February - March 2012
Made in Australia - Pole Princess:
Combining fun, fitness and glamour to put the franchising world in a spin!
New franchise systems
- And why you should consider being a franchisee in one
The right franchisees
- The key ingredient to making a franchise a success. Here’s our crash course in where to find them
In the spotlight... The Gold Club, Vulcano Gelato, Sleepy’s and GJ Gardner Homes
Have you told your colleagues about Franchise Magazine?
ranchise magazine | Contents
What’s
in the mag... Regular Features A quick word
–– With Nick James
Made in Australia: Pole Princess –– Putting franchising into a spin!
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Franchises in the Spotlight Vulcano Gelato
–– Franchising has never tasted as good as this!
The Gold Club
–– A sparkling business opportunity
Sleepy’s
–– No such thing as ‘wrong side of the bed’ with Sleepy’s
GJ Gardner Homes –– Feel at home with this franchise
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Articles
Why you should consider joining a new franchise
–– Tried and tested or fresh and bursting with opportunities? Here’s why we think new franchise systems are a winner
A crash course in picking the right franchisees
–– Finding the right franchisees is cruitial to the success of your franchise, here’s how to get them!
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Hot off the Press Carpet Court
–– Takes on online shopping to spread its customer reach
Theobroma
–– Takes its food of the gods to Sydney and Brisbane
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Mortgage Choice
–– New Years tips for reducing loans
Wasabi Warriors
–– Begin their battle in Brisbane
The International Stage –– Franchising news from around the globe
The Business Corner Last Words
24
–– Your say about franchising
What’s on
–– Franchising events calendar
About Franchise Magazine
–– Contact information and more
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ranchise magazine | A Quick Word
A quick
word with Nick James
Welcome to another edition of Franchise Magazine! A new year, plenty of new years resolutions to complete and a new edition of Franchise Magazine to go with it and help with any of those franchising resolutions you might have made wether it be become a franchisee or find more franchisees for your franchise, we’ve got you both covered in this edition! For the franchisors, we’ve got everything you need to know about finding the right franchisees and for those thinking of becoming franchisees, we’ve got the low-down on joining new franchise systems and why they should not be dismissed when finding the right franchise to become a part of. On the cover, and in our Made in Australia feature this edition we have the fun, fit and glamorous Pole Princess franchise - who’d of thought fitness could be fun? That is exactly the reason why they’re putting everyone into a spin as they continue to soar in popularity! In the Spotlight this month, we take a closer look at Sleepy’s, The Gold Club, GJ Gardner Homes and Vulcano Gelato. Enjoy this edition of Franchise Magazine and until next month.. Keep safe and cheers for now, Nick and the team at Franchise Central.
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ranchise magazine | Hot off the Press
CARPET COURT LAUNCHES RUGS ONL As popularity grows for shopping online, Astralia’s largest flooring retailer, Carpet Court, has launched its own e-commerce facility on its website allowing customers to shop from its popular range of rugs from the comfort of their own home. Following the launch of its new look website in September of last year, Carpet Court has now made its debut rug range, the ArtiZEN Rug Collection, available for purchase online at carpetcourt.com.au, to make selecting and purchasing flooring solutions even easier for its customers. Carpet Court’s National Marketing Manager, Natasha Gallardo, said the website’s new e-commerce features represent the next phase of customer service for the brand and will help to create a more streamlined retail experience to complement the network’s in-store retail offering. “With the revamped website we wanted to provide users with a ‘one stop shop’ for flooring; a tool they could use to find inspiration, product information and advice online, and then easily locate their nearest store to complete the purchase. “The new e-commerce component closes the gap for those wanting to shop for smaller items such as rugs from the comfort of their own home and is the latest move in an ongoing strategy to make our products more accessible and create a more meaningful online experience for our customers.” Launched into stores in September, the ArtiZEN Rug Collection consists of beautifully handcrafted shag rugs in a selection of more than 50 colours, from tonal greys to a kaleidoscope of on-trend brights, to provide a quick and easy decorating solution. The move online also coincides with the introduction of two new colour stories to the ArtiZEN Rug Collection range – Brights and Moonlight – featuring 12 exciting new on-trend hues. 8 | Franchise Magazine February - March 2012
LINE TO BROADEN CUSTOMER REACH “We’re excited to be able to use the online rug store to bring products from the Carpet Court range closer to all Australians – including those in rural areas who can’t easily travel to one of our stores,” said Gallardo. “We look forward to continuing to grow the new channel and encourage our customers to look out for more exciting initiatives launching this year.” The new e-commerce service offers a quick and reliable nationwide delivery service to guarantee online shoppers receive their purchase within 15 days.
