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May 2011
The Business of Home Improvement is Booming We look at some new exciting home improvement franchises and why they are the new force in modern franchising
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What’s in this month’s Magazine?
Regular Features
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Page 2:
Welcome
Page 58:
New Franchise Feature
Page 62:
My Franchise
Page 66:
Franchise Events
Special Features
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What does it take to be a successful franchisor?
Page 10:
Why aren’t more franchises bought each year?
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Finding the best employees for your franchise
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New National OHS Standards to effect franchises
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What is driving the growth in Home Improvement Franchises?
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52 Profiles Page 30:
Marrs Interiors Franchise
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Franchise Career
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PowerCoat Franchise
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Joanne Solis - “How I can help you”.
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Articles Page 16:
Staffing a Franchise
Page 28:
Buying a Franchise
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What makes the Ideal Franchisee?
Page 40:
Profit From Alliances
Page 48:
Building industry Franchises
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Franchise Conversion - Will you be better off?
Page 54:
Rethinking the ‘F” Word
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The Modern Franchise with Mark Matthews Welcome to the Launch Issue of Modern Franchise Magazine We hope you find it informative and interesting. We would like to thank everyone from the team at maxiom for all their hard work and diligence in making this publication come together. Welcome Modern Franchise Magazine!
Staffing your franchise, recruitment, HR and staff management can all be very time consuming. We look at some Thank you for taking the time to read our online publication. Modern innovative ways of making this easier and how to recruit and Franchise Magazine has been retain the very best people. developed to promote new and innovative franchise concepts, Home Improvement franchises provide information that helps continue to thrive and with more franchiors and franchisees entries into this broad franchise improve business performance, market, we look at what is driving and the changes and challenges this growth. facing modern franchises.
In “my franchise” we talk to Abdul Hannan, the CEO of PowerCoat, about how they have grown to become the worlds largest franchise in their industry. Building Industry franchises are also on an upward trend. We look at the reasons why franchising works so well for this industry.
There is also information about some of our recommended providers, upcoming franchise events....and a few ads, which are We take a look at what it takes to We’re also introducing a section called “Franchise Career” where definitely worth reading! be successful in franchising. The we take a look at an outsource change in responsibilities for franchisors and why it is important business, entrepreneur or service. Converting your independent for franchisees to understand what This month we take a look at Olivia business to a franchise can also Michels - an internationally it takes to develop a successful have fantanstic rewards. We experienced mentoring specialist investigate the benefits and what franchise. in the field of franchise psychology to look out for. We also take a look at the lifestyle We also take a look at some challenges driving many And if you hadn’t noticed, on the exciting new entries to the professionals and other next page there’s some franchise world in “New experienced employees to leave information about our other B2B Franchise”. This month we talk to online publications. well paying careers to become self-employed and why this hasn’t Sally-Anne Ferguson of interior design company Marrs. translated into more franchise Enjoy the magazine. All feedback sales. is appreciated. Please visit our We also take a look at what website: makes the ideal franchisee and the steps a you should take when www.maxiom.com.au/modernfran contemplating buying a franchise. chise/feedback to have your say. This month Kristin McNicol also talks about networking in her article about “profit from alliances”.
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Modern Franchise Magazine | 3
WHAT DOES IT TAKE TO BE A SUCCESSFUL FRANCHISOR? By Geoff Hodges
Considerations for new franchisors and prospective franchisees alike. We look at some of the issues that building a franchise can throw at you and how to overcome them. Almost any business is franchisable.
estate broker or property manager, training provider, business coach, mentor and procurement agent.
Change in Responsibilities
Understanding how becoming a Franchising has grown into a franchisor will change your sophisticated and well activities and responsibilities is established industry whereby While some of these activities key to the success of a new anything from cleaning your may be delegated or franchisor. I can’t tell you the home or office to car outsourced, in the best systems number of businesses that have dealerships, hardware stores, the franchisors have control of or decided to franchise without the security, education, telcos, IT, a strong influence over all of owners fully understanding how it fast food, hairdressing, trades these areas. changes their responsibilities. services, accounting and other And most of these franchisors professional services, medical, You will also have to consider have failed. finance companies, banks to the impact becoming a building your dream home has franchisor will have on your There is also a responsibility on been franchised (and probably existing business. franchise consultants and other just about anything and advisors to ensure a prospective everything in between). During the development of your franchisor has fully understood Just because you can franchise franchise system it will require a their role as a franchisor. While your business doesn’t mean it considerable amount of your most franchise consultants in will be successful. valuable time. Even if you Australia are very good at decide to work with a providing the right support for Franchising requires a totally professional franchise prospective franchisors there different approach and mindset consultant, you will be required still many franchisors that go it from running a successful stand to be part of the planning alone or that are unprepared for alone business. You will go from process because, after all, you what lies ahead. an operator of whatever are the original success story Prospective franchisors must business you are in to a your franchisees will be ask themselves: marketing executive, financier, attempting to replicate. franchise salesperson, human 1. What financing do I resource & recruitment require? specialist, systems analyst, real 4 | Modern Franchise Magazine
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2. Where will I obtain the various skills necessary in planning, implementing and administering a franchise program?
It is also important to remember that most franchise systems do not become profitable for the franchisor until a number of units, sometimes as many as ten or 3. What alternatives exist to more, are up and running smoothly. Consequently, you expansion through franchising and are these may have to rely on your original alternatives attractive to business for some time to support you your staff and me? provide the working capital 4. Do I fully understand the necessary for the franchise impact on my current expansion. business and how my role and responsibilities Your original business may also suffer or even be jeopardized by will change? the fact that your franchisees are using your trademarks, style of The Franchise System doing business and As the CEO of a franchisor you appearance. Unhappy customers will direct their anger will quickly find that you will not at the Head Office and you may always be able to tend to the original business and others will not have a business to go back to, if the franchise expansion have to take your place. If you fails or you choose the wrong don’t have the employees already in your organisation that franchisees just to make a sale. can step in and take on the It also takes time to recruit the functions that you were right franchisees. From first previously doing then you will have to recruit skilled employees contact to signing the franchise agreement can often take 6-8 or outsource those functions. If you can’t find the right people it months for many franchises. Then several months or more to could seriously reduce your get up and running. Planning for earnings and cash flow. this is essential to the long term success of your franchise expansion plans.
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You will have to plan for the cost of preparing the franchise documentation including legal agreements and developing the operations manuals documenting procedures, possibly creating and developing a corporate image and registering the necessary trademarks if these don’t already exist and producing the franchise sales package. Further, you may choose to rely on franchise professionals for the planning and/or implementation of some or all of your franchise expansion and these costs must be calculated and provided for in your budget. Finally, you will have to budget for your extra staff requirements, for the marketing and sales of your franchises and, if applicable, the costs of site selection and procurement. Many new franchisors make the mistake of assuming that the initial franchise fees will cover all of these costs and even produce a profit. In fact, in new franchise systems, the initial franchise fee most often is not high enough to cover the direct costs of establishing a
Modern Franchise Magazine | 5
franchised unit; for example, the costs for site selection, lease and franchise negotiations, franchise sales, franchisee evaluation, supervision and training. Another reality that must be faced by the new franchisor is that the first franchisees in a system are often in a position to demand special deals, which may result in lower initial franchise fees or lower rates of royalties than planned. Though it is the writer’s opinion, that ongoing fees or royalties should not be discounted.
Many new franchisors only realize after making painful and costly mistakes, that franchising is not an extension of their core business, but a highly complex and competitive industry in which special skills are essential.
These skills and expertise can always be outsourced, particularly if you do not have the need for them on a full-time basis. However, while it is often cost-effective to rely on such outsourced specialists during the early stages of franchise expansion and at various stages of growth, on an ongoing basis it However, the Head Office costs is far better to develop the of operating a successful expertise within your own franchise system can be much organization. lower than the costs of operating a network of company owned Past success with the business branches. You just have to be being franchised has little to do able to survive the early stages, with the demands of franchising. when the expenditures are Ultimately, the new franchisor will higher and the revenues are come to recognize that two lower. businesses are being straddled - the business being franchised As mentioned earlier, there are and the franchise business. a number of specialized skills and expertise which are Therefore, in deciding on necessary in building and whether or not franchising is for operating a successful franchise you, you should examine your system. ability to learn the necessary skills yourself or your willingness 6 | Modern Franchise Magazine
and ability to attract, develop and manage the talent in order to build an organization capable of performing as required. If you are committed to building a franchise network, have the necessary financial and human resources, and have examined the alternatives, then franchising may be the best option for you. You may even achieve the extraordinary level of success that a truly successful franchise can provide. Important for Prospective Franchisees It is also equally important for a prospective franchisee to understand the significant investment that the franchisor has made in the franchise system. The prospective franchisee should also perform due diligence to check that the franchisor has in fact adequately developed their franchise system and has built an organisation capable of providing the support necessary for them to not only replicate the franchisor’s original business but to do so successfully and profitably.
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Modern Franchise Magazine | 7
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HOW TO GET NOTICED! Would you like to promote your business to pre-qualified customers regionally, nationally or internationally? Once upon a time advertising to a marketing tool that many more wide audience was limited to only readers are interested in receiving the largest of companies. and will open every time it hits their inbox. The Internet has changed that forever. The playing field, at least After all they have asked us to as far as the Internet goes, is far send it to them! more level and enables almost any business to promote and market All our magazines are FREE to themselves regionally, nationally or subscribers meaning that more internationally at a very small cost. people are likely to subscribe and more people will see and hear SME’s now have the opportunity to your message. take advantage of Internet Marketing and grow their business All magazines are compatible with in a manner to meet their business iPads & Smartphones and are aims. structured in a way to maximise the readership via mobile media. Maxiom is an Australian leader in the field of online publications and Being an online publication has Internet Marketing. With over many other advantages, enabling 120,000 subscribers to our online you to incorporate links to your publications, and growing daily, the web site, video & audio opportunities for our clients to presentations, including YouTube, exploit permission marketing are PowerPoint presentations, RSS enormous. Feeds, blogs, social media links all of which can be accessed from Sponsoring a magazine relevant to any computer, laptop, iPad or your industry is a terrific way to Smartphone. been seen in the market place. With many more companies Advertisers also get the same targeting email marketing it is functionality, meaning readers can sometime easy for your message immediately click through to your to get lost amongst the plethora of site for more information or to take messages received everyday. up your offer. By publishing an informative and appealing online magazine, businesses now have an online
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It offers instant and constant communication with your target market and is supported with email marketing campaigns and
Modern Franchise Magazine | 9
WHY AREN’T MORE FRANCHISES BOUGHT EACH YEAR? By Aiden Williams
We take a look into the psychology of franchise sales and the reason why recruiting suitable franchisees can be a challenge for many franchises. We also look at some innovative and proven solutions. Every year there are tens of thousands of new businesses started and thousands sold, but only a fraction of 1% of these are franchises.
