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Professional Services Now Top Earnings: New Report Small Operators & Franchises Outperform Larger Firms
November 2011
What to Look for When Buying a Franchise maxiom
What’s in this month’s Magazine?
Regular Features
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Page 2:
Welcome
Page 10:
Franchise Focus
Page 34:
Modern Franchise
Special Features Page 6:
Happy Questions
Page 16:
Professional Services Franchises Outperform both Large and Independent Firms: New Report
Page 22:
Harmonised OH&S Laws Ready in Most States for January 2012 Start
Page 26:
Why Qantas Killed it’s Brand and Lessons for Franchises
Page 38:
Why Franchisees Must Band Together as One
Page 40:
Attributes of the Best and Most Successful Franchisees
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34 Profiles Page 10:
Mosh Pit
Page 34:
MPH
Page 60:
The Fortune Institute
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Articles Page 18:
More State-Based Legislation Likely
Page 28:
Franchise Myths and Misconceptions
Page 30:
Advantages if Multi-Unit Franchise Ownership
Page 32:
Franchisees in the Local Community
Page 36:
What to Look For in a Franchisor
Page 46:
Sales & Marketing Skills You Will Need as a Franchisee
Page 52:
Franchisee Recruitment and the Relevance of Brand Reputation
Page 54:
Training Franchise Employees
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The Modern Franchise with Mark Matthews Welcome to the November Issue of Modern Franchise Magazine. Recent Reports into the health of Franchise Industry have shown a robust and profitable sector that is looking forward to continued strong growth. Now a new Report shows Professional Services Franchises are easily outperforming both large and independent firms. The push by some within the franchise industry for a fairer deal for franchisees shows no sign of waning after the defeat by just one vote in the WA parliament.
Staff Management
Features
We look into “training franchise employees” and why your employees behaviour and attitude can determine your ultimate success.
In “franchise focus” we talk to Mosh Pit about the launch of their franchise model, and exciting plans for future expansion.
Michael Polo Homes are a growing and innovative Australian Looking for a franchise? residential builder with a unique business proposition. We talk to We find out how to be smart them about growing their about choosing the “right” franchise” and “what to look for in business in this competitive and challenging market in “Modern a franchisor”. Franchise”. Sales & Marketing Plus there is a great feature on Sales, marketing and customer the the role of “franchisees in the There are also a number a really great franchise opportunities service are vital to the success of local community”. advertised! any franchise. We revisit what sales and marketing skills you will need as We also ask “what are the Be sure to look out for the a franchisee and why this is so attributes of the best and most upcoming events listed at the important to franchisee success. successful franchisees?” back of the mag. Much has already been written and Multi-Unit franchising is driving And if you hadn’t noticed, on the said about Qantas’ recent actions. franchise growth around the next page there’s some So we look at it from a franchise world. We look into the information about our other B2B perpective and the lessons “advantages of a Multi-Unit digital publications. franchises can learn from this franchise” and why potential debacle. franchisees and investors see this Enjoy the magazine. All feedback as such a desirable business is appreciated. Please visit our Never has “brand reputation” been opportunity. website: more relevant in attracting top performing franchisees and staff. www.maxiom.com.au/feedback to We look into how this impacts on have your say. the franchise opportunity. With the passing of The South Australian Small Business Commissioner and the narrow defeat in WA, those seeking franchise reform now set their sights on NSW and Qld.
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Modern Franchise Magazine | 5
ASK THE "HAPPY QUESTIONS" BEFORE YOU BUY A FRANCHISE What will make you happy? I really like that question, because I like to be happy. By John P. Hayes Ph.D. Doesn't everyone?
Franchise Law #1: Answer the Happy Questions or you can't It's a simple question, which may buy a franchise! explain why so many people don't ask and answer it before Silly, I know. they buy a franchise. Maybe it's too simplistic? Happiness is in knowing. But is it any less silly to buy a franchise Can franchisees be happy? and not know if owning and operating it will make you Or maybe people don't think you happy? And believe me, lots of can be happy and own a people do it that way. For most franchise-so they buy one of my franchise career, I have anyway? participated in multiple franchisee conventions annually. Maybe they believe that the only And these are not always happy way to control their destiny, and events. their financial future, is through business ownership, and they Lots of franchisees gather for a buy a franchise because they convention, they come to learn can afford to-and it doesn't about the franchisor's vision for matter so much that they won't the future, to sit in on workshops be happy if at least they'll be and training sessions, to meet rich! vendors, and (especially) to mingle with other franchisees. I don't know why people don't ask and answer the question It's in the mingling where the real before investing in a franchise, convention occurs. That's when but if I were the Franchise Czar, you recognize the unhappiness. I'd make it a law!
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Some franchisees are really happy in the mingling, whether it's in the hallways, or over a private dinner, or in a late-night poker game (franchisees are always up for gambling because, well, franchising is a bit of a gamble), that's when it becomes obvious who's happy, really happy, and who's not. Some franchisees will say they're happy because they know it's important to keep a positive attitude and they're hoping that by pretending to be happy some day they actually will be happy! Seeking Happyville in franchising - Others aren't happy, but are working hard to get to Happyville. They come to conventions to soak up the positive vibes, figuring that eventually they'll get happy, too. They know that happy is more than a state-of-mind, and they just have to figure out how to put together the pieces of the franchise puzzle so that they can be happy.
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Wouldn't it have been easier to ask the Happy Questions before investing? So that there's nothing to figure out? I think so.
2. How much do I need to earn to be happy? (Buy a franchise that can provide at least that much income).
3. What work environment will Ask the Happy Questions make me happy? (Do you Wouldn't it make sense to take want a business that's in a the time to do the homework and mall or strip center? Food ask all the right questions before or no food? Stationery or investing your life savings in a mobile? Want to work from business that might not make home?) you happy? This is so easy...and yet, so many franchisees struggle through the misery of operating their businesses. Why? It's because they didn't ask and answer the right questions, beginning with the Happy Questions. Don't make that mistake. Ask these questions: 1. What will I enjoy selling? (By the way, if you think you can be a franchisee and not sell something, please keep your job).
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4. What work conditions will make me happy? (Do you want to call on businesses to sell them your product/service, or do you want the buyers coming to you? Employees or no employees? Full-time or part-time? Do you want to work 'in' or 'on' the business?) 5. What kind of work relationships make me happy? (Even if you don't hire employees, you'll at least have to relate to vendors and your franchisor. How do you like the director of training, for example? How about the field support supervisor? How about the franchisor's CEO?)
Asking questions is up to you Those are the kinds of questions a Franchise Czar should insist that you ask and answer...and those are just a few! Of course, there's no such thing as a Franchise Czar, so you've got to take responsibility for asking these and other questions. Insure your success - By doing so, you can insure your longterm success as a franchisee. Because here's something else you need to know: There really are happy franchisees. John P. Hayes, Ph.D., author and speaker, has written the Franchise Pre-Investment Checklist to help you thoroughly research franchise opportunities. A 30-year franchise veteran who has owned franchises and was the CEO of a major franchise company.
Modern Franchise Magazine | 7
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Modern Franchise Magazine | 9
franchise focus PLAY HARD, OWN A MOSHPIT FRANCHISE. Perth-based apparel store Moshpit Collective is expanding via a franchising model with selected territories available nationally for franchisees. Garrett Chapell, founder and owner of Moshpit Collective, made the decision to franchise after two years of successful trading and realising the unique opportunity his business model provides to people who are looking to enter the retail clothing industry.
The Opportunity Moshpit Collective is a successful business for many reasons; we have an ideal competitor advantage having created the perfect one-stopshop for selected moto, ink and rock inspired apparel.
