Franchising Magazine, July / August issue 2012 by Cirrus Media

FR.JULAUG12.PG001.pdf

BUMPER ISSUE

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+FREE MAG

BRISBANE & MELBOURNE EXPO PREVIEWS

Franchising www.franchise.net.au

Jul/Aug 2012 VOL.25/No.4

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Contents july–august 2012 |YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE

40 52

62 Inspire

Issues

16 Brewing success New franchise Adore Tea 20 Windows to the future A Luxaflex licensee 23 Building the brand Hire A Hubby franchisee 26 Strategy for success Getting good at retail 30 An indulgent investment The Endota story 32 Action man Living the dream 36 Sweet dreams come true Great taste of business

101 10 steps… to a profitable business 107 So you want to be… A master franchisee 110 Lessons from court Legal case reviewed

Opportunities

Regulars 5 Editorial 6

News

Interview

155 Legal 156 Sketch 158 People 161 Opinion 162 Glossary 163 Checklist 182 Company listings

40 Mexican wave The new look cuisine 52 Unleash your passion Love pets, make money 62 Give green a go Eco-friendly franchises 70 Rise and shine Bakeries and patisseries 78 Accommodating ambition Skills for the travel world 86 Join the ride! Check out the Brisbane expo 94 Walk this way Melbourne expo preview www.franchise.net.au

How to...

119 Get the data Site selection explained 122 Blueprint for a brand Branding: book extract 126 Making connections Get a social media profile 134 Staying afloat How to manage debt 142 5 steps to quick cash Invoice discounting 144 How to buy a resale franchise What to watch for

144 JUL/AUG 2012 FRANCHISING | 3

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Welcome

Franchising Publisher Martin Sinclair martin.sinclair@reedbusiness.com.au Editor Sarah Stowe sarah.stowe@reedbusiness.com.au Direct: 02 9422 8900 Journalist Danielle Bowling danielle.bowling@reedbusiness.com.au Direct: 02 9422 2667 Sub Editor Richie Kenzie richie.kenzie@reedbusiness.com.au Direct: 02 9422 8851

Bumper issue, packed with goodies

National Sales and Marketing Manager David Strong david.strong@reedbusiness.com.au Direct: 02 9422 2905 Contributing Journalists Domini Stuart Donna Bennett Columnists Greg Nathan Andrew Terry Esther Gutnick Production Co-ordinator Eryk Koziol eryk.koziol@reedbusiness.com.au Direct: 02 9422 2379 Creative Art Director Julie Coughlan julie.coughlan@reedbusiness.com.au Designer Louis Santos louis.santos@reedbusiness.com.au Managing Director Jeremy Knibbs jeremy.knibbs@reedbusiness.com.au Editorial Inquiries Tel: 02 9422 8900 Advertising Inquiries Tel: 02 9422 2905 Fax: 02 9422 2722 Subscription Inquiries Tel: 1300 360 126 Fax: 02 9422 2633 Franchising is a publication of Reed Business Information ABN 132 719 861

SYDNEY OFFICE Tower 2, 475 Victoria Ave Chatswood NSW 2067 Tel: (+612) 9422 2999 Fax: (+612) 9422 2722 www.reedbusiness.com.au

Average Net Distribution Period ending Mar ’12 6,841

All Franchising material is copyright. Reproduction in whole or in part is not allowed without written permission from the Editor. © 2012. Opinions expressed in Franchising are not necessarily those of Franchising or Reed Business Information.

SARAH STOWE Editor

re you feeling inspired to shrug off winter and try something new and exciting? Are you ready to take charge of your career? Well, there is plenty of inspiration in this, our biggest issue for five years, starting with the kikki.K franchise opportunity. There are tales of dreams come true from franchisees, from business coaching to handyman work to retail; and stories of success from new and established franchisors. Whether the appeal of running your own business is all about facing the challenge or carving a financial future to meet your goals there will be something in our Opportunities section to inspire: will you get a taste for the hot new Mexican wave, make money out of a passion for pets, dip into the environmentally-friendly trend, be tempted by an old favourite – bakeries and patisseries, or reserve a place in the hotel and accommodation field? To ensure you get a good look at what’s in the marketplace it really is worth paying a visit to an expo dedicated to the franchising and business opportunities market. Coming up are the two day Brisbane show in July and the three day expo in Melbourne – we preview both events in this magazine. When you’re at the expos take time to pick up some expert advice, either through the seminar program or at the free advice centre. Because getting guidance and tips on the ins and outs of franchising will stand you in good stead – that’s why you are reading Franchising magazine! In this issue we take a look at a recent court case in which the judgement favoured the franchisees with a million dollar award. It’s a pivotal case, and we’ve reviewed what the outcome means to anyone looking to purchase a franchise; this is a must-read. Check out our financial features in this issue too: Kate Groom has pinpointed 10 ways to make your business profitable, we look at how to manage debt, what to look for when considering a resale franchise and how to get your hands on cash – quickly. Add to this features on social media, branding and the role of a master franchisee and you’ll have plenty to keep you reading. And with this bumper edition comes a bonus magazine for free, our popular supplement The Profiler, which gives you a taster of business opportunities and services that could be just right for you.

Are you ready to take charge of your career? Well, there is plenty of inspiration in this, our biggest issues for five years

Sarah Stowe Editor

This year we are thrilled to be celebrating the 25th anniversary of Franchising magazine.

Next month: our special anniversary edition WWW.FRANCHISE.NET.AU

JUL/AUG 2012 FRANCHISING | 5

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News ONLINE NEWS | WWW.FRANCHISE.NET.AU

Subway franchisee faces court The Fair Work Ombudsman has launched a prosecution against the operator of four Subway outlets in Newcastle, in regional NSW, over more than $50,000 in alleged underpayments of 11 young employees. Facing court is Nicole Patrice Dawe, of Medowie, who part-owns and operates four Subway franchise outlets. It is alleged Dawe was centrally involved in underpaying 11 employees at the four Subway outlets a total of $56,585 between 2006 and 2011 and that the majority of the underpayments affected employees aged between 15 and their early 20s. Employees were allegedly being underpaid the minimum hourly rate and some were also underpaid annual and personal/carer’s leave entitlements as well as payment in lieu of notice of termination. The biggest individual underpayment alleged is $18,512. A D _ F R F U R MA Y _ 1 2 . p d f P Dawe was allegedly also involved in failing to comply with Notices to Produce

employment records, keeping proper employment records and issuing pay slips in line with workplace laws, as well as committing multiple breaches of workplace laws. She faces maximum penalties of up to $6600 per breach. Fair Work Ombudsman Nicholas Wilson said a decision to prosecute was made because of the significant amount involved for vulnerable, young workers and the E employer’s failure to rectify the matter. The Fair Work Ombudsman is also seeking a Court Order that any penalty imposed on Nicole Dawe go towards rectifying the alleged underpayments of the employees.

Brian Tap, regional director for Subway Systems Australia, commented on the allegations. “We take any breaches of the Fair Work Act very seriously and we are looking into this disturbing matter,” he said. “Each Subway Restaurant in Australia x ispindividually E r t owned F randaoperated n c by h i independent franchisees; franchisees being responsible for hiring, training, remunerating and managing their staff according to law. “We expect franchisees, as small business owners, to follow all laws and regulations pertaining to operating – the number of Pizza their businesses. We encourage all our Hut pizzas sold over a seven day period franchisees to treat employees fairly as it on the LivingSocial website, making it is in everyone’s best interest to do so and a g 4 fast 1 9 food / 0 4transactional / 1 2 , 3group : 3 0 PM thee largest it recognises the contributions that indibuying deal in Australia vidual staff members make,” said Tap.

s E L a w

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Franchise Legal practises exclusively in franchise law, which means that our clients benefit from our extensive expertise in this unique area of business law. For an obligation-free chat with one of our principal Do your lawyers: solicitors in Brisbane, Sydney or Melbourne, • really understand your franchise system? heath adams, sydney Call 1300 798 501 today or visit www.franchiselegal.com.au • provide practical commercial advice?

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News ONLINE NEWS | WWW.FRANCHISE.NET.AU

NEWS BRIEFS

The Athlete’s Foot steps online Franchise retailer The Athlete’s Foot has launched an online shopping facility on its website after working on the e-commerce project for a year. Part of the RCG Corporation, The Athlete’s Foot offers a footwear fitting service in its 140 Australian outlets and has been at pains to include fitting aspects to the online store. Ivan Hammerschlag, RCG chairman, told Franchising that web customers can answer questions around weight and running style online to get recommendations on appropriate footwear. They can take advantage of a 100-day free return service, and visit their local store for a fitting service too. “We encourage customers to go in store

A Queensland-based air conditioner cleaning franchise, HydroKleen, has signed up 13 new franchisees in as many months and plans to double in size by next year Crust Gourmet Pizza has launched a mobile app, available now on iPhone and Android at the App Store and be fitted, but people want to shop online. We need to offer consumers the ability to shop on the web. “We expect to leverage off the growth in the digital channel, with the aim of delivering both additional sales and conveying our fit and service message in more relevant ways to a new audience.” The move to web sales is also aimed at recouping some of the spend on

overseas online sites, Hammerschlag added. “There has been some leakage to offshore websites and we want to gather some of that business back. Our Shoe Superstore business, which is only small, takes 15 percent of sales on the web. “The launch of the e-store is a pivotal step in the execution of The Athlete’s Foot multichannel retail strategy,” he said.

FRANCHISING MAGAZINE LAUNCHES NEW LOOK WEBSITE To celebrate our 25th anniversary we’ve relaunched our website with a fabulous fresh design and easy functionality.

Scan to go direct to the website

Cake franchise, The Cheesecake Shop, has launched a new 30 second television commercial – its first in more than a decade – highlighting the journey of the cake from oven to customer

Our twice-weekly e-newsletter is also boasting a new look and is packed full of the latest industry news and views, delivered straight to your inbox every Monday and Thursday. Features at www. franchise.net.au include: - A lively home page which showcases the latest and best from the franchise sector - Great new sections which allow you to source the stories, news and advice

that interests you - You can view and add comments on features and start a discussion - It’s one simple step to join our Facebook and Twitter communities - Click on the Magazines tab and read our digital editions - Source franchise brands using our Directory, updated with Google maps - Look for business support in our new Suppliers listing

WWW.FRANCHISE.NET.AU

BSR Group has awarded its high flying retailers and suppliers at its annual conference in Santa Monica, Los Angeles, with Betta Home Living Wilsonton from QLD taking out the Large Branded Retailer of the Year award for stores larger than 650 square metres Muffin Break has scooped its third consecutive win in the Roy Morgan Customer Satisfaction Awards, putting it in the lead to claim the title of Coffee Shop of the Year A new president, David Allen, will head up the Australian arm of Danish jewellery brand Pandora from July 1. Just Cuts is offering a new retail concept in the form of hair cuts at a kiosk, with the first instalment being unveiled at the Westfield Doncaster shopping centre in Victoria The chairman, and long standing board member of Zarraffa’s Coffee, Tony Williams, has resigned

“It is important

for persons looking at buying into a franchise to put [in] careful thought and investigation as well as getting proper legal and financial advice.” - Tony Garrison, partner at law firm HWL Ebsworth, www.franchise.net.au

JUL/AUG 2012 FRANCHISING | 7

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Sharpen your pencils, the distinctive kikki.K brand is looking for franchisee partners to help grow the business

Q&A

with kikki.k

he retailer kikki.K is a

multi-award winning design brand with a Swedish heritage. Its price points range from as low as $1.50 for a felt tip pen up to $500 for items in the premium leather range, Stockholm. At the helm are creative director Kristina Karlsson, and her partner, CEO Paul Lacy, who began the business in Melbourne 12 years ago. Paul Lacy answers our questions. Why is the brand successful? “Beautifully designed stationery is a small everyday-use luxury, a

8 | FRANCHISING JUL/AUG 2012

little indulgence often under $50 that just makes people feel good. It’s a more affordable option than say a new clothing outfit, but can make people feel just as good as an expression of their style. Our business has grown based on customers’ love of our unique products and passion for stationery and Swedish design.” How committed are you to franchising as a model, rather than just a means to finance overseas expansion? “There are about 10 Australianbased stores we’re looking to sell as franchises at the moment – Belconnen, Kotara, Macarthur,

Geelong, Brighton, Bowral, Erina Fair, Tuggerah, Glenelg and Hyde Park. Franchising these boutiques will provide us with additional capital to support the funding of further international expansion

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throughout Asia and beyond. We clearly understand what is required to be a world class franchisor and we’re completely committed to franchising as a model and to supporting the success of the people who join our team as franchisees. “We’ve been assessing the potential of franchising for years because of the unsolicited requests we’ve received. But it’s really been since Janine Allis (Boost Juice founder) joined our board over a year ago that we’ve carefully considered and planned the strategy. Over eight months ago we hired Janine’s former CEO International, Jacinta Caithness, to head-up our franchise strategy.

could scale up and roll-out stores quickly and productively across the country and eventually the globe. “Having opened 82 stores in 10 years across Australia, New Zealand and Singapore, with compound double digit revenue growth year on year, there’s strong evidence our systems and processes are good. These systems now provide a brilliant base for our franchising model. Enabling us to redeploy capital for our ongoing international growth is just one element among several key reasons for franchising. “We believe it’s possible that franchise stores could be more productive than company-

We’ve always focused on developing turnkey systems and processes that support our store teams and enable stores to thrive “We’ve always focused on developing turnkey systems and processes that support our store teams and enable stores to thrive. We’re Melbourne-based and our third store was opened in Sydney, precisely to force ourselves to create brilliant systems and processes that would ensure we 10 | FRANCHISING JUL/AUG 2012

owned stores – and we really want to test that theory; we believe franchising could be a relevant strategy as we roll-out across the globe and we want to build our experience with the franchise model domestically. And we’re excited at the thought of welcoming external parties into

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our business, bringing with them different experiences and fresh ideas for the benefit of the entire network. “We’re a very open and learning focused business plus we love and encourage the exchange of ideas and experience within our business. “It’s a very clearly thought through strategy. We’re totally committed to very quickly becoming a world class franchisor and valuable partner and we feel confident in our ability to execute a domestic franchise strategy that supports the success of franchisees.” What are the Asian expansion plans? “We’ve currently got three kikki.K stores in Singapore and see strong opportunities there. We’ve also had numerous strong inquiries from quality landlords across Asia and from potential partners wanting to purchase the rights for various countries. We’re being very careful to work through the opportunities and choose the right locations and partners which will provide the perfect alignment for our brand.” What will the franchise offer be? “We’ll be offering prospective partners the opportunity to buy existing kikki.K stores that have strong trading histories and very well established customer relationships. “In terms of training and marketing support – as well as operational, visual merchandise and product support for that matter – the program we have in place to support franchisees in the operation of their own kikki.K store is very robust; it’s been improved on a day to day basis across 82 stores in three countries by our store managers.” How much control will franchisees have in terms of merchandise? “A key to the success of kikki.K is our merchandising approach and

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the combination of strong design and innovation (we drop new product into stores around every three weeks). It’s vital for the brand and the success of all stores and partners that we maintain consistency of product ranging and merchandising so we’ll have strong controls in place to support the success of franchisees. “We’ve invested heavily in merchandise forecasting tools to deliver automatic replenishment, all on an individual store basis. “This works so successfully for our company owned stores, we would envisage that each of our franchise partners would also opt

Having opened 82 stores in 10 years across Australia, New Zealand and Singapore, with compound double digit revenue growth year on year, there’s strong evidence our systems and A D _ F R MA D MA Y _ 1 2 . p d f Pa ge 1 1 4 / 3 / 1 2 , 9 : 2 0 AM processes are good

into using this system, enabling ease of ordering and stocktake etc. “There are differences between stores in terms of sell-through on individual product lines and our system is sophisticated enough to determine the variances which may be required between stores. Our franchise partners would also

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Inspire|Interview

have input into this as our store managers in company-owned stores do now.” Retail is a tough market right now, why should a franchisee invest in the brand? “That’ll be up to each individual, of course. The strong interest we’ve had from people in buying a kikki.K franchise over the years,

Award for Innovation and we really feel the kikki.K journey is just getting started and there are some very exciting times ahead for all of our stakeholders. Now is as good a time as any to join us on the journey. “We’re only looking to sell six to 10 of our existing companyowned stores initially. The purchase prices we have placed

We’ve invested heavily in merchandise forecasting tools to deliver automatic replenishment, all on an individual store basis and recently, indicates many people already have their own reasons. “Personally, Kristina and I have grown the business for 12 years through a few cycles and we’ve always seen opportunity in both good times and challenging times. We’ve recently been nominated for a World Retail

on each of them we feel are competitive – and we’ve been really encouraged by the number of unsolicited inquiries we have received as well as the interest that our franchising initiative has generated from within our existing network and kikki.K community. “We’re very proud to be a new

generation retailer – really open and innovative – and we have a very strong, motivated and engaged retail team, providing on-the-ground operational expertise, and linking back to in-house departments of design, merchandise, human resources, marketing, finance and IT. In operating our 82 company-owned stores we’ve developed a very strong retail and head office infrastructure for all our kikki.K franchise partners to tap into and benefit from.” What are you looking for in a franchisee, other than passion for the brand? “Since day one, it’s been our passion that has played a huge part in driving the success of the business. Not just us personally, but each and every member of our wider team. We’re looking for like-minded people who will strive to work towards our brand vision.” F

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Inspire|Franchisor

BREWING

SUCCESS With ambitious growth plans and a commitment to educating consumers that there’s more to tea than English Breakfast, Adore Tea is serving up an exciting new opportunity for motivated self-starters

16 | FRANCHISING JUL/AUG 2012

espite being the second most consumed beverage in the world next to water, tea seems to play second fiddle to coffee in today’s food service world. But not for long, if Adore Tea’s Marc Nieuwenhuys has anything to do with it. He launched the Adore Tea concept about four years ago and is now ready for fast, fruitful growth through franchising. “We were waiting until we were able to support multiple stores. When we decided to franchise about 18 months ago we only had one store so we really felt that to be able to offer a good solution we needed to have multiple stores so that we could try our procedures, so we opened two more company stores,” Nieuwenhuys tells Franchising. “Once we had them up and running and successfully trading we felt like we were ready to handle more.” WWW.FRANCHISE.NET.AU

Adore Tea is now offering franchising opportunities in two different formats: the retail store, which will also includes a Tea Espresso bar where consumers can get a top quality, loose leaf takeaway tea, and the tea house. The former sells a wide range of tea and tea products while the latter also operates as a café of sorts, serving tea with a range of sweets and snacks. There is currently one tea house operating in Canberra, and while Nieuwenhuys is keen to grow this area of the business and is considering potential sites in Sydney, he’s focusing more on the retail stores which he says will be able to see the business grow at a quicker pace. The tea house also requires much more of an investment from the franchisee, both in terms of funds and effort. “It’s a little bit harder to operate. It takes more staff and it takes a very skilled

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c e Fr a n c h i s e

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operator to manage. It’s the hospitality industry. So in a retail store you can train someone, put them in [store] and they can open. You only need a couple of staff and you’re good to go. To open a full size tea house like one of ours – our tea house has 68 staff on a roster, five managers and it seats 260 people – it’s a really big venture and you need a really committed, experienced person to do that,” he says. Despite not having any

franchisees signed up just yet, there is strong interest in both areas of the business and Nieuwenhuys has some serious growth plans. “We’re looking at opening about five new retail locations this year in Sydney, and we’re looking at one possible tea house location in Sydney as well. We’ve got huge amounts of interest in Melbourne as well, so we definitely want to see three to five stores in Melbourne this year. We’d really like to see a total of at least 10 to 12 by the end of the year, and then next year I’d like to open 20 more.” On the lookout for new franchisees, Nieuwenhuys says people considering the tea house format will need to have some hospitality experience, but if they’re considering a retail store, all they need is to be a very motivated people person. “In a word, we’re looking for people that are prepared to be passionate about the product

Adore Tea has tea houses and retail stores

18 | FRANCHISING JUL/AUG 2012

www.franchise.net.au

We’re very customer experience oriented and we want to educate people correctly about tea and passionate about providing an extremely high level of customer experience, which is what we believe very strongly in. We’re very customer experience oriented and we want to educate people correctly about tea.” Nieuwenhuys has made the Adore Tea concept as low maintenance as possible for franchisees, who he’d prefer be

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on the floor, interacting with Adore Tea’s Chocolate and Truffle Rooibos tea customers than working the books behind closed doors. For example, the company runs an automated purchase order program, which means that every Monday the warehouse receives an automated purchase order from the stores, ensuring that they are replenished and fully stocked each week without the franchisee having to manually place an order. But that doesn’t mean Adore Tea franchisees can rest on their laurels. Before setting up shop they must learn the ins and outs of tea – all 200 of them – and must be prepared to not only take advantage of the consumers’ increased interest our slogan at the moment. blends, but understanding a little in all things tea, but to also We’re operating successfully, bit more about where it comes teach them about how best to and premium quality tea is, from, why it tastes different, how enjoy a brew. especially with the financial it tastes different and how to get “We have a really good different flavours out of different training program in place to get AD_ F ROUT NOV _ 1 1 . p d f P a g e 1 1 3 / 1 0 / 1 crisis 1 , in3 the : 1world, 5 P aMlittle luxury that everyone can still afford, so teas,” he says. people to understand tea, so we’re in a good niche market”. F “Tea is the new coffee, that’s not just understanding all 200

Scan here to see our video interview with Nieuwenhuys at the recent Sydney expo

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JUL/AUG 2012 FRANCHISING | 19

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Brand innovation and support - what a difference a license makes

WINDOWS TO THE

FUTURE A

shley Robinson can speak to the power of a brand; his family has been selling Luxaflex blinds for more than 30 years. The Robinsons have been in the window blinds business since 1976 – first selling Venetian blinds from home, then moving into a showroom in 1988, and running a heating business alongside. When they snapped up the Luxaflex Window Fashion Gallery license for the Castlemaine area they were only the third Victorian business to embrace a licensee opportunity. Once the licensee program was set up, the business grew very quickly, says Ashley, who has

We don’t look at what others are doing, we just do the best we can and let them catch up 20| FRANCHISING JUL/AUG 2012

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worked in the family business for 12 years. “We knew if we wanted to stay the market leader in the area we needed marketing innovation and we knew it would set us apart. It’s an opportunity to showcase the entire range, to get marketing support, displays and support fro m the company.” Taking on the license meant increasing the showroom size by 50 percent and a boost to the family of three managing the business with two staff members. The business had previously had access to the full ranges but needed a better showcase to take advantage of the 70-odd products to show customers. “This gave us greater exposure to a bigger market, and it paid for itself in the first 12 months. We had products customers had never seen. We experienced high growth for four or five years.” Ashley admits the inevitable plateauing of business has meant growth has dropped down but it’s still at a more than respectable 10 percent, given the climate and a more cautious clientele. The $5,000 spend on blinds is still taking place, but less regularly; quality conscious

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customers are avoiding hurried purchases and waiting until they can afford to buy their pick of the range. The clientele has changed in the last five years too, he adds, as the town of 8,000 people becomes more of a Melbourne commuting spot, just 90 minutes from the city. But while there’s another Gallery at Ballarat, one hour away, and other Luxaflex suppliers even closer to Castlemaine, Ashley is unconcerned about competition. “We don’t look at what others are doing, we just do the best we can and let them catch up.” As licensees in the system, the Robinsons can offer customers a 20/20 guarantee – if the customer isn’t happy with the blinds they’ve chosen, they wait 20 days after installation and can then change them

A Luxaflex window fashion gallery

The Robinson family

for a fraction of the cost – and get the new blinds within 20 days. “It offers peace of mind,” says Ashley. When it comes to business support, he says the Luxaflex parent company, Hunter Douglas,

This gave us greater exposure to a bigger market, and it paid for itself in A D _ F R MR R J U L _ 1 2 . p d f Pa ge 1 2 9 / 0 5 / 1 2 , the first 12 months

does its part. “Our sales manager gives us good support and we see him quite often. I’m in constant contact with marketing, and we get good back up from the call centre.” Ashley has noticed a spike in customer inquiries when he mentions the website in his radio ads – there is a store page 1within 0 : 5the 1 Luxafl A M ex website that takes customers directly to the Robinsons’ business. F

For more information contact the National Support Office

07 3622 2888 WWW.FRANCHISE.NET.AU

JUL/AUG 2012 FRANCHISING | 21

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Seeking New Franchise Partners Pizza Hut is the world’s largest pizza restaurant company with more than 12,000 restaurants in over 90 countries. A subsidiary of global QSR giant Yum! Restaurants International, Pizza Hut boasts a strong history in Australia since opening its ﬁrst Australian store in 1970.

Pizza Hut has exciting new store opportunities available throughout: s¬ Melbourne & Regional Victoria s¬ Perth & Western Australia s¬ Regional New South Wales s¬ South East & Regional Queensland

As a franchisee, Pizza Hut offers you the advantages of investment in a proven brand; ﬂexible hours for individuals and families; and fun, exciting revenue potential within a great system.

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Franchisee|Inspire Paul Minords

It’s all for one and one for all at Hire a Hubby, where Sydney franchisee Paul Minords and his fellow Hubbies share a common goal

BUILDING THE

BRAND F

or Paul Minords, Hire a Hubby franchisee in Sydney’s Neutral Bay, no two days are the same. “I do a lot of hanging doors and a lot of carpentry work but today, for instance, I’m doing some painting, and I’m doing a little bit of fencing this afternoon. It varies so much. Yesterday I was up on the roof doing some gutter work. You couldn’t put a typical day down, and that’s what I like,” he says. After working for himself in the UK as a carpenter then moving to Australia and being employed by a door company in Brookvale, Paul was keen to get back to working for himself,

and Hire a Hubby, the mobile handyman franchise, was a perfect fit. And while he has experience in a trade, other Hubbies don’t, and it’s certainly not a requirement by the franchisor, Paul adds. “A lot of the Hubbies are from the corporate world. You need to have hands-on skills. You need to know how to use tools and be confident using tools, and know what you’re doing. But for the guys that need a little bit of tuition on certain things, there is in-house training.” Support doesn’t just come from the top end either. Paul says there’s

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a strong camaraderie between the Hubbies, who without hesitation will lend a helping hand on other franchisees’ jobs. “Around my territory I’ve probably got five or six Hubbies that would come to site with me at the drop of a hat, if need be. We all do it for each other,” he says. “I’ve heard that a lot of franchisees [in other systems] are fighting one another for business, but we’re all Hire a Hubbies, so if the Hubby next door to me does well, he’ll make my business do well. We’re trying to build up the brand as a company, not as individual owners. “I come from the building JUL/AUG 2012 FRANCHISING | 23

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Word of mouth recommendations are the best form of marketing, says Minords

game back in England so I’ve got all the skills I need but some of the other guys will call another Hubby and say ‘can you help me out on this job?’ and then they’re learning as they’re earning. We’ll go through what needs to be done

and we’ll spend all day with them if need be, teaching them how to do that job. They’ve always got us to back them up, to call on us if they need any advice,” Paul says. Another advantage of the Hire a Hubby system is that franchisees

have the flexibility to define the parameters of their work. “I don’t get involved with creepy crawlies... I don’t want to be crawling under houses. There’s some stuff as an individual that I don’t want to do. So I’ll go and have a look at the job and point the customer in the right direction for someone who will do that.” And while he might not make any money from these referrals, Paul says it’s going that extra mile for a customer that will keep Hire a Hubby front of mind for the franchise’s clients, which at the end of the day can only be of benefit to his own business. “The franchisor does most of the advertising for all of the Hire a Hubby team and I did leaflet drops when I first started, but generally it’s recommendations. Mrs Jones down the road tells Mrs Smith that Paul from Hire a Hubby is capable and does a good job, then she employs me and it all snowballs from there.” F

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“

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One of the things I looked at when buying a franchise was;

I didn’t want to buy a job, I wanted to buy a business.” Andrew Edsor, Quest Franchisee at Quest North Ryde and Quest Bondi Junction

For over 20 years our trusted franchise model has proven itself as an outstanding performer in the corporate travel industry. With more than 140 locations across Australasia, Quest provides the perfect opportunity to run your own business within a well-established and successful organisation. We’re searching for franchisees with demonstrated business acumen in any industry to leverage their capabilities in one of our new or existing Quest locations.

We are completely committed to managing the success of our relationships by offering learning and development training through an extensive support network, with the goal of facilitating healthy financial returns. If you’re looking to buy into a trusted Australian market-leading brand, then a unique opportunity with Quest is one you won’t want to miss.

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strategy for

success

Bedshed is forging ahead in a tough retail climate. Franchising spoke to Gavin Culmsee, chief operating officer, to find out how

he company started out selling water beds then evolved into tubular steel framed beds, and now stocks contemporary bedroom furniture, mattresses and manchester. Culmsee says “We’re happy with our performance on growth this year. “This is a pretty experienced franchisor, we’ve been franchising for 30 years, so of course that helps. We’ve been through tough times and the people in the head office have been in retail for some time. “We also have a very committed group of franchisees who add value to Bedshed.”

So what’s the key to getting ahead in retail?

An inclusive approach to franchising means that franchisees are involved at a strategic level of the business, explains Culmsee; for instance, joining the overseas buying trips. “In retail it’s always an uphill battle to get product compliance, but we do the hard work upfront. It means franchisees are behind the choices.” Up to 15 out of the 30 franchisees in the network might travel and get involved in the buying process, selecting and fine tuning product choices and keeping an eye on costs. The chain has no central storage facility. “We import directly so that cuts freight costs,” says Culmsee. Franchisees must maintain their own inventory, typically stored in a 500 square metre off-site warehouse. “We can deliver to the customer very quickly, that’s our major competitive advantage.” Some franchisees will land containers every week, he adds. “The trend is for buying quality product, there’s been a real resurgence at the upper end in the last nine or 10 months. People are buying to last but there will always be a constant demand for lower priced products such as kids’

Gavin Culmsee 26 | FRANCHISING jul/aug 2012

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S R E RTN

! ! ! D E T N A W 60c

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mattresses. People come to us for advice, that’s part of being a bed specialist.” Culmsee believes the biggest retail cost is occupancy and the franchisor will offer to negotiate or renegotiate leases on behalf of franchisees. Landlords now are a bit more open to discussion, he says. The retail footprint is between 800 and 1000 square metres, and a franchise will cost about $500,000.

Opportunities

There are some common traits spotted in Bedshed’s successful franchisees: 1. Franchisees are team players One of the advantages of joining a franchise is the support from other franchisees and the franchisor; you don’t have to go it alone. There’s a network of franchisee partners who draw on each other to address their individual business challenges and share tips and tricks. At Bedshed this is backed up with three decades of franchise experience.

2. A passion for customer service As online shopping continues to grow, it’s important for bricks and mortar retailers to value-add for customers in store. Customer service is the key to competing with the popularity of online shopping. Successful franchisees have a can-do attitude and their customers are always their first priority.

3. On the frontline

store set-up process for There are 40 stores, of which At Bedshed, we have seen time and time again that franchisees is key, he says, 10 are company-owned, and franchises are most successful when the franchisee is directly so it’s preferable to match expansion across the chain involved in the day to day running of the business. A retail a franchisee to the right has been through multiple franchise is not a set and forget investment so the more you store rather than establish a store ownership, but there’s put in, the more rewarding it will be. Franchisees who are company outlet first. still plenty of room for passionate about what they do can gain valuable knowledge “We’re looking to open growth, Culmsee insists. about their business by working alongside their sales staff on in the right places, so five or “In our network there’s a a daily basis. They also enjoy the advantages of being their six stores a year. We want to massive opportunity in NSW, own boss and setting their own hours. make sure our franchisees some in Queensland and a are happy with their great opportunity in Tasmania 4. Learning new skills returns.” for a franchisee in Hobart and While it is useful for potential franchisees to have some Retail experience is not one in Launceston. There are background in retail, and the market they are working required of franchisees, only two stores in NSW (in in, or experience of franchising, it is far from essential. At Culmsee adds. “We’ve got Mittagong and Warners Bay Bedshed franchisees have come from fields as diverse as ex-auditors, fitters and near Newcastle). We can open the metal working trade and corporate accounting. Many turners; we want people who 30 stores without impacting people find the skills they have from vastly different roles are AD_ F RJ ANJ UL _ 1 2 . p d f Pa ge 1 1 2 / 0 6 / 1 2 , 1 1 : 0 7 AM have the right outlook and on our existing stores.” transferable to their new career as a franchisee. want to be a part of this.” F Involvement in the

with

Clean UP a Jani-King

Commercial Cleaning

Franchise!

www.janiking.com.au 28 | FRANCHISING jul/aug 2012

www.franchise.net.au

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Mel Gleeson and Belinda Fraser created the endota spa brand at the ripe old age of 26. Now, more than 10 years later, they have their sights set on nationwide growth

An indulgent

INVESTment A

lucky business is one that is able to both weather a financial crisis and be somewhat immune to the effects of online retailing. That’s exactly the position that beauty spa franchise endota spa is in today. Co-founder Mel Gleeson says, “You’re still going to get your eyebrows waxed. I think people might not splurge on big holidays [during tough times] but they still want the girls day out or a couple of hours to feel relaxed. Also, I think

30 | FRANCHISING Jul/aug 2012

our retailing hasn’t gone down because we’re an experience. So you come in-store for the experience. You can’t get a massage online.” Endota spa launched in 2000 and today there are 66 spas across the country, which, when Franchising spoke to Gleeson, was expected to jump to 70 by the end of the financial year. The franchise offers beauty treatments including waxing, tanning, massages and facials as well as spa treatments, and it also has a retail element, selling its own certified organic

www.franchise.net.au

beauty range, a glycolic skincare range and a nail lacquer range which it sells in-store, online and in David Jones. Expansion and product innovation are two key goals for the two friends and business partners. “Even though there’s a lot of doom and gloom around, our spas have increased in turnover on the last year when we compared like for like, so it’s about refining the system that we have, and finding motivated franchisees to grow our brand in

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our new states. Queensland and WA in particular are our focus,” explains Gleeson. “Some of the exciting things that we’re doing are around strategic planning and research, so we’ve talked to industry experts – retailers, CEOs from different spa companies, cosmetic surgeons, Victoria University – about endota and where we should be heading in the future, and one of the things that stands out for us is developing an anti-ageing range with measurable results. “So that’s a focus for the product company at the moment, and for the franchise company it’s to get to our goal of 130 spas in Australia. We’d like to reach that by 2014,” says Gleeson. Franchising is the best way for her and Fraser to achieve this goal, she says, not only because she believes franchisees are often more diligent and motivated than managers, but because it allows them to grow quicker than they ever could independently. Not surprisingly, the majority of endota’s franchisees are women, particularly ones who’ve

previously led a corporate life, and while this isn’t a prerequisite at the franchise, a passion for the brand is essential. “We’ve been really lucky because even now when we talk to our business owners

and our therapists, they love the endota brand, and they actually want to perpetuate that. We haven’t had people, and I know this happens in franchising networks, trying to manipulate the brand at all. It’s fantastic,” says Gleeson.

