FRANCHISING - MAR/APR 2012 by Cirrus Media

FR.MARAPR12.PG001.pdf

Page

22/02/12,

2:44

RETAIL FOCUS

SYDNEY EXPO PREVIEW www.franchise.net.au

BOOKS & CARDS

FRANCHISING

Franchising Mar/Apr 2012 VOL.25/No.2

Your essential guide to buying a franchise

CODE OF CONDUCT

The rule of law How to use the Franchising Code

MAD MEX MEN

MARCH/APRIL 2012

The business of burritos

WWW.FRANCHISE.NET.AU

Working from

home How to do it well

Print Post Approved PP255003/01132

AUS $6.95 NZ $7.95

Bean counting A taxing issue GET MAXIMUM TAX BENEFIT FROM YOUR BUSINESS

COST MANAGEMENT IN COFFEE CHAINS

KING OF KNIVES: COOKING UP SUCCESS IN-STORE

GJ_FRANCHISE_DEC11T.pdf

Page

25/11/2011,

100%

ED AUSTRALIAN ORWANTED LOCALLY OPE

2:19

FR.MARAPR12.PG003.pdf

Page

22/02/12,

11:37

Contents MARCHâ&#x20AC;&#x201C;APRIL 2012 |YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE

30 78

23 REGULARS 5 Editorial 6 News 10 Interview 122 Legal 125 Sketch 126 People 128 Checklist 146 Company listings

Inspire

Issues

16 From worship to wax Why a former pastor invested in Brazilian Butterfly 18 The business of burritos Mad Mex franchisees 23 Shhh, want to know a secret? The jewellery franchise expands 26 A new road map Fastway Couriers is heading for the internet market

Cover story 78 Hitting a home run Why working from home could be for you 87 Brand new or tried and true The pros and cons of an emerging franchise

Opportunities 30 Bean counting Managing costs are key in a coffee franchise 40 A polished act The professional approach to cleaning 48 Little people, big hearts, big prospects A passion for children can lead to a great career 55 Broking the deal Home loans can be big business 62 A new chapter in retail Books, cards and shopping 70 A key to your future Visit the Sydney expo for some great opportunities WWW.FRANCHISE.NET.AU

How to... 90 What is the Franchising Code? A mandatory code governs the franchising sector 99 Where do your dollars go? The marketing fund and fees 102 Top marks! How to judge a good training program 106 Pointing the way What to ask about site selection 115 A taxing issue Choose the right business structure to minimise tax

87 MAR/APR 2012 FRANCHISING | 3

AD_FRJUMMAR_12.pdf

Page

2/02/12,

5:12

Guaranteed $100k sales in first year!

Jumping Castles Franchises

franchisesales@partycastles.com

-XPSLQJ - -D\V VWDUWHG LQ DQG KDV TXLFNO\ EHFRPH WKH ZRUOGÂ¶V ODUJHVW LQÃ&#x20AC;DWDEOH DPXVHPHQW FRPSDQ\ 7ZLFH WKH ZLQQHU RI )&$Â¶V )UDQFKLVH RI WKH <HDU WKH EXVLQHVV DOORZV \RX WR LQYHVW RQO\ GD\V SHU ZHHN LQWR WKH EXVLQHVV :LWK IUDQFKLVHV LQVWDOOLQJ FDVWOHV DYHUDJLQJ PRUH WKDQ LQ UHQWDOV SHU ZHHN HYHU\ \HDU QRZ LV WKH SHUIHFW WLPH WR MXPS LQWR \RXU RZQ EXVLQHVV Email: IUDQFKLVHVDOHV#SDUW\FDVWOHV FRP Phone: 1300 227 853 :HE ZZZ SDUW\FDVWOHV FRP

Seeking MUMpreneurs

Mobile Teddy Bear Making Franchises

made by you

franchisesales@stufflers.com

This exciting new franchise was launched in Australia in 2010. Building on the successful VDOHV LQ $PHULFDQ EHDU PDNLQJ VWRUHV 6WXIÃ&#x20AC;HUV LV DOO DERXW PDNLQJ VWXIIHG DQLPDOV DW NLGVÂ¶ SDUWLHV DQG HYHQWV XVLQJ WKH 6WXIÃ&#x20AC;HUV XQLTXH PRELOH PDFKLQH V\VWHP :LWK FORWKHV ORYH LQVHUWV DQG VSHFLDO FDUU\ FDUWV 6WXIÃ&#x20AC;HUV LV WKH QH[W SDUW\ SKHQRPHQRQ %HVW VXLWHG WR D VWD\ DW home career driven mum that has GD\V SHU ZHHN available. Email: franchisesales@stufflers.com Phone: 1800 788 335 :HE www.stufflers.com Be the first to secure an exclusive region!

FR.MARAPR12.PG005.pdf

Page

22/02/12,

1:34

Welcome

Franchising Publisher Michelle Graves michelle.graves@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

Shaping the future

National Sales and Marketing Manager David Strong david.strong@reedbusiness.com.au Direct: 02 9422 2905 Contributing Journalists Domini Stuart Stephanie McDonald Columnists Greg Nathan Andrew Terry Raynia Theodore 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 Sep ‘11 7,018

SARAH STOWE Editor

lexibility is almost a byword for modern business success. Companies need to be adaptable to respond to market situations, most of us are required to have flexible skills in the face of ever-changing technology, and many of us crave some form of flexibility in our working lives. It’s perhaps no surprise that the opportunity to manage their own time can appeal to potential franchisees, and it is a particular benefit of franchise systems that are home-based. Our cover story, Hitting a Home Run, looks at why working from home can be a winning business choice, and the level of discipline it demands. Of course in franchising the ready-made support structure is in place to ease the whole process! While flexibility is quoted as an essential in business by King of Knives’ head Ron Baskin (see the interview on p10), he also cites online retailing as an ongoing challenge. And that it certainly is as a recent study by The Franchise Institute highlights, there is a low level of engagement with online commerce among franchise brands. But there are franchisors (such as King of Knives) who are adapting their retail model to not just include online, but embrace it; turn to p62 to read how the books and cards retailers are innovating. Innovation online can affect how businesses perform, and at Fastway Couriers, the ambition of becoming the leading online retail provider has driven a new strategy and a re-brand (see p26). Coffee of course remains very much about the experience: the taste, the service, the choice. But it takes more than a great menu to maintain a strong business so we take a look at how franchisors suggest franchisees manage their costs. Read what they say on p40. In this issue you will also find an article on how to structure your business for tax benefits, an easy guide to The Franchising Code of Conduct, the pros and cons of an emerging franchise, and the essential Sydney Franchising and Business Opportunities Expo preview (p70). Happy reading, and we hope to see you at the Sydney expo, 23 to 25 March. Come and say hello!

Companies need to be adaptable to respond to market situations, most of us are required to have flexible skills in the face of ever-changing technology

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

All Franchising material is copyright. Reproduction in whole or in part is not allowed without written permission from the Editor. © 2011. Opinions expressed in Franchising are not necessarily those of Franchising or Reed Business Information.

Look out for our special anniversary edition

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 5

FR.MARAPR12.PG006.pdf

Page

21/02/12,

1:57

News ONLINE NEWS | WWW.FRANCHISE.NET.AU

SumoSalad declares war on unhealthy lunches HEALTHY food franchise, SumoSalad, has teamed up with Sydney celebrity chef Pete Evans in developing six new salads which form part of its new protest again unhealthy lunches. Consumers now have access to a broader range of healthy salads on offer at SumoSalad, and are encouraged to take part in a protest movement the franchise has launched against unhealthy eating. The campaign is being promoted on SumoSalad’s website and Facebook page, where people can join the crusade to “say no to fried food and lardy lunches” and will in the future be given information on actual food court protests. “We want the public to join the protest to increase the offer of healthy foods in the food courts,” Georgie Frew, a Sumo Salad spokesperson, told Franchising. “For breakfast and dinner, people know what they should be eating but when it comes to lunchtime, when you’re

Pete Evans with Luke Baylis

surrounded by all that bad food in the food courts, you’re naturally drawn to nuggets or chips rather than salads, which are a good choice. So [the campaign] is about educating the consumer about what a good lunch does look like.” Luke Baylis, co-founder of SumoSalad, said food courts shouldn’t be offering

unhealthy food on the go, but rather fuel to help us get through the rest of the day. “On any given day, in any food court across Australia, people are buying lunches that may contain the total of the recommended daily requirement in salt, fat and sugar in just one meal. Once fed, many return to their sedentary afternoon in front of the computer whilst the saturated fat gets comfortable settling in,” he said. Chef Pete Evans, who heads up restaurant and catering company, Hugos Group and is also the co-host of Channel 7’s My Kitchen Rules, incorporated super foods like quinoa and edamame as well as popular choices including chicken and prawns, when putting together the six new salads, which include Moroccan Roasted Vegetables with Chickpeas and Tahini Dressing, Miso Infused Chicken with Brown Rice and Tuna and Green Pea Pasta, with Chilli Lime Dressing.

A Bright Future… Awaits You with Australia’s Leading Mobile Ink Franchise Proven System Low Entry Cost Strong Cash Flow Proactive Marketing Growth Market 1800 ink run (465 786) www.inkontherun.com.au 6| FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

See page 54 for details

FR.MARAPR12.PG007.pdf

Page

21/02/12,

1:57

News ONLINE NEWS | WWW.FRANCHISE.NET.AU

NEWS BRIEFS Crust Gourmet Pizza Bars is the latest franchise chain to introduce desserts in a pizza dough, with its rocky road and hokey pokey sweet treats wrapped up in calzone The Fair Work Ombudsman is hoping to engage some of Australia’s largest franchisors with the launch of a new National Franchise Program

Greece next stop in Nanotek’s Europe expansion NANOTEK Car Cleaning has launched its flagship fixed site for Greece in Athens’ premier luxury mall, the Golden Hall. The shopping mall site concept was conceived at the time of the launch of the Nanotek brand, but it has taken more than two years of planning and development to make it a reality. “This facility is the new template for our fixed site operations in Europe,” said Michael Curry, general manager, Nanotek Middle Eastern Europe. “The operation is centred around our core Nanotek car cleaning and detailing services, which are perfectly suited to the requirements and expectations of Golden Hall’s clientele.” The prestige shopping mall houses 131 stores across 41,000 sq m. Jim Cornish, Nanotek CEO, told Franchising “This clientele is the niche we want to be in. We want to get with the influencers, this is as much about brand awareness as an operations strategy. We’ll be getting brand exposure to people who can grow our business outside Golden Hall.” Despite the dire economic situation in Greece, Cornish is confident the premium position of the Nanotek brand will see it prosper. “There are still going to be higher end spends,” he said. The Golden Hall site follows on from the launch of Nanotek’s flagship fixed

Twenty-four hour fitness franchise, Jetts, has taken out the inaugural Canstar Blue Most Satisfied Customers’ award for gyms Mobile coffee franchise, Cafe2U, has announced South Australia’s Regency Park local Rob Clark, as the winner of the 2011 Cafe2U National Franchisee of the Year Victorian-based cafe on wheels, Tasty Trucks, has begun its national expansion with the acquisition of the 17 van business Lunch Express

site operation in the Middle East last November. Since launching in Europe in 2007, Nanotek has expanded to include operations in France, Greece, Romania and Russia and has further plans to expand both its mobile and fixed site operations. Cornish said “Europe is a fantastic market for Nanotek. It is technology focused, the car culture is very strong, and space is at a premium – a perfect combination for the benefits of the Nanotek service. This is now the blueprint for our fixed site shopping centre operations in all markets and the experience we gain here can be shared with our franchisees around the world.”

“Franchises face similar challenges

to other small businesses, however they have existing business structures that can be utilised to deliver education and assistance to the entire franchise network.” - Fair Work Ombudsman Nicholas Wilson - www.franchise.net.au

WWW.FRANCHISE.NET.AU

Kids’ entertainment franchise Jumping J-Jays has named Ian Burge, franchisee for Salisbury in Adelaide, the Franchise of the Year Courier franchise, Fastway Couriers, is complementing its brand refresh with a new, more userfriendly app, complete with parcel tracking information Kitchenware retail franchise King of Knives is offering three new franchisees who sign up before 30 April 2012 $20,000 worth of stock, valued at $40,000 at retail A new online tool at new-build franchise Hotondo Homes means house buyers can create a plan for their ideal home themselves Domino’s has followed a lead set by McDonald’s and signed up to a national audit designed to ensure the pay packets of its 11,000-strong workforce in Australia are accurate

MAR/APR 2012 FRANCHISING | 7

FR.MARAPR12.PG008.pdf

Page

21/02/12,

1:57

News ONLINE NEWS | WWW.FRANCHISE.NET.AU

Anytime Fitness matches US growth rate ANYTIME Fitness in Australia has hit a new high, selling 300 franchise territories and opening 130 clubs in less than three years - matching the record set in the fitness chain’s domestic market in the US. The club’s master franchisees for Australia , the brother-and-sister team of Justin McDonell and Jacinta McDonellJimenez, believe the expansion will continue with about eight to ten clubs opening each month. “So, it won’t be long before we have over 300 clubs open in Australia,” McDonell said. “We believe that we have a further 50 to 100 clubs that can potentially open, on top of the 300 territories already sold.” McDonell-Jimenez said “The Anytime Fitness business model offers an amazing balance of lifestyle and a rewarding business. Some of our franchisees own as many as nine clubs and still enjoy a great

personal lifestyle. This is almost impossible to achieve in other franchise businesses. “We look for franchisees who understand the importance of sales and marketing along with an exceptional passion to deliver a great member experience,” said McDonell-Jimenez. “Our most successful franchisees focus on sales and marketing and hire a terrific club manager to produce an ideal club culture. Our clubs offer the members what they need – great equipment, personal attention, and convenient and affordable facilities, open anytime.”

Coffee franchise, Justin McDonell and Jacinta McDonell-Jimenez

The Coffee Club, wants to open 30 stores in China over the next three years

Jim’s to build across the country JIM’S Building Inspections is set to expand nationally, six months after its launch. The start-up division’s first five Victorian franchisees have already exceeded their annual income projections and the company has its sights set on Queensland and New South Wales. Each state will

have four regional franchisors running their own territory and sub-dividing the region between up to 18 franchisees. Business manager, Suzanne Commerford, said the ideal candidates for regional franchisors would be either registered builders or existing building inspectors who wish to

succeed in and develop their own business. “We are attracting a large number of prepurchase inspections which help prospective homebuyers make good, informed decisions,” Commerford said. “We have also been in discussion with national, commercial clients who require a range of special-

ist, facility inspection services, which supports our intention

to become Australia’s dominant inspections business.”

OPSM grows while sister brands close MORE than 50 extra OPSM stores are planned for Australia and New Zealand. But the opportunities come at the expense of other brands within the Luxottica Group. To boost the OPSM business to about 470 outlets throughout Australia and New Zealand by 2015, Luxottica will spend 8| FRANCHISING MAR/APR 2012

$5 million promoting the brand and direct $40 million of capital expenditure to the chain. But the cost conscious Budget Eyewear and Just Specs brands will be rebranded to the OPSM marque and the more prestige Laubman and Pank chain refocused to its core base of

South Australia, Western Australia and Queensland. In NSW and Victoria some Laubman and Pank stores will also be rebranded as OPSM while lower performing stores may relocate or close. Chris Beer, Luxottica’s chief executive officer of Asia Pacific, said in a statement the focus is clearly on the

WWW.FRANCHISE.NET.AU

mainstream OPSM business. The company reported stores had grown like for like by more than 10 percent in the December quarter. “Given the strong position of the business, we believe this is the right time to make the changes, which will strengthen the organisation even further,” said Beer.

