June 2013
Made in Australia
- Vulcano Gelato: With franchisees of Vulcano’s flagship store in Rye.
Family Business or Family Feud - Mixing family and business together!
Franchising
- Still the Best way to grow your business
In the spotlight... Pole Princess, My Botique and The Gold Club.
Have you told your colleagues about Franchise Magazine?
ranchise magazine | contents
what’s in the mag >> Regular Features 04 A Quick Word With Nick James
16 The International Stage
Franchising news from around the globe
24 Made in Australia Vulcano Gelato, Rye
Features and Articles 36 Franchising
The best way to grow your business in today’s business world
42 Family Business or Family Feud Mixing family and business!
Business Corner 46 Last Words Your say on franchising
48 What’s On?
Franchising Events Calendar
50 About Franchise Magazine Contact information and more
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Franchises in the Spotlight 20 Pole Princess Getting the fitness industry in a spin
30 The Gold Club
All that glitters is a great business opportunity
34 My Botique
A glamorous franchise opportunity
Hot off the Press 06 Nanotek Expands internationally
08 Muffin Break
Proves franchised coffee is the best kind
12 Go Sushi
Celebrates 10 million customers
14 Vom Fass
Flows to Australian shores
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ranchise magazine | a quick word
a quick word with Nick James >> Welcome to another edition of Franchise Magazine! You might have noticed a little change here at FMO that we’re all a little excited about. Since we’re always talking about expanding your business, we decided to expand ourselves to keep up with you. Instead of being a bi-monthly magazine, we’ve made the switch to being monthly. That’s twice the amount of FMO for you each year and the best thing of all, we’re still free for everyone to subscribe to and read! In this edition, we headed down to Vulcano Gelato’s original flagship store in Melbourne’s peninsula Rye which is now owned and operated by Franchisees Vince and Maria - I know what you’re thinking, “It’s never too cold for gelato!” which is even truer when we’re talking about Vulcano Gelato, yum! Speaking of hot franchises, this month we also take a look at Pole Princess, My Botique and The Gold Club in the Spotlight and in my article I explain exactly why franchising is as hot as ever.
Enjoy this edition of Franchise Magazine and until next edition, Keep safe and cheers for now!
Nick and the team at Franchise Central.
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ranchise magazine | hot off the press
Nanotek claim expert title with international expansion
Nanotek have stamped their authority on the
“We have a history of being global leaders in mobile car cleaning and we’re determined to really honour this title by continuing to drive the industry forward. We’ve always been renowned for our precision and efficiency. It’s our mission to exceed our customers’ expectations by continually developing our service offering and experience” said Nanotek CEO Jim Cornish.
car washing & detailing industry with a new title - “Mobile Car Cleaning Experts”. A local brand, with a global reputation, industry leading mobile car cleaning franchise Nanotek extends more than 16 countries and has been establishing benchmarks for innovation and growth in both customer service and franchising since its The entire Nanotek team is dedicated to providing conception 10 years ago. a benchmark level of expertise. To ensure this, The claim of expertise is bold, but it has been franchisees undergo comprehensive training earned. Nanotek, an Australian born franchise, are when they first come on board, and then take the pioneers of waterless car washing technology part in yearly conferences and ongoing training and are a multi-award winning and proven on new technology, car developments & ways to international franchise system. Their patented even further improve the Nanotek service and advanced liquid polymer nanotechnology grabs experience. tough dirt stains without scratching and leaves a Their success has seen Nanotek recently launch in beautiful, polished finish unrivaled in the industry. New Zealand and Russia, and is now seeing further In order to encapsulate the high quality level of the nanotechnology, Nanotek have adopted a new tagline and logo: Nanotek, Mobile Car Cleaning Experts. It reinforces one of their key differentiating offers – their advanced and cutting edge technology.
expansion within Eastern Europe with the recent signing of agreements in the Czech Republic, Slovakia and Austria.
Nanotek, the Mobile Car Cleaning Experts, are entering another new exciting phase of their business evolution and are confident that their new expert claim and logo is in line with their position This cutting edge process has been engineered to be as industry leading car cleaners - it is a reflection highly effective and environmentally sustainable, of the credibility Nanotek has achieved around the saving up to 180L of water each treatment and globe over the last 10 years… but for Nanotek the using only biodegradable products. best is yet to come!