Making sure all franchisees are on the same page and that the endota vision is maintained despite its steady growth is a priority for the two founders, and is ensured by staying in close contact with the whole endota team. “I think it’s about making sure we communicate effectively with all the stakeholders – our head office team, our business owners, our therapists – and we do that a lot. We have days where we get together, and Belinda and I have recently been on a roadshow visiting a lot of our spas, talking to the therapists. “The main thing is that I think everyone in our network, from therapists to business owners, got into this industry because they want to make people feel better. So everything we do, we’re striving to reach that goal and that’s really the driving force that unites us.” F

endota spa’s retail range

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Jul/aug 2012 FRANCHISING | 31

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action

man A franchise lets Andrew Laurie live a dream lifestyle

ndrew Laurie has run his own Action Coach franchise since 2009. And it allows him to live the lifestyle he and his wife have planned for themselves and their two young sons. What Andrew describes as “bad fortune” gave him the chance to review his life a few years ago. “When I was skiing in Canada I fell off a 100ft rock cliff, and had to be resuscitated. During convalescence I came up with a goal of what I wanted to achieve in 20 years; I came up with clarity about how to live. “I was still single, going through the evolutionary career trajectory. I went to uni and did the course I was expected to do, that led to the logical job, I did reasonably well, took the logical next step, without having thought what was my real direction. “I decided that to achieve what I wanted in 20 years I’m going to have to be running a one billion dollar company; and in five years I’d better be running a company. So I need to learn about business, so in two years I need to do an MBA, and get it from the best school in the world.” 32| FRANCHISING JUL/AUG 2012

Armed with experience at Ansett, and in corporate travel in Hong Kong, Andrew embarked on the MBA before becoming managing director of large travel chains in the UK. His work gave him the opportunity to travel, and to indulge his taste for adventure sports – climbing, skiing, sailing – around the world. But after a few years it wasn’t all a joyride. “Being able to say to people, ‘I’m 35 and CEO of a multi-million dollar company’ was the only thing I really liked about my job.” What he didn’t like was the stress, waking up at 3am anxious about the business. Andrew had met his Belgian investment banker wife in France, and they were living in London with their son when it came to the career crunch. “We took 18 months to travel around and decide what we wanted to do.” Settling in Sydney, the couple still intended to lead some of their life in Europe – “all four of us ski, climb and www.franchise.net.au

sail.” He knew he couldn’t be an employee working full time. “I knew I wanted to build businesses and coaching on business was a reasonably obvious move.” But an Action Coach franchise was an accident. Andrew had plans to start his own business and went to a seminar for competitor analysis. “I didn’t know much about it, or that it was a franchise. I saw [founder] Brad Sugars presenting, thought it was good stuff, and got chatting to other coaches.” At the time the business was launching a territory-based franchise model. “My goal was always to build a business that could live and breathe without me. The territory model appealed.” He spent two months on due diligence. “I did everything you should

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Weekly Media have discovered a new and improved way to feed your appetite using a full range of top selling Australian magazine titles along with International publications, and all it takes is the single push of a button. The new magazine media station is packed with Australia’s most popular lifestyle titles and is attracting a generous dollar through combining convenience with on-the-move retail solutions. The concept is simple, the start-up is supported, the potential is endless and the opportunity is yours. Beyond its contemporary exterior, this advanced magazine display represents direct marketing with strategic edge in premium locations 24 hours a day, 7 days a week. That’s right, even on public holidays. The street savvy media kiosk appeals to a collective audience of children, teenagers, adults and seniors to forego the hassle of unplugging earphones, ceasing to talk on mobiles and cueing up in crowded shops in order to consume their literary fix. From the moment you jump onboard this rare and exciting investment opportunity, you are assured that you are not alone, with Weekly Media offering installation, training and support to help you achieve your business goals. Gone are the days when you need to wait at busy retail outlets to purchase your top-selling magazine titles, such as GQ, Cleo, Good Health, Woman’s Weekly, Rolling Stones, FHM and many more. If you’re running late to a flight, bored at the train station, or perhaps you’re just enjoying the attractions of your local city; consumers will be drawn to the ease and benefits of our self-automated newsstand showcasing the latest headlines. European engineered with quality materials in a streamlined design and modified for the Australian market, the advanced media stations now offer not only magazines but newspapers. Weekly Media’s new business opportunity represents a blue chip investment for those seeking a new and flawless market concept. This superior stream of newsstand allows you to take your share of the multi-billion dollar print and media industry without the need to become an expert in sales. The beauty is in the packaging when it comes to modern marketing tools and Weekly Media are offering you a chance to be a part of a real head-turner; an innovative product that will establish a profitable business that manages and markets itself. The Weekly Media advanced magazine media stations will be popping up at a corner near you, the question is whether you’ll be the one who’s reaping the rewards.

For further information please contact sales@weeklymedia.com.au

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A D _ F R H U D MA Y _ 1 2 . p d f

Pa ge

2 8 / 0 3 / 1 2 ,

Andrew leads an action-packed family life

do. When I first spoke to franchisees the story I got seemed too good to be true, then the more research I did the better it got. I spoke to about 30 past and present franchisees. There was a universally positive response. I have an economics degree and an MBA and on my own I knew I would be literally years behind it if I got there at all. “We finalised the deal in December 2009, and had a skiing holiday booked for January and February so we didn’t start till March.” The growth has been better than planned: in five months Andrew had reached his 12 month goal. That was the trigger to get someone else in and there are now six people in the business. He is reaping the benefits of his business success with a lifestyle many would envy. “In the first year I thought I should only take off one week at a time, in the second year I decided I could take two weeks off in one go, now I’m in the third year and we had three and a half weeks off in April. We went climbing in Spain, skiing in France and saw family in Belgium.” A regular one page report from the admin director kept Andrew on top of the business while away, but he admits there were some days in Europe when he didn’t turn on a computer. Back home, a regular routine means time is scheduled for his young boys: breakfast six days a week and from 5.30 to 6.30 every night. “Coaching is brilliant fun, I absolutely love it,” says Andrew. “Firstly there’s innate satisfaction working with clients; as they get more free time they get more excited. Secondly, we work hard on what sort of a team we’re building. It’s really enjoyable coming to work.” And the business continues to grow with clients seeking change excited about investment in coaching, despite tough economic times, he says. “The territory is 64,500 businesses, small and large. A full time coach can coach 20 to 25 businesses. We’re hardly scratching the surface.” F

Coaching is brilliant fun, I absolutely love it

and enjoy every day

Franchise opportunities now available nationally. For more information on joining Hudsons Coffee, call Carly on 03 8631 7710 or visit hudsonscoffee.com.au/franchising

www.franchise.net.au

JUL/AUG 2012 FRANCHISING | 35

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For Anna Calcagno a Gelatissimo franchise is a perfect match

SWEET DREAMS

COME TRUE W

hen Anna Calcagno first saw the Gelatissimo gelateria, she fell in love with its look and the beautiful gelato, and she knew it was her ideal franchise. Now Anna owns the Lygon Street outlet in Carlton, Melbourne and shares her story. 1. Why did you choose this franchise? I truly believed in the product. I knew the flavours were amazing and the beautiful presentation would make it easy to sell. Going down the franchise route was safer in our minds than starting something from scratch. After our initial enquiries we felt comfortable with Gelatissimo, because it offered the support we needed, not only at the

36| FRANCHISING JUL/AUG 2012

to carry us through the first few months of trading.

beginning but on an ongoing basis. When our location came up in a popular eating district known as little Italy in Melbourne, we didnâ&#x20AC;&#x2122;t hesitate to grab it and went from there.

4. What training and support did you receive initially and ongoing? We had in-office training in Sydney and on-site training in the Coogee gelateria. Two head office staff came to Melbourne for our opening and the first five days. Support has always been excellent and continues to be so today.

2. What did you do before taking up a franchise? While our children were young I worked in my husbandâ&#x20AC;&#x2122;s business in a part time administrative capacity. 3. How did you raise the finance? We had recently sold a half share in a business that had been extremely successful, so

we were sufficiently cashed up to have enough money to cover our start up costs, renovation expenses for our gelateria and working capital

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5. What is a typical day for you as a franchisee? Because I manage my own store, I work in a full time

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Franchisee|Inspire AD_ F RCAF J UL _ 1 2 . p d f

capacity, so my shop’s presentation, including the gelato display, is always of a high standard. The first thing I do each day is ensure that any surfaces not properly cleaned the night before are wiped down and sparkling. I then set up the till so there is enough change to get through the day. I check which flavours need to be made so all the trays are full and looking fabulous and make what is necessary, re-garnishing or fixing any flavours not being made but which are perhaps looking a bit shabby. There is always some paperwork, be it rosters, paying bills, banking etc, and this fills in the days. We defrost various freezers during the week, including both rotundas and the three upright freezers in which we store our back up stock.

6. What challenges have you faced? The biggest challenge is ensuring my staff maintains my very high standards. Because I know it’s impossible to be there constantly, I concentrate on training staff better on a one-on-one basis. 7. Has becoming a franchisee changed your life, if so how? I would say that becoming a franchisee has changed my life. It has given me a confidence I didn’t know I possessed. I realise how much I love people and dealing with them. I am really happy to go

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to work every day. It’s also been rewarding financially giving us extra ‘play’ money at a time in our lives where we can enjoy it. 8. What advice would you give to someone thinking of buying their first franchise? Do your research and speak to people involved in that particular franchise. Learn as much as possible about the product and if you truly believe in it and are confident other people can also love and want it, then go for it. Do your sums carefully so you don’t put yourself under too much pressure financially and ensure there is a strong team behind you, to guide you along the way. 9. What are your plans for the future? I love my job and the rewards are great, so for now things

It has given me a confidence I didn’t know I possessed. I realise how much I love people and dealing with them And, of course, we spend time with our customers, so their experience in our store is a great one.

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will remain as they are. I would hope that within the next few years my husband and I can think of semiretiring. We may opt to sell what we have and live off our earnings and hard work or have someone in place to manage our shop and just have a minimal involvement. 10. Would you do it again? Absolutely. I’m sorry I didn’t do it earlier in my life. Being involved in a franchise with a great team and a sense of family is wonderful. All my hard work is paying off. It’s been rewarding both financially and personally and I’m very proud of the person I’ve become building my business and making it a success. F www.franchise.net.au

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Opportunities|Mexican

There has been an influx of franchise systems entering the Mexican food scene over recent years, all claiming a unique point of difference and a commitment to fresh, made-to-order meals. Danielle Bowling reports

MEXICAN WAVE I

f you’re talking food trends, the rise of Mexican cuisine would have to be at the top of the list. Over the past few years, Mexican has gone from being a niche offering, found in the odd food court or occasionally as a stand-alone restaurant, to a surety in most suburbs. And many of the brands out there, responsible for the rapid rise of burritos, taco and quesadillas are franchised, with strong growth plans and a mission to re-educate the Australian palette, which often associates Mexican food with the cheesy, sour cream heavy, greasy dishes of yesteryear.

FRESH FOCUS

Victorian-brand La Solas, established in 2002, has three company-owned stores in Geelong, Torquay and the Surf Coast and is keen to sign up its first recruit after hitting somewhat of a growth speed-bump over the course of the GFC. 40 | FRANCHISING jul/AuG 2012

According to founder Michael Baker, one of the biggest hurdles to expansion, both of his own brand and the Mexican cuisine in general, has been the negative stereotype associated with the food. “The biggest road block we’ve faced in trying to get this model up and running is the education of the general populous. Unfortunately, Mexican food, during the 80s and 90s, really got a bad rap. It was overcheesed, over-sauced, over-priced, and people just felt unwell after eating it,” he says. Baker makes a point of explaining that La Solas doesn’t offer authentic Mexican food, but rather authentic Californian Mexican food. And while it sells classics like nachos, tacos, www.FRANCHISe.Net.Au

Janine Allis

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Mexican|Opportunities

the Subway model. It’s all made in front of you and once people have had the experience of making the choice themselves about what goes into their food, then no one wants to go back to ‘oh, I’ll have the chicken burrito like the one in the picture on the wall’,” he says. Young believes Mad Mex, founded in December 2007, kicked off the Mexican wave in Australia,

year it’s been gaining a bit more popularity. And yes, I do believe that because we’ve been here doing this for the past five years that we are well positioned to be the leader in the next phase when it really takes off and goes everywhere. “We make a super authentic product, something they’ve never tasted and the reason is that we bring tonnes of products over

This is the Subway model. It’s all made in front of you and once people have had the experience of making the choice themselves about what goes into their food, then no one wants to go back La Solas offers authentic California-style Mexican

enchiladas and quesadillas, this style is all about the burrito, made fresh to order. “The thing that separates us from them is that, firstly, I’m from California and secondly, I’ve lived and eaten this kind of food for most of my life and I know what is and isn’t authentic California-style Mexican food. “We’re a fresh mex establishment, which in my book means that you make everything on-site yourself. We offer freshly produced food. We make all the salsas and guacamole and enchilada sauce, everything. The only thing we don’t make is the sour cream because we don’t have the cows.” Mad Mex, which had 15 stores at the end of the last calendar year, and plans to have a total of 33 by the end of 2013, was also founded by a Californian, Clovis Young, who says the strength of his brand lies in its Subway-like model, where fresh ingredients are on display and put together in front of the consumer when and how they like it. “What we do, I think, is the best quality, but that’s not the point. The point is that this is

and says that while competition is a good thing, he doesn’t believe there’s enough room in the market for each franchise to take full potential of Mexican food’s popularity. “I don’t think there’s enough room for five chains to have 100 stores. I think there’s enough room for two chains to have 100 stores,” he says. “It [Mexican food] does seem like it’s exploding now, but each

from Mexico. We also have an environment that’s fun and cheerful, so it’s not formal. It’s fantastic quality. It’s very quick – from the time when you order to the time that you’re eating it’s two minutes or less, and it’s very healthy so you can go there three or four times a week. Plus it’s cheaper than cooking. So it’s convenient, it’s fast, it’s healthy and it tastes great. All those four things, that Fast, fresh and fun food at Mad Mex

www.FRANCHISe.Net.Au

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Opportunities|Mexican

wants to grow through multiunit franchising, and the brand, which is expected to have 35 to 40 stores across the country by the end of the year, wants the majority of its franchisees to have between three and five Mad Mex isn’t the only brand stores each. leveraging off the Subway Stuart Cook, Zambrero CEO business model. Zambrero, says, “[It’s based on] wisdom founded in 2005 by Sam Prince, gained from some of the big a medical student at the time, players like McDonald’s and has also taken a page out of the Subway. The reason is that popular sandwich franchise’s Nachos from it reduces risk. If something book. Like Subway, Zambrero The Burrito Bar happens to one of their stores it reduces the trading liability of the entire group. It allows greater economies of scale so they can employ the right people and more or less become a business within our business. So as soon as people are starting to go through the [franchising] process, we’re getting them excited about their second and third store, not A U T O N A T M0 5 0 3 4 . p d f P a g e 1 4 / 0just 6 /their 1 2 fi, rst.”8 : 4 4 A M Cook says each Mexican bundle of value propositions, didn’t exist when we came here.”

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Opportunities|Mexican

for a very Australianised fusion of Mexican flavour. “We have one unique flavour which is a combination of a taco and a soft shell tortilla, which we call a Dos Capas. It’s a hard shell taco wrapped in a soft shell

Guzman A D _ yF Gomez R J E promotes MMA R _ 1 2 . p d f multi-unit ownership

44 | FRANCHISING jul/aug 2012

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taco. So when you eat a taco it falls everywhere and it’s really messy but with us you get the soft texture of the tortilla around the outside of the crunchy corn taco,” says Cook. Like Zambrero, Guzman y

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Gomez is committed to building a strong network of multi-site owners. There are currently 17 stores, nine of which are company-owned, and co-founder Robert Hazan is adamant that this combination of companyowned sites and multi-unit operators is a formula for success in the crowded Mexican market. “I have no interest in ending up in some giant franchise model that has a long list of franchisees, because this is a very personal business for Steve (Marks) and I, and we want to keep it as a very tight family and

An Australianised Mexican flavour at Zambrero

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Fresh ingredients are a focus at Mad Mex

grow with the family, as a small family,” says Hazan. “Nurturing too many relationships is time consuming and I think you shouldn’t fix what isn’t broken. These people are your business partners. They’ve bought into a company that you’ve built and you owe them the time and attention that they require at all times.” So with this in mind, Guzman y Gomez is open to bringing on new franchisees over the next 12 months, but from then will limit the opportunity to focus on growing and expanding the existing network.

THE MEXICAN MOOD

As any consumer will tell you, there’s more to a good eating experience than just tasty food. Friendly service, a broad menu and an exciting ambience all make a difference in creating a loyal fan base. Guzman y Gomez, which offers both dine-in and food court locations, understands this and tries to serve up a memorable meal experience for all its customers and professional, friendly service is of the utmost importance. “I think people come to us just thinking it’s a fast food place,

We’ve actually had double digit growth in all of our franchise stores since we’ve taken over. I think the Mexican wave is here because we’re in that category www.FRANCHISe.Net.Au

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A friendly, lively atmosphere is important in Mexican dining

and they leave with such a surprised feeling, like ‘wow this is actually not what I expected at all. The people that work there actually take pride in working there’ and it filters through. People can see it and feel it. If the staff are happy and are proud of where they’re working and connect with the company then I think that filters all the way through to the customer experience.” Another important part of the customer experience is being able to serve alcohol, which Guzman y Gomez started doing 18 months after it first started trading at the end of 2006. “There’s such an innate association, not just with Australians but in general, with Mexican food and a Corona or a margarita,” says Hazan. “I think Australians probably have made the association between Mexican and big groups [of people] and margaritas and things like that, but ultimately it does come back to the food,” he says. “For us it’s food first and the alcohol component is great for the business but it’s an ancillary part to the experience. You’re not coming there to drink, you’re coming there to eat and why not have a beer or a margarita with it?” The Burrito Bar, a Queensland-based Mexican franchise is also licensed, and as one of the very few in the category that focuses more on casual dining than takeaway, director Luke McGrath isn’t put off by all the other Mexican offerings out there.

“I’ll let them compete for discount food. Even though I think their food is amazing and I really enjoy those brands’ food, they’re completely different. What I’ve done is take Burrito Bar to the next level, so it’s a smart casual dining venue with a bar, so they’re all fully licensed. We have a tequila bar in all of our restaurants and we have a margarita cocktail list, with things like a Largarita, which is a Corona-inspired cocktail,” says McGrath. “They’ve geared themselves towards volume and as I said, the food’s great but it’s wrapped in foil, ‘see you later, thanks for coming’, while we’re creating the in-house experience, serving things on crockery.” When Franchising spoke with McGrath, Burrito Bar had just opened its fourth Queensland store and was preparing to open two more in Victoria. “By the end of this year I’ll have 15 restaurants open and we’ll own this space. While there are gourmet Mexican restaurants out there, we’re not at that level. We’re smart, street, casual dining.”

SAFETY IN NUMBERS

Competition is a good thing, as long as the competitors are good quality, says Janine Allis, the woman behind Retail Zoo, the company which operates Boost Juice Bars and three years ago acquired the Salsas Fresh Mex brand, growing it www.franchise.net.au

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from three stores to 30, with hopes to get to 50 over the next two years. “The good news is that the competitors out there are good competitors, which is very good for our category because if all your competitors are really bad, people will go ‘oh I tried that fresh mex and it’s crap’ so it’s really important that if you’ve got competitors they’re decent competitors. What it does is grow the category,” says Allis. Like its competitors, Salsas prides itself on offering the freshest of fresh ingredients, but what some Mexican

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meetings and we recently did a survey on the happiness of our franchisees and we really hit the ball out of the park,” she says. Marketing is a key focus at Retail Zoo, helping Boost Juice go from an awareness rating of zero to 94 percent in five years. If Boost or Salsas comes up with an exciting new marketing campaign that Allis believes will deliver strong results for the company, but the cost of which exceeds what’s in the franchisees’ marketing fund, Retail Zoo will make up the difference.

brands aren’t able to offer, especially in terms of franchisee experience, is the systems and support of such a wellestablished, successful franchisor. “For example, our IT system – we are the benchmark for most people with regards to our online communication, our point of sale, our stock management, our recording systems, there is none better than our system in the back end. We have a high care factor. We have great communication in regards to our franchisees, whether they’re Salsas or Boost, we have cluster www.FRANCHISe.Net.Au

“Because it’s all very well having a great brand and a great product and great people serving you at the counter, but if no one knows who you are then it takes a long time for word of mouth to get out there before you get known for being all of those great things. We believe in getting people to try us quickly. “And the numbers speak for themselves. We’ve actually had double digit growth in all of our franchise stores since we’ve taken over. I think the Mexican wave is here because we’re in that category.” F

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The modern world is all about convenience. The /ƌŽŶŝŶŐ ůĨ ƉƌŽǀŝĚĞƐ Ă ƉŝĐŬƵƉ ĂŶĚ ĚĞůŝǀĞƌǇ ŝƌŽŶŝŶŐ ƐĞƌǀŝĐĞ͘ &ƌĂŶĐŚŝƐĞ KǁŶĞƌƐ ĚŽ ŶŽƚ ŝƌŽŶ ƚŚĞŵƐĞůǀĞƐ͘ ǆĐĞůůĞŶƚ ŶĞǁ ďƵƐŝŶĞƐƐ͘

Mobile theatre and entertainment franchise ƉĂĐŬĂŐĞ ƚŚĂƚ ďƌŝŶŐƐ ƚŚĞ ƉĂƌƚǇ ƚŽ ǇŽƵ͊ &ƵůůǇ ĮƩĞĚ ŽƵƚ ŐĂŵĞƐ ƚŚĞĂƚƌĞ ĨŽƌ yďŽǆ Θ tŝŝ ƉůƵƐ ůĂƐĞƌ ƚĂŐ Θ ŵƵĐŚ ŵŽƌĞ͊

DŽďŝůĞ ŽīĞĞ sĂŶƐ ƚŚĂƚ ĚĞůŝǀĞƌƐ ƉƌĞŵŝƵŵ ƋƵĂůŝƚǇ ĐŽīĞĞ ƚŽ ǁŽƌŬƉůĂĐĞƐ͕ ĨƵŶĐƟŽŶƐ ĂŶĚ Ă ǀĂƌŝĞƚǇ ŽĨ ĞǀĞŶƚƐ͘ >ŽŽŬŝŶŐ ƚŽ ĨƵƌƚŚĞƌ ĞǆƉĂŶĚ ŝŶ s/ ŝŶ ϮϬϭϮ͘

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Jims Electrical

The e Team

UK Central

Newly formed service to The Jims Group. This electrical trade opportunity is available ĨŽƌ Ăůů 'ƌĂĚĞ YƵĂůŝĮĞĚ ĞůĞĐƚƌŝĐŝĂŶƐ͘ Contractor license required.

/ŶƚĞƌĞƐƚĞĚ ŝŶ ĞƐƚĂďůŝƐŚŝŶŐ ĂŶĚ ŵĂŝŶƚĂŝŶŝŶŐ ǁĞďƐŝƚĞƐ ĂŶĚ ŽƚŚĞƌ ďƵƐŝŶĞƐƐ ŵĂƌŬĞƟŶŐ ƐŽůƵƟŽŶƐ͍ථ ĂƌŶ ŐŽŽĚ ŵŽŶĞǇ ĂŶĚ ǁŽƌŬ ŇĞǆŝďůĞ hours from their own home.

ǆĐŝƟŶŐ ŶĞǁ ĐŽŶĐĞƉƚ͘ &Ƶůů ƌĂŶŐĞ ŽĨ h< ŝŵƉŽƌƚĞĚ ĨŽŽĚ͕ ĐůŽƚŚŝŶŐ͕ ŵĞŵŽƌĂďŝůŝĂ͕ ďŽŽŬƐ ĂŶĚ ůĂƵŶĚƌǇ ƉƌŽĚƵĐƚƐ͘ ^ƚƌŽŶŐ ƚƌĂŝŶŝŶŐ ĂŶĚ ĐŽŵŝƩĞĚ ĨƌĂŶĐŚŝƐŽƌ ĨŽƌ ŽŶŐŽŝŶŐ ƐƵƉƉŽƌƚ͘

͞ ŵ Ɖ Ă

Sergios Cake Shop

^ǇĚŶĞǇ͛Ɛ WƌĞŵŝĞƌ ĂŬĞ ^ŚŽƉ ĐŚĂŝŶ ŶŽǁ ĂǀĂŝůĂďůĞ ĨŽƌ ĨƌĂŶĐŚŝƐŝŶŐ͘ ǆĐĞƉƟŽŶĂů ƉƌŽĮƚ ŽƉƉŽƌƚƵŶŝƚǇ͘ ^ŝŵƉůĞ ƚŽ ƌƵŶ͕ ŶŽ ďĂŬŝŶŐ required.

Ǉ Ɛ ƚ

made by you ^ƚƵŋĞƌƐ

Kubarz &ƵůůǇ ŵŽďŝůĞ ďĞǀĞƌĂŐĞ ĐĂƚĞƌŝŶŐ ĨƌĂŶĐŚŝƐĞ͘ WƌŽǀŝĚŝŶŐ ĨƵůů ƐĞƌǀŝĐĞ ďĞǀĞƌĂŐĞ ĐĂƚĞƌŝŶŐ ƚŽ ĂŶǇ type of private or corporate event.

tŽƌůĚƐ ĮƌƐƚ ĂŶĚ ůĂƌŐĞƐƚ ďĞĂƌ ĂŶĚ ƐƚƵĸŶŐ ĨƌĂŶĐŚŝƐĞ͘ 'ƌĞĂƚ ƉĂƌƚ ƟŵĞ ŽƉƉŽƌƚƵŶŝƚǇ ĨŽƌ ŵƵŵƐ ƚŽ ŐĞƚ ďĂĐŬ ŝŶƚŽ ƚŚĞ ǁŽƌŬĨŽƌĐĞ ĂŶĚ ƐƟůů ŚĂǀĞ ƉůĞŶƚǇ ŽĨ ƟŵĞ ĨŽƌ ƚŚĞ ĨĂŵŝůǇ͘

www.thefranchiseshop.com.au

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1 EXPERIENCE EXP X ERIEENCE XPE E

PREM P MIUM M PREMIUM QUALITY QUALIITY Y AT AT LOW PRICES P PR CES PRICE ES

AN ND D EX XP PERTISE AND EXPERTISE

LEADING ING FULL LL SERVICE SERVIC VICE CE CE CONSULTANCY CONSULTA CO LTANCY Y

BK’s

Abode Design and Construct

Keen to Clean e

<͛Ɛ dĂŬĞĂǁĂǇ ŝƐ Ă ƌĞƚĂŝů ĨŽŽĚ ŽƵƚůĞƚ ƐƉĞĐŝĂůŝƐŝŶŐ ŝŶ ŚŽƚ ĂŶĚ ƚĂƐƚǇ ƌĞĂĚǇ ƚŽ ŐŽ ĨŽŽĚ͘ dƌĂĚŝƟŽŶĂů ƵƐƚƌĂůŝĂŶ ĨĂƌĞ͘ KƵƚƐƚĂŶĚŝŶŐ ƉƌŽǀĞŶ ďƵƐŝŶĞƐƐ ŵŽĚĞů͘

^ĞƉĂƌĂƚĞ ĨƌĂŶĐŚŝƐĞƐ ĨŽƌ ĞƐŝŐŶ Θ ŽŶƐƚƌƵĐƚ ; ŽŶƐƚƌƵĐƟŽŶ ŵĂŶĂŐĞŵĞŶƚͿ͕ >ĂŶĚƐĐĂƉŝŶŐ Žƌ <ŝƚĐŚĞŶ Θ ĂƚŚƌŽŽŵ͘ &ŽĐƵƐŝŶŐ ŽŶ ƐĂůĞƐ Θ ŵĂŶĂŐĞŵĞŶƚ ǁŝƚŚ ŶŽ ŽŶƐŝƚĞ ůĂďŽƵƌ͘

ŽŵĞƐƟĐ͕ ŽŵŵĞƌĐŝĂů͕ Θ ĂƌƉĞƚ ĐůĞĂŶĞƌƐ ƐŝŶĐĞ ϮϬϬϯ͘ ŝīĞƌĞŶƚ ŝŶǀĞƐƚŵĞŶƚ ůĞǀĞůƐ ƚŽ ƐƵŝƚ ĞǀĞƌǇŽŶĞ͘ 'ƵĂƌĂŶƚĞĞĚ /ŶĐŽŵĞ͘

Urban Burger

Taste of Europe

Snorepro

hƌďĂŶ ƵƌŐĞƌ ŝƐ ĂŶ ĞǆĐŝƟŶŐ ĨĂŵŝůǇ ďƌĂŶĚ ǁŝƚŚ ƉƌŽĚƵĐƚƐ ƚŚĂƚ ĂƌĞ ƵŶŝƋƵĞ͕ ĨƌĞƐŚ ĂŶĚ ĚĞůŝĐŝŽƵƐ͘ hƌďĂŶ ƵƌŐĞƌ ŝƐ ĨĂŵŽƵƐ ĨŽƌ ŝƚƐ ŐŽƵƌŵĞƚ ďƵƌŐĞƌƐ

ƵƌŽƉĞĂŶ ĂŬĞƌǇ ĂĨĞ͕ ďĂŬĞĚ ĚĂŝůǇ ŽŶ ƐŝƚĞ͕ ĂƌƟƐĂŶ ďƌĞĂĚƐ͕ ƉĂƟƐƐĞƌŝĞ ĂŶĚ ĞŝƚŚĞƌ Ɛŝƚ ĚŽǁŶ Žƌ ƚĂŬĞ ŚŽŵĞ ŵĞĂůƐ͘ ŽŵĞ ĂŶĚ ƚƌǇ ƚŚĞŝƌ ĨĂŵŽƵƐ ͞&ƌĂĚǌŽůĂ͟ ƐŽƵƌĚŽƵŐŚ ďƌĞĂĚ͘ ŵĂǌŝŶŐ͊

Jumping J-Jays

Marrs

͞ ĂƉƉĞŶŝŶŐ tŽǁ͟ ŝƐ ƚŚĞ ǀŝďƌĂŶƚ ĞŶĞƌŐǇ ƚŚĂƚ ŵĂŬĞƐ ƚŚŝƐ ĨƌĂŶĐŚŝƐĞ ƐŽ ƌĞǁĂƌĚŝŶŐ͘ dŚŝƐ ƵŶŝƋƵĞ͕ ƉĂƌƚ ƟŵĞ͕ ǁĞĞŬĞŶĚ ďƵƐŝŶĞƐƐ ŽīĞƌƐ ƉĞƌƐŽŶĂů ĂŶĚ ĮŶĂŶĐŝĂů ƌĞǁĂƌĚƐ ƚŚĂƚ ŝƐ ƚƌƵĞůǇ ǌĂƉƉĞŶŝŶŐ͊

tŝƚŚ ϯϮ ǇĞĂƌƐ ŝŶ ƚŚĞ ǁŝŶĚŽǁ ĨƵƌŶŝƐŚŝŶŐ industry Marrs͕ ĂŶ ŝŶĚƵƐƚƌǇ ůĞĂĚĞƌ͕ ŝƐ ŶŽǁ ŽīĞƌŝŶŐ &ƌĂŶĐŚŝƐĞ ŽƉƉŽƌƚƵŶŝƟĞƐ ƚŽ ůŝŬĞͲŵŝŶĚĞĚ individuals.

Duster Dollies

>ŝƩůĞ /ŵĂŐĞƐ

Ɛ Ă ƵƐƚĞƌ ŽůůŝĞƐ ďŽŽŬŝŶŐ ĂŐĞŶĐǇ ĨƌĂŶĐŚŝƐĞ ǇŽƵ ĐĂŶ ĚŽ ƚŚĂƚ͘ dŚĞ ŽƵƚƐŽƵƌĐŝŶŐ ŽĨ ĚŽŵĞƐƟĐ ƐĞƌǀŝĐĞƐ ŝƐ ďŽŽŵŝŶŐ ĂŶĚ ŚĞƌĞ ŝƐ ĂŶ ŽƉƉŽƌƚƵŶŝƚǇ ƚŽ ƚĂŬĞ ĂĚǀĂŶƚĂŐĞ ǁŝƚŚŽƵƚ ůŝŌŝŶŐ Ă ĚƵƐƚĞƌ͊

ǆƉĞƌƚƐ ŝŶ ŚŝůĚ ĂƌĞ͕ ^ĐŚŽŽů ƉŚŽƚŽŐƌĂƉŚǇ ĂŶĚ ǀĞŶƚ ƉŚŽƚŽŐƌĂƉŚƐ͘ /Ĩ ǇŽƵ Ă ƉŚŽƚŽŐƌĂƉŚĞƌͬ ŚŽďďǇ ƉŚŽƚŽŐƌĂƉŚĞƌ ǁĞ ǁŽƵůĚ ůŝŬĞ ƚŽ ŚĞůƉ ƚŽ ƚƵƌŶ ǇŽƵƌ ƉĂƐƐŝŽŶ ĨŽƌ ŝŶƚŽ Ă ŐƌĞĂƚ ďƵƐŝŶĞƐƐ͘

^ŶŽƌĞƉƌŽ͕ ƐŶŽƌĞ ƌĞůŝĞĨ ĚĞǀŝĐĞ ƚŽ ƐƚŽƉ ƐŶŽƌŝŶŐ ĂŶĚ ŚĂǀĞ ƚŚĞ ďĞƐƚ ŶŝŐŚƚ ƐůĞĞƉ DĂƐƚĞƌ ĂŶĚ /ŶĚŝǀŝĚƵĂů &ƌĂŶĐŚŝƐĞƐ ǀĂŝůĂďůĞ͘

EnSalada Ŷ^ĂůĂĚĂ ŽīĞƌƐ ĞǆĐŝƟŶŐ͕ ŚĞĂůƚŚǇ ŵŽƵƚŚ ǁĂƚĞƌŝŶŐ ƐĂůĂĚƐ ĂŶĚ ŚŽŵĞ ŵĂĚĞ ŐƌĞĞŬ ŇĂǀŽƵƌĞĚ ǇŽŐŚƵƌƚƐ ĚĞƐŝŐŶĞĚ ďǇ ŽƵƌ ,ĞĂĚ ŚĞĨ͘ <ŝŽƐŬƐ ĂŶĚ ĐĂĨĞƐ ĂǀĂŝůĂďůĞ ŝŶ ƵƐƚƌĂůŝĂ ĂŶĚ E ͘

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FR.JULAUG12.PG052.pdf

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UNLEASH YOUR

PASSION Donna Bennett talks to four franchisors about their pet related businesses, where passion for pets is front and centre

usiness skills can be acquired but passion cannot be learned â&#x20AC;&#x201C; you either have it or you donâ&#x20AC;&#x2122;t. Pet franchisors understand they can teach franchisees the commercial side of their business, but a genuine enthusiasm for working with animals needs to come naturally. 52 | FRANCHISING JUL/AUG 2012

Franchisees within the pet industry have previously worked in varied occupations. Past backgrounds of the following systems include accountants, administration, architects, the army, banking, builders, business owners, clerical, couriers, electricians, event and function management, financial planners, WWW.FRANCHISE.NET.AU

Lonely Pets

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government, marketing, mothers returning to work, musicians, police officers, retail, senior level managers in franchising, teachers, telco executives, vets and vet nurses.

Franchise: PETstock

Concept: Retail store for all pet products, services and solutions Franchisor spokesperson: Robert Foley, business development manager Franchising: Since 2002; established in 1991 as Ballarat Produce by Shane Young (CEO) and David Young (GM) Number of franchisees: 73 (VIC 36, NSW 15, QLD 9, WA 6, SA 5, ACT 2) Approx cost: $400,000 to $500,000 (includes stock) Noteworthy: The PETstock Foundation was established in 2007 and raises money for worthwhile pet and animal charities. The stores are actively involved with many of these charities and to date the foundation has raised over $363,000. What interpersonal qualities do you look for in prospective franchisees? We generally look for people with passion and drive. It might sound clichéd but these two qualities underpin our success as a business. We can teach people many of the business and industry related skills through our retail model, but without passion and drive, running any business can be tough. We are lucky – the pet industry, in general, is a very passionate industry, which makes getting out of bed and going to work every day a lot of fun.

Franchise & Commercial Lawyers

54 | FRANCHISING JUL/AUG 2012

What past work experience is attractive to you when recruiting franchisees? Many successful franchisees within our network have diverse backgrounds, ranging from teachers to senior managers within other successful franchises like McDonald’s. You don’t need prior retail experience or pet experience as we can teach a lot of that through what we believe to be the best training program in the industry.

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To what extent does passion play a role in this business? It’s huge. The pet business is such an emotional space. Pets are truly part of the family unit these days and the love shown to pets is often on a par with the love shown to other family members. Most franchisees drawn to our system are definitely pet lovers and we have had several previous customers come onboard to own their own store. They love the idea of mixing their general love of pets with a successful business model, and they get to do that every day. Is this solely a hands-on role? Our model allows for the franchisee to learn both the handson skills as well as the skills required to manage the business successfully. We find many of the franchisees will, over time, step back from an operational (hands-on) role and manage the business from behind the scenes once they employ a manager. Do you assist franchisees with management/HR skills? All stores require the employment of staff. We have a dedicated HR team that assists stores with staff recruitment, industrial relations matters and performance. Our retail operations team can also assist franchisees with specific management training – we have internal training courses covering general skills as well as pet industry specific skills for numerous management levels including store managers and 2ICs.