Almost 50% see self employment as their preferred option.
$85,000 per year, plus super and for many other benefits such as a company car, mobile phone and laptop.
The numbers are similar across the board for white and blue Some businesses and When you look at the numbers collar workers, regardless of industries offer 6 weeks annual and the statistics on business industry or profession. leave, plus now there’s paid failures it seems somewhat parental leave, share or equity surprising that more people So why do franchisors find it so schemes and many other don’t make their first or challenging to tap into this incentives to promote loyalty and subsequent venture in the enormous pool of seemingly reward employees for their business world via a franchise. endless talent that is champing achievements. at the bit to get into a business. With 95% of stand alone new In fact getting back to the businesses failing but only a few Surely with these millions of numbers, 32% of the workforce percent of franchises failing it potential franchisees finding and receive additional benefits over seems unusual that franchising recruiting the best and highest and above their wages & super. isn’t the preferred option for performing operators would be budding entrepreneurs. That is easy as pie. Many employers provide until you look a bit more closely. learning & development Well some, but very few, do find opportunities, career Here are some numbers to it quite easy, in fact they have progression, and the opportunity consider: waiting lists. But not all to work internationally or on franchises are created equal major projects, or the opportunity 75% of working Australians are either. to travel. unhappy with their job We’ll look at some more When courting professionals as 50% or more are looking at numbers: potential franchisees, changing jobs this year franchisors are also up against The average wage earner in the freelance and outsourcing Australia takes home nearly 10 | Modern Franchise Magazine
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revolution that is gripping corporate Australia. The Internet has made it easy for freelancers to find, bid on or collaborate on any number of projects or contracts often with very little outlay or investment other than the freelancers time.
an expense account, career The 5 things we hear every week development, they have or be a that people are looking for are: mentor and they don’t have to risk their savings mortgage their 1. Lifestyle (not just more free home, or risk their future to earn time but a better lifestyle, it. though preferably with more time. When these potential 2. A business that will allow franchisees look at a business them not only to maintain There are over 750,000 opportunity, they want to see that their current lifestyle plus Australians subscribed to their investment is returning enable them to improve it as various local and international them their current income plus a well. freelancer websites. There are reasonable profit to get the best 3. Ability to learn, develop and no figures readily available of return on their investment that grow with the business. the incomes of these they can. 4. Opportunity to expand. Not freelancers. be held back by lack of Few franchise opportunities future opportunity or But of course none of these self actually deliver this. Remember restrictions on growth. employment or business options all franchises aren’t created 5. Socially responsible and offers the proven track record or equal. ethical business or industry. security that a franchise does. “Buying a job” isn’t an option for Other factors such as a growth However many offer a much most of these potential industry and sought after product lower cost of entry. franchisees. They simply don’t or service closely followed. need to. In our recruitment business we The other thing to consider is interview thousands of people There is intense competition for that many existing franchisees every year who want to change your potential franchisees from report that they are disappointed their career or start their own many sectors, not just amongst with the returns they get from business, but very few think franchisors. their business and while they “franchise”. The main reasons, aren’t going broke, their ROI is straight from the horses mouth, Creating a franchise offering that not what they expected. is that an educated professional, attracts the attention of potential a high performing employee or franchisees can be challenging. In the end franchising is about corporate executive can easily providing the opportunity for earn over 100K pa plus super, franchisees to invest, learn , plus a car, phone, laptop, maybe
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Modern Franchise Magazine | 11
grow and succeed by sharing in your business knowledge and systems all while earning a better than average return on this investment.
Having people who already understand your business and who do not expect to earn squillions straight away provides a win:win solution for both the franchisor and employee.
Just having a franchisable business is no guarantee of being able to attract franchisees as many new franchisors find out, usually after spending a lot of time and money on developing their system.
It also offers a prospective One franchisor I know of, built franchisee an opportunity to their first 30 + units this way. And work in the system before fully what great references they make committing to their investment. for anyone considering your franchise! Given that most franchises take 6-8 months to go from There are also advantages in franchisee enquiry to signing the that you can usually establish agreements, plus more time to enough franchises to cover your train the new franchisee and Head Office running costs from establish the new franchise, day 1 of your franchise launch, or employing a prospective at least very quickly, reduce your franchisee with the view to them ongoing capital requirements by becoming a fully fledged reducing your workforce (not to franchisee in 6-12 months can mention all the benefits, super, be a more effective tactic to payroll tax etc) and admin costs. grow your franchise network that traditional franchise recruitment. This takes some careful planning and detailed budgeting In some instances you may be to make sure your original able to “employ “ the prospective business is still able to support franchisee on lower than normal you, but the upside can be a wages or as an unpaid “intern”. fantastic kick start into the world of franchising and all the benefits It also allows the franchisor to try that a successful franchise can out the potential franchisee to offer. see if they are actually a good fit for the business without the hassles of later dealing the issue surrounding poor franchisee selection.
New franchisors should seriously look at what they have to offer a potential franchisee and consider other growth strategies. An important point to note is that if your business can’t support an internal growth strategy, then it most likely won’t support a franchisee. For franchisors, one option is of course to grow your franchise network from within. Converting employees to franchisees is a great way of building your business and retaining the best talent to help you achieve you business aims as well as offering employees a great incentive to build their own wealth and share in your business success.
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This also works well for more established franchises. We have all heard about the Bakers Delight Manage to Own Program.
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Lets face it; its hard to get a new franchisee into your system but even harder to get a poor one out. And think of the damage to your business and reputation poor franchisee selection can cause. At it’s not usually the franchisee to solely blame. Back to some more numbers: Over the past 2 years the number of business format franchise systems in Australia has fallen from 1100 in 2008 to 1025 in 2010 according to the Franchise Council of Australia, with a decline in franchisee numbers of 2%.
The average number of units per franchise is 23 according to the FCA. So when you look at the larger systems like Jims, MacDonalds, Baker Delight, and others that have hundreds of units or even more, most franchise systems have fewer units than the average.
Existing franchisees are also buoyed by your selectiveness giving the more confidence that you won’t let just anyone into the business. This makes your franchise seem more valuable, and we all know that people want something that is deemed to be valuable.
This simply comes down to the fact that recruiting franchisees is hard. It takes patience, persistence and an unwavering determination to ensure that any franchisee recruited does meet your criteria for franchisee selection and is a good fit for your business.
Remember all franchises are not created equal.
Surprisingly this has a positive effect on franchisees! Leading business consultants Franchisees that do get Goodes & Co put the decline selected feel like they are the closer to 12% but we all know cream of the crop, better than all there are hundreds of franchise the others who applied for the systems that are not included in franchise. This can be these figures particularly smaller motivational particularly during franchise systems that fly under the early stages of a new the radar or that choose not to franchise when it is still being become members of the FCA. established and takes time to get up and running. Nick James from Franchise Central recently reported there were around 2500 franchise systems in Australia.
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Look the numbers. Only a small percentage of franchises ever become large international businesses with hundreds or even thousands of units. It takes time and determination, but building valuable and desirable franchise has enormous rewards and it also makes it much easier to attract franchisees.
Modern Franchise Magazine | 13
WANT TO FIND THE BEST EMPLOYEES FOR YOUR FRANCHISE? By Sue Pollard
Think like a headhunter! Give the job to someone who can do it; not someone who has done it before. There is much to learn from the way executive search firms operate within the recruitment sector.
They don’t get hung up on whether people have actually done the job before.
If you take leaf out their book you can improve your chances of recruiting the best people for your business, regardless of your size or time in business.
When many recruitment firms advertise a job, they “invite applications”. Applications are usually about experience. What you are looking for is competence, not just experience.
Like all good recruiters, search consultants are all about reducing the risk for their clients. They too, like you, run a business. However, they think outside the box. Their first thought is, “who can do this job and what are they doing now?” They don’t just rely on experience or expertise.
I can’t tell you the number of horror stories I’ve heard from leading business people and entrepreneurs about hiring someone with experience over attitude. Finding competent people is the key regardless of experience in a role.
Don’t get too hung up on qualifications. Most executives left university 20+ years ago. It’s the 20 years since that employers should be interested in. Many of Australia’s highest net worth individuals either just finished high school or barely scraped through university. In the end it’s not what you’ve got that counts - but what you do with what you’ve got. Competence and attitude. Having the attitude to get the most out of what you’ve got and the competence to achieve it is what you should be looking for.
And remember, before engaging a recruitment firm, Unless you are looking for a think whether outsourcing that The lesson is to be more medical specialist or lawyer, job (or part of it) is a better creative in your search. vocational experience only option and redefining the Recruiting people according to counts for only so much. position to suit your business what they can do, not what Competence is much more aims. You might already have they’ve done offers businesses important. that superstar in your greater opportunities to find a business...or you might discover superstar! The person doesn’t have to have a different set of skills will be done the job before, but they do better suited to help you achieve Look at the way big businesses have to be able to do it. your desired results. recruit & promote. They promote and employ on potential.
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Are you passionate about your job? Is it rewarding? Do you have the flexibility to create balance in your life? Can you see yourself in the same job in 12 months? 2 years? 5 years? Are you making the income you want?
If you no longer bounce out bed in the morning, what are you doing about it? The Real Learning Experience is the only Australian corporate training franchise. Our franchise partners receive: A business ready for you to walk in and start working Comprehensive induction and support Freedom to work where you want, with who you want and when you want An exciting and rewarding new career A business with high margins, low overheads and high income potential You don’t need any formal qualifications. If you’re a professionally minded individual looking for a unique and proven business, then call us today!
The Real Learning Experience
1800 24 11 33 franchising@reallearning.com.au www.reallearning.com.au
We are committed to helping individuals and teams fulfil their potential maxiom
Modern Franchise Magazine | 15
FINDING STAFF FOR YOUR FRANCHISE By Elise May
Staffing issues can hold back any business. We look at some of the most effective ways to ensure you recruit and retain the best staff for your franchise and whether outsourcing staff recruitment, HR and training is the best option for your business. For many franchisees starting a franchise means you’ll need people with ambition and talent to help you build your business with you. Consider the essential qualities you'll need in your team before you start hiring people to work at your franchise. While there are some franchises that don’t need employees, most franchises will have to hire staff. The chances are you're going to have to deal with the problem of staffing your franchise and keeping it staffed if your franchise is going to succeed. Many of the staffing issues you will face in your new franchise are the same issues you would face in any small business. However, franchises do offer some unique benefits and challenges that you need to be prepared to address.