Of course some retail experience is beneficial but it is not essential, really we are offering a ground-floor opportunity”. Our Objectives
Moshpit Collective have a vision to maintain an enthusiastically Moshpit Collective stock well We offer a “hands-on” approach well run business that operates known national and international when training franchisees and in a viable market with great moto, ink and rock inspired our proven business systems operating systems and achieves apparel for men, women and and procedures assist in consistent profits. By aligning youth. managing your business to ourselves with our overall success. objective and the establishment Moshpit Collective also has its’ of fundamental goals we have own label and clothing line which We are looking for franchisees developed a strong growth and is designed in house and printed who share our development plan for in Australia. enthusiasm, passion, and establishment across Australia. motivation for this industry and According to IBISWorld the Business. Our aim is to grow a strong Australian Retail Clothing network for our niche clothing Industry is predicted to be worth “We’re excited to be franchising range Australia-wide. our business as we know we $12.6 billion in 2010-2011[1], growing by a further 3.5% from have a unique point of difference Our focus is to assist and offering,” Mr Chapell said. franchisees to build a successful last year. business, make more money, “We are searching for Mr Chapell said he is excited provide outstanding service to about the expansion, offering a enthusiastic, passionate and our customers and most dedicated franchisees to join our importantly, have more fun. ground-floor opportunity in this team. resilient and strong industry. 10 | Modern Franchise Magazine
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Our Background
stores; such as Moshpit Collective’s very own clothing Moshpit Collective was created in range which is designed in our 2008 by Garrett Chapell. Perth store and printed in Research identified there was an Australia. evident demand and need Why Choose Moshpit for MX casual wear and action sport inspired labels to be Collective? available at one store rather than As a Moshpit Collective customers having to visit franchisee you will have access to multiple stores with limited proven efficient and effective selections. Moshpit Collective was not designed as a huge store systems operating under a strong brand that caters to a niche and with robot staff but as a thriving market. If you are looking destination customers could to buy a retail business then browse a refined selection of products and receive outstanding investing in a Moshpit Collective franchise will tick the right boxes. customer service.
Going Global Moshpit Collective have been working with award winning consultancy Sherpa Group on their expansion journey and have recently launched online shopping through their company website adding to the strength of the brand internationally. For more information on becoming a franchisee visit www.moshpitcollective.com.au or contact Garrett Chapell on (08) 9399 4664.
The offering has grown from men’s clothing to women’s clothing and now Moshpit Collective stocks apparel for men, women, and children. Each seasons clothing and accessories are chosen from national and international ranges, bringing customers the best selection of quality products and latest trends. Latest developments within the business have included a VIP loyalty program and expansion of brands to include national and international labels that are not offered in many other 24 | Modern Franchise Magazine maxiom
Moshpit Collective franchises are available Australia-wide now! Modern Franchise Magazine | 11
BEING SMART ABOUT CHOOSING THE “RIGHT” FRANCHISE The choices are almost boundless when looking at buying a franchise, so what is the best way to choose the “right: franchise? By Richard Wozniak Buying a franchise may take a lot of the guesswork out of starting a business, but the decision making process leading up to choosing a franchisor can, and should be, just as lengthy and thorough as research necessary to start and run a successful independent business. Not all franchisors are created equal and not all franchises are suitable for all regions or locations. If you don't take the time to thoroughly research potential franchisors as well as their products, services and market, including competition and potential threats, then you run a real risk of contractually binding yourself to an unsuccessful operation. Understanding the Franchisor Failing to thoroughly research the franchising company is an all too common mistake among franchisees. It can often lead to discontent and conflict when the franchisor fails to live up to expectations or requires you to do something you weren’t aware of or expecting. However, it takes a lot more than just a recognizable name for a franchise to succeed.
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If a franchisee finds issues with the you intend to do business in will franchisor after the fact, there is not support the business. There little that can be done. are a number of factors that come into play. That is why detailed research to develop an long-term view of the Look at the size of the community, franchisor before committing the traffic through the centre or yourself is imperative. past the location as well as the degree of competition that the new Research should not be limited to franchise will be up against. It is how much Return on Investment important to understand that any could be possible under ideal area is comprised of a finite circumstances. number of customers providing a finite revenue. Ask the franchisor A thorough investigation of the what is the minimum traffic or franchisor should include looking at population required for a franchise the company's track record, both to make the profit you expect or with existing and past franchise need. Franchisors are experts in operators and in the market. What thier field so they should be able to is their reputation with staff and give you this information. suppliers? Do they have a Franchise Code Compliance The degree of competition limits Program in place? the percentage of that revenue that a business owner can reasonably Take a look at how the brand has expect to see. Add to this the fact grown over its history. If the brand that the new kid on the block never still offers the same products and does quite as well at first. It can services almost exactly as it did at take 2 or 3 years before you start inception, then it may not be able to see reasonable returns. to stay competitive in the marketplace. One should also understand the community in terms of demand. Understanding the Market Thorough research helps create a broader view. Having a clearer Any potential franchisee should view of the big picture helps to also have a very deep project likely outcomes and trends understanding of the market in in the future. These projections are which their business will be competing. It does not matter how the basis for making an intelligent strong a brand is, if the community decision about investing in a franchise.
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Modern Franchise Magazine | 13
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Modern Franchise Magazine | 15
PROFESSIONAL SERVICE FRANCHISES & SMALL OPERATORS OUTPERFORM LARGER FIRMS: NEW REPORT The growth of professional services franchises might just get an unexpected kick-along due to larger firms cutting staff and smaller firms earning significantly more per partner. Recently, accounting giant KPMG announced that it will offer thousands of staff alternative employment options including voluntary redundancies and part paid leave, similar to the benefits offered at the height of the global financial crisis.
Contradicting the findings of the gap for services businesses. AIG and results of larger firms, smaller services businesses are Services franchises reported an actually performing quite well. increase in earnings of 18% according to the PwC Sector A new benchmark report report, easily outperforming nonpublished by Nixon Advantage franchised firms. found the average revenue of firms grew by 15% over 2010, This shows that the franchise It seems that although revenue while profit per partner grew by model, with it’s ongoing training, has increased, there has been a 5.5% to $323,000 with the support and marketing systems slowdown at the top end of town highest performer being a 2.8 offers much more to and margins are under pressure, million dollar profit for a sole professionals than other experts are warning. practitioner. alternatives. Conditions are different to the global finaincial crisis, when larger accounting and other professional services firms offered staff alternative employment options as well. The Australian Industry Group announced in its Performance of Services Index that the industry recorded an index of 50.3 - only 0.3 points above the 50 point level that separates expansion from contraction.
This is backed up by Goodes & Co which says, “smaller professional services firms can outperform larger firms but they need good support from other professionals in the areas they lack expertise”.
With lay-offs by the bigger firms there should be some excellent franchise candidates out there looking to maintain their income and lifetyle.
A professional services franchise might just offer them One of the clear advantages that much more. larger firms have is sales & marketing skills. Another is Franchisors in this sector should access to a wider range of be wooing these candidates expertise across a variety of now! services. Firms like Goodes & Co can help professionals bridge this
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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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Modern Franchise Magazine | 17
WHY STATE BASED FRANCHISE LAWS ARE LIKELY TO BECOME THE NORM, NOT THE EXCEPTION The battle for franchise reform is just beginning! The passing of the Small Business Commissioner bill in SA is the first step in a long and often emotional campaign for a fairer system. By David Marks Emotions are running high within the franchise sector after a private member's franchise bill fell over in Western Australia this week by just one vote. The vote was lost after the speaker, Nationals MP Grant Woodhams, used his casting vote to defeat it. The bill's author, Liberal MP Peter Abetz, says MPs from Queensland and New South Wales have told him they plan on bringing similar legislation to their own states. The rejection of the WA bill follows the passing of the South Australian Small Business Commissioner Act. Now, it seems we can look forward to more of this highly charged debate moving to NSW & Qld. What is clear is that no one is winning from this. Everyone with a grain of common sence knows that franchising should be
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regulated at a National level, rather than state by state.