Franchise: Lonely Pets Club

Concept: Pet sitting/pet feeding and dog walking Franchisor spokesperson: Justin Cofield, director Franchising: Since 2008 (the business is nine years old) Number of franchisees: 11 running 16 franchises (VIC 10, NSW 3, WA 1, TAS 1, QLD 1) Regional franchises: $7990 to $17,990 depending on population Melbourne metro franchises: $25,990 to $99,900 Non-Melbourne metro franchises: $10,990 Noteworthy: Voted in the Top Five emerging franchise businesses in Australia two years in a row by the FCA. What interpersonal qualities do you look for in prospective franchisees? First, they must be presentable, friendly and confident, and have the ability to make and maintain eye contact consistently throughout the interview. Next, they need to show an underlying, obvious and ever present passion for pets. I always ask myself, “Would I trust this person to come into my home to care for my pets and property?” If the answer is no, it becomes a short WWW.FRANCHISE.NET.AU

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Pet care|Opportunities

interview. Our brand essence is fanatical, loving care, so I also expect all candidates to genuinely have these qualities. What past experience is attractive to you when recruiting franchisees? Whilst not essential, having worked in the industry previously is favourable, e.g as a vet nurse, veterinarian, zoologist, dog trainer or pet shelter worker. This already shows a willingness to want to work with animals. Outside the industry, having previously shown some entrepreneurial talent and possessing general life enthusiasm is also highly sought after.

mobile pet feeding business. In some ways, it makes my job recruiting the right franchisees even easier, as people who do not like pets and do not want to work with them simply do not contact me. Currently we have franchisees that were previously To what extent does passion play casual carers with us, clients of a role in this business? Is this solely a hands-on role? Lonely Pets Club, or they knew Passion is without doubt the Our system PetsitR makes it of someone who used our mobile largest factor involved in having A D _ F R O V E MA R _ 1 2 . p d f Pa ge 1 7 / 0 2 / 1 2 , 9 : 5 2 AM very easy for franchisees to run pet feeding and dog walking franchisee applicants contact me their businesses; so life and service. to chat about starting their own

Our model allows for the franchisee to learn both the hands-on skills as well as the skills required to manage the business successfully

Simple, Flexible and Profitable Business

• Full training and support from largest oven cleaning and detailing company in the world • Flexible hours and easy to operate • Very low overheads and highly profitable • Additional Income Streams - Enduroshield Licence and Training included • $39,000 plus gst

“I’d definitely recommend Ovenu to any potential franchisees. It’s a great business with massive potential. There is a great work/life balance and it puts you in control of your own destiny.” “There is a fixed fee so you know exactly what your outlay is, everything you need to start trading is included in the franchise fee - all you need to purchase is your Ovenu van. The franchise model is very simple; it’s great for those who want to take control of their life as you get back what you put in.” Matt Chambers, NSW State Director

1300 683 682 www.ovenufranchise.com.au www.ovenu.com.au

www.franchise.net.au

jul/aug 2012 FRANCHISING | 57

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interpersonal skills are more important than business skills at the moment. However, as we grow, there will be more business related training.

DogTech® International Concept: Dog training, products and services Franchisor spokesperson: John Richardson, managing director (founder and franchisor) Franchising: Since 1997 Number of franchisees: 22 Australia-wide (NSW 14, QLD 7, VIC 1) Approx cost: $37,000 to $75,000 (depending on level of entry) Noteworthy: Author of The Dog Whisperer© and Whispers of Wisdom©

Do all your franchisees have staff? By legal agreement, all franchisees need to have staff or carers working for them. They must have someone to cover them if they get sick or take holidays, for instance – the pets must still be fed. In our franchisee manuals, there are many chapters allocated to staffing and recruitment of potential pet carers, making it easier for franchisees to handle this aspect of their business. Our support office is also readily available to offer assistance and guidance as needed. Melbourne based franchisees have the luxury of already having a large workforce of pre-existing casual carers to call upon.

Franchisees come from all walks of life, with common factors being a passion for A D _ F R J E A MA R _ 1 2 . p d f Pa ge dogs and a will to succeed

58 | FRANCHISING JUL/AUG 2012

What interpersonal qualities do you look for in prospective franchisees? A good attitude and the ability to take direction.

What past work experience is attractive to you when recruiting franchisees? 7 / 0 2 / 1 2 , 4 : 2 3 PM Having people skills and a desire to help dogs and their owners is extremely helpful. No previous dog

WWW.FRANCHISE.NET.AU

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have general experience with dogs at home or work. Franchisees come from all walks of life, with common factors being a passion for dogs and a will to succeed. Does passion play a role in the business? Passion plays a big role in our business and is why people from all walks of life can succeed regardless of their background. Approximately 70 percent of our franchisees are either previous customers or people who knew of us through a customer or franchisee.

DogTech

Aussie Pooch Mobile

DogTech

training experience is required as we provide comprehensive training. To what extent does passion play a role in this business? Passion is important because it’s hard not to be good at what you are passionate about. Some franchisees were previously clients. Is this solely a hands-on role? It does help for franchisees to be business-minded. However, some people that have joined our organisation as franchisees haven’t had these skills but nevertheless run a successful business because they have followed the Dogtech system. Do all your franchisees have staff working for them? Not all, however some franchisees have staff to assist with marketing or clerical duties, and these skills form part of our initial training. 60 | FRANCHISING JUL/AUG 2012

Concept: Mobile dog washing and grooming Franchisor spokesperson: Christine Taylor, director and founder Franchising: Since 1991 Number of franchisees: 151 operators and franchises in Australia (QLD 52, NSW 47, VIC 19, SA 13, WA 12, ACT 8) International: Approx 50 operators and franchises in NZ, US, New Caledonia, UK and Malaysia under The Pooch Mobile Approx cost: Start up $21,000+ equipment or established sites $25,000 to $60,000 (flexible packages available dependent on size of territory, new or reconditioned mobile unit, part time or full time) Noteworthy: Celebrating its 21st birthday in 2012 with a special package offer and a ‘try before you buy’ option in some areas

Is this solely a hands-on role? The business is mainly hands-on and our franchisees do not need to have previous business or management skills. Do you help your franchisees to gain business skills? We help our franchisees gain business skills through our ongoing support including one-on-one business coaching, regular focus meetings, newsletters and our annual conference. F

What interpersonal qualities do you look for in prospective franchisees? We look for people who love dogs and have an outgoing, warm and caring personality. What past experience is attractive to you when recruiting franchisees? Self-motivated people with customer service knowledge that WWW.FRANCHISE.NET.AU

Aussie Pooch Mobile

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BE A PART OF THIS AWARD WINNING BUSINESS! Lollypotz is an online and retail business specialising in hand made chocolate gift bouquets. One of Australia’s fastest growing franchise operations, Lollypotz currently has over 42 franchises in Australia, 3 in New Zealand and has further plans to expand internationally in the near future. We have franchises available for sale throughout Australia—and we are looking for hardworking and motivated people to join our team by becoming a Lollypotz franchise owner. We have a well developed system, website and National Support Ofﬁce to support you and all Lollypotz franchise owners receive excellent training, induction and ongoing support. We are very proud of our growth and achievements at Lollypotz and were thrilled to have these achievements recognised at the recent FCA 2011 Excellence in Franchising Awards where Rosemary Harmata, Chatswood and Sydney CBD Franchise Owner was awarded the Runner-up in the Franchisee of the Year (less than 2 staff) Award and Louise Curtis, Lollypotz Franchisor was awarded Runner-Up in the Franchise Woman of the Year Award. For further information about this very exciting opportunity contact: Holly Beck 1300 565 597 franchise@lollypotz.com.au

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Doing the right thing is good for the soul. If you invest in the right franchise, it can also be good for the bank balance – and, these days, you have some interesting choices. Domini Stuart reports

give

green a go T

ake dry cleaning, for instance. It’s hardly the obvious place to start; for years, the industry has worked on the assumption that there is no alternative to perchloroethylene or perc – a chemical which has been linked to bowel and bladder cancers, can trigger asthma attacks and allergic reactions and does untold damage to the environment. However, Daisy Dry Cleaning has turned this

62 | FRANCHISING jul/aug 2012

thinking on its head with an advanced wet-cleaning process which cleans clothes thoroughly and safely, leaves no unpleasant smell and doesn’t harm people or the planet.

As the world’s greenest dry cleaner and the only one that is carbon neutral, Daisy has attracted a great deal of interest since its launch last year. There are now four outlets in Victoria

We focus on the fact that reducing the amount of energy and water you use and the amount of waste you generate makes good business sense

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and founder Paul Littmann plans to make Daisy the first national brand – though, in order to do that properly, he’s taking it slowly. “We’ve been approached by a lot of people who see the commercial potential of the

Daisy available at school clothing stores. Potential franchisees need an investment of about $200,000 for the initial franchise fee, equipment and store fit-out. “Our existing outlets are thriving financially – you’re

We own the stock throughout the sales process. This significantly reduces franchisees’ financial investment and improves their cash flow franchise but we’re not interested in anyone who might be tempted to cut corners,” he says. “We will only consider like-minded people who are committed to the underlying principle.” While the brand has a strong web presence, local support is the bedrock of a successful business. One innovative strategy centres on schools, where franchisees run education programs and make

certainly buying more than a wage,” says Littmann. “And, for the first time ever, a successful dry cleaning business can also bring quality of life.”

Helping businesses to save Times have changed from the days where being green was the expensive choice for business.

By helping companies to be as environmentally friendly as possible, GreenBizCheck also helps them to save money. “We focus on the fact that reducing the amount of energy and water you use and the amount of waste you generate makes good business sense,” says founding director Tony Hall. “We even provide a money-back guarantee – if a company doesn’t save the cost of certification in their first year, we give them a full refund. In the two and a half years we’ve been in business no-one has even broached the subject.” GreenBizCheck is the first online environmental certification company – clients simply complete an assessment, receive a report and implement the recommended actions in order to reach bronze, silver or gold levels of certification. Bureau Veritas, the world’s

The Zen team

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largest certification body, verifies the appropriate documentary evidence and the company is then entitled to display a logo demonstrating their commitment to sound environmental practices. Franchisees work largely face to face, educating potential clients and helping them to understand the value of certification. “It doesn’t make sense for us to do national blanket TV campaigns,” says Hall. “We encourage our people to work on local marketing and PR, to join organisations like the Chamber of Commerce and networking groups and to organise free boardroom presentations. Our franchisees feel passionate about building a successful business around doing something meaningful for their clients; they specialise in professional business development, not hard sell.” The local approach also helps to keep franchise costs down; the initial investment is $38,500 and overheads are low. “All you need is a laptop

and a phone,” says Hall. “There’s no stock, you can work from home and you don’t need staff to begin with, though you might want to take on sales and support people as your business grows.” After two years of franchising, GreenBizCheck has 24 franchised territories in Australia, Singapore and New Zealand and is about to launch in the US. “Most companies are aware of the need for this kind of process but put it off because they’re time poor,” says Hall. “We’re helping to move it higher up the list of priorities and we believe that, eventually, it’s something every company will do. With so many benefits for both the organisation and the environment, why wouldn’t they?”

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of its kind. Established in 2004 and franchising for the past three years, ZEN is now one of the largest home energy system companies operating in Australia, with four companyowned retail stores, five franchised stores and expansion into Victoria underway. Wes

Franchisees need to feel passionate about helping others to maintain air quality and reduce energy consumption Lacey, ZEN’s residential operations manager, believes that its commitment to educating the public and building strong brand A D _ F R WA T J A N _ 1 2 . p awareness is fundamental to its success.

Installing a solar home energy system

also works with franchisees “We have a dedicated national to help them build local area marketing team that works marketing plans that will collaboratively with external leverage our broader efforts. The agencies to produce insightful df Pa ge 1 2 8 / 1 1 / 1 1 , 1 1 : 4 0 AM current campaign, ‘It’s a great marketing and advertising day for solar’, has featured on campaigns,” he says. “The team

Picturing a career change? Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you. Property photography is an exciting and diverse industry, where no two days are the same. Each day you’ll be out and about photographing different properties and meeting lots of new SHRSOH DORQJ WKH ZD\ 7KLV LV GHÀQLWHO\ QRW D GHVN MRE Here’s some other reasons why you might choose Top Snap: No need for an expensive retail presence. All you need is your photography gear, vehicle and computer and you’re set to go. We work in a growth industry. Our services are in high demand with the residential and commercial real estate industry. We’ll help you succeed. You’ll get the usual intensive training, plus dedicated support with sales and marketing, that you’d expect from a high quality, established franchise system. “As a Top Snap franchisee I now have a great work/life balance. I work from home and see more of my family, and going to work and meeting lots of great people is fun and different every day. This has given me the career change and lifestyle I was looking for. I love it!” John Woolley, Mornington Peninsula, Victoria (pictured above)

Territories are available across Australia, please contact Rob Watkin on 0414 217 019 or email rob.watkin@topsnap.com today for more details. www.topsnap.com test11.indd 1

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PurairClean service in action

TV in both metropolitan and regional areas, as well as on billboards, in the press, online and at point-of-sale in stores. This high marketing and public relations exposure helps ZEN to stand out in a very competitive market.” Setting up a new retail store could cost between $200,000 and $350,000 plus GST; this includes the initial franchise fee, shop fit costs, territory set up, cars and initial training. However, as not all franchisees are required to invest in a retail store, investment could be as low as $50,000. “Franchisees need to have a high volume of stock on hand, which would normally require a significant cash investment,” adds Lacey. “But, as part of

Breathe easy

Dirty, inefficient air conditioners not only squander power, they can pose a health risk by circulating airborne bacteria. PurairClean franchisees help customers in the residential and small business market to save money – and to stay well – by ensuring that their systems are operating at peak performance. The business was developed by The Hygiene Services Group which, through Jaymak, has a well-established history of providing specialised cleaning services to the hospitality and food sector. “PurairClean is new to the market, so franchisees

For the first time ever, a successful dry cleaning business can also bring quality of life the ZEN franchise model, we own the stock throughout the sales process. This significantly reduces franchisees’ financial investment and improves their cash flow.” 68 | FRANCHISING JUL/AUG 2012

have an opportunity to select the territory they want,” says managing director, Mark Mackenzie. “At the same time, they have the security of knowing they’re supported by 14 WWW.FRANCHISE.NET.AU

years of business and franchising experience.” While television and newspaper advertising and letterbox drops generate widespread customer interest, each franchisee will work with a dedicated marketing team to formulate a tailored marketing plan. “We also offer assistance with creating business plans and marketing initiatives, preparing marketing materials including customised flyers, and national and state-based marketing negotiation,” says marketing manager, Alana Wilksch. PurairClean is at the lower end of the cost spectrum with an outlay of just $25,000 plus GST along with working capital and a suitable vehicle. A trade background in refrigeration is an advantage but not essential. And, once again, franchisees need to be on the right wavelength. “We like to offer franchises to people that share our values and beliefs,” says Mackenzie. “Along with a passion for life, people and challenges, they need to feel passionate about helping others to maintain air quality and reduce energy consumption.” F

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rise and shine

Most of us love our daily bread but what keeps us going back to the same bakers for a fresh loaf? Sarah Stowe reports on how franchised bakeries and patisseries are helping franchisees earn their crust

ealth-conscious Australians might be eating less bread, but they are spending more on organic, wholegrain and gourmet breads. So could the artisan loaf edge out the white slice as Aussie consumers develop a taste for gourmet breads? Per capita bread consumption has fallen 20 percent over the past 60 years, according to the Australian Bureau of Statistics. However, overall revenue from bread manufacturing is tipped to grow by around two percent annually over the next five years. And specialty industry

sectors such as artisan breads, wholegrains, organic and glutenfree breads, are expected to outperform the traditional white bread varieties. At analysis firm IBISWorld, Karen Dobie, general manager (Australia), predicts artisan and gourmet breads will grow by 14.1 percent this year, with wholemeal and seeded breads growing by 4.3 percent. In contrast, the white bread market will increase by 2.5 percent and bakery snacks will rise 2.1 percent. “Overall there is a strong trend away from industrially baked white breads towards in-store

Our customers see value in our product and our service offer. We don’t compete with the dollar breads, it’s a completely different offer 70 | FRANCHISING jul/aug 2012

www.franchise.net.au

supermarket bakery goods and specialty artisanal bakeries. Having said that, white bread is still the most popular bread variety, accounting for 45 percent of total bread sales,” says Dobie. “We’re moving towards a

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preferences is essential for the brand. The chia seed introduced into a bread range a couple of years ago tapped into the consumer trend towards health and proved a great marketing asset. Cost is not really a key component of the offer, Teasdale says. “Our customers see value in our product and our service offer. We don’t compete with the dollar breads, it’s a completely different offer.” What is important is building customer loyalty. “The face to face interactions mean we understand and meet the customers’ needs. “We are very active in LAM [local area marketing], finding a way that is aligned to the brand but one that suits franchisees’ needs.” At franchise chain Bakers Delight, To this end LAM consultants the emphasis is on both the quality help with strategic direction and of baking and service, explains artwork. There are also paper-based marketing manager, Kendra Teasdale. loyalty cards. “We bake fresh from scratch every But, stresses Teasdale, loyalty is day, adding ingredients one by one; AD_ F RGL OS E P _ 1 1 . p d f Pa ge 1 1 5 / 0 7 / 1 1 , driven by service. there are no frozen ingredients.” “At Bakers Delight our primary Keeping up with customer more European approach of buying bread daily or every couple of days, whereas historically it was more like twice a week. This is driving an emphasis on quality, freshness and variety,” says Dobie. “One of the key challenges of bread producers will be to balance their product portfolios to reflect changing consumer trends,” she adds. Bakery franchises account for just 20 percent of bread sales, against the supermarkets’ 67 percent share. But the brand clout gives franchisees an advantage over the independent bakeries which have eight percent of the market and specialty and artisan bakeries taking just five percent.

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point of difference is service. We have the opportunity to engage with our customers, we have connections with the local community and groups such as sporting clubs, schools and local charities.” The franchisee doesn’t need to be constantly front of house and engaging daily with customers; the focus on service is part of the philosophy of Bakers’ staff, says Teasdale. What is fundamental to the business is service training, and Bakers Delight has a mystery shopper program to ensure the service experience is up to scratch and if not, that it is enhanced.

Baker’s Club

Christian Coenen, franchisor at Baker’s Club, a brand that offers European style breads baked fresh during the day, says gluten free, low GI and pure rye breads

Baker’s Club has a European baking heritage

are becoming more popular. “Quality bread has a specialist function for the body. Good bread makes for a

healthy life,” he says, stressing his chain is “not just another bakery” offering as it does breads that cater for specific dietary needs. “People are thinking more about healthy food,” he adds. Thanks to his German baking heritage, Coenen has established a brand he 1 0 : 2 7 AM believes is a market leader in specialist breads, and one that offers a different

Quality bread has a specialist function for the body. Good bread makes for a healthy life. A D _ F R S I G MA Y _ 1 2 _ 2 . p d f Pa ge 2 1 3 / 0 4 / 1 2 , People are thinking more about healthy food

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approach to the traditional bakerâ&#x20AC;&#x2122;s routine. Bread is baked during the day, which allows for better working hours for those in the business, and fresh bread is available to consumers at 3pm. The bakeries also make sandwiches, to cater for the breakfast and lunch trade. In-store brochures, product information on the website and letterbox drops all serve to get the message out to locals. More high profile marketing is achieved with bus ads, using the eyecatching â&#x20AC;&#x2DC;baker boysâ&#x20AC;&#x2122; imagery (Christian and his brothers at a young age), and on local TV. Customers can benefit from their loyalty with a Bakers Dozen â&#x20AC;&#x201C; getting the 13th item free â&#x20AC;&#x201C; and a coffee loyalty card.

Muffin Break

Baking fresh every day, and on-site, is the catch cry of the independent baker; itâ&#x20AC;&#x2122;s what sets the baked goods apart from the supermarket shelves of pre-packaged loaves. And the distinction stands for cafĂŠs offering a freshly baked sweet treat too. At Muffin Break, national marketing manager Drew Eide says accentuating the

Every fifth coffee is free for Muffin Break club members

brandâ&#x20AC;&#x2122;s points of difference is a daily focus. And thatâ&#x20AC;&#x2122;s baking in stores every day. â&#x20AC;&#x153;Nearly everything in our cabinets is made on-site every day, even in kiosks.â&#x20AC;? The excess is donated to shelters and charitable causes. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s about continuous innovation in products and marketing. Product innovation is critical.â&#x20AC;? The menu is constantly updated. There are now 100 varieties in the traditional

range, including a WeightWatchers endorsed range and gluten free options. Despite the name, which does give the network of 250-plus stores its focus, the menu includes more than muffins â&#x20AC;&#x201C; the cafĂŠ chain offers breakfast, slices, a lunch selection including wraps and gourmet tartlets as well as cold beverages. But thereâ&#x20AC;&#x2122;s plenty of competition for the customersâ&#x20AC;&#x2122; tastebuds. How does Muffin Break retain its customers? Eide stresses the importance of innovation and draws attention to the loyalty program. â&#x20AC;&#x153;To members of the Muffin Break club every fifth coffee is free. In my mind this is the strongest coffee loyalty program.â&#x20AC;? There are more than 4000 active plastic barcoded loyalty cards. When a customer registers online, a free coffee is loaded on to the card; they can enjoy a free muffin around their birthday too; electronic direct mail is used to offer a free coffee to thank customers for their loyalty. â&#x20AC;&#x153;We really build loyalty and give something back to them. We have a feedback mechanism â&#x20AC;&#x201C; paper cards with pencils franchisees can hand out. We encourage franchisees to send back

â&#x20AC;&#x153;Owning a SIGNARAMA is more than a job â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s a lifestyle, itâ&#x20AC;&#x2122;s independence, itâ&#x20AC;&#x2122;s ďŹ nancial freedom, itâ&#x20AC;&#x2122;s challenging but most of all itâ&#x20AC;&#x2122;s fun! With a visible product that is in constant demand and highly proďŹ table, combined with the strengths of the SIGNARAMA system, I have a successful business now in its 11th year. Thanks Sign*A*Rama for the opportunity to excelâ&#x20AC;? Rhod Webb, SIGNARAMA Sydney CBD North, NSW

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Bakeries & patisseries | Opportunities

Eide says there is a massive the cards so we can address emphasis on training to deliver the issues. It’s a very advanced consistency with network feedback system, we give a 24 competitions for baristas and hour response to each feedback bakers. comment.” The brand has been a finalist The feedback is used in regular in the BRW Australian Retailer of reports to outline monthly trends the Year awards for marketing, a and concerns. category based around customer It allows the management team loyalty. to address issues, whether they “We are being recognised are product-based or practical, for our efforts in loyalty and such as in-store cleanliness, and accentuating our differences. for the state manager to follow We’ve got to be the best,” reiterates this up with the franchisee – Eide,“some stores have 40 to 50 whether it’s a reminder about competing outlets in a food court.” standards or customer praise. “Customers choose the brand because of the choice, maybe they want a lighter option, maybe they Fotios Koutsioukis and his wife are looking for gluten free.” Toni launched their franchise The aim is to keep the cabinets offer this year at the Sydney full all day long. Franchising and Business “Very often we have a point Opportunities Expo. It was of sale communications strategy Koutsioukis senior who started in the afternoon, we offer good the Hurstville Hot Bread shop value packs to move stock so the in 1991 with his brother; it was A D _ F R V A N MA Y _ 1 2 . p d f Pa ge 1 1 8 / 0 4 / 1 2 , franchisee doesn’t have to offload rebranded in 1996 to Taste product.” of Europe to reflect the more

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cosmopolitan product that has since wooed the locals of Double Bay, where Fotios moved the business in 2004. Dark German breads, sourdough, even gluten free

The bread oven means the smell of freshly baked breads and croissants permeates the café bread, are on the shelves. “We listen to customer feedback, we started with a Swedish rye, which was very popular, then people wanted a German rye.” Without direct competition in

the wealthy suburb the business was able to capture the market as a fresh local bakery. “We’ve adapted to the market,” he says. Breads, patisserie and light café meals are on the menu, with coffee and bread proving the most popular purchases at the Double Bay store. “Our customers are very sugar conscious,” says Fotios. As franchisees join the network they will be able to customise their food orders to match local tastes. “If they are selling more breads, we’ll minimise the cake quantities,” he says. At Double Bay the café concept

is very important to the business and a small kitchen allows for the preparation of burgers, pizzas and sandwiches; the bread oven means the smell of freshly baked breads and croissants permeates the café [the products are delivered frozen and baked daily] When it comes to building loyalty, Fotios offers loyalty cards to customers, and discounts to regulars who pre-order lunches by fax. Spreading the word about the brand takes a traditional path: local paper advertising, direct mail, community press and of course, word of mouth. F

The cupcake craze The Cupcake Bakery story started in 2006. “I’ve always been interested in running a business,” says Alex Perry, who along with his wife Angela, became the typical at-home start-up. “We started baking cupcakes at home; after a few weeks we were selling them at markets and had a website.” Before long the couple had three stores in Melbourne and had been approached by consulting firm DC Strategy who worked with them on expanding the brand and raising capital through franchising. The latest outlet in Sydney’s movie theatre strip at the Event Cinema, George Street takes the business’s portfolio to 17 stores. Cupcakes have become starry little things. “Everyone knows cupcakes are crazy at the moment. There’s Donna Hay, Masterchef, Mothers Day, cookbooks galore, aprons, cupcake stands…” says Perry. But he believes these bite sized stars of the baking world are not just a fashion fad. “As it becomes more ubiquitous in Australian life, as in the US, the craze will last a long time, there’s an excitement for cupcakes.” Having fun with the brand is key to customer loyalty, says Perry. A Miss Velvet character, named after one of its most popular menu options, has been recently introduced as a brand mascot. Right now quirky competitions with

76 | FRANCHISING JUL/AUG 2012

great prizes such as a trip to New York are drawing the fans but as the network grows there will be a bigger marketing fund to draw on, Perry points out. When the brand moves into the Queensland market it will trumpet its arrival with a TV ad campaign. The format is for the cupcakes to be made from scratch in a central kitchen in either Melbourne or Sydney and delivered to the stores in each state. When the company enters the Brisbane market it will add a local factory. There’s much more to the brand than irresistible flavours and a sugary hit, insists Perry, who is confident of the financial model and is backing his business in the marketplace. In

WWW.FRANCHISE.NET.AU

comparison to competing cupcake chains, he says “we are far more accessible, have bigger brand awareness – the number of fans on Facebook (21,000 plus) and have placement on Google. We’re growing fast and will have about 35 outlets by the end of the year. The fact is we will be the biggest brand.”

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Opportunities|Accommodation

Fancy a life as a franchisee in the hospitality sector? If running an accommodation business is in your sights, what skills will you need to bring?

ACCOMMODATING

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he travel and tourism market is tough. But, say franchise players in this arena, there is still plenty of business to be done.

Hospitality experience preferred? ✘

Quest

Paul Constantinou, who heads up Quest Serviced Apartments, a property group directed at the business market, says “Given the overall climate, we’ve done well, we’ve stayed very focused. “We watch and listen to customers whoever they are; we’ve watched how their needs have changed. One aspect is the needs within the business – we’re a product there to help them do their job – and to create a good environment to get work done.” The Quest business model is to outsource extras – food and beverage, for instance – that require specific skill sets and training. 78 | FRANCHISING JUL/AUG 2012

WWW.FRANCHISE.NET.AU

“We focus on core character traits rather than skill sets,” he says. “Anyone can make a bed, anyone can check someone in. Technology just helps. We focus on people who can build relationships, who can talk person to person.” Franchisees don’t need specific experience or a string of qualifications; they don’t need a hospitality background – in fact, 70 percent of the franchise network comes from outside the sector. But they need to be good at building relationships. “There are only two occasions when you get to see the customer, they don’t hang around, so make sure you’re at the point of contact – checking in and checking out.” What is also essential for Constantinou is that franchisees have clear goals, and that these are allied to the franchisor’s aims, whether these are financial or human goals. “If there’s no alignment with us, it’s just coming to work as an employee. “We want someone who always tries to do a bit better – your personal best – one percent better each week. If you get that right, everything else follows. Disciplines and systems don’t make it work. We need

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We have developed a Training Industry opportunity for talented individuals to leverage their skills and to achieve greater returns for their training skills. Become part of a proven business model and gain access to the current scope of over 60 Qualifications! As an industry leader you can start building your business NOW!

Become a franchisee and get access to the KNOWLEDGE and EXPERTISE of a PROVEN BUSINESS MODEL and more importantly you can GET STARTED TODAY!

HISE FRANC ITIES TUN OPPOR ABLE AVAIL

For a franchise information pack visit www.mia.edu.au/business-opportunities Or if you prefer to speak to our team today please call

1300 664 908

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not so easy when you are forced to. franchisees driving the franchisor. “We have to consider what our If they ask the questions, we keep customers are doing tomorrow; evolving. where will they want to stay? “We can’t change everything at Some of the business is not doing once. And what got us here isn’t AD_ F RE COJ AN_ 1 2 . p d f Pa ge 1 1 / 1 2 / 1 1 , 4 : 2 6 PM so well. Retail work won’t be the going to get us there. It’s easy to same, we might like it to be, but make changes when you want to,

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www.franchise.net.au

Paul Constantinou

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it won’t be. We have to look at skill sets meeting our customer needs.” Corporations are trying to manage travel costs and frequently use travel managers; Quest account managers liaise with both parties. Constantinou believes there is too much emphasis on price-conscious web-based travel arrangements which don’t suit business. “Corporations don’t want this, they want certainty.” Anyone travelling for work wants efficiency and a friendly face; creating a successful model in this market is not about marble tops or teak, he says. “We try to create an environment that people want to come back to. We build a culture through staff.”

Grand Mercure accommodation

Hospitality experience preferred? ✔ Accor

The Accor chain has more than 3500 hotels throughout the world, and more than 70 franchised in Australia and New Zealand. Neil Scanlan is general manager of Accor franchise hotels. “We franchise a myriad of our brands; the most franchised are Mercure and All Seasons. These are non-standardised brands and the power of the brand is important.”

Scanlan explains the foundation of the franchise offer. “We’ve got four pillars: the brand; distribution – this is the web, access to travel agents and the backbone of reservations. We need to be seen, accessible and live. The third is loyalty, with our Accor members brought to the franchisee; and then, there’s procurement and huge purchasing power.” The appeal of a well-known brand behind a business is undeniable, says Scanlan. “We are getting more calls than ever because people identify that it’s

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involved in the business. In our larger franchises it’s more of an asset,” he says. Whatever the level though, it’s about engagement from the top.

Grand Mercure apartment

Hospitality experience preferred? ✔ Choice

Neil Scanlan

tough, and you’re not going to maximise returns by yourself.” Linking to a franchise chain gives franchisee support in their business, not just through the brand name but in practical terms such as IT. “Independent operators are finding the cost of technology is difficult to meet,” Scanlan says. “What we’re looking for is someone with previous experience in the hospitality industry, someone with a basic understanding of customer service. Especially in the smaller hotels we want someone who will be

We are getting more calls than ever because people identify it’s tough, and you’re not going to maximise returns by yourself

In the Choice group, Sydney’s Rendezvous Stafford Hotel

82 | FRANCHISING JUL/AUG 2012

There are four brands from three-star motel style accommodation up to four and a half-star traditional hotel style properties. The group is well-established in the corporate market and in the last two years has focused more attention on the still-lucrative leisure market, says Trent Fraser, CEO Choice Australasia. To tap into this as a franchisee doesn’t require any qualifications, though this is a network that values business or hospitality experience. The daily demands for a franchisee depend on the size of the property and its staffing levels. “Because of our market spread we have CBD hotels with over 200 rooms and significant staffing numbers. On the other hand we have regional motel style properties where the franchisee is the receptionist, the breakfast cook, the housekeeper and the accountant. As you can imagine, this makes for a very demanding work schedule. “In terms of how the franchisee interacts with Choice Hotels on a daily basis, there is a requirement to check rates and inventory daily, enter Choice Hotels delivered reservations into their property management system and to check emails,” says Fraser. Training includes online learning via webinars, on-site training, a four-day program which is brand and industry focused, and help desk follow-up to ensure each new franchisee is comfortable with, and making the full use of, systems and procedures. Field support managers are the key link between the franchisee and Choice Hotels as franchisor, and their role includes business performance analysis. “We not only analyse business delivered to the

Trent Fraser

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property via Choice Hotels channels but all channels and how we go about making improvements to the business in order to increase that top line.” Room sales are boosted through a national sales team and Fraser points out “We are the only remaining local hotel reservations call centre, operating seven days a week, including public holidays serviced by a team that is trained to convert more inquiries into higher yielding bookings.” Access to customers comes through multiple channels: preferred rate access with key consortia groups via the Global Distribution System (GDS), direct links to key online travel agents and exposure to key inbound and wholesale agents as well as distribution via Choice’s own branded websites, says Fraser. There is support from marketing in print, online and on television. “This is backed up by access to more than 15 million loyal customers globally, via our loyalty program, Choice Privileges.”

Hospitality experience preferred? ✔ BIG4

This is a marketing franchise group, with a different structure from the standard format where there is a controlled business model; it is designed to inject the power of the brand into existing businesses. Over the last 33 years the BIG4 group has incorporated caravan parks, campsites and other accommodation venues. There’s a vigorous process for potential franchisees to undergo. “The business needs to be of the quality and standard that fits our brand promise,” says CEO Ray Schleib. This promise underpins the business: operators and the park need to show excellence in customer service, park presentation and facilities,

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location. We don’t have territories but we don’t want to crowd out our existing members so we are looking for strategic locations.” Other BIG4 members in the area are approached for their feedback on the proposed new franchisee – does the park and the operator fit with the business model. Says Schleib, “The business started as a cooperative members group in 1979, the original big four, and there’s still a bit of a feel for that.” While the brand has high consumer recall and the family-focused parks with a string of facilities are most visible, there is a range of accommodation available in the group, he says. “Probably 40 out of 180 are big parks, so 140 are mum and dad operations.” The future is about regional expansion: with the strength of the brand built on its dominant eastern seaboard sites, Schleib wants to grow the BIG4 name west of the Great Divide. Big4 Bright “A national footprint is a key strategy. How do you differentiate yourself? It’s quality, how it’s cleanliness and safety, and excellence in delivering a delivered, relevant to the location and its facility.” unique holiday experience. The brand is able to offer buying power, and “The skill set has to match the promise. We support local area marketing – “we provide full want someone who knows how to run a park, run resources”. a profitable business and not embarrass the brand. Technology has also been a strong driver, with We’re looking for drive and ambition and to see how A D _ F R V I P MA R _ 1 2 . p d f Pa ge 1 7 / 0 2 / 1 2 , 2 : 5 6 PM high online traffic and a mobile phone web booking we can add value. system introduced in November 2011. F “We talk to the park owner, we look at the

✓Drought proof ✓Fire proof ✓Flood proof ✓Recession proof Declared V.I.P. Best Value Franchise System under $50K in 2009 & 2010 V.I.P. franchises are available in: • Garden maintenance and lawn mowing • Home cleaning • Commerical cleaning Plus receive guaranteed initial work, equipment and ongoing support.