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Hiring Employees
On the negative side, however, employees of other franchises Finding the best employees for have a reason for leaving their your business can be difficult previous position. Since and time consuming. And finding franchises are very similar to employees capable of meeting one another, their reasons for the demands of working in a leaving their last job will likely franchise can present special continue to be a problem in their challenges. These challenges position with your franchise. sometimes require employers to look beyond the typical sources, Training Opportunities especially if the franchise has highly specialized staffing Franchises usually offer needs. opportunities for training and One place to look for franchise career advancement that aren't available in a typical small employees is employees who business. have previous experience in another franchise within the same company or in a franchise Hopefully your franchisor has developed quality and relevant of a competitor. On the plus training, career development side, these employees are and talent management already familiar with the strategies and programs to sometimes rigid policies required by the franchisor. They assist you the ongoing management, development and are also familiar with how the retaining of your employees. In franchise operates and are presumably capable of working an effort to ensure uniformity across the franchise, franchisors effectively as part of the tend to be more willing to franchise team.
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provide their franchisees with training programs that equip their employees to do their jobs effectively and in compliance with franchise standards. Your franchisor may also be able to supply you with recruitment assistance and advice and support on HR & OHS issues.
High turnover can seriously disrupt operations in these businesses because the employees that leave are usually the ones who have the most amount of contact with customers or that you have invested in training.
Using a high number of Before you buy a franchise, it's untrained employees in worth your time to ask about the customer service positions services the franchisor provides creates a very negative for employees and then use impression about the business those services after you open for among its clientele. business. To mitigate the impact of This is important in smaller turnover in your franchise, it's franchise systems that may not important to develop a staffing have the Head Office structure to strategy that is not overly reliant provide this support in house. on any single employee. In high turnover businesses, it's better Handling Employee Turnover to employ more employees for fewer hours than vice versa. Employee turnover can be a big Although this may partially problem in many franchises, particularly those that employ a contribute to turnover, it also makes it easier to find staff to significant number of lowcover vacancies when they income, part-time and casual positions, such as cleaning, fast occur. food or retail franchises.
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For businesses with less than 100 employees (which would include almost all franchises) outsourcing your staffing, HR & OHS solutions makes sense. There are plenty of businesses that offer HR support, payroll or recruitment services at good value for the money spent. It is usually cheaper than employing someone to look after it, requires lower levels of management from the franchise owner and frees up time for the franchise owner to concentrate on building their franchise.
Modern Franchise Magazine | 17
WE CALL IT PART-TIME .......OUR CLIENTS CALL IT PERFECT! Looking to hire an additional staff member, or need to outsource a particular job or project? Having a committed, responsible & educated professional join your workforce part-time, to complete or manage a project, or on flexible work arrangements offers the ideal solution for many organisations looking to employ additional staff but without the added cost or risk of a full-time employee. Casual Careers are the experts in recruiting educated professionals looking for a more flexible work environment or for outsourced projects. Employers Ever wish you had an experienced, intelligent, capable person in your office without spending valuable funds hiring another full-time employee or using an uncommitted temp? Having a committed, inspired and educated professional join your workforce part-time offers the ideal solution for many organisations looking to employ additional staff but without the added cost of a fulltime employee. With more and more companies looking for high calibre staff and more job seekers looking for a better balance between work and lifestyle, Casual Careers offers the perfect solution to meet your needs. We have the highest calibre of professionals - high achievers all who are seeking a more flexible or part-time work environment. We can provide you with a
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professional, experienced, parttime employee that meets your needs . You can even leave the Human Resource issues to us Ÿ We search all our proprietary databases to find just the right person to fit your needs Ÿ We handle all Payroll (inlcuding Payroll Tax, Superannuation & Workcover) Ÿ We bill you weekly only for actual hours worked Ÿ You have to option to employ directly for a fraction of traditional recruitment fees at any time Ÿ Perfect for long-term or short-term staffing needs and special projects
Looking For Work? Ever wish you had a job that met your work/life balance requirements? Looking for something flexible that still fits in with your lifestyle? Casual Careers has the perfect answer whether you are looking for work or looking for a new member to join your team.
Casual Careers Casual Careers Pty Ltd Level 2, 710 Collins Street Docklands Vic 3008 Ph: (03) 9097 1606 Fax: (03) 9097 1607 info@casualcareers.com.au www.casualcareers.com.au
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We call it part-time...
Looking for Staff
Looking for Work
Have a Question
...Our clients call it perfect!
Contact a Consultant
welcome Casual Careers specializes in placing educated professionals into long-term, part-time careers. Having a committed, responsible & educated professional join your workforce part-time offers the ideal solution for many organisations looking to employ additional staff but without the added cost of a full-time employee. With more and more organisations looking for high calibre staff and more job seekers looking for a better balance between work and lifestyle, Casual Careers offers the perfect solution to meet your needs. Casual Careers offers both the employer and job seekers the ideal solution between staffing needs and work/life balance. We even look after the Human Resources issues to help make it even easier for you.
Educated
Professional
Flexible
Experienced
Solutions for Employers
Solutions for Employees
Why we’re Different
Ever w ish you had an experienced, intelligent, capable person in your office w ithout spending valuable funds hiring another full-time employee or using an uncommitted temp?
Ever w ish you had a job that met your w ork/life balance requirements? Looking for something flexible that still fits in w ith your lifestyle ? CasualCareers has the perfect solution.
Whether you are an employer or w hether you are looking for w ork Casual Careers is all about solutions that suit YOU.....thats w hy our clients call it “PERFECT!”
www.casualcareers.com.au maxiom
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TRAINING YOUR STAFF WITH CLARIFY TRAINING Wouldn’t it be great if all your staff had the same passion and vision for your business and you? Clarify Training can help you create a dynamic culture where your staff thrive enabling you to reach your business goals faster. Our organisation has a deep commitment to you and your people and offers a unique service based on the values of Accountability, Respect and High Performance. Our professional services are tailored to be tightly aligned to the commercial aims of your business:
As accomplished practitioners your business to ensure business they can help your people display results are achieved. effective influencing skills, the Ÿ Attract & Recruit the Best ability to inspire and engage others Talent and the capability to lead and Ÿ In line with your Ÿ Provide an Environment for empower change in a organization’s strategy, we Your Talent to Thrive performance driven setting. will formulate, lead and Ÿ Optimise Individual implement a learning Capacity framework that is linked to With extensive experience in Ÿ Build Influencing Skills and helping organizations analyze their business performance, Leadership Capacity needs and design strategic maximise individual Ÿ Ensure Business Results learning and development capability and builds Are Achieved solutions, our highly qualified leadership competence. Ÿ See the Results in Your consultants will work closely with Bottom Line Ÿ Coach business leaders in you to determine your company’s your organization so as to individual requirements. ensure the optimal delivery If you want to optimise your of all tactical people We can design tailored solutions business, give Clarify Training a programs and to ensure call. for individual employees, project business results are teams, departments and entire achieved. companies. We will help you implement a suite We can also help you develop a T R A I N I N G of HR practices and policies to learning culture, while fitting in with reflect contemporary, consistent the overall strategic goals of your Clarify Training Pty Ltd best practice. Level 2, 1 Riverside Drive organization. Melbourne Vic 3000 Our consultants are individuals Ph: (03) 9982 4545 Our programs are strategically who have carved their careers Fax: (03) 9982 4546 within leading, complex business aligned to the commercial aims of info@clarifytraining.com environments. www.clarifytraining.com
CLARIFY
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DON’T LET YOUR COMPETITORS OVERTAKE YOU!
Wouldn’t it be great if all your staff had the same passion and vision for your business and you? Clarify Training can help you create a dynamic culture where your staff thrive enabling you to reach your business goals faster. Attract & Recruit the Best Talent Provide an Environment for Your Talent to Thrive Optimise Individual Capacity Build Influencing Skills and Leadership Capacity Ensure Business Results Are Achieved See the Results in Your Bottom Line
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THERE ARE SOME BIG CHANGES IN THE NEW NATIONAL OHS STANDARDS! B y Jo a n n e S o l i s
Franchisors will have to make some big changes to OHS Policy and Operations Manuals to meet the complexities of the new National OHS Standards. National Organisations to Benefit from new Standards.
preparing, and as necessary revising; a model Act, regulations and codes of practice relating to Currently, there are six state Acts, OHS. The model Act and regulations, and an initial set of two territory Acts, a priority codes are due to be Commonwealth Act covering adopted by the Commonwealth by Commonwealth employees and employees against Occupational January 2012. Health and Safety. States and territories are currently responsible The regulations are meant to be all for making and enforcing their own encompassing (the mining regulations have not been included work health and safety laws. as yet) spreading for 600-plus pages with a further 12 draft Although there are many similarities between the laws there Codes of Practice have been are also some differences that can released. There are 16 Codes of and have cause confusion. As a Practice which are yet to be solution, the Commonwealth and released, probably to be released later this year. There will be a each state and territory policy released to assist all people government have agreed to to understand how the regulations, harmonise their work health and safety laws so that they are similar Codes of Practice and Act apply uniformly across Australia. in each jurisdiction, they will be View the Model Work Health and consolidated into a single, Safety Act 26 November 2010 streamlined document. This initiative demonstrates the commitment of the The benefits Commonwealth, state and territory governments to improve and Ultimately, a harmonised set of ensure work health and safety for rules will make it much easier for all Australians. businesses that operate across state borders to understand and Established in 2009, Safe Work comply with the Model OHS Act. Australia has been given the With this consistency in place, it authority and responsibility for should also make it much easier to train and educate workers on
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OHS requirements in Australia, as they will only need to learn about one set of rules. The bad news is that the rules are complex, and will require changes in your OHS policies and Safety Management systems, so it’s important to get it right from the start. Businesses now have a little under 7 months to fully review their OHS safety systems, documentation, training and education to be compliant on January 1, 2012. What’s new? Some significant key changes to note are: The Codes of Practice will be admissible as evidence in court as to what is reasonably practicable behaviour and businesses can only vary their compliance regime where it is equal to or better than that within the code. Businesses will have to be familiar with the Act, regulations and Codes of Practice which now represent thousands of pages of legislation and supporting documentation.
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There is a sizable increase in paperwork compliance required, and as a result, the "due diligence" duties to be imposed on company officers. There will need to be a significant improvement in both practice and paperwork reporting to the board and relevant officers of the business.
supporting pictures and drawings, to assist business in understanding how to comply with the regulations
A new penalty regime will be imposed which emphasises risk management. Under the regulations, any breach which is referable to a duties breach under The new levels of responsibility the Act will fall under the penalties placed on company officers at regime of the Act. Where a breach both franchisee and franchisor of risk assessment processes level is significant and will occurs, fines will be between require you to make significant $30,000 to $60,000 (all fines being changes to your OHS practices, one fifth for a person); signage and manuals & training. instruction carry fine of $18,000 to $36,000, and record keeping a top The National Laws will have the fine of $6,000.00. effect that Franchisor company officers can be held personally Increased empowerment to responsible for failures of OHS inspectors upon entering the site compliance at franchisee level. to look at the substance of compliance by a business and OH&S committees will become exercise both notification and Work Groups with a stronger role penalty based processes to for the Health & Safety ensure systems compliance. Representative (HSR). The HSR will have an entitlement to intrude In keeping with the move towards upon management prerogative nationally consistent safety laws, and decision-making about risks. the regulation incorporates other changes in key areas so all states’ There is more detail around and territory’s approach general and specific hazard reflects National Standards. This management within the will involve some new obligations regulations and the Codes of for employers and workers who Practice have been drafted with engage in high-risk work.