See page 54 for details

AD_FRSNAJAN_12.pdf

Page

6/12/11,

2:10

E CTIV EFFE G T S CO NCIN FINA AGES PACK ABLE L AVAI LITTLE S A M FRO $37,000. AS

SNAP-ON TOOLS PUTS YOU ON THE ROAD TO SUCCESS â&#x20AC;&#x153;â&#x20AC;&#x153;The The ongoing on fee structure is very low compared co to other franchises. the more I sell, the With Snap-on S more I earn. Youâ&#x20AC;&#x2122;re buying an asset, and if you work hard you will reap rewards. Snap-on ticks all the the rew ÂżQDQFLDO ER[HV Â´ ÂżQDQFL Mar â&#x20AC;&#x201C; Martin Pearce Snap-on Tools franchisee since 2004. Snap-o

Phone 1800 762 766

Ă&#x2020; Global leader in tools and franchising Ă&#x2020; 3URYHQ HVWDEOLVKHG SURÂżWDEOH EXVLQHVV PRGHO Ă&#x2020; In-demand products, #1 market share Ă&#x2020; Operating in Australia for over 21 years Ă&#x2020; 1R PHFKDQLFDO H[SHULHQFH QHFHVVDU\ Ă&#x2020; ([WHQVLYH WUDLQLQJ DQG RQJRLQJ VXSSRUW

www.snapontools.com.au

FR.MARAPR12.PG010.pdf

Page

22/02/12,

12:45

Inspire|Interview

It takes more than well marketed merchandise to cook up a winning business. Ron Baskin discusses the blend of ingredients at King of Knives with Sarah Stowe

THE

MAGIC MIX

ehind the 25 year old King of Knives business is an experienced retailer, franchisor – and amateur magician – Ron Baskin. Ron Baskin has been in retail all his life and has been involved in a variety of brands, from Sunglass World to King of Knives, from Danoz to the Specialty Fashion Group home of labels such as Katies and Millers. Baskin joined his business partner Maurice Joffee in 1987 and helped

Cookware from Kitchenaid

10 | FRANCHISING MAR/APR 2012

build the King of Knives business until in 2004 the company was sold to Retail Cube. Three years later he bought back the brand and was at the helm again. When we meet in the Sydney head office, in a nondescript light industrial area not too far from the airport, Baskin ushers me into the showroom filled with appealing kitchenware items from the smallest silicone cupcake mould to a hefty set of serious knives. Well known brands include Bismarck, Circulon and Leatherman. Showing off the broad selection of brands and products lining the showroom walls, Baskin explains that the retail outlets do not just appeal to a female consumer. “These are

boys’ toys; knife block sets are massive as gifts – a set of knives is always a big deal.” Thanks to the Masterchef influence, customers are getting younger, he says. The stores have always catered for the older consumer, now they are as young as 16. The merchandise on offer is tempting too – much of it exclusive to the King of Knives chain. “This is a massive advantage because you can’t go in to a department store and come out with our goods.” When it comes to competing stores, Baskin believes there is no other chain catering for the same market. “It’s not lifestyle, it’s kitchenware but also gifts. In the

We’re very lenient as a franchisor... we treat our franchisees like gold WWW.FRANCHISE.NET.AU

AD_FRBENSEP_11.pdf Page 1 8/8/11, BJ1262 B&J Full Page Ad Franchising Mag 2011_OL.pdf 1 3/08/11

10:15 2:31 PM

FR.MARAPR12.PG012.pdf

Page

22/02/12,

11:55

Inspire|Interview

kitchenware business everyone has a niche. Choices are limited because there is very little opposition. House and Matchbox are more about tabletop and crockery. Everything here is in the kitchen. We’re in the food preparation and gift business.” A portfolio mix of both international names and exclusive brands is also a distinguishing factor when it comes to the question of online sales. “The reality is online is getting bigger and no-one will be able to fight it.” However, King of Knives is investing in its online offer, turning to web experts to build a top class site. “We’re getting an extreme amount of help to make sure it’s top line. The back end too, the process and the delivery. It’s not a cheap operation, and it needs to be maintained – it’s a full time job.” Right now the website generates sales for the stores, and more importantly, drives traffic to the stores. Baskin’s approach to balancing the bricks and mortar and online elements

is to ensure that orders placed through the website are either delivered direct to the consumer, or available for customer pick up from their local store. Either way, the outlet which is in the customer’s territory is credited for the sale.

Flexible system Keeping a steady eye on the market and their own business is important for franchisees, who need to alert the franchisor of any problems

Merchandise mixes international and exclusive brands

The magic touch As the interview winds to a close, Baskin asks, “Can I show you a magic trick?” The pack of cards is already at his fingertips, the light but focused touch he has applied to discussing the franchise turned to his swift sleight of hand. He takes obvious delight in the play factor, and it’s impos-

sible not to laugh when the cards fall into place with every trick. Baskin became interested in magic about 15 years ago when he thought he would use the skill to entertain sick children in hospital. “But by the time I became good enough, I realised I wasn’t strong

enough, I would find it too difficult to see these children. So now I do adult magic instead. “I haven’t met anyone who doesn’t like magic, and occasionally I use it in business. It’s a great ice breaker to say, ‘what if you choose a card and I can guess which one it is?’”

solutions franchising group

Australia’s complete franchise service group

Franchisee Recruitment ec u t e t

Legal Services Se ces

System Development

Training

www.solutionsfranchising.com.au P 03 9428 1088 E info@solutionsfranchising.com.au

12 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

Strategic Planning a g

International

AD_FRKOKJAN_12.pdf

Page

30/11/11,

4:33

W L O B N LA I A V A

FRANCHISE OPPORTUNITIES 34/2%3 '2/7).' !#2/33 AUSTRALIA & NZ

KICK START YOUR BUSINESS WITH $20,000 IN FREE STOCK

Coditions Apply

OVER 20 YEARS RETAIL %80%2)%.#%

KING OF KNIVES

GUARANTEES

s .ATIONAL SUPPORT TEAM s #OMPREHENSIVE TRAINING PROGRAM s (ANDS ON IN STORE SUPPORT s .ATIONAL MARKETING PROGRAM s %XCLUSIVE BRANDS

Untitled-1 1

CALL DANIEL ON t: 02 8372 0918 FOR MORE DETAILS

30/11/11 3:54:13 PM

FR.MARAPR12.PG014.pdf

Page

22/02/12,

11:55

Inspire|Interview

they can’t handle. Although business assistance could be turned down by the franchisee, it never has been. “The biggest lesson I’ve learned is that problems can occur very quickly and can come from anywhere, so you need to be prepared and flexible to make quick decisions,” says Baskin. He is extremely confident in the franchise model. “We’re very lenient as a franchisor,” he says.

Brands include Icel Technik

There are two specific ways in which King of Knives is a model geared to the franchisee, despite having a high proportion of company-owned stores (out of the 59 Australian outlets, only 13 are franchised). Firstly, explains Baskin, “We are able to achieve the best prices in the marketplace due to our dominance in the category. Franchisees are able to purchase at the same price as negotiated for the company stores and on the same terms.” Secondly, franchisees who buy direct from the franchisor’s exclusive brands buy at good margins. “We try and achieve market leading margins for all King of Knives stock.” While some franchise systems insist on a high level of control over franchisees and their business choices, at King of Knives franchisees are given a high level of autonomy – backed up by franchisor support. Franchisees control their product line up from an approved supplier list, with a swift delivery guaranteed. “Each store’s merchandise is customised to its client base,” says Baskin. Add to this the online sales strategy

Ron Baskin askin Baskin got into retail straight out of school. He joined a depart-ment store in South Africa as a management Ron Baskin trainee, and then left to open a sunglasses operal tion which he sold when he emigrated to Australia. “I started Sunglass World in 1982 then bought into King of Knives. When I sold Sunglass World, which became Sunglass Hut, there were 81 Australian stores and 20 in the US. “Retail Cube Group bought King of Knives in 2004 and I bought it back in 2007.” and franchisees appear to be well catered for. “We supply franchisees with what they want,” says Baskin, “We treat our franchisees like gold.” F

Autobarn Franchises

FOR SALE!

• Largest automotive franchise retailer in Australia • Full support structured franchise system • Exclusive territory • Strong marketing program

New Territory

Armidale (Regional NSW)

• Est opening date May 2012 • One of the last regional territories available • Vendor ﬁnance in part available to an approved applicant

Existing Franchises Albury (NSW) A • Well W established business b • Store S located close to t the city •G Good secure lease • Strong S regional territory t

Sunshine (Melbourne,VIC) • Established over 25 years • High proﬁle site on Ballarat Road Sunshine • Large 1000sq. mt. store • Rare opportunity to acquire prime franchise territory

Swan Hill (VIC) • Healthy, sustainable proﬁts • Progressive, national franchise • Secure lease of modern premises in well-exposed location • Fully computerised stock control system

AUTONATM05032

14 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

Please call Steve Woodward on 0401 694 258 to arrange an interview. These interviews are information only with no obligation. Alternatively you can visit our website www.autobarn.com.au and click on Franchise.

AD_FRANYMAR_12.pdf

Page

3/02/12,

10:26

FR.MARAPR12.PG016.pdf

Page

21/02/12,

12:18

Inspire|Franchisee

FROM WORSHIP

Jacqui Coulthard’s resume is as varied as they come, but as one of Brazilian Butterfly’s newest recruits, this ex-pastor is on a new mission and believes she has God on her side

TO WAX H

airdressers and beauticians are renowned for being great listeners, advice givers and all-round chatty people. Brazilian Butterfly franchisee Jacqui Coulthard fits this mould to a tee, and has a great story to tell. Previously a pastor at her local church, Jacqui became a Brazilian Butterfly franchisee with one goal in mind. “I’ve always liked working with the community, so a lot of the time I was working with women and drug addicted teens, but my real goal is now to work my way into [helping victims of] the sex trafficking industry,” she says. Jacqui’s Ringwood North waxing franchise will give her and her carpenter husband the means to travel to South East Asia to build homes for young women and children and teach them a way of life other than prostitution. “I decided that I could establish my own business where 10 percent of the profit could go into our not-for-profit organisation, Freedom for the Captives,” says Jacqui. “So I decided I’d have a look into my own business and then I thought I may as well look at an established brand. I’d known of the Brazilian Butterfly brand for years and I knew that franchising was the way to go because it’s tried and tested and the brand gets out there.” Jacqui’s franchise has been operating for about 16 weeks now, and with 30 new clients walking through the door every week, she’s well on her way to achieving her goal in the three year time frame that she’s set herself. “I think this was a God move, because I believe in God, obviously. I think

16 | FRANCHISING MAR/APR 2012

it’s Him sending people in the door because I’m going to make a lot of money here and I’m going to put 10 percent of it into where my passion is. I’m giving myself three years to really establish this place and then take my hands off so I can have a manager running it.” And while worshipping and waxing may seem to be worlds apart, Jacqui’s experience as a pastor is making the transition into the beauty industry a fairly smooth one. “I’m a people person anyway, but it’s definitely helped me to be able to handle conflict and resolve things a lot better than had I not had those 12 years working one on one with people iin the church. I feel like that was a training ground for bigger and better things in the community,” she told Franchising. While Jacqui hasn’t seen any of the women from her church since opening the salon (not surprising considering brazilian waxes are far and away the most common treatment performed at Brazilian Butterfly), she says working with women is still what she enjoys most. “I can remember right back when I started at the church, I was appointed the women’s ministry pastor and then I moved my way up and ended up becoming the executive pastor of the local church. But I was always involved with women and facilitating things for women and was very hands-on with young teenage girls and crisis pregnancies, drug addicted women and lots of heroin addicts. And it’s a totally different field [now] but it’s still women and that’s where I’m most comfortable.” WWW.FRANCHISE.NET.AU

Jacqui Coulthard with Bra zilian Butterfly MD, Scott Farrar

Word W d off mouth h has h played l da big part in her franchise’s success, says Jacqui, who hopes to open Brazilian Butterfly’s first Sydney franchise in the near future, but the brand recognition and marketing strategies that often go hand-in-hand with the franchising industry has certainly played a big part in the rapid growth of her business. Jacqui says choosing a franchised business model was a “safe bet”. “I did think about going out and doing my own thing to save money, but in the long run, I asked myself ‘could we really save money’? “I’ve given myself three years to work here hands-on, full time. I eventually want seven full time waxers because I’ve got seven rooms that can be run full time every day, so I eventually want seven people here turning over $50 every 20 minutes. I definitely think franchising can get me there a lot quicker than what I could have anywhere else.” F

AD_FRJIMNOV_11.pdf

Page

5/10/11,

2:30

A R O F G N I K O O L

? E F I L R E T T BE

Unlimited Earning Potential You create the lifestyle of your dreams Our unique work availability guarantee Ongoing training and advice A mentor to help you expand and grow No % based royalties on the profits you make Interested? Take one step higher and become a Regional Franchisor

HOW? A Jimâ&#x20AC;&#x2122;s Building Maintenance Franchise

NEED MORE INFORMATION? P: 131-546 W: www.jimsbuildingmaintenance.com.au

FR.MARAPR12.PG018.pdf

Page

21/02/12,

2:22

Inspire|Franchisees

With a healthier, fresh approach to Mexican cuisine and 15 stores in just over four years, Mad Mex is arming itself with a team of business savvy, handson, franchisees who are keen entrepreneurs but still wish to follow the tried and tested systems that make franchising a success. We profile two such franchisees here

THE BUSINESS OF

ome might say that running a franchise is perfect for those that want to own their own business but arenâ&#x20AC;&#x2122;t really keen on leadership, or having too much responsibility. These Mad Mex franchisees are turning this theory on its head and using their business acumen and enthusiasm for the brand to grow their own empires.

Sonny Khan â&#x20AC;&#x201C; Mad Mex Blacktown and Norwest The fast food franchise industry is a very familiar one to Sonny Khan. Before coming to Australia and diving head first into the

18 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

FR.MARAPR12.PG019.pdf

Page

21/02/12,

2:23

Franchisees|Inspire d Mex stores in Sydney Sonny Khan has two Ma

healthy Mexican franchise that is Mad Mex, Sonny worked in a management and development role for McDonald’s, overseeing 36 of the company-owned stores in New Zealand. After crossing the Tasman, the golden arches offered Sonny a new position, but by then he’d already stumbled across a job ad for Mad Mex. “Before actually becoming a franchisee I worked for Clovis [Young, founder] for close to a year and I was the store manager for his Macquarie Centre store and then the opportunity came up in Blacktown, which was the first store that they were going to franchise. I lived only 10 minutes away from it and because I’d worked with Clovis and had McDonald’s experience, as well as my love for Mexican food, I knew that this was the place to get in,” says Sonny. “Franchising wasn’t really something I wanted to do until I started working at Mad Mex and I saw that it was really something that was going to take off, and it really has. “If someone asked me to go and buy another franchise I’d probably say no, but

I’ve got two Mad Mex stores and I’m certainly thinking of even a third one in a couple of years.” Sonny says that while Mad Mex, founded in 2007, is just a baby compared to McDonald’s, both in size and age, the training and support offered by head office can’t be faulted. “They’re really good with store openings. They set you up for success,” he says. “Leading into the store opening, you have the timeline and then once the store opens you have operations managers and people coming in and not only that, you have ongoing marketing support and all the other bits and pieces that go with it. So the support structure is always there.” Sonny’s approach to business is to fish where the fish are, and he makes a point to serve the customers, engage with them and show the staff that he’s a hands-on franchisee, even doing the prep work with the fresh ingredients that Mad Mex is known for and which Sonny is passionate about. “It’s like I say to my staff, when the customers walk in they can see that things

are fresh. McDonald’s uses frozen meat patties, whereas at Mad Mex nothing is frozen, so the freshness is there. We cut, we chop and prepare everything. When we make our guacamole we spend hours cutting the avocadoes; you get that really good authentic flavour.”