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84 | FRANCHISING jul/aug 2012

13 2613

Call us on or visit www.vipfranchisesales.com.au www.franchise.net.au

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Opportunities|Brisbane Expo: FREE tickets at www.franchisingexpo.com.au

Join The

ride!

get on the franchising bandwagon in the sunshine state when the expo comes to town

f you’re searching for a business opportunity the upcoming expo in Brisbane is a great place to uncover a host of options; there will be a broad selection across industries, business size and structure, whether the systems that appeal are franchised, licensed or other business opportunities. Entrepreneurs from fledgling firms with a new idea will be rubbing shoulders with established recruiters and franchisor teams from brands with plenty of experience in growing a network of independent business owners. And that’s an interesting place to be – an opportunity to view and consider some of the systems in the marketplace, to see how these businesses – who want you to embrace their brand passion and deliver it to the customer – actually convey the message to you. Of course there will be familiar favourites there, but you might just find an exciting

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www.FRANCHISe.Net.AU

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new concept that offers a package that is just right for you. Visiting a Franchising and Business Opportunities Expo is also a chance to discover if the reality of franchising is for you, with plenty of free advice on hand, shared experiences and top tips from those in the know. That’s what you will get from the seminar series that runs daily – from financial and business guidance from franchise-experienced advisers through to pointers for success from franchisees who have been there and done that – you’ll be able to hear their stories and pick up some tips in the Franchisee Success panels sessions. And for specific queries about a franchise agreement, legal issue or funding it’s worth booking a time slot with a local expert. Just pop along to the free advice centre [it will be facing you as soon as you enter the hall] and reserve your own appointment – for free! So let’s look at some of the goodies on offer….

Baker’s Club

Baker’s Club is a leader in the health food market, using the operational model of the fast food industry while innovating the traditional baking practice and combining a bakery, sandwich bar, pie shop and café all in one without the traditional night work of a bakery. It offers the traditional franchise business with personal involvement of the franchisee as well as an investor business/store under full management. The original baking business was founded in 1850 in Germany and later in France. The franchise business started three years ago on the Gold Coast and Brisbane. Currently there are two franchise stores and two corporate stores. A turnkey franchise costs from $250,000 to $350,000, depending on size and location, with the term of a franchise agreement in line with

the lease agreement. What skills are you looking for in a franchisee? Franchisees need to have people skills, need to be clean and quick and have a friendly appearance. What are your expansion plans for 2012-13? We are expecting more demands for fresh, healthy products, and therefore a significant growth in 2012-2013.

Fortune Plus

If you’re looking for a business opportunity in the money markets, take a look at currency trading with Fortune Plus. The business was established in 2006 and has developed a simple approach that only requires a computer and access to the internet. The company says the knowledge and skills you acquire trading the Forex, Metals and Indices market will give you confidence, power and control of your financial future. Fortune Plus can tailor make a package for an investment as low as $9,000.

Franchise Legal Franchise Legal is a commercial law firm which practices exclusively in franchising,

The details

Venue: Brisbane Convention Exhibitio n Centre Dates: 21 to 22 July 2012 Times: Sat: 10am to 5pm; Sun: 10am to 4pm Free tickets: visit www.franchisingex po.com.au

acting for both franchisors and franchisees. Lawyers in Brisbane, Sydney and Melbourne offer extensive legal and commercial experience, having worked with many leading franchise systems in Australia and internationally. The business was established in 2009 and is itself a franchised business, with two franchisees in Brisbane and Sydney.

Mas Tax

Mas Tax accountants provide tax, accounting and bookkeeping services to clients ranging from individuals to small and medium enterprises. There are minimal overheads with the no-rent, home-office business model that provides IT support with remote and mobile access. Mas Tas provides a laptop with software preloaded, including MYOB, Quick Books and Handisoft accounting software – all licensed for the

www.franchise.net.au

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g? Whoâ&#x20AC;&#x2122;s exhibitnitin ies with A1

er opportu Look out too for oth ational, Asbestos Audits Intern Testing and Tagging, es, Jam th riblue, Coffee wi Cafe2U [see p96], Ca Jamesâ&#x20AC;&#x2122; , Home IT Business, zas Piz et Crust Gourm , Etc xes Bo il Ma Mex, Home Services, Mad p98], ational, Oporto [see ern Int ss Pre an tem Minu & ink Th s, e Alarm Solution Senior Helpers, Smok d an op Sh ke eca The Chees Grow Rich Seminars, . ols Total To

term of the agreement, with upgrades and phone support included. There is marketing support at national and local levels, a corporate branding package supplied, and business coaching.

PostNet Business Centres

AD_ F RF L OJ AN_ 1 2 . p d f

Pa ge

This franchise provides services such as digital, copying and

88| FRANCHISING JUL/AUG 2012

printing, packing and shopping, mail merge, promotional items, signs and banners, office products and stationery. The business started in 1983 and has been franchising since 1992, has 12 franchisees in Australia; the brand has 920 franchisees across eight countries. A turnkey franchise costs from $150,000 to $250,000, depending on the location and total area, and an agreement is 10 years with a 10 year option. What skills are you looking for in a franchisee? PostNet is a retail and service business, so we are looking for people with outgoing personalities that would do an excellent job of representing the brand and their business to the public. How long does it the franchise 1 4selection / 1 1 / process 1 1 , take? 1 0 : 2 5 AM It takes approximately three to nine months.

www.franchise.net.au

What are your expansion plans for 2012 to13? To reach a total of 20 to 30 franchisees in Australia.

PurairClean

Air quality in the home is the key focus; the company endeavours to reduce air-borne bacteria and reduce the running costs of airconditioning systems. This is a new franchise opportunity through The Hygiene Services Group which includes Jaymak Australia, a specialist cleaning service for the hospitality

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FRANCHISE OPPORTUNITIES AVAILABLE

BUILD WITH US Looking for new franchisees across Australia to keep up with demand

“Total Tools know their customers, and their tools. We consider them a true business partner in every sense.” Nick Pritchard, Managing Director, Irwin Tools

“Our company’s growth with Total Tools has been outstanding and we consider them a great retail partner.” Tom Fukaya, Managing Director Sales and Marketing, Makita Australia

www.totaltools.com.au

Over 21 Years as Australia’s Premier Trade and Industrial Tool Retailer For further information contact the Franchise Sales Manager

s National Support Ofﬁce s National Supplier Arrangements s National Marketing Strategies s Successful Business Model s Successful Private Brand Program

mobile 0438 214 314 tel 03 9394 4300 email newstores@totaltools.com.au

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and food sector that has 22 franchisees. A turnkey franchise costs $27,000 plus the purchase of a suitable vehicle. What skills are you looking for in a franchisee? No qualifications are required but a trade background in refrigeration would be an advantage. We like to offer franchises to people that share our values and beliefs, who have

We are looking for people with outgoing personalities that would do an excellent job of representing the brand and their business to the public a passion for life, people and challenges, are service and quality oriented, are tenacious, comply with systems and procedures and are passionate about air quality and energy reduction. How long does the franchise selection process take? This depends on how eager the applicant is to get started. The selection process involves an interview with the managing director and management team in Adelaide. If all necessary 90| FRANCHISING JUL/AUG 2012

paperwork is in order a franchisee may start within weeks of applying. What are your expansion plans for 2012-13? Plans for expansion in 2012/2013 are to gain franchisees in Queensland and New South Wales, including capital cities and regional areas.

Skin Naturelle

Winner of the APAA Best Sole Practitioner award two years running (2010 and 2011), Skin Naturelle is a home beauty business opportunity that delivers all the major services of a retail outlet beauty salon without the costs. This business has no rent, low overheads and no travel expenses. Itâ&#x20AC;&#x2122;s the perfect opportunity for at-home mums wanting to get back into the beauty industry, therapists tired of working for someone else and the professional wanting an investment business from home. What skills are you looking for in a franchisee? Whatâ&#x20AC;&#x2122;s needed is a Diploma Certified in Beauty Therapy (if doing treatments yourself), access to a minimum of 3m x 5m space with external access, access to working capital, a strong desire to provide skin and beauty results, determination, drive and enthusiasm.

www.franchise.net.au

What are your expansion plans for 2012-13? To grow the franchise to 10 franchise locations.

VIP Home Services

This was the first company to start gardening franchising in 1979. Now, V.I.P. has over 1,100 franchises across home and commercial cleaning, carpet cleaning, window cleaning and garden maintenance. The turnkey cost of a franchise is from $25,000 to $45,000 depending on the income level purchased; a franchise agreement term is seven years with a second seven year option. What skills are you looking for in a franchisee? A V.I.P. franchisee doesnâ&#x20AC;&#x2122;t need any prior skills as all training is provided, however people who have good customer service skills and enjoy working with people are a great fit. What are your expansion plans for 2012-13? We want to grow nationally and significantly increase our number of franchisees as we have too much work for our existing network of franchisees. F

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Become a key ingredient in our success McDonald’s has always been a franchising operation and has relied on its Franchisees to play a major role in the success of the business. The organisation has grown from one restaurant in 1971 to 867 restaurants across the country in just over 40 years, with almost 80 percent of McDonald’s restaurants owned or operated by Franchisees, from which over 1.7 million Australians are served every day. Having dynamic individuals that are able to create high performance environments locally in their restaurants is crucial. Tony Aichinger, the McDonald’s Franchisee in the Wagga Wagga area in regional NSW, is one of these individuals, here’s his story.

Tony’s Story Tony Aichinger, along with his wife Luita and four children, is the Licensee of four McDonald’s restaurants. Before entering the McDonald’s franchising system in 1996, Tony worked with the NSW Police Force for 10 years. “I loved being a police officer but after years in the service felt that there would be additional growth and progression opportunities elsewhere. I came home one day, opened the paper and saw that McDonald’s was opening a restaurant in Gundagai, very close to where we were living at the time. I knew next to nothing about McDonald’s, I called the owner of an existing restaurant, Ken Tagg, that I had met previously. He told me in McDonalds “You get out what you put in” and he was right!” It was the tried and trusted franchising formula of McDonald’s that really appealed to Tony. “Being a Licensee with McDonald’s comes with the same opportunities and responsibilities of running your own business, but with McDonalds added support. The benefits it provides over franchising with other businesses are unrivalled.” Tony initially took on a new restaurant on the Hume Highway at Gundagai. Then moved to Wagga Wagga in 2000 and has grown the market from two to four restaurants with staff numbers exceeding 300. “I am fortunate enough to be part of a company that allows me to dovetail my interests into my own business. We facilitated the building and opening of the local Wagga Wagga Ronald McDonald House seven years ago and have also participated in several other fundraising initiatives over the years, including the development of the Herds of Hope, a national initiative which brings together the rural and business communities; and the Southern NSW Ride for Sick Kids.” “To raise much needed funds for Ronald McDonald House Charities, I established ‘Herds of Hope’ with other members of the Australian Beef industry. It was a natural fit when you consider that McDonald’s buys over 100 thousand tonnes of Australian beef per annum. By placing Herds of Hope ear tags on cattle, and donating the proceeds of sale, the rural community of Australia have a great opportunity to give back to children from the bush through Ronald McDonald House Charities.” In April this year, Tony and Luita were awarded the Golden Arch Award, for delivering a superior customer experience across their restaurants, organising local community initiatives, and enhancing the reputation of the McDonald’s brand. The award is only presented to the top one percent of McDonald’s operators across the globe every two years, and is only the 14th time that an Australian McDonald’s Licensee has been recognised. Tony has illustrated through his achievements how to bring together a great sense of community involvement with fantastic business results.

Do you have what it takes? Contact us for more information at www.mcdonalds.com.au/franchiseopportunities

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Gold has always been a great investment. Some investments stand the test of time far better than others. Just look at McDonaldâ&#x20AC;&#x2122;s franchisees. For over 55 years our franchise model has proven itself an outstanding performer, providing franchisees world class training, systems and support coupled with ROI satisfaction for their efforts. The McDonaldâ&#x20AC;&#x2122;s business continues to go from strength to strength. Take a closer look to explore the allure of such a golden business opportunity.

Mcdonalds.com.au/franchiseopportunities

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Opportunities|Melbourne Expo: FREE tickets at www.franchisingexpo.com.au

walk

this way T

he expo is a showcase for the sector, with big name brands and new names in the industry taking advantage of the chance to reach visitors keen to make their mark in business. On show will be mobile businesses, food retailers, business service opportunities, coaching systems, investment models and domestic services. Some businesses are well established and have a high profile within their field, others are just starting out. There is something for everyone, whether you are at the beginning of the journey and just want to know more about what’s involved in running your own business, whether you have pinpointed franchising as a route for you and are looking to find the right system, or you’re well advanced down the track towards business ownership and want to get some free advice from industry experts. Daily seminars offer visitors the chance to discover the ins and outs of being a franchisee from franchisees themselves, and to pick up some essential advice from financial, legal and government institutions. For more one-to-one guidance a free advice centre offers

94| FRANCHISING JUL/AUG 2012

Plan a trip to the Melbourne Franchising and Business Opportunities Expo and step on the path to business ownership

tailsention The dlboeurn e Conv

Venue: Me e and Exhibition Centr st 2012 gu Au 19 Dates: 17 to to 5pm; m 10a at: /S Fri Times: Sun: 10am to 4pm Free tickets: gexpo.com.au visit www.franchisin

appointments with relevant experts. Choosing which system to invest in isn’t an easy process so it’s good to get help where you can. The Franchise Council of Australia can give you some pointers and you can stop by the Franchising Magazine Networking Lounge for a coffee and a chat. Take a look at some of the exhibitor profiles below:

Asbestos Audits International

The business is effective management of asbestos in the workplace and home. Formerly known as QBM, Asbestos Audits International has been undertaking asbestos audits and assisting property owners and managers, to manage asbestos within their buildings for over 15 years and has some of the world’s largest corporations as customers. AAI started in Townsville in 1997. It now operates www.franchise.net.au

AD_FRXPRJUL_12.pdf FM Coffee&go Right Hand.pdf

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11:14:09 AM

START LIVING

and get your life back

By operating in the booming MOBILE coffee market you can earn a Guaranteed $1,500 per week for the first 20 weeks*

Introducing Xpresso Delight coffee&go. An exciting NEW business concept for a select few who want to get out of the rat race and into life. This is especially for those who love the great outdoors, enjoy building relationships and want to control their own destiny. By tapping into the exploding recession proof coffee market and with gross profit margins greater than 80% this opportunity can allow you to “Start Living and get your life back in the process”.

This is a limited Franchise opportunity with exclusive Territories selling FAST: • Are sick of your current situation? Get out NOW

• $1,500 Per Week INCOME Guarantee for 20 WEEKS

• Get that cafe experience without the overheads

• Do not wait to make a profit get INCOME from DAY 1

• Low capital investment from only$89,900 + GST

• Unique proven Marketing Plan that get results FAST

Division of Australia’s Fastest Growing Franchises as listed in BRW Magazine 08-09-10-11-12

Call NOW or visit our website at: www.xpressodelightcoffeeandgo.com.au QLD: 0435 224 096 NSW: 0419 203 940 VIC: 0438 563 885 SA: 0400 297 959 WA: 0406 584 340 $1,500 per week income guarantee is outlined in the Xpresso Delight Coffee&go Franchise Agreement and is subject to conditions.

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What are your expansion plans for 2012-13? The goal is to have 20 franchises, with plans to be operating 49 franchisees across Australia within two years.

Cafe2U across Australia and New Zealand with the head office based in Brisbane. The business model is purely a franchise offering with other property services through sister company Quality Building Management also available to franchisees depending on their expertise and training. The franchising model began in April 2012 and has one franchise operating in two zones on the Gold Coast and northern New South Wales with some Victorian franchisees close to completion. The turnkey cost of a franchise is $60,000. What skills are you looking for in a franchisee? AD_ F RGRE Y J UL _ 1 2 . p d f Knowledge and experience in the building industry.

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Cafe2U is the worldâ&#x20AC;&#x2122;s largest mobile coffee franchise specialising in delivering high quality espresso coffee as well as a range of complementary food. There are two parts to the business - your set weekday run servicing businesses within your territory and the highly lucrative weekend event opportunities. The business began in 2000 and was franchised in 2004 and there are 130 Australian franchisees now. The brand has overseas franchisees too: 60 in the UK, three in the US, and one in New Zealand. The turnkey cost is $129,600 + GST, including a fully fitted out brand new Mercedes Vito. What skills are you looking for in a 1 5 / 0 6 / 1 2 , 1 1 : 4 4 franchisee? What we are looking for is optimism,

Pa ge

www.franchise.net.au

Exhibitors include:

Asbestos Audits International ACCC Cafe2U Cariblue Chatime Fair Work Ombudsman Home IT Business Mail Boxes Etc Minuteman Press International NAB Oporto Positive Training PostNet [see p88] RP Vending Senior Helpers Tasti D-Lite The Successful Investor Think & Grow Rich Seminars VIP Home Services [see p90]

determination and the ability to interact with the customer. What are your expansion plans for 2012-13? In Australia we will roll out another AM 20 to 25 franchises. Internationally we are entering new markets in the US,

SNO1013FranchisePre.pdf

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SapientNitro SNO 1013

JOIN THE

DREAM TEAM VOTED ONE OF AUSTRALIA’S

TOP 10 FRANCHISE SYSTEMS

We are looking for dynamic people who love dealing with others and are passionate about retailing. The Snooze brand has a strong history of over 30 years in retailing and has built a very solid franchise system. We provide franchise partners with a stable platform to start their business and offer support across the entire business including: • Marketing and Promotional Support • Product Development and Buying Power • Proven operating system that includes comprehensive product and sales training • Business Management support from our on the ground field team • Assistance in site selection and property negotiations

For more details visit snooze.com.au or call Alistair Browne, our Franchise Network Development Manager on 0427 401 169

It’s amazing what a little snooze can do. snooze.com.au

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Opportunities|Melbourne Expo: FREE tickets at www.franchisingexpo.com.au

Germany, New Zealand and South Africa which all have enormous growth potential.

Oporto

Oporto is one of Australia’s largest and most successful food franchises, specialising in premium fresh-grilled chicken and burgers. As a fast growing and popular franchise operation this is an ideal opportunity for people with high aspirations. The company is always on the lookout for motivated people to share in its success. Oporto is one of only three brands to have been named among BRW’s Fast Franchises every year since the list’s inception nine years ago. How old is the business, and how long have you been franchising? Oporto started trading in North Bondi in 1986 and began franchising in 1996. There are now 90 franchisees and 133 stores, with master franchisees in New Zealand and the US. The turnkey cost of a franchise is from $500,000; a franchise agreement is three five year options. Who are you hoping to attract at the expo? New franchisees that are passionate about people. Who will be representing your brand at the expo? Fred Pose, franchise development manager. What one question should visitors ask? What is the future of the brand?

Tasti D-Lite

Tasti D-Lite is a low fat soft serve ice cream promoted as a sweet treat with less of what people don’t need – fat, calories, sugar and carbs – and more of what they want…creamy, delicious taste. It’s also a franchised retail concept positioned to capitalise on consumers’ love for frozen desserts and the growing trend toward healthier living and eating. The US brand has over 25 years of experience. In addition to Australia, there are master franchisees in Dubai, Central America, Mexico and the Middle East. 98| FRANCHISING JUL/AUG 2012

Guilt-free ice cream at Tasti D-Lite

Tasti D-Lite Australia has been operating since September 2011.It has one franchisee and offers single unit franchises, multiple-unit franchises and area developer programs. Turnkey costs range from $200,000 to $400,000. Who are you hoping to attract at the expo? People who, in looking for a new business opportunity, are excited by the prospect of a healthier soft serve ice cream product and the opportunity to be part of an emerging high-profile brand. Who will be representing your brand at the expo? Franchise Selection will be handling franchise enquiries and Tasti D-Lite Australia will be sampling the product throughout the expo. What one question should visitors ask? Why is Tasti D-Lite superior to other soft serve ice cream and other frozen yoghurt products available in Australia?

RP Vending

This is a simple business with a clear and straight forward structure. The business is made up of a fleet of vending machines that are placed in sites such as offices, factories and cafeterias providing them with snacks and drinks. The owner maintains their machines by stocking, cleaning and collecting their money from the machine. This business can be run as either a full-time or part-time operation with www.franchise.net.au

different business packages available from RP Vending Systems. With complete ownership of the business, you make all the decisions including what products you sell, what prices to charge and even what times you work. This is a business that you purchase outright. There are no ongoing fees or royalties. A typical part–time vending operation would cost about $50,000 and a full time operation would cost approximately $100,000. The ongoing membership to the RP Buyers Group, Technical Support Hotline and other back up facilities are all free of charge. RP Vending Systems has more than 550 owners across Australia. Who are you hoping to attract at the expo? We are looking for friendly and motivated people, who have a knack for providing great customer service. The flexibility and simplicity of vending makes it accessible to all types of people and our owners are diverse, coming from many different walks of life. Who will be representing your brand at the expo? We will have David Green on our stand at the expo. He has been with the company for over a decade and knows the industry and business like the back of his hand. What one question should visitors ask? Ask us what makes our business unique and profitable and why other people have chosen to come on board with RP Vending Systems. F

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An investment with the lot. We specialise in fresh-grilled chicken and burgers with the unique and authentic Oporto ﬂavour. And have done so for over 25 successful years. That’s why if you’re looking to buy a franchise, Oporto is an opportunity you won’t want to miss. • Over 140 stores across Australia, New Zealand, USA and China, opening an average of 15 new stores p.a.

• Investment levels to suit a range of budgets, with food court, street front and drive-thru formats.

• More than 15 million customers served every year.

• We oﬀer franchisees the highest level of support in all areas of the business.

• Opportunities available in Sydney, Brisbane, Melbourne, Adelaide and many regional locations.

• Listed in BRW’s Top 50 Fast Growing Franchises issue for the past 8 years.

To invest in this 100% Aussie-owned business, contact our Franchising Team on 1300 727 129 or visit oporto.com.au

OPO13779 Franchise Ad_v5.indd 1

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Become a and join Australiaâ&#x20AC;&#x2122;s Number #1 I.T. Support franchise! Business is all about relationships. Supergeek franchisees care about providing dependable support to their extensive client base, creating a reliable income stream for themselves with our highly developed, easy to operate and fun business model. The company is driven and focused to provide a solid stream of convenient support solutions to home computer users and the SME sector. To ensure sustainable and fast paced business growth, our new franchise owners are supplied with a comprehensive start-up and support package. Including active help in setting up business, on the job training at commencement and practical guidance from their own completely independent and experienced business coach. A Supergeek Franchise offers low start up costs and challenging opportunities for open-minded, dynamic and enthusiastic franchisees to the mobile IT and computer maintenance industry.

A Super Geek franchise offers: Low start up costs Highly developed systems Comprehensive support Ease of operation Challenges and rewards Fun and friendly environment

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FR A N CH I S E S AVA I L A B LE AU S TR A LI A-W I D E

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Ready to fulfil your dream of running your own business? Whichever franchise or license model you sign up to, there are some basic business pointers that can help you towards a profitable future. By Kate Groom

10 STEPS TO A

PROFITABLE BUSINESS F ranchisees, licensees, independent business owners – we all start in business for a range of reasons, two of which are to make a profit and to build wealth. We know they are not the only things that matter, but we also know they are important. The key to a profitable business is to have a structured approach to setting goals, taking action in important areas and regularly reviewing results. Without this, it’s likely you’ll be very busy but might not be making too much money. Before you enter a franchise agreement you’ll need a clear idea of how the business will achieve the results you want – not just in terms of the model but how you will manage the daily challenges. Here are 10 actions you can take which will help you and your business prosper.

HAVE A PLAN

You must know what you’re aiming for, otherwise you’ll never know if you reach it. It’s like playing football without the goalposts – there’s not much point if there’s nothing to aim for.

From a financial point of view, you need to know what sales are required so you can pay your bills, make loan repayments and put something into savings. From an operations perspective, it means looking at each area of the business and identifying actions that will help you meet your goals. There are three basic areas to look at: sales and marketing, operations, and finance and administration. But the critical part of any plan is the action list. This identifies what needs to be done, by whom and when. It’s this which will help you stay on track.

2 NOW THE NUMBERS K

To run a profitable business you must keep track of your financial results. They show the outcomes of your activity and help identify areas that need attention. There are two aspects to this: planning and monitoring. Planning includes preparing a budget and cash flow forecast. Monitoring is reviewing regularly the key numbers that show you how you are going compared to your goal. You should monitor financial and nonfinancial numbers. Examples of financial numbers are sales, cost of goods sold

Some people struggle with cash flow because the business isn’t profitable enough. The best way to address this is to set your goals, use a cash flow forecast, and focus on making consistent profitable sales WWW.FRANCHISE.NET.AU

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and net profit. Non-financial numbers are things like number of customers, average transaction value and unique visitors to your website. Find the ones that are relevant for your business. Once you start monitoring these numbers, you will need to compare your actual results with your goals and take action if you are off track.

Manage your costs

Cost control is important in every business but managing expenses is not simply about cutting costs. The best business people know it’s more about getting good value from what you spend. You may have heard of the 80/20 rule. When applied to expenses it means that 80 per cent of what you spend gets spent on 20 per cent of the items. So that’s the first place to look. What are the key areas

You should monitor financial and non-financial numbers. Examples of financial numbers are sales, cost of goods sold, and net profit. Non-financial numbers are things like number of customers, average transaction value and unique visitors to your website

equipment. Marketing expenditure is another. In addition to these, there’s another investment you make on a daily basis which is harder to spot. It’s your own time. What you spend your time on is one of the most important areas to consider if you want better results. The question then becomes “How can we use these investments more effectively to make more sales, produce more with the same resources and generate more profits?”

5 Invigorate your marketing To generate income and produce profits you must continue with your marketing efforts and activities. This can never stop. To achieve your profit goal you must take action to attract and retain profitable customers. The starting point is to make sure people know about your business. You must also answer the question: Why should they buy from you? Regularly invigorate your marketing with new campaigns and new products and services. Be sure to use a variety of marketing activities, including social media. But never forget, people like to connect with people… talk to them. Also, remember, your marketing spending must produce results. Look for improvements in terms of number of prospects, customers and sales. Regularly compare results with your goals and make adjustments where needed.

6 Talk to your customers

where you are spending money? How can you save in these areas? What can you do smarter or better? It might be worthwhile to ask your team for ideas; because they are working in the business every day and they may see things that you have missed.

Maximise your return on investment

To maximise your return on investment is a shrewd maxim of business. But what is your investment? Anything you spend time or money on. The big numbers are easy to find; they tend to include staff wages, your physical location and www.franchise.net.au

If it wasn’t for our customers we wouldn’t have a business. We need to attract them, retain them and nurture them. The best way to do that is to talk to them. If you want to make a healthy profit you must achieve strong sales. This starts with having a sales target for each month, and an action plan to achieve it. Marketing will bring prospective customers to your business, but you’ve still got to make a sale. The best way to do this is to talk to your customers and prospects. Find out what your customers want, let them know how you can help them, and most importantly, ask for the sale.

Talk to your team

Think of a successful business you know, and you’ll probably notice it has great staff. They are likely to be positive, enthusiastic and easy to do business with. Effective teamwork is a foundation for a profitable business, so make the most of your people. How do you do this? Well, most people want to be appreciated and jul/aug 2012 FRANCHISING | 103

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valued, and they want to make a contribution. So there are four things you can do: 1. Make their job interesting and help them be more productive 2. Give them clear responsibilities and hold them accountable 3. Let them know what’s expected but also give them the authority and resources to do their job. 4. Give them praise, recognition and the chance to progress. But here’s a new thought, your suppliers are also part of your team and so are staff from your franchisor. Ask suppliers for insights that will help you understand the market, and make the most of the franchise support team. You might be surprised what they tell you.

To achieve your profit goal you must take action to attract and retain profitable customers. The starting point is to make sure people know A D _ F R your S I G N Mbusiness AY_ 1 2 . p d f Pa ge 1 5 / 0 4 / 1 2 , about

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Network like crazy

Networking is one of the best ways to improve your business. It can help you build sales and also find better, more profitable ways to operate. The key to networking is this, it’s not who you are talking to that is your likely prospect, but it’s who they know. So relax, and just get to know them. Learn something about their business and let them understand what you do. Your network also opens up opportunities for joint promotions and local events. Make the most of the opportunity, and get involved. Your fellow franchisees have knowledge that can help you improve your business. Get to know what they do well, and see what you can apply in your business.

9 Manage your cash flow People often say cash flow is the lifeblood of business; and it’s true. Your business needs cash to support growth, for example, to fund extra stock, debtors or additional expenses. On the other hand, if cash is tight you 3 : 0 4 PM may be forced to cut back on expenditure that’s needed to support sales, such as marketing or staff wages.

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Forward planning is essential, and for this you need a cash flow forecast. This will help you see the pattern of cash flow throughout the year, and you can then manage it accordingly. When it comes to improving cash flow, good stock and debtor management are important. It is imperative to do these things well. But some people struggle with cash flow because the business isn’t profitable enough. The best way to address this is to set your goals, use a cash flow forecast, and focus on making consistent profitable sales.

10 Monitor your results

Things don’t always go to plan in business, especially when we do something new. Don’t be surprised if this happens to you. Use your review process to get back on track. This is why it’s important to have a plan and know your numbers. You can’t check progress unless you know where you’re heading. Each month, review your results. Did you achieve your goals? If so, great. See what you can do to improve on that. If you didn’t, what happened? Was the goal achievable, did you do the actions you said you would and they didn’t

work, or did you not do the actions? Look back at the past to learn from it, but don’t get caught up. Identify corrective actions, monitor results, adjust and change as required. Remember, the best way to improve your profit is with a plan and a structured process to review the

Your fellow franchisees have knowledge that can help you improve your business. Get to know what they do well, and see what you can apply in your business results you’re getting. You’re in the driving seat for your business, so plan, take action, monitor results and adjust your strategy and actions to achieve the goals you have set. F

Kate Groom is a founder of Smart Franchise which provides expertise in financial communication using workshops, seminars and keynote speeches to help improve business performance: www.smartfranchise.com.au

www.franchise.net.au

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Master franchisees|Issues

SO YOU WANT TO BE A

MASTER FRANCHISEE? The role of a master franchisee requires ambition and business skills, it requires someone who can help drive others to build their business, writes Sarah Stowe

o what does the role entail? Let’s look at the franchise set-up: headed by a franchisor, any franchise system depends on its network of franchisees to grow the brand and the business. In turn the franchisee depends upon the franchisor and its support team to provide a model of business, training, marketing support and business knowledge. Many franchise systems have business development managers who provide support for franchisees within their areas; some franchise networks have a

master franchisee sitting between the franchisees and the franchisor, whose role is to oversee the development of a region for the franchise brand. But not all franchise systems employ this method of developing new territories. And some have tried it and learned that it isn’t effective for them, buying back their master territories over time.

What’s the role?

Let’s be honest, the role of master franchisee really doesn’t suit everyone. It’s a bit like being

Creating a team of franchisees working to the same level of excellence really attracts me www.FRANCHISe.Net.AU

piggy-in-the-middle. You’re not a member of management with an action plan to build up the territory, yet you have growth targets to meet for your region. You’re not on the payroll with the task of monitoring and supporting the franchised businesses. Yet you’ll be responsible for this. As a master franchisee you’ll have to take on the mantle of the franchisor for some roles, such as recruiting other franchisees within your designated territory and you’ll be on hand to help them build their business, help them market the brand, and ensure compliance. You’ll be doing all this while driving your own operation which will typically be the trailblazer for the brand in that area. It’s imperative that master franchisees have the initiative and ambition to drive their business. It’s a role which demands business skills and an ability to JUL/AUG 2012 FRANCHISING | 107

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Matt Chambers

manage people, as Matt Chambers, NSW state franchisor (or master franchisee) for mobile oven cleaning business Ovenu, highlights. “You have to have real people skills, managing motivating, solving problems, as well as recruiting and marketing. There’s a bit of analysis too, the competition, economic and technical impacts on the business.” Richard Thame, CEO of Fastway Couriers Australia, agrees. “Regional [master] franchisees have a heavy responsibility and they need to be well capitalised. They need to spot a franchisee that’s not performing and take remedial action. They need a good business head,” he says.

The benefits

Of course there is the benefit of a royalty percentage – the master franchisees’ earnings include a percentage of the fees from franchisees in their territory. Take the casual dining chain Outback Jack’s, headquartered in Queensland and looking for a NSW master franchisee. The expectation is that 30 stores will be opened across the State. Graeme Diamond, co-founder of the restaurant brand, says “Master franchisees for Outback Jack’s get to retain 75 percent of their royalties.” So while the initial fee for the right to build a territory can be hefty, the master franchisee who develops a strong network of franchisees will be reaping the financial benefits. A good master franchisee can become not only profitable but an influential part of a franchise network, and a core strength as the business develops around the country. Chambers and his interstate counterparts get together for planning and strategy sessions with the franchisor. As with any franchisee/franchisor relationship it’s important to have clarity from the beginning over expectations and goals: without alignment of goals and transparency and trust between the parties it’s hard to make the franchisee role viable. Chambers says the franchisor has to show integrity. “You really need them to bring a determination and will to succeed, and commitment.” He says both parties need to have a passion for the brand. It was a love of the brand and its business potential that were fundamental to him signing up for the master role. But it wasn’t that alone. “Creating a team of franchisees working to the same level of excellence really attracts me,” he adds. F 108| FRANCHISING JUL/AUG 2012

www.franchise.net.au

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For franchise opportunities please call Neil 0409 161516 or email franchise@chickentreat.com.au CT00206887 Franchise Ad FP.indd 1

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Issues|Due diligence

lessons from

court A recent franchisee Court of Appeal victory saw the franchisees concerned walk away from the court case with a $1.22 million award in their favour; so what are the lessons learned? Sarah Stowe reports

The story

The case involves the Billy Baxters franchisor and its former Glenelg franchisees, Ross and Sue Pollard, who terminated their franchise agreement after the business made losses and they were unable to pay the franchise fees. The franchisor took the pair to court, seeking recovery of unpaid royalties and advertising levies under the franchise agreement. At the trial in the Supreme

Court of Victoria the Pollards admitted that $250,000 worth of fees were unpaid. They defended the claim and issued a counterclaim; they were seeking compensation for their losses and suggested that Billy Baxtersâ&#x20AC;&#x2122; South Australian representative, Philip Mauviel, had made misleading and deceptive statements to them prior to them signing up to a lease and franchise agreement. The case hinged on whether

While the intention of the court may be positive in reinforcing the lawâ&#x20AC;&#x2122;s emphasis on avoiding potential franchisees being misled, even if unintentionally, it may nonetheless have the unintended effect of actually undermining access to useful and important information for potential franchisees 110 | FRANCHISING jul/aug 2012

www.franchise.net.au

statements of projected turnover and reasonableness of rent were misleading or deceptive under the Trade Practices Act 1974. These representations during the course of negotiations for a greenfield site at Glenelg included anticipating turnover and drawing comparisons with an existing Billy Baxters outlet at Norwood. The Pollards indicated Mauviel anticipated a turnover for the business of $1.3 million and suggested this would allow the business to pay the rent and return a profit. In May 2009 the Supreme Court upheld Billy Baxtersâ&#x20AC;&#x2122; claim and dismissed the counterclaim of the franchisee and guarantors. The judgement highlighted that Mauviel had in fact provided a spreadsheet template for the Pollards; and that the Pollards (who were themselves experienced franchisees with a previous Boost Juice outlet)

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ignored the advice to enter their own information into the spreadsheet and to seek independent legal, business and accounting advice. While the Court did find that the $1.3 million turnover claim was false, it also found it was a prediction made on reasonable grounds, so there was no liability to Billy Baxters.

franchisor and the landlord. Both courts accepted that the franchisees expressed immediate concerns to Philip Mauviel regarding the proposed rental costs. The Court of Appeal referred to Mauviel’s evidence that he would have told the franchisee that the ideal or maximum benchmark for rental was 15 percent of

It is important for anyone looking at buying into a franchise to put in careful thought and investigation as well as getting proper legal and financial advice As a result the Supreme Court ordered that the franchisee and guarantors pay the outstanding fees, interest and Billy Baxters’ legal costs. The franchisee and guarantors appealed.

The appeal

A critical consideration was the rent of AD_ F RORAJ UL _ 1 2 . p d f the premises, $160,000 per annum, a figure previously agreed between the

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turnover for a rent of that magnitude. However, it found the figure of $1.3 million was given without reasonable grounds, and that the only connection between the rent and the projected turnover was that the outlet would need such a figure as a minimum to make the rent affordable. Pa ge 1 7 / 0 6 / 1 2 , 1 0 : 2 3 The Court of Appeal said this had no logical connection to any representation

www.franchise.net.au

as to what the turnover would actually be and there was no evidence of any analysis that could back up Mauviel’s projection. In a unanimous decision, the Court of Appeal agreed that Philip Mauviel’s comments were not made on reasonable grounds; it overturned the Supreme Court’s decision and ordered the franchisor to pay the franchisee damages of $1.22 million.