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New National OHS Standards Continued.... National Standard for construction When will the changes come into effect? There will be a new dedicated set of minimum standards for the The Commonwealth and each state construction industry set out in the and territory will be required to enact regulation. A National Standard led by laws that reflect the model work health the Commonwealth Government and safety laws by the end of for licensing the performance of high- December 2011. It is expected that all risk work will bring all states in line and laws will commence on 1 January enable the free flow of skills across 2012. borders. Incorporating photo identification and introducing renewal Model Codes of Practice will be periods will strengthen protection developed and implemented at the against fraud which has been an issue same time as the model OHS in several states. Regulations. However, development and implementation of further model The best OHS outcomes will also be Codes of Practice will continue the result of effective consultation beyond December 2011. between workers and employers, which is a requirement under the OHS The Model Act aside, the road to Act. transform Safety performance and adherence has more to do with Where workers have elected a health developing a resilient and committed and safety representative, the OHS Safety Culture and critically, engaging Act requires employers to involve with the workforce in meaningful open them when consulting their communication that is relevant to the employees. The regulation work and safety that is being carried describes in more detail how out, tied in with a Safety Management employers must involve the System. workplace health and safety representatives in discussions with Joanne Solis is a Director of Building their workforce regarding OHS issues. Up Consulting. To find out more on how the new National Standards will affect your franchise contact Building Up Consulting for a confidential discussion on (03) 9001 0265 or email: jsolis@buildingup.com.au
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New National OHS Laws coming into effect soon WILL require you to make significant changes to your OHS practices, manuals & training. The good news is that you will only need to learn about one set of rules. The bad news is that the rules are complex, and will require changes in your OHS policies and Safety Management systems, so it’s important to get it right from the start. There is now just over 8 months to fully review your OHS safety systems, documentation, training and education to be compliant on January 1, 2012 At Building Up we make it our business to ensure your risks are minimised and your potential maximised. We hold the solutions to your OHS problems, so you can rest assured that your business is able to tick all the boxes.
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BUYING A FRANCHISE By Joel R Russell
Buying a franchise is a life changing decision. So who do you turn to for advice and support during the decision making process? Buying a franchise can be a wonderful vehicle to build a great business and a future for you and your family.
Many of the best franchises handle the recruitment process themselves and use consultants to mentor them through the franchise development and its ongoing management including of course the franchisee recruitment process.
Choosing the best franchise to purchase can be a somewhat daunting process for many prospective franchisees. Asking for advice is this area can also This way the franchisor get the be dangerous. benefit of the consultants knowledge, gets the facts, Some franchise consultants are figures and the benefit of the more like franchise sales consultants insight, but ultimately people, directing you to the the decision rests between the franchises that pay them a potential franchisee and the healthy commissions. franchisor. A consultant can help with facts, figures, and if experienced and insightful enough, with resolving issues, but no consultant or in fact no other person is capable of making a quality life changing decision concerning the most suitable franchise for you. It is far too important and personal a matter to leave with another person, let alone a total stranger in the form of a consultant.
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In the end it doesn’t benefit either the candidate or the employer but more often than not the candidate will see out 12 weeks which covers the placement guarantee period so the recruiter has a win, but this is sometimes at the others expense.
Buying a franchise is a life changing decision, so the only person that can truly make that decision is you. For an employee, if the job doesn’t work out they can almost always find a new position, but when you have made a major Taking the advice of others on investment in a franchise, getting which franchise to buy, no matter out quickly with your investment who they are, is rarely a good in tact is not often possible. And idea. It is even less of a good selling a new franchise is very idea if the person is being paid difficult. By all means seek to recommend that franchise. advice but don’t be swayed by consultants who are being paid It is a common problem even in by to make the sale. staff recruitment, where a recruitment consultant may often “sell” a candidate on a role that they don’t really want to accept in order to fill the position and get paid a rather hefty placement fee.
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The best advice comes from within. Make sure you get all the facts and figures, do your due diligence on the numbers and the franchise system, check to see the support offered by the franchisor will meet your requirements and talk to as many existing franchisees in the particular franchise system as you can. When you do seek advice to check the facts and figures make sure your advisors are specialists in franchising.
Ask your advisors about their experience, what qualifications relating the franchise industry they have and about other clients they have helped. If your advisor can’t provide evidence of their experience in franchising, find one who can. If you need help, talk to the Franchise Council of Australia. They will be only too willing to help you. You can contact them at:
Of course, it’s still up the franchisor to agree that you are a good fit for their franchise. Oh, and if it’s a relatively new franchise, do your homework. Some new franchises offer the best capital gains and excellent returns, but it depends on the individual franchise and the commitment of the franchisor to provide the support required to meet your needs.
www.franchise.org.au
Besides this fine publication There are many excellent there are many excellent books franchise consultants, franchise and magazines about accountants, franchise lawyers franchising. The more you learn and other outsourced specialists about franchising the better that are experienced and informed you will be. accredited in franchising. Then once you have all the facts, figures and details, then you can decide.
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A WINDOW FURNISHING FRANCHISE WITH FLAIR Marrs have been an established “In 2010, PwC assisted the part of the window furnishing owners of Marrs to design a industry for over 32 years. franchise strategy and build a comprehensive franchise With brother and sister duo system. Sally-Anne and David Ferguson leading the way, this second Marrs are now in the process of generation partnership has rolling out this franchise immense industry and business opportunity and we wish the knowledge to take Marrs Marrs team all the very best successfully into the future. with their expansion plans,� says Greg Hodson, Partner Sally-Anne and David have at PwC. developed a system that allows for franchise owners to have The Marrs franchise system the flexibility and lifestyle provides the framework for a benefits of being a mobile premium level of service to be business owner, coupled provided to the client directly by with the opportunity for business the owner of the business. owners to inject passion, enthusiasm and the ability to Sally-Anne and David see this realise profits. as integral in the window furnishings industry and a key As part of developing the reason why Marrs has been so franchise model, Marrs successful in the past. invested in the experience of the team at PwC.
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The benefit of the Marrs franchise is that customers will receive this personal service whilst the franchisees also gain group buying advantages, support from an experienced team, an environment to be creative, and they are kept up to date latest trends and developments. About Marrs With more than 32 years experience and over 80,000 satisfied customers, Marrs offer a unique mobile service, designed to help homeowners select the best possible window-treatment option to suit their requirements. Marrs is about finding solutions!
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Marrs has built up unparalleled knowledge of which products best suit the customers needs and the team also has close relationships with the manufacturers of Australia’s leading window furnishing brands, so franchisees will be purchasing their products at very competitive rates.
The Marrs franchise has been designed specifically with “you� in mind, giving each business owner the chance to exercise their creativity, with the safety of the Marrs brand and team behind them.
Training and development
With flexible hours, the freedom to work from home and your own exclusive In keeping with a strong belief in territory, Marrs is about finding the proper Code of Conduct, a balance between time with Marrs is also a proud member of your family, an enjoyable the Franchise Council of lifestyle and a successful Australia (FCA). business.
Practical hands on training within Marrs existing network, coupled with theory based training, ensures that franchisees will begin their business with the necessary knowledge and confidence to perform.
Why Marrs
As the owner of a Marrs franchise, you will be responsible for the consultation, supply and installation of window and soft furnishings for your clients.
Ongoing training is a critical part of the Marrs franchise system, with new product releases and continually updated technical training.
With a Marrs franchise you are buying into a system that has been modelled and proven for many years, avoiding many major hurdles business owners You will also have the can experience when starting a business from scratch. opportunity to creatively market and expand your business using the support of the Marrs team.
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Marrs training program is a combination of both product training (including sales and installation) and business management skills.
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The Marrs team believes that development and keeping up with change is critical in any business and it is therefore prioritised for Marrs franchisees.
Their second generation franchise team ensures that enthusiasm and new ideas are at the centre of the Marrs culture.
Our goal is to create a team of well-rewarded owners who live and breathe the Marrs ethos by providing superior quality and exceptional value to their customers.
Franchisees will also be Marrs support supported by strong, proven systems in all aspects of running We are building more and more their day-today business. momentum every day – these With over 32 years in the are exciting times!� industry, Marrs has the experience and expertise to help The Marrs National Business guide franchisees on their new Manager, Lachlan Pope, leads If you are looking for a business the Marrs head office support opportunity where you can work journey. team. for yourself with flexibility and creativity, Marrs may be the The head office team has Lachlan states, perfect business for you. significant experience “My background in business in the window furnishings area operations, retail and franchise For further information on Marrs as well as experience running management over the last 12 franchise opportunities contact: successful business across a years has given me a keen eye Lachlan Pope on 0439 996 744 variety of sectors. for spotting opportunity. When Sally-Anne approached me with the offer to join the Marrs organisation, I was thrilled with the opportunity to be involved.
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WHAT IS DRIVING THE GROWTH IN HOME IMPROVEMENT FRANCHISES? By David Marks
Home Improvement franchises have been on a steady rise over the past decade. With new franchises entering this sector in record numbers, we look at what is driving this growth. With a seemingly never ending barrage of home improvement shows hitting our television screens it’s no wonder that enterprising businesses have developed franchise systems to take advantage of the keen interest in this sector and the commercial opportunities that provides. There is hardly an area of renovation or home improvement that isn’t franchised these days. There are several new franchises being launched that offer customers and potential franchisees alike greater choice and potentially better quality, service and reliability than has been traditionally associated with tradesmen and builders.
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We will take a look at some of the new offerings both from a prospective franchisee perspective and the services they offer clients to compare franchises. You may have noticed the pinkness of the front cover of this magazine along with the Marrs advertisement. Marrs offer completed interior design services and mobile based franchises that provide these services to clients.
In the home improvement franchise market the Marrs offer is unique as it requires no trade qualifications or experience, so long as your not cursed with extraordinarily bad taste this franchise may suit a lot of people. Most other home improvement franchises require some building or trades experience, licences, insurance and the tools of the trade.
