsibility?
If you are buying an existing business, have you seen current financial statements (balance sheets, profit and loss, tax returns)?
Does the length of the lease match the franchise term?
What is the dispute resolution process?
Have you evaluated the financial returns?
What are the store fit-out costs?
Do you know what it is like to be a franchisee?
If you are buying a greenfield (brand new) site, do you have sales and profit examples and know the method behind the calculations?
Are you working within a territory? If so is the area exclusive?
Do you have an exit plan?
Do you know all the expenses franchisees are required to pay?
Are you restricted in your product purchase?
Have you spoken to former and current franchisees about the business?
What royalties are there and how are they calculated?
Are you required to reach a minimum performance level?
What restrictions are there on the franchisee and guarantor operating a similar business?
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RESOURCES AUSTRALIAN COMPETITION AND CONSUMER COMMISSION (ACCC)
FRANDATA
The ACCC is an independent Commonwealth statutory authority which regulates the mandatory Franchising Code of Conduct (Code) and can investigate alleged breaches of the Code. The ACCC is responsible for enforcing the Competition and Consumer Act 2010 as well as legislation, promoting competition, fair trading and regulating national infrastructure. Its role is to protect, strengthen and improve the way competition works in Australian markets and industries.
FRANData is the home of the Australian Franchise Registry which identifies franchise brands that have up-to-date franchise agreements and disclosure documents, and which have confirmed with the Registry their compliance with the Franchising Code of Conduct. FRANData also provides reports on the franchising sector. Well established in the US since 1989, the business was established in Australia in 2013 to help the franchise sector address key strategic challenges and take advantage of opportunities available to qualifying brands.
Visit: WWW.ACCC.GOV.AU
Visit: WWW.FRANDATA.COM.AU
BUSINESS.GOV.AU
FRANCHISE.ED
This website is an online government resource for the Australian business community which gives the public access to government information, forms and services for all things business. It is aimed at assisting individuals or a group of people to plan, start and grow their business. New business owners can access the advice finder, events calendar, grants and assistance finder, a directory of government and business associations, planning templates, business videos, and business checklists. Business topics include emergency management and recovery, finance, recruitment, environmental management, fair trading, taxation, online business, franchising, importing and exporting, intellectual property and training Visit: WWW.BUSINESS.GOV.AU
Visit: WWW.FRANCHISE-ED.ORG.AU
THE FAIR WORK COMMISSION
FRANCHISE COUNCIL OF AUSTRALIA
The FCA is the main body for representing franchisees, franchisors and service providers in the $146bn franchising sector in Australia. Becoming a member of the FCA is a voluntary and is available for any organisation or anyone involved in the franchise industry including franchisees. Visit: WWW.FRANCHISE.ORG.AU
FRANCHISEBUSINESS.COM.AU
Franchise.ED (previously Asia-Pacific Centre for Franchising Excellence) was created to help people find independent information and research on franchise best practice. FranchiseED is a Not for Profit which provides education to encourage best practice; provides consultancy services; and provides access and dissemination of quality franchise research. The revenue generated by these programs will help support the social enterprise programs of FranchiseED. It extends upon the work undertaken previously by the Franchise Centre at Griffith University with the transformation into FranchiseED.
This is the online arm of the Inside Franchise Business publication. Both platforms are focused on providing essential advice and information for anyone looking to invest in a franchise. The website provides short and snappy business tips and news, video interviews, industry commentary and market reports. FranchiseBusiness.com.au lists franchising opportunities available in Australia. Potential franchisees looking to move into the franchising sphere can explore opportunities that currently exist in the market and enquire about the franchisor or brand. Users also have access to franchise consultants and advisors who can assist prospective or existing franchisees and franchisors with legal, financial educational and training, IT and other services.
