Franchise Magazine (June-July 2012)

June - July 2012

Made in Australia: Alloy Motor Accessories

- We hit the road with a true blue, tough Aussie franchise

Selling franchises - What happens when

it’s the franchisee who wants to do the selling

Did you hear?

- Word of mouth for B2B. Get your business talking!

In the spotlight...

Pole Princess Energy Leaks The Gold Club The Arts Emporium

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

22 The International Stage

Franchising news from around the globe

28 Made in Australia Alloy Motor Accessories

Features and Articles 24 International Expos

Vietnam International Shop + Franchise 2012

42 Selling Franchises

When the franchisee wants to sell

52 Did you Hear?

Word of Mouth for B2B

Business Corner 56 Last Words

Your say on franchising

58 What’s On?

Franchising Events Calendar

60 About Franchise Magazine Contact information and more

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Franchises in the Spotlight 38 Pole Princess Putting the fitness industry in a spin

46 The Arts Emporium

A creative franchise opportunity

50 Energy Leaks

A green energy franchise

56 The Gold Club

A golden mobile business opportunity

Hot off the Press 06 King of Knives

The king still has the upper hand

08 Cold Rock

Raise funds for Alannah and Madeline Foundation

12 Ready Steady Go Kids Expands to teach more kids

14 Wasabi Warriors

Wasabi army grows from Sydney to Adelaide

16 Theobroma

Sweet Success with international expansion

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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 few changes around here again? Last edition we changed the way in which you can view and share Franchise Magazine online and to celebrate this time around we decided to update our look and make everything bigger so we can fit even more in! Don’t forget to let us know what you think about our new look and size, we love hearing back from our readers!

In this edition, we take a look at selling franchises but not in the way most of us know, what happens when it’s the franchisee who wants to sell?

In the wake of the social media world the art of word of mouth seemed to get lost so in this issue we revisit the power of word of mouth and how to take advantage of it for your business.

Also in this edition of Franchise Magazine we have put Pole Princess, The Gold Club, Energy Leaks and The Arts Emporium all into the spotlight and in our Made in Australia feature we catch up with Steve of Alloy Motor Accessories.

We hope you enjoy the change to Franchise Magazine as much as we do and we look forward to further growing and improving Franchise Magazine so as always...

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

whenthetimes are tough king still has the upper hand >> According

to Daniel Hockberg of King of Knives whilst times in the business world may seem tough, now is the best time to buy that franchise you’ve been eyeing off and a King of Knives franchise especially has all the ingredients for success in the current retail market conditions, here’s what Mr. Hocking had to say,

strongly. King of Knives, particularly through its “own brand” program, is doing just these things.

4.

The Kitchen and home cooking, propelled by lifestyle programs, is all the rage, and we are positioned well to take advantage of this.

What a difference a month makes! It’s not been easy out there and the news is not getting any better.

5.

When times are tough, people tend to stay at home and entertain rather than eat out.

They tend to spend more on the kitchen as a result. Again, King of Knives will benefit from this trend.

I guess it makes one think twice about buying into a retail business. But, before you make any decisions, have a think about this:

6.

Those with jobs are well aware of the changes taking place in the work force and are looking for greater stability in their own business.

store! How’s that for confidence!

We are currently running an incentive for new franchisees to get on board NOW: Promotional Offer: The first 3 stores sold in 2012 will each be eligible to receive $20,000 free stock (Conditions Apply). If you sell this stock at full price, this would be the equivalent of approximately $40,000 in your pocket!

We want you to be a part of the King of Knives Success Story!

If you wish to join King of Knives, contact Nick James on: 1300 558 278 or franchise@franchisecentral.com.au

7.

Whilst the internet is a negative for some franchise companies who are struggling to know how to introduce it without affecting their relationship with franchisees, King of Knives has agreed with franchisees to share the spoils equally, ensuring all 2.

The retail sectors well will enjoy the growth in sales documented woes have meant that the internet will bring! that the rental environment has King of Knives is never been softer, and new deals 8. committed to growing despite are to our advantage. the gloom. This financial year we 3.

Customers are supporting have opened Tea Tree Plaza in retailers who are prepared to South Australia, Fountain Gate introduce new product, try new (Pictured) in Victoria, Parramatta idea’s, and have the margin in NSW, and we are about to in their product to promote open our second Townsville 1.

Now is the time to buy: You don’t buy real estate when the market is high, you buy when it is down! Businesses for sale, often for genuine reasons, are priced very well at the moment.

It is a “buyers” market.

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ranchise magazine | hot off the press

Cold R

ock Ice Creamery franc

s e e s i h

d a M d n a h a n n a The Al

mash up a cool $25k for

Cold

Rock Ice Creamery has showed its support for The Alannah and Madeline Foundation by making a $25,000 donation to the South Melbourne-based charity on behalf of its franchisees.

The national ice cream retailer has long admired the work conducted by the charity to keep children safe from violence and decided to run an in-store fundraiser through the sale of its Cold Rock calendars.

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Sold in Cold Rock stores nationally, the RRP$5 calendars contained vouchers and discounts for customers to use in store with the proceeds donated to the Foundation.

“We are very proud to be supporting such a wonderful cause that works to protect children from violence and its effects.”

The Cold Rock CEO officially presented The Alannah and Madeline Foundation’s CEO Dr Judith Slocombe with the cheque at the charity’s headquarters this week.

“We saw what an important role The Alannah and Madeline Foundation has in the lives of Australian children and we wanted to help, so we jumped straight into it by getting all Cold “We would like to extend Rock stores on board to sell the our thanks to Cold Rock for calendars,” says Cold Rock CEO generously donating $25,000 Stan Gordon. towards The Alannah and

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n o i t a d n u o F e n i l e d Madeline Foundation,” says Dr Slocombe. “The funds raised will be used to support our Children Ahead program, which provides intensive support for children to help them recover from traumatic events or violent circumstances.”

Children Ahead provides holistic support essential to children’s recovery. This support can make a significant difference in a child’s journey to recovery.