Brad McMaster – Mad Mex Melbourne Central With a past career as the head of an equity research team in the baking industry, one

FRANCHISES AVAILABLE AUSTRALIA WIDE! Specialising in casual and relaxed dining Famous for our premium quality steaks Franchisors with over 20 years experience in hospitality & franchising Proven easy to follow systems Full support in all aspects of running the restaurant

Ph: 07 5532 7071 e: franchising@outbackjacks.com.au www.outbackjacks.com.au WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 19

AD_FRCOCSEP_11.pdf

Page

12/08/11,

4:40

FR.MARAPR12.PG021.pdf

Page

21/02/12,

2:24

Franchisees|Inspire

could assume that the shift to owning your own Mexican food franchise would allow you to loosen your tie and enjoy a more leisurely pace of life, but 34 year old Brad had thrown himself into his Melbourne business and has his sights set on expansion. That’s not to say that it was easy to step down a peg and start to work in a system, rather than being at the top of it. “It’s abnormal for me, I must admit. Going from my previous experience where I was head of an equity research team and I had lots of people working for me, to come down a level, it requires a different mindset and one that you have to take on with your eyes wide open. And that’s where I think the relationship with the franchisor is so critical. You’ve got to have confidence in those individuals,” he says. Brad believes he has the best of both worlds. He still runs his own business and manages his own staff, but isn’t responsible for the public perception of the brand or its direction in the future. “Admittedly, I don’t have the mental satisfaction that I was the one that started

the brand and reaped the success that came with it. But when I go home at night, apart from thinking of in-store promotions and how I’m going to generate activity in my particular locality, the branding of the business and keeping it real in the youth’s mind is all their [the franchisor’s] responsibility,” he says. Like Sonny, Brad insists that to be a good boss and ds-on franchisee Brad McMasters is a han a good franchisee you need to be prepared to work at expand the Mad Mex brand throughout all levels of the business. And Victoria, he still wants to maintain his since day one of his Mad Mex journey – in very hands-on approach to business. May 2011 – he’s done just that. “You end up spending less time “You wouldn’t want to get into a physically working and more time business like this and be afraid of talking supporting ... In the future, with more to customers. You’ve got to set the best sites, I’ll still be in there working at the possible example to the staff that you’re busiest times of the day. I’ll try to be trusting to do this when you’re not there. there for at least a couple of shifts a week While I’m here I roster myself on to work for each store in order to continually behind the counter as an employee and demonstrate and lead by example in terms then I do the book work independently.” of how the business should be run.” F And even though Brad plans to

Recurring Revenue!

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 21

AD_FRXPRMAR_12_L.pdf Franchising Corp Ad Left Hand.pdf

Page

1/2/12

3/02/12,

10:14

2:37:03 PM

Passive Income with Guaranteed RETURNS Work ONLY 1 day a week in the booming coffee market and earn better than the national average wage*

If you ever wanted to own your own business, but didn't want to work the usual 60 - 70 hours per week required. Well now you don't have to. Introducing Xpresso Delight a one day a week business that returns a normal weeks worth of five days labouring, with a guaranteed minimum 50% revenue return on investment.

This is a limited Franchise opportunity with: • Greater than 70% gross profit margins

• 170+ Franchisees in 8 years and growing fast

• Capital investment from $69,900 + GST • Xpresso Delight is NOT a vending business

• Special Offer! All COFFEE Systems now come with Instant Income Locations**

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

Call NOW to discover the magic of passive income or visit our website at: www.xpressodelight.com.au QLD: 0435 224 096 NSW: 0419 203 940 VIC: 0411 578 073 SA: 0400 297 959 WA: 0406 584 340 New Zealand: +64 2187 5431 *based on the average Xpresso Delight franchisee earnings ** All coffee systems refers to the initial purchase requirement only

FR.MARAPR12.PG023.pdf

Page

21/02/12,

12:57

Franchisor|Inspire

Jewellery store Secrets Shhh proves diamonds need not be a girl’s best friend

SHHH, WANT TO KNOW A

SECRET? J

ane Meredith heads up the Noosa based Secrets Shhh chain and in her own words, has moved from doughnuts to diamonds; after a 20 year public service career she “gave up the business suit and briefcase for a pink uniform and fondant in my eyebrows” and became a Donut King franchisee. “I learned a huge amount about branding and franchising,” she says. And this experience has stood her in good stead at Secrets, a business she founded in 2000 with a jeweller friend, Dietmar Gorlich. The big secret at Secrets is that the beautiful fine jewellery for sale features simulated diamonds, rather than the real thing. But, of course, it’s no secret at all, and that’s how the brand has grown its portfolio of 19 stores across Australia and New Zealand. The concept for the brand came when Meredith had moved on from doughnuts and was working for a high end jeweller who pointed out that only nine percent of women were in the market to purchase top quality diamonds.

ple of stores then launched the franchise in 2004.”

The sparkle factor

Jane Meredith

“I had a flash, I’m in the 91 percent,” she says, and the idea of fine jewellery at affordable prices was born. She teamed up with Dietmar and sourced new stones overseas. “We talked about how the concept store would look, about fonts and shopfits. I had $15 and he had just enough to fund the store. “We thought we would have three or four stores in Australia and would finance it ourselves. But customers kept asking if the brand was franchised. So we started with a licence agreement for a cou-

But the clean design that so appealed to customers early on had become tired by 2011 and a redesign was called for. “It looked vanilla, very tired and invisible. We were putting out a confusing message; when customers looked in the window it all looked high end and they were unsure whether or not to walk in.” A major shift in the store design, seen at the flagship Chadstone outlet, has been the creation of an island counter

Segmenting the merchandise into categories such as rings, bracelets and necklets, and gifts, has also significantly helped the stores. Branding has been strengthened too with the proper inclusion of the Shhh element into the logo. The redesign has made a difference. “We are experiencing a 10 to 15 percent average increase in customer foot traffic based on our store counter technology and the design has increased our exposure to new first time customers by 20 to 30 percent, given the more open and inviting design.”

We are experiencing a 10 to 15 percent average increase in customer traffic and the design has increased our exposure to new first time customers by 20 to 30 percent that encourages customers to browse. Black ridging on top of the cabinets helps bring the black and white colour theme to life, while softer wall colours add a more feminine touch.

WWW.FRANCHISE.NET.AU

Despite a tough retail environment Meredith is confident that the store look and layout, and the merchandise, are well positioned to suit the more cautious consumer. Instead of MAR/APR 2012 FRANCHISING | 23

FR.MARAPR12.PG024.pdf

Page

21/02/12,

12:57

Inspire|Franchisor

a $4000 diamond ring, a customer might prefer to purchase a 1.5 carat solitaire ring for $600 from Secrets; gold stud earrings are priced from $180, bracelets cost up to $900, and then silver fashion pieces are from $90. A manufacturing partnership ensures all but one range are designed in-house and produced as an exclusive for Secrets. Todayâ&#x20AC;&#x2122;s simulated diamond is similar to the old fashioned cubic zirconia but is stronger, says Meredith. There are very different grades of stone from triple A down and as with a diamond, the cut makes all the difference. â&#x20AC;&#x153;If itâ&#x20AC;&#x2122;s not cut like a diamond you wonâ&#x20AC;&#x2122;t get the sparkle. And it needs a good setting.â&#x20AC;? Customers like to try on jewellery and thatâ&#x20AC;&#x2122;s why the chain remains unaffected by the general drift to e-tailing; instead the Secrets website is designed for online research before visiting a store. A more interactive website will be unveiled in March, with further activities introduced later in the year â&#x20AC;&#x201C; including a program that allows the user to see what a product will look like on their hand, or worn with other items.

A redesign gave the jewellery chain a stronger brand image

When the business surveyed women about the jewellery, not many were interested in whether or not the jewel was genuine. What was an important consideration was â&#x20AC;&#x2DC;how does it make me feel?â&#x20AC;&#x2122;

Fabulous, not fake Says Meredith, â&#x20AC;&#x153;De Beers has done a wonderful job promoting diamonds; we are creating an alternative.â&#x20AC;? Now 35 to 40 percent of the business is engagement rings. â&#x20AC;&#x153;If a manâ&#x20AC;&#x2122;s going to buy a ring, you can be sure his girlfriendâ&#x20AC;&#x2122;s done a lot of work first,â&#x20AC;? she says of the changing buying patterns of todayâ&#x20AC;&#x2122;s fiancĂŠes which sees engagement coming after the house purchase.

â&#x20AC;&#x153;Customers come to us if they donâ&#x20AC;&#x2122;t want to spend the money [for a diamond]. They come in together or heâ&#x20AC;&#x2122;ll come by himself. Men are not trying to scam their partners. If we ever feel they are doing that, we suggest they go and check with their girlfriend first. We want everyone to love wearing their jewellery. Itâ&#x20AC;&#x2122;s not a decoy, itâ&#x20AC;&#x2122;s something that will last.â&#x20AC;? Generation Y is not as attached to the concept of a diamond ring as previous generations of couples have been, Meredith observes. Sometimes, she adds, the choice of a simulated diamond is a humanitarian or ethical choice. â&#x20AC;&#x153;We donâ&#x20AC;&#x2122;t push this,â&#x20AC;? she says. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re about fun.â&#x20AC;? F

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 youâ&#x20AC;&#x2122;ll be out and about photographing different properties and meeting lots of new Hereâ&#x20AC;&#x2122;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 youâ&#x20AC;&#x2122;re set to go. We work in a growth industry. Our services are in high demand with the residential and commercial real estate industry. Weâ&#x20AC;&#x2122;ll help you succeed. Youâ&#x20AC;&#x2122;ll get the usual intensive training, plus dedicated support with sales and marketing, that youâ&#x20AC;&#x2122;d expect from a high quality, established franchise system. â&#x20AC;&#x153;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!â&#x20AC;? 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

24 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

FR.MARAPR12.PG026.pdf

Page

22/02/12,

11:17

Inspire|Franchise story

A NEW

ROAD MAP It’s no mean feat to overhaul a brand after nearly 30 years. When Fastway Couriers undertook a rebranding six months ago the challenge was more than a fresh look, it was to create a new strategy to suit the internet-driven market. How is it shaping up?

“ Customers can now track the progress of their orders

We’re an established brand in franchising and the courier business. We wanted to make a big change because of the growth in online retail,” Richard Thame, managing director of Fastway Couriers Australia, explains. “We wanted to evolve the brand to cut through new media and create a brand we want to be.”

The goal “Looking at the market we identified a great opportunity in the online space. We didn’t want to just change the logo. So we had to take a step back 26 | FRANCHISING MAR/APR 2012

and look at how we can fit in. And we identified big hairy and audacious goals: to be the number one e-retail provider by 2014. If that’s the goal, what do we need to develop to achieve it?” Increasingly the customer wants to make purchases online without any personal communication, and they want to track progress themselves; the biggest disappointment for a customer buying online is getting the product delivered. This gave technology-focused Fastway its golden opportunity. Courier franchisees have used scanning devices for some time; the new challenge was to add a

WWW.FRANCHISE.NET.AU

level of customer control to the service. “We’ve developed generic plugins. Customers can do searches on prices and services. We’ve spent a lot of money in technical gear in vans, with platforms as well as with retailers and it’s paying dividends. Customers demand instant information and this requires robust, industrial strength technology.” The technology had to work well on Google, iPhone and the web. Fastway went to US experts for development of the iPhone and Android programs. “We need to make technology as simple as possible and I believe

AD_FRMICJAN_12.pdf

Page

29/11/11,

4:21

Micronet’s is so much more than an accounting system ͞dŚĞ DŝĐƌŽŶĞƚ &ƌĂŶĐŚŝƐĞ ^ŽůƵƟŽŶ ĨŽƌ ƚŚĞ ŵďĞƌ dŝůĞƐ 'ƌŽƵƉ ĐƌĞĂƚĞĚ Ă ƐŝŐŶŝĮĐĂŶƚ ƐƚƌĂƚĞŐŝĐ ĂŶĚ ĐŽŵƉĞƟƟǀĞ ĂĚǀĂŶƚĂŐĞ͘͟ :ŽŚŶ ^ĐŚƌŽŽƚĞŶ͕ YůĚ ^ƚĂƚĞ DĂŶĂŐĞƌ ŵďĞƌ 'ƌŽƵƉ ƵƐƚƌĂůŝĂ >ƚĚ

DŝĐƌŽŶĞƚ ďƵƐŝŶĞƐƐ ƐŽŌǁĂƌĞ ŝŵƉƌŽǀĞƐ ĞĸĐŝĞŶĐŝĞƐ͕ ƐƚƌĞĂŵůŝŶĞƐ ďƵƐŝŶĞƐƐ ƉƌŽĐĞƐƐĞƐ ĂŶĚ ŝŶĐƌĞĂƐĞƐ ƉƌŽĚƵĐƟǀŝƚǇ ůĞǀĞůƐ ƚŚƌŽƵŐŚ Ă ƐŝŶŐůĞ ŝŶƚĞŐƌĂƚĞĚ ĚŝƐƚƌŝďƵƟŽŶ͕ ƐĂůĞƐ ĂŶĚ ĂĐĐŽƵŶƟŶŐ ƐǇƐƚĞŵ͘ /ƚ ĂůƐŽ ĂůůŽǁƐ ĨƌĂŶĐŚŝƐĞ ŐƌŽƵƉƐ ƚŽ ƌƵŶ ƚŚĞŝƌ ďƵƐŝŶĞƐƐĞƐ ŝŶ ƚŚĞ ĐůŽƵĚ͕ ƌĞŵŽǀŝŶŐ Ăůů ƚŚĞ ĐŽŵƉůĞǆŝƟĞƐ ŽĨ ƌƵŶŶŝŶŐ /d ŽŶ ƉƌĞŵŝƐĞƐ͘ Retail POS | Supply Chain | ŝƐƚƌŝďƵƟŽŶ | Delivery Scheduling | SaaS /ŶǀĞŶƚŽƌǇ ŽŶƚƌŽů | tĂƌĞŚŽƵƐĞ DĂŶĂŐĞŵĞŶƚ | Financials | Ğ ŽŵŵĞƌĐĞ

&Žƌ ŵŽƌĞ ŝŶĨŽƌŵĂƟŽŶ ĂďŽƵƚ ŽƵƌ ĨƌĂŶĐŚŝƐĞ ƐŽůƵƟŽŶ ǀŝƐŝƚ ǁǁǁ͘ŵŝĐƌŽŶĞƚ͘ĐŽŵ͘ĂƵ͕ ĞŵĂŝů ŝŶĨŽΛŵŝĐƌŽŶĞƚ͘ĐŽŵ͘ĂƵ͕ Žƌ ĐĂůů ϬϮ ϵϱϰϮ ϮϬϬϬ

FR.MARAPR12.PG028.pdf

Page

22/02/12,

11:18

Inspire|Franchise story

we’ve achieved this,” says Thame. But key to all this is how the business drives franchisee’s earnings. Thame reports a year to date growth of 12 percent with December and January hitting highs of 20 percent. With any significant change, the acceptance of franchisees – to embrace new looks, new methods, and their own investment in a project – is key. To sell the concept to franchisees, the management team took off around the country to see as many couriers as possible. Franchisees were also handed a USB key, to open an intranet promotion to get courier buy-in.