Fair Work Commission (the Commission, previously called Fair Work Australia) and the Fair Work Ombudsman (FWO) are independent government organisations that regulate Australia’s workplace relations system but have different roles. The Commission is the independent national workplace relations tribunal. It is responsible for maintaining a safety net of minimum wages and employment conditions, as well as a range of other workplace functions and regulation. The FWO enforces compliance with the Fair Work Act, related legislation, awards and registered agreements. It also helps employers and employees by providing advice and education on pay rates and workplace conditions. Visit: WWW.FAIRWORK.GOV.AU
Visit: WWW.FRANCHISEBUSINESS.COM.AU MAY/JULY 2021 | 79 | WWW.FRANCHISEBUSINESS.COM.AU
Phone: 02 9621 0444 Fax: 02 9621 0401 Contact: Head of Franchise Relations & Development
A-Z LISTINGS
franchising@ambertiles.com.au ambertiles.com.au Start up costs: Dependent on store and site: $280K-$450K plus stock. PROFILE: We are the premium supplier of quality floor tiles, wall tiles, natural stone, pavers, retaining walls, and synthetic grass to retail, trade and designer customers. The first Amber store was opened in 1973, and the first store was franchised in 1993. Today we have an enviable base of 22 franchised stores and 7 company stores. Now is an exciting time to join Amber. Amber has ambitious plans utilising the proven Amber Franchise System. So, if you’re • Highly motivated to achieve • Seeking personal and financial independence • Enjoy serving customers and enjoy working as part of a team then, an Amber franchise may be the answer for you.
Phone: 1300 287 669 Contact: Chris Longley franchising@ats.com.au www.appliancetaggingservices.com.au
Phone: 1300 361 397 Website: www.aussie.com.au/business-opportunities
Start up costs from: $57,000 + GST PROFILE: Your business, your way
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.
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!
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: 0432 244 136 Contact: Jarryd Cayfe jarryd.cayfe@burritobar.com.au www.burritobar.com.au
Phone: 1300 920 875 Contact: support@bizcover.com.au www.bizcover.com.au
Start up costs: $150,000 - $400,000 (location and size dependant)
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.
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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.
Inside Franchise Business brings potential franchisees news, insights, advice and a directory of available franchise opportunities: it is your essential guide to buying a franchise in Australia.
JEFF PURSER
HEAD OF SALES, OCTOMEDIA +61 408 401 076 JEFF.P@OCTOMEDIA.COM.AU
Visit our website to find out more!
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www.franchisebusiness.com.au
Phone: 0412 511 630 Contact: Kevin Bugeja kevin@franchise4u.com.au www.cowch.com.au Start up costs: $500,000 - $700,000
Phone: 0401 058 607 Contact: Kellie Cranch Kellie.cranch@rfg.com.au rfg.com.au (follow prompt to Franchising) / crustpizza.com.au
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.
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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. 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 Cleaning
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Mobile Pet Grooming & Hydrobath
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Lawn & Garden Care
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Window & Exterior House Cleaning
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Mobile Car Cleaning
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Carpet Cleaning & Pest Control
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.
Contact: Victoria Head Details: Franchising@madmex.com.au +61 468 952 900 Website: franchising.madmex.com.au Start up costs: $300,000 - $500,000
Phone: (02) 8962 8526 Contact: Maria Chemali franchise@kwikkopy.com.au www.kwikkopy.com.au/franchise Start up costs: $280,000 (for a Greenfield) PROFILE:
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.
Inside Franchise Business Executive is a dedicated resource for franchise professionals It provides essential news, opinion and expert advice, alongside a suppliers directory. Visit our website to find out more!
executive.franchisebusiness.com.au
Do you want to run a business that is both successful and makes you feel good about what you’re doing? Mad Mex delivers flavourful, honest, and healthy Mexican food that is packed with flavours customers crave. Join the Mad Mex familia and you’ll: • Become part of one of Australia’s fastest-growing fast dining franchises. • Take ownership of your business and use your experience and acumen to deliver an award-winning customer experience. • Get access to a suite of resources and the support of a dedicated Operations Manager.