The likely end result though, could be different legislation in each state, some with their own It seems though, that the political Small Business Commissioner will to make relevant and responsible for franchising and sensible change has been lost others deferring to the national somewhere in rediculous and Code. petty party politics. With the franchise industry in The proponents of the state such good shape it doesn’t need based legislation say that the such distractions. recent amendments to the Franchising Code of Conduct There are only a few rogue don’t go far enough to protect franchisors that are causing this franchisees from unscrupulous disturbance to the entire sector. franchisors. The problem has been and still What is also obvious is that the is, nothing has been done about close vote in WA and the them. passing of the bill in SA should send a clear message to The same goes for rogue Canberra. franchisees. It is hard enough recruiting franchisees let alone Though it seems that neither getting a bad one out. side of politics wants to listen. Maybe the whole Franchising So now we go on another merry- Code of Conduct needs a urgent go-round of industry infighting to review and a national NSW & Qld. None of this can be Franchising Commissioner good for franchisors wanting to established! recruit new franchisees.
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Goodes & Co The unique Goodes business model enables you to work from home or our offices with minimal overheads, access to marketing campaigns and head office support to grow your professional services business across a varitey of disciplines. An excellent return on their investment No Staff to manage No premises to rent No inventory to acquire No long or unsocial working hours No extensive business travel No custom designed equipment or signage
Goodes & Co
When you want someone to deliver the “Goodes� for your business. www.goodes.com.au maxiom
Modern Franchise Magazine | 19
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WEB MARKETING STRATEGY GUARANTEED TO WORK! Maxiom is launching a new digital magazine platform in 2012 which will change the way you view online advertising. With Google changing it’s algorithm again to reward new and original content, articles about your business will have increased relevance. Another trend that is changing search marketing is the move from search engines to apps inside platforms such as Facebook, Twitter, Yelp etc…along with Siri - the voice-activated virtual assistant that comes with the latest iPhone - and other similar applications that bypass Google all together. All these changes require relevant up-to-date information about your business to get and keep you at the top of searches and peoples minds! Maxiom’s new technology has automated the process of distributing your magazine content - articles & advertorials - to hundreds of article and press release services around the world. You can also include videos, flash, HTML5 & CSS Java Script coding in your advertisements. Bring your ads to life, turn 1 page ads into multi-page ads at no extra cost and interact with your market more effectively. Maxiom also provides your business with the ability to track each and every person that looks at your article, advertisement or page, which link they click on and which page of your website they visit. But unlike other analytics, with Maxiom we can now see the names and email addresses of the readers that view your pages or that click a link in your ad. This means that automated follow up emails, information and offers can be sent to the actual people who viewed your page, article or ad or that clicked a link on your page. Imagine what this could do for your sales. And better still we have obtained their permission to do so! But obviously we can’t service everybody, so call us today to see how we can change your online marketing forever…and guarantee the results!
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Modern Franchise Magazine | 21
FRANCHISES URGED TO MAKE SURE THEY COMPLY WITH THE NEW NATIONAL WHS (OHS) STANDARDS NOW! Even though Victoria & WA will miss the Jan 2012 start, franchises are urged to ensure they meet the new harmonised OH&S Standards. By Joanne Solis All franchises are advised to ensure they comply with the new harmonised OH&S laws, despite concessions from the Federal Government this week that grant businesses up to 12 months to implement the regulations if it results in them having to undertake “significant change�. This has mainly been due to Victoria and Western Australia missing the start date for the changes that are due to take effect on 1st January 2012.
for the new laws has not been wasted. Additionally, many requirements of the new OH&S laws are equally relevant to workplaces in nonharmonised States and so obligations of the new laws can be followed in many situations without being in breach of the current laws. It makes good business sense, where no conflict exists with the current laws, to move to the harmonised obligations.
level) must be aware of the positive obligation on an officer of a company to exercise due diligence to ensure the company is discharging its safety obligation. Franchises may need to implement training in the coming weeks to ensure that all franchisees and employees are up to speed with the changes and understand the requirements placed upon them.
AIG this week said if Victoria and Western Australia truly believe a Building-Up Consulting is longer transition period is needed, developing a detailed analysis to "all states have the option of assist organisations that wish to legislating the model Act (which adopt this approach was finalised in 2009!) to demonstrate they retain their stated Building-up Consulting’s advice to commitment to harmonisation, clients is don't wait - ensure you are whilst retaining the option of a later prepared now, because in many operational date." ways this is best practice so there's little downside. While some building industry bodies have voiced their Companies should undertake a disapproval of the new harmonised review of all their OH&S practices, laws, the reaction has generally procedures, manuals and policies. been positive. Victoria and Western In this situation the current safety Special care should be taken when Australia really have no excuses for laws in these two States will be reviewing contractor arrangements failing to meet the start date. enforced by their State-based under the new laws and their regulators. The expectation is that contractor management system, Franchises that operate across ultimately both States will adopt the and make sure their staff are multiple states may have to harmonised laws. prepared for the changes. maintain state relevant policies for Victoria & WA until the laws are Importantly, this means that any Company directors and managers passed in these procrastinating work already started in preparation (at both franchisor and franchisee states. Seven out of nine jurisdictions have now approved the model regulations and codes of practice and have committed to meeting the COAG deadline of 1 January 2012. Victoria and WA, run by Liberal governments, although remaining committed to the harmonisation process, have requested a delay in implementing the new laws in their States, stating delays in the process throughout the year. They have indicated harmonisation will occur in January 2013.
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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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Modern Franchise Magazine | 23
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
Modern Franchise Magazine | 25
WHY THE QANTAS BRAND IS NOW DEAD - LESSONS ALL FRANCHISES CAN LEARN FROM THE QANTAS DEBACLE There has been plenty already written about the Qantas’ actions in the past week or so. But it’s worthwhile looking at why the Qantas we have all known and loved is now dead and the lessons franchises can learn from their mistakes. By Mark Matthews Death to the Brand
About Money
Outsourcing Strategy:
The action taken by Qantas management wasn’t “spur of the moment” and the “only option left’. Qantas have been going through a period of change for some time. This was a carefully orchestrated plan.
The killing of the Qantas brand has been slowly happening, bit by bit, since Alan Joyce took the reigns as CEO.
Moving large portions of maintenance to India to save a buck became another PR nightmare for Qantas after it was alleged office supplies such as sticky tape and staples were used to hold vital electrical wiring together and under qualified and unskilled maintenance staff were being used to service aircraft.
Safety & Reliability:
Over the past 3 or so years, It was designed to kill the brand! there have been no end of near To change our perception of misses, incidents and mishaps, Qantas forever. from serious engine failures, landing gear failures, electrical It seems Qantas management malfunctions, cockpit and engine strongly believe that in order to fires, car sized holes blown in the compete with discount Asian fuselage, engines blowing up airlines that they have to become mid air and just recently another one. It is about moving a large engine failure, this time with portion of Qantas operations world renown entertainer and offshore…nothing more. raconteur Stephen Fry on board, who tweeted this new Qantas The Qantas brand we all know misadventure and PR disaster to and love, as Australia’s airline, the world. one that has an unrivalled safety and reliability record is DEAD! The Qantas brand once centred around its’ safety & reliability. Not any more. 26 | Modern Franchise Magazine
Offshoring: The third part of the rebranding strategy is to sack Australianbased staff and flight crews and replace them with cheaper staff based in Asia. It could also be suggested that it has been down to good luck that there hasn’t been more serious consequences as result of this rebranding exercise. For a list of Qantas safety failures and mishaps click here
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Killing the old Qantas in order The current management haven’t to give life to the new Qantas been able to communicate their position to stakeholders as effectively and as a result have Most Australians held the old Qantas in great affection. We all created an ”Us Vs Them” culture related to it as “our Airline”. But if within the airline. Qantas was going to move so much of it’s operations off shore Unfortunately, this has spilled over to its customers, who then Australians had to think Qantas showed by leaving so about Qantas differently. And many stranded without warning now we do! or communication that they see Culture - Us Vs them, not one their customers as “Them” too. for all A mismanaged and poorly This is where Qantas made their executed PR campaign to appease disaffected customers biggest mistake. by giving them free flights within Previous Qantas management Australia or to New Zealand hasn’t helped. had to undergo some difficult rebranding when Qantas launched its discount division, Jetstar.