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ranchise magazine | Hot off the Press
Theobroma take their foods of th Theobroma
has announced they are launching in Queensland and Sydney this year and are currently looking for more franchisees to join the Chocolate revolution with great new sites planned to open in both regions. An Australian owned business, Theobroma currently has over 24 franchises In Australia, New Zealand and Malaysia, making them one of the world’s largest Chocolate Café and Bar Franchises. The Theobroma concept was initially developed by George, an architect and designer by trade, and Theo Racovalis an award winning craftsman and chocolate connoisseur, who saw the need for an alternative in the Australian market that they judged to be ‘coffee’d out’. Theo and George established a small boutique chocolate shop in 2004 called Sokolata based in Melbourne’s inner east suburb, Hawthorn of which later grew to become the much loved Theobroma. With Theo’s knowledge in premium chocolate, it was decided to fill the void in the market with a high quality Australian alternative. They studied the chocolate market in Europe in planning for the concept and visited chocolatiers from Belgium to assist the team with latest technologies in chocolate making. “We are extremely excited to finally be taking the brand to Queensland and Sydney,” said Theobroma Franchise and Operations Manager, Wayne Wright. “We see it as a great growth opportunity with a strong beverage and food market crying out to be for stimulated by a quality premium retailer” The Prefect Hot Chocolate will banish all memories of bedtime cocoa. Real Hot Chocolate is rich, complex and made with quality ingredients. “The world is starting to dream and wake up to the idea of a true Theobroma Hot Chocolate melting in their mouth”
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he gods to Queensland and Sydney Theobroma creates what can be described as an uplifting and powerful chocolate taste sensation. Chocolate devotees and even people who usually do not indulge are discovering this source of happiness, this mouthful of pleasure, the delight of the gods, served only at Theobroma Theobroma now has 4 concept models in their group and an expanded range of food and beverage with indulgent chocolate, cakes, slices, cookies and muffins as well as a variety of breakfast, lunch and evening options. Complimented with a wide variety of alcohol and non-alcoholic based indulgent beverages, ranging from the Theobroma Mud Slide to a light Fluffy Duck and don’t forget the irresistible chocolate retail products with delightful hand crafted coloured chocolate that re sure to impress. Theobroma is offering opportunities that are now available in Queensland and Sydney with the company also seeking expressions of interest in the international arena with large plans to expand the groups 4 concepts into the global market place in 2012. For more information on Theobroma franchises log on to www.Theobroma.com.au or email Wayne at Franchising@Theobroma.com.au
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ranchise magazine | Hot off the Press
Mortgage Choices new year’s tips for reducing loans Still feeling the pinch from the silly season? Becoming a better budgeter, wising up on spending and making the most of any savings can help borrowers master their mortgage and forget about any loans sooner, according to Australia’s largest independently-operated mortgage broker, Mortgage Choice.
Company spokesperson, Belinda Williamson said, “If your goal is to pay off your loan sooner, the beginning of the year is a great time to set new financial resolutions.” “Challenge yourself to ramp up your loan repayments by readjusting your budget and finding ways to make extra contributions to your mortgage. “Well thought-out saving, spending and loan repayment strategy decisions can help put you months or even years closer to living mortgage free. Keep in mind even small financial changes can have a big impact on how much interest you pay over the life of your loan and the length of your loan term.” Mortgage Choice offers these financial resolutions to help borrowers reduce their loan as quickly as possible:
Resolution 1. Become best buddies with your budget
If you don’t already have a budget, the New Year is the ideal time to start one. Ensure it factors in all your regular spending - home and/or other loans, utility bills, medical expenses, memberships, grocery bills, insurance costs, etc. Don’t forget to include funds for socialising treats. Be honest with your budget and refer to it each time you contemplate a new expense.
Resolution 2. Slash your cash limit
Consider ways to cut your daily spend. For instance, a daily caffeine hit at $4 per weekday equates to $80 per month. Did you know by making a coffee an everysecond-day spend and contributing $40 extra per month to your mortgage from day one (based on a $300,000 loan over 30 years at 7%) could reduce the total interest owed by around $31,000 and the loan term by almost 2 years? 14 | Franchise Magazine February - March 2012
Resolution 3. Review your home loan with a fine-toothed comb
There could be underutilised loan features costing you money or features worth refinancing for. Get to know your loan’s features. Your mortgage broker can help review your current loan and its features and identify any opportunities to shop around for something better suited to your goals.
Resolution 4. When rates fall, keep repaying more If your loan’s interest rate has recently fallen, consider keeping your repayments at the higher, pre-fall rate. For example, take a home loan of $300,000 at 7% over 30 years. If your rate reduces to 6.5% and you keep repaying your loan as if the interest rate was still 7%, you could shave approximately 4 years off your loan term and save around $60,000 in interest owed.