The Foundation was set up in memory of Alannah and Madeline Mikac, aged six and three, who were tragically killed with their mother and 32 others at Port Arthur in Tasmania on 28 April 1996.

Since its creation the charity has cared for children who have experienced or witnessed violence, and runs programs which aim to prevent violence and bullying in the lives of children.

For further information about The Alannah and Madeline Foundation visit www.amf.org.au.

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ranchise magazine | hot off the press

readysteadyexpand!

Ready Steady Go Kids franchisee extends reach to teach more kids sport Peter Crevani is certainly staying true to his Peter and his team currently run ambition to encourage more youngsters into sport classes in the Ashfield, Breakfast Point, Fivedock and Ryde areas with news that he’s expanding his list of Ready and is looking forward to offering the popular Ready Steady Go Kids Steady Go Kids franchises to include Balmain. program to families in Balmain, commencing in Term 3.

With his study for a Bachelor of Education from the Australian College of Physical Education and a background that includes playing professional football (soccer) in Italy, Peter is well aware of the program’s benefits.

His infectious passion has no doubt played a role in the success of his venture to date.

“It’s been a rapidly growing business from the start,” said Peter. “The number of kids coming to our classes continues to grow term after term – there’s a real demand for Ready Steady Go Kids because it really does offer fantastic benefits.”

The program, run at over 70 locations, both nationally and internationally, is physio designed and specifically tailored to children aged 2.5 – 6 years. It covers the fundamentals of 10 different sports while developing age-appropriate motor skills.

Kids also learn about the concept of sportsmanship by taking turns, playing by the rules and cooperating with their peers.

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“I love seeing the beaming smiles on the children’s faces, watching them overcome obstacles and learning new skills,” said Peter.

“I have many proud moments not only as a franchisee but also as a sports instructor seeing just how much the children can achieve with the right guidance and encouragement.”

While Peter is excited at the prospect of expanding Ready Steady Go Kids into even more territories, he is committed to ensuring an “exceptional standard of quality in every location, at every session.”

“Peter’s enthusiasm and commitment to the program and the kids is fantastic,” Ready Steady Go Kids Director, Stuart Derbyshire said. “He’s a great contributor to the company’s vision of helping children become more healthy and active.”

Ready Steady Go Kids’ Balmain classes will be held on Friday mornings (at a location to be advised) and on Sundays from 9.00am – 12 noon at The Sydney Secondary College, Balmain.

Peter invites families living in and around the Balmain area to attend a free trial session on Saturday 7 or Sunday 15 July from 10.00am – 12 noon at The Sydney Secondary College, Balmain.

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ranchise magazine | hot off the press

The Wasabi Warrior army grows from Sydney to Adelaide Business

Warrior Eddy from Wasabi Warriors Sydney was working for Gloria Jeans and had been dreaming of opening his own business.

The only problem was the up-front capital to get started.

Eddy came across the Wasabi Warriors Manage to Own program at www.wasabiwarriors.com.au, made a few enquiries, and after meeting with the Wasabi Warriors team, finally got the opportunity to kiss his boss goodbye.

“We opened to a massive first week! The support from the Pacific Retail Management Team has been invaluable and I simply wouldn’t have been able to do it without them and add to this, I am a Manage to Own Business Warrior also - the opportunity I’ve got here is fantastic!” Says Business Warrior Eddy.

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Do you have what it takes to be a Business Warrior?

Wasabi Warriors are seeking Business Warriors interested in running their own business in Adelaide.

All of our Business Warriors are passionate about the sustainability of food and the wellbeing of the planet, which is why we all live by a bushido of “eat good, do good, feel good”. Through our “Manage to Own Program” Wasabi Warriors are enabling budding entrepreneurs to follow their dreams and encouraging them to start running their own businesses sooner rather than later.

“Research shows us, that younger entrepreneurs are missing out on the opportunity to own and run their own business, because they simply don’t have the capital to start up their own business” says Group Managing Director, Nicola Mills.

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Targeted at talented, energetic individuals with the If you feel you have what it takes to be a Business drive and aspiration to operate their own business, Warrior with the drive and talent to operate your the Manage to Own Program provides: own business, Wasabi Warriors are now seeking Business Warriors who want to add a heartbeat to • Full on the job training and support their profits with a ready-to-go opportunity in the • Business Warriors pay for the business from Elizabeth Shopping Centre, Adelaide. the profits they make, instead of a large upfront capital investment.

• Business Warriors only need a 20% deposit to get them started.

• Ongoing training to constantly improve business abilities and business profits.

Daring to be different and with the well-respected Master Sushi Chef, Hideo Dekura on-side, The Wasabi Warriors are a cut above the rest when it comes to flavour, quality and freshness, producing sushi with the utmost dedication, honour and respect.

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ranchise magazine | hot off the press

Sweet Success..

Premium

chocolatier, café and bar franchise Theobroma is expanding its franchise in the UK and is on the lookout for prospective franchisees with drive, ambition ... and a sweet tooth!

Theobroma also serves up a delightful breakfast, lunch and dinner with a chocolate themed cocktail menu on offer in some locations. It really is the home of The Food of the Gods.

If you choose to sit and have a boutique coffee then why not get something to eat while you’re there?

Not everything is chocolate, so you can have a fresh sandwich, croissant or panini instead. All are fresh daily and delicious. If you don’t like coffee, then Theobroma currently has stores in Australia, there are other cold drinks available - all pretty Malaysia and New Zealand. With stores opening in much chocolate themed.

London, Birmingham, Singapore, China, India and Theobroma Is now looking for interested more opening in Australia too. franchisee’s to join its growing system. Our speed of The concept was initially developed by George growth across the globe has been very remarkable Roiniotis, an architect and designer, and Theo said Wright.

Racovalis, a chocolatier, as an alternative for a market they judged to be “coffee’d out”. Ross Our success has been built on providing Wieland a previous director from the bright eyes customers with the finest quality of food, group joined the system as a director in 2011.