Lessons for franchises Rebranding is often spoken about as a marketing strategy. The question is, do you have to kill your current brand in order to rebrand? Or in rebranding do you run the danger of killing your brand? Brands need to be constantly refreshed. That is part of business. Customers want to deal with fresh and vibrant brands. But when you kill your brand in order to rebrand what are your customers going to think?
The Result It’s too early to tell. Is the Qantas we all knew and loved dead. You betcha!
With due credit to the then management, they communicated their position to all stakeholders and were able Is the new Qantas going to live and thrive? We’ll have to wait to secure agreements with all parties in order to launch Jetstar and see. and save both Qantas and jobs from being lost forever, like say Ansett.
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Modern Franchise Magazine | 27
FRANCHISE MYTHS & MISCONCEPTIONS Looking into whether franchising is the right option for you? Franchising is widely known to offer aspiring new business owners the best possible chance of success with the least amount of risk, yet there are still some myths and misconceptions out there that can alienate even the most savvy and experienced business person. Owning A Franchise Guarantees Success.
Brand Name Means Everything.
You need to get clear on the myth that by owning a franchise, you absolutely cannot fail.
While you cannot dismiss the importance of a highly recognizable brand, it is only one part of the equation.
There are numerous factors, both controllable and uncontrollable, that can determine the fate or level of your success.
However, there are many different types of franchises operating in different industries and sectors. Some you may not even be aware of, where the brand isn’t in the consumer spotlight, but that doesn't translate to a lack of success.
However, a huge statistic is in your favour: is that overall, the success rate of franchisees is as high as 95%. Of course, there are no guarantees here, but with proper research before buying a franchise and a determined effort on your part, franchising is the obvious choice.
Their brand doesn’t have to be a household name like McDonald's in order to be a franchising success. Business to business franchises are a great example of this. There are hundreds of professional services or consulting type franchises that most people have never heard of by name. Many are extremely successful, with much less overhead, than traditional food and retail franchises.
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A significant investment is involved, so the only one getting rich is the franchisor. Don’t be fooled. Generally, the up front cost of a franchise is lower than the set-up costs of an equivalent stand alone business. And don’t forget franchisors absolutely need profitable, successful franchisees to flourish. The fact that ongoing royalties are paid by franchisees on a regular basis indicates that a fair an equitable relationship exists between the two parties, and that the franchise is profitable. Franchisee success is also dependant on this. If they weren't, who would pay these fees? A poor performing franchisee will not last very long. The franchising business model is structured specifically so that both the franchisor and the franchisee succeed.
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Bigger Is Always Better.
Owning A Franchise Means You're On Your Own.
You’re Better off on Your Own
This is rarely true, especially in the franchising world.
While franchising certainly isn’t Nothing could be further from the for everybody, sometimes the truth. Yes, ultimately, whether a general disposition of our Think about it: would you rather franchise succeeds or fails is society tends to be negative, so invest every last dollar you have largely the responsibility of the positive aspects regarding into a fast food or retails anything, including franchising, franchisee. business that operates long and business success can hours or 24/7 in the hope of become distorted. However, a huge benefit of making a decent income, deal being a franchisee is that there with high turnover, high is always support staff provided This is particularly so if one overhead, theft, staffing issues by the franchisor, ready to help doesn’t have first hand and worry about what is going on you with any issue you may experience or a deep at your store when you are not knowledge and understanding of encounter regarding your around to supervise. the business or industry. business. Or, would you prefer a service franchise that costs less to establish, allows for plenty of family and free time, and generates as good or even better income than the food or retail business? Most potential franchisees are better suited, and would even prefer, a small franchise with limited, but highly skilled, employees. Of course, many of the biggest brands are larger franchise operations, but many of these are corporate units or owned by corporate franchisees.
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Most franchises offer business coaching & mentoring, staffing &training programs, marketing programs and local area marketing support , along with other valuable business support.
There are many franchise myths, and new ones will surely appear in the future, but the reality is franchising is the most successful business model ever developed.
There is also proven systems and procedures that when implemented effectively go a long way to ensuring franchisee success.
Do your research and get advice from experienced franchise advisors who can provide you with the necessary facts so that you're able to make an educated and informed decision about a specific business opportunity.
You are most definitely in business for yourself, but not by yourself. In fact, you are part of a dynamic and vibrant team.
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ADVANTAGES OF MULTIUNIT FRANCHISES Increasingly, the franchise applicants are considering franchises that allow for multiple units. By Cassie McIntyre One major reason for this is people wanting to leave corporate life in order to achieve a greater work life balance while still earning a significant income. Franchising allows someone with management background and business acumen to be in business for themselves, while receiving the training and support necessary to be a huge success. Their options in the traditional workplace may be limited. Or maybe they are seeking a career change, and they recognize the fact that by owning multiple franchise units, or even multiple brands, the road to meeting and exceeding their income goals can be realized much sooner. Of course, franchisors just don’t grant the rights to a multi-unit franchises to just anyone off the street. And some franchisors just aren’t set up to properly cater for and support multi-unit franchisees. In addition to showing that they are adequately capitalized, current or potential franchisees will need to present a strong business argument to support their application. One of the best ways to demonstrate that is by already being a tremendous success in a single unit franchise. Many franchisors require this as the first achievement on the path to MultiUnit ownership.
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Below are some terrific benefits of More efficient and flexible multi-unit franchising: staffing. Profitability and overall success Because multi-unit franchisees becomes accelerated. are typically geographically adjacent, employee illness and leave of absences can be covered The expenses per unit decrease as you're able to spread the costs more effectively by shifting over multiple locations. This frees employees from one location to another based on necessity. up your budget for additional marketing or training for a more Employee holidays are more productive staff. flexible as well with the ability to cross cover. Marketing and advertising is much more cost efficient. Leveraged buying power. In addition to getting a wider return Substantial savings can be on your contributions to head realized when you are purchasing office marketing funds, your supplies for multiple locations as marketing can be leveraged to opposed to only one. For provide a greater return on investment. By spreading the cost example, office and washroom across more units and simply by supplies can be bought in bulk, and then broken down and divided having more units in the area covered by your marketing, multi- among the locations. Also, slower unit franchisees generally find they selling products can be shifted to a higher volume location for quicker reduce their marketing cost per sales if necessary. sale considerably. Multi-unit franchising certainly may not be for everyone. However, for a seasoned business person with No need to attend training multiple great management and people times. The franchisee has plenty skills (and sufficient net worth and of hands-on experience by way of liquid assets), this can be the operating a single-unit franchise, perfect investment vehicle that can provide a very rewarding career and he already is following the proven system. Time is money. Or and rapid success-while building their own business empire. as Donald Trump says, “time is more important than money” Less assistance and training needed from the franchisor.
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Modern Franchise Magazine | 31
THE FRANCHISEE & THE LOCAL COMMUNITY The relationship between a franchise owner in the community plays a critical role in the growth of the individual franchise. It can even mean the difference between success and failure for the franchise.
Therefore, it is crucial to reaffirm that the franchise is a positive participant in the community, not a hostile entity. The more the Therefore, it is important for community sees the franchise franchise owners to work toward name associated with positive building a strong relationship with contributions to the community, the community, rather than falling the better the image of the into the error of relying solely on franchise. the franchisor's large scale marketing campaigns. Combating Negative Marketing Combating "Outsider" When franchisors put together Resentment large scale marketing campaigns, they do so targeting It is common, especially in demographic groups that will smaller communities, for benefit the most franchises (and residents to view any brand thus the brand). However, what is franchise as "outsiders". The good for most may not prevailing view is that the necessarily be good for all. This franchise, representing big is especially true as franchisors business, has come to take begin to push the envelope with business from local merchants. "edgy" ads aimed at young consumers. Obviously, this viewpoint is at least moderately erroneous, These sometimes risquĂŠ since most franchise owners advertisements play well with establish their businesses in the younger generation, but may play communities in which they live. poorly among older consumers, Thus franchises are locally especially in more conservative owned and operated and don't regions. The perception of represent an external interloper immorality in the brand can into local business. create a negative image of the individual franchises in these Even if a franchise owner has areas. Once again, the lived within the community for his relationship between the or her whole life, they may still be franchise and community confronted with this mindset. becomes a deciding factor in how the franchise is received by the public. 32 | Modern Franchise Magazine
Creating a Positive Relationship The only way to build the type of solid relationship with the community that is necessary for franchise success is through active participation. Community affinity is short lived. Since public opinion is easily swayed, it is essential that participation in the community not only be highly visible, but also be fairly constant. There are numerous ways that a franchise owner can become visibly active in the community and build a positive image for the franchise. The most obvious is involvement with local charity work. This involvement should extend beyond simple direct donations and should include contributions of product/services for charity raffles, contribution matching, etc. - anything that gets the franchise name associated with positive community action. Supporting education and extracurricular events for young people is also an excellent way to promote a positive image. Your franchise should be sponsoring little league teams, getting the franchise name on band calendars, be involved with fund raiser events, and any other means of visibly supporting the activities of the community at large.