Resolution 5. Make the move from monthly to fortnightly
Switching your monthly repayment to fortnightly may make a significant difference to your loan term and the interest owed. There are 12 months and 26 fortnights in one calendar year; by paying fortnightly, you make the equivalent of 13 monthly repayments. The savings, based on a $300,000 loan at 7% equates to around $103,000 in interest and about 6 years and 6 months off the loan term. February - March 2012 Franchise Magazine | 15
ranchise magazine | Hot off the Press
Wasabi Warriors battle begins in Brisbane’s CBD There’s a new army in town, Wasabi Warriors launched their first store into the heart of Brisbane’s CBD taking the locals by storm and staying true to their cause to ‘eat good, do good, feel good’, honouring their commitment to the ocean, earth and animals. The Wasabi Warriors are a pack of five brothers; Ocean Warrior, Porky Warrior, Beefy Warrior, Chicken Warrior, and Veggie Warrior who only draw their swords to do good, and provide you with the freshest, and highest quality sushi that’s produced with the utmost dedication. With the well-respected Master Sushi Chef, Hideo Dekura on their side to help develop the menu, Wasabi Warriors are a cut above the rest when it comes to flavour, quality and freshness. “The sushi that I had the pleasure of eating for lunch was simply amazing. It was delicious and simply some of the nicest sushi I have ever tried” ” says Brisbane Blogger, Lolly Gobbles. Where possible, the Wasabi Warriors use sustainable, organic, free range and local ingredients, and their practices are seen through to biodegradable packaging and recycled materials used in store design. The Wasabi Warrior’s search continues for Warriors who can help them in areas they aren’t yet perfect. Keep your eyes peeled and ears open, because over the next few months the Wasabi Warriors will be hitting the streets of Brisbane, banging their Warriors drums, waving the Warrior Flag, handing out complementary platters to surrounding businesses to spread the word that Wasabi Warriors have arrived.. Do you have what it takes to be a Wasabi Warrior? Join the Wasabi Warriors at 289 Queen St for a sushi experience you won’t forget. 16 | Franchise Magazine February - March 2012
The opening of Wasabi Warriors flagship store in Brisbane’s CBD February - March 2012 Franchise Magazine | 17
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ranchise magazine | The International Stage Canada - The movers who care, Two men and a truck.. and a defibrillator
Removalist franchise, Two Men and a Truck are now equipped with a Mikey defibrillator and trainned staff as part of the ‘Mikey-on-board’ program, an initiative of The Mikey Network, a registered Canadian charity that is committed to helping people who experience Sudden Cardiac Arrest (SCA) get a second chance at life. Two Men and a Truck - Canada COO Dan Hopkins, “We hope we never have to use these Mikey’s, but when you consider the physical nature of moving, it makes sense to have defibrillators on our trucks, in case our movers or families involved in a move have a problem. And, there is always the possibility of someone going into sudden cardiac arrest walking down the street, or perhaps being in a car accident. So with our trucks on the road, we are now in a position to be able to respond should someone need help.”
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USA - Walmart finds inner beauty with Seva
Beauty Salon franchise, Seva has made a mutually beneficial partnership with Walmart which will see Seva salons open within Walmart stores as oposed to the traditional strip mall storefronts. Seva has opened 21 salons inside Walmart stores across eight US states and have plans to continue to grow through this ‘store-in-store’ method. “Now, we are looking for similar partnerships with other major discount department stores, cosmetic retail chains and airports to build our national footprint. It makes sense to place our high-demand service in a convenient setting where people by the thousands shop or travel everyday.” says Vas Maniatis, founder of Seva.
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New Zealand - Hell Pizza’s marketing too prickly for some
New Zealand pizza franchise has caused controversy with its marketing yet again after its latest promotional material, pens in the shape of syringes filled with fake blood, enscribed with “Hell, creating addicts since 1996” along its side caused upropar by the parents of a nine year old boy who won one of the pens.
Hell Pizza co-founder, Mr Davies said recently Hell delivered some pens to Wellington Hospital, where they proved so popular the hospital requested another box for staff. ‘’This particular campaign was directed at adult customers and has been received by them in the spirit it was intended. On this occasion, a pen was given by mistake to a child, and we’re sorry his parents were upset by it. However, as our Facebook supporters pointed out, doctorand-nurse role-play is a popular kids’ game, toy syringes are available at many toy stores, and the syringe contains mock blood, not drugs. ‘’Admittedly we’re no experts, but novelty pens aren’t known to cause drug use - though it can’t hurt for people to talk more about addiction,’’ Mr Davies said.
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ranchise magazine | Made in Australia
Made in
The Franchise Princess.. 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. In a span of just a few years, Pole Princess Franchisor, Anastacia has seen the Pole Princess business experience a phenomenal growth and currently celebrating the announcement of the next Pole Princess location to open in Cheltenham in March this year. 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.