PowerCoat have launched a The franchise offer aside, a home exterior renovation strong brand such as Marrs franchise (rendering, painting entering the franchise market and exterior wall systems). A indicates the strength of this growing market notorious for market and its continued growth poor service and inconsistent potential. In fact IBISWorld have trades, so a company that offers reliable consistent quality in this predicted that it will be one of the highest growth sectors in the sector is bound to succeed. You next 5 years. So maybe now is will require relevant state trades licences and insurance though the perfect time to buy one of and franchises start at around these franchises. 35K.
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Perth based painting company Passione Painting has also just entered the franchise industry with its painting franchise offer. Covering everything from home to office painting, commercial and industrial, this franchise has excellent national potential. Renomax from Melbourne has been built from scratch with franchising its purpose. They claim to be able to source materials and trades for you to renovate almost any property at prices major builders pay, while overseeing the quality of the renovation and guaranteeing the result. Now that is a great franchise from a customers perspective! You will need a building licence and around 100K to get into this franchise but the rewards could be significant.
With so many new entries to a growing and diverse sector the customers should be the winners.
The Home Improvement franchise sector is predicted to more than double its’ revenue over the next 5 years alone.
Trades that are looking to purchase one of these franchises can probably look forward to having an excellent choice of franchise networks to join.
With the wide spectrum of products and services provided by this sector there is still opportunities for franchisors to further develop their market and for more entries into this sector.
With real estate markets in most capitals and major centres still tight and prices just easing back from an all time high, renovating is more attractive option to many than moving.
Other factors such as the increased public awareness of issues such as climate change is driving demand for more energy saving products and systems. Home owners are more readily willing to spend Additionally, renovating for profit money to improve not just the is still a great way to increase look or functionality, but also the the value of a property and your energy efficiency of their homes. wealth, so it seems that the demand for renovation and The challenge will be of course, home improvement services will recruiting enough high continue to be strong for the performing franchisees to meet foreseeable future. customer demand.
Next month a new roofing franchise is being launched and a new landscaping franchise. Home Improvement franchises We will keep you posted. have developed quite rapidly over the past decade to become There are already dozens of a major contributor to the established franchises in this franchise industry. sector covering everything from solar energy and landscaping to garages, roofing and fencing.
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WHAT MAKES THE IDEAL FRANCHISEE? There are differing criteria for franchisee selection between different franchise systems, however, there are some common traits that make up the ideal franchisee. Having contented franchisees can make the world of difference to the success of your franchise system and to the success of each individual franchise. With over half the workforce looking to change jobs or careers this year and 50% of working adults seeing selfemployment as their ultimate goal, the pool of potential franchisees has never been larger.
Running a business is not about owning a business, but it is about the relationship you have with your business. Separating it from your life is not an option, in fact it will become your life, particularly in the early years.
In Australia there are far more "independent"start-ups than franchised businesses for a number reasons.
The ideal franchisee wants a small business with the lifeline of a supportive and helpful franchisor. In other words, a Becoming a franchisee also deep down sentiment of "help Many potential franchisee are means you will have a not clear on what makes an relationship with your franchisor, me when I ask for help, but otherwise leave me alone" is ideal franchisee and few support staff, suppliers, franchise recruiters seem to customers and employees which true of most contented franchisees. communicate this to them. all form part of the relationship you have with your business. All When you stop and think about this becomes your new lifestyle. The majority of start-ups demonstrate a greater degree of it, if you were staring at the clock independence, and therefore wondering what else you might Looking at the statistics, if half are much happier in nonbe doing with your life, wouldn't the workforce believes self self-employment be on your list employment is their career goal franchised settings. of options? then less than 1% of the workforce actually achieve this If you are looking at self It might shock you to learn that goal, and less than 1% of those employment options, it pays to think about what level of nearly three-quarters of our adult that do, choose to do so as a suppport you are looking for population is unhappy at work. franchisee. before deciding on which path to proceed. But what most potential So, in the immortal work of franchisees and many franchise Professor Julius Sumner Miller, Joining a franchise network can recruiters overlook, is that “why is this so?� Very simply, running your own business is not franchising may be a great way be immensely rewarding, but only if you can accept the help of just a career change or change of getting started in business, the franchisor and work within of job, but a change in lifestyle. but it isn't for everyone. some well thought out, tried and proven guielines. 36 | Modern Franchise Magazine
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Sarpino's Italian-style take-out and delivery restaurants are meeting all the expectations of the 21st century consumers who are looking for quality, variety and healthy alternatives to traditional fast food.
The Right Concept for Today's Busy Families
The Right Business Concept for Today's Busy Lifestyle The opportunity for lifestyle & financial rewards Security of an International long term brand Full training & ongoing support
To find out more visit our website: www.sarpinos.com.au 16 | Outsource Resource Magazine maxiom
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ACHIEVING THE BEST RESULTS FROM EVENTS! The tactic of marketing to bring qualified sales leads into your business and reduce the cost of sales has never been more important than it is today. With the growth and reach of the Internet, you can communicate with more potential customers and existing customers than ever before. One thing to remember though, is that the internet can be quite impersonal. So what is the most effective way of peronalising your online marketing? Combining it with events gives you the perfect solution that can be tailored to suit your individual business aims and maximise the return on your marketing dollar. Event Marketing is proven to provide the greatest ROI due to the face-to-face interaction that it yields. Now more than ever, companies are finding that the results produced by event marketing far outweigh the return from other marketing platforms, such as print advertising, tv, radio, public relations and even Internet Marketing. Studies have shown that the conversion rate can tripled as a result of face-to-face events and meetings. The profit from your next event or meeting can be considerably higher, if you know what steps to take. Combining Internet Marketing and Events can provide you with an extraodinary ROI compared to all other forms of marketing. Building stronger and lasting relationships, converting prospects, retaining customers, and investing in people are the key reasons for which companies hold eventsand meetings. Our online marketing, meeting and event management specialists are trained to recognize the specific needs of each client and will work along side you to ensure that your meeting includes all vital elements, NWE Events will focus on creating a customized marketing campaign designed to meet your business aims are achieved and that the maximum results are achieved.
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Events with Impact! A lifestyle business that’s full of life and has plenty of style Our meeting and event planners have one of the most exciting and rewarding lifestyles assisting in creating an unforgettable experience for our clients and their attendees. Product Launches Charitable Causes Meetings Conferences Corporate Events Awards Nights Marketing Events
Join one of the world’s fastest growing industries and have fun at the same time If you’d like to help create a memorable, lasting impression on your client’s attendees and you have a professional outlook and a desire to build your own lifestyle business, then this opportunity could be for you. Our franchisees enjoy a comprehensive induction and ongoing training, low establishment costs, great head office support plus a lifestyle and rewards that most people envy. For more information or to receive a franchise kit visit our website:
www.nweevents.com or email: franchise@nweevents.com NWE EVENTS
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Modern Franchise Magazine | 39
PROFIT FROM ALLIANCES. By Kris tin M c N ic ol
Collarborating with other businesses is a fast, low cost way to create new opportunities without the need to commit to expensive internal expansion that go beyond your core activities. Strategic alliances can give you powerful leverage. This strategy can deliver exceptional results with the right preparation and planning. But it is all in the preparation and planning. Having clear expectations, a written agreement and a solid understanding of responsibilities is vital to the success of any alliance. When choosing an alliance partner it is not just about considering the business synergies but also the people involved. Personal factors are quite often what determines the success or failure of an alliance, so you need to be sure you are working with the right people. The key questions you should be asking yourself about the alliance are:
7. What is their attitude towards customer service? Quality? 8. Are they likely to deliver? 9. What is the culture of their business? 10. Do you feel confident that they will honour their end of the alliance agreement? 11. Are there any hidden agendas? 12. Is there personal chemistry? 13. Are you confident that they will show both you and your clients respect, be accountable and act with integrity? 14. What is your desired outcome? 15. What is the purpose of working together? 16. Who owns the clients? 17. If they were your client originally, does ownership stay with you, or do they become a client of your alliance partner as soon as they engage their services?
reputation that will also suffer if your alliance partners don’t fulfil their obligations to clients. To ensure the success and profitability of any alliance both you and your alliance partner must have clear and mutually beneficial expectations and boundaries. Ensuring a win:win:win outcome for you, your alliance partner and your clients is the key objective of an alliance partnership. People will always look at what is in it for them so demonstrating that you are interested in how they will benefit from the alliance shows you are not just using this as an opportunity to sell your products to their database without consideration to their needs.
Follow these steps to a successful alliance and reap the rewards: 1. Know your outcome 2. Do your homework 1. What is the history of the 3. Prepare and plan proposed alliance partner? 4. Put together a professional 2. How professional and proposal credible are they? 5. Meet and discuss any 3. How long have they been in Before entering into an alliance questions that come up business and have they with a potential partner, it is 6. Negotiate any changes to always been in the important to understand their ensure a win:win outcome industry? capabilities, their strengths and 7. Clarify areas not clear 4. Is this their core business? weaknesses in order for you to be 8. Prepare an agreement 5. What are their values? confident they will do the right thing 9. Develop KPI’s 6. Do they match yours? by your clients. After all it is your 10. Meet & review regularly
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F r a n c h i s e
C a r e e r
BUSINESS COACHING, LEARNING & DEVELOPMENT EXPERT OLIVIA MICHELS My first job in marketing was for a small graphic design business in Auckland. After 2 years working as a marketing cadet and getting nowhere I decided to head off on a great adventure to Europe and North America, where I stayed for 15 years. Now specialising in organisational career development, talent management strategies, I have developed a keen interest in spiritual intelligence and how it relates to career success and work life success and happiness. For many years I coached franchise executives on how to develop productive relationships with stakeholders, in particular franchisees. This was quite a challenge given that most franchisors at the time held the position that they were the strict guardians of their business and franchisees were just outsourced contractors who were contracted to fulfil a service to the franchisor.
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Working on changing the culture in franchise organisations was extremely challenging, but at the same time very rewarding.
This program called MASTER is the result of over 2 decades of experience, research and hard work.
Opening business leaders minds to socially responsible management was the key aspect of my coaching.
After returning to Auckland 2 years ago, my husband & I quickly decided to relocate to Melbourne.
This included understanding the aspirations of employees, franchisees, suppliers and customers alike. In my experience many so called business leaders paid little respect to all the stakeholders in a business, but particularly customers, who expect you to help them achieve their goals. Employees and franchisees demanded this too Over the past 20 years I’ve developed sophisticated training programs for franchisee success and development, which of coarse helps franchisors become more successful due to the flow on effect.
Joining with leading training group Clarify Training to deliver the programs, we are now starting to realise the commercial potential of this international experience. Clarify is offering both programs for Franchises and Career Development &Talent Management and I am travelling around the country training the trainers who are delivering these great programs. I’m really looking forward to the next 12 months or so as we train more consultants and pass on our experience to business leaders looking to get the best from their teams.