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Modern Franchise Magazine | 33
modern franchise A HOME BUILDING FRANCHISE WITH 2 YEARS OF WORK READY & WAITING FOR THE RIGHT FRANCHISEES. Starting a home building franchise from scratch has provided some interesting challenges as Mike James from Micheal Polo Homes explains. 1. What inspired your business idea? MPH is part of a strong and exciting industry. Having constant contact with people from all walks of life, creating thier dream home and realising their personal vision, combined with an environment of working so closely with clients that they become your friends, it is hard not to be inspired.
we needed to find the right strategy to tackle the increased work load that we had created. In the back of our minds however, we felt that franchising was a viable option as the industry we operate in is a very fragmented except for the largest players. The top 100 builders now hold around 40% market share. But there are around 50,000 other buidlers fighting for about 30% of the total market, with owner builders comprising most of the rest.
2. How did you know franchising was right for you The disadvantage of these and what ultimately smaller business structuctures influenced your decision? purchasing power, state of the In addressing our future growth art marketing and innovation is plans we engaged the services restricted, so we decided that of a leading franchise consultant. we needed to become a top 100 builder ourselves. We were open to
The franchising system we have created with the assistance of our franchise consultant provides the advantage of buying power, innovation as a group to be at the fore front of market trends, professional marketing campaigns, long established industry experience, all whilst maintaining the personal level of service to our clients as they will be dealing directly with an owner of the business. 3. What previous experience did you have in the business before franchising?
Having come from a long line of builders in the UK and Europe, on both sides of the family, building & design have been in our blood. This extensive recomendation for the most In this assessment of the industry and technical applicable path for our company. industry franchising was the right knowledge and our broad decision for MPH. business experience, enables Having worked with Maxiom’s us to direct the MPH business marketing people to grow our well into the future. business as quickly as we have, 34 | Modern Franchise Magazine
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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?
Michael Polo Homes lives by its’ service promise designer homes “built on time and on budget; every time� .
4. How long did it take to develop and set up your business? Whilst we have had over 30 years building & business experience, franchsing took us some time to learn and we spent over 2 years setting up the franchise system. Developing our business is constant and always will be, everyday we are developing more and more.
6. What challenges did you face in setting up your franchise?
The biggest challenge in setting up a customised franchise system is the amount of variables to work through. This challenge can be overcome as long as you maintain the intergrity of your company values at every decision point, and make a decision that best provides the oppotunity for both 5. What was the driving force the franchisee and the franchisor to make healthy profits so the behind your decision to business system is sustainable franchise? in the future. Sales growth left us no option Working with our franchise other than to expand. Our decision to franchise was based consultant was fantastic, on wanting to maintain product combining our concepts and visions with their franchise quality, engage people with a true passion for their work, have industry experience, resulted in a franchise system that we are strong technical knowledge and personalised service to the 100% comfortable with and client. All of this can be achieved believe in. through the franchise structure. 24 | Modern Franchise Magazine maxiom
We are looking for people to join our team who are passionate about servicing clients, who ideally have a building background or who have been involved in some area of the industry, and who have a keen eye for detail. More important is a can do attitude and someone who enjoys being creative. 9. How many units of your franchise do you plan to establish in Australia? Over the next 3 years we plan to establish 18 franchises and 40 within 5 years. 10. Do you have any plans for overseas expansion? At this stage we have no plans for overseas expansion, though we have already had enquiries. However, at this stage we intend to make sure that our franchise system is succesful in Australia and that we meet all our targets for growth and customer satisfaction before we look at other markets.
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WHAT TO LOOK FOR IN A FRANCHISOR When considering a franchise there are several things you should look for in a potential franchisor. Here are 6 key criteria that you should check out right from the start. There are many factors that you should consider when choosing which franchise is best for you. While this list is by no means comprehensive the following are 6 key factors you should consider. 1. Attention to Your Needs This will be apparent right from you initial enquiry. If you find that the franchisor is laid back or complacent, takes thier time to get back to you or send information, you’re better off without them. For a franchisee to make money, it is essential that the franchisor act as the driving force. A non-responsive franchisor is better left untouched. 2. Adequate support Since you’re entering unknown territory, it is the franchisor’s responsibility to ensure that you are adequately equipped to run a successful unit. And that means providing adequate operational training to your staff, implementing a solid marketing and communication plan for the brand and advising you on how to run a profitable franchise business. In fact, some franchisors help with the real estate decision and financing requirements too. 36 | Modern Franchise Magazine
At the time of reviewing the terms of the disclosure document and franchise agreement, be sure to understand the implications if you part ways at any stage. This is important business franchise information
5. Supplier Arrangements
4. Past history
Be sure to speak with several existing franchisees to get their perspective on what it is like to partner with the franchisor. If they seem satisfied on the support they receive, as well as the performance of their business, the opportunity is probably worth your consideration too.
Some franchises are based around the franchisor supplying all the components of the franchise and ongoing supplies. Make sure they can deliver over the longer term, that there are solid supply arrangements in place and that 3. Financial soundness the price you pay is competitive. How many times That’s a tell tale sign, if any. do you hear of a franchisee Make sure you go over the complaining about the fact they financial strength of the franchisor in great detail. Every pay more from the franchisor or the nominated supplier that they franchisor will sell you the can get as an independent success stories of other business. Imagine the franchisees - while you may repurcssions if a major chain listen to that with interest (and verify it with the franchisee), you decided to start a price war like Coles & Woolworths with must also ensure that the bread. It could quickly kill your franchisor is itself strong enough to stand . Don’t assume profitability. that there’s always a sound 6. Attitude of other company behind a strong brand. franchisees
A rapidly growing franchisor might brag about how they’ve grown in recent years. That’s a red flag for you - numerous new franchisees are usually accompanied by a number of that exit the system. Check how many franchisees have left the business, and what happened to them.
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Modern Franchise Magazine | 37 maxiom
WHY FRANCHISEES MUST BAND TOGETHER AS ONE Franchisees say they need better protection and fairness built into franchising legislation, but like the 99% movement seem to be disjointed and poorly organised in articulating and lobbying for their cause. Recently we have seen the launch of the National Franchisee Coalition of Australia under the slogan “opportunity not opportunism”. The Franchisees Association of Australia also claiims to represent franchisees under the banner Pro Franchising Not AntiFranchisor”.
So if franchisees need assistance where do they go if they feel that the FCA may not have their best interests at heart? Neither of the other organisations seem to offer any tangible support.