Theobroma, an Australian franchise chain launched in December 2006, is undergoing international expansion throughout The United Kingdom, China, Singapore and the USA.

beverage and chocolate with exceptional service by our franchisees.

The system is supported by an experienced head office staff coming from some of the major franchise systems said Wayne Wright the companies With sites planed in London and the regions around franchise and operations Manager. there are some great opportunities for the right “The lack of quality chocolate and café products people to get on board a system that is sure to available was one of the main things that compelled explode into the UK market. If you’re passionate us to open Theobroma,” Wright said. “With Theo’s about, Food, Beverage, Chocolate or quality service experience in chocolate making, we decided to fill then Theobroma may be the right choice for you. the void with a high quality world alternative”.

Theobroma now offers more than 100 different And the chocolate is the real deal: 100 per cent types of handmade boutique chocolates, including a unique range of colored chocolate..

Belgian.

The chocolate beverages are Mayan worshippingly heavenly (though the chilli hot chocolate has a welcome breathless bite), and you can also choose from an open display a fresh handmade treats that beckons both your eye and your palate. A selection of cakes is also on offer, but for true indulgence, try the popular chocolate fondue with fruit – half of that is justifiably healthy - or simply forget the diet altogether and delight in the Belgian waffles in chocolate.

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The stores offer customers chocolate desserts, chocolate drizzled waffles, hot and cold beverages as well as a full food menu and beverages with the chocolate mainstay. It also offers gourmet coffee and premium teas.

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With locations across Australia, Malaysia and New Zealand, Theobroma are looking to expand with further locations across Australia and in to the UK, Singapore, China and India.

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ranchise magazine | the international stage

international stage franchising news from around the globe >> Wetzel’s Pretzels have Asia doing the twist Wetzel’s Pretzel has opened its first Asian location at the Ario Kameari Mall in Tokyo and has already become Wetzel’s Pretzels’ highest-volume store in the world with queues of up to 50 people long and customers ordering armfuls of pretzels to take home with them daily.

Where will I meet you?

In Egypt!

Well known Australian retail food and coffee franchise, The Coffee Club , recently expanded to Egypt with the opening of its new store in a well regarded and popular tourist destination, Tivoli Dome on the north coast. With coffee consumption steadily increasing in Egypt, The Coffee Club plans to open a further 15 coffee house franchises in the country over the next five years.

According to a recent report, coffee sales in Egypt have increased by 8.4% over the past year, to a total of $US33.67 million. According to The Coffee Club, this figure is largely influenced by coffee being the preferred social drink over alcoholic beverages.

July marks the 75th birthday for American donut franchise, Krispy Kreme!

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Burger King bids for top burger spot in China Burger King has anounced plans to open 1,000 restaurants across China over the next five to seven years as part of a newly formed joint venture in a bid to gain a similar presence to burger rival McDonald’s who currently have 1,400 outlets across the country compared to Burger King’s current 63. This marks Burger King’s largest multiunit deal in Burger King’s history.

Tropical Ireland?

Maui Wowi Hawaiian has opened its first European location, tradingin the tropical island for Dublin, Ireland. The kiosks, stand-alone retail locations and event carts offer a range of Hawaiian coffees, juices and smoothies.

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“ ” ranchise magazine | expo: vietnam international shop + franchise 2012

The Secret of Making Money in Vietnam

The Vietnam International Shop + Franchise Show (VIETSF 2012), a trade show showcasing Vietnam’s retail and franchise industry, is Vietnam’s one and only exhibition dedicated to providing overseas shops and franchise businesses the opportunity to successfully enter the emerging Vietnam economy.

The attractiveness of its retail and franchise market has motivated several international businesses to venture into Vietnam. In a recent Citigroup report, Vietnam was identified as one of fifteen “frontier” markets promising high yields despite lingering concerns over price inflation and the weakening Vietnamese dong (local currency). This positive outlook is shared by global management consulting firm, A.T. Kearney, which estimates retail sales in Vietnam to hit $113 billion by this year.

The One-to-One Business Matching Program offered by Coex is a customized matching service between exhibitors and buyers to induce ideal business deals. Devoted to its exhibitors’ needs, Coex, the organisers of the show, began its buyer marketing operations eight months in advance of the show. Under the management of the Coex headquarter, the Coex local office co-operates with agents from various sectors to promote the show

by SNS, telemarketing, email, newsletter and other media on behalf of its exhibitors.

One such success story is Won-E Ceramic who signed contracts not only with Vietnamese companies but also with other Southeast Asian countries.

“We signed MoUs with seven companies of various fields unexpectedly in result of attending the show. Also, we signed a MoU with a buyer from Philippines which led to expanding our business in the Philippines.”

-Sang-Woo Lee, CEO, Won-E Ceramic

The upcoming show will be held from the 1st – 3rd November at Saigon Exhibition and Convention Center, Ho Chi Minh City, Vietnam.

For more information, visit the website www.vietnamshow.info or contact the VIETSF 2012 Secretariat.

VIETSF 2011 welcomed 123 companies from six countries displaying their products and services.

Satisfaction surveys of exhibitors revealed that 66% of them were satisfied with the show outcome while 78% of them were willing to participate in the event again. A total of 1,980 meetings took place at the 2011 show and contracts worth USD 52 million were discussed. This was possible because 61% of all visitors were people with purchasing power, allowing them to make decisions at the show itself.