The rebrand “Online retailers say Fastway is an extension of their business so we need to represent the brand well,” says Thame. “A bolder, contemporary brand means people are more likely to work with it. It’s important to have a good look and feel. People need to feel comfortable with your

The cost to the franchisees was $600 for a rebrand package of van decal, uniforms and marketing material, achieved by working with overseas suppliers. New contemporary fabric designs sourced for uniforms had to be suitable for working in either Cairns or Launceston. Thame says this is a far more practical rebrand, because to couriers, uniforms and functionality are important. Business cards have smartphone-enabled QR codes; courier caps are designed to protect the face, allow visibility, and reflect the brand. Efficiency on one hand had to be matched by a friendly look, reemphasising the personal touch of the owner-operated courier network.

What next? Courier management technology will be on the web by March. The company has spent a year preparing for this: all

We wanted to evolve the brand to cut through new media and create a brand we want to be make; they need to feel that you’re taking care of their product.” Rebranding the courier vans that deliver 17 million products annually without losing business hours required serious logistics, and Fastway had 700 Australian and 500 New Zealand vans in new livery overnight.

systems will be on the cloud, and this will overcome the management challenge of each courier having their own data at their fingertips. It will allow for cheap, efficient analysis, promises Thame. “We don’t need people on-site to make changes but can manage data centrally.”

with

Clean UP a Jani-King

Commercial Cleaning

Franchise!

www.janiking.com.au 28 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

The new branding emphasises the friendly, personal touch of Fastway franchisees

The business has identified opportunities – through business expos – of ways to collaborate with other markets. There’s a focus on regions such as Wollongong, Albury and the NSW Central coast, where relocation incentives are giving a boost to business development. “We want to create dashboards for customers and to drive operational excellence. We will look at servicing the wine industry and print industry, both of which are rapidly moving online.” Thame says it’s about being a specialist in the last mile, the term used in the online delivery world for getting a product to the customer. “As a franchisor we should be putting more time back into the franchisee’s day. If we can help drive efficiency, that let’s them focus on relationships.” * The rebrand will be rolled out across Ireland and South Africa later this year. F

40 FOR

OVE

AD_FRCONJUL_11.pdf

Page

31/05/11,

12:45

:H DUH $XVWUDOLDQ RZQHG DQG VXSSRUWHG /RZ LQLWLDO LQYHVWPHQW Â± RZQ \RXU RZQ VWXGLR IRU DURXQG &RPSUHKHQVLYH 7UDLQLQJ 0XOWLSOH UHYHQXH VWUHDPV )L[HG PRQWKO\ UR\DOW\ PDUNHWLQJ FRQWULEXWLRQ VLPSOH EXVLQHVV PRGHO

FRQWRXUVIUDQFKLVH QHW DX

FR.MARAPR12.PG030.pdf

Page

22/02/12,

10:49

Opportunities|Coffee

BEAN

COUNTING A great coffee franchise is a perfect blend of beans and business. What starts with the coffee bean, the blend and the roasting ends with cost management, writes Sarah Stowe

30 | FRANCHISING MAR/APR 2012

ary Alford, head of strategy at Retail Food Group, which includes Donut King, Esquires Coffee Houses and Michel’s Patisserie in its portfolio, believes coffee in Australia is just beginning to hit its stride, particularly in the espresso and cafe market. “The last decade has seen the coffee market open up more and more to young teenagers. It is now becoming one of the social drinks of choice for this group. Today it is common to see 13 and 14 year olds calling into their favourite cafe on their way to school to pick up their latte or flat white. “This new wave of coffee drinkers will continue to push demand for coffee and coffee centric outlets. It means that the pool of coffee drinkers will WWW.FRANCHISE.NET.AU

be joined by younger members. It also means that the pool will expand at a rate never before witnessed in this country.” And with this will come heightened expectations, he suggests. “Only those who respect the demands of this new coffee consumer will prosper. The days of simply turning out ‘near enough is good enough’ are over.” Emmanuel Drivas, founder and director at The Coffee Club agrees. “There is massive potential for the coffee marketplace in Australia. With coffee consumption increasing year on year, those companies offering a good product and great service will be the winners.” At Cafe2U, the Australian-based mobile coffee delivery service that has gone international, managing director Derek Black believes coffee is a product that can be categorised as recession resistant. “Our experience

FR.MARAPR12.PG031.pdf

Page

22/02/12,

10:50

Coffee|Opportunities

Learn where to cut costs is that as coffee is a small personal reward, consumers tend to maintain their consumption habits. “Coffee green bean prices appear to have stabilised at the moment, and our alliance with our coffee roaster provides us with some degree of certainty as to price fluctuations over the coming months, within the bounds of a normal and reasonable price movement.” Yet while the coffee market appears healthy, it’s advisable for franchisees to maintain a stringent monitoring of their daily business, suggests Kenton Campbell, who founded Zarraffa’s Coffees 10 years ago. He says “Often when things are going well in the industry many businesses take for granted the market conditions and don’t use the breathing space to reduce their risk. Those who are doing well still need to look closely at their businesses,

especially their debt, cash flow and day-to-day operations as things may turn quickly and sooner or later factors such as competition and economics will have a huge impact.” What is Campbell’s advice? “Don’t take advantage of the opportunity that a strong coffee marketplace is giving us, don’t become complacent and always plan for a rainy day.”

Manage your costs Miki Caswell, national franchising manager at Gloria Jean’s Coffees, cites labour and product as the key controllable costs; rent is a fixed cost. “Franchisees can best manage their outgoings by using thorough budgets and forecasting sales for the following week. Planning and costing out rosters, controlled ordering of stock in line with the forecast and counting stock

Elissa Hutton and Bruce Fullerton are Zarraffa’s Coffee Franchisees of the Year. The brother and sister team have been franchisees for four and a Elissa Hutton and Bruce Fullerton half years. Elissa says franchising helps ease the initial challenge of working out costs. “When you get the disclosure document you can see how other stores are doing and you can draw on that. We set up some benchmarks from the very beginning and as we progress there is constant revision.” Elissa says there are always surprises in cost management. “You really need good insurance between you to protect your business; there is super, wages, awards, workers comp and merchant fees as well as bank costs.” Merchant fees can cost up to $5500 annually, Elissa says. “You can’t make the customer pay for what’s your responsibility,” she says, “so you have to make a decision about what else you can cut back on.” Coffee is at the heart of the business and bean prices have been going up steadily for the past year. But the price increases are not passed on to customers. “Coffee is what we do. We find cheaper napkins, spoons or cups instead. The franchisor is very good at doing that.”

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 31

FR.MARAPR12.PG032.pdf

Page

22/02/12,

10:51

Opportunities|Coffee

on a weekly basis is critical,” advises Caswell. “It’s also good practice to have procedures in place around the usage of other items, such as chemicals, cleaning cloths, stationary and the like. Train your team well so they know how to make everything to specification and do not generate unnecessary waste.” Gloria Jean’s Coffees provides training to each of its franchising partners as well as ongoing support. The operations managers provide coaching and business advice through profit and loss analysis and there are other tools at hand: rostering tools and stock taking spreadsheets.

Limited costs Xpresso Delight provides corporate coffee systems so franchisees do not bear the

burden of retail and labour costs; co-founder and director Stephen Spitz says “The key costs are the consumables which amount to an overall percentage of 30 percent; all other day to day costs are already an existing overhead that they have already. We assume they already have a car and computer to be able to work from a home base.” And when it comes to helping franchisees manage the costs, an online system will provide a return on investment figure weekly, based on the data they enter. “In the initial four weeks training we show them how to order online and in what quantities,” explains Spitz. “Our franchisees have very limited outgoing costs apart from the stock requirements. “For us it is very clear >> continues on page 35

Price and supply

Franchise & Commercial Lawyers

32 | FRANCHISING MAR/APR 2012

Gary Alford at Retail Food Group sees supply and price as dark clouds on the horizon for the coffee industry. Increased demand from the growing middle classes in China and India is putting unprecedented pressure on supply, he says. “If the demand trend continues it is likely that quality arabica and robusta beans will suffer supply stress in the next two to four years. Not only will there be concerns with h supply l matching h demand but where the latter equals or exceeds the former there is the inevitable pressure on price. “This price pressure is already causing a conundrum for many operators. The cost of doing business has increased substantially over the last year. “Coffee beans have been at historic highs, fuel prices are at near record levels and labour costs have also risen. This has meant the purchase price of coffee for the retailer has increased substantially and shows no sign of abating. Most operators have decided to absorb these cost increases. Clearly however this cannot continue ad infinitum. “Retailers will be forced to pass on these increases in the coming year. Those that do not will suffer margin erosion and inevitably closure.”

WWW.FRANCHISE.NET.AU

7EL1202Fran1237REV.pdf

Page

6/02/12,

7:19

AD_FRGEONOV_11.pdf

Page

18/10/11,

2:45

FR.MARAPR12.PG035.pdf

Page

22/02/12,

10:52

Coffee|Opportunities

For Cafe2U franchisees key costs are the consumables >> continues from page 32

and simple. As long as our franchisees focus on following our structured marketing system they can build up a very successful business, but based on our average franchisee they only have to work two days a week in managing it.”

Benchmarking Zarraffa’s Coffee franchisees work with their franchise support manager (FSM) and in benchmarking groups. Says CEO Kenton Campbell, “We are always in close contact with our franchisees and are in receipt of their profit and loss statements quarterly so that we understand what is happening with their costs. Should we need to assist and find ways to improve their costs, we may choose to undertake further training with the franchisees and staff. Sometimes

it is as simple as reducing wastage in store or changing their marketing strategies to increase customers.”

Negotiated supplies Cafe2U franchisees can manage their costs by using approved suppliers with whom the franchisor has negotiated significant purchasing discounts. This includes core range items (coffee beans, milk, drinking chocolate) and ancillary items such as food, cups and sugar. For this mobile franchise network there is also a negotiated rate with a national petrol brand and a national generator servicing company. Negotiated and regular product supply agreements reduce the need for franchisees to maintain high stock levels. Derek Black says “All our franchise “ partners operate in p slightly different s environments, with the major cost differential being the amount of driving they are involved in each day. If a franchisee fully embraces the core product range and

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

MAR/APR 2012 FRANCHISING | 35

FR.MARAPR12.PG036.pdf

Page

22/02/12,

10:53

Opportunities|Coffee

Monthly checklist An award winning franchisee in her first year, Stacey Brindlay invested in a Coffee & Go mobile franchise from Xpresso Delight already armed with some experience of running a company. “I knew what it took and how much effort to put into it to make it successful,” she says. So when it came to managing her costs, Stacey was organised. “I’ve worked out what I need on a monthly basis, what to order and pay. I pay at the start of each month. I include my monthly franchise fee and my loan.” The mobile operation is a weekday business but Stacey adds in occasional weekend work. “I work out my costs on a Monday to Friday so weekends are a bonus. “The costs are really reasonable and how it is explained upfront is pretty bang on. I’ve added ingredients for more variety, I sell hot drinks but I don’t do food, it can be a financial trap.” Franchisees are supplied coffee in easy-to-use pods so they can serve fast and efficiently, increasing sales, says Stacey.

preferred supplier offerings then the only cost variable without detriment to the business model is fuel.”

Streamlined Founded in Vancouver in 1993, Esquires Coffee Houses has grown internationally with a presence in Saudi Arabia, the UK, Abu Dhabi, China, Fiji, New Zealand – and now Australia, under the Retail Food Group umbrella. There are 47 outlets currently operating within NZ; one store is operating within NSW and there are plans for further expansion throughout 2012.

The company strongly supports organic fairtrade practices and social responsibility; stores are in premium locations with free WiFi. How can franchisees best manage their outgoings? The Esquires Coffee House system has been streamlined for maximum efficiency so most food is bought in (minimising food preparation) and the emphasis is on the profit opportunities in coffee and cold beverage sales. A barista is in every store working with well-maintained machinery; a coffee bump screen

Michel’s Patisserie TYPICAL COST BREAKDOWN Cost of goods: 38% Gross profit: 62% Labour: 17.6% Total variable costs: 10% Total fixed costs: 15.41% Other operating costs: 5.6% 2011 Michel’s Patisserie Disclosure Document

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.

V5962

Live the lifestyle you want

36 | FRANCHISING MAR/APR 2012

13 2613

Call us on or visit www.vipfranchisesales.com.au WWW.FRANCHISE.NET.AU

AD_FRNKASEP_11.pdf AD_ F RNAGS E P _ 1 1 . p d f

Page Pa ge

1 1

15/08/11, 1 1 / 0 7 / 1 1 ,

9:32 4 : 4 5

AM PM

Search Engine Optimisation

www.NKAunleashed.com

info@NKAunleashed.com

FR.MARAPR12.PG038.pdf

Page

22/02/12,

10:55

Opportunities|Coffee

minimises ordering errors and quickens the order process. In common with other franchise chains, a business development manager (BDM) will assist franchisees with their ongoing business. At Esquires the BDMs have extensive knowledge in food retail and general small business practices. Faith Manning, national sales and leasing co-ordination manager at Retail Food Group, says “Annually, the BDM, in conjunction with the franchisee, undergoes a number of reviews to

Jump into bed with Bedshed

THE PACKAGES Gloria Jean’s Coffees Turnkey cost: $250,000 to $400,000 Ongoing fees: Royalty 6%; 2% marketing levy Training costs: $13,500 for five weeks training Working capital: $30,000 to $50,000, depending on store size and location Key costs: Labour and product are controllable, rent is fixed

Franchise opportunities now available. Are you looking for a franchise opportunity that offers independence combined with support from an experienced management team and a business formula that has proven successful time and time again? Over the last 30 years, Bedshed has established itself as one of Australia’s most successful and proﬁtable specialist bedding retailers, with a network of 40 stores nationally.

Xpresso Delight Turnkey cost: Corporate coffee model $69,400 in Australia; $74,400 in NZ Ongoing fees: $25 per system per month flat fee. Training costs: Included in the total price is $5000 for an intensive four-week training program Working capital: All consumables for the first month of operation are included in the turnkey cost Key costs: consumables (about 30%), existing overheads

Bedshed franchisee partners enjoy a host of beneﬁts, including: • Excellent income and capital appreciation potential. • A national advertising and marketing program. • Ongoing support and training from an experienced management team. • Input into selecting Bedshed’s best-selling range of leading brands and exclusive products. • And most importantly, the ﬂexibility to choose your desired lifestyle.

bedshed.com.au

38 | FRANCHISING MAR/APR 2012

Turnkey cost: From $400,000 for a standard store and from $550,000 for a drive-through store Ongoing fees: Royalties are 7% of gross turnover; marketing levies are 3% of gross turnover Training costs: These are included Working capital: Approximately $50,000 Key costs: Rent, COGS, wages, utilities

BED19420

Please contact our Business Development Manager, Rod Parker on 0419 494 480 or rparker@bedshed.com.au for a conﬁdential discussion

Zarraffa’s

Esquires Coffee Houses Turnkey cost: $200,000 to $400,000 + GST (including new store build – all new equipment, plans and drawings, council fees and initial franchise,

WWW.FRANCHISE.NET.AU

determine opportunity in increasing the stores’ sales and profit margins. Business planning sessions play an essential part in assisting our franchisees towards meeting their goals.”