So franchisees have 2 options. Form, join and financially support one organisation that offers a full range of franchisee support And third, the Franchise Council of services, or join the FCA and Australia also says it represents influence change from within. franchisees and franchisors. Whatever the option franchisees So who does a franchisee turn to choose, they must stick together. when they want representation, advice, assistance or just general The risk is of course that by having information? separate associations representing franchisees and The first two have websites, but franchisors, that an “Us vs Them” with very little information, just situation occurs, when both basically a slogan and contact parties need to work together to details. make franchising even stronger than it is already. The FCA on the other hand is a well organised, polically and But like any “partnership” it comes commercially astute organisation. back to the willingness of the parties to make it work, even if one Many franchisees believe, rightly partner is more equal than the or wrongly, that because the FCA other. was established initially to represent the interests of The ACCC admits it receives in Franchisors, that they aren’t well excess of 500 complaints a year represented by the FCA. from franchisees.
declined by around 1400 or 2% according the the FCA website, new complaints made each year are way too high and in most years not that far behind new franchise sales. If you also consider that a franchise term might be 5,10,15 or 20 years, than at 500-600 complaints a year and growing, then up to 10% of franchises believe they have reason to complain to the ACCC at some stage during the life of their franchise agreement. If you take company owned units and larger multi-unit operators out of the equation then figure increases! And this isn’t just complaining about minor issues to their franchisor. This is significant enough for them to complain in writing to the “umpire” to investigate if prosecution of the franchisor is warranted. It is significant enough for all stakeholders in the franchise industry to sit up and take notice. And if franchisees don’t get the fairer deal and better protection they are seeking, then who else have they got to blame?
This might not sound huge, but when you consider that in 2010 overall franchisee numbers
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WHAT ARE THE ATTRIBUTES OF THE BEST & MOST SUCCESSFUL FRANCHISEES? Are you the right kind of person to start up a franchise opportunity? Then consider the following attributes of the most successful franchises. By Ray Morehead If you are considering of buying a franchise, you need to understand the psychology that is behind a franchisor's decision to award a franchise to the "right" person.
Regardless of which specific franchise you are considering, you need to possess and exhibit some basic, key skills that will fuel the overall potential for success of your franchise business.
It is also imperative that you are passionate about the product or service and are completely committed to executing the company's marketing plan. If not, consider starting your own business instead.
There are certain essential skills and personality characteristics that encompass a "model" franchisee which franchisors absolutely require, so before you go any further down the road to franchise ownership, you had better do a self-inventory and make absolute certain you have them.
Franchisors have spent plenty of Superior People Skills. time and money researching what the profile of the ideal You need to enjoy working well franchisee looks like. with others as a team. If you don't like interacting with others, Here are the traits of most you'll become stressed, your successful franchisees: employees and customers will sense it, and ultimately your Commitment to implementing business will suffer. and following a proven Obviously, if you are considering system. Instead, display the positive a handyman or home behaviour that you want your improvement franchise and Franchise systems are in place employees to model when you've never used a hammer or because they work. It's that dealing with your customers. A a saw, this could be a serious happy, positive, "customer is simple. If you're nickname is problem. always right" attitude must "Genius" because of your prevail at all times by you, your brilliant, super creative ideas Or if you are looking at a certain that you come up with daily, then managers, and the employees. business to business franchise, franchising is not for you. but you hate selling, you are all Strong Work Ethic. but guaranteeing misery. But Franchisors want implementers those aren't the kind of skills that not entrepreneurs. A must for any potential I'm referring to here. franchisee. If you don't possess Go back and read the previous strong, disciplined work habits sentence again. and have burning desire, you might as well work for someone else and punch a time clock. 40 | Modern Franchise Magazine
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Any successful franchisee will Well-Capitalized. tell you that they work until the job is done. They don't quit when Obviously, franchising costs can the whistle blows. be significant. Franchisors will not recruit franchisees that are They'll do anything it takes to get under capitalized. You're facing the job done. Having true an initial investment, the passion to work for yourself will franchise fee, and ongoing tend bring out this work ethic royalties due to the franchisor automatically. plus operating capital.
Make sure you have a good team of advisors that have franchise specific experience and qualifications. Many franchise consultants can help you with this. Franchising is a great business model if you have the necessary skills and mindset to follow a proven and successful formula.
Team Oriented
Royalties are usually a percentage of the income that As a franchisee, you are part of your business generates, which a team in which you have a vital you in turn pay the franchisor, typically ranging from 3%role. This role includes implementing the systems of the 7%. Don't let these costs scare you, though. In return, you are franchise, its’ marketing plan, receiving the franchisor’s staffing plans and operating support, and the benefit of its’ procedures. brand, which is significant. The whole franchise network requires you to do this well or it Many franchisors offer can affect the success not only assistance with financing. You will also be able to benefit from of your franchise but others better pricing and more within the business. favourable purchasing terms as Understanding you are part of a a result of being a franchisee. team and how important your Research. role in implementing the franchise systems even if it contradicts what you have been Seek out assistance. It's virtually used to in the past is something impossible to conduct a that can’t be understated. thorough franchise search, undertake due diligence, and Put simply, it is usually the financial management alone. difference between success and failure.
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If you truly possess the characteristics spelled out above, chances are you have a solid foundation to be a successful franchisee.
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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: In line with your organization’s strategy, we will formulate, lead and implement a learning framework that is linked to business performance, maximise individual capability and builds leadership competence. Coach business leaders in your organization so as to ensure the optimal delivery of all tactical people programs and to ensure business results are achieved.
As accomplished practitioners your business to ensure business they can help your people display results are achieved. effective influencing skills, the Attract & Recruit the Best ability to inspire and engage others Talent and the capability to lead and Provide an Environment empower change in a for Your Talent to Thrive performance driven setting. Optimise Individual Capacity With extensive experience in Build Influencing Skills and helping organizations analyze their Leadership Capacity needs and design strategic Ensure Business Results learning and development Are Achieved solutions, our highly qualified See the Results in Your consultants will work closely with Bottom Line you to determine your company’s individual requirements. We can design tailored solutions for individual employees, project teams, departments and entire companies.
We will help you implement a suite We can also help you develop a of HR practices and policies to learning culture, while fitting in with reflect contemporary, consistent the overall strategic goals of your best practice. organization. Our consultants are individuals Our programs are strategically who have carved their careers within leading, complex business aligned to the commercial aims of environments.
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If you want to optimise your business, give Clarify Training a call.
CLARIFY T R A I N I N G
CT
Clarify Training Pty Ltd Level 2, 1 Riverside Drive Melbourne Vic 3000 Ph: (03) 9982 4545 Fax: (03) 9982 4546 info@clarifytraining.com www.clarifytraining.com
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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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Modern Franchise Magazine | 43
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.
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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| |45 3
SALES & MARKETING SKILLS YOU WILL NEED AS A FRANCHISEE When starting a new franchise operation, there are many things a franchisee needs to organise attend to and manage, and that’s before you even open the doors. While all the pre-opening issues are important, possibly none is more important than having a firm and well prepared sales & marketing plan. By Aiden Williams
It’s About Relationships Put simply, selling and marketing is nothing more than the creation of a new relationship. It involves marketing – to bring in qualified leads to your business and reduce the time and cost of sales; and sales – which is the conversion of those leads into paying customers.
Still, what all businesses, franchised or not, have in common is the need to bring in customers. But not only bring them in, keep them coming in, spending more, and bringing more people with them. Sales and Marketing are learnable skills. To some franchisees it comes naturally, while others break out in a cold sweat, just at the thought.
24/7 & More Marketing is not just advertising and sales is not just closing the deal. It's more like the air you breathe, all-pervasive, present all day and every day - in every transaction, and thanks to the Internet, email and social media it has become a 24-hour activity, working even when your franchise business is closed.
This is also where your Franchisees join a franchise Different business types will franchisor’s assistance is system because they have a firm invaluable. While Head Office require different sales and belief in the product or service, can’t do it all for you, their marketing skills. Professional but few have a strong service franchises require a advice, support and experience different approach than fast food background in sales and will help you in the areas that you marketing. or retail, for instance. are weakest. Whether you do business from a shop front, an office, if you’re mobile or work from home all dictate what sales and marketing techniques you will need to use.
Sales and marketing skills are the very skills they need to sell themselves and their services. Sales and marketing skills are the skills they need to keep the business alive.
If you are unsure about anything ask for advice.
Restaurants need to attract customers using a different approach than health care or trades services.
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Defining the Purpose
Multi-Faceted
Successful marketing begins before you open your business.
It is important to understand that effective marketing involves not only advertising, promotions, 1) Be sure you know email marketing, direct mail, and exactly who you're the usual methods of reaching selling to, what it is out to potential customers to you're selling, and what distinguish your business from problems you solve for the competition, but also training your target markets. your employees to market in every transaction, the use of 2) Redefine the word social media and mobile "selling" so that it is marketing strategies, and active comfortable for you and involvement in your community. for your customers.