How does this judgement affect you?

There are essentially two points to consider. Firstly, it’s imperative that thorough due diligence of a franchise system is undertaken, even in the face of overwhelmingly positive marketing. HWL Ebsworth lawyer Tony Garrison believes franchisees can take comfort from this case but he highlights the need AM for proper research. “It is important for anyone looking at buying into a franchise

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to put in careful thought and investigation as well as getting proper legal and financial advice.” Secondly, as Steve Wright, executive director of the Franchise Council of Australia, points out, franchisors will be more cautious about releasing financial information. “The original court decision acknowledged the franchisor had done the right thing by saying the Norwood store sales were only indicative and encouraged the potential franchisee to do their own research and assessment of the business opportunity in Glenelg. The appeal judgement appears to make it more difficult for franchisors to provide this kind of advice, which is often very keenly sought by potential franchisees. “While the intention of the court may be positive in reinforcing the law’s emphasis on avoiding potential franchisees being misled, even if unintentionally, it may nonetheless have the unintended effect of actually undermining access to useful and important information for potential franchisees. “Unfortunately, the bottom line may be that highly relevant information becomes less available to potential franchisees and leads them into increased research and due diligence costs before they get into business.” Tom Dachs of DMAW Lawyers, the Pollards’ lawyer, directs potential franchisees to the commitments the couple were bound to, despite terminating their agreement. “For this franchisee,

The case:

a quick look Tony Garrison, partner at law firm HWL Ebsworth, highlights the findings: • The fact that the turnover would need to have been at least $1.3 million to make the rent affordable bore no logical connection as to what the actual turnover would be. • There was no qualitative analysis to justify the turnover figure of $1.3 million. • Any reasonable grounds to expect that the business would be profitable would still not translate to a specific turnover figure. • The expected profit and loss figures in the business plan and the franchisees’ belief in these figures do not equate to reasonable grounds for Mauviel’s representations. • Comparing the trading performance of an existing Billy Baxters restaurant at Norwood to the Glenelg restaurant was not reasonable, as the turnover of the Norwood outlet was well below the $1.1 million figure the Pollards were told, and even further below the predicted turnover of $1.3 million for the Glenelg restaurant.

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steps to getting it right

Buying a franchise? Don’t just rely on the franchisor’s claims Buying a franchise is a big decision and you need to do some homework before you sign on the dotted line. Here are some tips from the Australian Competition and Consumer Commission:

Verify promises

Has the franchisor made their franchise sound like it’s the best opportunity in the world? Don’t just take their word for it. Be wary of claims that sound too good to be true, particularly promises that you will earn a certain level of income. Try to substantiate those claims – if you’ll be operating a physical store, spend some time sitting outside that store (or another franchisee’s store) counting how many customers walk in. If the franchisor makes verbal claims, ask them to confirm those claims in writing.

Read the paperwork Under the Franchising Code of Conduct, which applies to all franchisors, a franchisor must give you a copy of the code, a disclosure document and a copy of your franchise agreement in its final form at least 14 days before you sign the agreement or hand over non-refundable money. Take your time and read the disclosure document, which

WWW.FRANCHISE.NET.AU

sets out the payments you’ll be required to make, whether you’ll have an exclusive territory and what will happen at the end of your agreement. Also read your franchise agreement carefully to find out your rights and obligations when dealing with the franchisor.

Seek advice

If you don’t fully understand your franchise agreement, don’t sign it. Take the agreement to a lawyer and get advice. If the franchisor gives you financial information, discuss the figures with an accountant or business adviser.

Talk to other franchisees The disclosure document must include the contact details of current franchisees and some past franchisees. Speak to as many as possible to gain an insight into the system. Ask current franchisees if they are earning as much as they expected. Ask former franchisees why they left the system.

Get some training

Doing a franchising course will help you make an informed decision. There is a free online education program funded by the ACCC and run by Griffith University. To sign up to this program, visit www.franchise.edu. au/pre-entry-franchise-education.

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Advertorial

Retail Food Group (RFG) Australasia’s largest multi food franchisor recently acquired the Pizza Capers Gourmet Kitchen franchise system (Pizza Capers). The Pizza Capers system specializes in the sale of gourmet pizza and related products made using fresh restaurant quality and wholesome ingredients. 77 of the groups 117 outlets are based in South East QLD whilst the remaining stores are in regional QLD, NSW, ACT, VIC, SA, Tasmania and Singapore. Pizza Capers has demonstrated its potential for business opportunities outside of Queensland and represents tremendous potential for budding entrepreneurial pizza lovers to take advantage of the new site opportunities currently available Australia wide. Pizza Capers co-founders Anthony Russo and Scott Geiszler will remain with the business post settlement. Mr Russo said, “we are excited by the opportunities that will be

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created for the system and its franchisees when incorporated within the infrastructure and sophistication that RFG offers and are committed to ensuring the system continues to flourish under RFG’s ownership”. “I am extremely excited by the opportunities this transaction brings to Pizza Capers, particularly to our franchisees, existing and future. The systems, processes and support structures to be brought to the business by RFG will supercharge our growth and operations. We are looking forward to working with RFG and continuing the Pizza Capers success story” Retail Food Group is a leading Australian retail food brand manager, franchisor and wholesale coffee roaster. It is the franchisor and intellectual property owner of the Donut King, Michel’s Patisserie, Brumby’s Bakeries, bb’s café, Esquires Coffee Houses and Pizza Capers franchise systems comprising 1240 outlets as at May 2012.

For more information and new sites available call Faith Manning 1800 067 619 or email faith@rfg.com.au www.pizzacapers.com.au

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the result of the agreement was a binding by the landlord to the full five year term of the lease, and they incurred significant losses throughout the tenure. “Although the franchisee effectively terminated the franchise agreement early, they were unable to extricate themselves from the lease and were unable to recover their losses while trading as an independent café.”

The area which ... is difficult to monitor is over enthusiasm and inadvertent ‘gilding the lily’ Offering some practical advice, Mike Padden of Franchise Systems Group suggests “The prospective franchisee should diligently complete a Prior Representations Statement so that misunderstandings and inadvertent boosting or inflating of the opportunity is avoided.”

How are franchisors responding to the case? Not only is it important to take due notice and analyse the financials, it’s worth considering how your proposed franchisor is handling the disclosure of information. “In the circumstances, franchisors would be well advised to closely monitor and oversee, at all times, the actions of its representatives in dealing with prospective franchisees. Statements about turnover and profitability will always draw close attention if the business subsequently fails,” Dachs says. Tony Garrison, partner at law firm HWL Ebsworth, agrees. “In light of this case, franchisors should review their documents and procedures in relation to site selection, actively encourage and insist that the franchisee seek legal and financial advice, undertake appropriate demographic analysis and feasibility studies for greenfield sites and ensure that they, their staff and master franchisees do not make any statements which may induce persons to buy a franchise on misleading pretences.” Established franchisors in the main are already very careful in providing information in their Disclosure Documentation about their business in general, says Mike Padden. “The area which causes them concern and is difficult to monitor is over enthusiasm and inadvertent ‘gilding the lily’ by themselves, their franchise marketing personnel or business brokers (and even on occasion by their existing franchisees). “They will now be even more careful about what representations are made as to potential income and profitability. Amongst the measures we advise to our franchisor clients is an initial in-depth evaluation of any site or territory by qualified external third parties such as demographers and retail leasing experts prior to committing to an agreement and sign off by the prospective franchise owner. No matter their level of experience in their particular industry they are human and fallible.” Billy Baxters was contacted for this article but was unable to comment for legal reasons. F Turn to p 119 for guidance on franchising and site selection. 116 | FRANCHISING jul/aug 2012

www.franchise.net.au

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Australia’s premier Test and Tag franchise has opportunities for passionate franchisees Australia wide

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A new way to connect with your customers RedCat’s new mobile phone application allows hospitality and franchise outlets to have their own branded iPhone application as well as working as a web application on other mobile devices. It also offers the ultimate in convenient ordering, allowing customers to prepay and pre-order food at their desired time directly from the application. Purchases can be paid for using points, pre-paid gift cards or credit card. Orders will be sent direct to the Point of Sale at the store and will print out automatically, at the correct time, without the need for any interaction by the staff. The application can also be conﬁgured to be used as a self ordering kiosk at store level. Not only will it streamline the ordering process, it will allow you to take advantage of the dramatic increase in popularity of coupons. Research shows that globally, mobile coupon redemptions will exceed $6 billion by 2014*. Hospitality outlets can also use the application to deliver targeted and relevant advertising offers directly to their members which can be redeemed and tracked seamlessly through the RedCat Point of Sale system. * Jupiter Research

Registration

Coupons

Store Locator

Ordering

Barcode Loyalty

Existing members can login, or new members can register their details directly within the app.

Targeted marketing sent directly to your members. Relevant. Immediate. Redeemable at POS.

Customers can search for their nearest site by using integrated GPS, or postcode search.

Save favourites, pay using points, vouchers or credit cards and send orders to the store.

Once registered, members can display their points balance, member status, and a barcode for identiﬁcation.

To ﬁnd out how you can take advantage of RedCat’s Mobile Applications, call 1300

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17/10/11 2:36 PM

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Site selection selection|How to

GET

THE DATA Sales estimates must have some credibility, writes Peter Buckingham

ome franchisors apply little logic to the most important number in a new site evaluation â&#x20AC;&#x201C; the sales revenue forecast. While data based analysis is an inexact science, history has shown that some data-based evalution will always be better than the wet finger in the air estimate, and if challenged, there should be some statistical base from which the sales forecast was derived.

Advantages of a process

By doing a market analysis project, franchisors and franchisees will make statistically-based

decisions. The process will assist in identifying good opportunities, and allow an analysis of promising locations. The final major benefit of a site selection process is that a franchisor will have a record of what has been done, if there is a legal challenge.

What can a franchisee do for due diligence? Whilst the franchisor is not expected to give out their sales

Franchisees should look for franchisors who understand the drivers of their business, have a process in place for site selection and follow that process WWW.FRANCHISE.NET.AU

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How to|Site selection

3. Competition in the area (other similar businesses). 4. Competition from the same brand. 5. Vehicle traffic if a Quick Service Restaurant, convenience store, or petrol station. Once you have identified a couple of similar sites, speak to the franchisee, and find out how they are trading. If they are doing on average

estimates, as a prospective franchisee you can apply a reality check, especially with the franchisor’s cooperation. Most systems will provide access to other franchisees (or you can just go along and try and cold call them anyway). The critical analysis should be to try and look for similar locations, and learn what they are selling.

only a portion of what you are forecasting, tread very carefully. If the franchisor is good enough to give you some indications of what similar sites are doing, verify them where possible, and use that as a starting point to see whether your proposed store is similar, better or worse. Franchisees should look for franchisors who understand the drivers of their business, have a process in place for site selection and follow that process. F

LEVELS OF SALES FORECASTING Peter Buckingham explains the options:

A small franchise chain of up to 15 stores can use a check chart based on perceptions and belief in what differentiates a good location from a poor location. This may include the size of the shopping centre or strip, demographics of the area, and the size of shop, for example. The idea is to try and use these variables in the form of a model to give a consistent result even as simple as a poor, medium or good rating when comparing new opportunities. When we have 15 to 50 stores, with many in similar locations, 1. Similar types of sites – size then a more statistical approach can be used. It’s now possible to (square metres), number of model the sales of stores in the network, and identify which are the seats, access and visibility. most important drivers, and what weighting we should place on 2. Similar demographics – maybe each. We then can build a sales prediction model. look up Quickstats online at stores in a network we can use more A D _ F R S MI MA Y _ 1 2 . p d f P a g e 1 2 8 / 0When 3 / 1 we 2 , have 1 more 0 : 1than 5 50 AM www.abs.gov.au and compare advanced programs to build the best sales prediction tools. postcodes.

What to look for:

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This is your opportunity WR MRLQ $XVWUDOLDĹ&#x203A;V ĆŠUVW QDWLRQDO FXUWDLQ EOLQG FOHDQLQJ FRPSDQ\ SURYLGLQJ HQYLURQPHQWDOO\ IULHQGO\ FOHDQLQJ RI DOO W\SHV RI FXUWDLQV EOLQGV Be your own boss & achieve the lifestyle that you've been dreaming of! Exclusive territories still available. Only one Master Opportunity left.

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How to|Marketing

blueprint for a

brand One of the key reasons for

investing in a franchise can be the power of the brand. So does the franchise reflect brand consistency across all aspects of business?

n this edited excerpt from Creating Brand Energy

â&#x20AC;&#x201C; How To Transform Your Business Energy into Market Power, Cath Sutherland explains what the business entrepreneur (in this instance franchisor and franchisee) needs to do to sustain a high energy brand. The message about aligning all aspects of the business speaks not just to the brand image and marketing, but the value of and need for compliance across a franchise network.

To enjoy a powerful brand it is vital that you present one clear, defined and consistent image every time you make contact with your market 122 | FRANCHISING jul/aug 2012

www.franchise.net.au

Brand consistency

Your brand personality sets the look, attitude, tone and style of your brand energy and of everything you do. Your unique brand personality attracts the right customers to connect with your product and business and become friends with you. The personality you portray in the marketplace through all aspects of your marketing, needs to be consistent, and reflected and reinforced by everyone who works for and represents you. Individually, they need to represent and reflect the collective personality of your business. In doing so, your marketing (who you say you are) will be supported and strengthened by the energies and actions of everyone who works for you (who you actually are). When your marketing and actions are

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Marketing|How to

consistent and aligned, your business will enjoy a powerful brand. If your representatives don’t contribute positively to your unique brand personality, they contaminate it. When there is misalignment, when your team doesn’t reflect the look, attitude, tone and style of who you say you are, your brand suffers. Your business may be perceived as inconsistent and suffering from a personality disorder. Because of this inconsistency, customers become wary and mistrustful of your brand. The stronger you can align all aspects of your personality and present a consistent image, attitude, tone and style in the marketplace, the stronger your brand will become. So, be consistent. Don’t reinvent your look with every new promotion in the marketplace. Stick with the key components of your brand – your logo, corporate colours and working fonts. Make sure everything you create in the marketplace is coordinated with everything else. Your key aim is to be consistent so everything you do reinforces everything else you do. Your brand is being built and strengthened with every communication in the marketplace, from staff uniforms, to brochures, to signage, to advertisements. You want everything you do to inspire recall, recognition and a greater understanding of your brand. A word of warning. Your brand needs to faithfully reflect your business and products’ personality. Stay true to you. Don’t try to be something you are not. All the pretending in the world will never work.

Be consistent for a powerful brand It’s also very important that each time you go out to your market you are the embodiment of your brand personality and you turn up with a consistent look, attitude and style. Consistent presentation allows your market to recognise you, get to know you, trust you and, if aligned, become friends with you. If you present an inconsistent image, attitude and style, it will take longer for your market to recognise you, get to know you, trust you and, if aligned, become friends with you. In fact, they may never really get to know you. So get your look right. There is no point spending considerable time and money creating a range of different looks to impress your market, if no one recognises you. To enjoy a powerful brand it is vital that you present one clear, defined and consistent image every time you make contact with your market. This clear, defined and consistent image needs to faithfully reflect your brand personality. Everything you do needs to be consistent, co-ordinated and

BRAND eXAMPle: BOOSt juICe Boost Juice Bars is a prime example of a brand that has a clearly defined, attractive brand personality. Staff are aligned with Boost’s mantra: Love life! Boost’s Juice Bar fit-outs, signage, product, marketing and staff express a consistent fresh, vibrant, individual, spirited, fun tone and style – everything that a healthy, vibrant drink will make you feel. If that’s attractive to you, if you want to buy into how they feel, you will buy what they are offering.

aligned. This way, even the briefest contact with your market is instantly recognisable. Do an audit in your business of everything that contributes to and accessorises your brand: your logo, corporate colours, office fit out, store fit out, signage, uniforms, online presence, marketing collateral, brochures, promotional items, letter and email communications, and check if every component: • Reflects your brand personality • Positively contributes to your brand image • Reflects every other component Review and refine all of your brand accessories to ensure they are coordinated and powerfully contribute to your one clear, defined and consistent

BRAND VAlueS eARN tRuSt Take responsibility You will earn greater trust and respect if you step up and take responsibility for your business, the product you provide, and your customers’ experience. Demonstrate that you are here to serve your customers and that you genuinely care for your customers’ experience and wellbeing. Also demonstrate that you are responsbile for your business and its impact on your customer, community and environment. Be a disciplined leader To foster trust and respect within your business and marketplace your business needs focused and disciplined direction and leadership. Ensure the values of the business are lived day-today and form the core of everything the business does including production, delivery and service.

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How to|Marketing

brand image. The more defined and refined you can make your brand components the more powerful, potent and recognisable your brand will be.

Why is it important? The benefits of having a defined brand image and coordinated brand wardrobe are: • Once a look or brand has been established, every brand component, including each piece of marketing material, can be created using one style guide or template. This will save you time and money on design costs. • Every brand component lays the foundation for every other

brand component. This fuels and reinforces your brand with more power and impact to successfully promote and sell your product. • Your brand becomes instantly recognisable. Customers recognise your brand even when they are only exposed to it for a very short time such as flicking through a newspaper or magazine. This gives you more value and impact for your marketing dollar. • You can also mix and match all your coordinates (marketing material), knowing they all work together. • Consistency leads to knowledge, which in turn leads to friendship and trust. F

If your representatives don’t contribute positively to your unique brand personality, AD_ F RCL EJ UL _ 1 2 . p d f they contaminate it P a g e 1 1 8 / 0 6 / 1 2 , 1 0 : 2 0

Cath Sutherland has been a creative director for radio stations, worked in events, PR and national marketing management. She now runs Conscious Business and has just published the book Creating Brand Energy. Visit www.consciousbusiness.net.au

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• We supply the customers from the first minute you start. • Earn a guaranteed income with work scheduled year round to suit your situation. • Work flexible hours to suit your life with no weekend work so spend quality time with the family. • Cleaning and Gardening exclusively for Owners Corporations - no private residences. • No previous experience necessary and we provide full training. • Fully supported by energetic, experienced management team. • Offer your customers value add services to increase your earning capacity • We are highly recommended by Sydney’s elite strata managers and have long established relationships. Think about how many blocks of units are in your area or close to where you live?

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www.cleangreenstrata.com.au 124 | FRANCHISING jul/aug 2012

or email franchise@cleangreenstrata.com.au

www.franchise.net.au

AD_FRBAKJUL_12.pdf A D _ F R B A K 2 J U L _ 1 2 . p d f Page P a g e 11 8/06/12, 7 / 0 6 / 1 2 , 3:20 9 : 4 9 PM AM

sourdou

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Please visit us on Stand C14 at Franchising Expo Brisbane on 21/22 July 2012.

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How to|Social media

making

connections

Social media isn’t just about Facebook. As Michael J Roach from Social Media Business Boosters explains there are opportunities for franchisees to strike up a conversation and develop an online profile that will boost the business

witter, Facebook, LinkedIn... they can all help businesses connect with its customers and find expert advice. Where businesses approach social media correctly, there are big wins to have in the space, to connect and communicate with an audience. Businesses continue to utilise social media to convert, build and retain customers, partners, prospects, suppliers, the press and other experts in the sector. The big players in social media continue to shift and evolve at impressive rates, and these services also win by having businesses invest time and content into them. Facebook, Twitter and Linkedin are argulably the primary interest for businesses, however, social media includes Pinterest and Instagram, Youtube and Google+ and recommendation and location engines such as Foursquare, Google Local and Yelp. But, there’s a reason why Facebook, Twitter and Linkedin are the main sites we think of when we all talk about social media, so to begin with, let’s start there. 126 | FRANCHISING jul/aug 2012

Facebook

The world’s social media behemoth is undoubtedly Facebook. With a whopping 950 million users worldwide, and over 10 million accounts registered in Australia, Facebook offers a compelling reason for businesses to set up a presence on its service in order to connect with customers and ‘get found’. Facebook is an excellent first step for businesses looking to launch a web presence. In fact, many successful businesses have their sole web presence on Facebook, however, for deeper content interaction and customer retention, a broader online strategy is advisable (including a website and a Twitter account, for example). Facebook pages were established as a result of Facebook users trying to connect with brands in ways that didn’t work. In a few short years, pages have evolved to include timeline. Timeline brings the focus squarely onto interaction with the customer through liking, commenting and sharing. For brands interacting www.franchise.net.au

on Facebook, the quality of the content shared is the only asset. Due to the volume of active users, businesses will want to examine which customer segments are most active on Facebook, and what type of customer interactions the business can leverage. The first steps a business should take when establishing their page are choosing an effective cover image that speaks to the audience, adding brand information and charting the brand’s history to fit with Facebook’s chronological timeline display. Brands will also want to highlight and pin important events and updates to enhance the page, and consider additional content or competitions on the application tab.

Twitter

Your business may not be aware that Twitter is now widely seen as a space for ideas and commentary. This immediately explains why it’s not for everybody. However, with around 150 million users,

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businesses can achieve excellent value from participating in, and monitoring activity on Twitter. Twitter is widely seen as a new mode of customer communication and real-time connection. Businesses succeed in utilising the service for customer service, product promotion and development, issue advocacy and product promotion and sales. An impressive case study is the use of Twitter by major airlines. The ability to quickly listen and respond to customer feedback moves complaints away from call centres. By offering specific

troubleshooting, conversation and product information in a public space they create brand advocates. Businesses should consider who can provide an authentic and engaging human voice for their brand on Twitter. Creating shareable content, and sharing and retweeting content are the mainstays of Twitter success.

LinkedIn is another network built on connections with a sole focus on professional networking. A trusted connection on LinkedIn is

A NOte ON GettING StARteD •

Most organisations should be advised to develop social media policies – consult your social media advisor on developing guidelines before you get started. • If you have personal accounts that are open to the public (e.g. Twitter), be clear on your profile that you are tweeting in a personal capacity, even if it is all work related. You can do this by adding a line like “views expressed are not those of my employer” or similar. • Once you get going, think carefully about what the business publishes – imagine you upUinL front A D are _ F standing RBSBJ _ 1 2of. apmassive df Proom a g eof people, 1 5 /or0imagine 6 / 1 2it, appearing 3 : 5 4on page PM one of the local newspaper.

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required to be more than a casual aquaintance and for this reason it is extremely good at exploring networks of professionals and employees of major firms. Businesses can enhance ther online presence on Linkedin by understanding the relationships between connections to generate leads. The ability to set up company pages on LinkedIn allows businesses to publish product launches, responses and results. Begin leveraging LinkedIn by asking your employees to join your company page. LinkedIn is a great space for the company to talk about what it is working on to increase visibility.

We already know the online world moves fast. From the thousands of apps, services and websites that are born and die every day, some, like Pinterest, capture the attention of the crowds and see marketers chasing after the latest shiny

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object. Pinterest is a new way to window shop through the visual pinboards, or curated picture collections of users, and groups of users. Like the previous services, Pinterest is what its users and brands make of it. Pinterest is a social network that allows users to visually share, curate and discover new interests by pinning and re-pinning content to a digital pinboard. It helps enhance a businessâ&#x20AC;&#x2122;s brand and image while cementing values and key messages. Oh yes, and it helps drive a lot of traffic. As each image or video is linked back to its source, traffic is generated for the originating website. It is the new big player that saw a huge increase in popularity in December 2011. If your brand is visually driven (for instance, homewares or sunglasses) Pinterest is a great additional and free resource for promoting your content. Brands will still have to ask where they could offer value and relevance to

the audience, however. Be aware of the female skewed audience on Pinterest â&#x20AC;&#x201C; these users are inclined to use Pinterest to express themselves and as a way of connecting with other women with similar interests and passions.

Foursquare, Yelp and Google Local Applications focusing on local elements have exploded in popularity due to the recent saturation of smartphones in the hands of to-

Instagram

Photo sharing to social platforms (as separate to photo and video curation in Pinterest) is a key reason why people love Facebook and other social media. Formerly a small startup, Instagram has been acquired by Facebook, and as a result, businesses can expect enhanced photo sharing features from Facebook in the near future. Businesses considering increasing their photo sharing should consider empowering select employees to contribute to social media efforts through mobile devices, and retain a focus on keeping content relevant to what the audience would like to interact with.

www.franchise.net.au

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Capital required - $250K + Number of outlets - 41 Opportunities available NSW, VIC, TAS, W.A. & S.A.

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How to|Social media

day’s consumers. Businesses are required to monitor and respond to customer reviews online as a way of defending or increasing online reputation. Smartphone users use these services to locate nearby points of interest, shops and services. Users can allow their phone to be used (often via check in) in exchange for perks, such as loyalty discounts and points. Foursquare has been active in the space for some years, however, it has needed to reposition to focus more on

local recommendations and less on check ins. Yelp has been the leader in the US market for some time and recently entered Australia. Businesses should begin by claiming and verifying their own business on foursquare (www.foursquare.com/business), Yelp (www.yelp.com.au), and Google Local (www.google.com.au/local/add), remembering that being there allows them to be found. Businesses should additionally consider offering incen-

PItFAllS tO wAtCH Out FOR Businesses should do extensive research on best practice. Many businesses make these errors when starting on social media: • Rushing into direct selling without building a relationship with their audience • Posting information which is of interest to the business not their target market • Being too formal and not allowing any personality or individuality to shine through • Posting several tweets or status updates at once rather than spreading it over time during the day • Focusing on social media heavily for a few weeks and then leaving an account to stagnate for several weeks at a time _ Fmeasuring R M E T Jthe U Loutcomes _ 1 2 . of p dsocial f P a g ecampaigns 1 6 / 0 6 / 1 2 , 1 1 : 1 5 •A D Not media

tives and discounts to stand out from the crowd on all of the above services.

The reality for business owners Customers crave authentic connections to brands where these relationships can be nurtured offline and online. Integrating social media and customer-centric thinking within a business can take time and effort. It is a long term and continual process. Companies are obliged to learn a new way of communicating thanks to social media. The benefits begin with happier clients. They are involved in giving feedback, making decisions and providing feedback and ideas. Employees can become part of a new collaborative and open environment and suppliers can buyin to word of mouth. Ensuring continued investment into creating a unique presence will ensure savings on traditional media budgets and increased customer reach. F AM

Social Media Business Boosters is a social media marketing franchise

METROPOLITAN SHREDDING SERVICE PTY LTD Metropolitan Shredding Service delivers immediate income and the opportunity to expand at your own pace. What we’ve created has some great benefits for you to consider: • • • •

Long term revenue growth in document destruction and paper recycling A five day working week and some existing clientele A great first time business opportunity with low entry cost and low overheads A head office which provides training and support and is committed to your success

Metropolitan Shredding franchisees have: • • •

The desire to succeed in their own neighbourhood Good sales skills and experience in handling people The desire to earn a substantial income working from home

Get into business, now, for as little as $30,000 plus van.

Contact: Theo St. James Phone: 1300 677 074 or Email: theo@metroshred.com.au Website: www.metroshred.com.au

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Plan your success. Design your lifestyle. A Kwik Kopy franchise lets you experience the best of both worlds, financial success and quality of life. Kwik Kopy offers graphic design, printing and marketing services to the business sector. Be part of a creative process that delivers: • Marketing brochure design and production • Branding and logo development • Direct mail campaigns • Email marketing and website development, to name but a few. Kwik Kopy franchisees handle a broad range of jobs every day, in fact that’s what makes a Kwik Kopy franchise so exciting. But you DON’T require any print or design experience to take on a Kwik Kopy franchise.

With Kwik Kopy you get a tried and tested system that removes the usual start up headaches and helps you establish your business sooner. As part of the Kwik Kopy network, you tap into a highly established and recognised brand, giving you plenty of leverage in the market. What’s more you’ll have an extensive support network all focused on your success.

For more information about our award winning franchise model call 1800 251 680 or visit kwikkopy.com.au/franchise to view Kwik Kopy franchise videos and download a franchise information kit.

Why choose Kwik Kopy: • Brand strength and ongoing marketing solutions • Area sales support • IT support • B2B model • Sales focus • Regular working hours Mon-Fri • Comprehensive training • Award winning franchise model

kwikkopy.com.au FranchisingAPril_1pg_KwikKopy_FA_Headley.indd 1

3/04/12 12:29 PM

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How to|Credit management

STAYING

AFLOAT

Once you set up in business it will be essential to manage your money. So how would you handle credit management? Colin Porter explains the importance of debtor assessment

ne of the many benefits of being a franchisee includes the ability to call on the specialised and highlyskilled knowledge and experience of the franchisor’s head office. This support can greatly reduce a franchisee’s business risks, however it’s important to remain vigilant against bad debtors and ensure your credit management is up to scratch. In recent months, the Australian Securities and Investments Commission (ASIC) has identified a serious increase in the number of companies going into administration or being wound up. According to quarterly figures released by ASIC in May, 1,123 businesses went into administration in February of this year; the highest monthly figure recorded since the Commission began releasing statistics in 1999. A great deal of the literature around credit is focused on helping struggling

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The first Mail Boxes ETC store was opened in Australia in 1993, and since then has continued to steadily grow to 38 centers across Australia and New Zealand and this is just part of a global footprint of 1365 stores across 35 countries. The MBE franchise network is built upon serving the rapidly growing small to medium business market with a range of professional back office business services. Almost 96% of the Australian business industry is built upon small to medium businesses, which is the core of MBEâ&#x20AC;&#x2122;s market. What set MBE Business Service Centreâ&#x20AC;&#x2122;s apart from their competitors is the total service solutions that they provide. From corporate mailbox rentals - to professional digital printing of corporate business cards and letterhead â&#x20AC;&#x201C; or shipping documents and packages across town or to international locations With new centers recently opened in Western Australia and South Australia, MBE now offers a truly national presence to businesses seeking solutions to their Printing, Shipping and Mail requirements. It is with great pleasure that MBE announces its latest center; MBE Point Cook is now open for business and servicing the local business community. The center offers the full suite of products and services MBE is known for around the globe, including Mail Boxes, Shipping and Printing, keep an eye out for the Grand Opening Gala day festivities happening soon. For more information on owning your own MBE Business Service Centre please call Andrew Dalton at MBE Australia on 1800 556 245 or email at andrew.dalton@mbe.com.au. b o t t o m_ a d . p d f Pa ge 1 1 9 / 0 4 / 1 2 , 8 : 4 2 AM The full details on MBEâ&#x20AC;&#x2122;s unique business model and the opportunities are available at www.mbebusinessfranchise.com.au

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Credit management|How to

debtors, but as businesses and creditors it’s easy to forget that giving credit where it isn’t due is an early part of the problem. Because the credit we extend is in the form of goods and services, rather than money, the longer we go unpaid, the more it affects our own cash flow and our own debts. Debtor assessment is probably the most important part of credit management as it tells you whether to extend credit, by how much, as well as what to expect from the debtor. While performing upfront credit checks on new customers

A proactive approach to risk management is the key to keeping your cash flow cycle in check as well as maintaining a good credit A D _ F R U N I MA R _ 1 2 . p d f a ge 1 7 / 0 2 / relationship with your Pcustomers

remains essential, the need to be monitoring all of your customers for adverse financial changes has never been more important. Business owners need to 1 2 , 3 : 4 6 PM be asking themselves, “In the current economic climate, how

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How to|Credit management

well do I know my customers?” Without the right credit management processes, you may even be doing business with a company that is deregistered, or in administration. Businesses often get stung when they find out they have been chasing a debt from a company that no longer exists.

How to assess a customer

Firstly, run a check on the customer to make sure it is a legitimate business still trading. To do this, you need the customer’s Australian Business Number (ABN) or Australian Company Number (ACN) to determine the business name and any trading names it uses. Run those details through a credit reporting agency; this will alert you to any defaults or court actions that may be pending.

Businesses often get stung when they find out they have been chasing a debt from a company that no longer exists

A D _ F R A N Y O G A MA R _ 1 1 . p d f Monitoring your clients’ finances is essential

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Credit testimonials, written statements that vouch for the relationship the debtor has with other creditors, can also be useful if you can ask the right questions of the creditors that best match your business profile. While these are useful, it’s worth noting that the debtor will choose to put its best relationships forward, so testimonials can give a false impression. Once you’ve determined the financial state of the customer, set a credit limit. Just because a business has had a few question marks against its payment 7 / 0 2 / 1 1 , 1 1 : 0 8 AM record in the past doesn’t mean you should avoid it altogether. Start with small amounts of credit

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How to|Credit management

and only extend as much credit as you can afford; remember, you have expenses to pay too. The length of your credit terms should come into play at this point. Every business needs to balance credit terms that are attractive to customers but also serve its cash flow cycle. For instance, on an industry level, it is typical to have longer credit terms in construction because

of the nature of the work. The mistake many construction businesses make, however, is not being strict and enforcing these terms when an invoice is due, so remain vigilant. Identify how long you are willing to wait for debtors to pay their invoices and build in some time in case you need to chase. You may also consider developing penalties for late payments and incentives for early payments.

Protecting your franchise from bad debtors A proactive approach to risk management is the key to keeping your cash flow cycle in check as well as maintaining a good credit relationship with

AD_ F R Dlong C Swill MA Y wait _ 1 for 2 .paid p dinvoices? f Pa ge How you

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4 /

Risk management is about allowing for contingencies that benefit you in the long term, so a good credit policy should allow for financial mishaps and offer solutions that help you avoid expensive, 0 4time / 1 2 , consuming 9 : 1 4 AM consequences

www.franchise.net.au

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Credit management|How to

your customers. Be sure you are familiar with your franchiseâ&#x20AC;&#x2122;s credit policy and refer to it regularly. If you have someone acting as accounts receivable, their role is to monitor changes against the debtorâ&#x20AC;&#x2122;s initial credit assessment and act accordingly if there are signs of trouble. In many cases, timely communication with the debtor is all it takes to keep the payments on track and the relationship in check.

whether they should be still be doing business with them. Risk management is about allowing for contingencies that benefit you in the long term, so a good credit policy should allow for financial mishaps and offer solutions that help you avoid expensive, time consuming consequences like litigation while keeping the customer relationship intact. F

4 KEY POINTS When it comes to assessing a clientâ&#x20AC;&#x2122;s debt level there are four easy steps to take:

1. Run a check on the customer to make sure it is a legitimate business still trading 2. Look at their credit history 3. Gather testimonials from their current creditors 4. Check for warning signs regularly and do a debtor check every month or so

How to stay alert

A credit reporting agency gives members the ability to monitor their entire customer database for important changes including court judgements, commercial defaults and ASIC changes. If something is registered against a customer the member will then receive an email alert, providing the opportunity to contact their client to see what is going on and help decide whether they should be changing their credit policy or

Colin Porter is managing director of CreditorWatch

Without the right credit management processes, you may even be doing business with a company that is deregistered, or in administration

business growth specialists

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How to|Invoice discounting

5 steps to quick

Cash How invoice discounting can help cashflow. Alan Kaye explains

small business must have consistent cash to survive, otherwise the bills begin to pile up when customers are slow to pay. There are many options to consider in trying to overcome or conquer these challenges, and invoice discounting is just one. Invoice discounting can generate working capital to meet day-to-day operating expenses as well as fund growth; it’s an alternative to a bank overdraft. It is widely accepted that more than 80 percent of business failures happen as a result of insufficient cash. The business may give the appearance of growth but if cash is tied up in invoices that have not been paid, then creditors and employees in turn cannot be paid. Doing business with customers who wait 60 to 90 days to

pay an invoice can be devastating. The reality is that most SMEs need consistent cash. It is important for them to pay bills on time to maintain their credit rating. They must also pay salaries and taxes on time. So what to do if there’s no cash to hand? A small business owner can usually manage to meet payments using invoice discounting. How does this work? There’s a five step process: 1. A small business owner delivers goods and services, raising invoices outlining payment amount and terms. 2. Without the knowledge of the customer, the invoice copies are then sent to the invoice discounting company.