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ranchise magazine | hot off the press
It’s official!
Franchised coffee, is the best coffee! Penrith-based
barista, Melissa Hall, who’s coffee making skills are proudly showcased at the Muffin Break where she works has proven that she makes Australia’s best coffee! Melissa, aged 21, creamed her competition at the Grand Final of the seventh annual Foodco Barista Championships held this month in Sydney. After knocking-out hundreds of competitors from across Australia and New Zealand to make it to the Grand Final of the competition, Melissa put to use her six years of experience as a barista at Muffin Break Penrith to ultimately prove that she can easily create 12 cups of aromatic coffee in 15 minutes and before panel of judges. Declared 2013 Muffin Break Barista Champion, Melissa also won the title of 2013 Foodco Barista Champion, making her the best barista of all finalists who competed from all three Foodcoowned brands – Muffin Break, Jamaica Blue and Dreamy Donuts. Melissa impressed the judges with the tactile balance, consistency and colour of the cremà in her espresso as well as the creaminess of the froth and smoothness of the milk in her cappuccino. However it was Melissa’s Signature Beverage called ‘Tropical Piccolo’ containing maple and coconut syrup as well as fresh lime over a 30ml shot of espresso that ultimately capped-off the Penrith-barista’s prizewinning performance. “I’m so happy I won! I didn’t make it to the Grand Final last year so to have come back to win the title this year is an achievement I’m so proud of! It was definitely a nerve-wracking experience but part of me knew the judges would like my signature drink. It’s memorable and delicious and now I can’t wait to make more of it!” said Melissa. 8 | June 2013
The 2013 Foodco Barista Championships Grand Final event was attended by the crème de la crème of the Australian coffee-making industry including 2013 M.I.C.E National Coffee Chain winner and 2012 Muffin Break Barista Champion, Michael Byrne, as well as former Australian Latte Art Champion, Will Priestley. Muffin Break Brand Manager, John MacPhail, said the quality of talent displayed at the Grand Final was exceptional this year and demonstrated that Muffin Break baristas are equipped to shine in a range of skills essential to professional coffeemaking. “To even make it to the Grand Final is an incredible feat and I am truly proud of all six competitors. In addition to freshly-baked foods, coffee is a key element of the Muffin Break product mix. Our Melbourne-roasted proprietary coffee blend is award-winning and all Muffin Break baristas undergo hours and hours of training on a regular basis, so it was really rewarding to see the upshot of all their hard-work put into practice yesterday. “As Melissa demonstrated however, one of the keys to being a champion barista is the ability to adjust your technique to swiftly serve-up premiumtasting coffee in-spite of external pressures,” added Mr Macphail. In addition to the coveted titles of 2013 Muffin Break Barista Champion and 2013 Foodco Barista Champion, Melissa has won a host of prizes including an Apple mini iPad valued at $500, a state-of-the-art coffee machine and grinder valued at $2,500 and ‘money-can’t-buy’ mentorship from qualified industry experts in the lead-up to next year’s prestigious M.I.C.E competition.
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ranchise magazine | hot off the press
Go Sushi surprises their 10 Millionth Customer with
$10,000!