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ranchise magazine | Made in Australia
Made in Getting to know you What inspired your business idea? I always loved dancing but was never allowed to dance as a child as my parents didn’t want it to lead to a career for me…. Woops sorry mum! So once I was old enough to start working I’d pay for my own dance classes on weekends which lead to my first job as a Ballroom instructor. After nearly 10 years of that and working for someone else I realised I wasn’t put on this earth to follow in others footsteps, but rather to create my own. So I researched pole dancing as a new form of dance Anastacia Snelleksz, making it big overseas and decided that was going to be my Pole Princess next step. I put a pole in my lounge, taught myself everything Franchisor I know and then set-up a business to teach it to other people. How did you know that franchising was right for your business and what ultimately influenced your decision? I created Pole Princess on my own and had very little guidance from outside sources. In the beginning I didn’t want to tell my family because I didn’t want them to think I was a stripper so even though my whole family are very business orientated I didn’t turn to them just in case they got the wrong idea. I had no partner and no friends in business of their own so I basically went into this blindfolded. Somehow I got it right and Pole Princess started to grow rapidly (phew!). I opened a few locations before realising that what I was in possession of had potential to grow so much bigger than what I could handle on my own. I tossed and turned about franchising for about a year before finally making the call to Franchise Central. They looked into my business model and agreed I had a franchisable business. The rest is history! 26 | Franchise Magazine February - March 2012
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ranchise magazine | Made in Australia
Made in
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Australia Getting down to business How long did it take to develop and set up your business and how did you begin promotion? When I first started my business it grew at a very rapid rate. I thought I had it all set back then and people would say to me that if a business can survive for 5 years then it’s a sustainable business. I didn’t think I needed 5 years, I thought I had it right from the start. Now that Pole Princess is 5 ½ years old I look back and think about all the changes it’s been through and I realise those people are right. A business really isn’t fully developed until it’s been around 5 years and seen all the ups and downs and only then if it still comes out on top you know you have really made it. My first studio was built on a very tight budget as I really did not have much savings and no bank would consider a “pole dancing” business back then. It took me about 2 months to actually build and all I could afford promotion-wise was a generic text message that I sent out to my entire contacts list on my phone which I sent out the day I signed my lease. Within a week I had all my classes for the first 2 months of opening fully booked out and from then on a lot of the promotion was word of mouth. Since then I’ve learned that having a great looking and easy to navigate website is priceless. What was the very first task you had to do as franchisor? Create an operations manual – drain of my life!!! When running a business you just do what you’ve got to do and you know what needs to be done but franchising means you have to write out word for word everything you do in order to operate this business so that someone else can do it in their own location and be successful at it. I’ve been franchising for a year now and already have created 3 versions of the operations manual! February - March 2012 Franchise Magazine | 29
ranchise magazine | Made in Australia
Made in The business Is there room for more franchisees in your current market? If so, what areas? My business type is still relatively new and there’s loads of potential. My website gets 400 visits a day so there’s definitely a lot of interest in what we do. We currently have 4 locations in Melbourne and there’s definitely potential for many more. I don’t like to give away what areas I feel would work but there are definitely at least 2 parts of Melbourne alone that are pole deprived!
Running of the business Who supported you throughout your journey of franchising your business? I made a lot of the decisions on my own initially but once I took the step to start looking for someone to franchise my business, I decided to go with Franchise Central, they really went above and beyond to help me with whatever questions I had. I also met with my accountant a few times and still do when deciding what to do next. You need to have people in business you can trust so whoever you talk to make sure you know them well!!! What has been the most challenging aspect of being a franchisor? How did you overcome this? In the beginning I treated my business like it was my child and was very protective of it so handing it over to the first franchisee was like watching your child move out of home! Emotionally it was very difficult and I wanted everything done my way. Now I’ve learned that franchisee’s have just as much passion for the brand to succeed and can have some really great ideas to grow the brand. I thoroughly enjoy my franchise meetings now and hearing franchisee’s ideas & look forward to them every month. Nick from Franchise Central really helped me understand the process I was going through at the time even though I didn’t realise what I was doing!
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ranchise magazine | Made in Australia
Made in Franchising your business What would you say are the benefits of having franchised your business? I don’t feel so alone now and feel I have people around me with the same passion for Pole Princess that I have. They help me think outside the box and bring ideas to the table that I may not have thought of myself and they get excited when I share potential ideas with them which encourages me to work hard for them and keep bringing new things to the brand to keep customers interested. I also feel that if I’m unsure of potential ideas I now have someone to discuss them with who will help me make a decision as to whether it’s the right thing for Pole Princess or not. The reassurance they give me is very motivating.