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A Smart B2B Business for the Smart Operator Every now and then a business opportunity comes along that looks almost too good to be true. Fifo Capital is that opportunity. Thanks to a simple formula; proven finance business, reputable and widely accepted in a rapidly growing market, Fifo Capital has delivered triple-digit annual turnover growth since entering the Australian market in 2008. And, our franchisees have experienced success they’d only ever dreamed of. Fifo Capital is a B2B business capable of first year bottom line return exceeding the cost of entry. Not only this, it has few fixed outgoings beyond telephone line charges in the first year of trading. A business that can grow to whatever size you want. If you’re a professionally minded individual looking for a unique and proven business, talk to Fifo Capital today on 1300 852 556 or visit www.fifocapital.com for more information.
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HOW TO HIRE EMPLOYEES WHEN YOU CAN’T AFFORD TO! If you’re like most small businesses these days, then you’re careful before committing to any new expenses or hiring decisions. The reality is that businesses can’t run without labor, and hiring employees costs money. After all, a new employee will have to be recruited, trained, paid a salary, given sick days and vacation time, there’s payroll tax and perhaps your new emplyee will have to be given a mobile phone, laptop & fully maintained company car or car allowance + FBT. It can all add up - in fact, according to Entrepreneur Magazine, the average cost of hiring a new employee is $4,000. This cost can be much more for educated professionals and executive positions....and this doesn’t include Recruitment Agency Fees! But the fact is that a business must march on if it expects to survive. The good thing is that it’s possible to hire an employee without all of the related costs. How? By hiring an independent contractor to do a specific job for you. By using this valuable tool, you won’t have to pay any of the traditional expenses associated with a regular employee, but you will reap all of
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the benefits - quite possibly more than with full-time employees. Let’s start by taking a look at those benefits. 1. Cost. By hiring an independent contractor (which can either either another business or an indivual), you will likely be able to save thousands in costs. And with the global market, you can hire a qualified person from another country for much less. For instance, if you need a graphic designer, you can hire an excellent one for as little as $10 per hour. You can find these valuable contractors on job sites, such as freelancer.com. 2. Focus. An independent contractor is typically hired for one aspect of a project or to look after an aspect of your business that is not a core activity, such as IT or HR. Their goal is focused, and you’ll be able to measure the results in real-time. For example, if you hire a writer to create an e-book for you, you’ll know in advance how much you’re paying and what you’ll get in return. 3. Qualifications. When you hire a traditional employee, you’ll have to train them to do the job. But an independent contractor is already an expert
in their field. Whether it’s a project manager, an SEO specialist or a website builder, they already have the skills needed to do the job, and are ready to go to work for you. 4. Options. With an independent contractor, you get to decide which projects they work on, when they’re finished, and whether or not to continue to use their services. With a traditional employee, you have to be careful about hiring and firing because of the laws that govern employers, but those laws don’t apply to an independent contractor. If you’re unhappy with his work, simply don’t renew the project. This way of doing business certainly seems to be the trend in the global marketplace. If you’re a business owner, and think you might benefit from hiring outside help, there are some things you should be prepared to ask before assigning a contract. For starters, you should ask to see samples of their work. For example, if they’re a web site designer, ask them to point you to websites that they’ve designed.
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The same goes for other types of contractors. Writers, graphic and video experts should have portfolios of their work, while project managers, social media campaign managers and administrative assistants should be able to tell you which projects they’ve worked on, and be able to give you referrals.
A third option is to look for an organisation that can provide you with an experienced professional on a part-time or project by project basis. Some recruitment or placement firms provide this service. We found a specialist in this area called Casual Careers was very helpful, perticularly for ongoing projects.
If you use a system like freelancers.com, you will have access to a rating system. On it, employers post valuable information about the contractor's job performance and skill level.
Next, you’ll need to determine whether or not the contractor’s schedule will allow them to complete your project on time.
If this sounds like something that’s right for your business, why not start looking for an independent contractor today by logging onto either: www.outsourceresource.com.au www.freelancer.com or www.casualcareers.com.au
Another option is to use prechecked contractors from an organisation such as Outsource Resource. The service is free to find a contractor and you have the peace of mind that the contractor has performed to high standards of service, delivery and quality on past projects. Outsource Resource has the added benefit of being based in Australia and the majority of contractors available are locally based.
Ask them to commit to a predetermined date, and offer to pay their fee once you’ve received the project (this may depend on the scope of the project). This way, you’ll be able to keep control of the project, and the contactor working studiously toward the end goal. Hiring an independent contractor just may be the wisest thing you can do. You’ll pay a fraction of the cost of a traditional employee, they will be an expert in the field that you require and you will be able to maintain control over the process
This has additional benefits for both the business and the contractors as you have verifiable and independent testimonals to their previous success.
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Modern Franchise Magazine | 45
ARE YOU A BUILDER LOOKING TO GET OFF THE TOOLS? When you stop and think about it, as a builder you will use many types of coatings during the construction of even the most basic home. Whether its the interior or exterior paints, renders, texture coatings, timber stains, decking oils, waterproofing membranes, sealants, primers, bonding agents, impact coats, concrete sealers, patterned concrete toppings and many more, you will most likely be dealing with multiple suppliers, different trades, different products and all the while diluting your buying power and costing valuable time scheduling and managing all these different companies and trades on site. How would it be if you could deal with one company that took care of all these coating procedures for you with one phone call! PowerCoat are the only company in Australia, that has the expertise and experience to successfully project manage all your coating requirements. We can even take care of wall system installation, full wet area waterproofing and seamless flooring applications regardless of the product or system specified, with very few exceptions. No matter whether you are a builder of homes, units, high-rise developments or industrial and infrastructure, PowerCoat will tailor a coatings solution to suit your business, preferred products and construction schedule. Franchise opportunities now available Australia wide.
46 Franchise Magazine 10| Modern | Careers Magazine
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Specialists in construction coatings since 1989 Residential Commercial Industrial Infrastructure www.powercoat.com.au
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Modern Franchise IntelBuildMagazine Magazine| |47 3
BUILDING FRANCHISES. BUILDING A BUSINESS NOT JUST HOUSES. By Richard Wozniak
There have been some very successful franchises established over the past 20 years in the building industry. Richard looks at the number of new entries into the industry, the motivation behind their decision to franchise and the rapid rise of franchisee numbers over the past 2 years, when franchises in other industries have been through a prolonged flat period. Many smaller builders and trades suppliers simply don’t the systems Over the past 2 years there have or purchasing leverage required to meet their clients’ demands, so been a number of established they just work harder and longer businesses within the wider building industry that have chosen without the enjoying the franchising as the preferred option accompanying rewards. to grow their market share and Getting off the Tools business.
New Franchises
Regaining Your Life For many builders and tradies, working in the building industry means working 6 or 7 days, constant phone calls and interruptions to your daily life.
It also means endless and often pointless quoting in the hope of A key motivation for many builders winning new work. With the building industry and tradies in deciding to join a experiencing strong growth in Joining a franchise has an added most regions throughout Australia, franchise is to ”get off the tools” benefit as many building industry the pressure on builders and trade One key advantage of any franchises have developed suppliers to meet customer franchise is that the franchisor has support systems, quoting systems demand has been significant. developed, tried, tested and and software that enable proven business systems, that franchisees to manage their This has lead to many builders and tradies working longer hours, enables a builder or tradie to “get workload more easily and regain valuable time to spend doing the often for little extra reward, being off the tools” and run thier business as a business and not things they enjoy. under constant pressure and just as a job. finding they no longer enjoy the There are a number of franchises business that they once loved. Getting off the tools has the added that boast a return to 5 day weeks, At the same time, there has been advantage of being able to oversee Monday to Friday, normal quality and work on the things that business hours. I’m not sure this considerable price and is immediately achievable, but performance pressure on builders will improve business even a small gain in this area and suppliers to build their homes performance and results. would be a great improvement for and deliver their services at lower many builders and tradies. cost and more efficiently to meet the markets seemingly insatiable demand.
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Building a Business not Just Strength in Group Buying & Marketing Homes There are many advantages in owning a building industry franchise, but from a business perspective, the most important advantage is building a profitable business that will support your lifestyle from both a financial and time freedom aspect.
This is a topic I could spend a lot more time discussing, as it has so many upsides but in many ways, is self explanatory.
Many franchisees I have spoken to have admitted that the franchise fees they pay are less then the cost savings they gained from joining the franchise in the first Growing from a small builder or place. This alone makes joining a trade supplier isn’t easy without franchise group perfect business the systems, support and sense. If you can save more on teamwork that is required. costs than your fees then you are Franchise networks have a strong ahead from the very beginning. advantage in this regard as they not only have the expertise within This doesn’t always work out to be the case though, so the other their own support office, but the wider experience and knowledge advantages can be just as base of all the franchisees in their important. network. The value of a larger pool of The best franchise systems have marketing funds can never be underestimated. Bringing in a well organised structures for sharing this knowledge. In fact it is constant flow new customers is often one of the most undervalued the lifeblood to any business. benefits of joining a franchise Without this all business stagnate. group.
Valuable Asset You Can Sell More and more, we hear of cases where builders and tradies are excellent at their profession but after years of hard work and having built a great reputation they have little to show for it at the end. Franchises tend to have a better market for the sale of your business, in particular from other franchisees wanting to grow thier own operation. Having a wider client base, strong marketing support to bring in new customers and a larger geographical & brand awareness, all improve the value and ultimate sale price of your business. Of coarse, you can develop all this yourself without joining a franchise, but for many builders and tradies, knowing where and how to start can be daunting. Doing it as part of a successful team of proven performers not only gives you the support structure from day one, it greatly lessens the risk of not getting it right.
Many tradies also only work for one or two builders, which means at the end of the day they pseudo employees and have built very little In the end, it is most likely the value in their business. value of your business that will support you through your The broader your client database retirement. the greater value your business holds.