Just like any normal Tuesday, Catherine Pickham
she said. When asked how she was going to spend a Kawana local was on her way to the post office her $10,000 cash she said “I need to fix my car. I was in Kawana Shopping World for work when she also hoping to go overseas next year, now I can!” passed Go Sushi and decided to grab lunch on Go Sushi Kawana store owners, Ian and Caroline the go. Staring at the cabinet wondering what to Martin, said they could sense the excitement all day order, she decided on two sushi rolls with mayo and curious customers and retailers were circling in on the side, little did she know her meal would anticipation that something was about to happen. also come with a side of $10,000 cash! “It has been an unbelievably fantastic day and the With a flourish of balloons, crowds of people and energy around our store has been electric. I still a gigantic cheque, Catherine was surprised and cannot believe that we were able to hand over a speechless as she was awarded with $10,000 for $10,000 cheque!” said Caroline. being Go Sushi’s 10 millionth customer. Catherine couldn’t believe her luck as she held tightly to her $10,000 cheque “I’ve never won anything in my life”
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ranchise magazine | hot off the press
Vom Fass flows to Aust Vom Fass has opened its first Australian location
“Our wide range of selected vinegars, oils, single in Westlakes, Adelaide bringing with it their malts and spirits gives our client a huge variety of signature special shopping experience which choice”, explains Richard the manager of the new is based on a simple idea: “Look-Taste-Enjoy”: Vom Fass shop in Westlakes. The exceptional vinegars and oils, wines, spirits and liqueurs are freshly decanted from the cask, Besides single malt whisky and Rums tapped from the cask, customers can discover various carboys or from stoneware crocks. vinegar specialties from the company’s own This is the first store anywhere in Australia, but with vinegar factory, like Waldburg Balsam Raspberry or Vom Fass International pty ltd actively seeking new Waldburg Balsam Ginger/Grape as well as selected partners, more stores are soon to come. oils. Santini, an extra virgin olive oil from Italy, won a German contest among several olive oils with the For the shopper’s convenience, all Vom Fass grade 1,7. products can be decanted in even small quantities, which are always fresh. Customers can choose from There are even more products than just Aceto the wide selection of bottles offered in Vom Fass Balsamico shops. Due to the wide variety of delicacies, each Vom Fass shopping experience is like a culinary Richard advises how to use different Vom Fass oil expedition, with the added bonus of tasting and vinegars combinations in the kitchen. Before customers visited the shop, they only knew of products before buying.
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tralian shores Aceto Balsamico and olive oil, “However, there are many different oils and vinegars that you can use with meals, and we are showing our customers brand new tastes and experiences in the kitchen�. Some specialties are only offered at Vom Fass and these cannot be found somewhere else. For example, the unusual vinegar Waldburg Balsam Calamansi. This is produced from the Calamansi citrus fruit, comparable with lime/lemon, and growing only in the Philippines it has a fantastic flavor that is unrivaled. One of the special rarities is real pumpkin seed oil from Styria. It is extracted from a special pumpkin variety from Styria grown without a shell. Only the best producers succeed in obtaining the special pumpkin aroma and taste when they press the seeds.
www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE
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ranchise magazine | the international stage
international stage franchising news from around the globe >> Subway, Think Expansion Subway is already the largest fast-food chain by store count, with 39,500 restaurants worldwide. But that’s nothing compared with its expansion plans in the coming years, Subway plan to increase their store count by more than 10,000 new stores by 2017 and have set a goal of 100,000 by 2030.
Fat Burger gets
bigger
American burger franchise, Fat Burger has opened its largest Fat Burger location to date. Located in Lahore, Pakistan, the 20,000-square-foot restaurant features a drive-thru, delivery services and seats more than 200 diners. 16 | June 2013
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By George! It’s back! After years of campaigning, petitioning and pleading, New Zealand’s own Georgie Pie is making a comeback 15 years later but not as the Kiwis once knew it. McDonalds who bought Georgie Pie in 1996 have started trialing Georgie Pies Steak Mince ‘N’ Cheese pies across 11 of its New Zealand McDonalds stores and granted tials are successful will look into making Georgie Pie a permanent ficture of McDonalds New Zealand with the inclusion of additional Georgie Pie favourites. www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE
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ranchise magazine | spotlight: pole princess
Putting the
fitness industry into a spin! U
pon entering a Pole Princess studio you are not faced with the stigma people associate with this kind of dance but rather an empowering celebration of femininity, a place that combines fitness with beauty and grace, whilst having fun and building confidence. Make no mistake, this is not a gentlemen’s club, in fact, quite the opposite (although there are classes for men as well). Pole Princess is a boutique style, health and fitness studio with a difference, emphasising performance art in a fun, friendly, motivating, supportive and caring environment where everyone is treated like a ‘superstar’ in their own right. No longer being restricted to the so called ‘gentlemen’s club’, pole and exotic dance is the latest fitness choice being embraced from celebrities to the yummy mummy next door, as a new and exciting way to strengthen and elongate the physique, improve self esteem and teach us all how to strut our stuff!