Franchisees for your business Describe what your ideal franchisee would be like? Their personality traits, experience and attributes etc. My ideal franchisee would understand that in order to succeed in their own location they need to work ON the business and not IN the business. Teaching classes is not what will grow your location as there are many people who can do that part for you whilst you take care of the admin/marketing which is essential to your success. The ideal person would understand that their role is to do the things that they can’t employ someone to do for them. Pole Princess has a very homely feel to it when you step into any location so the right franchisee needs to be friendly, welcoming and accommodating. What initial training and ongoing support do you provide your franchisees? Training is pretty critical to ensure any new franchisee can capably run their own franchise. Initially we start with 4-weeks training in everything from administration to teaching classes. Franchisees are also encouraged to spend as much time as they can at our other locations to just oversee how everything operates and ask as many questions as possible. From there we have a group training on a term basis to learn the new choreography for each following term. 32 | Franchise Magazine February - March 2012
Australia
Get your career into a sexy spin!
Click Here
to enquire about a Pole Princess franchise opportunity.
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ranchise magazine | Franchise Spotlight
Franchising has
never tasted so sweet! In 2008, dynamic husband and wife team Gino Maniaci
and Josephine Colombo opened the first Vulcano Gelato in Melbourne’s destinational suburb of Rye to extraordinary results. A seasonal destination; in the warmer months it is nothing to witness lines extending 100 metres long of families, lovers, the young and the old alike waiting patiently... willingly... and in sheer anticipation for the Vulcano Gelato experience!
Vulcano Gelato is all about lifestyle – funky, colourful, fun, easy and people oriented. Combine this with a delectable product range that is made fresh daily and universally appreciated by young and old alike and you have the mouth watering recipe for a tantalising franchise opportunity. Vulcano Gelato offers a truly unique and authentic Italian gelato that is made fresh daily on premises using a secret recipe established in 1960, pre-packaged and imported exclusively for Vulcano Gelato from Vulcano Sicily, Italy. Of course, a multitude of other additions from chocolate to pistachios also allows for over 45 mouth-watering flavour selections – the pinnacle being the secret recipe to the iconic and signature ‘Vulcano’ flavour which guarantees an unsurpassable ‘eruption of flavour’ that dances on the tongue with a wicked tempo. Other titillating treat sensations made fresh daily to specific secret recipes including a delectable selection of granita, brioche con gelato, coffee & cocoa concoctions, creamy
Stop drooling and get your fix! CLICK HERE to find out how you can sink yo 36 | Franchise Magazine February - March 2012
G E
L A
T
O
dreamy considerations (like their devilish panna), take home packs, gelato cakes and mini choc tops. The fast food industry in Australia continues to grow at a strong rate so there has never been a better time to expand the Vulcano Gelato success than now. Modern times bring with it a strong drive toward healthy food alternatives with new products and players continually entering the market. True to form, Vulcano Gelato has brought together the finest ingredients – people, professionalism, market research, products, customer service, store design, proven state-of-the-art systems and documentation and corporate branding – and packaged them up as a cool and fresh franchise opportunity set for national and international expansion. Ideal for the easy going entrepreneur seeking a high profit cash basis business minus the headaches (ok, we’re not responsible for any ‘brain freezes’ due to over indulgence), the Vulcano Gelato franchise opportunity is presented to you with ‘amore’ blending the authentic taste of traditional Italy and modern business systems.
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WHY YOU SHOULD CONSIDER JOINING A NEW FRANCHISE SYSTEM
Is there anything more exciting than a new idea, a great
By Nick James, Franchise Central
new product, or a unique way of performing a valuable service? Many new franchise opportunities fit this definition. They’re new, exciting, and innovative. They’re very attractive, and you think that they will be equally attractive to their potential customer base. However, should you spend a significant portion of your life savings to join a young franchise system that is hoping for, and betting on, the ultimate success of its great new idea? In the short answer, it’s a safer bet than putting your life savings in to your own build-from-nothing, doing it on your own start up, those hard yards are already done! So yes, and here’s why.. The truth about all new franchise systems, like all other franchise systems before them is that they are already proven to work unlike a brand new business that you build from the ground up, those hard yards have already been done for you and before each of these businesses started franchising each one of them has operated with success at their flagship site or territory for at least 12 months before franchising and some of these businesses have even set up multiple sites or territories prior to franchising, proving further that their business does infact work successfully as a multiple unit business and in multiple markets! Going in to business is not about sticking to the boundaries of your comfort zone, as no one would venture into business if sticking to their comfort zone was a priority. The beauty of a franchise however is that the franchisor has already pushed these comfort zone boundaries prior to your involvement
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in the franchise making getting in to business for your self a far more comfortable journey than if you were to go and start your own independant business by yourself and when it comes to new franchise systems, the beauty of them is that because the franchise is still young and small in size, you will get nurtured and helped along your journey even more so as you do not have to compete against other franchisees for the franchisors attention. Now that’s a real bonus! But like so many things in life, there is no one correct answer if a new or older franchise system is the one for you. Let’s look at the facts and the truth behind some franchising myths around new vs. old franchise systems: 1. MYTH: Younger franchise systems have a greater risk than a more established franchise system. This is simply not the case, the success of the franchise system comes down to having the right franchisees and documentation in place. 2. FACT: Young systems offer ground-floor opportunities and the chance to cherry pick locations or territories in your market. Being one of the first franchisees in a franchise system can often come with some fantastic benefits including a wider choice of territories. Some larger franchises preselect where they want their territories to be and find the franchisee to suit that territory instead.