The reality is that most SMEs need consistent cash. It is important for them to pay bills on time to maintain their credit rating 142| FRANCHISING JUL/AUG 2012

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3. The invoice discounting company advances up to 80 percent of the value of accepted invoices within 48 hours. 4. The franchisee retains control of the relationship with their customer when it comes to accounting and collections. Customer payments are directed to the invoice discounting company. 5. At the end of every month, after a simple reconciliation process, the invoice discounting company refunds 20 percent of the month’s collections. When an SME is fortunate enough to receive a big order from a customer that requires additional funds for supplies, materials or production costs, there may not be time to wait for the lengthy approval process required by most banks. F Alan Kaye is managing director of Cash Resources Australia, an independent, nonbank financier offering invoice debtor finance to small and medium-sized businesses

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How to|Buying a franchise

If youâ&#x20AC;&#x2122;ve got your sights set on purchasing an existing business with a financial history, there are some essential points to consider to ensure you buy second-hand not second rate. Tim Kilham explains the pros and cons of buying a resale franchise

how to buy a resale

franchise Y

ou can buy a franchise from either a franchisor or an existing franchisee. When you buy a franchise from a franchisor it might be a greenfield franchise (a franchise that has not existed before in that area or place), an existing fran-

chisor-owned business that is being franchised for the first time, or a franchisor-owned business that has previously been franchised but is currently owned by the franchisor. When you buy a franchise from an existing franchisee you are buying a business that has already been operating as a franchise. The questions that need to be asked, and the due diligence that is required, are different when you are buying a

business from an existing franchisee rather than a franchisor. This article provides some advice on issues relating specifically to the purchase

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How to|Buying a franchise

of an existing franchise from an existing franchisee.

Reason for sale

There are many reasons why people sell businesses. They include a change of lifestyle, trading up or trading down, family reasons and so on. When the sale is for one of these legitimate reasons you will be told this. Not uncommonly, businesses are sold because they are performing poorly and not providing the franchisee with a reasonable salary or return on investment. When this is the case, you will probably not be told this. You will be probably be given one of the other reasons. So the first thing you should do when you are buying a franchise from an existing franchisee is to try to establish

the true reason why the business is being sold. That is not to say that you should not buy a business that is performing badly â&#x20AC;&#x201C; if the price is right, and you believe that you can turn the business around, then that may be a good reason for buying it.

Franchise period

When you buy a franchise business from an existing franchisee, the rights and obligations of the existing franchise agreement will be assigned to you. In other words, you take over the existing franchise agreement from the existing franchisee. This means that you acquire the right to operate the franchise business for the remaining period of the franchise agreement. If the franchise agreement was originally for 10 years, and six years have expired, you have the right to operate the business for the remaining term of the franchise â&#x20AC;&#x201C; a further four years. It follows that when you acquire an existing franchise, you need to consider the remaining franchise period and whether it is of sufficient duration for you to achieve your investment objectives. If you do not believe the remaining franchise period is long enough, it is often possible to enter into a new franchise agreement with the franchisor, but this may involve the payment of a franchise fee and other additional costs.

Premises lease

If the franchise you acquire involves leasing of premises,

then you will normally take assignment of the lease, which means you have the right to operate the franchise from the premises for the remaining period of the lease. If this is the case you need to consider two issues. Firstly, you need to satisfy yourself that the remaining lease period is sufficient for you to achieve your investment objectives, in the same way that you need to satisfy yourself that the remaining franchise period is long enough. Secondly, you need to consider the situation where the remaining lease period is different to the remaining franchise period. It does not make sense to have a franchise agreement that runs for a further six years but a lease that runs for just 24 months.

Purchase price

It is not unusual to find that the franchise you are purchasing from an existing franchisee is selling for less than the current selling prices of new franchises. There are usually good reasons for this. One is that you may be buying second-hand plant and equipment that is worth a lot less than new plant and equipment. The second, and more common reason, is that the franchise has not performed to expectations and the price has been adjusted to reflect the lower than expected profits. If you are able to purchase a business that is run down and jaded [or perhaps the owner is run down and jaded], and you are able to turn the business around, then the purchase will often prove to be a bargain.

The first thing you should do when you are buying a franchise from an existing franchisee is to try to establish the true reason why the business is being sold 146| FRANCHISING JUL/AUG 2012

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How to|Buying a franchise

But you need to be confident that you can turn the business around; sometimes performance is poor because the location is inferior and no amount of effort on your part will turn the business around. Always remember that the franchisee who currently owns the business is, usually, running the business to the best of their ability – so ask yourself whether you can run it any better.

Financial information from franchisee You should expect the existing franchisee to supply you with full financial information. The existing franchisee is not required to do this – but equally, you are not required to buy the business without sufficient information. The financial information you get should cover the period right up until the end of the most recent

Always remember that the franchisee who currently owns the business is, usually, running the business to the best of their ability – so ask yourself whether you can run it any better 148| FRANCHISING JUL/AUG 2012

WWW.FRANCHISE.NET.AU

month. It is not enough for the franchisee to give you annual accounts prepared by their accountant that could be 10 or 11 months old. A great deal could have (and probably has) happened between the time you are thinking of purchasing the business and the time the last annual accounts were prepared. You should ask the existing franchisee to provide you with the full annual accounts and tax returns prepared by their accountant. When I am advising potential purchasers of a franchise I often find that they have been given only partial information from the accounts and income tax returns, and that makes me wonder what the selling franchisee has to hide. You should always ask the franchisee selling the business to provide you with financial reports that have been supplied to the franchisor. You should expect information in these financial reports to be consistent with the information contained in the annual accounts and ask questions if it is not.

Information from franchisor

Franchisors will not necessarily get involved when an existing franchisee is selling to a potential new franchisee, though some franchisors do have right of veto – after all, their brand reputation is at stake. Involvement by the franchisor in the financial aspects of a sale involves a potential conflict of interest. It is not in

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Buying a franchise|How to

AD_ F RL I GJ UL _ 1 2 . p d f

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5 / 0 6 / 1 2 ,

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the interests of the franchisor for a new franchisee to pay an excessive amount and as a result experience financial difficulties, but for the franchisor to involve itself in the process would be problematic. Some franchisors will be prepared to provide you with the financial reports supplied to the franchisor by the existing franchisee. This is useful if full information is not forthcoming from the franchisee.

Financial information from other franchisees

I always advise potential purchasers of a franchise business to talk to other franchisees, whether the franchise is being purchased from the franchisor or from an existing franchisee. The existing franchisees usually know the business and the franchise system intimately, and can offer much financial and non-financial information. In many ways, the opinion of current franchisees is the litmus test for your purchase. Disregarding the fringe franchisees [the outliers who are either exceptionally happy or exceptionally unhappy with the franchise, and who do not form part of the standard spread of franchisees] you should listen carefully to what the franchisees have to say – and particularly their answer to the question of

You need to consider the situation where the remaining lease period is different to the remaining franchise period. It does not make sense to have a franchise agreement that runs for a further six years but a lease that runs for just 24 months

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How to|Buying a franchise

whether or not, given all they know now, they would still buy the franchise.

Components of purchase price

When you buy an existing franchise business, the purchase price will usually include three components – stock, plant and equipment [including possibly vehicles] and goodwill. Generally, it is in your interest to maximise the purchase price of the stock, the plant and equipment and to minimise the purchase price of the goodwill. Usually the opposite applies for the seller – the seller prefers to maximise goodwill. There is no legal requirement for the purchase contract to apportion the price between the components, but if the contract does not, the Australian Taxation Office requires that the price to be apportioned between the different components is divided on a fair basis. The allocation between the components may not be the same for the purchaser and the seller – indeed the purchaser and the seller usually will not know the apportionment that each makes.

Co-ordinating the purchase

It is always advisable to use an experienced franchise solicitor to provide advice on the legal aspects of purchasing a franchise. A good solicitor is also very useful in helping you to co-ordinate the process of signing the documents when purchasing a franchise – indeed, the assistance of a solicitor is essential. The purchase of the

Don’t get caught out!

10 WARNING SIGNS 1.

The reasons you are given for the sale are inconsistent or not congruent with the facts. 2. You are advised that the actual sales of the business are greater than those recorded in the financial statements. 3. The financial statement information is not consistent with the information provided to the franchisor. 4. The remaining franchise and lease periods are not sufficient for you to achieve your investment objectives. 5. There is a considerable difference between the remaining lease period and the remaining period of the franchise agreement. 6. The existing franchisee refuses to supply financial statements and other financial reports. 7. The existing franchisee provides only partial information from their financial accounts and reports. 8. You are not provided with accurate financial information right up until the end of the most recent month. 9. There is a dramatic decrease in sales of the business, no matter what explanation is given. 10. Most of, or many of, the franchisees do not express confidence in the franchise system. business may involve the signing of a new franchise agreement, signing a contract of sale, the assignment of a lease or signing of a new lease, the signing of loan documents and a guarantee

You would not want to find yourself in a situation where you had signed a lease agreement and the loan documents to borrow the money, but then encounter a problem with the contract of sale and the purchase falls through 152| FRANCHISING JUL/AUG 2012

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document with a bank, and so on. You would not want to find yourself in a situation where you had signed a lease agreement and the loan documents to borrow the money, but then encounter a problem with the contract of sale and the purchase falls through. The services of an experienced solicitor are essential. F Tim Kilham is a director of Lanyon Partners Chartered Accountants and head of the franchising division. Contact Tim at email: timk@ lanyonpartners.com.au. Web: www. lanyonpartners.com.au

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Advice legit | legalese made easy

Who controls your social media sites?

recently read the following statistics about the use of social media:

Esther Gutnick Senior associate, Mason Sier Turnbull Lawyers

Every 60 seconds: • There are more than 695,000 new status updates, 79,364 wall posts, and 510,040 comments made on Facebook; • More than 320 new Twitter accounts are created and 98,000 tweets are sent; • More than 100 new LinkedIn accounts are created; • Over 600 new videos are uploaded to YouTube; • Tumblr receives more than 20,000 new posts; and • More than 60 new blogs are created and over 1,500 blog posts are made. No matter how you feel about this new medium of communication, you have to agree that’s a lot of activity for a one minute period. The current prevalence of social media has required both franchisees and franchisors to reassess their respective roles and rights relating to the use of such technology. In order to capitalise on the popularity of social media, many franchisors have implemented marketing strategies using such platforms as a Facebook wall or Twitter feed. Similarly, franchisees have started using their personal social media accounts to help advertise and promote their own businesses. Because the brand or public image of a franchise system is often where its inherent values lies, franchisors have always exercised strict control over advertising. Many franchise agreements were

Franchisees should do what they can to put safety measures in place, by developing and implementing appropriate social media policies for employees drafted so franchisees could not undertake their own local marketing without the franchisor’s prior approval and this was easy to enforce when advertising was largely print-based. Now though it is much more difficult to exercise control over the multitude of online activities relating to a business. The recent case of ACCC v Allergy Pathway Pty Ltd (No 2) [2011] FCA 74, taught us that a business may be held liable for false, misleading or deceptive comments posted on the business’s Facebook page by third parties. This case has alarming and potentially far-reaching repercussions for both franchisors and franchisees. www.franchise.net.au

The use of social media also allows franchisees (and all employers) another avenue to access information about their employees and raises issues of privacy and an employer’s ability to supervise their employees’ conduct outside of work. Consider the case where a staff member calls in sick but the employer then finds information posted online indicating the employee was not in fact unwell. Is the employer entitled to use such evidence in order to discipline or even dismiss the employee? This infamously happened in 2007 to an American bank intern named Kevin Colvin, who was fired when his boss found pictures and Facebook comments showing Colvin was at a party after he had emailed his boss advising he had to travel interstate for a family crisis. There are countless other considerations to be addressed, including: • Whether employers can use material posted online to assess or reject a potential job candidate. • Whether employers can discipline or terminate an existing employee for material the employee posted online about the employer or the job, or which is simply distasteful or may cause damage to the brand. • Whether employers can prevent employees from accessing social media sites at work or on their company-owned computers or mobile phones. • How franchisees and employees can be prevented from posting confidential or proprietary information on social media sites; and • How individuals can be prevented from using social media to harass, bully or vilify other staff, other employees, their boss or the franchisor (and vice versa). As social media and social networking continue to transform our methods of marketing, communication and transacting, franchisees should do what they can to put safety measures in place, by developing and implementing appropriate social media policies for employees and monitoring and limiting what is posted online about their businesses. Franchisees should also lead by example, by only using social media responsibly and within the confines of what is permitted under their franchise agreement. Franchisors should ensure franchise agreements, operations manuals and policy documents are updated to deal with the use of social media and other advanced technologies. F JUL/AUG 2012 FRANCHISING | 155

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Opinion THE SKETCH | TRENDS AND DEVELOPMENTS

Do the big brands have all the answers?

A ANDREW TERRY Professor of Business Regulation at the University of Sydney and consultant to DC Strategy

Google search records 30 million more entries for ‘big is beautiful’ than for ‘small is beautiful’. Some balance is restored by the 30 million more entries for ‘size isn’t everything’ than for ‘bigger is better.’ These statistics are, of course, inconclusive, irrelevant and unhelpful in assessing the proposition that big is better than small – but they do at least confirm that relative size is an issue which attracts much interest across a range of subjects. Prospective franchisees are among those with a real interest in whether size matters. The big brand versus small brand issue will invariably, and properly, be a key consideration when assessing a franchising opportunity.

Does size matter?

Big brands and small brands both have their respective advantages and disadvantages. Big brands, for instance, have many attractions for franchisees. A big brand will be an established

ing. It should have the expertise and the experience to deal with the inevitable challenges that any business faces. On the other hand, a big brand will generally have higher entry costs and, given its geographic reach, there is likely to be less flexibility in available outlets or locations. Indeed, entry into an established system may be through an existing franchisee transferring its franchise rather than through a greenfield or start-up operation. The acquisition cost in a resale entry is likely to be much higher than a greenfield entry as the price will include the goodwill which has accrued to the established business – but there will also be a trading history which will provide some comfort as to likely future performance. Despite the obvious attraction of the big brand to the prospective franchisee, the growth of the franchising sector owes much to emerging brands servicing niche markets. It is these small and entrepreneurial

The most important issue for the prospective franchisee is not the big brand versus small brand issue but whether all the elements of the franchise concept, system and package have been proven brand. The system will have a significant track record documented in its Disclosure Document which will facilitate franchisee due diligence in investigating the opportunity. The franchisor’s concept, brand, system, training and support structures will have been repeatedly proven through its network of franchised and company-owned outlets. A big brand can harness the advertising fund levies from its outlets into impressive advertising campaigns and offer real economies of scale to franchisees in purchas156| FRANCHISING JUL/AUG 2012

brands which bring new ideas and new concepts and introduce diversity and innovation.

Small and adaptable? This is not to suggest that big brands do not innovate but substantial change is not easy in mature systems. A new system, a small brand, has the advantage of being able to respond and adapt to new opportunities and changing consumer demands more adroitly.

WWW.FRANCHISE.NET.AU

The small brand offers lower entry costs, wider location choice and even the opportunity to broker a deal that may not be possible with a big brand. And don’t forget that one of the longest lasting and most respected taglines in advertising history – ”we try harder” — was not adopted by the market leader. All our big franchising brands started as small brands. Those franchisees who got in early have grown with the brand and have shared in its success. The unfortunate reality is that there is also a history of small brands which failed to achieve critical mass and which no longer exist. In some cases they have been taken over by the bigger brands which has generally been a good result for the franchisees but there have, unsurprisingly, also been the less fortunate cases. Ultimately the most important issue for the prospective franchisee is not the big brand versus small brand issue but whether all the elements of the franchise concept, system and package have been proven. Big brands sometimes fail. Small brands often thrive. The informed prospective franchisee understands that franchising success is built on the cloning of proven concepts, system, training and management expertise as well as support, rather than on the size of the franchisor. F

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10:21

Opinion PEOPLE | LEADERSHIP

Mastering the attributes for success

GREG NATHAN Psychologist, managing director of the Franchise Relationships Institute, public speaker and author of Profitable Partnerships

ur team of business psychologists at the Franchise Relationships Institute has just completed a major study into franchisee success. We suspect it’s the biggest study ever conducted into the attributes that separate out franchisees who achieve higher levels of financial and personal success. Three attributes in particular were found to impact in positive ways on all areas of the business. These can all been nurtured and developed in yourself and others.

Having a passion for your brand

People high on brand passion show a deep pride in their brand and what it stands for. And they promote the brand at every opportunity – not just to customers, but to their staff, to other business people, and to friends and family. They also understand the values of the brand and try to put these into practice. For instance, if the brand stands for friendliness, they will ensure all their staff are recruited and developed to have a friendly disposition. If the brand stands for prompt service, they will have in place strict disciplines around customer response times.

People with higher levels of optimism remind themselves that most of the things we fret about don’t happen, and for every problem there is a solution if we are prepared to make the effort to look in the right places Brand passion is also the biggest predictor of overall satisfaction, including lifestyle, financial performance and support provided by the franchisor. In fact, franchisees high on brand passion are 35 percent more satisfied.

Having a positive outlook

People with a positive outlook have a clear sense of purpose and hope for the future. They find meaning in their work and look for the positives in every situation. This helps them to keep going in the face of adversity and not let things get them down. Positive outlook is a type of optimism, and optimism can be cultivated in oneself and others. 158| FRANCHISING JUL/AUG 2012

WWW.FRANCHISE.NET.AU

A positive outlook is linked to brand satisfaction

People with higher levels of optimism remind themselves that most of the things we fret about don’t happen, and for every problem there is a solution if we are prepared to make the effort to look in the right places. They also maintain a sense of gratitude for what life gives them, especially the little things. In our research, positive outlook was a big predictor of financial success as well as customer service and satisfaction with the franchise.

Having a supportive network of family and friends

Life is a team event. No-one succeeds alone. The more supportive people you have around you, the more successful you will be. Results from the study showed that franchisees with high levels of family and social support were achieving 13 percent higher sales and profits. They were also more satisfied with all elements of the franchise system. I regularly ask franchisees who they talk to when they need a sounding board. Here’s a list to get you thinking about where to go next time you feel like you need a friend to talk to: Accountant, parent, friend, spouse, staff member, field manager, colleague, doctor, grandparent, dog, fellow franchisee, sibling, centre manager, lawyer, franchisor, coach, uncle, counsellor, supplier, religious minister and in some cases, even customers will be happy to share ideas on how you might solve a business challenge. While conditions may be tough for businesses in some industries, it’s always best to focus on the things you have control over. These attribute are a great start. F

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10:59

Opinion COMMENT | YOUR SAY

Fast, healthy or cheap: which comes first?

A DOMINIC CAIN Operations manager, Ali Baba

li Baba’s operations manager, Dominic Cain has spent the best part of 20 years in the hospitality industry both in Australia and overseas and has seen the fast food and fast casual industry come of age. But, he asks, is the focus on cost taking the sector down the wrong path?

The cost of doing business

As economic pressures have taken their toll on the food retail sector what has been interesting is the headfirst approach by many businesses to aggressive discounting. Two dollar cheeseburgers and $4.95 meals, for instance. This might look great on the surface but franchisees are left wondering “I’m selling a lot of product but I’m not making any money”. One chain starts, followed by another and then other. Franchisees ask franchisors “why aren’t we doing what company X is?”

This isn’t just about going for the low hanging fruit like reducing salt in one product or reducing fat in another. It’s about an overall shift in our menu to provide every customer with a more nutritious product

WWW.FRANCHISE.NET.AU

The simple answer: it’s not good for business. Another more concerning aspect of the aggressive discounting we are now seeing is the move away from healthier products. As an industry we have talked healthier menu options for the last few years. The real problem is that whilst talking about health we promote the exact opposite. It seems that despite the best efforts of a large part of the industry we have taken 10 steps backwards. We say we are offering healthier options yet push $2 cheeseburgers. Are customers going to get used to $5 meals and aggressive discounts and not want to pay full price again? If you are selling healthy food or you’re a smaller player, forget it. You can hardly put a meal together for less than $3.50 in cost let alone sell it for $5.

Food challenge

As an industry we have a responsibility to our customers. With childhood obesity at epidemic proportions along with diabetes and heart conditions we can no longer afford to be complacent. We owe it to our customers and their children to be providing healthy convenient products, not just the cheap stuff. It isn’t about low fat or low kilojoule. It’s about quality, competitively priced and most of all nutritious food. My time with Sumo Salad taught me one thing: providing healthy, tasty options is no easy feat. The main challenge was to make rabbit food taste good. At Ali Baba we are facing the same challenges. How do we make healthy food more appealing? This isn’t just about going for the low hanging fruit like reducing salt in one product or reducing fat in another. It’s about an overall shift in our menu to provide every customer with a more nutritious product. Providing healthy ‘options’ just isn’t good enough, particularly where kids are involved. We are far from there yet but real change doesn’t happen overnight. The real success stories from the current climate will be the businesses that hunker down and find efficiencies, the businesses that look inward and ask “How can we do better?” or “How can we improve the customer experience?” F JUL/AUG 2012 FRANCHISING | 161

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Franchise agreement: the business contract between the franchisor and franchisee.

Franchise fee: this is an up-front cost paid to the franchisor and covers the use of the brand name and operating system required to operate the business. Franchisor: grants permission to the franchisee to conduct business using its intellectual property; brand name, methods of operation and marketing. Franchise term: this is the period granted for trading under the franchise agreement. Most franchise terms are on a renewable three or five year term but they can vary from one year to perpetuity. Greenfield site: a brand new site.

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Local area marketing: [LAM] this is marketing the franchisee is responsible for conducting in the franchise territory or designated marketing area. Marketing and advertising levy: a regular flat or percentage based fee paid into a centralised advertising or marketing fund. Master franchisee: a franchisee who is responsible for a large territory, appointing other franchisees within the territory with direct agreements, and ensuring that the franchisor’s systems and methods are applied. Royalty: fee paid by the franchisee to the franchisor for the ongoing use of the brand and systems, management and technical support. It may be a flat fee or a percentage of sales or profit. The Franchising Code of Conduct: A mandatory Code that governs franchising in Australia and is designed to guide the behaviour of franchisors and provide certain protections to franchisees. It is administered through the Australian Competition and Consumer Commission (ACCC).

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Checklist How to|Ending the agreement

TO DO LIST | HELP GUIDE

Get help Franchise failure Before you go any further, seek advice Like any business, your franchise (or the from an accountant, lawyer and business franchisor) could fail. If the franchisor adviser who specialise in franchising. The fails, this could seriously affect your network of Business Enterprise Centres business. For example: Are you confident the franchisor? 11. What are the franchisee and throughout Australia (www.beca.org.au) • You could loseinyour right to franchisor obligations? can also give you some useful advice. trade under the franchisor’s Havebrand you seen a disclosure We also suggest that you enrol in a name document? 12. What training is available andThe Australian franchise education course. • You may be unable to obtain stock, who pays for it? Competition and Consumer Commission if the franchisor provides this (ACCC) has funded a free, online course • The mayfinancial no longer be able Have youfranchisor evaluated the returns? for prospective franchisees which can to provide training or marketing 13. Who owns the intellectual property and what is licensed to the franchisee? be accessed via www.franchise.edu.au/ support following: pre-entry-franchise-education.html. The • you Customers want to deal with 4. Do know allmay the not expenses five-module course you because of uncertainty franchisees are required to pay? 14. What marketing will is theadministered by Griffith University and • If the franchisor holds the lease on your franchisor implement? gives you a good overview of every aspect of franchising, premises and has sublet to you, you 5. Have you worked out your including termination and end-of-term could costs? lose your right to occupy the operating 15. Who pays for the marketing? arrangements. premises if the franchisor loses its rights The ACCC promotes compliance • you Although theterm franchisor 6. Do know the of the might 16. What is the dispute resolution process? with the Franchising Code and the have failed, you might have to reasonable written notice of the proposed agreement? Competition and Consumer Act by meet continuing obligations to its termination, and the reasons for it. 17. Do you know what it is like to be informing franchisees, franchisors and administrators or thefrom like and to The Code also specifies special 7. Is the business operating a prospective franchisee? franchisees of their rights suppliers and landlords – and circumstances in which the franchisor can fixedother or mobile premises? and obligations under the Code and to your employees. terminate the agreement immediately. 18. Can the franchised theyou Act,assign and enforcing them where These include where the franchisee 8. Are you working within a territory? business? necessary. The ACCC has a number The disclosure document needs to becomes bankrupt, voluntarily abandons If so, is the area exclusive? of free publications designed to assist include a signed director’s statement the franchise or operates the franchise in a 19. How can the franchisor or franchisee prospective franchisees, including a that the franchisor is able to meet its way that endangers public health or safety. terminate the Franchise Agreement? 9. Are you restricted in your product Franchisee Manual and a Franchisee debts. This statement either needs Many franchise agreements don’t purchase? Start-up Checklist. Both are available to be supported by an audit by a provide for the termination of the restrictions are there on the online at www.accc.gov.au/franchising registered auditor or accompanied by 20. What agreement by the franchisee. If this is the and the guarantor required to reach a reports for the franchisee or by calling ACCC operating small business theyou franchisor’s financial case, the franchisee may only be able to 10. Are similar business? level? on 1300 302 021. F last two fiperformance nancial years. If the franchisor a helpline exit the agreement early by transferring minimum gives you its financial reports, look at the agreement to another party. them closely with an accountant and try So remember: before you jump on the Dr Michael Schaper is deputy chairman of to assess the franchisor’s train, make sure you’ve got a good idea the Australian Competition Consumer [with thanks to Masonand Sier Turnbull] financial health. of how to get off. Commission must also give the franchisee a reasonable opportunity to remedy the alleged breach (not more than 30 days). If the breach is remedied in that time, the franchisor is not allowed to terminate the agreement 1. you as a resultBefore of that breach. Some franchise agreements allow the purchase your 2. franchisorfranchise to terminate theyou agreement even in the absence of a breach by the need to tick off franchisee. In these circumstances, before allthethe must-do terminating franchise agreement, 3. the franchisor must give the franchisee items. Check the

20 things to check before you invest

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A-Z listings Online directory Website: ViC: NSW: QlD:

Searching for a particular franchise?

Phone: 1800 816 618 Fax: 07 5456 2874 Contact: Glenn McMahon Email: glenn@amazingclean.com.au Website: www.amazingclean.com.au

Start up costs from: approx $400,000 + GST

This year 7-Eleven will continue to grow, providing great opportunities for motivated, energetic and hardworking Franchisees to join this successful brand. As a 7-Eleven Franchisee you will enjoy the position of market leader in convenience retailing, backed by one of Australia’s most comprehensive support systems which provides a complete turn-key set up and no rental payments*. To learn more visit our website or contact one of our Franchise Development Managers.

Use this showcase of franchise systems to find out some key details about the business opportunities available, all in alphabetical order for easy referencing

www.7elevenfranchise.com.au Peter O’Hara or Michael McNamara - 03 9550 0600 Shayne Howarth - 02 9798 1200 Brett Reading - 07 3291 9400

Profile: 7-Eleven is a global success story with over 46,000 stores world wide.

11:38

ProFilE: Amazing Clean developed the Ultrasonic Blind Cleaning & Repairs industry 15 years ago, and with over 70 franchises in Australia and NZ, is recognised by major blind manufacturers and retailers, as the only professional group that can clean and repair all types of internal & external blinds.In fact we are the only franchise in the World that do what we do. In 2005 we introduced Curtain cleaning, recognising that there was a need for such a professional service, this has doubled the franchisees profits and to maximise profits even further, we added 3 other services, Upholstery, Leather and Mattress Cleaning.

Australian Retailer of the Year 2011 * expenses incorporated in the 7-Eleven charge

Phone: 1300 766 202 Fax: 02 9415 5399 Contact: Helen Souvlis or Ian Skeoch Email: info@anytimefitness.com.au Website: www.anytimefitness.com.au

Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au

Start up costs from: $220,000 to $345,000

Start up costs from: $43,500 + GST

ProFilE: Anytime Fitness is one of Australia’s fastest growing franchise networks, with over 160 local clubs open in 4 years. The efficient Anytime Fitness business model benefits from low monthly fees, low staff numbers and exclusive territories. With Anytime Fitness, you’re in business for yourself, but not by yourself. With over 1800 clubs open worldwide, a proven track record and over 55% of our franchisee owning more than 1 club.

ProFilE: FCA EmErGinG FrAnChiSor oF ThE YEAr 2011 Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? ATS are Australia-wide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its 36 franchisees grow profitable and successful businesses. No prior electrical experience is required - just a passion for safety and a commitment to growing your business. With low entry fees and minimal franchisee administration, an ATS franchise may just be the opportunity for you.

Phone: 07 5509 0023 Fax: 07 5564 8277 Contact: Deb Farnworth-Wood Email: deb@ozskin.com Website: www.ozskin.com

Phone: 1300 769 967 Fax: 1300 883 989 Contact: Luis Nevares Email: info@austvending.com Website: www.austvending.com

Start up costs from: $450,000 - $550,000

Start up costs from: $34,990 + GST

ProFilE: Australian Skin Clinics Express are at the leading edge of the growing cosmeticmedical industry. Franchises offer a selection of effective, highly sought after products and treatments, including laser hair removal, laser rejuvenation, cosmetic injectables, microdermabrasion and retail skincare. Australian Skin Clinics was founded in 1996 and has an established brand and reputation. Franchisees can expect above average returns on investment, thorough ongoing in-house training and development, high cash-flow and minimal day-to-day management requirements. Beauty therapists, cosmetic nurses and doctors and investors looking for higher than average returns on investment are ideal franchisee candidates for this proven franchise model.

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PROFILE Specialising in establishing new vending machine rounds including locations, first fill of stock, delivery, training and product supply. The company operates nationally in Australia and New Zealand. Exclusive importation rights and over 14 years in the market makes them the leaders in the industry. Austvending provides you with a reliable cash flow business with below average workload. Markup on stock from 300% to 700%. Austvending gives you the opportunity to have a business and enjoy your desired lifestyle at the same time!

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A-Z listings

To be part of the A-Z listings, please contact David Strong: email - david.strong@reedbusiness.com.au phone - 02 9422 2905; mobile - 0411 366 656

Phone: 1300 550 155 Fax: 03 8878 2222 Contact: Steven Woodward Email: franchising@autobarn.com.au Website: www.autobarn.com.au

Phone: 07 5532 7518 Fax: 07 5532 7517 Contact: Christian Coenen / Johannes Schoch Email: christian@bakersclub.com.au / johannes@bakersclub.com.au Website: www.bakersclub.com.au

Start up costs from: $700,000 to $800,000

Start up costs from: $250,000 - $350,000 ProFilE: Autobarn is now Australia’s largest franchised specialist auto accessories retail group, with 101 stores spread from Darwin to Hobart. Products range from spare parts and accessories to the latest in in-car entertainment systems, state-of-the-art car security systems, a wide selection of car cleaning and maintenance products, paint and body repair items and an evolving car performance range especially catering for the 4 & 6 cylinder market. Autobarn offers a complete vehicle audio installation service which ensures customers a high level of professional expertise. Many of Autobarn’s most successful franchisees have come from diverse backgrounds such as teaching, the public service & the financial service sector. The one thing they all have in common however, is good people skills.

ProFilE: Baker’s Club is the new generation of bakeries, eliminating the need for night work completely. We have combined a Bakery, Sandwich bar, Pie shop and Café all into one, and therefore we are enjoying the benefit of all of them. We have positioned ourselves into the health food market as well as the timeless baking business with the additional security of our multiple income streams of retail, dine-in and take-away. Using a unique innovative super food concept and more than 160 years of tradition, experience and quality, we give exceptional know-how and support to our franchisees.

Phone: 1300 309 759 Contact: Franchise Recruitment Team Email: franchise.recruitment@bakersdelight.com.au Website: www.bakersdelight.com.au

Phone: 0417 077 633 Contact: Michael Payne Email: michael.payne@dunkinbrands.com Website: www.baskinrobbins.com.au Start up costs from: $190,000

Start up costs from: 30% or $150,000 whichever is highest. ProfilE: Bakers Delight, Australia’s most successful bakery franchise was established in 1980. An Australian owned company, Bakers Delight has over 700 bakeries employing more than 15,000 people, serving 2 million regular customers per week throughout Australia, New Zealand, and Canada. The network is seeking passionate people who are ready to embark on business ownership immediately or to begin training for future opportunities through our structured training program. Bakers Delight has a 13.8 per cent share (Roy Morgan single source data December 2011) of the $2.8 billion Australian bread market.

ProfilE: Baskin-Robbins® is the world’s largest chain of ice cream specialty stores, renowned for high quality, premium ice cream, specialty frozen desserts and beverages with more than 6,700 restaurants around the globe. Baskin-Robbins® is an exciting “Family” brand featuring the most unique, innovative and indulgent products available. Baskin-Robbins® is looking for outstanding, motivated individuals seeking a fun and rewarding business; as we believe that people are the most important ingredient in making an enterprise successful. We have flexible fit-out concepts – to suit Iconic Locations through to existing businesses wanting to create a second income stream with a truly international brand name.

Phone: 03 9439 5594 or 0419 494 480 Fax: 09 9439 5594 Contact: Rod Parker Email: rparker@bedshed.com.au Website: www.bedshed.com.au

Contact: Marshall Hartwich Email: marshall.hartwich@unilever.com Website: www.benandjerry.com.au Start up costs from: $300,000 to $450,000

Start up costs from: $350,000-$600,000 ProFilE: Bedshed is one of Australia’s most successful and profitable bedding retailers. Bedshed will assist the right person in their purchase of the right store where they will use our accredited franchise model; tried, tested and perfected during our 30 year history. Our highly profitable franchise model is accredited with both Westpac and Bankwest, so you can rest easy. We have 39 stores across five states and are currently expanding our franchise network on the east coast of Australia. We are committed to securing the future of our franchisee partners by growing our network of stores and increasing our customer base. As Bedshed continues to expand, we deliver greater marketing clout and buying power for our franchisee partners. Owning a Bedshed franchise enables you to secure your financial future and choose your desired lifestyle.

ProfilE: Ben & Jerry’s scoop shops have been serving peace, love and ice cream around the world since 1978. Our signature chunks and swirls are loved by Ben & Jerry’s fan-atics all over the world. We are now in Australia and looking for partners to join our herd. Our current stores are situated in premium locations and are some of the highest turnover stores globally. If you value: • A true multinational brand • Advertising investment and support • Great margins and a super premium offering • Potential for solid ROI and earnings

• Market leadership • Operational support

We want to talk to you about joining our very limited store rollout in Australia.

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A-Z listings Phone: +61 418 500 721 Contact: Andrew on 1800 634 227 Email: andrew@briantracyanz.com Website: www.briantracyanz.com

Phone: 02 9690 0120 Contact: Zoran Markovic Email: zoranm@book-now.com.au Website: book-now.co

ProfilE: Book-now is a leading cloud-based Operations Support System designed specifically for mobile franchises: • Save many frustrating hours of administration and paperwork by automating repetitive tasks • Improve sales with customer relationship management (CRM) and marketing features • Spot-on business reports with graphical charts to keep track of performance • Easy to use because it works the way you do • Includes state of the art office-side system • Uses tablet computers (Apple/Android) and smart phones in the field • It is the most flexible and cost effective system available No set up charge, only a monthly per user charge.

Start up costs: Investment is $44950 or $89950 PROFILE: As a Licencee, you are welcomed to an exclusive team of business advisors based around the world. You will be well trained in the area of business development, corporate training and coaching. You are then able to grow a substantial and profitable business through purchasing programs from the Brian Tracy International suite on a wholesale basis . The key areas of focus are professional development, sales and leadership development, and these programs are provided on a fee for service or government funded basis. They are delivered primarily in fast-moving interactive workshops or in coaching sessions. Brian Tracy International is recognised as one of the world’s premier training and development companies.