C lick Here to register your interest in a P 20 | June 2013
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Pole Princess caters for everyone from the sporty through to the creative, those wanting to lose weight or increase their fitness and those who just want a special get together with their girlfriends each week or celebrate a hens night or birthday. In a span of just a few years, Pole Princess Franchisor, Anastacia has seen the Pole Princess franchise experience a phenomenal growth with locations in Melbourne’s Kew, Mitcham, Reservoir and Cheltenham and plans for more to come. With the health and wellness industry predicted to become the largest industry in the world and the next trillion dollar industry, Pole Princess has its sights clearly focussed on the future and is set to make its mark with national and international franchise expansion.
Pole Princess franchise opportunity www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE
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ranchise magazine | made in australia: vulcano gelato: Rye
made in australia vulcano gelato, rye >> Vulcano Gelato, Rye is where it all began
for Franchisors Gino and Josie as their flagship store. It is also where it all began for Franchisee team, Vince and Maria when Gino and Josie decided to share this Rye delicacy and begin franchising with the opening of Moonee Ponds and allowing their franchisees to get their start in the pre-established and well known Rye location. We at Franchise Magazine caught up with Vince of Vulcano Gelato, Rye to discuss what it’s like to be a Vulcano Gelato franchisee.
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>> Vulcano Gelato, Rye 2387 Point Nepean Rd Rye VIC 3941, Australia www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE
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ranchise magazine | made in australia: vulcano gelato: Rye
1. Describe your personality to us. I am definitely a people person and a ‘doer’. I like to make things happen. I would say I am very enthusiastic and driven and place high value on loyalty and family.
2. Why did you decide to become a franchisee? My wife Maria and I had just started a family. We were looking for an opportunity to change our work life and wanted something that essentially provided more quality family time.
3. What made you choose to join the franchise group you are with? Vulcano Gelato (Rye) was the pilot store and where the Vulcano Gelato brand, product and business operations were developed, fine tuned and franchised. I was relatively familiar with the business concept because my sister Josephine and her husband Gino Maniaci are the founders and continue to be the driving force behind the ongoing development and growth. I had also experienced firsthand, the phenomenal crowds lining up for the Vulcano Gelato product. Proud to say that I was, and continue to be, an avid fan and enjoy as often as I can (some would say maybe too much) – only I have never had to wait in line! The Vulcano Gelato (Rye) store was perfect for me and my family and when it became available as a franchise, I pounced. It’s a team effort but the Vulcano Gelato business has provided both Maria and I with more flexibility with regards to balancing work, rest and play. The financial rewards have been great but more than anything, the quality family time that comes with it all is the major bonus for us.
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4. How did you begin the franchise process? I had inside information! When it became apparent that Josie and Gino were ready to move forward and concentrate on further developing and expanding the Vulcano Gelato brand, products and franchise network, I got ‘first right of refusal’ so to speak – they knew I was looking for a business opportunity. We still had to go through the franchisee recruitment process and various negotiations to make it all happen. The crew from Franchise Central stepped us through the recruitment process and the executable documentation was prepared accordingly. All in all it was a very seamless process and here we are today.
5. Walk us through a typical day for you in your franchise. Rye is very much a destinational location. Our store overlooks the ocean and is iconic to not only the locals but thousands that holiday and visit Rye during the warmer months. This means we are run off our feet in the warmer months of the year (Sep-Feb) and then it tapers off. During the warmer months we open earlier and closed later (much, much later). We have more staff on deck during these busy months. You definitely have to be switched on and on the ball! It is during the cooler months where we have extra flexibility to work less and also enjoy holidays – particularly summer holidays overseas!
6. What would you say was the most confronting aspect of being a franchisee and how did you overcome this? Bankers. Finding a banker that understands franchises. That is the only thing we found frustrating. Otherwise, the Franchisor management team is fantastic, readily available to answer questions and we continue to be impressed with the systems in place as well as new developments that also benefit the group.