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ranchise magazine | Article 3. FACT: Young systems, which go on to succeed, ultimately offer a much greater financial return to the original franchise owners. As a rule of thumb, the better the brand is known, the more they’ll charge for the franchise rights. You will pay a lot more for a McDonald’s franchise than a lesser known franchise of a simillar nature just as you would have paid less for a McDonald’s franchise when they weren’t such a large global brand, you are paying for the name and the bigger it is, the more it costs. Newer franchise systems often have lower fees to attract new franchisees, if you’re one of the first franchisees in a new franchise system, you’ll be laughing when the brand has taken off and the franchise fees have increased! 4. FACT: You can play an instrumental part in the growth of a young system. The smaller the franchise system generally the more say you will be able to have in the growth of a business, your ideas heard and possibly integrated into the system. Say you were a franchisee at a fast food outlet and you had a fantastic idea for a new burger, in a small franchise system your ideas would get heard and possibly implemented, but if that franchise system was something larger, like a McDonald’s, good chance your burger idea won’t ever get heard, this can often be the same case for larger scale ideas and input into the growth of the franchise system you are a part of. So if you are an ideas person, you will probably feel more at home with a new franchise system than one that is more established. Convinced a new franchise system is not such a scary thought as first perceived? When looking to become part of a new franchise system, like any long established franchise system, there are always a few important things to consider. 40 | Franchise Magazine February - March 2012
A GOOD CONCEPT
When a franchisor starts his or her new business, they hope to enter the business battle by identifying a market niche that can be exploited. He or she needs to find some segment of the marketplace that isn’t being served sufficiently, or sufficiently well. The unique way this new franchise company handles its niche will be the deciding factor in its success - at least the initial success that will enable it to at least reach the greater challenges that will lie ahead as it matures. It has to “build a better mouse trap” as the old saying goes. There will have to be a reason why people will choose to utilise the system. You must make sure that any system you consider becoming a part of has this “better mouse trap” as part of its reason for being in business.
GOOD SYSTEMS
When you purchase a franchise, you should be buying systems that work and work now. They should be clearly written down in easy to read manuals and taught to you in detail during training so that your business takes off smoothly without you making costly errors. In the era of cyberspace, you should also look to see whether your franchisor is using up-to-date technology. We all know about the Internet, and your franchisor should almost certainly have a strong web site.
SUCCESSFUL PROTOTYPES LOCATIONS Before you join a new franchise system, you should be sure that others have already demonstrated that it works. If the franchisor hasn’t opened and successfully run at least one prototype (and preferably several prototypes) there is simply no way that you can be certain that the system is proven and that it works.
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MONEY
It is generally agreed that the number one reason that businesses fail is that they run out of money before they can establish themselves in the marketplace. Your franchisor must be able to tell you (within a range) how much you will need for the equipment, construction, and other hard costs. They should also be able to tell you how much money you will need for working capital until you break even. This will be given to you in a Disclosure Document, the format of which is laid down by Federal Government law.
DEDICATED MANAGEMENT TEAM
Many young franchises may fail in their first five years of business. Often, it is because there weren’t enough experienced management people in the company to keep the system expanding and meeting the challenges its competitors will throw at them. The cash flow of a young company is often highly restricted, but the need for highly paid experts is substantial, so there can be some real problems that will occur if the system you become part of doesn’t have adequate internal staffing. It can cost a lot of money to give new franchisees the service they need and not unreasonably expect. The range of expert services required is lengthy - here are just a few: • • • •
Legal Marketing and promotions Training and staff developments Accounting and budgeting
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• • • • •
Franchise sales Real estate or site selection Construction Franchise owner support Product purchasing and new product development
These all need to be handled and handled well, and someone has to be there to do the jobs that need to be done. Most wise new franchise groups will use a few generally widely experienced staff and supplement them with consultants for major problems. In summary, do your homework very carefully, and get expert advice if you need it, from your accountant, solicitor and a franchising expert. Consider most of all, will you enjoy the challenge of a ground floor opportunity? Once you make your mind up to go ahead, give it everything you’ve got and work closely with your new franchisor to build your new business together.
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ranchise magazine | Franchise Spotlight
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.