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”

Expo Information Show Title: Vietnam International Shop + Booth Information & Fees: Franchise Show 2012 (VIETSF 2012)

Dates: November 1, 2012 – November 3, 2012 Venue: Saigon Exhibition & Convention Center (SECC), Ho Chi Minh City, Vietnam

Exhibit Items:

• Franchise Food & Beverage, Beauty & Health, Fashion, Retail & Wholesale, Consulting Service, Education & Training, Other Specialised Retail

(Registration due by August 10, 2012) Booth type Unit Price Space Only $2,390/ booth Schell $2,580/ Scheme booth

Sponsorship $2,750/ Booth booth

Includes Raw space only Basic type of booth stand (includes 1 information desk and 2 chairs) Basic type of booth stand (includes 1 information desk and 2 chairs)

• Shop Shop Design & Renovation, Shop Equipment, Shop Interior, Retail Technology, Professional Exhibitors from Australia: Exhibit in the Australian Pavilion & enjoy benefits Services, Items for Shops such as the Biz Matching Program, booth upgrade and more. For more information or registration, Buyer Profile: • Franchisees in Vietnam and neighboring please contact our Australia Representative. countries • Multinational retail and franchise businesses

Further Information:

Australia Representative Linda L. Gurney • Preliminary founders, store owners, investors T. 61-448800968 • Department stores, shopping center, large retail E. linda@thetradeevent.com distributors H. www.vietnamshow.info

Concurrent Events:

• Consulting program with business experts • Seminars on successful business cases of entering the Vietnamese market • 1:1 Biz Matching Program * Specialised and customised program arranged meetings with specific buyers and suppliers. * Biz-matching application is due by Oct 5, 2012. www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE

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ranchise magazine | made in australia:

made in australia australian made franchise >> Alloy Motor Accessories (‘AMA’) began operation in the early 1980s in the manufacture and supply of an extensive range of alloy motor accessory products for a wide variety of vehicles. With tray manufacturing now down to a fine art, the AMA collection not only includes an extensive range of spectacular alloy Trays but also Trailers, Tow Bars, Grille Guards, Roo Bars, Bull Bars, Roll Bars, Ladder Racks, Roof Racks, Roof Baskets, Side Steps and fitted accessories – just to name a few!

AMA products are produced to exacting standards providing uniformity of size and form. This means the Customer can create on request a coordinated look and finish specific to their requirements. Indeed, custom designed solutions are an integral part of the AMA specialist service.

The Alloy Motor Accessories franchise is a unique opportunity to begin a tray building, supply and fit business never before offered as a franchise in Australia.

Operated under the Franchise, Alloy Motor Accessories is a retail premises based business specialising in the build, supply and fit of quality alloy trays under the trading name, logo and company website www.ama4wd.com.au.

AMA franchisees also have the added benefit of providing some additional motor accessories and related products to their customers thereby driving add on sales value even further.

We at Franchise Magazine caught up with Alloy Motor Accessories franchisor, Steve Konstantinou to find out what makes this great Aussie franchise so good!

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ranchise magazine | made in australia:

Getting to know you FMO: If you had to describe your personality FMO: How did you know that franchising was right for your business and what ultimately in a few words, what would it be? influenced your decision?

SK: I’m known to be easy going and to enjoy a good laugh. I am also quite focussed, driven and passionate about everything I apply myself to.

FMO: What inspired your business idea?

SK: I have always had a passion for everything automotive. Although the Alloy Motor Accessories (‘AMA’) business was successfully operating since the early 80’s, I was presented with the opportunity to purchase the business in the late 90’s. Over the years we have cultivated the business and established a sound reputation for being the custom aluminium manufacturing and repair specialists in the alloy motor accessories industry. We pride ourselves in the fact that we are one of the very few around that not only produce spectacular custom made solutions, but are actually passionate about this side of our business.

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SK: To facilitate further growth and expansion we researched various methods – franchising was one of them. It was not until we met and had extensive discussions with Nick James from Franchise Central that everything became very clear. He took the time to explain the process carefully and answered all our questions.

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Getting down to business FMO: How did you go about seeking advice on starting to franchise your business? Talk us through how you got started.

SK: We explored some existing automotive franchises and talked to various professionals.

Excuse the pun but Franchise Central was a ‘specialist and custom fit’ for us. After initial discussions with Nick James, I was presented with a franchise feasibility proposal. After reviewing this, I had further discussions with Nick and had all my questions answered.

From there, I decided to proceed down the franchising road. The franchising process itself commenced with the development of the documentation. In the development period (stage 1), I worked predominantly with Mary James who was my main point of contact.

Once the documentation was completed we progressed to stage 2 – Franchisee Marketing & Recruitment. The beauty of working with Franchise Central is that the relationship is ongoing – from development right through to actively marketing for Franchisees. We look forward to growing the AMA brand nationally.

FMO: How overwhelmed were you initially when setting up your franchise?

SK: I had no idea the extensiveness of the work involved in setting up a franchise system. I did not feel overwhelmed at all during the process of setting up the systems other than when Mary presented me with an initial set of questions that involved gathering quite a bit of company and business information! The rest was pretty much done by Franchise Central with minimal interruption to my everyday business activities.

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ranchise magazine | made in australia:

The business FMO: Who is the target market for your FMO: Is there room for more franchisees in your current market? If so, what areas? franchise?

SK: We are currently exploring car dealerships however, we are also actively seeking business minded people that will share the AMA vision, take pride in and be committed to succeeding in their own franchised store.

SK: Although we have only just begun franchising, and despite the economic climate, the prospect of establishing 50 or more franchisees around Australia is very promising.

Potential franchisees do not need to have any FMO: What are the short and long term goals particular background experience as full training you seek to achieve for your franchise? and support is provided. Of course, a background SK: Our short term goal is to have franchisees or a passion in the automotive industry is always in areas where the most demand is coming a bonus! from. In the long term we endeavour to have a dedicated group of Franchisees working towards providing the best product & service available.

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Franchisees for your business FMO: Describe what your ideal franchisee would be like? Their personality traits, experience and attributes etc.

SK: A 4wd accessory store that wants to grow in their area because an AMA Franchise provides them with the opportunity to be a one stop shop.

FMO: What initial training and ongoing support do you provide your franchisees?

SK: Initial Training includes up to four weeks comprehensive training – three weeks on site at the Franchisor’s head office store and/or any stores nominated by the Franchisor prior to the Commencement Date of the franchise and one week in the Franchisee’s store at commencement.

The initial Training includes store operations, ordering, inventory control, product information, assembly and fitting, POS, business procedures and customer service training.