Technology is continually being Your franchisor will help you with developed that helps you make pre-opening and grand opening contact and stay in contact with more people. or launch promotions and
activities, as well as training in how to continue marketing after the initial euphoria fades. Make sure you utilise all your franchisors’ marketing tools, support and draw on their experience. Your fellow franchisees are another source to draw from. The more you succeed, the better it is for them, as the brand achieves greater market penetration, recognition and trust.
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Nothing to Fear Many new franchisees are also uncomfortable with the notion of selling their concept to others. It's scary enough being the new owner of a business without having to approach prospective customers and sell them on the business too - especially when the business is their own, because then the rejection feels more personal. Though remember, there should be no fear in sales and marketing, because creating a new relationship is something that we already know how to do!
This technology can also assist you in reaching more of the people or businesses that are likely to want to buy your products or services. Before you can begin selling, you will need to develop relationship with your market, build trust and value. The benefit of joining a franchise is that your franchisor has already built a reputation which hopefully means that your target market is already familiar with your business, and percieves its value and trusts your brand.
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RECRUITMENT SOLUTIONS THAT DON’T COST THE EARTH We believe many recruitment solutions are overpriced. Finding you excellent candidates shouldn't cost the earth. Given the high calibre of our talented community, our costs & services provide fantastic value for money. Our Candidates
Your Opportunity
The Cost
Our members are top performers; high-fliers looking for challenging, meaningful and fulfilling careers opportunities.
If your opportunity fits the bill we'll bend over backwards to help you find excellent candidates from within our community.
We believe many recruitment solutions are overpriced.
We're talking the top 2% - high achievers. Thousands of ambitious young professionals with widespread corporate experience & training. What distinguishes these people is that they don't want to be small cogs in large machines. They want to do work that matters, they want to have a significant impact in their organisations. They want to Do Something Different. They want to make a difference. In fact, they want to BE the difference.
Unlike job listing sites and many traditional recruitment companies we focus on quality over quantity. Listings get a manageable number of exceptional applications. Our team are experts in their field of specialty, most having over 10 or 15 years experience in that field before becoming a recruitment expert.
Finding you excellent candidates shouldn't cost the earth. Given the high calibre of our talented community, our costs & services provide fantastic value for money. See our ad -on the next page or visit our website: And see what a difference we can make to our organisation!
This way we can help you get the best people who can make a difference to your business.
www.metrica.com.au 48 | Modern Franchise Magazine
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www.metrica.com.au RECRUIT AS MANY STAFF AS YOU WANT FOR ONE LOW MONTHLY FEE Full Service Recruitment For as long as you are a member we will replace any staff that leave regardless of the reason free of charge No Hidden Costs Your Own Recruitment & People Management Mentor Professional Recruitment Specialists
www.metrica.com.au maxiom
Modern Franchise IntelBuildMagazine Magazine| 49 |3
FRANCHISE OPPORTUNITIES AND THE RELEVANCE OF BRAND REPUTATION It's a well-known sales technique to create urgency in order to get prospects to make a decision By Nick Strong When I refer to the names Benefit of brand recognition McDonalds or Dominos to you in a franchise business what thoughts pass through your mind? Combined with a franchise system, a strong branding can Do you think of a popular potentially convince a buyer to Scottish family name and a your favour when selecting popular game played with little between a brand popular black wooden blocks? franchise opportunity or an unbranded option. I would suggest that for lots of people the first idea in their This only works as long as a head was in reality two wellgood message is looked after known fast food eating places. across the franchise network This really is the power of regarding the brand reputation branding. to ensure that potential shoppers have a very favourable outlook of Branding is significant in support the business regarding of the simple reason that a expected value of services or possible buyer may already products supplied. have a preconception on the subject of what to anticipate Generally, customers ought to from the business. feel secure to make use of any franchised store in the familiarity This may of course perform both that their expectations will be ways: fulfilled about that brands quality and service, regardless of whether they have never up to that time been to that shop.
Disadvantages of brand name recognition in franchise opportunity business Its worth considering that if a single store delivers inadequate service then this could damage the entire network in the customers mind. In these days of social networks and open on-line discussion, inferior service can increase like wildfire. A generally publicised You Tube video focusing on a particular air carriers weak handling of a travelling singers guitar shows the power of this open communication plus the affect it might have over a brand name.
While the film was probably enormously comical for the eight million odd people that viewed it, the stocks in the air carrier bombed 10% once this film was let loose costing this company The brands status provides them $180 million and incalculably confidence. more in lost buyer loyalty.
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SAVE THOUSANDS ON BUSINESS DOCUMENTS & MANUALS Just one case in point of how an isolated event might turn out to be really costly to an entire network. Therefore what does this mean to me?
Sensibly measured, the branding a franchise business is often of significant advantage, provides belief and attracts customers.
Only be certain you are properly educated of what is being believed in regards to the brand When thinking about franchise reputation and how the franchise business opportunities, operator handles adverse investigating the businesses brand status is something you'd media. do nicely to consider. What do customers think about the brand? What is being said on the internet in debate forums and social networks? Even though it is evidently advisable to look at a balanced view (as frustration can often be expressed a lot more loudly than satisfaction), these issues can make a difference when choosing where to place your hard-earned investment. It’s worth remembering though that no one expects perfection, although they do count on wrongs to be righted quickly and effectively.
QUALITY BUSINESS DOCUMENTS, MANUALS, POLICIES & FORMS TO SUIT MOST INDUSTRIES. IMMEDIATE DOWNLOAD OR TAILORED TO YOUR BUSINESS NEEDS
CLICK HERE Franchise Procedures Operations Safety Quality Environmental Handbooks Documents & Forms Training HR & Employment Maintenance ___________ Simple to Follow Plain English Electronic & Hard Copy Secure Hosting if Required Updates
www.maxiom.com.au maxiom
Modern Franchise Magazine | 51
NEW BUILDER PARTNER PROGRAM Builder Partner Program We are seeking quality registered builders to build our designer homes in your region. Design & Marketing
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.
Micheal Polo Designer Homes offers a sales, marketing, design and estimating service that will ensure enough genuine opportunity to build a good profitable business within your own region.
How does it work?
Intensive initial training program and ongoing professional development
Micheal Polo Designer Homes Your Local Builder gives you an opportunity, at a low cost, to develop your own business, backed by a comprehensive design and marketing structure and professional company culture.
We know and understand what good small builders do best, build good homes.
Local state office assistance for the franchise lifetime
Time is often lost on the small things. Time that could be better spent driving your core business, building homes.
Professional Marketing & Sales
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.
National Purchasing Many builders feel that they have agreements and trade to do everything within their own sharing business, often spreading themsleves thinly and working To find out more, simply click the many extra hours, just to get link below and fill in the “become things done. a Micheal Polo Designer Homes Builder enquiry form�. Being part of the Micheal Polo Designer Homes team means having support structures in www.michealpolohomes.com 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. Michael Polo Homes
The opportunity to become part of an innovative market leading home builder has arrived.
52 | Modern Franchise Magazine
Estimating service
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MICHAEL POLO HOMES
DESIGNER HOMES BUILT ON TIME AND TO BUDGET...EVERY TIME! BECOME A BUILDER PARTNER NOW maxiom
Modern Franchise IntelBuildMagazine Magazine| 53 |3
TRAINING FRANCHISE EMPLOYEES - WHY YOUR EMPLOYEES BEHAVIOUR AND ATTITUDE CAN DETERMINE YOUR ULTIMATE SUCCESS By Elise May
Once you’ve signed the franchise agreement, one of the challenges new franchisees face is hiring and training employees. The success of each franchised unit depends on the quality, performance and behaviour of its employees.