Phone: 02 9451 3260 OR 1300 CAFE2U Fax: 02 9451 2105 Contact: John Stanton Email: jstanton@au.cafe2u.com Website: www.cafe2u.com.au

Phone: 0409 161 516 Contact: Neil Soares Email: franchise@chickentreat.com.au Website: www.chickentreat.com.au Start up costs from: $250,000-$350,000

Start up costs from: $129,600 + GST ProFilE: Australian owned Cafe2U is the world’s largest mobile coffee company, with over 125 franchises in Australia and 190 worldwide. The business is rapidly expanding due to a simple and proven business model based on weekday success. Cafe2U now includes the unique “Acceleration Package”, which fast tracks the new business forward three months. The “Acceleration Package” includes a four week training programme, a personal franchisee coach, revenue guarantee and an ongoing support package. Offering free events co-ordination and strong marketing and digital support, Cafe2U provides a perfect system for all looking to change their lifestyle and be their own boss, without the hassles of staff or rent. Contact Cafe2U now should you wish to make a lifestyle change.

ProfilE: Chicken Treat is a proud Australian owned and operated Company that has built an enviable reputation over more than 30 years. Home to Two flavours of Chicken our network is continually growing and currently has close to 100 stores across Western Australia, Queensland and Tasmania. With the substantial backing of the Quick Service Restaurant Holding (QSRH) Group behind the brand, Chicken Treat enjoys significant buying power in products, marketing systems and advertising reach. If you can see yourself as a passionate business owner, enjoying the enviable reputation of being your local community hero, please contact Neil Soares, our Brand Franchise Manager for an obligation free chat.

Phone: 1300 66 11 82 Fax: 02 9808 5498 Contact: Chris Earthrowl Email: franchise@cleangreenstrata.com.au Website: www.cleangreenstrata.com.au

Phone: 1300 094 764 Contact: Tony Melhem Email: franchise@cococubano.com Website: www.cococubano.com Start up costs from: $295,000 - $550,000

Start up costs from: $10,000 ProFilE: Clean Green Strata is the first specialised strata/body corporate cleaning and garden maintenance service provider. We only service the common areas. • Strata pays well so you can earn above average returns. • Work flexible hours from 8am to 4 with a guarantee no weekend work. • Perfect for husband and wife teams. • No previous experience necessary. • Work outdoors and indoors but don’t be affected by the weather or seasons. • We supply the customers from the first minute you start. Think about how many blocks of units are in your area or close to where you live? Since 1992 we have been building relationships with property managers and now want franchisees.

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ProfilE: Coco Cubano has been inspired by the romance and rustic charm of Cuba as well as the friendly, sophisticated style of the European café bar experience. We have blended these inspirations to bring a unique, multi-location café bar destination to Australia. Coco Cubano offers customers delicious handpicked espresso coffee, tasty tapas, decadent chocolate drinks and delicious meals at all peak trading times from morning to night. With a strong business model and a management team with years of experience in franchising, business and hospitality, Coco Cubano is a strong coffee franchise offering. Limited AAA grade sites available.

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A-Z listings Phone: 02 8220 8700 / 03 8102 9200 Fax: 03 8615 7298 Email: growth@dcstrategy.com Website: www.dcstrategy.com www.dcslawyers.com.au

Phone: 0411 117 475 Contact: Borge Prinsloo Email: licensee@crazyjohns.com.au Website: www.crazyjohns.com.au/ ownyourownstore Start up costs from: $88,000 inc GST ProfilE: Crazy John’s has over 20 years’ experience in the retail and telecommunications industries and is a brand much loved by Australians. Our commitment to value based deals, simple to understand plans and a range of products to suit all needs and budgets has resulted in a trusted, credible and growing brand. Now, with a national mobile network, we’re set to embark upon the next phase of our growth. Crazy John’s has now launched its licensed store program and is offering ambitious and enthusiastic people the chance to own a piece of Crazy John’s ongoing success.

ProFilE: DC Strategy is Australasia’s foremost franchise specialist with a reputation for developing the franchise systems and documentation for many of Australia and the world’s leading franchise networks. DCS Lawyers is a franchising specialist in corporate and commercial law with a proven track record of providing practical, high quality, cost effective legal advice. Our highly experienced team assist franchisors, franchisees & business owners with: • Franchise program, system & network development • International expansion • Online strategy • Performance & profit improvement • Legal advice • Disclosure documents & franchise agreements • Trademarks & intellectual property • Business & franchise sale agreements • Property leasing • Dispute resolution If you are serious about developing a valuable franchise network, or want to buy or sell a franchised business or network - call us now.

Phone: 1300 438 783 Fax: (02) 9907 2647 Contact: Julie Finch-Scally Email: Julie@dusterdollies.com.au Website: www.duterdollies.com.au

Phone: 1800 662 663 Fax: 02 9807 2033 Contact: Evan Foster Email: efoster@ufgcorp.com.au Website: www.embroidme.com.au

Start up costs from: $22,500

Start up costs from: $200,000

ProFilE: The Duster Dollies is a booking agency for domestic cleaning. Started in 1993 it is now a franchised organisation with agencies across Australia. Run from home the business is administrative and organisational. Sub-contractors are used to do the cleaning, and pay an Agency Fee for each hour of work. All the cleaners are trained and the jobs quoted. Our service has helped The Duster Dollies win awards. The Duster Dollies Cleaning Agency is a Monday to Friday business suitable for either a couple or a single operator. Find out more about The Duster Dollies and become part of our family oriented organisation.

ProFilE: EmbroidMe is part of the world’s largest embroidery, screen printing and promotional products with more than 300 locations around the world in 12 countries. With more than 36 locations across the country we are also Australia’s largest embroidery franchise. As part of a $50bn a year industry, we are a B2B franchise that offers Monday to Friday trading, low staff and inventory, great margins and a clean working environment. We’re at the forefront of the corporate uniform and branding revolution, helping companies all across Australia look professional and promote their business. Franchising opportunities available Australia-wide.

Phone: 02 9332 2824 Contact: Holly Boal Email: holly@enviefitness.com.au Website: enviefitness.com.au

Phone: 1800 067 619 Fax: 07 5591 9021 Contact: Faith Manning Email: faith@rfg.com.au Website: www.rfg.com.au

Start up costs from: $100,000 + monthly leases Start up costs from: $200,000 - $400,000 ProfilE: Don’t buy a fitness franchise without exploring this exciting opportunity. EnVie is the innovative new approach to inspirational Women’s Health and Fitness. With sites ready for opening across the eastern seaboard we are seeking enthusiastic and passionate business owners NOW; with a determination to succeed and a passion for health and fitness. Incorporating the best elements from a range of franchise models an EnVie business is completely systemised. An innovative new franchise model means franchisee and franchisor have the mutual goal of your SUCCESS. The business is further supported by extensive training and ongoing coaching from a team of fitness, business, franchise operations, marketing and sales experts with a combined 127 years of experience in the franchise and fitness industries.

ProFilE: Esquires Coffee Houses are highly recognisable. Our stores are situated in the best possible locations and provide Esquires customers with a vibrant, friendly environment. We strive to offer our customers not just great coffee but an experience, with comfortable seating, wireless internet connections, great music and magazines. All our espresso beverages, with the exception of decaf,are made using the finest Fairtrade Organic Coffee beans. With over 50 Esquires Coffee Houses in New Zealand, it is with great excitement that Retail Food Group, supported by a wealth of experience in the food franchising sector, is now introducing Esquires Coffee Houses to Australia.

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A-Z listings Phone: 1300 FASTWAY Fax: 02 9264 4966 Website: www.fastway.com.au

Phone: 1300 767 325 Fax: 02 9750 3074 Contact: Tania Katsanis Email: tania@flowersbyfruit.com Website: www.flowersbyfruit.com

Start up costs from: $25,000

ProFile: Kick start your new career as a Fastway Couriers Franchisee. Want more control over your income and a rewarding career? A Fastway Couriers Franchise can help you take control of your future. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • • • •

Low start up costs Guaranteed income packages* A well known and trusted brand No weekend work

• Unparalleled business support and training • Exclusive territories • A perpetual franchise agreement with no ongoing fees

So, if you’re ready for a positive change we’d love to hear from you.

PROFILE: Flowers by Fruit is the perfect alternative to a bunch of flowers. A multi award winning Australian owned business, Flowers by Fruit creates the freshest edible fresh fruit and chocolate fruit arrangements for any occasion. Passionate about quality and service we make all gifts fresh to order and deliver using our own refrigerated vehicles. We’re committed to “Delivering Happiness” to everyone, every time. There are two franchise models available. As an Edible Gift Guru (EGG) you’d dedicate your time to developing sales in your own exclusive area or own a Creation Centre and be responsible for creating and delivering these delicious products. If either sounds like you, we’d love to have a chat.

*Ccondiitions apply

Phone: 1300 798 501 Fax: 1300 798 502 Website: www.franchiselegal.com.au

Level 5, 530 Collins Street, Melbourne, Victoria 3000, Australia. Phone: 1300 FRANCHISE Fax: 03 8640 0688 Contact: Kevin Bugeja Email: kevin@franchiseselection.com.au Website: www.franchiseselection.com.au

Contact Melbourne: Ilya Furman Email: ilya.furman@franchiselegal.com.au Contact Sydney: Heath Adams Email: heath.adams@franchiselegal.com.au Contact Brisbane: Maurice Hannan Email: maurice.hannan@franchiselegal.com.au

PROFILE: Franchise Legal is a commercial law firm which practices exclusively in franchising. Our lawyers offer extensive legal and commercial experience in the industry, having worked with many leading franchise systems in Australia and internationally. We act for both franchisors and franchisees in all matters affecting their business.

PROFILE: Franchise Selection is the leading franchisee recruitment company in Australia that assists potential franchisees through the interview and selection process. We offer potential franchisees a wide selection of franchises covering all industries including retail, food, automotive, telecommunications, construction and even service franchises. We pride ourselves in being leaders in our industry and our approach is not to sell franchises but to educate and assist buyers in finding the right business opportunity for them and to assist franchisors in selecting the very best franchisees.

Phone: 0246484440 Contact: Wayne McNiece Email: wayne@games2u.com.au Website: www.games2u.com.au

Phone: +61 1300 552 883 Fax: +61 242 846 099 Contact: Vince Monardo Email: sales@globalcoffee.com.au Website: www.globalcoffee.com.au

Start up costs from: $100,000 to $150,000 ProfilE: Games2U is a mobile game theatre and entertainment franchise that brings the Party to you! Comprising of: • Mobile Game Theatre • Laser tag • Hamster Ball Because of parents’ desire to provide entertaining experiences for their children, the industry can be considered somewhat recession resistant. The mobile party is an affordable entertainment not only for children, but for groups and companies as well (the average age of a gamer is 32 years). There are tremendous growth opportunities in an expanding and developing market. If going to parties every day for work is your idea of fun, and then a Games2U franchise is the ideal opportunity. You will complete your training while your Game theatre is being built and be ready to hit the ground running with you first bookings.

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ProFilE: Here at Global Coffee Solutions we live and breathe coffee and as our name states, we have a coffee solution for any situation! Whether you’re after a coffee machine and award winning coffee for your home, office, club, restaurant, cafe or the same machine used by McDonalds, 7 Eleven and Hungry Jacks, capable of producing over 100 cappuccinos an hour we have the solution to suit your needs... Our premium quality equipment is reinforced by our company philosophy of providing service and support to an unprecedented standard, offering 24 hour national coverage for all our equipment.

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A-Z listings Phone: 0407 646 179 Contact: Nicholas Bernhardt Email: info@greenbizcheck.com Website: www.greenbizcheck.com

Phone: (02) 9846 0374 Contact: Jenny Colla Website: www.gloriajeanscoffees.com.au

Start up costs from: $38,500 inclusive

Profile: Gloria Jeans Coffees is an Australian-owned brand that is loved and respected around the world. With over 900 stores in more than 39 countries, we’re the world’s fastest growing franchise, serving millions of customers every week. But there’s more to our brand than these impressive statistics. There’s a culture of collaboration, for starters. There’s the family-style support network. There’s the drive to source and serve the best product around, providing our customers with the ultimate coffee experience. Because at heart, what our franchise partners share is a belief that better coffee makes a better world.

ProfilE: GreenBizCheck provides fast, affordable, world-leading annual green business sustainability programs scrutinized by universities, environmental agencies, governments and major corporations that maximize an organization’s green credentials with a 100% money back guarantee. GreenBizCheck now needs you and your expertise to become Australia and New Zealand’s most recognised environmental standard. You will be supported by a dedicated and passionate management team in building this exciting low cost franchise.

If that interests you, we’d love to hear from you.

Phone: 03 59734044 Contact: Andrew Roberts Email: andrewroberts@greyarmy.com.au Website: www.greyarmy.com.au

Phone: 0429 39 69 39 Contact: Errol McClellamd Email: errol@htiwater.com.au Website: htiwater.com.au

Start up costs from: $32,500

Start up costs from: $200,000+

ProfilE: The Grey Army is one of the most trusted brands in the home service and property maintenance industries. Consisting of Franchisees and individual service providers, the Grey Army services hundreds of domestic and commercial customers every day right across Australia. Our philosophy is to put real customer service back into a field which seems to have forgotten it exists and to share in the Grey Army motto of ‘Old Fashioned Values and Integrity.’ If you are looking to build your own business but would like the experience, training, ongoing support and services of one of Australia’s most trusted brands behind you, the Grey Army could be for you. • Great lifestyle • Large exclusive territories • Trusted brand • Full training and ongoing local support • Low entry cost and low fees

ProfilE: Forward Osmosis Water Filtration - Sensational New Product Unique In The Market! “Personal hydration” market opportunities exist with the military, marine, both commercial and recreational, 4-wheel driving, caravanning, bushwalking, mining, occupational health and safety, disaster relief, and more. The HTI water system has and can be utilized from NASA space trials to the family wagon, as part of an emergency survival kit. Travellers going to remote or third world locations where potable water is unreliable at best! The market potential for “HTI water” products is huge and diverse.

Phone: (03) 8631 7710 Fax: (03) 8631 7799 Contact: Carly Parkinson Email: carly@hudsonscoffee.com.au Website: www.hudsonscoffee.com.au

Phone: 1800 465 786 Fax: 02 9987 0004 Contact: Anthony Davis Email: anthony@inkontherun.com.au Website: www.inkontherun.com.au

Start up costs from: $250,000-$350,000

Start up costs from: $44,000

ProFilE: At Hudsons Coffee, we believe that behind every great coffee is a great person with a real passion for real coffee, just like us! We place great importance on franchise selection, as matching the right franchisee to the right site is imperative. This has resulted in a dynamic, satisfied team of franchisees that share like-minded business goals, and are a great support network for one another. The franchise is expanding in Australia with sites selected in a range of areas including central business districts, hospitals and regional areas.

ProFilE: lnk on the Run is Australia’s premium mobile supply and refill service catering to the growing market of lnks, laser and copier toner cartridges to both homes and businesses. More and more we hear of consumers frustrations with the costs associated to run the printer at work and/or home. lnk on the Run offers not only competitive pricing on branded product but a green and more cost effective alternative of refilling. Opportunities are available throughout Australia with no technical expertise required as full training and standing systems ensure you will have the foundations for a successful business.

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A-Z listings Phone: 07 3878 5677 Fax: 07 3878 5066 Contact: Ben Stoltz, Managing Director Email: ben@janiking.com.au Website: www.janiking.com.au

Phone: 02 8205 1334 Fax: 02 8205 1335 Contact: John Cabral Email: enquiries@jempp.com.au Website: www.jempp.com.au

Start-up costs from $15,000 ex GST

Start up costs from: $99 per month

PROFILE: In a field full of mostly fast food franchises and fast moving consumer goods, Jani-King Commercial Cleaning offers a refreshing and welcome investment opportunity. More than 850 active Jani-King Franchisees are operating across Australia and New Zealand, supported by a network of Regional Offices in most capital cities. The attraction of a Jani-King Franchise is its low entry fee – with opportunities starting from $15,000 ex GST – and global, professional presence. All Jani-King Franchisees receive extensive, ongoing training and are supported by a Regional Manager, Operations Manager and Administration Team that takes care of the paper work for them, so they can get about the business of cleaning-up. It’s what makes Jani-King Commercial Cleaning “the King of Clean!”

ProFilE: JEM Promotional Products can handle all aspects of your Uniforms and Merchandise range from the supply of products to the management of a customised Online Store that your franchise locations can log on to and order your range online. We can even handle the warehousing and distribution of your products. Other benefits of an online store include ensuring your branding remains consistent across all locations, gaining group buying power and economies of scale and most importantly making your range accessible and easy to order online. We can even integrate an online payment system so that payments are collected automatically.

Phone: 1300 227 853 Contact: John Newton Email: franchisesales@partycastles.com Website: www.partycastles.com

Phone: 131 546 Contact: Theunis Terblanche Email: franchise@jimsbuildingmaintenance.com.au Website: www.jimsbuildingmaintenance.net

Start up costs from: $45,000 Start up costs from: $28,000 to $40,000 Depending on the Region and Territory

PROFILE: The Jim’s Group consists of about 32 different divisions with more than 3,200 Franchisees. Joining Jim’s is the best decision you can ever make if you are looking for a Lifestyle business where you prefer to work at your own time and pace. Having the Jim’s logo displayed on your vehicle or trailer is almost like having a Grandpa’s comforting hands behind you as you are enjoying the support of a very well-known Australian owned brand. Franchise opportunities exist in all states.

ProfilE: Jumping J-Jays are offering more than ever to their customers with the introduction of a bunch of new themes. This means that Jumping J-Jays are presenting more opportunities to their franchisees for rentals. Existing Franchises now available from $45,000 including 20 themes. Add to this our turnover Guarantee of at least $100,000 in your first year. At this level you have a breakeven point of 4 deliveries a week. 80% of our current franchisees deliver 8 or more every week.

Phone: 1300 737 978 Fax: 03 9005 2991 Contact: Mr. Brijesh Purohit Email: franchise@keentoclean.com.au Website: www.keentoclean.com.au

Phone: (AUS) 02 8522 1408 Fax: (AUS) 02 9527 5144 Contact: Luke Manning Email: bdm@justcuts.com Website: www.justcuts.com

Start up costs from: $25,700 + GST

Start up costs from: $160,000 to $240,000 ProFilE: Don’t just buy yourself a Job! Discover how you can easily run a “Genuine Business System”. Did You Know? Most of our Just Cuts™ Franchise Owners are not Hairdressers. Plus, the average Franchise Owner goes on to own multiple stores.

ProFilE: Keen to Clean is an innovative, professional and committed market leader in all forms of cleaning, both residential and commercial. We offer a truly unique path for a franchise owner to grow with the system and the opportunity to expand their franchise operations.

Why? Because proven systems, support and training means your hairdressers become the technicians and easily run the business for you. At Just Cuts™ Franchise Owners have been free to grow to own multiple sites. Just Cuts™ do over 65,000 Style Cuts™ a week! Just Cuts™ operate on a no appointment, no request system, quality style cut at an affordable price, quality Style Cut and at an affordable price. Contact us today to find out how. Join the largest Hairdressing Franchise in the Southern Hemisphere.

Keen to Clean has enjoyed strong growth in Melbourne through franchise sales over the past few years, in the coming years Keen to Clean wish to expand the franchise operation throughout Australia. With many franchise offers there is a franchise to suit anyone, whether you are the type of person who could take on a master franchise or simply buy and operate a general franchise we have something to suit you.

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A-Z listings Phone: 02 8372 0918 Contact: Daniel Hochberg Email: danielh@kingofknives.com.au Website: www.kingofknives.com.au

Phone: 1300 KOALAKRANE Contact: Rick Garrity Email: rick@koalakrane.com.au Website: www.koalakranefranchise.com.au

Start up costs from: $250,000 (Approx)

Start up costs from: $40,000 - $110,000

ProfilE: With over 65 stores and 24 years of retail experience, Australia’s premier retailer of knives, kitchenware, outdoor and leisure tools has developed a category leading brand. Training: Our comprehensive training ensures that franchisees are experts in their field. It’s YOUR business: Franchisees choose their own stock, ensuring they are in control of their business. Product and Pricing: Franchisees benefit from our exceptional buying power as well as exclusive high margin house brands. Customer Service: Uniquely, stores have a “demonstration table” which allows customers to trial products before they buy Marketing: 92% brand recognition achieved through in-store promotional material, catalogues, on-line and magazine and newspaper advertising Communication: Franchise meetings, store visits from support office and our much anticipated National Conference ensure you are a part of a team.

ProfilE: Koalakrane franchisees own and operate amusement crane machines in locations such as supermarkets, pubs, clubs and malls. We are the experts at running these machines successfully and profitably and have over 100 owner operators in Australia and New Zealand. Our business is easy and fun to operate. Koalakranes appeal to people of all ages and provide a very lucrative return. Our machines are stocked with licensed prizes – including the biggest and best sporting brands in Australia. We provide full and ongoing support while our franchisees enjoy the synergy that comes with being part of Australasia’s largest amusement crane group.

Phone: 1800 251 680 Fax: 02 9967 5511 Contact: Sarah Emms Email: franchise@kwikkopy.com.au Website: www.kwikkopy.com.au/franchise

Phone: AU - 1800 333 270 NZ - 0800 333 270 Fax: 03 9824 7154 Contact: James Archer Email: jarcher@lma.biz Website: www.lma.biz

Start up costs from: $210,000

Start up costs from: $79,900

ProFilE: A Kwik Kopy franchise is your path to a successful new business. And what’s more, you don’t require any print experience to take on a Centre. Kwik Kopy is a B2B print and design provider, focussing on the small to medium business market. A highly established and recognised brand, Kwik Kopy has been operating in Australia for over 25 years and has an extensive network of Centres in regional and metropolitan locations Australia wide. The benefits of becoming a Kwik Kopy franchisee include: * Award winning franchise model * Regular working hours Mon-Fri * Strong brand and on-going marketing solutions * Extensive training and on-site assistance.

ProFilE: We provide our licensees industry leading resources, systems and processes… proven sales & marketing systems and the ability to provide clients nationally recognized certificates & diplomas under our Registered Training Organisation (AUS) & Private Training Establishment (NZ) status. Our license system offers a high margin B2B opportunity and the benefits of a 5 day per week lifestyle under the umbrella of National and Global support structures. The market for people development is worth over 2.6 Billion dollars and growing. All businesses recognize the need to develop their people and LMA’s unique development process continues to provide exceptional solutions that meet current and future demands. Limited opportunities are available across Australia and New Zealand.

Phone: 1300 664 908 Fax: 1300 667 809 Contact: Michael Walker Email: admin@mia.edu.au Website: www.mia.edu.au

Phone: 1300 565 597 Contact: Holly Beck Email: franchise@lollypotz.com.au Website: www.lollypotz.com.au

ProfilE: Lollypotz franchise owners make and deliver beautiful chocolate bouquets in their large exclusive territory. They even make money if a customer from within their territory orders a bouquet anywhere else in Australia. We have a well developed system, website and National Support Office to support you and all Lollypotz franchise owners receive excellent training, induction and ongoing support. Franchise owners can choose whether to operate from a home office undertaking casual mall leasing at peak period or take the traditional shopfront if they prefer.

Start up costs from: $22,000

ProFilE: The Management Institute of Australia is a Nationally Registered Training Organisation. We have Developed a Training industry opportunity for talented individuals to leverage their skills and to achieve greater returns for their training skills. Become part of a proven business model and gain access to the current scope of over 60 Qualifications! As an industry leader you can build your business NOW! We take care of the compliance issues and tendering so you can get on with running your business and looking after your clients. Become a franchisee and get access to the KNOWLEDGE and EXPERTISE of a PROVEN BUSINESS MODEL and more importantly you can GET STARTED TODAY!

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A-Z listings Phone: 1800 556 245 Fax: 02 8088 0773 Contact: Andrew Dalton Email: andrew.dalton@mbe.com.au Website: www.mbe.com.au

Email: franchising@au.mcd.com Website: www.mcdonalds.com.au/ franchiseopportunities Start up costs from: $800,000+ (in equity required)

Start up costs from: $150,000-$200,000 ProFilE: The concept of MBE Business Service Centres (Mail Boxes Etc.) in Australia started in 1992, with a primary focus to make business easier for small businesses across the country. After much hard work and perseverance, our network has become the largest franchised chain of business service centres, not only in Australia, with nearly 40 locations, but worldwide, with 1355 internationally in 30 countries. In achieving all of this we have helped people pursue their dreams – dreams of becoming master on one’s own life path by starting their own business. We understand having your own business can be overwhelming endeavour if you only have yourself to rely on. As a franchisee in the MBE network, you are never alone in business. Our experienced team of support personnel at our Corporate Offices and in the field can help you make the most of your time and investment. You can feel the comfort in knowing that you’re starting your business for yourself, but never by yourself.

ProfilE: In Australia, McDonald’s has more than 850 restaurants employing over 90,000 people. The success of the McDonald’s franchising model is built on the efforts of our Franchisees delivering great quality food , friendly service and sparkling clean restaurants to over a million customers every day. At the heart of its success, is McDonald’s Franchisee’s willingness to have a high level of involvement in the business and local community; transferable business skills from a corporate career or successful business and a strong commitment to operational excellence. Think you have what it takes? Go to www.mcdonalds.com.au/franchiseopportunities for more information.

Phone: (02) 9542 2000 Fax: (02) 9542 2100 Contact: Drew Arthur Email: sales@micronet.com.au Website: www.micronet.com.au

Phone: 07 3622 2888 Fax: 07 3622 2800 Contact: National Support Office Email: info@mrrental.com.au Website: www.mrrental.com.au Start up costs from: $100,000

PROFILE: Micronet Systems is a leading provider of business software solutions to growing franchise groups. Since the introduction of our first generation product in 1983, over 2000 companies have implemented the Micronet software in a diverse range of industries. Our tailored franchise solution assists franchise groups to grow, manage and improve their business processes while removing the everyday burden to IT. The Micronet franchise solution is specifically configured to suit the unique business processes and industry requirements of today’s franchise operations. Delivering greater business control and improved profitability, the Micronet solution gives franchise groups greater market differentiation and competitive advantage.

PROFILE: Experience the Magic of Recurring Revenue with a Mr Rental home appliance rental franchise. Mr Rental is an international franchise group which has grown to nearly 90 outlets throughout Australia and New Zealand. Mr Rental awarded 2010 FCA Franchisor of the Year Winner is a 5 day a week business that provides a tried and successful business model. Other Mr Rental accolades include National Winner in the FCA MYOB Excellence in Franchising Awards – 2009 Excellence in Marketing, 2008 Emerging Franchise System of the Year and Westpac NZ Franchise Awards - 2009 Media Campaign of the Year, 2008 Retail Franchise System of the Year not to mention ranking 4th in the top 10, 10 THOUSAND FEET National Franchise Survey for Franchisee Satisfaction.

Phone: 1300 677 074 Fax: 02 9588 4015 Contact: Theo St. James Email: theo@metroshred.com.au Website: www.metroshed.com.au

Phone: +613 8540 0200 Fax: +613 8540 0202 Contact: John Sier Email: john.sier@mst.com.au Website: www.mst.com.au

Start up costs from: $30,000

ProFilE: Metropolitan Shredding Services offers franchise owners a unique business opportunity in the fast growing document destruction and paper recycling industry. The business system supports a great lifestyle with a five day working week and a solid immediate cash flow from existing clientele. A great first time business opportunity with low entry cost and low overheads. Only a limited number of territories available in which you can create your own delivery and pick up routes.

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ProFilE: Mason Sier Turnbull is widely recognised as one of Australia’s leading franchising law firms. We advise franchisors, franchisees and suppliers to the franchising sector on all aspects of franchising. We also act for new and emerging franchise systems and a multitude of business entrepreneurs who have invested in franchise businesses. Our relationships with reputable and professional franchise consulting and accounting firms allow us to confidently refer our clients to specialists for advice and services that are traditionally outside what law firms can offer.

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A-Z listings Phone: 1800 NANOTEK (1800 626 683) Contact: Franchise Recruitment Manager Website: www.nanotekcarcleaning.com.au

Phone: 1800 776 747 Fax: 1800 194 525 Contact: Darryl Morris Email: info@mynfib.com.au Website: mynfib.com.au

Start up costs from: $45,000 + Car Lease Profile: Imagine the freedom and lifestyle of having your own mobile business and working from home – being able to clean a car anywhere and offer your clients the highest quality service at their home or office… This is the business reality of a Nanotek franchisee.

ProFilE: NFIB meets the Australian demand for a dedicated online provider of insurance cover for franchisees, franchisors and franchised businesses. Our service is fully automated, compliant and provides you with full documentation. Put simply, NFIB is the fastest, most affordable way to get the most appropriate level of cover you need to protect your business.

Nanotek is the global leader in mobile car cleaning and detailing. Using exclusive polymer nanotechnology the Nanotek process encapsulates, lifts and removes dirt without scratching - it also leaves a protective coating which lasts up to 6 weeks. Because the process doesn’t require water, the Nanotek service can be performed anywhere – home, office, on the street, even on the showroom floor!. So whether you are after the independence and lifestyle of operating your own business, or the passive income that a fleet of nano-mobiles can provide, with Nanotek you can tailor your business to suit your goals.

Phone: 1300 727 129 Fax: 02 8905 0933 Contact: Michelle Castelli Email: michelle.castelli@oporto.com.au Website: www.oporto.com.au

Phone: 07 3387 8787 Fax: 07 3387 8788 Contact: Jason Dalton Email: jason.dalton@nightowl.com.au Website: www.nightowl.com.au

Start up costs from: $450,000-$700,000

Start up costs from: $250,000

ProFilE: Oporto is a 100% Australian-owned fast food franchise that specialises in freshgrilled chicken and burgers. Oporto opened its first store in North Bondi in 1986, stunning the locals’ taste-buds, with its unique flavour profile. It quickly gained a growing army of fans, establishing the first franchised store in 1995.

ProFilE: NightOwl is Australia’s largest stand-alone convenience brand with franchising opportunities available nationwide in a range of demographics and business models. The NightOwl Convenience footprint varies in size including high profile CBD and suburban locations of 50m2 to 200m2, offering impulse and convenience at its best. NightOwl Super stores offer “more choice and more value” in a distinctive large format sized between 200m2 to 500m2 offering a more in-depth shopping experience.

Today Oporto has over 140 stores in Australia, New Zealand, USA and China, serving over 13 million customers per year. Oporto has developed into a strong player within the quick service restaurant market over the past 2 decades and this growth is set to continue. Opening an average of 15 stores a year has ensured Oporto are one of the few companies to have featured in the BRW ‘Fast Franchise’ issue every year since its inception in 2004.

NightOwl is a member of several buying groups with buying power of well over 1.5 billion dollars. This means NightOwl can deliver value to customers and provide guidance on maintaining strong profit margins for franchisees.

Become part of this great Aussie success story - Just Gotta Go Oporto!

Phone: 03 9681 7435 Fax: 03 9681 7484 Contact: Joe Rossi Email: jrossi@orangeleafyogurt.com Website: www.orangeleafyogurt.com.au

Phone: 1300 667 067 Fax: 1300 667 101 Contact: Clinton Capuzzi Email: sales@ordermate.com.au Website: www.ordermate.com.au

Start up costs from: $200,000-$350,000 STYLE GUIDE

ProFilE: Simply put, we are the absolute best in frozen yogurt! We believe that people want to make healthier decisions, but will most likely not make the healthier decision when given the choice between a rich and creamy traditional frozen dessert and an icy, bland frozen yogurt.

OrderMate Style Guide

Version 1.0 May 2011

ProFilE: OrderMate is the complete multisite franchise POS solution. OrderMate was established in 2001 to service the food and beverage POS market. Its success relies upon its uniqueness from the competition which is often generic and off the shelf.

At Orange Leaf, we provide you with decadent flavors reminiscent of your childhood trips to the local dessert shop as well as fruit-based flavors that will suit even the most health conscious individuals.

Easy to use front of house interface, whilst still giving you the powerful backend reporting to drive your business. OrderMate gives you the tools to track and manage the KPIs of your franchisees in real time.

Just like our flavor choices, the toppings bar is a place where you become the master of your dessert. From fresh fruits and nuts to brownie bites and chocolate syrup, the possibilities are endless.

We have a proven track record of delivering a return on investment within 12 months. Our nationwide network enables us to rollout, service and support large scale projects.

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A-Z listings Phone: 07 5532 7071 Fax: 07 5532 5351 Contact: Graeme Diamond Email: franchising@outbackjacks.com.au Website: www.outbackjacks.com.au

Phone: 1300 OVENU 2 (1300 683 682) Email: enquiries@ovenu.com.au Website: www.ovenufranchise.com.au Start up costs from: $39,000 + GST

Start up costs from: $300,000+ ProFilE: Outback Jacks Bar & Grill is an exciting fully licensed, family style restaurant franchise, specialising in casual dining and premium quality steaks. With the largest range of steaks on a menu anywhere in the world our concept provides wide market appeal. With proven systems Outback Jacks has grown to 28 successful stores in prime location throughout Australia. We believe in hands-on, motivated franchisees with a true desire to grow the brand through exceptional business habits and a passion for great food and customer service.

ProfilE: Ovenu the professional oven cleaning and detailing service. Established in 1994, Ovenu is the largest oven cleaning and detailing franchise in the world. Using biodegradable, non-caustic odour free products, developed exclusively for Ovenu, our system will return any oven back to showroom condition. Franchisees receive full training, back up and support. Generous territories are available in prime locations across Australia. • Full training and ongoing support. • Great Cash flow & Low overheads • Additional Income streams as a Certified Enduroshield Applicator. If you are looking for a highly profitable, low entry cost business that delivers great rewards and job satisfaction with the flexibility of being your own boss call us now.

Phone: 07 3279 3311 Fax: 07 3279 6166 Email: franchising@pizzacapers.com Website: www.pizzacapers.com.au

Contact: Brett Jeffrey Email: AU-Pizzahut.Franchising@yum.com Website: www.pizzahut.com.au/franchise Start up costs from: $250,000 - $350,000

Start up costs from: $250,000 - $350,000

ProFilE: The year was 1996 and the convenience food market was overflowing with cheap and nasty ‘junk’ food. There was a real need for change, and it came from the relaxed suburb of Kenmore in Brisbane’s west – the location of the very first Pizza Capers kitchen. Pizza Capers offered the people of Brisbane the chance to enjoy an interesting and varied menu, with pizza made using only fresh restaurant quality and wholesome ingredients. It was a hit!

ProfilE: Pizza Hut is the leading global pizza franchise, with over 12,000 restaurants throughout the world and is part of the quick service restaurant giant, Yum! Restaurants International. Franchising with Pizza Hut gives you the financial control of owning your own business combined with the support of a historically successful global company. With exciting new store opportunities available throughout Melbourne/Regional Victoria, Perth/Western Australia, Regional New South Wales, and South East/Regional Queensland there has never been a better time to join.

Today there are 117+ Pizza Capers stores throughout most states in Australia, with expansion underway for regional Queensland, NSW, SA and other key markets.

Phone: 02 4648 2099 Fax: 02 8569 1899 Contact: Nigel Miller Email: nigelm@plusfitness.com.au Website: www.plusfitness247.com.au

Phone: 1800 624 323 or 0414 633 423 Fax: 02 4739 0307 Contact: Ron Browne Email: ron@pizzainn.com.au Website: www.pizzainn.com.au

Start up costs from: $229,000 inc equipment

Start up costs from: $80,000 ProFilE: Established in 1985, PIZZA INN found a niche in the market for a hand made, traditional Napoletan style pizza that is made fresh to order. Since day 1 at PIZZA INN it has always been a matter of quality, so every PIZZA INN store is operated by dedicated owners, trained by the founders themselves. With a proven system and great support, PIZZA INN prides itself on the passion to consistently deliver the freshest, tastiest range of products in the market today whilst providing excellent returns to a growing number of franchisees. Bring your passion and join us as the journey continues…

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ProFilE: The only true 24Hour Gym Turn Key Franchise on the market, Plus Fitness 24/7 capitalises on strong supplier relationships developed over 15yrs in the Fitness Industry. Plus Fitness provides the most competitively priced 24Hour Gym Franchise with an initial investment from $229k including all gym equipment, aesthetic fitout, signage, access control and marketing. With proven operating systems, unrivalled franchisee training and ongoing support you are assured that your franchise will be success. A franchise model that provides fast breakevens, low staffing and impressive returns, Plus Fitness 24/7 is a ‘lifestyle’ business second to none. With 24 gyms open or scheduled to open by end 2011 and a further 21 territories sold, Plus Fitness has a clear goal of establishing over 75 gyms by end 2012.