AMA also provides ongoing support to each franchisee in relation to products, point of sale software, advertising, product information sheets, brochures and promotions. This includes full telephone support during business hours 8am – 5pm Monday to Friday.

An AMA franchise is easy to operate. All AMA operating procedures are clearly stated and identified in an Operations Manual which is supplied to the franchisee on loan from the Franchisor for the term of the franchise. Staff can be trained quickly and efficiently with little lost production time.

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ranchise magazine | made in australia:

Franchising with franchise Central SK: We noticed that there wasn’t anybody Designing, developing and completing the

out there franchising what we happen to do best! After some research, the most sensible approach for the further expansion and growth of AMA was to consider franchising.

In looking for someone to set up the AMA franchise system, I talked to people that were already in the industry and they all pointed towards Franchise Central. I made an appointment with Nick James and we talked over some of the issues I had in achieving the right direction and the help that I required.

From that first meeting, I had no hesitation in choosing Franchise Central for franchising my business.

AMA franchise system, documentation and all the accompanying paperwork to bring it all to fruition, was a very methodical and detailed process. Here I discovered another ‘custom specialist’ working predominantly with Mary James during the process of fine tuning systems and documentation to AMA exacting specifications!

Thanks to an excellent ongoing collaboration between Franchise Central and AMA, we look forward to national expansion – the AMA franchise is a unique opportunity to begin a tray building, supply and fit business never before offered as a franchise in Australia.

For more information about an Alloy Motor Accessories franchise opportunity CLICK HERE

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ranchise magazine | spotlight:

Another Princess crowned in Cheltenham ...

Pole Princess welcomes new franchisee Jas Ang with the opening of the Pole Princess Cheltenham studio.

Specialising in bringing fitness classes in the form of dance to all kinds of women, at Pole Princess, you will find the opposite of the big, intimidating gym. The concept of Pole Princess is that of a boutique style health and fitness studio with the emphasis on performance art that provides a fun, friendly, motivating, supportive and caring environment where everyone is treated like a ‘superstar’ in their own right.

With classes running seven days a week across five different locations, Pole Princess offers a eclectic range from pole dancing to strip tease courses and casual classes in Burlesque, Bootifunk, Cheerleading or for those looking for a fun way to celebrate their next event or even just a girls (or boys) night out, Pole Princess offers various as well as fantastic function packages to suit any occasion that are guaranteed to ensure guests have the time of their lives.

Pole Princess franchisor Anastacia Snelleksz explained how Pole Princess is always looking for innovative ways to take fitness to a new level, “We’ve now broadened our range with the recent introduction of classes to include Aerial Hammock and Tissu – that also makes Pole Princess Australia’s first ever Aerial Hammock and Tissu dance studio!”

Pole Princess Pole Princess is in the business of empowering performance art and celebrating womanhood. As the third business of its kind in Australia, Pole Princess is an established and proven business system that has experienced consistent results since initiation in 2006. More importantly, Pole Princess continues to lead the way in setting the industry benchmark by being the very first pole and exotic dance studio in Australia to incorporate programs recognised by Fitness Australia. 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 well and truly off to a good start to making its mark in national and international franchise expansion.

Pole Princess continues to grow with studios now located in Melbourne’s suburbs KEW, ST KILDA, MITCHAM, RESERVOIR & CHELTENHAM. 36 | June - July 2012

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A re you Pole Princess’ next Franchisee Princess ?

Click here for more information about a Pole Princess franchise opportunity with Franchise Central uctors

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ranchise magazine | spotlight:

Just for a moment... Imagine, a place to let your creativity run wild and share your ideas

and visions with like minded creative people. Now back to reality and this place actually exists.. Welcome to The Arts Emporium!

In response to requests from a small group of friends needing help to create art The Arts Emporium concept was born and the first Arts Emporium was established in Newcastle, Australia, in 2005. Since this date, The Arts Emporium has grown into one of the region’s premier teaching studios, with the youngest client being just 4 years old and the oldest, arriving on scooter, at 95 years of age.

The Arts Emporium has helped every one of their clients think differently, see differently, be creative and make art in a way that satisfies their eye, head and heart and enhances their lives in innumerable ways.

The Arts Emporium believes that everyone should have a creative outlet, a place where they are free to explore their creative side and share their creations with like minded people, this is one of the driving forces behind the expansion of The Arts Emporium as we strive to make available a creative outlet to more and more people, from all walks of life, from the beginner through to the seasoned artist. The Arts Emporium now seeks like minded creative people to help expand to new locations and reach more people yet to experience the unique freedom a creative outlet like The Arts Emporium can bring.

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ranchise magazine | feature article:

selling franchises when the franchisee wants to sell >> Usually it’s the franchisor doing all the selling but what happens when it’s the franchisee who wants to sell up?

There’s more to selling your franchise than placing an advertisement and waiting for the calls to roll in. Nick James explains what happens when it’s the franchisee who wants to put up the ‘For Sale’ sign.

How

By Nick James

Senior Franchise Consultant, Franchise Central

long has it been since you purchased your franchise? Perhaps it’s time for a change. If it is, all you need to do is sell your business before you can move on. If you’re not careful, however, selling your business could be where your problems start. Assuming that you don’t have any special agreements with your franchisor regarding the way in which you must sell your franchise, you need to sit down and consider just what it is you’re selling, what a realistic selling price might be and just how to market your business.

The most common mistake made by vendors in arriving at a selling price is to look at either what the business owes them or, worse still, what bills they have to pay to walk away clear. For example, you may have a business loan, an overdraft, trade creditors and you’d like enough to have a holiday, therefore the selling price must be $X. Obviously any potential purchaser will feel more comfortable about the purchase if you can clearly demonstrate how you arrived at your selling price.

Without specifically looking into the selling process, let’s look at just what it is you’re selling. Essentially most business sales are made up of the following three things:

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1. Plant and equipment (including furniture and fittings) This would normally be assessed at the current ‘on-site’ replacement value, i.e. the cost of replacing an item with one of similar age and condition and installing it on site.