CLICK HERE to learn more about your own go 46 | Franchise Magazine February - March 2012
ULL TIME OR PART TIME The future is bright with The Gold Club!
olden business opportunity with The Gold Club February - March 2012 Franchise Magazine | 47
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ranchise magazine | Article
A CRASH COURSE IN PICKING THE RIGHT FRANCHISEES
Getting the right people as franchisees is an exacting
By Nick James, Franchise Central
task. If things aren’t done ‘just right’, recruiting can be a long and difficult process - and initial errors can turn round and bite you further down the track but pick the right franchisees the first time around and you’re bound for success! It all sounds a little bit overwhelming doesn’t it? How do you know they’re the right one for the job? This is a bigger task than finding the right employees, you can’t ‘fire’ them if you find out later they’re not cut out to be a franchisee, they and just because they have the money to invest in your franchise system, doesn’t make them the right franchisee for you. Let’s break it down to the key factors you should be taking in to consideration and putting in to place when going through the recruitment process to find the ideal franchisees:
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“Every potential franchisee is different and just because they have the money to invest in a franchise, does not mean they are the right franchisee for your franchise - don’t fall in to this trap. It’s quality not quantity that will make your franchise a success”
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ranchise magazine | Article
Ideal Profile
Carefully build up a profile of the ‘ideal’ franchisee. Profiles differ enormously from franchise to franchise, so great effort must go into determining the mixture of personality traits, attitudes, habits, skills and competencies that your particular franchisees will need. Take time to list out what pre-requisits your ideal franchisee needs to successfully run his or her own franchise for your particular business. Ask yourself, are there any particular skills they need prior or can they be learnt? Do they need people skills? Management skills? What kind of personality to they hold, what would their priorities in life be? Once you know who you are looking for, you will know better where to look.
Recruiting Strategy
Determine where and how fast you want to recruit. Do you want to expand from a central point, or do you want to secure franchisees in strategic location first then fill in the gaps later? How many new franchisees can you support at a time?
Documentation
Your documents must befit your company’s image and contain well thought out information to attract quality prospects and paint a true picture of the opportunity. Failure to do this may expose the franchisor to future liability. It is important to have specific documents for each stage of the process. You might have an initial summary of the opportunity, a more detailed overview, a video or audio tape, a franchisee questionnaire, a disclosure document and various other documents. 52 | Franchise Magazine February - March 2012
Advertising Budget
This is an area that many franchisors tend to scrimp on. Remember that in the long run, recruiting is a numbers game. Over a period of time, dollars invested = results. The media you use should target your specific audience. Apart from specialist media and general media (daily and suburban newspapers, trade journals, TV, radio and direct mail), consider networking amongst your staff, suppliers and customers. Make the opportunity a feature on your web site. The copy in your advertisement is important in generating the right response. An attention-grabbing headline is essential, as is copy that creates the desire in the reader to learn more. Different publications may require different advert. Professional assistance with advert writing, layout and media placement can make a big difference.
Process
All prospective applicants must be subject to the same recruitment process and receive the same level of information at the same stages of the process. For your own protection, keep detailed notes of all conversations, enquiries and the answer. Develop a comprehensive assessment form so that accurate (and comparative) conclusions can be drawn. Consider using psychological assessment techniques and professional recruiters to help you get it right. And use what you learn to help develop an appropriate training programme which addresses each new franchisee’s strengths and weaknesses. It will pay you many times over to get it right.
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ranchise magazine | Franchise Spotlight
This franchise will help you g the right side of the bed every And here is just a few ways is which we do it..
• Sleepy’s the Mattress Experts started 2001. Since this time Sleepy’s has gro • Sleepy’s has become a major force in mattress retailing in Australia with an
• The senior management of Directors at Sleepy’s have over 40 years of e They really know and understand what it takes to run a successful bedding b simple and was planned especially this way.
• Sleepy’s management are strongly committed to the Franchising principle w support and benefits to their franchisees; that remain at all times the key el
• Sleepy’s offers the opportunity for you to work for yourself, driving your own
• You will be part of a secure, stable and growing group, enjoying the support determination to succeed.
CLICK HERE to find out more about a Slee 56 | Franchise Magazine February - March 2012
get out of y morning!
own to 40 stores, nationally. annual turnover of $30+ million.
experience in the bedding industry. business. The Sleepy’s model is very
with the vision to provide maximum lement of the business.
n business and realising the rewards.