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ranchise magazine | made in australia: vulcano gelato: Rye
7. Tell us about the positive aspects of being a franchisee.
8. Can you give us an example or two of an obstacle you have faced? How have Where do I start?! Wow, you know it sounds a bit you and your franchisor dealt with this? cliché but the reality is that we are in business for ourselves but not by ourselves. The fact that the business is a franchise means it is a proven system. The gelato is second to none and exclusive only to Vulcano Gelato stores – people from all walks of life and from all over Australia and overseas make it their business to visit Vulcano Gelato (Rye) and/ or Vulcano Gelato (Moonee Ponds) to indulge in our infamous gelato.
Staff has been the only obstacle really. Training them up is one thing, getting them to perform to our expected high standards is another – but that is nothing new in any industry. Other than that it is all good.
9. As franchisee, knowing what you know now, would you make this investment again?
The very best thing about owning and/or operating a franchised business is that fantastic support you get from the Franchisor. You have a sense of Without a doubt! In fact, it is our plan to open belonging to and are closer to the bigger picture of another Vulcano Gelato franchised store in the things – it’s great to be part of a group effort and to future. be able to work alongside a group of people with a shared vision.
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10. Do you think the fact that your business belongs to a franchise contributes to your success? If so, how? Give examples. Sure – we ultimately chose Vulcano Gelato because it has a very organised and sound system in place and quality products that essentially sell themselves.The business itself was already operating successfully and yes, we know the previous owner/operators very well. However, investing in a business is a big step and a life changing one at that so irrespective, we still did our due diligence and all that before going down the franchise ownership road.
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ranchise magazine | spotlight: the gold club
EARN EXTRA INCOME FU
With the Gold Club you can; Own your own business, keep every dollar you earn, CASH! in your own business that is easy to operate with very high profitability!
Choose the hours you want to work with this affordable and complete business system!
The Gold club is; A fully portable system that offers you the opportunity to start your own business for under $10,000 and work part or full time from home.
A GOLDEN BUSINE 30 | June 2013
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ULL TIME OR PART TIME
The future is bright with The Gold Club!
Click Here
to learn more about your own golden business opportunity with The Gold Club
ESS OPPORTUNITY www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE
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ranchise magazine | spotlight: my botique
Cosmetic I My Botique ‘Cosmetic Injection Specialist’ is Australia’s Number 1 Cosmetic Clinic brand. Established in 2009 by a highly motivated team of entrepreneurs, My Botique has taken the Clinic Industry by storm. My Botique ‘Cosmetic Injection Specialist’ provides a world class service in cosmetic injections, laser therapy, skin therapy and body treatments. My Botique ‘Cosmetic Injection Specialist’ has already opened three successful clinics employing over 20 highly trained professionals, and you too could indulge in this luxurious and lucrative opportunity! Over 10,000 patients have been treated in the last 18 months and with a growth in sales of over 30%, My Botique ‘Cosmetic Injection Specialist’ is truly “The Future of Aesthetics”.
CLICK HERE TO REGISTER BOTIQUE FRANCH 34 | June 2013
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Injection Specialist My Botique franchisees benefit from; • • • • • • • •
Low start-up costs Comprehensive business training A profitable clinic system A ready made database and cash flow Digital marketing campaigns State advertising campaigns Access to the MB Academy Initial & Ongoing Training
My Botique seek franchisees that are/ have: • Medical/ Professionals who understands investing in a burgeoning market – AESTHETICS • Passion and energy to be aligned with a No.1 Cosmetic Clinic Brand • Good work ethic • Excellent management and leadership skills • A willingness to learn and undergo My Botique ‘Cosmetic Injection Specialist’ training
R YOUR INTEREST IN A MY HISE OPPORTUNITY www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE
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ranchise magazine | feature article: grow your business in today’s business world
franchising the best way to grow your business in today’s business world >>
By Nick James Franchise Central
As one
of Australia’s leading Franchise Consultancies for over our 23 years, it never ceases to amaze us time and time again that when it is perceived that the economic climate is difficult, Franchise Central continues to develop and expand franchise business opportunities. In today’s business world, the positive news about business opportunities in Australia, especially from Franchise Central’s point of view, is that we are noticing strong increases in enquiries for our client’s franchise systems with excellent results in matching and recruiting quality franchisees. Franchise Central’s team of franchise experts celebrates 23 years as leading franchise consultants in Australia in 2013 and all this time our team of franchise advisors have been setting leading edge standards in Australian franchising – indeed, many of the franchisors we have developed
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and/or worked with have become household brand names. Celebrating this success, if you and/ or your business qualify to take the road of franchising, the rewards are plentiful. So if you are thinking of franchising your business or looking for a franchise business to invest in your future you should contact us for a free appraisal (valued at over $900).