2. Stock Value Depending on the size of your business and the amount of stock you hold, it may be better to hire one of the many companies who specialise in valuing stock as at changeover. If your stock levels aren’t too high, simply use invoices to show the value of the stock. Bear in mind the potential purchaser has every right to know which stock is slow moving. They also have the option not to take all or part of the stock. For this reason it’s quite normal that the actual settlement price may not be known until the time of settlement.

3. Goodwill Determining the value of goodwill is a bit like asking how long is a piece of string. Vendors usually consider goodwill as the most important part of the sale of any business.

After all, take away goodwill and all you’re doing is selling assets.

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The Macquarie Dictionary defines goodwill as an “intangible saleable asset arising from the reputation of a business and its relations with its customers, distinct from stock etc”. Just to confuse the issue, consider this definition by Lord MacNaghten in 1901. It has also been used in the High Court of Australia: “What is goodwill? It is a thing very easy to describe, very difficult to define.

It is the benefit and advantage of the good name, reputation and connection of a business. It is the attractive force which brings in custom. It is the one thing which distinguishes an old-fashioned business from a new business at its first start. The goodwill of a business must emanate from a particular centre or source.

However widely extended or diffused its influence may be, goodwill is worth nothing unless it has a power of attraction sufficient to bring customers home to the source from which it emanates…” and on it goes. As you can see, valuing goodwill is a very difficult task. There are a number of acceptable methods for valuing goodwill. Any value you arrive at would need to take into account a number of additional factors including: • The state of the economy • The number of similar businesses on the market • The reputation of the franchise name www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE

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ranchise magazine | feature article: • The vendor’s desire to sell • The purchaser’s desire to purchase As far as the formula is concerned, there is no correct method; however the following are among those considered acceptable: Payback.

This method considers just how long it will take the purchaser to recoup the goodwill portion of the purchase price, with consideration for the interest the purchaser would have received if they had not purchased your business.

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Theoretical value.

The ‘theoretical value’ is the reasonable price that both the vendor and the purchaser agree upon. That doesn’t mean that you can overcharge for goodwill just because the purchaser is prepared to pay it. If, for example, the realistic price for goodwill was $50,000 and both you and the purchaser agreed on $100,000 you would stand a chance of having the entire sale challenged and possibly set aside under the Trade Practices Act. Weekly gross profit method.

This method is usually used as a checking method. What you first do is calculate the weekly gross profit, and then multiply that figure by 15. For example, if your gross profit were say $2,000 then the goodwill value would be $30,000.

Annual net profit x three.

This is where you multiply the average annual net profit (called super profit) by three. The best tip when valuing goodwill is be able to demonstrate to a potential purchaser just how you arrived at the value.

Other things you need to know when selling your franchise...

Potential The greatest danger facing vendors is when you start using the ‘p’ word - potential. Potential is a bit like goodwill; it’s intangible and it can mean everything to one person and nothing to the next. Often when a business hasn’t been as successful as it might have been, potential is wrongly seen as a feature point of selling. Any claims you make under potential can be considered as an essential part of the sale. For example, let’s say you discussed the potential of expanding the business through the wall of the adjoining shop and thereby expanding the sale opportunities. If the purchaser was to later find out that it wasn’t possible to expand the business as it was explained to them, you as the vendor risk having action taken against you under the Trade Practices Act. The time here is not the mention potential at all. After all potential should be in the eye of the beholder.

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The Right to Know

an experienced business or events or a statement person and the potential of opinion.

Be careful Just what should you tell a purchaser is an inexperienced intentional or accidental potential purchaser? Let’s say 18-year-old. Under the Trade misrepresentations are you’ve heard that the local roads Practices Act, ‘disabilities’ can actionable under the Act. authority is going to restrict include poverty, a need of any parking outside your business. kind, sickness, age infirmity 5. Whether any undue influence Do you tell a potential purchaser of the mind and/or body, or pressure was exerted on, or or do you keep it to yourself? drunkenness, illiteracy or lack any unfair tactics were used Morally you should tell; however, of education. against the purchaser or his/ if information is publicly available her agent. you don’t have an obligation 2. Whether, as a result of conduct to disclose that information. engaged by the vendor, the It is a worthwhile tip for the vendor Another example would be that purchaser was required to to maintain a comprehensive you’ve just been told that your comply with conditions that diary of all meetings with the key staff member was going to were not reasonable for the purchaser and to confirm all open a competition business protection of the legitimate discussions with the purchaser in just around the corner. Do you interests of the vendor. For writing disclose that? The answer is yes; example, you may insist you have an obligation to disclose that the purchaser forfeit his information that could adversely The Bottom Line $300,000 house to you if he affect the business after you’ve failed to pay you back $5,000 As you can see, there is more sold it. Under the Trade Practices in vendor finance. That would to selling a business than just Act the purchaser is entitled be considered unreasonable advertising it and sitting back to not believe a circumstance given the relative size of the and waiting for the calls to exists or an event will occur in come in. because there isn’t a debt and the security. the absence of the vendor saying guaranteed way to avoid aftersomething to the contrary. For the purchaser sale legal problems, you as the example using the instance 3. Whether was able to understand any vendor must give the purchaser above, the purchaser, by the relevant documents.

For every possible opportunity to vendor’s silence has the right to example, if you provided reasonably and properly assess believe that a key staff member complex information that the true worth of the business. is not going to leave and set up a clearly was designed for a The vendor also has the right competition business. person who had a detailed to make their inquiries without knowledge of that particular undue influence or pressure from Unconscionable Conduct the vendor, so be honest and industry. cooperative and your sale should The sale of your business is covered by the Trade Practices 4. Misrepresentations which go smoothly.

Act, particularly in the areas are an inducement to a of unconscionable dealings. potential purchaser. Under The specific sections of the Act the Act an inducement is “an are sections 52A and 53. The inducement or statement following are general indicators that has the effect of leading of ‘unconscionable dealings’: the other party to make a contract or agreement”.