Best practice An established Retail Food Group brand is Michel’s Patisserie. Manning says “We provide templates that assist franchisees to compare the financial results against system averages. These tools also allow hypothetical changes to be made so that

training and marketing fees) Ongoing fees: Franchise service fees 7%; marketing 3% Training costs: Included in turnkey cost Working capital: $15,000 Key costs: Not yet available

Michel’s Patisserie Turnkey cost: From $325,000 to $345,000 (including new store build – all new equipment, plans and drawings, council fees and initial franchise, training and marketing fees) Ongoing fees: Franchise service fees 7%; marketing 3% Training costs: Included in turnkey cost Working capital: $15,000 Key costs: See break-out box (p35)

The Coffee Club Turnkey cost: $450,000 to $550,000 depending on site and style of store Ongoing fees: Franchise fee 6% of weekly sales; marketing fee 3% of weekly sales Training costs: Included in turnkey cost Working capital: $60,000 Key costs: Employment, COGS, rent

Cafe2U Turnkey cost: $129,600 + GST Ongoing fees: Set weekly fee of $170 + GST and marketing fee of $26 + GST Training costs: Four week training for two people is included in turnkey cost Working capital: About $500. The Acceleration Package includes a $500 a day revenue guarantee for two weeks and initial stock order is included in turnkey price Key costs: Product, petrol, vehicle and equipment service, vehicle lease or financing and weekly franchise fees

FR.MARAPR12.PG039.pdf

Page

22/02/12,

10:56

Coffee|Opportunities

Tony Alloca, The Coffee Club Wastage was a big component of costs in Tony’s first six months with The Coffee Club. But he brought that into line, while building a team he can rely on: his two key elements of cost management. “I’ve been in hospitality about 30 years though this was the first time I have been involved in franchising in a café. For me the key to managing costs is being handson and watching what goes on. “Wastage is targeted because our margins are

good, but you can lose them if there are too many wages or wastage. The franchisor keeps the prices competitive and we’ve gone from 31 percent costs to 24.6 percent. “I recruit for personality and getting the mix right. I want people to have fun. I don’t pressure the team and they respect the product and they manage themselves. “We share our results with staff, and there’s a big drive for them to compete against each other.”

BRW hises Fast Franc

, 2011) (2009, 2010 s fastest – Australia’ nchise fra g win gro

t Investor AFR Smar– Australia’s (Dec 2009) nchise

best value fra

an Golden Belusive r – exc

Winne nd Cafe2U ble

the impact of making slight changes to outgoings can be seen over a selected financial period. We also like to highlight specific best practice of our highest performing stores. “Our business development managers are able to assist in putting plans into place in accordance with improving and working on cost control measures such as COGS and labour. This is in part achieved by sharing experiences from other stores and franchisees.”

Two pronged attack Keeping costs down is a twofold activity for franchisees in The Coffee Club network, founder and director Emmanuel Drivas says. “The key to active management of these areas is in both the generation of sales and by maintaining an active awareness of the key performance areas of your business. The scorecard for these areas is the franchisees’ monthly profit and loss statement, along with supporting financial statements. “At The Coffee Club, we complete several programs to assist franchisees in cost management and aim to highlight areas of opportunity.” Tools for franchisees include business development reviews, rostering templates, inventory management systems, progress reports, mystery shopper programs, in-store training gap assessments, setting annual business goals by month, local area marketing plans, shift management or daily business planning and financial and marketing reviews. F WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 39

FR.MARAPR12.PG040.pdf

Page

21/02/12,

3:35

Opportunities|Cleaning

A professional approach to business and reliable operating systems are at the heart of a good franchise model, and the cleaning sector is no different, reports Sarah Stowe

A POLISHED

ACT F

ranchisees need to bring a professional attitude to their commercial venture to ensure it succeeds. In turn, they can expect a high level of support and proficiency from their franchisor. Here three cleaning franchise systems reveal their approach to running a high quality service business.

Keen to Clean Brijesh Purohit, managing director We feel that taking a holistic approach is necessary, allowing individuals to go about their tasks in the ways that suit them whilst also having predefined protocols for any contingencies. There is no such thing as ‘too much planning’. Ultimately, though, as a service based industry we have to place our focus squarely on the benefits we can offer our customers. All formal business procedures should be in place with a definable positive impact on the way we interact with or provide for our customers. What professional/business skills do you expect of an incoming franchisee? Typically we place more emphasis on identifying people with potential than skills, as we feel the latter can be taught. The ability to be organised, self-motivated and efficient is integral, however it is also important franchisees be willing to learn and follow the system. At the end of the day hard workers are what this industry needs. Managerial experience and 40 | FRANCHISING MAR/APR 2012

FRANCHISE FACTS A franchise starts from $25,700 + GST, ongoing marketing fees and royalties are fixed and depend upon the option chosen. A term is five years plus four further five-year options bookkeeping never go astray, of course, and we aim to make sure those lacking in more traditional business skills are taught them as soon as possible. What’s a typical day for a franchisee? Schedules usually start around 8:30am. Cleaning varies depending on the day, client, and franchise type, but will typically finish around 5pm. During the day, typically between jobs, franchisees will undertake a marketing exercise [often leaflet drops in the vicinity of a cleaning job that day]. Hard copy invoices are then processed and filed and all sales and transactions are logged into Quickbooks. Booking details for the next day will be received early evening and franchisees WWW.FRANCHISE.NET.AU

will organise their schedules for the next day. Then it’s leisure time. How do franchisees source new clients? Inquiries are handled and booked by the head office team who allocate the jobs with a focus on minimal travel time and equivalent income for each of the franchisees. Although the head office runs most major marketing campaigns all franchisees are obliged to undertake marketing training and to market within their franchise region. What admin support is provided? The franchisees are offered support in nearly every element. Job bookings and most advertising initiatives are handled by head office; this allows franchisees to focus on providing a service, and on their accounts. The accounting manager provides bookkeeping support for franchisees and periodic training sessions. The manager helps franchisees develop and maintain sensible business plans. How computerised is the network? All bookings are organised and dispersed via email. Operators are required to own laptops and smart phones capable of receiving and sending emails. Invoicing is officially logged via accounting software Quickbooks, but hard copy receipts are still provided in all bookings. To further the technological interactivity of our system we are also implementing a new

AD_FREURNOV_11.pdf

Page

22/09/11,

4:07

FR.MARAPR12.PG042.pdf

Page

21/02/12,

3:34

Opportunities|Cleaning

intranet system that will allow operators to view bookings and alter their schedule in real time. Mentoring for new franchisees Mentoring forms the cornerstone of all new franchises. The managers of the head office are all former cleaners and developed the cleaning protocols of the company, offering mentoring in every aspect of cleaning practice. Accounting mentors and experts periodically run training and refresher courses on keeping books and advancements in software like Quickbooks. Business mentors, lawyers and franchise advisors are present for many group meetings offering professional advice and coaching.

The Duster Dollies Julie Finch-Scally, franchisor The aim of any business is to make a profit. Quite often the first year runs at a loss but our system is set up to turn that into profit by the second year. Cash flow is the most important part of running any business. Because the cleaning industry is a cash business the income is dependent on the number of hours worked each week; the more hours the greater the income. We set up the system for achievable growth goals. What professional/business skills do you expect of an incoming franchisee? As most franchisees donâ&#x20AC;&#x2122;t come from a business background they need to have all the details on how their franchise

The Duster Dollies is a booking agency for cleaning services

FRANCHISE FACTS The franchise term is five years with an option to renew for a further five-year term. The franchise cost is $22,500 plus GST and there are ongoing marketing fees and royalties: marketing is 2.5% and royalty 7.5% of income, charged on a monthly basis should operate. We train our new franchisees how to clean using The Duster Dollies cleaning system as well as how to run the business. Should the new franchisee have organisational skills they will find our business easy to operate. Whatâ&#x20AC;&#x2122;s a typical day for a franchisee? The Duster Dollies is a booking agency for cleaning services so a franchisee needs to communicate with customers and contract cleaners: times have to be allocated for conducting quotes, usually between 3 and 5pm when people can get home to show us around; cleaner sched-

ules need to be checked on our computer scheduling system and the cleaner texted the details for the first clean. The Duster Dollies franchisee goes along to the property on the first clean to introduce the cleaner to the home. On Fridays the franchisee invoices the cleaners for their agency fee. Free time during the week can be used to enter accounts into MYOB, our accounting system. The Duster Dollies franchise is a 9 to 5, Monday to Friday operation. All our franchisees have spare time to look after children or take a long lunch with a friend. How do you source new clients? Everyone wants a cleaner and there are not enough in the business. Advertising in the Local Yellow Pages generates calls, and we advertise in local papers and drop off brochures into letterboxes. We also have signage on our cars and many people come via our website. We find with these promotions we can keep on top of the number of new clean requests. What admin support is provided? Should there be a problem with either the cleaning or the system our franchisees either email or ring head office and talk with the franchisor. What account certain bills need to be allocated in MYOB seems to be the most frequent question. How computerised is the network? The Duster Dollies has its own scheduling system. This and MYOB are activated

a sKids Franchisee is an amazing experience. Our Â¸ Being structured program is embraced by the kids, teachers, parents - the whole community! Head OfďŹ ce provide above and beyond support. So much so, it has given me more conďŹ dence and my second school is open!

Âš

Matthew Hine, sKids Australia Casey and Cardinia Franchisee

Work in your community - Low entry cost - No retail rents - Immediate income

Safe Kids In Daily Supervision

42 | FRANCHISING MAR/APR 2012

[[[ WOMHWEYWXVEPME GSQ EY

0M `V\ [VV ^V\SK SPRL [V ^VYR ^P[O JOPSKYLU HUK PUKLWLUKLU[S` V^U HUK VWLYH[L `V\Y V^U Z2PKZ 6\[ VM :JOVVS /V\YZ *HYL 6:/* MYHUJOPZL [OLU JHSS [OL H^HYK ^PUUPUN [LHT H[ Z2PKZ VU

WWW.FRANCHISE.NET.AU

^VYRPUN ^P[O!

AD_FRSUBJUL_11.pdf

Page

31/05/11,

2:54

FR.MARAPR12.PG044.pdf

Page

22/02/12,

11:40

Opportunities|Cleaning Wisewoulds Franchising - ver 4.ai 1 11/16/2011 12:26:59 PM

Wisewould Mahony Lawyers Lawyers in love...... with Franchising

FRANCHISE SPECIALISTS WITH Industry Knowledge

Ben Stoltz

Call for a complimentary guide to Franchising:

via a stand-alone computer not connected to the Internet. As part of our system generic letters and forms sit on the computer for easy access.

Dispute Resolution, Mediation/Solutions & Strategies

Mentoring for new franchisees All our new franchisees sit in with an operating franchise for at least a week and prepare to open their own business. The franchisor sets up the system and helps them take on contractor cleaners and jobs. If required the franchisor will be around to assist for a further week. Most new franchisees find they can handle the requirements of the business after the first week of operation; they only come back to the franchisor to update and clarify certain details.

Franchisee reports and assessments Master Franchisee agreements International Franchising Employment Law & Workplace Relations

Fixed fee service to Franchisors and Franchisees based on scope of work

FCA Member IFLA Member

(International Franchise Lawyers Association)

FANZ Member

(Franchise Association of New Zealand)

Accredited Business Law Specialists Contact: Robert Toth t: +61 3 9612 7297 e: robert.toth@wisemah.com.au 44 | FRANCHISING MAR/APR 2012

Jani-King Commercial Cleaning Ben Stoltz, managing director A professional approach to running a business requires a trained person who has both the knowledge to perform all relevant tasks to a high standard and the capacity to execute such work systematically and in accordance with a well-prepared program. A professional approach also involves good presentation and communication and the capability of showing up to perform a task with world-class knowledge, skills and the appropriate equipment. What professional/business skills do you expect of an incoming franchisee? It depends on the franchisee’s aspirations. If the franchisee wants a large operation ($20,000+ per month) then he or she should have a basic knowledge of recruitment, staff training, and administrative and accounting skills. For franchisees intending to operate a smaller franchise (servicing clients up to $10,000 per month with the assistance of family members or associates) no particular professional or business skills are required. However, what is important in every instance is that the franchisee has a good work ethic, a ‘can do’ attitude, a willingness to learn and operate in a systematic way. Good basic communication skills are important too. What’s a typical day for a franchisee? Most franchisees start servicing their customers in the late afternoon and often work through to midnight. The franchisee

WWW.FRANCHISE.NET.AU

FR.MARAPR12.PG045.pdf

Page

21/02/12,

3:33

Cleaning|Opportunities

will start by checking the roster for the day and week ahead, may order cleaning chemicals and equipment and if cleaning staff are employed, phone to ensure they are available to work. Franchisees typically work on one or two of their cleaning sites either with or without an employee. If there are new employees, the franchisee works with them and carries out on-thejob training. Finally, sites are inspected for quality control. On a day-to-day basis, where employees are involved, the franchisee will complete rosters for those employees and record their hours for payroll purposes.

office and a telephone answering service, use of a boardroom, brochures and business cards. Franchisees receive a detailed monthly report that totals all income and expenditure (payroll excluded) and calculates the monthly payment owed to the franchisee. JaniKing also provides debt collection assistance.

FRANCHISE FACTS

How do franchisees source new clients? Franchisees can use Jani-King finder’s fee program or approach new customers themselves. A hybrid of these two forms is where the franchisee will obtain leads and Jani-King follows them up through our telemarketer and sales teams.

The turnkey cost of the franchise depends on the dollar value of initial customers sought by the franchisee. The typical cost of a franchise licence is $16,000 plus 3.3 times the monthly dollar value of initial customers. A typical franchise (say with $5,000 per month in initial customers) is about $33,000. Each franchisee is also required to invest in a Start-Up Kit that costs $4,500. Jani-King does not operate a marketing fund but the finder’s fees are 3.3 times the monthly billing amount of the customer and can be paid in instalments. In addition, franchisees pay an administration fee of 4%. Royalties are 10% of the franchisee’s gross monthly billing. The term of the agreement is 10 years and it can be renewed; the current renewal fee is about $1,300

What admin support is provided? Admin support includes the preparation of the monthly franchisee report, assistance with price calculation, the provision of sales proposals and on-going technical

support, as well as help with client communication and quality control. There is also assistance with working capital and cash flow. Franchisees have access to a regional

How computerised is the network? Franchisees can communicate with each other and download their monthly franchise reports through the website and Intranet. Reports on quality control inspections are automatically uploaded into the network and emailed to the franchisee. Monthly payments are made electronically and directly into a franchisee’s bank account. Mentoring for new franchisees All new franchisees complete Jani-King’s initial training program that covers all aspects of cleaning from client communication to the cleaning of hard floors, windows, carpets, rest rooms, offices and more. A regional operations personnel member will be on site when the franchisee starts their first account. F

Be part of the SUCCESS Opportunity to create your own successful business as a licensee for the market leading brand LUXAFLEX® Window Fashions

po p owe werf werf rful full

marketing

• Run your own business with the support of a proven program • Security of having the world’s leading window covering business behind you • Extensive consumer advertising and marketing program to drive your business

winn wi nniiin nn ng

i sp in pirring iin ng

team

showroom

• Large collection of business, marketing, web & training resource tools • Training provided, window coverings experience not required • Industry leading showrooms, custom designed for your location

• No inventory holding, fully made to measure products • Prime marketing territories nationwide in city & regional areas • Join the winning team of over 70 LUXAFLEX® Galleries nationwide

To ﬁnd out more about becoming a LUXAFLEX® Gallery dealer contact Mark Futeran on 02 9638 8000 or email: mark.futeran@hunterdouglas.com.au www.luxaﬂex.com.au © Copyright 2012 Hunter Douglas Limited [ABN 98 009 675 709] ® Registered Trade Marks of Hunter Douglas Limited. C10818_03.2012

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 45

AD_FRTFS1MAR_12.pdf

Page

13/02/12,

10:58

REASONS TTO O CONTACTT THE T TH FRANCH HISE SSHOP SH HOP FRANCHISE TTODAY: TODAY AY:

1300 139 557

Adore Tea

Cashmart

Pro Pit Services

? F @ 8 $ ' + $ @

B 8 ' ) ! operate franchises in this constantly

8 < ) & ' ! '

= @

The Ironing Elf

Games 2 U

Cappuccino Xpress

The modern world is all about convenience. The * ; ! ! ! H @ themselves. Excellent new business.