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“The team at Franchise Central have been looking after the franchise side of my business since 2010 and I couldn’t be happier with the guidance and assistance they offer.” says Pole Princess franchisor, Anastacia Snelleksz who has just celebrated the opening of another Pole Princess franchise.
Franchise Central will go above and beyond to help you reach your goal.”
But it’s not just the franchisors who are seeing success. Thanks to Franchise Central, franchisees that have been successfully recruited by Franchise Central also continue to enjoy the fruits of their success in the franchise “Creating my business was businesses they have invested in. something that happened naturally for me but when it “Not only did Franchise Central came time to expand I really was provide support and help during an amateur in the business world. the recruitment process of I knew nothing about franchising buying into my Pole Princess business, but and the thought of going it alone franchised scared the life out of me. Everyone continued to do so after my Pole at Franchise Central have always Princess Cheltenham studio was been patient and gone that extra set up with great ideas on how mile to guide me and help grow to promote my new franchised the Pole Princess brand. I would business in the area. I feel very highly recommend Franchise comfortable knowing that the Central to any business owner team at Franchise Central is who is thinking of expanding readily available to assist.” says their brand because the team at Pole Princess franchisee, Jas Ang. www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE
We are noticing strong increases in enquiries for our client’s franchise systems with excellent results in matching and recruiting quality franchisees.
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ranchise magazine | feature article: grow your business in today’s business world
“If you are looking to buy into a in our business and continue to franchise, I highly recommend perform beyond the call of duty dealing with Franchise Central.” to far exceed our expectations.” says Gino Maniaci, co-franchisor Thanks to our clients and the quality franchisees we have of Vulcano Gelato. recruited for them, Franchise “Initially they worked closely Central continues to grow in with us to provide an excellent Australia and overseas. franchise system documentation “The team at Franchise Central package and we look forward are highly professional, results to a long and mutually fruitful driven and a joy to work with. association with the team at They made it their business to Franchise Central in expanding create a synergistic relationship the Vulcano Gelato franchise nationally and from the very start – the best network part is that they actually believe internationally.”
“If you are looking to franchise your business or require assistance in expanding your franchise network, we highly recommend Franchise Central without hesitation.” In this current economic climate it has become apparent that franchising your business and/ or buying a franchise continues to be the best way to grow in the business world.
Visit Franchise Central at www.FranchiseCentral.com.au to learn more about our services and www.FranchiseMagazineOnline.com.au to view the latest online issue of Franchise Magazine – and if you haven’t already, CLICK HERE to get your free subscription to Franchise Magazine and keep up to date with the latest going on in the franchising arena! If we can be of assistance, please contact Franchise Central on 1300 558 278 for a free no obligation discussion on your options or EMAIL US.
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ranchise magazine | feature article: growing customer leads
Family orbusiness Family Feud? >> Legendary comedian W.C. Fields is credited with By The Team at Taxnet
the line, “Never work with children or animals.” While a lot of people in television agree with him, in business there is an argument to say that you should never work with family! Family conflict is nothing new to business. German brothers Adolf and Rudolf Dassler founded a shoe company in a room of their mother’s house in the town of Herzogenaurach in 1924 but it soon became apparent that they couldn’t work together. The relationship soured during World War II when Rudolf was sent to the front and on his return he was picked up by U.S. soldiers and imprisoned for about a year. He reportedly was convinced that his imprisonment was orchestrated by his brother and they split in 1948. Rudolf
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Dassler founded the company that would become Puma while Adi formally registered the Adidas brand in 1949. The rivalry between the brothers even divided the town of Herzogenaurach, where Puma and Adidas still have factories on opposite sides of the river. Closer to home, the feud between Bob Jane and his son Rod recently hit the headlines again.