Misrepresentations can be 1. The relative bargaining in the form of advertising, positions of the purchaser. silence to the past or the future For example, you may be www.FranchiseMagazineOnline.com.au | FRANCHISE MAGAZINE

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ranchise magazine | spotlight:

The EnergyLeaks Franchise is a small office/home office and mobile based business specialising in infra red thermal imaging and/or blower door energy audits and assessments testing for gaps, dampness and air leakage/infiltration using state-of-the-art technology equipment and systems to both the residential and commercial/industrial building sectors.

EnergyLeaks proven systems, expertise and flexibility, has adapted to, met and exceeded the demands of the associated requirements of today’s chosen technological methods and materials.

As an EnergyLeaks Franchisee, you have the unique and exciting opportunity to build a solid business. The EnergyLeaks franchise is ideally suited to the enterprising entrepreneur, whilst at the same time; can provide those that are retired or semi-retired with the ideal part time business.

The demand for the services EnergyLeaks provide continues to grow at a rapid pace. EnergyLeaks is very much focused on providing outstanding state-of-the-art services to both the residential and commercial/industrial building sectors.

We actively seek Franchisees that will be dedicated to the company vision and philosophy and committed to the success of their own EnergyLeaks franchised business. The support of EnergyLeaks, Mandatory Disclosure legislation and your own effort means the possibilities are endless!

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Thermal imaging, dampness and air leakage assessment for all types of buildings.

Can you see what we see?

CLICK HERE to find out more about an EnergyLeaks franchise opportunity through Franchise Central.

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ranchise magazine | feature article:

Didword you hear..? of mouth for B2B >> When

By Nick James Senior Franchise Consultant, Franchise Central

it comes to word of mouth advertising many businesses today will head straight for the social media outlets, update their statuses using the ‘one-to-many approach’, hope that their followers share the post with their friends and without anyone using their mouth, not even once, they call it ‘word of mouth advertising’. It seems that many businesses have completely forgotten about the power of the good old fashioned face-to-face, one-to-one, business-to-business (B2B), using your actual mouth, word of mouth!

So time to go back to basics, whether it be face-to-face or business-to-business, word of mouth advertising is a powerful tool and we all know that positive word-of-mouth is the best form of advertising, but how do businesses go about harnessing the power of the bush telegraph? Nick James of Franchise Central says it starts with your own valued clients and explains how to get the best word of mouth out of each of them.

Managing word-of-mouth, actively encouraging it, even soliciting for it should not be any more difficult than implementing any kind of promotional or marketing campaign.

As professional marketers we know about consumer behaviour and the basics of marketing, why can’t we put them together? Consider that fundamental first principle of marketing: know your target market. The same applies to wordof-mouth.

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Nick says in his research to date he has come across five types of client: 1. Opinion Leader 2. Passive Mercenary 3. The Helpful Friend 4. Commerce Chat 5. Closed Mouth It is important to know your clients to be able to get the best word of mouth out of them and in many cases it can boost both your and their businesses.

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1.

Opinion Leaders

are those people who love to be the source of all information for all people. They will tell you who their hairdresser, lawyer and drycleaner are in the same conversation. They want to be the centre of all information for friends, family and business associates.

From a marketing perspective these are great clients to have on your side and they appreciate recognition more than rewards.

A simple phone call, letter of thanks or acknowledgment in person the next time they are in your office can do wonders to maintaining the flow of referrals.

2.

Passive Mercenaries 3.

are those clients who do tell their friends, family and business associates about your firm - but a reward for the service doesn’t hurt. No, we aren’t talking about paying for the referral, that would open too big a can of credibility worms, but these clients will be gratified when they receive a reward from you.

The Helpful Friend

provides the same sort of information as our opinion leader, but for a very different reason.

They do not need accolades or to be the centre of all knowledge, they simply want to help. This is the type of person who provides you with a list of everyone you might ever need when, for example, you have just moved to town. They may even organise Rewards could include a free gift, an introduction and meeting. such as pens or stationery for their office, something hobby These clients appreciate related such as golf balls or recognition and rewards but tennis towels, general gifts such you may need to exercise your as coffee mugs or a discount on a judgment. Some will not actively future service. seek a reward but be pleased when one shows up. Others are looking for warm fuzzies - a thank you when they are next in your office, a quick phone call or thank you letter or an invitation to join you for lunch. You could also consider a random act of kindness.

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ranchise magazine | feature article:

4.

Commerce Chat

And remember these clients are happy to tell their clients will quietly evaluate your three important steps:

clients about your business as long as you reciprocate by offering cross-referrals, either on a formal or informal basis.

For example, an accounting firm accepts referrals from its customers but where possible recommends their clients to shop at a particular car yard, use a suggested white goods repairer or purchase a home from a selected builder.

The cross-referral relationship may involve formal record keeping of the number of referrals made, a list of service providers as recommended by the accounting firm circulated upon request or more informally providing advice about a service provider when the opportunity presents itself, say during a meeting with a client who mentions they are in the market for a particular product or service.

While you may wish to extend rewards to, and/or acknowledge the businesses providing you with cross-referrals, commissions should not be paid if you are looking for word-of-mouth referrals. The power of this form of marketing lies in its credibility and believability, something that cannot be bought.

5.

Closed Mouth

service and offering then keep the information to themselves.

If asked directly they may offer the name of a particular service provider but it is not in their nature to tell friends, family members and business associates about the products and services they use.

Generally, don’t bother trying to encourage these people to become your referral partners, but don’t actively cause them to leave your business either. The key to encouraging selected clients to become partners in the marketing of your firm lies in your knowledge of your clients and getting that information on to your database for repeatpurchase client will make a suitable partner of your firm - in fact, you will have some clients who you would actively discourage from talking about you while still maintaining them as a client!

First, interrogate your client list, select those clients that you would like to make referral partners of your firm and use that as the starting point.