Mobile theatre and entertainment franchise F H K P ) + + F

" # $ % ! & $ ' ! ! ( ) %*# + (, -/2-

Jims Electrical

The e Team

UK Central

Newly formed service to The Jims Group. This electrical trade opportunity is available Contractor license required.

* QU; V ) hours from their own home.

;) H I> ' ' ' 4 K

made by you Kubarz

Sergios Cake Shop

H ! 8 ! ! ! type of private or corporate event.

4 6 8 # 4 ! ;) 4 ' required.

www.thefranchiseshop.com.au

AD_FRTFS2MAR_12.pdf

Page

13/02/12,

11:09

1 EXPERIENCE EXP X ERIEENCE XPE E

(

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

AN ND D EX XP PERTISE AND EXPERTISE

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

BKâ&#x20AC;&#x2122;s

Abode Design and Construct

Keen to Clean ea

7 8 / ! 0 0 0 8 & 9 # "

! "

())* + investment levels to suit everyone. , %

Urban Burger

Taste of Europe

> " = 0 " ! D > " "

- / 0 " / 0 " ! / 0 2 4 5 " & 4 6

Grasshopper Soccer

Marrs

< 7 0 " 0 ! "

# venture with a Grasshopper Soccer franchise. No soccer experience required.

: *( 0 ! ! industry Marrs 0 ! + / ; individuals.

Snorepro # # " $ % # &# "

EnSalada - + = 0 ! / A # 0 "0 < / # " & BC

Duster Dollies & " / 0 0 8 # " 0 / # ! @ 6

Enquire NOW!

1300 139 557

Let us complete the next piece of your puzzle...

FR.MARAPR12.PG048.pdf

Page

21/02/12,

12:00

Opportunities|Working with children

Love kids? If you’re passionate about working with children then investing in a franchise with kids at the core can be a rewarding career move, writes Stephanie McDonald

LITTLE PEOPLE, BIG HEARTS

BIG PROSPECTS A

number of Australian child-focused franchises have their origins overseas, which provides a proven track record of success and an established business model.

JO JINGLES Jo Jingles began in the UK and now has more than 95 franchisees, with the first Australian

franchises over the next three to four years. It offers music, singing and movement classes to children under school age in daycare centres, crèches, kindergartens and special needs schools and party entertainment and audio products. Based on the school calendar and operating within school times, the key to Jo Jingles’

One franchisee developed the business to a point of almost being profitable before they began their training. Some franchisees also begin on a part-time basis to eventually run the business full-time franchisee launched in North Perth in November 2010. A second franchise was due to open in February 2012 in Bunbury, WA, with a target of 10 to 12 further 48 | FRANCHISING MAR/APR 2012

success so far has been positive word of mouth, according to managing director Gill Thomas – parents are able to see how quickly children can benefit from

WWW.FRANCHISE.NET.AU

listening to the music. “Parents want activities that are enjoyable for them and their children, but at the same time help to develop speech and language skills, social skills amongst their peers and build their children’s confidence,” Thomas says. The ideal franchisee at Jo Jingles needs to have a strong interest in music and singing. A love for working with children is a must and franchisees need to also have an interest in children’s development and education as they have very much a hands-on role. Franchisees also need the drive to develop the business. “Franchising will not suit people who do not want to follow a set and proven system. It will only work for people who are prepared to put a lot of effort and commitment into it for a

FR.MARAPR12.PG049.pdf

Page

21/02/12,

12:00

Working with children|Opportunities

period of at least five years,” Thomas says. For a sub unit franchise, initial training is carried out over five days, mainly about the theoretical side of the business. Ongoing practical training takes place over an intensive five-day period and continued support is provided over the first year of the franchise. Training for a master franchisee license is longer and involves attending a training course in the UK or potentially Singapore, where there are plans to run Jo Jingles in the future. Thomas says it can take a year for franchisees to build their business, so they need to be aware of financial constraints for the first year of operation. However, “If their business takes off quickly, it can be overwhelming trying to deal with the level of demand and run and manage the business,” Thomas says.

SKIDS Safe Kids in Daily Supervision (sKids) is a franchise established in 1996 in New Zealand. It provides before and after school care and holiday programs onsite at primary schools.

There are now two franchises in Australia that launched in 2011. Vicki Prout, managing director at sKids, is hoping this number will grow to 15 by June this year. Prout says sKids franchisees must love children and be caring, nurturing and want to teach. However, it’s not essential for franchisees to have their own children – sKids’ first franchisee was a 21 year-old male with no children. “He’s assertive but kind and has the communication skills to talk to a parent if they’re upset or concerned about an issue, [he can be] the teacher, but also, more importantly, he is a friend of the children,” Prout says. In fact, Prout says potential franchisees with children of their own need to consider how a business might impact on their own family. Ultimately, they also need to be committed to helping other people’s children. “It’s not like fast food where at the end of the day you can make a bad sandwich and it’s not going to affect you that much. You cannot have a bad day in our business because it’s affecting [people],” Prout says.

A love for children is the most important aspect of running a sKids franchise, business acumen can always be learnt. “We’re looking for the yin to our yang. We’re the yang – we’re the business expertise and we’re looking for that yin that’s just going to say “right, I love working with children, I love assisting in their development, I love entertaining them, I love giving them structure and I love being a role model. It’s so important for children to have a positive influence and role model around them,” Prout says. National qualifications are required for sKids franchises, with each state and territory around Australia requiring different qualifications. sKids Australia encourages franchisees to participate in continual professional development courses which are held regularly at Registered

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 49

FR.MARAPR12.PG050.pdf

Page

21/02/12,

12:00

Opportunities|Working with children

A love for kids is more important than business acumen at sKids

Training Organisations throughout Australia and cover a wide variety of topic. Like any business, there are challenges, with over-caring the main one; franchisees can forget they are running a commercial operation. “At the end of the day, it’s a business and you have to step back a little bit. You’re providing a 100 percent service, but it’s just being able to remember that we are here to build a business,” Prout says. On an ongoing basis, franchisees will face the challenge of how to manage multiple school sites. Once a sKids program is in place and running successfully, franchisees can be seconded to another school to establish another program. This means franchisees will have to be adept at managing several school sites and this is where business skills will be important. Community ties are also

It’s not like fast food where at the end of the day you can make a bad sandwich and it’s not going to affect you that much. You cannot have a bad day in our business because it’s affecting people important at sKids, which encourages franchisees to buy local fresh fruit for the children. However, being a strong communicator across several levels is imperative. “So the key elements that I look for for our franchisees are

Per Month 1

over 24 months. Min cost $1,200

ANDROID™

50 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

AD_FROPOJAN_12.pdf

Page

1 2/12/11,

11:56

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

2/12/11 9:29 AM

FR.MARAPR12.PG052.pdf

Page

21/02/12,

12:00

Opportunities|Working with children

that they are good communicators on all those levels – and engage. It’s not just saying the words, but that they can engage with parents, children and the community.”

YOGABUGS YogaBugs Australia was also established in the UK 13 years ago and launched in Australia in August 2010. The UK business now has around 10,000 children a week doing the YogaBugs program. Since its launch in Australia, the business has grown to 12 franchises. The YogaBugs program has been designed for children aged from two and a half years to 12 years. Instead of teaching yoga

like adult classes, children are guided through an “interactive adventure story” where

Parents want activities that are enjoyable for them and their children, but at the same time help to develop speech and language skills, social skills amongst their peers and build their children’s confidence

52 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

yoga exercises and breathing techniques are taught. “We call it yoga by stealth. The children don’t actually know that they’re doing yoga … and what we’re finding is because the postures are so simple and still, it’s the sort of thing that they can do after a class as well,” says Rob Connelly, managing director at YogaBugs Australia.

FR.MARAPR12.PG053.pdf

Page

21/02/12,

12:00

Working with children|Opportunities

It’s so important for children to have a positive influence and role model around them While a passion for yoga might come in handy (and two yoga-loving franchisees have come to the system without a business background), Connelly’s preference is to take on franchisees offering business skills; franchisees commonly engage teachers to deliver classes. “The reality is that what you need to do is have a reasonably good business mind. People who want to start their own business probably already have that anyway, but good sales and

marketing skills are good [to have],” Connelly says. Initially, a two-day course is conducted on business training, which is followed up by on-site training. Although franchisees employ yoga teachers, they undertake teacher training for between two and four days, depending on personal preference. One of the main challenges for franchisees will be in the first three months of operation, according to Connelly, as this will be the period when action plans are developed. This means franchisees will need a certain level of working capital while the business is being developed. But this will not always be the rule. Connelly says one franchisee developed the business to a point of almost being profitable before they began their training. Some franchisees also begin on a parttime basis to eventually run the business full-time.

The reward for Connelly is clear. He says one parent called to say her autistic son could sit for 30 minutes after a YogaBugs class and read a book. “She said … she’s never seen it happen before and she just rang me to thank me for bringing the program into Australia,” Connelly says. “That’s what makes it worthwhile.” F

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 53

AD_FRGAMMAR_12.pdf

Page

16/02/12,

4:15

We bring the fun says it all, that is what a Games2U Franchisee will experience. Every time you go to work, you are the PARTY!

Be in business in 90 Days

G Games2u iis a very attractive tt ti FFranchise hi opportunity t it • Low startup • Minimal overheads • Don’t work 9 to 5 • No site selection • Very easy to operate • Have fun • No lease • Very low staff cost • Play games • Be the life of the party With Games2u work is not work, it’s FUN

For more information: www.games2u.com.au www.facebook.com/games2uaustralia

Ph: 4648 4440

FR.MARAPR12.PG055.pdf

Page

21/02/12,

2:19

Mortgage broking|Opportunities

Helping people to purchase the home of their dreams can be good for the soul. For the right person, it can also be good for the bank balance, writes Domini Stuart

BROKING

THE DEAL “

In the nineties, specialist mortgage providers began to challenge the banks’ stranglehold on mortgages,” says Patrick Marion, managing director of Citiwide. “That made home loans more competitive, but it also made it harder to choose between them. As a mortgage broker, you help your clients find and negotiate the best mortgage deal for their needs.” RAMS is typical of the mortgage providers that helped to change the face of the Australian home loan industry. “Our innovative range includes transactional home loans, support programs for first home buyers and home loans for the self-employed and investors,” says Huw Bough, general manager, franchise business. Add the choices between fixed and variable rates and a huge number of optional features

and extras and it’s no surprise that more than 40 percent of mortgages are currently being written by independent brokers. While Citiwide is a relative newcomer to franchising, the business started in 1988.

While the bulk of my work is home loans, having a diversified income stream adds an extra layer of security “We currently have 14 brokers, including three franchisees,” says Marion. “Our franchise model was set up in 2009 but it’s only now that we’re ready to launch it in a more public way. “We’re looking for franchisees who are dynamic, focused on great customer service and have good WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 55

FR.MARAPR12.PG056.pdf

Page

22/02/12,

11:24

Opportunities|Mortgage broking

Laylor. “I think Citiwide would be particularly attractive to people who are good at marketing and don’t want to get bogged down with paperwork.” A financial background might provide a head start, though a sales or marketing background would be more valuable. “Most important is a passion for getting people into homes with the right loans,” Laylor adds.

Mortgage Choice Established: 1992, began franchising in 1994 Number of franchises: 358 Investment: $34,000 + GST for regional franchises, $44,000 + GST for metro franchises

networking skills. A mind for numbers also helps. “Our first recruitment campaign will target middle management bankers who would like a safe transition to being self-employed and also corporate mums who are ready to come back into the workforce. Our model offers flexibility plus excellent work and life balance for anyone with a young family.”

Fire in the belly Mortgage Choice is one of Australia’s most familiar and successful industry brands with 368 franchises across every state and territory. The company was established in 1992, began franchising in 1994 and was listed on the Australian Stock Exchange in 2004. “We look for self-motivated, well-networked people who have

As we’re referrers and not brokers our franchisees don’t get involved in paperwork or compliance. Our franchisees have more time to focus on acquiring customers, so good marketing is key Citiwide also offers substantial back office support. “The total loan support system takes care of all of the tracking, so I’m free to write more new business,” says franchisee Shane

56 | FRANCHISING MAR/APR 2012

a passion for making Australians’ financial and property dreams come true,” says company spokesperson Belinda Williamson. “Our ideal franchisees have a fire in the belly driving them to

WWW.FRANCHISE.NET.AU

develop a successful business plus a strong commitment to customer service; the relationship they have with their clients can last for life.” The majority of Mortgage Choice brokers do not have a financial services background. “Many of our new franchise owners have experience in sales, while others have worked as everything from butchers, bakers and footballers to radio DJs,” continues Williamson. “Our professional development opportunities and ongoing training ensure that all of our franchise owners are licensed, accredited, trained and knowledgeable professionals with up-to-date skills.” Rob Lees bought a franchise in Blaxland, NSW in September 2009 and, two years later, won the Mortgage Choice Rookie of the Year Business Excellence Award. More recently, he bought a second franchise in partnership with a friend. “Anyone in business needs a few basic characteristics – things like a positive attitude, willingness to work hard and a sound business plan are essential,” he says. “But I also think it’s important to understand your strengths and weaknesses. For instance, I’m very much a people person so I

AD_FRLOLJAN_12.pdf

Page

29/11/11,

9:26

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

LP_30915_Reed_Press_AD_REVA.indd 1

23/11/11 4:42 PM

AD_FREMBMAR_12.pdf

Page

7/02/12,

3:46

START YOUR OWN BUSINESS

LOCATIONS NATIONALLY EMBROIDERY - SCREEN PRINTING - PROMOTIONAL PRODUCTS - PERSONALIZED GIFTS

For Franchise Information Call:

02 9807 2022 www.embroidme.com.au

Nearly 400 stores worldwide and growing! Complete turn-key operation Extensive training and ongoing support National Advertising Low Initial Investment ad evan.indd 2

2/6/2012 2:40:29 PM

FR.MARAPR12.PG059.pdf

Page

21/02/12,

2:19

Mortgage broking|Opportunities

make sure I have others in my team who are task orientated and very good administrators. That leaves me free to focus on what I do best.” Like many other franchisees, Lees was initially attracted to Mortgage Choice by the strength of the brand. He also enjoys the flexible working hours, access to leading-edge cloud computing which allows him to work from any location and the fact that the 26-strong panel of lenders provides a wide range of loan options for borrowers. “The company has also broadened its offering to include commercial loans, personal loans and asset finance as well as risk and general insurance products,” he adds. “While the bulk of my work is home loans, having a diversified income stream adds an extra layer of security.” Mortgage Choice pays franchisees the same commission rate for all home loans and lenders. “We believe this approach is unique in the industry,” says Williamson. “It greatly benefits our franchise network and also our customers, who can enjoy the peace of mind of knowing their broker’s loan decisions are based on the customer’s best interests.”