t of an experienced team that has the
epy’s franchise opportunity! February - March 2012 Franchise Magazine | 57
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ranchise magazine | Franchise Spotlight
Welcome home to a comfortable future! Your Building Franchising Opportunity with over 25,000 homes worth of experience G.J. Gardner Homes originated back in 1983 on the Sunshine Coast, when Greg Gardner realised the need for building quality homes on time and on budget. Greg grew the company to eight regional offices with 65 office staff and 65 sales staff, building as many as 1000 custom homes a year. G.J. Gardner Homes traded successfully with an established reputation for great value & quality. On this basis, Greg made the decision to turn G.J. Gardner Homes into a building franchise, as a means to give his key people a share of the business. The first G.J. Gardner Homes building franchise commenced operations in May 1995. Today, there are currently over 85 G.J. Gardner Homes building franchises operating throughout Australia and New Zealand, Germany, South Africa and America, supported by 10 Master Franchises. “I put most of my success down to my sales team being able to complete quotes within 24 hours, and being super organised which allowed for eight week construction times. Also, it comes down to giving the customers what they wanted, as opposed to most builders that took two to three weeks to produce a quote, 16 weeks to build, and told customers what they should have�. - Greg Gardner
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Builders, do you want... • To put down the tools & drive a profitable building company? • To benefit from joining forces with a well marketed brand that is leading the way of the future in building? • A proven building management system capable of controlling 50+ homes per year? • A company profit in excess of $500,000 a year? • A viable asset to sell? • More time and more toys?
Builders, have you had enough of... • Spending hours quoting jobs & not getting them? • Clients & subcontractors ringing you 24 hours a day, 7 days a week? • Finding what you missed costing only after you started the job? • Maintenance haunting you from past jobs? • Your already tight margins being eroded by complex details? • Being strung out with retentions? • Having a great reputation but nothing to sell when you retire?
CLICK HERE to find out more about a G.J. Gardner Homes franchise opportunity of your own with Franchise Central February - March 2012 Franchise Magazine | 61
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ranchise magazine | What’s On
What’s on
in the world of franchising...
March 2012
MEXICO Feria Internacional De Franquicias 1 - 3 March 2012 Mexico City, Mexico GREECE KEM International Franchise Exhibition 2 - 5 March 2012 Athens, Greece
BELGIUM Franchising & Partnership 2012 28 - 29 March 2012 Brussels, Belgium
April 2012
USA International Franchise Expo 1 - 3 April 2012 Washington, USA
UNITED KINGDOM British & International Franchise 16 - 17 March 2012 London, United Kingdom
SPAIN Expofranquicia 19 - 21 April 2012 Madrid, Spain
FRANCE Franchise Expo Paris 18 - 21 March 2012 Paris, France
IRELAND Ulster Bank Irish Franchise Association Expo & Awards 2012 27 - 28 April 2012 Dublin, Ireland
AUSTRALIA Franchising and Business Opportunities Expo 23 - 25 March 2012 Sydney, Australia
AUSTRALIA Reinvent Your Career Expo 24 - 25 March 2012 Brisbane, Australia
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May 2012
UNITED KINGDOM British Franchise Exhibition 2 May 2012 Glasgow, United Kingdom MEXICO Mexico Franchise Fair 2 -4 May 2012 Mexico City, Mexico PORTUGAL ExpoFranchise 11 - 13 May 2012 Lisbon, Portugal
AUSTRALIA Franchising and Business Opportunities Expo 26 - 27 May 2012 Perth, Australia
June 2012
September 2012
UNITED KINGDOM Franchise Opportunities Live 2012 7 - 8 September 2012 London, United Kingdom
UNITED KINGDOM The British Franchise Exhibition 8 - 9 June 2012 Manchester, United Kingdom USA The 2012 International Franchise Expo 15 - 17 June 2012 New York, USA
AUSTRALIA Reinvent Your Career Expo 16 - 17 March 2012 Melbourne, Australia
July 2012
AUSTRALIA Franchise Expo & Business Opportunities 21 - 22 July 2012 Brisbane, Australia
August 2012
AUSTRALIA Franchise Expo & Business Opportunities 17 - 19 August 2012 Melbourne, Australia
AUSTRALIA Reinvent Your Career Expo 8 - 9 September 2012 Sydney, Australia
Organising a franchising event? Contact us at editor@franchisemagazineonline.com.au
by clicking here to find out how to get your event listed in our magazine!
Or download our media kit from www.FranchiseMagazineOnline.com.au February - March 2012 Franchise Magazine | 65
ranchise magazine | Last Words From the very first meeting with Nick and Mary, 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 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.
- Jan & Ross Sutherland, Dial a Concierge 66 | Franchise Magazine February - March 2012
Want to have your own say? CLICK HERE to email us at: FMO@FranchiseMagazineOnline.com.au
Last
words...
“
Franchising with
franchise
central
'bringing the best together '
”
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.
- Stephen Raff, ACE Body Corporate Management
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ranchise magazine | About Us
About us
Publisher
FRANCHISE MAGAZINE
Editor
Kylie Pekolj
Regular Contributors Mary James Nickolas James Kylie Pekolj Graham Van Arkadie Rana Chuon Ratt Sao
Digital Magazine Created by
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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!
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. 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.
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In the next issue of Franchise Magazine... Franchises in the Spotlight: MyBotique, The Arts Emporium, King of Knives and more!
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