Professional service providers often maintain a more closely linked personal relationship with their clients than a straight product transaction from supplier to customer. Use this information to your advantage, it is your second step. Understand your client’s motivations and use that knowledge to encourage them to talk about your firm. I have found that the most effective way to discover clients’ motivations is to talk to them. If you have sent a thank you letter in the past and received more recommendations as a result, use that knowledge.

What about comments you hear back from someone you thanked with the phone call? Were they happy with the phone call? Was it unexpected and therefore well received?

And finally, the process must constantly evolve. Thanking your clients with a phone call might work well the first time, but what about something else, such as tickets to a show, the seventh time around?

At the end of the business day developing word-of-mouth communication is about encouraging people to do what many of us love - talking. As marketers, we just want to influence the choice of topic.

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Shop : Shop Design & Renovation, Shop Equipment, Shop Interior, Retail Technology, Professional Services, Items for Shops.

Franchise : Food & Beverage, Beauty & Health, Fashion, Retail & Wholesale, Consulting Service, Education & Training, Other Specialised Retail.

Booth Type Space Only Booth Fee

Schell Scheme Sponsorship Booth

$2,390/booth $2,580/booth

$2,750/booth

For exhibitors with the sponsorship booth, exhibitor’s information and press release will be added in the direct mail materials

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Department stores, shopping centres, large retail distributors.

Franchisors, master franchisees, franchisees in Vietnam and neighbouring countries.

Preliminary founders, store owners, investors.

Trading companies.

78% indicated that they are willing to participate again.

10,400 visitors from 35 countires participated.

1:1 biz-matching program - 1,980 meetings took place.

June - July 2012 | 53

ranchise magazine | 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.

A GOLDEN BUSINE 54 | June - July 2012

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ULL TIME OR PART TIME

The future is bright with The Gold Club!

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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 | what’s on

what’s on? franchising events calendar >> August 2012

AUSTRALIA Franchising and Business Opportunities Expo 17 - 19 August 2012 Melbourne Convention & Exhibition Centre Melbourne, Australia

September 2012

UNITED KINGDOM Franchise Opportunities Live 2012 7 - 8 September 2012 Radisson Blu Edwardian Heathrow Hotel London, UK

AUSTRALIA Reinvent Your Career Expo 8 - 9 September 2012 Sydney Convention & Exhibition Centre Sydney, Australia www.reinventyourcareer.com.au CANADA The Franchise Show 22 - 23 September 2012 Vancouver Convention Centre Vancouver, Canada CANADA The Franchise Show 29 - 30 September 2012 Queen Elizabeth Building Toronto, Canada

October 2012

UNITED KINGDOM The National Franchise Exhibition 5 - 6 October 2012 National Exhibition Centre Birmingham, UK UNITED STATES The West Coast Franchise Expo 12 - 14 October 2012 Anaheim Convention Center Anaheim, USA 56 | May - June 2012

CANADA The Franchise Show 20 - 21 October 2012 Toronto Congress Center Toronto, Canada

November 2012

SINGAPORE Franchising & Licensing Asia (FLAsia) 2012 1 - 3 November 2012 Marina Bay Sands Marina Bay, Singapore

VIETNAM Vietnam Shop + Franchise 1 - 3 November 2012 Saigon Exhibition & Convention Center Ho Chi Minh City, Vietnam www.vietnamshow.info FRANCE Top Franchise Méditerranée show 12 - 13 November 2012 Palais de la Bourse Marseille, France GERMANY START 16 - 17 November 2012 Messe Essen Essen, Germany

December 2012

UKRAINE International Franchising Forum FHI 2012 6 - 7 December 2012 Venue TBA Kyiv, Ukraine

January 2013

UNITED STATES Franchise Expo South 11 - 13 January 2013 Miami Beach Convention Center Miami Beach, USA FRANCHISE MAGAZINE | www.FranchiseMagazineOnline.com.au

February 2013

FRANCE Franchise Expo Paris 24 - 27 March 2013 Porte de Versailles - Pavilion 3 Paris, France

UNITED STATES IFA Annual Convention 17 - 20 February 2013 MGM Grand Hotel Las Vegas, USA

May 2013

UNITED KINGDOM The National Franchise Exhibition 22 - 23 February 2013 National Exhibition Centre Birmingham, UK

SPAIN Expofranquicia 2013 9 - 11 May 2013 Feria de Madrid Madrid, Spain

March 2013

GREECE 15th International KEM Franchise Exhibition 8 - 11 March 2013 Helexpo Exhibition Centre Athens, Greece

EGYPT The 11th Middle East and North Africa International Franchise & License Exhibition 15 - 18 May 2013 Cairo International Fair Ground Cairo, Egypt

UNITED KINGDOM The British & International Franchise Exhibition 15 - 16 March 2013 Olympia Conference & Exhibition Centre London, UK

ITALY Franchising Nord 2013 25 - 26 May 2013 Piacenza Expo Piacenza, Italy

AUSTRALIA Franchising and Business Opportunities Expo 15 - 17 March 2013 Sydney Convention & Exhibition Centre Sydney, Australia

June 2013

UNITED STATES International Franchise Expo 14 - 16 June 2013 The Javits Center New York, USA

BELGIUM Franchising & Partnership 2013 20 - 21 March 2013 Flanders Expo Ghent, Belgium

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!

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ranchise magazine | last words

lastyourwords say in franchising >> 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

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Franchising your business with Franchise Central...

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

we’re asking... have you reinvented your career via franchising?

Tell us about it!

email us at: editor@FranchiseMagazineOnline.com.au or join the discussion on our Facebook and Twitter pages

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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!

Publisher

FRANCHISE MAGAZINE

Editor

Kylie Pekolj

Regular Contributors Mary James Nickolas James Kylie Pekolj Graham Van Arkadie

Digital Magazine Created by

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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.

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 >> • in the spotlight: vulcano gelato, lightsounds, my botique and more..

• get your franchise talking: social media 101 • franchise opportunities, events and more..

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