Referrals and refunds Robert Graham once ran the broker channels of Westpac and ANZ yet, when he had a chance to enter the mortgage market, he decided to base his business on a different model.

Refunds Direct Established: 2010 Number of franchises: One Investment: $9500 to $29,000 + GST

Citiwide Established: 1988, franchised in 2009 Number of franchises: Three Investment: $19,000 to $29,000 + GST

“We’re referrers rather than brokers,” he explains. “We help customers select the three best lenders for their objectives and then introduce them directly to the right people. The lenders are aware that they’re competing with two others so they immediately put their best offer on the table. That means our customers are almost

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 59

FR.MARAPR12.PG060.pdf

Page

21/02/12,

2:19

Opportunities|Mortgage broking

RAMS Established: 2003 Number of franchises: 56 Investment: $23,000 + GST

franchisees also receive roughly the same upfront commission as brokers – but they give half of this to the customer. “The average mortgage holder gets a refund of around $1000, so this is a huge marketing and advocacy point,” says Graham. “When customers ask us ‘what’s the catch?’ we tell them the only catch is that we keep the other half.”

Our first recruitment campaign will target middle management bankers who would like a safe transition to being self-employed and also corporate mums who are ready to come back in the workforce guaranteed to get a better deal than if they approached the bank themselves.” Like major brokers, Refunds Direct charges their customers nothing for the service. Their

The strategy also works well for franchisees. “In the industry, licensing has been a big issue over the past year,” Graham explains. “Very strict rules apply if you want to operate as a

broker and ongoing compliance requirements have made the administrative burden much heavier than it was a few years ago. As we’re referrers and not brokers our franchisees don’t get involved in paperwork or compliance. Our franchisees have more time to focus on acquiring customers, so good marketing is key.” Refunds Direct launched in April last year. Currently, they have one franchisee with six territories and three more committed to starting up in the next few weeks. “We’re taking it slowly and steadily,” says Graham. “We’ve had serious discussions with a large number of people so far but only approved four. Our franchisees don’t need a financial background but they do need an understanding of sales and marketing and to love talking to people. We go by Richard Branson’s motto – we recruit for attitude and train for skill.” F

WANT TO JOIN SYDNEY’S MOST EXCITING, SUCCESSFUL & PROFESSIONAL STRATA CLEANING AND GARDENING SERVICE PROVIDER? SINCE 1992 WE HAVE BEEN THE LEADER IN OUR INDUSTRY AND NOW HAVE EXCITING FRANCHISE OPPORTUNITIES AVAILABLE. 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. First class CRM and IT systems to ensure your focus is in the field not in the office. 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?

1300 66 11 82

or email franchise@cleangreenstrata.com.au

60 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

AD_FRAFCSEP_11.pdf

Page

12/08/11,

A P G N I S I H ANC

4:59

S R E RTN

! ! ! D E T N A W 60c

FR.MARAPR12.PG062.pdf

Page

21/02/12,

1:50

Opportunities|Books & cards

There’s no doubt that the past 12 months have proven difficult for the retail industry, but despite all the talk of doom and gloom, the books and cards market is proving resilient and is changing with the times, writes Danielle Bowling

A NEW CHAPTER FOR

RETAIL T

he demise of the Redgroup last year – which saw the collapse of the Angus & Robertson book franchise – combined with the continued rise in e-retailing, made 2011 a game changing year for the books and cards industry. Retailers have acknowledged that online is here to stay and that the consumer has a wide range of options when deciding how to make a purchase. And while the media often harps on about the struggling retail sector and how the internet is cannibalising sales, four big

62 | FRANCHISING MAR/APR 2012

players in the books and cards industry beg to differ.

Cards and gifts The Wild Card and Gifts franchise comprises 43 stores, with another four openings scheduled for the year, and according to Lawrence Boyle, franchisor, the company has never been better placed. “We finished 2011 with our highest ever sales per store, mainly due to a very strong November and December period when the interest rate cuts boosted consumer sentiment,” he says. Books, cards and gifts are

WWW.FRANCHISE.NET.AU

Wild’s key products and it’s the fragile nature of these products and their price point that has helped the business to “dodge a bullet” when it comes to online retailing. “The dollar value of our product isn’t high enough to warrant people getting it posted,” Boyle says. This doesn’t mean, however, that Wild is resting on its laurels and dismissing online, but rather it’s focusing on the positives that the web can deliver to the franchise. “We have an online presence

FR.MARAPR12.PG063.pdf

Page

21/02/12,

1:51

Books & cards|Opportunities

but it’s not retailing ... We do six catalogues online where we represent hundreds of products and then we put the store addresses there and their phone numbers. We don’t actually sell online. That may or may not occur in the future but at this point there seems to be no genuine public demand for it.” Boyle says Wild’s most valuable resource is its database of email addresses, which stands at over 10,000 and is growing by 300 to 500 a week. These addresses are sent the catalogues as well as regular emails listing new and exciting products instore. While Boyle doesn’t see online as being as valuable as Wild’s bricks and mortar stores, he is open to the fact that this may change in the future, and is preparing for that now. “At some point there’ll be a tipping point and we want to be ready for that, hence why we’re

using the web now to gather information and email addresses – because they’re the currency of the future… We’ll develop our own app, do products of the month, the week, maybe do a range of new and interesting items and just make sure that anyone in our category that likes searching on the web will come across us, be aware of us and shop in our stores.” Newsagent franchise, Supanews, isn’t actively seeking email addresses or pushing people

Email addresses are a valuable tool at Wild

At some point there’ll be a tipping point and we want to be ready for that, hence why we’re using the web now to gather information and email addresses – because they’re the currency of the future to its website, but managing director Adrian Gaskin is giving it serious thought. In the meantime, however, he believes newsagents have always been a fundamental part of local communities and

they should make the most of that, with impeccable customer service and a user-friendly store layout to continue to drive consumers in-store.

WWW.FRANCHISE.NET.AU

>> continues on page 64

MAR/APR 2012 FRANCHISING | 63

FR.MARAPR12.PG064.pdf

Page

21/02/12,

1:52

Opportunities|Books & cards

An easy to navigate store is essential in the books & cards industry

“We’re just doing what we’ve always done, but we’re just trying to do it a little better and keep it sharper. You’ve got to present your products in a way that’s appealing for people. You’ve got to present the right products out the front of the store so they start to browse, and stores have got to be attractive enough so people can browse and easily navigate them,” Gaskin says.

retailing, but that doesn’t mean they’ve had it easy. He says the demise of a number of high profile companies last year and comments from industry figures like Gerry Harvey and Solomon Lew “telling people if they weren’t buying online they were silly” have driven consumers to the web and out of shopping centres. “So retail is not a pleasant place and it’s not going to be any easier this year. We need to continue to come up with new initiatives and new products and new displays because I still think that the one thing that customers will always err towards is good service and easy to navigate stores.”

Books Last year was huge for Collins Booksellers, where the name of the game was to diversify the brand

We see a very strong, long term position for the physical book presence in Australia. Customers still love to pick up a book, to smell a book, to read a book, to take it to the beach With 55 stores and 34 franchisees in the Supanews system, Gaskin, like Boyle, says that to some degree the greeting cards and gifts market is less susceptible to the threat of online

64 | FRANCHISING MAR/APR 2012

and ensure that it could deliver books to consumers however they like and in whatever format they prefer. Not only did the business launch its own website with e-retailing capabilities, but it also

WWW.FRANCHISE.NET.AU

acquired online bookseller Seek Media, aligned itself with global e-reading company Kobo, and acquired 18 Angus & Robertson stores, following the collapse of Redgroup. It also posted a record Christmas season with double digit growth on a like-for-like basis. “There’s no doubt that since the demise of Redgroup the market has opened up ... but the majority of our stores were not in locations where there was previously an Angus & Robertson or Borders store operating, so it’s not like we’ve just picked up the available market share. I think it’s more to do with the fact that we had a very good push leading into the end of the year,” says Collins’ CEO, Daniel Jordan. “I think all the additional brand development and marketing activity that we’ve done around the business, particularly with the acquisition of these new businesses, has been very positive for us.” Upon launching its website, Collins introduced a revenue share model to ensure all franchisees get a cut of the revenue made from selling books online, which means, according to Jordan, that they don’t need to be concerned that e-retailing will steal foot traffic from in-store. The franchise also offers home

8/02/12,

12:16

TUR

TIO N

Page

BITIO N IN

AD_FRDEAMAR_12.pdf

O T

Compare your franchise shortlist against the widest range of franchise systems, including successful brands such as McDonalds, Grill’d, Jim’s Tag & Test, Plus Fitness 24/7 and many more. And with insider tips, expert advice on generating extra income and how to make that career shift, the 2012 Franchising & Business Opportunities Expo will help turn your ambition into action. ENDORSED BY

23 - 25 MARCH SYDNEY CONVENTION AND EXHIBITION CENTRE

$15 enter code FM2 at franchisingexpo.com.au

FR.MARAPR12.PG066.pdf

Page

22/02/12,

11:28

Opportunities|Books & cards

Before you franchise, you really should talk to Australia’s leading franchise consulting ﬁrm.

2011 was a big year for Collins

For many years the most successful franchise businesses in Australia and around the world have depended upon DC Strategy’s expertise. Our highly experienced team can assist you to develop a franchise system to drive sustained business growth. DC Strategy is Australia’s leading franchise consulting ﬁrm. For more information, please contact us: Melbourne 03 8102 9200 Sydney 02 8220 8700 Email growth@dcstrategy.com Web www.dcstrategy.com

business growth specialists

66 | FRANCHISING MAR/APR 2012

delivery for books purchased online, and through Kobo is now retailing in e-books. At the end of the day, Jordan says, the consumer will reward franchisees with loyalty if they feel they’re providing them with the goods and services they desire, regardless of where the transaction takes place. “It comes down to what the customer wants. It’s not about what we think is right. It’s really about saying to the customer ‘Whatever way you want to shop, whether it’s a physical book or a digital format, whether you want to come and browse in our store and have it delivered at home or whether you’d like to browse online and come and pick it up in store, we’ve got a basic model that enables us to do that for you.” As one of the giants in the industry, with 72 stores in Australia, 12 in Hong Kong and four in New Zealand, Dymocks has much the same approach to satisfying consumer demands as Collins, however Steve Cox, general manager of retail operations, merchandise and marketing, says the old paperback book is far and away still the biggest seller. “The total value of book sales in Australia has grown by an annual average of 5.2 percent from 2005 to 2010, so

WWW.FRANCHISE.NET.AU

it’s outstripped the international markets which were significantly below that. Canada was 2.4 percent and the US was 0.6 percent.” And looking within the Dymocks system, while digital book sales are growing, they’re “a very, very small proportion of overall sales” representing something like two percent – in line with the global spend of 1.7 percent. “We see a very strong, long term position for the physical book presence in Australia. Customers still love to pick up a book, to smell a book, to read a book, to take it to the beach. So there’s no doubt that our consumers are looking at us to supply books in different formats. They’ve got a passion for reading and by far and away the largest percentage of them, 98 percent, are reading a physical book,” says Cox. He says there is huge opportunity out there for anyone wanting to get in on this dynamic industry, and a big part of that is due to Redgroup’s collapse. Cox agrees with Jordan that the market was previously overretailed, but now Dymocks is in a position where there are major shopping centres in the country that don’t have a book store. “We’re represented in 67 of the top 200 centres in

FR.MARAPR12.PG067.pdf

Page

22/02/12,

11:28

Books & cards|Opportunities

New-age newsagent

“We have taken the old model of a traditional newsagent and brought it to modern times,” says Trevor Mason, co-founder of Neeto. The Neeto model is about being neat, having products for the next generation including computer and smartphone supplies, and managing that stock well. “We are running the business as a national retailer would run it,” he says. “Take cards as an example. We deal with only one major supplier, Henderson cards. That means they take responsibility with us for the stock and sales. We don’t confuse the customer by having several brands, which means that birthday cards are in one spot and not in several locations based on supplier.” Less stock, a small counter and a cheaper fit-out is working well for Neeto, which plans to open 15 franchised stores this year. The first store, an existing newsagency in The Pines Shopping Stockland Centre in Doncaster East, had its floor space shrunk from 230 square metres to 110 square metres when it joined the Neeto franchise. This saw annual rent drop by $140,000, while achieving similar sales, Mason says. “Stock has been reduced in number but sales are holding or increasing - that means we are making better use of the space and more gross profit per square metre. “We are moving towards a modern model of retail, with our KPIs matching the best. The results show our model is working well.”

International expansion presents exciting opportunities, but not without risk.

At DC Strategy we understand the challenges of entering and operating businesses in new markets. Working closely with our clients we analyse all the issues, objectives and market dynamics that affect international expansion. We not only help with strategy development and planning but also assist with rollout and implementation of those ose plans to ensure your objectives are met. For more information

Australia, so I guess that really talks to the level of opportunity in that there’s still many Australian centres that we’re not represented in,” he says. Consequently, franchisee enquiries at Dymocks have jumped recently, adding further weight to the theory that the retail environment, particularly that of the books and cards industry, is not as vulnerable as many think. “We are getting an upsurge in people opening

book stores. People are understanding that 25 percent of the market closed [after Redgroup’s collapse], people still love books and still want to buy books and there are great opportunities out there for local businesses to meet the needs of our book loving customers. We’ve got tremendous focus on our franchise recruitment. “We see the next period as a really exciting time for the book industry”. F

call 03 8102 9200, 02 8220 8700 or visit www.dcstrategy.com

WWW.FRANCHISE.NET.AU

SPECIAL EVENT:

“GOING GLOBAL”

17 MAY 2012 IN SY

DNEY.

Visit dcstrategy.c om/events to register now.