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Guidelines For Employing Family Members
Who will take over the reins of family business? Money might be the root of all evil but poor communication between generations can be cancerous in a family business. For example, a recent report suggests that many families simply assume that the children will take over the business. Of the 320 family owned businesses surveyed, 93% of the CEOs were intending to transfer ownership within the family and only 7% planned to hand over to outsiders (sell the business). The survey also found that 38% of the respondents intend to
transfer wealth within the next five years, 16% within 1-3 years and 16% didn’t know. Despite these statistics, only 39% have a succession plan in place. The dynamics of running a family business are very different to publicly owned businesses. For example, the average tenure of a CEO is six years while many family businesses have the same leaders for 20 or 25 years. In some cases this could mean the business could struggle to adapt to changes in technology and consumer behaviour.
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Family businesses face some unique challenges. The key recruitment method is often relationship driven rather than the normal candidate assessment process. Paying family a generous salary is tempting but non-family employees might get the message that nepotism pays better than performance. They might think that no matter how much effort they put in they will never be compensated as well as the family members. Eventually staff will leave because they recognise it is not a ‘level playing field’.
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ranchise magazine | feature article: growing customer leads
Some children feel obligated Prior to employing to join the business while some parents demand they join. This 1. Obtain impartial advice— refer to an advisory board can backfire because you can or consult with other family end up with a batch of managers business owners. who aren’t really interested in working in the business. Family 2. Have written guidelines and members can also become all staff, including family trapped in the business because members must sign and even if they hate their job, they adhere to them. know they can’t attract the same members must level of compensation in the open 3. Family have at least 2 years prior market. work experience before It’s natural for the next generation commencing work in the of family members to join the family business. business at a relatively young age. This early exposure will help them make an informed career decision but a job in the business shouldn’t be a birthright and we recommend you put some guidelines in place including:
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After the Hire 1. Performance Reviews need to be conducted regularly and honestly. 2. Insist on further training and education with a focus on enhancing the family member’s skills. 3. Have the courage to fire the family member if they are under performing. 4. Ask yourself if you sold your business today, who would the new owner keep and how much would they pay them?
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June 2013| 45
ranchise magazine | last words
lastyourwords say in franchising >> From the very first meeting with Mary and Nick, we knew we were in the right hands. The team at Franchise Central are highly professional, results driven and a joy to work with. They made it their business to create a synergistic relationship from the very start – the best part is that they actually believe in our business and continue to perform beyond the call of duty to far exceed our expectations. Initially they worked closely with us to provide an excellent franchise system documentation package. We look forward to a long and mutually fruitful association with the team at Franchise Central in expanding the Vulcano Gelato franchise network nationally and internationally. If you are looking to franchise your business or require assistance in expanding your franchise network, we highly recommend Franchise Central without hesitation.
- Gino and Josephine, Vulcano Gelato
I’ve always found Mary and Nick from Franchise Central extremely professional and trustworthy. They have been fabulous and instrumental for the success of several of my clients. Having worked closely with the team at Franchise Central since 2000 – I can honestly say that they are innovative, provide exceptional service, have a genuine interest in the success of both Franchisors and Franchisees and can tailor a franchise to your needs and experience as well as ensure you are involved in the right coaching and mentoring principles. Whether you are looking to franchise your business and/ or recruit Franchisees, I highly recommend Franchise Central.
- Jim Genes, Subject To Finance 46 | June 2013
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Franchising your business with Franchise Central... Nick and Mary have a sound knowledge of the industry. They are very professional and caring, with an attitude of excellence to service and detail. They are fun to work with and took the head ache out of franchising. We would highly recommend their services to prospective business owners, considering franchising their business. In my opinion, you won’t find anybody as good as Franchise Central – I say Franchise Central because in my opinion there aren’t many good sales and marketing people out there. Franchise Central offers everything that a Franchisor is looking for.