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Modern Franchise Magazine | 49
NEW BUILDER PARTNER PROGRAM Builder Partner Program We are seeking quality registered builders to build our designer homes in your region. Not a Franchise The opportinity to become part of an innovative market leading home builder has arrived. Micheal Polo Designer Homes - Your Local Builder gives you an opportinity, at a low cost, to develop your own business, backed by a comprehensive design and marketing structure and professional company culture. Responding to the building markets need for designer homes at an affordable price, we have developed a unique business structure that enables regional building partners, across Australia access to our unique designer homes and design services, building group buying rates, and our strong marketing and lead generation service. With over 30 current design plans, with new plans coming online regularly, and a strong web presence, you can be sure of strong business growth in your unique region. By joining Micheal Polo Designer Homes, you can take on the big guys with strong marketing campaigns and access to national buying rates as well as access to a community of like minded local builders and industry professionals. How does it work? We know and understand what good small builders do best, build good homes. Time is often lost on the small things. Time that could be better spent driving your core business, building homes. Many builders feel that they have to do everything within their own business, often spreading themsleves thinly and working many extra hours, just to get things done. Being part of the Micheal Polo Designer Homes team means having support structures in place so that your time is best used doing what you do best and freeing up your time to spend with your family and friends and more time doing the things that you want to be doing. Micheal Polo Designer Homes offers a sales, marketing, Design and estimating service that will ensure enough genuine opportinity to build a good profitable business within your own region. To find out more, simply click the link below and fill in the become a Micheal Polo Designer Homes Builder enquiry form.
www.michealpolohomes.com 50 | Modern Franchise Magazine
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DESIGNER HOMES BUILT ON TIME AND TO BUDGET...EVERY TIME! BECOME A BUILDER PARTNER NOW maxiom
Modern Franchise IntelBuildMagazine Magazine| 51 |3
FRANCHISE CONVERSION - WILL YOU BE BETTER OFF? By Chris Gregory
A recent article in IntelBuild Magazine about building industry franchises provided an interesting insight into the benefits of bringing your current business into a franchise group. In the article it examined the benefits and disadvantages of converting your business from a stand alone operation to a franchise as a franchisee in a bigger network.
This isn’t always the case with every franchise system, though when you add up all the advantages, it was a no brainer really for a builder to join the franchise group.
For many businesses th good outweigh the bad. Another often overlooked advantage, is the ability to grow your business into a multi unit franchise.
While this was article was talking about building franchises, many of the points raised are relevant to any business.
The up front costs of rebranding, training and franchise fees were For an independent business returned inside of 6 months from that wants to open more outlets from operational savings alone. joining a franchise could also allow you to make this happen faster. You also have the Some of the advantages There are abviously some advantage of having the support included: disadvantages too. and expertise required to 1. Lower set up costs than 1. Loss of some control expand your business already in starting a new franchise havng to comply with the organisation without having 2. Wider marketing reach mandatory requirements of to fins recruit and manage it (in 3. Greater purchasing the franchisor the Head Office) and in more leverage 2. Possible restrictions on the developed franchises, the 4. Being recognised as a area you can service experience of other franchises National brand 3. Loss of independence within the group that have 5. Significant cost savings 4. Costs or rebranding which embarked on a similar strategy. 6. Having valuable Head may incude remodelling, or Office support a totally new fit out Overall, there are many 5. Changes in relationships advantages of taking your In fact the article descibed with suppliers and business from in an independent examples where the savings customers to a franchisee. Like any ma jor gained from the greater 6. Limited opportunities, decision though, do your purchasing power more than locations or territories homework, due diligence, seek offset the ongoing franchise fees available professional advice and make and marketing contributions. an informed decision. 52 | Modern Franchise Magazine
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Modern Franchise IntelBuildMagazine Magazine| |53 3
RETHINKING THE ‘F’ WORD By Vicki Prout
We are often asked “What is the difference between licensing and franchising and what is an appropriate solution?” says Vicki Prout, Chief Sherpa, Sherpa Group On a very basic level, licensing and franchising both deal with the selling of certain intellectual properties, whether software, trademark, or business process and systems, to third parties. However, franchising, under the watchful eye of the ACCC, has a much greater deal of control by the owner/franchisor than licensing has by the owner/licensor. For a business that is seeking to grow their brand across Australia and potentially internationally, franchising offers a methodology that can potentially allow you to reach a larger size in a relatively short period of time due to: Ÿ Efficient leveraging of your Intellectual Property, systems and processes Ÿ Fast growth with less risk and less of your own funds and sales representative Ÿ Learning from a talented group of franchisees – human resources
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The licensor is often free to sell similar licenses and products to other people in the same geographic area. Licensees Ÿ Sharing your success with don’t usually receive much in the others way of training or ongoing support from the licensor. On the Ÿ Increased marketing other side, license opportunities spend and power are often less expensive than Ÿ Increased brand franchises in both the up-front awareness, strength and investment and ongoing fees. viability The major negative aspect of licensing is a lack of control over Ÿ Substantial financial licensees to get them to follow rewards after critical crucial systems such as sales mass for stakeholders techniques, which can eventually hinder the success of the Some remarkable businesses that have been hugely successful operator and the business. utilising the methodology of Businesses need to be aware of franchising include Cartridge their crucial success factor World, Wokinabox, Gloria within their business. For Jeans, Poolwerx, Telcoinabox example, if it is a critical and Wendy’s to name a few. component for the business to Whereas Licensing in most respond to client enquiries and cases only distributes goods address how they service clients and services and the licensee does not retain rights to use the every time, then to duplicate this level of service would usually licensor trademark and licensees usually don’t receive require comprehensive training and strict compliance to exclusive territorial rights. business systems. This would normally not occur within a licensing relationship. Ÿ Accessing difficult local markets and increasing buying power
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Perfect for Your Next Event Site Selection Vendor Negotiations MC & Guest Speakers Seminars Awards Nights In order to enable third parties to conduct business in accordance with the business methodology and business system, third parties must be licensed to use a range of business know-how and intellectual property (such as software, documentation, trademarks and so on). It is therefore clear that a license agreement is required. A franchise agreement is, in essence, a license agreement, but one that is regulated by the Franchising Code of Conduct (Code). The Code is a proscribed industry code under the Trade Practices Act 1974 (TPA). The question of whether a particular license agreement will be regarded as a 'franchise agreement' under the Franchising Code of Conduct (Code) depends on a strict set of elements. Whether a particular agreement,
arrangement or understanding will be regulated by the Code depends entirely on if the elements of a 'franchise agreement' as defined under the Code are present. The Franchising Code of Conduct specifically defines a structure as a franchise if it contains all of the following four elements: 타 An agreement between the parties, written or oral (Contract) 타 A payment, either up-front or ongoing for the provision of goods or services, (except at wholesale price) 타 Provision of a marketing plan substantially determined, controlled or suggested by the franchisor (Control) 타 Use of Trademarks, Brands or Names owned by the franchisor
Business & Trade Functions Product Launches Promotional Products Corporate Gifts Online & Onsite Registration Budget Creation & Management Travel Arrangements Catering Signage
Events With Impact!
Cont: next page >>
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10 Franchise | CareersMagazine Magazine Modern | 55
Perfect for Your Next Event Site Selection Vendor Negotiations MC & Guest Speakers
RETHINKING THE ‘F’ WORD continued... By Vicki Prout
Seminars Growth Option
Financially
Sub-Entity Productivity
Level of Control
Growth Rate
Service
Business & Trade Functions
Franchising
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Product Launches
Licensing
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Awards Nights
Promotional Products Corporate Gifts Online & Onsite Registration Budget Creation & Management Travel Arrangements Catering Signage
Events With Impact!
Take action: Rethink the “F” word – its true value, its compliance, overall control, its systems and processes and blueprint framework. Seek expertise advice early and ask yourself: Why would businesses remove any of these critical elements from their offering to avoid relatively modest compliance requirements? It falsely hinders and limits their growth, quality and brand values, which in return lead to poor performance and limited growth of the business.
The “F” word needs to be taken seriously and the business owner needs to ensure it will underpin the best business model for their business and manage the resulting compliance issues in a cost effective and efficient manner. The best model whether franchise or licence, from our point of view, depends on only one factor - the level of CONTROL. If you asked any of the top 100 businesses what is their one tip for success, the answer would be to maintain control! Vick i Prout is Chief Sherpa at Sherpa Group, leading franchise and business growth specialists. Vick i has been awarded the FCA - SA Franchise Woman of the Year 2006, 2007, 2008, 2010. For more information contact Vick i on +61 2 9267 6277 or Email: vick iprout@sherpagroup.com.au
CLICK HERE 56 | Modern Franchise Magazine
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WOULD YOU LIKE TO PROMOTE YOUR BUSINESS TO PRE-QUALIFIED CUSTOMERS REGIONALLY, NATIONALLY OR INTERNATIONALLY? No matter what your business we can help you consistently gain more customers and build your business and your brand FAST!
Stand out from the crowd Consistently Win New Customers Be Seen as the Experts in Your Industry Strengthen Your Client Relationships Expand Your Database by Thousands or More... Earn Extra Income From Advertising Revenue Look More Professional Build Your Brand
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Modern Franchise Magazine | 57
NEW FRANCHISE AFTER 32 YEARS OF BUILDING A GREAT BUSINESS, MARRS NOW OFFERS YOU THE CHANCE TO JOIN IN THE SUCCESS Sally-Anne Ferguson of Marrs Curtains talks about the decision to franchise their business after 32 years as a successful family operation. 1. What inspired your business idea? Marrs is part of a colourful and exciting industry. Having constant contact with fabrics, fashion, colour and texture, combined with an environment of working so closely with clients that they become your friends, it is hard not to be inspired.
cottage industry (aside from a few large players) with many owner operator businesses.
The advantage of this is ultimately personalised service to the client. The disadvantage is that in these smaller business structuctures purchasing power, state of the art marketing and innovation is restricted. In this assessment of the industry franchising was the right 2. How did you know franchising was right for you decision for Marrs. and what ultimately The franchising system we have influenced your decision? created with the assistance of In addressing our future growth PwC provides the advantage of plans we engaged the services buying power, innovation as a group to be at the fore front of PwC to consult to our of market trends, professional business. We were open to marketing campaigns, long recomendation for the most applicable path for our company. established industry experience, all whilst maintaining the In the back of our minds however, we felt that franchising personal level of service to our clients as they will be dealing was a viable option as the industry we operate in is a very directly with an owner of the business.
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3. What previous experience did you have in the business before franchising? Both David and myself grew up in the Marrs familiy business. Window and soft furnishings have been in our blood and a passion for both of us for a long time. David having been in the business full time for 18 years, I returned as co-managing director after completeing a business degree and gaining experience in the corporate world. Both of us have extensive industry technical knowledge and broad business experience, built on the solid foundation of Marrs 32 year heritage. David and I as second generation directors have the experience, enthusiasm and passion to take Marrs into the future.