In other words, once you’ve conquered the marketing challenges and have customers coming into your business, the ultimate success of your Training staff to be effective at franchise business is directly customer service, marketing and related to the quality of your creating a positive brand employees' behaviour and experience is a challenge for attitude. And of course your own The challenge is particularly any franchise operator, and the example you set for your relevant in retail concepts, or especially new franchisees with staff. professional & trade services little or no background in human where the quality of staff resources, marketing or Any franchisor truly interested in performance and customer relations. their franchisees' success will communication with customers provide training in how to hire, is vital to the success of the Everything your staff does train, develop and retain franchise. Front-line employees makes an impression on each employees. are the face of the brand, customer - creating a positive dealing directly with each experience, driving satisfaction During your investigation of the customer every day. And your and loyalty, or driving them to a franchise and due diligence, “brand” is the experience competing brand. As a franchisee candidates should customers have in their dealings franchisee, it's all about fully investigate their potential with your business. managing the "customer franchisor’s services and experience," and training staff in support that they provide in this Creating productive employees the ways to deliver it, in every area; franchisee candidates with a positive attitude is a key interaction with customers, every should ask the brand's existing ingredient for success. In fact, transaction, every day. franchisees about the quality of many experienced franchisees instruction they also received on follow the adage: "Hire for induction into the system and on attitude, train for skills." staff training once they 54 | Modern Franchise Magazine
A good attitude goes a long way in a team-oriented environment; skills can be learned. Attitude is inherent.
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commenced operation. Also ask about what problems they encountered, both expected and unexpected, what they did to resolve them, and how helpful the franchisor was in providing support.
themselves under time pressure regulations if they want to stay and need the additional staff out of trouble. A minefield of “yesterday." potential legal traps and penalties can trip up even the Balancing the urgency of filling a best-intentioned employer. If you position with finding high-quality need help, ask your franchisor, employees is an ongoing or if you don't know what to ask, challenge. Poor hiring decisions, say, or do, or what not to, With OHS being an important and insufficient training is certain consider contracting with an part of any staff management to have an adverse effect on outsourced specialist who can plan, also check what advice your business performance. help you through the minefield and support your franchisor will without setting off any of the provide. There are very hefty If you hire for attitude, then mines. penalties for failure to comply training for skills is both with OHS Laws, Standards and something the franchisor can Using an outsourced agency is Regulations. These are going to assist with, as well as your also a good way to find prebe much tougher and more franchise in its day to day vetted employees for your strongly enforced with the operations. This training will franchise. If you can find an introduction of the new National differ from franchise to franchise agency that understands your Standards in January 2012. and between industries, as business and your needs, it can every business will have unique lead to excellent results. Make Even failure to have basic training needs. This is where it is sure you fully explain what you paperwork up to date will attract best to rely on the guidance of are looking for in an employee large penalties. Your franchisor your franchisor in how to best so the agency knows what type is the expert in your industry so train your staff. Franchisors have of person to send you. It costs a find out what support they give been through this hundreds or little more than doing it yourself, their franchisees in all aspects of even thousands of times and but more often than not, the staff management that falls should have distilled best additional time you spend under the human resources practices in how to train interviewing, doing paperwork, umbrella. employees most effectively for HR & OHS compliance is better their brand. and more profitably spent on There is an old saying in staff your business than on these recruitment - "Hire slowly, fire Managing staff can be an art. tasks. quickly." Taking the time to Franchise operators must not screen and interview new only be adept at judging employees is crucial. Many character, they also must comply small-business owners find with a long list of laws and
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Modern Franchise Magazine | 55
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 | 57
WOULD YOU LIKE A CONSTANT FLOW OF NEW CUSTOMERS? No matter what your business or industry we can help you consistently gain more customers and build your business and your brand - FAST!
Run with the big dogs...and WIN!!! Consistently Win New Customers Be Seen as THE Experts in Your Industry Strengthen Your Client Relationships Expand Your Database by Thousands or More... Develop Profitable Alliances Look More Professional Build Your Brand Optimise your ROI
58 | Modern Franchise Magazine
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NEW MEDIA SOLUTIONS THAT BRING RESULTS 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 300,000 subscribers to our online you to incorporate rich media such publications, and growing daily, the as links to your web site, video & opportunities for our clients to audio, including YouTube, Flash, exploit permission marketing are and our publication are now html5 enormous. and JSS javascipt coding enabled which means that almost anything Sponsoring a magazine relevant to can be included on a magazine your industry is a terrific way to page. Plus each page and each been seen in the market place. article is catalogued so that you With many more companies can post them or share them via targeting email marketing it is social media. sometimes easy for your message to get lost amongst the Advertisers also get the same plethora of messages received interactive functionality, meaning everyday. readers can immediately click through to your site for more By publishing an informative and information or to take up your offer. appealing online magazine, businesses now have an online Maxiom offers enhanced communication with your target
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market and is supported with email marketing campaigns and other Internet marketing tools all included in the packages available. Every publication has its own dedicated account manager and marketing mentor whose sole function is to assist our clients maximise the effectiveness of their New Media marketing solutions. You can find out more about how Maxiom can help your business grow by contacting one of our consultants:
maxiom Maxiom Group Pty Ltd Level 2, 710 Collins Street Docklands Vic 3008 Tel: (03) 9097 1606 Fax: (03) 9097 1607 Email: info@maxiom.com.au www.maxiom.com.au
Modern Franchise Magazine | 59
The Siimon Reynolds Strategic Entrepreneur
THE AUSTRALIAN MARKETING EVENT YOU SIMPLY CAN’T AFFORD TO MISS! This is the business workshop of the year. They have organised a lineup of expert business speakers over the three day event. These are the professionals that Siimon Reynolds uses to create businesses online and in the real world. They have a multitude of disciplines involved and will cover everything from copywriting, pay per click advertising, exit strategy, backend systems, search engine optimization, webdesign, sales technique, social media, remarketing, public relations, franchising, online marketing and raising finance. You name it - they have an expert that specialises in it!
The Next Siimon Reynolds - Strategic Entrepreneur Seminar will held in Melbourne - coming soon! Stay tuned for the dates... AND YOU WON’T BELIEVE THE PRICE!
60 | Modern Franchise Magazine
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“This is the best investment any Australian business can make in their future� FREE BOOK DOWNLOAD & 7 FREE VIDEOS When They Zig, You Zag by Siimon Reynolds
Complimentary gift Thanks for taking the opportunity to grab this fantastic book! Simply go to our website and fill in your details and we will immediately email you a copy of Siimon's book. We will also send you our bonus series of short business building videos that are packed with tips and tricks for success. Over the last 25 years, Siimon has created multimillion dollar businesses from the ground up and is now teaching other entrepreneurial business people his systems for success. He started the Photon Group and grew that company to be worth over $500 million while employing over 5000 people so he can definitely help grow your business. Siimon has a passion for helping entrepreneurs build and grow so definitely read his book and check out his short videos asap.
For more information, to download the book or watch the videos visit our website https://fortuneinstitute.infusionsoft.com/go/zigzag/Maxiom/ 24 | Modern Franchise Magazine maxiom
Modern Franchise Magazine | 61 maxiom
About Modern Franchise Magazine Publisher Maxiom Group Pty Ltd 2/710 Collins Street Docklands Vic 3008 Australia www.maxiom.com.au Editor Tam Hannan Digital Magazine Created By Modern Franchise Magazine Online www.modernfranchisemagazine.com Advertising Enquiries (03) 9097 1606 (within Australia) + 613 9097 1606 (International) modernfranchise@maxiom.com.au Editorial, Media Releases & Article Submission editor@maxiom.com.au
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DISCLAIMER Information published in this online magazine has been compiled with due care and attention, but it does not clam to be exhaustive. Maxiom Group and/or Modern Franchise Magazine cannot be held responsible for the content of external sites reached via a hyperlink from this site. We accept submissions from outside contributors, and whilst great care is taken, the author of the submitted article is responsible for what they write, and Modern Franchise Magazine will not be liable for any loss or inaccurate information or any other omission or error by outside contributors. This online magazine is provided for information only. It is not intended to replace a consultation with a qualified industry professional. Modern Franchise Magazine does not accept responsibility for any loss, damage or injury that arises from the use of this online publication.
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10Franchise | Careers Magazine Modern Magazine | 63
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