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A-Z listings Phone: 1800 245 447 Fax: (07) 3217 8900 Contact: Dean Atkins Email: joinourteam@poolwerx.com Website: www.poolwerx.com

Phone: 1300 767 484 Fax: 03 03 9844 5167 Email: info@positivetraining.com.au Website: www.positivetraining.com.au

Start up costs from: $93,950 plus van

PROFILE: Twice named Australian Franchisor of the Year (‘Services’ and ‘Outright’ categories), PoolWerx has a strong history of innovation both in franchising and its own business sector – the swimming pool and spa aftermarket – in which it is also multi-awarded. PoolWerx is especially well known for its creation of the world’s first structured ‘Career Path in Franchising’ enabling franchisees the opportunity to grow within a single marketing area or develop a million dollar business with multiple vehicles, retail stores and marketing areas.

ProFilE: Positive Training Solutions is Australia’s only Specialist Food Retail Traineeship provider, delivering cost positive ‘Nationally Recognised’ retail training and assessment programs to Food Retail businesses located in Australia. A company, known by the people it keeps, as a formidable force in the training industry and as a company focusing on continual improvement in all areas, internal and external. Currently, the cliental sought by Positive Training Solutions is those within the fast food franchised segment of the retail sector.

Phone: 1800 334 033 Contact: David Ridgeway Email: franchising@questapartments.com.au Website: www.questapartments.com.au

ProfilE: Quest is Australasia’s largest and most successful serviced apartment brand with more than 140 locations in key sites across Australia, New Zealand and Fiji. Our locations are selected on the basis of demand for accommodation, ensuring our franchisees operate in growth environments. Quest’s target market is business travellers with a tailored offering to provide the perfect home away from home environment. This strategy has allowed us to tap into a growing niche market that continues to show excellent returns. When joining Quest, you are investing in your own business with a marketleading brand that has more than 20 years’ experience in the serviced apartment segment.

Phone: 1300 4 REDCAT (1300 4 733228) Email: info@redcat.com.au

ProfilE: RedCat is an Australian company, with an Australian development team, and have a history of leveraging our flexibility and integration capabilities to partner with clients to implement and develop unique solutions. We have been a leader in hospitality point of sale and accounting software since 1992, and can supply integrated software and hardware solutions for Point of Sale and Accounting that can manage sales, staff, stock and payroll through to accounts, GST, customer loyalty, and Web Based multi-Site reporting solutions to provide the complete business management system. In particular, for the needs of franchised groups, we have developed an extremely flexible centralised management capability that permits multiple levels of control and reporting capabilities, from total head office management, through to localised management and web based consolidated reporting tools and a web based, (and mobile phone based), ordering system which is totally integrated into the Point of sale system.

Phone: 0414 448 506 Fax: 08 9200 5672 Contact: Greta Gilroy Email: ggilroy@resicert.com Website: www.resicert.com/life

Phone: 1300 4 RED ROCK (1300 473 376) Fax: 07 3390 2977 Contact: John Jolly Email: admin@redrocknoodlebar.com.au Website: www.redrocknoodlebar.com.au

Start up costs from: $68,500 + GST

Start up costs from: $180,000 ProFilE: Red Rock Noodle Bar is one of the healthiest food franchises around in this growing fast food industry. We deliver this by offering an exciting range of Asian 97% Fat Free tastes that appeal to all. Fresh Ingredients handpicked by our customers and “wokked” up right in front of your eyes. Currently 12 stores all over Brisbane as we expand this healthy option throughout Queensland and Northern NSW.

ProFilE: Resicert is a rapidly expanding property inspection business with Licensed Operators in WA, VIC, ACT, NSW & SA. A truly paperless business that deals with property, it is also a business where you can work from home & spend more time with your family. Benefits for Resicert Licensees are: • Earning potential between $120,000 to $250,000 • Low overheads - phone, car, internet - that’s it!

• • • •

Run your own schedule No stock No staff required Sales & Marketing systems

Property Inspectors are in high demand in NSW, WA, VIC, SA & ACT.

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A-Z listings Phone: 03 9428 1088 Fax: 03 9428 7055 Contact: Tony Maddock – services Adam Kernahan - lawyer Email: info@solutionsfranchising.com.au Website: www.solutionsfranchising.com.au

Phone: 03 9508 4417 Contact: Gavan Meadows Email: gavan.meadows@retailzoo.com.au Website: www.salsas.com.au Start up costs from: $400,000 to $450,000+GST

ProfilE: Joining Salsa’s Fresh Mex Grill makes you part of the largest fresh Mexican food franchise in Australia. With 29 locations in just 4 years, it’s the brand that’s cooking up fast, delicious Mexican food people can’t get enough off. All our salads, guacamole and vegetables are prepared from scratch every morning. Our marinated meats and fresh vegetables are cooked to order on our sizzling Mexican grill. Combine chunks of fresh broccoli and zucchini with the added burst of marinated flavours from our premium meats; it’s not hard to see why Salsa’s served over 3 Million customers last year! With the same proven growth platform, systems and structures that saw Boost Juices’ meteoritic rise to over 185 locations across Australia and now in 16 countries around the world, you can invest in a Salsa’s Fresh Mex Grill franchise with confidence.

ProFilE: Solutions Franchising is providing the industry with the best value professional services available. We will help you with; • Franchisee recruitment • Training programs • System development and maintenance • Strategic planning • Full legal services • Australia’s easiest CRM coming soon We operate all over Australia and have associates in India, Indonesia and Pakistan.

Phone: 1800 662 663 Fax: 02 9807 2033 Contact: Evan Foster Email: efoster@ufgcorp.com.au Website: www.signarama.com.au

Phone: 1800 049 743 Fax: 1800 884 431 Contact: James Scurr Email: jscurr@silverchef.com.au Website: www.silverchef.com.au

Start up costs from: $200,000 ProFilE: SIGNARAMA is the world’s leading sign and graphics franchise, with 850 locations worldwide in over 50 countries. With close to 90 locations nationally, we are the dominant sign franchise in Australia.

ProFilE:

We sell a product that every business needs and uses every day, and our franchisees will continue to see outstanding growth. We have pioneered the ‘bricks and clicks’ strategy in the sign industry, and no sign company can match our E-Commerce and physical presence.

• Purchase the equipment and enjoy a 75% rental rebate • Return equipment if you don’t need it anymore • Keep renting and we will continue to reduce the purchase price • Upgrade if you decide your franchise has outgrown the original equipment

As a B2B franchise, we offer Mon-Fri trading, low staff, low inventory and quality of life. Every product is custom-made so margins are high! No previous experience is required – join SIGNARAMA, your local sign experts.

And if you are part of an accredited franchise, you will enjoy even greater benefits such as reduced rental bonds, rental discounts and pre-approval for all franchisees.

Silver Chef has been helping businesses to fund their equipment needs for over two decades. Silver Chef’s Rent. Try. Buy.® Solution offers a simple 12 month term so that you have the flexibility to:

Silver Chef Limited is a public company listed on the Australian Stock Exchange.

Phone: 07 3331 1400 / 0435 841 811 Contact: Catherine McGill Email: cmcgill@snapfitness.com.au Website: www.snapfitness.com.au

Phone: 07 5478 4014 Fax: 07 5477 7133 Contact: Leigh Wallis Email: leigh.wallis@smith-sons.com Website: www.smith-sons.com.au

Start up costs from: $450k - 550k inc. equipment ProFilE: Smith and Sons are professional renovation builders who provide high quality renovations from concept to completion. 2008 saw the conception of Smith & Sons Renovations & Extensions, with directors Corey Passey, Darren Wallis and Greg Gardner at the helm. The first Smith & Sons office opened in Maroochydore, Queensland in March of that year, and within 36 months, there were 40 offices open across Australia and New Zealand. The Smith & Sons teams quickly became known for their professional, holistic approach to renovating, and with a company culture of excellence, team spirit, hard work and enjoying life, Smith & Sons has raced to the front of the renovation industry, forging successful and long lasting business and client relationships. The next few years look to be a great ride for all involved with the Smith & Sons team.

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ProfilE: In today’s uncertain economy, professionals and small investors from all walks of life are saying “enough!” and partnering with Snap Fitness, the fastest-growing franchisor of compact, state-of-the art, 24/7 fitness centers in the world. Discover the freedom, flexibility and fulfillment that comes with owning the leading alternative to traditional “big box” health clubs; and a value-driven concept that’s right for the times. Easy to own *Affordable Investment *Financing Investments available Easy to manage *complete Turnkey operation

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Easy to market *Ready to go - proven sales and marketing support

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A-Z listings Phone: 1800 762 766 Fax: 02 9837 9199 Contact: Nick Hudson Email: nicholas.hudson@snapon.com Website: www.snaopontools.com.au

Phone: 0427 401 169 Fax: 03 9888 6327 Contact: Alistair Browne Email: alistairb@snooze.com.au Website: www.snooze.com.au

Start up costs from: $37,000 with financing packages available.

Start up costs from: $450,000

ProFilE: Snap-on Tools is the global leader in developing and manufacturing innovative tools and equipment predominantly for the automotive industry. Franchisees operate from a custom built mobile store that takes the in-demand product direct to the customer’s workplace. Extensive training and ongoing support is provided – no previous mechanical experience required.

ProFilE: As one of Australia’s longest-running franchised business and with more than 70 stores operating across the country, Snooze has proven itself a consistent franchise performer. It has been voted amongst the Top 10 Australian Franchise Businesses 2011 by topfranchise.com.au. Snooze provides ongoing support to franchise partners across marketing, product and sales training, visual merchandising and IT.

Operating in Australia for over 21 years, Snap-on Tools is one of the longest running and most successful global franchises, with a proven and profitable business model and was named Best Value Franchise System by Smart Investor Magazine. Today Snap-on Tools is seeking to expand its franchisee base in Australia, offering an exclusive finance package to support the transition of suitable candidates into their own successful business.

By consistently striving for innovation and quality, Snooze remains an industry leader, sharing benefits with franchisees and customers alike. With an aggressive growth strategy firmly in place, further success for Snooze is assured as it continues to attract enthusiastic franchisees and seek strategic store locations.

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Start up costs from: $15,000 - $35,000 ProFilE: Social Media Business Boosters is a world first social media marketing franchise offering low market entry, rapid return on investment, minimal overheads and the ability to grow your franchise from home. This unique franchise originated in Australia and is expanding rapidly in local and overseas markets. There is huge need for professional social media marketing expertise in the current market and Social Media Business Boosters fulfils this need by thoroughly training all franchisees in Social Media Marketing techniques. Take advantage of biggest shift since the industrial revolution the social media industry call today.

Phone: NSW/ACT - 02 9250 5000 VIC/TAS - 03 9287 9555 WA/SA - 08 9430 2877 QLD/NT - 07 3877 7333 email: franchdev@caltex.com.au Website: www.caltex.com.au

Profile: • Caltex Star Mart is Australia’s number 1 convenience retailer with locations in every State and Territory across the country. • The Star Mart convenience network consists of over 630 stores nationally. • Franchisees operate approximately 85% of Caltex’s retail network.

A-Z listings

Our world class business model, merchandising and field support has set the benchmark for convenience retailing, making Caltex the number one convenience retailer throughout Australia. A select amount of Caltex Star Mart opportunities now exist for high calibre franchisees with a passion for retail and a burning desire to be successful. To discover more about Caltex’s exciting franchise opportunity, please visit www.caltex.com.au and click on ‘Franchising at Caltex’.

Phone:1300 1300769 769967 967 Phone: Fax:1300 1300883 883989 989 Fax: Contact:Luis LuisNevares Nevares Contact: Email:info@staycleanhands.com info@staycleanhands.com Email: Website:www.staycleanhands.com www.staycleanhands.com Website:

Phone: 1800 011 827 Phone: 1800 788 335 Contact: Elizabeth Contact: John Newton Email: strategiclifestylesolutions@gmail.com Email: franchisesales@stufflers.com Website: www.stufflers.com Start up costs: $2,000, $10,000, $20,000

Start up costs $9,990 + GST Franchises from:from: $80,000 + GST

Start up costs from: $45,000

ProFilE: Stayclean Hands is a franchise system that specializes in the business to business supply of hand sanitizing solutions through service contracts in clearly defined PROFILE areas. Service contracts provide a guaranteed monthlysolutions income to Licensor for the distribution rights of hand sanitising forfranchisees businesses. and the franchise offers attractive returns on investment every year. The Stayclean Hands system provides business to business distribution opportunities of its battery-operated dispensers offer the latest in environmental design and touch-free touch-free hand sanitiser dispensers through exclusive areas in Australia and technology, measuring the exact amount of solution into the hands of each user. New Zealand. With a modern look and silver finish, they are an essential component to every healthconscious business owner. Franchisees are supported through marketing activities, lead generation, centralised invoicing and all systems and processes; however, it is their responsibility to sign service contracts in their exclusive areas. Franchisees must be extroverted operators who are comfortable delivering presentations and increasing clientele in their territory or be able to hire a dedicated salesperson.

PROFILE: ProfilE: Strategic Lifestyle Solutionshas is abeen member of one of fastestforgrowing global This exciting new franchise franchising in the Australia just over a year. organisations the industry. Building on theinsuccessful growth of shopping centre bear making stores, Stufflers When somemaking peoplestuffed think about prosperity, they may about a large sum of is all about animals at kids’ parties andthink events using the Stufflers money,mobile or maybe a lavish lifestyle. Others may not think about it all because they unique machine system. believe prosperity is something only other people have. With clothes, hearts and special carry carts - Stufflers is the next party By utilizing the resources we provide, it is now possible to completely eliminate phenomenon. The franchise is best suited to a stay at home mum that has 2 days debt, dramatically increase cash-flow, build greater self-awareness and begin living available midweek to work on our unique local marketing programs. the lifestyle you deserve. As part of your $45,000 franchise fee, you will receive 8 mobile Fluffenstuff machines that step are custom Stufflers. Take the next and callbuilt nowby 1800 011 827 Our opening launch price of $45,000 is substantially lower than the $500,000 needed to open a retail store.

Phone: 07 3221 0211 WWW.FRANCHISE.NET.AU Fax: 07 3221 0822 Contact: John Watt Email: john.watt@supanews.com.au Website: www.supanews.com.au Start up costs from: $300,000

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Phone: 02 9898 8666 Fax: 02 9898 3089 Contact: Bonny Email: enquiries@swimart.com.au Website: www.swimartfranchise.com.au

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A-Z listings Phone: Toll Free Australia 1800 630 355 NZ 0800 444 618 fax: 07 3852 4081 Contact: Franchise Administrator email: ssa@subway.com Website: www.subway.com Start up costs: Varies by site Profile: For an unprecedented 17 times in 23 years, the SUBWAY® Restaurant chain has been ranked the No.1 Franchise Opportunity for 2010 by Entrepreneur Magazine in its annual “Franchise 500” rankings*. The SUBWAY Restaurant chain is the world’s largest submarine sandwich franchise**, offering business owners simple operations, ongoing field support and defined marketing structure, along with providing customers with a variety of freshly made menu options. For over 40 years, the SUBWAY® brand has been helping individuals build their own, independently operated business – run by people just like you! From step one, throughout the entire franchise process, the SUBWAY® system provides training and guidance that aids in the operation of each restaurant. *The SUBWAY® franchise was ranked the number-one global franchise among franchises with worldwide operations in the 2010 Franchise 500® issue of Entrepreneur® magazine, based on research and analysis of those franchises having worldwide operations.. ** Numbers are subject to change. Please refer to www.subway.com for latest restaurant and country counts.

Phone: 02 9569 7866 Fax: 02 9569 7811 Contact: Graham Streeter Email: graham@sumosalad.com Website: www.sumosalad.com Start up costs from: $300,000 + GST ProFilE: SumoSalad is Australia’s most commercially successful healthy fast food franchise; serving over 145,000 customers each week. We’re on a mission to recruit likeminded franchisees who want to provide healthy, nutritious food and be part of the solution to Australia’s obesity crisis. SumoSalad started a health food revolution nine years ago when founders Luke Baylis and James Miller came to the conclusion that ‘fast food’ didn’t have to mean ‘snatch and grab, lardy laden food’. SumoSalad’s unique concept of a fast food outlet that sold made-to-order salads that were nutritious, delicious and convenient is as popular now as it was in 2003. If you’re enthusiastic, health conscious and want to make a difference, join us now!

Phone: 13 GEEK (13 4335) Fax: 07 3386 0124 Contact: Mick Davey Email: franchise@supergeek.com.au Website: www.supergeek.com.au Start up costs from: $35,000 ProFilE: Business is all about relationships. SuperGeek franchisees care about providing dependable support to their extensive client base, creating a reliable income stream for themselves with our highly developed, easy to operate and fun business model. The company is driven and focused to provide a solid stream of convenient support solutions to home computer users and the SME sector. To ensure a sustainable and fast paced business growth, our new franchise owners are supplied with a comprehensive start-up and support package. Including active help in setting up business, on the job training at commencement and practical guidance from their own completely independent and experienced business coach. A SuperGeek franchise offers low start up cost and challenging opportunities for open-minded, dynamic and enthusiastic franchisees to the mobile IT and computer maintenance industry. Looking for an exciting and rewarding future? Then call 13GEEK today!

Phone: (03) 8699 2555 Fax: (03 8699 2550 Contact: TeleChoice Reception Email: franchise@telechoice.com.au Website: www.telechoice.com.au Start up costs from: $99,000

PROFILE: There has never been a better time to become your own boss. TeleChoice is a great choice for you if you are looking for a business in a dynamic industry. With over 150 stores nationally and a massive support base, you’ll always feel part of a great team. To start your own business and take control of your life, call TeleChoice today or visit www.telechoice.com.au.

Phone: 07 32577682 Contact: James Email: partners@theburritobar.com.au Website: www.theburritobar.com.au

Phone: 1300 884 399 Contact: Marcus Pluckhahn Email: marcus@thebusinesscommandos.com Website: www.thebusinesscommandos.com

Start up costs from: $380,000 to $450,000

Start up costs from: $15,000 - $60,000

ProfilE: If you put a $16 Billion dollar industry together with a massive demand for fast casual dining and Australians search for amazing new flavors then you have The Burrito Bar. Straight from the streets of Mexico and San Francisco The Burrito Bar brings the excitement color and street flavors to your door.

ProfilE: The Business Commandos arm business owners and entrepreneurs with the tools and training successful entrepreneurs use everyday to build wealth in business.

• High volume business Turn Overs currently in excess of $1 million dollars • Easy to Run system with on line training and in store business support • SEX appeal. The burrito Bar is the latest kid on the Block

Right now the company are looking for amazing people to join their elite team of Business Commandos who will be trained in their Elite Coach system to transform the lives of entrepreneurs throughout Australia and New Zealand.

Ex-Special Forces Soldier and Millionaire Mentor Aaron Parsons who founded The Business Commandos has used their Weapons of MASS Profit to generate over $30 Million in the last 3 years.

We want Partners who are: • Passionate ,Crazy , innovative leaders • Have a passion to succeed.

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A-Z listings Phone: 02 9723 1011 Fax: 02 9727 6771 Contact: Nick Avgerinos Email: franchise@cheesecake.com.au Website: www.cheesecake.com.au

the chocolate room

Start up costs from: $300,000 - $400,000 ProFilE: Take your passion for baking out of the kitchen and into the local community with an Australian icon, The Cheesecake Shop. Trading since 1991 and with operations in 4 countries and almost 200 stores across Australasia, the Cheesecake Shop is one of Australia’s franchising success stories. With a great system to guide you, recognized two times by the Franchise Council of Australia as Australia’s best franchisor, The Cheesecake Shop is perfect for the first time business owner.

Start up costs from: $200,000-$250,000

ProFilE: The Chocolate Room was established in Australia in 2006 - five years on we have over 45 stores world wide - Australia, India, Canada, USA and England. Our menu caters for the chocolate lover and boasts 23 flavours of beautiful Italian hot chocolate drinks, a wide range of chocolates and chocolate gifts, refreshing ice cold frappes, waffles with ice cream and strawberries and many other chocolate inspired dishes - we serve spectacular coffee too. Combine all this with site selection assistance, comprehensive modern fit out, an excellent training regime and unparralleled support, the chocolate room has it all.

Phone: (02) 8667 3104 Fax: (02) 8667 3200 Contact: Steven Clare Email: info@thinkfranchise.com.au Website: www.thinkfranchise.com.au

Phone: 03 9008 5945 Fax: 03 9876 6612 Contact: Richard Email: richard@thefranchiseshop.com.au Website: thefranchiseshop.com.au

ProFilE: The Franchise Shop is the leading franchise consultancy offering both franchise development & recruitment services to the franchising industry throughout Australia and New Zealand. Principals, Grant and Richard Garraway have more than 30 year’s experience between them in developing businesses into franchises, conducting feasibility studies, recruiting franchise owners, territory planning and site finding.

Phone: 03 5229 6716 Fax: 03 5229 6718 Contact: Jim Richardson Email: info@thechocolateroom.com.au Website: www.thechocolateroom.com.au

ProFilE: ‘Think FRANCHISE Specialist Franchise & IP Advisers’ is a law firm that offers its clients more than other firms. Executive Director of ‘think’ Steven Clare is a Lawyer with Master of Laws qualifications (with Honours) and has spent time in the franchise business sector itself as General Counsel and COO for a major Australian franchise operation (APL). Which reported in 2008 a combined franchisee entertainment revenue of up to $130 million AUD. ‘Think FRANCHISE’ acts for both franchisors and franchisees.

At The Franchise Shop our aim is to grow your business. Are you thinking of developing your business? A free initial consultation will provide you with an honest, comprehensive and accurate assessment.

If you are a franchisor or prospective franchisor, ‘think’ can develop your business into a franchise system, providing you with legal and other strategic advice.

Looking to buy a franchise? We offer an advice service and range of documents which are designed to help you make an informed decision.

The firm is a leader in providing cost effective solutions that are relevant to their client’s needs. Visit: www.thinkfranchise.com.au for more information.

Phone: 03 9394 4300 or 0438 214 314 Contact: Neville Bruns Email: newstores@totaltools.com.au Website: www.totaltools.com.au

Phone: 1300 TOP SNAP (1300 867 7627) Contact: Rob Watkin Email: rob.watkin@topsnap.com Website: www.topsnap.com Start up costs from: $39,000 + GST ProfilE: Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you! We are currently looking for positive, enthusiastic, customer-focused individuals to build their own professional photography business, with the support of an established franchise system behind them.

ProfilE: Total Tools specialises in trade and industrial tools carrying an extensive range of the worlds leading brands. Total Tools also has its own private brands including TTI, Mastercraft Value, Detroit, Guardall, Iron Air, Hornet & HRD. The Total Tools brand promise is to have the broadest range of tools available on the market.

As a leading and fast-growing property photography franchise, we have photographers located across the country servicing the real estate industry’s growing demands for property photography and marketing tools.

This, backed by the unrivalled retailing standards in the tool industry and experienced staff offering professional advice and service, has firmly established Total Tools as the market leader in professional tools for the people who use tools for a living.

In recognition of this outstanding growth, Top Snap was recently ranked 17th in the 2011 SmartCompany awards, which recognise and celebrate Australia’s fastestgrowing SMEs.

There are currently 32 stores forming the Total Tools group with representation in Victoria, New South Wales, South Australia & Queensland, with more stores planned nationally.

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A-Z listings Phone: 1800 220 039 Fax: 07 5522 0051 Contact: Peter Darnell Email: sales@touchupguys.com.au Website: http://www.touchupguys.com.au Start up costs from: $85,250 + approved vehicle ProFilE: With over 130 van operations across Australia and New Zealand and over 20 years experience, the Touch Up Guys are the market leader in the mobile automotive paint and bumper repair industry. This Aussie-made mobile automotive franchise carries out repairs to bumpers, plastics, paintwork, vinyl upholstery, alloy wheels and much more. Servicing commercial, corporate and consumer markets, our franchisees are equipped with a state of the art mobile workshop, providing a convenient and cost effective alternative to traditional bodyshops. If you are looking for proven business model with low entry cost and low overheads and would enjoy working outdoors with your hands, then Touch Up Guys may well be the perfect career move for you. No prior experience is necessary as full technical and business skills training are provided.

Phone: 1300 139 913 Fax: 1300 133 338 Contact: Darren Farrell Email: dfarrell@trusonic.com.au Website: www.trusonic.com.au Profile: Trusonic is a full service music provider and audio marketing specialist. Trusonic’s digital music library contains more than 3 million tracks in all styles including Top 40, modern jazz, instrumentals and more. Their proprietary media player (the MBOX) receives music updates daily via the internet. With Trusonic you can: • Generate extra revenue and create branding with custom ads and IDs • Eliminate PPCA fees with their directly licensed music library • Play music and messages through your phone system • Control the music (and ads) at all sites from the one online interface To get Trusonic music working for you, call Darren Farrell on 1300 139 913.

Phone: 03 9413 1594 or 0488 223 022 Fax: 03 9413 1401 Contact: Russell Desa Email: russell.desa@unitedpetroleum.com.au Website: www.unitedpetroleum.com.au/ franchising/welcome Start up costs from: $400,000 upwards ProFilE: Australian-owned company and has become one of the largest independent fuel companies with over 270 convenience retail sites throughout Australia. United continues to invest heavily in its stores and systems which has earned the trust of the people and respect of major competitors. United franchisees enjoy ongoing support, guaranteed minimum income on Fuel Commissions, merchandising support, a national promotional program, five week induction program, on-going training, an exclusive affiliated partnership with the MYER one program. United is a proud member of the Franchise Council of Australia (FCA) and was awarded 2011 Canstar – Most Satisfied Customers (Service Stations).

Phone: 02 9420 9933 or 0402 295 977 Fax: 02 9420 9811 Contact: Samuel Hamrosi Email: sam@vanitybar.net Website: www.vanitybar.net

ProFilE: Vanity Bar offers one of the most unique business opportunities available in Australia. We have worked long and hard to build a business system that offers our franchisees a great return on their investment and a solid cash flow to help them achieve their financial and lifestyle goals. Essentials vending - smart, compact & convenient. • Low Entry Cost. • Unique Concept. • Great lifestyle business. • Exclusive product range. • Great ROI. • Ultra-reliable high tech generation II Vanity Bars now available. Secure your area!

Phone: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au

Phone: 1800 766 170 Fax: 07 3105 5901 Contact: Customer Relations Email: sales@weeklymedia.com.au Website: www.weeklymedia.com.au

Start up costs from: $25,000

Start up costs from: $28,826

ProFilE: V.I.P. was the first company to start franchising in home services in 1979. Today V.I.P. has over 1100 franchisees across Australia and New Zealand. V.I.P. has franchise opportunities available in: • Garden Maintenance and Lawn Mowing • Home Cleaning • Commercial Cleaning V.I.P. offer franchisees comprehensive training, a solid support system, exclusive territories and an established customer base along with the chance to be their own boss and choose the hours they want to work. In 2009 & 2010 V.I.P. was declared the Best Franchise System in Australia under $50,000 by the Financial Review Smart Investor magazine.

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ProFilE: Weekly Media have discovered a new and improved way to feed your appetite using a full range of top selling Australian magazine titles along with International publications, and all it takes is the single push of a button. The new magazine media station is packed with Australia’s most popular lifestyle titles and is attracting a generous dollar through combining convenience with on-the-move retail solutions. The concept is simple, the start-up is supported, the potential is endless and the opportunity is yours. The magazine media stations will be popping up at a corner near you, the question is whether you’ll be the one who’s reaping the rewards.

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A-Z listings Phone: 03 9612 7297 fax: 03 9629 4035 Contact: Robert Toth email: robert.toth@wisemah.com.au Website: www.wisewouldmahony.com.au Profile: Wisewould Mahony is a leading commercial law firm with a 150 year history in Victoria with clients in Australia and worldwide. 25 Years of Industry Knowledge Member Franchise Council of Australia (FCA) International Franchise Lawyers Association (IFLA) Franchise Association of New Zealand (FANZ) Accredited Business Law Employment Specialists Fixed Fee Services to Franchisors & Franchisees based on scope of services Services provided: • Legal and consulting advice to Franchisors & Franchisees • Code compliance requirements • Dispute resolution – mediation – Solutions & Strategies • Sale/Purchase of Franchise Systems • Master Franchising • Employment Law & Workplace Relations Specialist Call or email for a complimentary brochure for Franchisors & Franchisees

Phone: 02 8394 7800 Fax: 02 8394 7801 Contact: Athol Ritchie Email: franchising@worldwide.com.au Website: www.worldwide.com.au Start up costs from: $150,000 ex GST (excludes working capital) ProFilE: Imagine owning a Design and Printing business with a clever mix of the latest technical, marketing and training resources, combined with the strength of more than 15 years experience in the business. Worldwide are known for our innovative approach to business and we are always on the lookout for new and innovative products and services to expand our reach. As a franchise owner you focus on clever ways of creating new sales, providing top quality service to your clients and building a powerful team - leaving the printing and production to the experts. With more than 50 Worldwide Design and Print Centres nationally, we are now undertaking the next phase of our national expansion program. Set yourself apart from the crowd.

Phone: 0414 669 101 Fax: 02 9771 9570 Contact: Stephen Spitz Email: stephen.spitz@xpressodelight.com.au Website: www.xpressodelight.com.au

Phone: 1300 YOGABUGS Contact: Rob Connelly Email: rob@yogabugs.com.au Website: www.yogabugs.com.au Start up costs from: $20,000

Start up costs from: $69,900 + GST PROFILE: Invest in an Xpresso Delight franchise and seize the opportunity to profit from one of the fastest growing markets on the planet. As the number of savvy, educated coffee drinkers has boomed, the market has exploded! This pent up demand for gourmet coffee in the workplace is very poorly met. Each day, thousands of workers trek to the nearest café to pay as much as $4.00 for their morning and afternoon coffees. This is the premise of Xpresso Delight - transplanting the cafe into the heart of the workplace at a fraction of the price that people pay normally.

Phone: 07 5500 0800 Fax: 07 5500 0900 Contact: Christine Allsopp Email: franchise@zarraffas.com Website: www.zarraffas.com Start up costs from: $400,000 ProFilE: Zarraffa’s Coffee was established in 1996 by ex-pat American Kenton Campbell who borrowed a personal loan to start up what has become a 52 store franchise business with a stellar reputation for product and service. Now, Zarraffa’s Coffee is the largest coffee franchise in Queensland, the 17th Fastest Growing Franchise on the BRW list and has an additional 11 stores opening in 2012. It remains an award winning specialty coffee retail outlet and has been providing premium coffee products and freshly roasted beans since its establishment. The evolution of the business has seen the introduction of the drive thru store model, which has had a significant impact on the business, delivering heightened convenience and a superior coffee menu to time poor customers. Zarraffa’s Coffee is founded on the mantra to create ‘and individually perfect cup of coffee - every time’ which encapsulates the company’s mission and our customers’.

ProfilE: YogaBugs is imaginative, interactive and fun for children aged 2 to 12 years, postures, breathing and relaxation techniques are woven together into fun stories and games. Being non-competitive & fully inclusive, children are always the heroes of their YogaBugs adventures. Breathing improves concentration and energy levels & promotes healthy sleeping patterns. Postures strengthen the core stabilising muscles & assists in reducing childhood obesity. Relaxation aids in better memory retention, whilst calming symptoms of anxiety and nervousness. A YogaBugs Franchise gives you exclusive rights to a Territory, start from $20,000 and can be run from a home based office.

A-Z Listings For A-Z listings enquiries contact: National Sales and Marketing Manager David Strong on 02 9422 2905 david.strong@reedbusiness.com.au

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Companies in this issue 7-Eleven 69* 10 Thousand Feet 160* Amazing Clean 121* Anytime Fitness 15* Appliance Tagging Services 117* Applied Marketing Science 47 Australian Skin Clinics 150 Austvending 91* Autobarn 42* Baker’s Club 125* Bakers Delight 184* Baskin-Robbins 127* Bedshed 48* Ben & Jerry’s 11* Brian Tracy 65* Burrito Bar 27* Cafe2U 39* Caltex 56* Chicken Treat 109* Clean Green Strata 124* Coco Cubano 13* Contours 29* Crazy Johns 145 DC Strategy 140-141* Diversified Exhibitions 63* Fastway Couriers 183* Financial Planning Association 108 Flowers by Fruit 88* Franchise Legal 6 Franchise Selection 130-131* Games2U 157 Global Coffee Solutions 71 Gloria Jean’s Coffees 53* Greenbizcheck 55* Grey Army 96

Hudsons Coffee 35* Ink on the Run 24 Jani King 28* Jem Promotional Products 44 Jim’s Building 17* Jumping J-Jays 4* Keen to Clean 143* King of Knives 43* Koala Krane 37* Kwik Kopy 133* Leadership Management Australasia 2* Light My Fire Australia 151 Lollypotz 61* Management Institute of Australia 79* Mason Sier Turnbull 45* MBE Business Service Centres 135 McDonald’s 92-93* Messagecom 154 Metropolitan Shredding 132 Micronet 14* Mr Rental 21* Nanotek by Ecowash 80-81* National Franchise Insurance Brokers 113 Nightowl 106* Oporto 99* Orange Leaf 112 Outback Jacks Bar & Grill 19* Ovenu 57* Pizza Hut 22 Plus Fitness 24/7 33* Positive Training 147 Quest Serviced Apartments 25* RBI 159,162,163,182*

Franchising Advertising enquiries

INCORPORATING FCA NEWS

FRANCHISE COUNCIL OF AUSTRALIA

* indicates FCA member

Redcat 118 Red Rock Noodle Bar 136* Resicert 153 Retail Food Group 77, 115 Salsa’s Fresh Mex Grill 59* Signarama 72-73, 104-105* Silver chef 74* Smith & Sons 120 Snap Fitness 58 Snap On 9* Snooze 97* Social Media Business Boosters 83* Solutions Franchising 12 Subway 85* Sumo Salad 139* Supergeek 100* Telechoice 128-129* The Business Commandos 149 The Cheesecake Shop 102* The Duster Dollies 116* The Franchise Shop 50-51* Think Franchise 54 Top Snap 66* Total Tools 89* Touch up Guys 111* United Petroleum 137* Vanity Bar 75 VC Solutions 38 VIP Australia 84* Weekly Media 34 Wisewould Mahoney 46* Worldwide Online Printing 49* Xpresso Delight 95* Yogabugs 138 Zarraffa’s Coffee 67*

David Strong

National Sales & Marketing Manager

Magazine A-Z listings The Profiler The Yearbook Online inventory E-blasts E-newsletter Ph: 02 9422 2905 Mob: 0411 366 656 E: david.strong@reedbusiness.com.au 182| FRANCHISING JUL/AUG 2012

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Take control of your future... ...and be your own boss. Fastway Couriers now has a number of exciting opportunities to join our award winning team! Low start up costs

Exclusive territories

Guaranteed income package*

No weekend work

Perpetual Franchise Agreement

Unparalleled business support & training

Recognised brand

Easy to operate - no experience required

Award winning system for over 25 years

Enjoy the freedom of working for yourself

To ﬁnd out more contact us: p. w.

1300 FASTWAY fastway.com.au

*For a deﬁned period. Conditions apply. Fastway Couriers (Australia). ABN 38 057 389 769. Fastway Couriers is a franchised courier network and its businesses are independently owned.

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Committed to community Bakers Delight is Australia’s most successful bakery franchise, with 31 years proven experience and more than 700 bakeries. Our bakeries are a proud part of local communities across Australia, and we’re continuing to grow. Right now, we’re seeking community focused franchisees for new and existing sites across the nation. Take control of your future, contact our franchise recruitment team: 1300 309 759 or apply now: bakersdelight.com.au

PR54 Franchise Mag June 205x275mm.indd 1

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