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7. Tell us about some of the expectations that you had. Have they been met? So far everything has been in line with our expectations. These are exciting times. 8. Who is the target market for your franchise? We are looking for people to join our team who are passionate about servicing clients, who Sister & brother dynamic duo Sally-Anne & David have an interest in home Ferguson - the second generation behind the Marrs furnishings, and who have a success story. keen eye for detail. Whilst previous sales experience can be of assitance it is not 4. How long did it take to 6. What challenges did you essential. More important is a develop and set up your face in setting up your can do attitude and someone business? franchise? who enjoys being creative. With The biggest challenge in setting very flexible working hours up a customised franchise Whist Marrs has been in involved our ideal candidates operation for over 32 years, we system is the amount would be looking for a franchise spent 18 months setting up the of variables to work through. that they can work from home This challenge can be overcome and mobile to suit their family franchise system. Developing as long as you maintain the our business is constant and and lifestyle needs. always will be, everyday we are intergrity of your company values at every decision point, developing more and more. 9. How many units of your and make a decision that best franchise do you plan to 5. What was the driving force provides the oppotunity for both establish in Australia? the franchisee and the franchisor behind your decision to to make healthy profits so the franchise? Over the next 3 years we plan to business system is sustainable establish 12 franchises and 25 in the future. Sales growth left us no option within 5 years. other than to expand. Our decision to franchise was based Working with PwC was fantastic, 10. Do you have any plans for on wanting to maintain product combining our concepts and overseas expansion? visions with their franchise quality, engage people with a true passion for their work, have industry experience, resulted in At this stage we have no plans low error rates and personalised a franchise system that we are for overseas expansion, 100% comfortable with and service to the client. All of this however I would never say never. believe in. can be achieved through the franchise structure. 24 | Modern Franchise Magazine maxiom
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HOW TO SAVE TIME AND MONEY. How many times each week do you think to yourself I wish I could get someone else to do that? Well now you can. Outsource Resource is the one place you will find hundreds of outsourced specialists who will take on those jobs you hate or that cost you money by having to do them when you could be making more profit doing something else. Construction offers more opportunities to outsource The building industry has been one of the leaders in outsourcing for many years. For decades builders have outsourced labour to sub-contractors, project management, design, even sales, estimating and contract management, amongst many others. One of the biggest issues facing builders is, who are the best people to outsource my work to? There are plenty of businesses willing to take your dollar, but how many can really provide you with great value for your hard earned cash? When you outsource your bookkeeping or accounting requirements, is your accountant a building industry expert? If not what could you be missing out on? Having a resource to locate the best outsourced specialists is invaluable to your business. You can be sure that the businesses referred by Outsource Resource can do the job; after all, they have been referred and referenced by your peers. Outsource Resource can help you find the best person or business to suit your needs. Our motto of “bringing the best together� is what we are all about. To find out how Outsource Resource can help you find the best people to help your business succeed,
CLICK HERE or call us on 1300 688 768
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WOULD YOU LIKE MORE TIME & INCREASED PROFITS? THERE’S AN OLD SAYING, “IF YOU CAN MAKE MORE MONEY IN AN HOUR THAN IT COSTS YOU TO PAY SOMEONE TO DO IT FOR YOU, YOU ARE LOSING MONEY!” Finding the right people to outsource your needs is important.
“Bringing the Best Together” Outsource Resource is the only place you’ll find hundreds of experienced, proven and reference checked outsourced contractors that are there to help you achieve you business aims. Whatever service or product you need to outsource you’ll find it in our directory of quality organisations who would love to help you. If you’re not sure what to outsource and what to keep in house we can analyse your business to find the best options for you. And we GUARANTEE that our recommendations will benefit your business or we’ll refund the full cost of the consultation! Outsource Resource Level 2, 710 Collins Street, Melbourne Vic 3000 Ph: 1300 688 768 Info@outsourceresource.com.au www.outsourceresource.com.au Melbourne |Sydney | Brisbane | Adelaide | Perth | Hobart
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Modern Franchise Magazine | 61
my franchise OVER THE PAST 22 YEARS, POWERCOAT HAS GROWN TO BECOME THE WORLD’S LEADING COATINGS FRANCHISE Abdul Hannan, CEO of PowerCoat talks about the growth of the business in Australia, the challenges they faced developing their franchise program and the opportunities moving into new markets provides. 1. What inspired your business idea? PowerCoat was a small paint manufacturer that was struggling to get accpeted into the wider paint & hardware retail market. Having a solid trade base kept the business going, but finding an avenue to grow our distrution channels proved challenging and frustrating, given that as we were a smaller manufacturer at the time, we didn’t have the marketing budget to throw at the hardware chains to promote our products. So in conjunction with our employees and some enterprising trade customers we developed our now highly successful franchise program
the right way to go, we just knew 3. What previous experience that if we continued in the same did you have in the business vein we would end up getting before franchising? nowhere. Both Hannan and myself grew It was really the chance meeting up in the painting industry. Our with another coatings company father was a second generation that was working on a similar painter. As a 22 year old and 24 venture that inspired up to get year old not long out of there first! apprenticeships (in painting of course) we decided that we din’t And we did! want to be painters after all, so we started a paint manufacturing After converting two of our trade business, with no experience clients to franchisees we set and little technical knowledge. about convincing two of our staff We kept the family painting to set up their own franchise to business as it was our number 1 see how it would go. In the end client and helped finance our all 4 were highly successful, so manufacturing and ultimately our after only 8 months of trial and franchise system development. development we launched our franchise. That was in 1998, 4. How long did it take to some 9 years after we began develop and set up your the business. business?
2. How did you know franchising was right for you and what ultimately Now PowerCoat operates in 5 influenced your decision? countries and has over 300 Simply, we didn’t know what was franchises. 62 | Modern Franchise Magazine
We began the business in 1989 and we spent 8 months on a fast tracked franchise development
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program. Though in reality, we have never stopped fine tuning and developing our systems.
We were fortunate enough to have a great marketing consultant who had some franchise experience. Mark 5. What was the driving force helped us enormously and we were able to successfully fast behind your decision to track our franchise program. franchise?
8. Who is the target market for your franchise?
We are looking for reliable builders or coatings contractors who understand the importance of great customer relationships. In Australia there are various 7. Tell us about some of the state licencing requirements, but We decided that there was litlle expectations that you had. almost all our international loyalty from major chains and in franchisees are builders that fact from some tradesmen and Have they been met? wanted to get off the tools and while our pricing was When we started out we honestly build a business. They have the competitve, we wouldn’t, nor didn’t know what to expect. We skills and construction couldn’t, move too much on did some budgets and all the knowledge and we have the price or we would no longer preparation and planning we business and marketing support. have a business. Having a could then just went for it! It’s a great combination that has premium product, we made the proven great results. decision that a tied in distribution model was best for Our expectations have been greatly surpassed. We never 9. How many units of your us, so we investigated our options and quickly decided that would have expevted to become franchise do you plan to franchising was the best way to an international company. establish in Australia? Having a great support team of go. outside advisors and some We have plans to establish 45 really brilliant employees has 6. What challenges did you franchises in Australia and 6 in helped us no end. Recruiting the face in setting up your New Zealand over the next 5 best talent to our head office has franchise? years. easily been the most important The biggest challenge waas not reason for our success. Without our great people we would be knowing where to start. At the nothing. tiime there wasn’t a large number of trade or building franchises around, so we pretty much worked through the systems required ourselves. 24 | Modern Franchise Magazine maxiom
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“HOW I CAN HELP YOU” This month we welcome integrated OHS, HR, Recruitment & Training Provider - Building Up Consulting to our franchise specialist network. We take a look at the serious business of OHS which is about to undergo some significant changes with new National Laws coming into effect soon. Building Up Consulting provides businesses with “peace of mind” says Joanne. Knowing that their OHS systems, manuals and training comply with legislation provides business owners with the confidence that their employees can go about their business with minimal risk to themselves, others and their employer. “At Building Up we make it our business to ensure your risks are minimised and your potential maximised. We hold the solutions to your OHS problems, so you can rest assured that your business is able to tick all the boxes” Joanne proudly states. With new National OHS Laws coming into effect from January 1, ensuring you tick all the boxes is important. As a former HR & OHS manager in the building industry, Joanne says that clear communication and training is the key factor in ensuring that employees follow safe work practices.
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The new legislation makes that even more vital to minimising risk to business owners, directors and managers as well as employees.
Outsourcing your OHS to experts like Building Up is the ideal way for SME’s to ensure they do tick all the boxes.
So in the end it’s about managing risk?
For no more than a few hundred dollars a year, you can have an OHS expert review your Safety In the end, says Joanne, a Management Systems and OHS workplace accident can have a Policies & Manuals. “Building Up devastating effect on the employee provide standard policies and involved and their future, family manuals to suit most small and health, so employers have a businesses from as little as lot of responsibility in this area. $99.00 a year, includung updates” When employers don’t take their says Joanne. responsibility seriously enough and an accident happens, then the Complete Safety Management new Laws will see some very Reviews start from a lttle over significant penalties imposed. $700 so there is really no reason why any business shouldn’t make So minimising risk to everyone sure they tick all the boxes. involved is paramount, says Joanne. If you would like some more information about OHS for your The new rules are quite complex, business you can contact Joanne and will require changes in your at jsolis@buildingup.com.au or OHS policies and Safety call (03) 9001 0265 Management systems, so it’s important to get it right from the start. The new rules will also have particular effect on the franchise industry.
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Modern Franchise IntelBuildMagazine Magazine| 65 |3
INTERESTING EVENTS FOR FRANCHISORS THE PSYCHOLOGY OF FRANCHISEE RECRUITMENT VALUABLE INSIGHT INTO THE PSYCHOLOGY BEHIND THE DECISION OF PEOPLE TO LEAVE THE WORKFORCE AND START THEIR OWN BUSINESS & WHY MANY DON’T CHOOSE FRANCHISES THIS 1 DAY SEMINAR IS DESIGNED TO HELP FRANCHISORS PACKAGE THEIR FRANCHISE OFFERING IN A WAY THAT ATTRACTS MORE SUITABLE CANDIDATES THAT MEET THEIR FRANCHISE CRITERIA. BRISBANE:
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66 | Modern Franchise Magazine
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INTERESTING EVENTS FOR FRANCHISEES MARKETING FOR SMALL BUSINESS THIS 1 DAY EVENT IS DESIGNED SPECIFICALLY FOR FRANCHISEES TO HELP THEM POWER THEIR BUSINESS GROWTH. SUITABLE FOR ANY INDUSTRY THIS EVENT IS SURE TO RETURN MANY TIMES THE ATTENDANCE FEE...IN FACT WE GUARANTEE IT. IF YOU IMPLEMENT JUST ONE OF THE THINGS YOUR LEARN AND YOU DON’T EARN MORE THAN THE FEE IN THE FIRST 90 DAYS, WE WILL REFUND IT IN FULL...100%. SIMPLE AS THAT! BRISBANE:
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COST: $395.00 PER PERSON DISCOUNTS FOR OUTSOURCE RESOURCE MEMBERS APPLY. JUST ENTER YOUR DISCOUNT CODE ON THE BOOKING FORM INCLUDES LUNCH, AFTER EVENT DRINKS, LIGHT SNACKS & NETWORKING THE EVENT STARTS 9.30AM AND CONCLUDES AT 5.30PM. DRINKS AND NETWORKING START AT 6PM TO AROUND 7.30PM FOR MORE INFORMATION CLICK HERE TO BOOK CLICK HERE
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Modern Franchise Magazine | 67
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