A-Z Find out more and start your franchise journey today at franchising.madmex.com.au
L I S T I N GS
FOR A-Z LISTINGS ENQUIRIES CONTACT:
JEFF PURSER
HEAD OF SALES, OCTOMEDIA +61 408 401 076 JEFF.P@OCTOMEDIA.COM.AU
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Phone: (02) 9438 1711 Fax: (02) 9438 1733 Contact: Nelson Lima info@ogalo.com.au www.ogalo.com.au
Phone: 07 3221 2221 Contact: Bill Morgan info@morganmac.com.au www.morganmac.com.au
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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: $250,000 – $330,000 PROFILE: Ogalo represents a vision in providing Australians with healthy, time convenient and great food. The Ogalo story started in 1989 when Carlos founded one of Sydney’s most famous Portuguese Chicken shops, offering succulent chicken that was prepared in the traditional Portuguese way! Carlos perfected his signature chicken burger recipe that has made Ogalo the success it is today, with a cult following customer base like no other! Ogalo has expanded its menu to include an extensive range of meal options which includes grilled breast fillet burgers, wraps, fresh salads, marinated BBQ whole chickens, vegie and vegan options and much more!
Phone: (07) 3215 6000 Contact: Tanya Kanaris tkanaris@priceattack.com.au www.priceattack.com.au
Phone: 1800 809 913 Fax: 03 8699 1555 Contact: Anna Goncalves franchising@questapartments.com.au
Start up costs: From $150,000.00 (greenfield & including stock)
www.questfranchise.com.au Start up costs: $750,000 upwards
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
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
Phone: +61 492 837 020 Fax: +1 416 646 0366 Contact: Greg Sweney opportunity@tutordoctor.com www.tutordoctoropportunity.com 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.
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.
A-Z A-Z Franchising in Victoria and NSW with opportunities available nationwide!
Inside Franchise Business brings potential franchisees news, insights, advice and a directory of available franchise opportunities:
L I S T I N GS
FOR A-Z LISTINGS ENQUIRIES CONTACT:
JEFF PURSER
HEAD OF SALES, OCTOMEDIA +61 408 401 076 JEFF.P@OCTOMEDIA.COM.AU
it is your essential guide to buying a franchise in Australia.
L I S T I N GS
FOR A-Z CONTACT SENIOR LISTINGS ACCOUNT MANAGER www.franchisebusiness.com.au Visit our website to find out more! ENQUIRIES CHARLOTTE REDFERN ON 02 8224 8373 CONTACT: CHARLOTTE.REDFERN@OCTOMEDIA.COM.AU
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Making Franchise Law
Black and White
Unravelling the Knot With the increasing regulation of franchising, and and impending impending changes changes to to the the Franchising Franchising Code Code of Conduct and current review of the unfair contract contract laws laws likely likely to to add add to to the the protection protection and and rights of franchisees and their employees, there there is is aa commensurate commensurate increase increase in in the the risk risk of of being being tied up in legal disputes between franchisors and franchisees that are difficult to unravel. franchisors and franchisees that are difficult to unravel. Our commercial litigation and dispute resolution resolution legal legal team, team, who who have have many many years years of of specialist specialist franchising law expertise, and have acted in over over 50 50 franchise franchise dispute dispute mediations mediations in in the the last last three years, employ strategies for clients to manage manage conflict conflict risks risks and and resolve resolve disputes disputes as as quickly as possible with the best possible outcomes. outcomes. Do Do not not remain remain tied tied up up with with legal legal disputes. disputes. Seek advice early to avoid avoid aa protracted protracted legal legal dispute. dispute. Our focus is to deliver high quality legal legal services services of of real real value value to to our our clients. clients.
CONTACT US 07 3221 2221 | info@morganmac.com.au info@morganmac.com.au
Mexican: Fresh, healthy and
Franchising now Fresh Fuel For Life; It’s our mantra and the secret to our salsa We combine the flavours of Mexico with a genuine respect for nutrition and lifestyle, bringing you to the crossroads that has made Mad Mex a leading franchise in fast casual dining. You can join our fiesta! Built over 10 years, our award-winning franchise concept, gives you all the tools and support you need to achieve success.
Locations availabLe,
franchising now
franchising.madmex.com.au