- Jan & Ross Sutherland, Dial a Concierge
- Stephen Raff, ACE Body Corporate Management
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June 2013 | 47
ranchise magazine | what’s on
what’s on? franchising events calendar >> June 2013
AUSTRALIA Reinvent Your Career Expo 1 - 2 June 2013 Melbourne Convention and Exhibition Centre Melbourne, Australia www.reinventyourcareer.com.au AUSTRALIA Franchising and Business Opportunities Expo 14 - 16 June 2013 Sydney Convention Exhibition Centre Sydney, Australia INDIA FRO 2013 - 62nd National Franchise & Retail Show 15 - 16 June 2013 Pride Hotel Ahmadabad, India BRAZIL ABF Franchising Expo 2013 15 - 18 June 2013 Expo Center Norte Sao Paulo, Brazil
INDIA FRO 2013 - 63rd National Franchise & Retail Show 29 - 30 June 2013 Taj Hotel Chandigarh, India
July 2013
MACAU Macao Franchise Expo 2013 12 - 14 July 2013 The Venetian Macao Resort Hotel Taipa, Macau INDIA FRO 2013 - 64th National Franchise & Retail Show 13 - 14 July 2013 Sun n’ Sand Hotel Pune, India AUSTRALIA Franchising and Business Opportunities Expo 20 - 21 July 2013 Brisbane Convention and Exhibition Centre Brisbane, Australia INDIA FRO 2013 - 65th National Franchise & Retail Show 27 - 28 July 2013 Clarks Avadh Hotel Lucknow, India
August 2013
UNITED STATES International Franchise Expo 20 - 22 June 2013 The Javits Center New York, USA
AUSTRALIA Franchising and Business Opportunities Expo 30 August - 1 September 2013 Melbourne Convention and Exhibition Centre Melbourne, Australia
UNITED KINGDOM The British Franchise Exhibition 21 - 22 June 2013 TBA Manchester, UK
INDIA FRO 2013 - 66th National Franchise & Retail Show 17 - 18 August 2013 Sayaji Hotel Indore, India
48 | June 2013
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September 2013
UNITED KINGDOM Franchise Opportunities Live 6 - 7 September 2013 TBA London, UK INDIA FRO 2013 - 67th National Franchise & Retail Show 7 - 8 September 2013 Nimhans Convention Centre Bangalore, India TURKEY Be My Dealer 11th Franchising & Brand Dealership Exhibition 12 - 15 September 2013 TBA Istanbul, Tur key
AUSTRALIA Reinvent Your Career Expo 21 - 22 September 2013 Royal Hall of Industries, Moore Park Sydney, Australia www.reinventyourcareer.com.au
October 2013
SINGAPORE Franchising & Licensing Asia 3 - 5 October 2013 TBA Singapore, Singapore
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UNITED KINGDOM The National Franchise Exhibition 4 - 5 October 2013 The National Exhibition Centre Birmingham, UK
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June 2013 | 49
ranchise magazine | about us
about franchise magazine online >> Franchise Magazine is published as a service to subscribers. We adhere to a strict privacy policy concerning all subscriber names on our database and will not disclose to any third party without written permission from subscribers. If you have any queries about our privacy policy or this magazine, please contact our editor. In the meantime, thank you and we trust you enjoyed this issue of FRANCHISE MAGAZINE!
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FRANCHISE MAGAZINE
Editor
Kylie Pekolj
Regular Contributors Mary James Nickolas James Kylie Pekolj Kerryn Marlow Graham Van Arkadie
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Disclaimer
Information published here has been compiled with due care and attention, but it does not claim to be exhaustive. Franchise Magazine cannot be held responsible for the content of external sites reached via a hyperlink from this site. We accept submissions from outside contributors, and while great care is taken, the author of the submitted article is responsible for what they write, and Franchise Magazine staff will not be liable for any loss or inaccurate information or any other omission or error by outside contributors. Letters to the editor should be sent electronically with the writer’s name, address, and daytime phone number to editor@franchisemagazineonline.com.au. The magazine reserves the right to edit submissions, which may be published or otherwise used in any medium. All submissions become the property of Franchise Magazine Online. This web magazine is provided for information only. It is not intended to replace a consultation with an appropriately qualified business professional. Franchise Magazine cannot accept responsibility for any loss, damage or injury that arises from the use of this web magazine. 50 | June 2013
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June 2013 | 51
in the next issue >> • in the spotlight: businesses new to franchising.. • franchise opportunities, events and more..
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