PLACES LIMITED!

business growth specialists

MAR/APR 2012 FRANCHISING | 67

AD_FRFRAMAR_12LHP.pdf

Page

10/02/12,

10:56

Capital required - $220K – $410K Number of outlets - 23 Opportunities available - Nationally

Capital required - $800k – $900k Capital required - $47K + Number of outlets - 6 Number of vehicles - 50 Opportunities - Nationally/Internationally Opportunities available - Nationally

Capital required - $300K + Number of outlets - 7 Opportunities available - Nationally

Capital Required - $280K – $350K Number of outlets - 1 Opportunities available - Nationally

Capital required - $300K – $450K Number of outlets - 6 Opportunities available - Nationally

Capital required - $400K – $600K Number of outlets - 25+ Opportunities available - Nationally

Capital required - $300K – $350K Number of outlets - 6000+ worldwide Opportunities available - Nationally

Capital required - $80K – $140K Number of Outlets - 16+ Opportunities - Nationally

Capital required - 70K+ Number of outlets - 4 Opportunities available - Nationally

Capital Required - $250K Number of outlets - 100+ internationally Opportunities available - Nationally

Capital required - from $90K Number of outlets - 12+ Opportunities available - Nationally

Capi Num Oppo

C N O

C N O M

AD_FRFRAMAR_12RHP.pdf

Capital Required - $300K + Number of outlets - 6 Opportunities available - Nationally

Page

10/02/12,

10:56

Capital required - $185K + Number of outlets -175 Opportunities available - Nationally

Capital required - $275K to $325K Number of outlets - 6 Opportunities available - Nationally

BI M O LE

Capital required - $175K - $195K+ Number of outlets - 8 Opportunities available - Nationally

P ENI

Capital required - $150K - $175K Number of outlets - 20+ Opportunities available - Nationally

B&S AR

fruition.com.au

1300 TUITION (884 846)

Capital required - $54,995 + GST Number of outlets - 12 Opportunities - Nationally/Internationally

HAND CARWASH

Capital required - 250K - 400K Number of outlets - 17+ Opportunities available - Sydney, Melbourne, Canberra, Newcastle

Capital required - $120K - $180K Number of outlets - 17 Opportunities available - Nationally

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

CONNECTING PEOPLE TO OPPORTUNITIES CHOOSE FROM AUSTRALIAâ&#x20AC;&#x2122;S BEST SELECTION

WWW.FRANCHISESELECTION.COM.AU PHONE 1300 FRANCHISE (1300 372 624)

FR.MARAPR12.PG070.pdf

Page

22/02/12,

1:42

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

Will 2012 be the year you unlock your potential and invest in a franchise? Make the most of the upcoming Sydney Franchising and Business Opportunities Expo to find out just what’s involved

FUTURE T

his could be a great opportunity – a diverse range of businesses to consider for investment, a full seminar program and independent advice from industry experts. All this and more will be in easy reach at the Sydney Exhibition Centre at Darling Harbour from March 23 to 25 when the first of four expos showcasing business opportunities around the country opens its doors. You can take a closer look at Australia’s fastest growing and most recognised brands from food and beverage, health and fitness through to maintenance and business services and speak directly with leading franchisors, including McDonald’s, Oporto, Grill’d, Total Tools, Senior Helpers, Jim’s Test & Tag, Plus Fitness 24/7 and Healthy Habits. A franchising expo has something for everyone – plenty of choice in business opportunities, from fitness to food, domestic help to computer servicing, mobile to vending – whatever your budget or lifestyle goals may be, with investment levels from under $10,000 to over $500,000. Whether or not you want to buy a franchise or invest in a licensing opportunity it’s worth paying a visit to get a feel for what’s available. There’s no other event that gives you the opportunity to talk face-to-face with leading franchisors and successful franchisees across a range of business sectors.

Free seminars A selection of expert speakers will present free seminars covering a variety of topics designed for those who are in the early stages of their franchising journey, to both whet your appetite for franchising, and provide essential information.

70 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

FR.MARAPR12.PG071.pdf

Page

22/02/12,

1:44

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

The expo will have a particular franchisee focus and if you have ever wondered how prospective franchisees go about choosing a franchise system, the Franchisee Success Club Seminar Session will give you an insight. Listen to franchisees who have had great success in establishing themselves in the franchising industry. This will also be a chance to ask any hard hitting questions, so go prepared! You can also hear the stories behind previous winners of the Excellence in Franchising Awards, including those from brands like Boost Juice, PoolWerx and Coco Cubano.

Free advice Discuss your potential franchise opportunity and have your financial and legal questions answered by specialist bankers and lawyers at the Franchise Advice Centre. Why not book in for your free appointment upon arrival at the expo? Gain further insights into franchising by attending an informative presentation by the Franchise Council of Australia. Find out about the benefits involved in buying a franchise, how to select a franchise that is right for you and the type of

questions you should be asking. Steve Wright, executive director, Franchise Council of Australia, explains why the FCA will have a presence at the expos this year.

Speak directly with leading franchisors, including McDonald’s, Oporto, Grill’d, Total Tools, Senior Helpers, Jim’s Test & Tag, Plus Fitness 24/7 and Healthy Habits “Expos continue to be one of the best opportunities for potential franchisees to ‘keep the ties’ in franchising and it is important we put on the best presentation so as to have the chance to make a big first impression on these new entrants. We are excited McDonald’s is attending the Sydney Expo and we are hopeful other major brands will return to support the expos.” Franchising magazine will be at the show with a networking lounge, so come and tell us about your franchise search. From insider tips to expert advice, generating extra income to a career shift, The 2012 Franchising & Business Opportunities Expo can help turn your ambition into action.

EXPO DETAILS Register online now for FREE entry to the Sydney expo. Visit www.franchisingexpo.com.au and sign up for your tickets! When: Friday 23 March 10am to 5pm Saturday 24 March 10am to 5pm Sunday 25 March 10am to 4pm Where: Sydney Convention and Exhibition Centre Darling Harbour, Sydney How to get there: Monorail: www.metromonorail.com.au Ferries: www.sydneyferries.nsw.gov.au Buses: www.sydneybuses.nsw.gov.au Trains: www.cityrail.nsw.gov.au Parking on site: www.scec.com.au

EXHIBITING BUSINESSES INCLUDE: Management Institute of Australia This national registered Training Organisation has been in business since 2006, offering a broad range of qualifications including retail, beauty, community services, funeral service, hospitality, and transport and logistics. Training can be delivered in a classroom, workplace or online with access to government funding for customers, who can be either employers or students. The business

promotes low franchisee fees, excellent systems, training and ongoing support; investing in a franchise will cost $22,000. Expo special offer: register your interest at the show and find out how to save $500.

James Home Services The newest domestic service offered by this fast growing home services team is mobile ironing and laundry, but there’s another exciting development set for a 2012 launch: a mobile coffee service,

WWW.FRANCHISE.NET.AU

Coffee with James. The first vans were completing their fit-out in February and will be operational in the next few weeks in Queensland (and NSW and Victoria by the end of March). The first vans will be run by existing regional master franchisees, says director Tim Burns. “We anticipate having the first franchisees on the road by May/June 2012. The franchises will sell from $110,000 plus GST.” The existing range of services include lawn and garden care, pet

MAR/APR 2012 FRANCHISING | 71

FR.MARAPR12.PG072.pdf

Page

22/02/12,

1:47

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

The James’ team

grooming, mobile car cleaning, window and exterior house cleaning. The established James’ brand has more than 300 franchisees nationally backed by proven training, support and marketing systems; buying a franchise will cost from $32,900 to $180,000. Opportunities exist for state masters, regional masters and franchisees

Plus Fitness 24/7 Founded by John Fuller in 1998, the Plus Fitness brand has grown from a health club format to embrace the affordable ($13 a week membership) 24 hour, seven

72 | FRANCHISING MAR/APR 2012

days a week model that Fuller and business partner Nigel Miller launched to the franchise market last year. Five franchisees were signed up following the expo launch and early in 2012 the franchise chain will have 32 gyms open or scheduled for opening, and 28 further territories sold. The first interstate franchise opened in 2011 in Perth; there are now four more territories sold in WA, and six in Victoria. The goal is to establish 80 gyms across the country by the end of the year. Investment starts at $229,000 with equipment, fit-out, access control,

WWW.FRANCHISE.NET.AU

signage and pre-opening marketing included. A franchise term is five years with one option to renew for a further five years.

Oporto From a single store in iconic Bondi Beach in 1986, to more than 140 stores in 2012, Oporto has come a long way in its 26 year history. And over the next 12 months there are aggressive development goals along the eastern seaboard across all store formats. Fred Pose, national franchise manager, says “To be successful in our

AD_FRYUMJUL_11.pdf

Page

7/06/11,

9:14

FR.MARAPR12.PG074.pdf

Page

22/02/12,

1:52

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

and Queensland for 2012, adding expansion in WA and Tasmania later this year.

Oporto will be exhibiting at this year’s Sydney expo

PurairClean

business you don’t need to be an expert in food because we provide full and extensive training. But you do need to follow our system with passion, be a great communicator and effective at leading and motivating your team.” Oporto franchisees will join the Quick Service Restaurant Holdings (QSRH) Group, whose network comprises more than 600 stores and fellow franchise brands Red Rooster and Chicken Treat. There is a range of locations and investment opportunities starting from $500,000.

SuperGeek SuperGeek started off as a fast response onsite computer repairs service but has developed into a one stop shop for all IT related issues. Most recently the company has ventured into the realm of cloud services for backup and storage, web building and hosting services. Of course the franchisor continues to stock vehicles with ready packages y to go g computer p p g

day to manage our home and business lives,” says founder Mick Davey. “Our SuperGeeks are continually up-skilling to ensure that no matter what they come across, they can offer the quickest and most cost effective solution to get customers up and running.” The network has 26 franchises and is expanding in Sydney, Melbourne, Adelaide and Perth. Investment costs are $35,000 + GST (not inc van and equipment). Expo special offer: tailor-made package for visitors who purchase a franchise within three months from the Sydney Expo.

Total Tools Specialising in trade and industrial tools, Total Tools retail outlets carry an extensive product range from leading brands, including power tools, air tools, hand tools, welding and mechanics tools. Total Tools also has its own private brands including TTI, Mastercraft Value, Detroit, Guardall, Iron Air, Hornet & HRD.

V.I.P. offers franchisees comprehensive training, a solid support system, exclusive territories and an established customer base and an any other bits and pieces that a technician needs to solve issues they come across in their day to day business. “As we all know with today’s technology we have moved away from the stationary office and into the mobile office and so SuperGeek has adapted to be able to problem solve issues with the array of devices that we use in our

74 | FRANCHISING MAR/APR 2012

The Total Tools brand promise is to have the broadest range of superior tools available on the market. Top level retailing standards and experienced staff offering professional advice and service are considered key to the brand’s success. With 31 stores across Victoria, NSW, South Australia and Queensland, the established chain is focusing on NSW

WWW.FRANCHISE.NET.AU

Franchisees provide cleaning and sanitising services on scroll fans, coils and louvres in split system air conditioners in residential settings. The main focus is assisting homeowners, office based companies and other customers in reducing energy consumption and costs and improving the quality of indoor air. Franchisees source business through various marketing techniques including editorial in newspapers and industry magazines, direct mail drops, trade exhibitions and social media. This is a brand new franchise opportunity so there are no franchisees on board. Investment cost is about $40,000.

RP Vending An RP Vending business is a simple business that doesn’t require a degree or diploma. The business is made up of a fleet of vending machines placed in sites such as offices, factories and business cafeterias within a specified territory. The owner stocks, cleans and maintains the machines which provide a convenient source of snacks and drinks to employees. It’s an all-cash business with few running costs or labour demands. RP Vending Systems began in 1995 and has since set up more than 1200 businesses across Australia which operate 40,000 machines in many different locations. A range of packages are designed to suit different types of lifestyle, business and financial requirements with investment levels from $24,000 to $120,000.

Think And Grow Rich Seminars This is one of Australia’s largest education companies, providing regular free workshops for more than 8,000 Australians each year in five major capital cities. On offer are business opportunities in what the company describes as four wealth streams: >> continues on page 77

AD_FRJOJNOV_11.pdf

Page

10/10/11,

3:13

Jo Jingles Final Ad_Layout 1 06/10/2011 16:18 Page 1

The UK’s recognised leading provider of music, singing and movement classes for babies and pre-schoolers from 3 months to 5 years of age

Are y ou in t une w ith c hildren? (Established 1995)

NOW in ! Australia We are keen to work with business partners who have a strong commercial and entrepreneurial spirit to further develop the Jo Jingles brand in Australia.

Franchisees running throughout the • 90+ UK, Ireland and pilot operation in Perth, Western Australia (launched October 2010) have business partner opportunities • We available in: New South Wales Western Australia Victoria

South Australia Queensland New Zealand

units also available at • Sub-franchise c. $ Aus 15,000 provide popular parenting classes • We and sessions to all Early Years settings curriculum-based programmes • UK adapted for the host country interest in children and their • An education is essential

For full details contact:

Jo Jingles Limited email: headofﬁce@jojingles.co.uk visit www.jojingles.com or call 0044 (0) 1494 778989 Join us at : www.facebook.com/jojingleshq and twitter.com/JoJinglesHQ

AD_FRNIGMAR_12.pdf

Page

14/02/12,

8:59

king

for a premier investment? ...this one ticks all the boxes! Exceptional yields Positive cash ﬂow Prime locations Equity growth

State of the art IT platform Excellent marketing support Fantastic promotional offers Financial freedom

NightOwl is offering exciting investment opportunities in its convenience and super store formats for potential owner operators or strategic investors. Flexible investment options to suit individual requirements. Greenfield sites and selected company stores available now. Opportunity to invest in a major share of one of our selected company stores with the security of NightOwl as an equity partner.

Enquire now!

Call Jason Dalton on 0403 188 027 or email jason.dalton@nightowl.com

www.nightowl.com.au

FR.MARAPR12.PG077.pdf

Page

22/02/12,

1:53

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

growth are Sydney and Newcastle and opportunities exist across a number of the sectors: garden maintenance and lawn mowing, home cleaning, commercial cleaning, pool care, and finance brokers. V.I.P. offers franchisees comprehensive training, a solid support system, exclusive territories and an established customer base.

>> continues on page 74

property, internet, business and shares. Potential investors can get started for between $4,000 and $6,000 (of course some trading capital helps too) and there are no ongoing fees to pay. Individuals work from home, anywhere across the country where internet is available, and generate their own business with the systems provided. Visit the Think and Grow Rich stand for a free copy of the book Think and Grow Rich Property plus free tickets to an upcoming workshop.

Silver Chef Silver Chef will be using the expo to inform franchisors and franchisees about its unique Franchise Accreditation offer. Franchise manager James Scurr says the expo is a great opporunity for potential franchisees to learn about their funding options and for franchisors to meet the Silver Chef team. “Since winning the FCA’s Supplier of the Year award in October 2011, we have received a big increase in interest from

James Scurr, Silver Chef

franchisors. We now have 28 well known Australian franchise systems accredited with Silver Chef, some of which will also be exhibiting at the show.” Expo special offer: And for good measure, the team will be giving away an iPad2 to one lucky visitor - just for visiting the stand.

VIP Home Services V.I.P. Home Services was the first company to start a gardening franchise, back in 1979. Now V.I.P. has more than 1100 franchises employing over 500 staff servicing over 44,000 clients on a weekly basis. Investment in a franchise is $25,000; target areas for

Jim’s Building Maintenance Franchisees investing here handle mostly residential jobs such as building, tiling, ceilings, pergolas, decks and plastering. Initially work comes to the franchisee through the national call centre, which fields every Jim’s group inquiry. Jobs are allocated according to how a franchisee lists themselves – available for work just in their territory, in the local area, or in all areas. Included in the franchise cost are three-month’s bookkeeping, insurance, uniform and stationery. F

VANITY BAR - ESSENTIALS VENDING LOW ENTRY COST - STARTING AT $18,000

Smart :: Compact :: Convenient

• • • • • • www.vanitybar.net Secure your area by contacting Samuel Hamrosi on 0402 295 977 or sam@vanitybar.net

WWW.FRANCHISE.NET.AU

Unique concept Great lifestyle business Fast growing company Great ROI Exclusive product range Ultra-reliable hightech generation II Vanity Bar available now

MAR/APR 2012 FRANCHISING | 77

FR.MARAPR12.PG078.pdf

Page

21/02/12,

12:39

Issues|Cover story

Are you a focused, selfmotivated, business minded person? Are you reluctant to invest big money into a new venture, but prepared to work hard to see it grow? If so, then a home-based business could be the right pick for you. By Danielle Bowling

HITTING A

HOME RUN H

ome-based businesses aren’t just the ones where the owner sits in his home office from nine to five, day after day, managing phone calls and emails and rarely seeing a ray of sunshine. Today, home-based franchises also include those that use franchisees’ homes as a launch-pad for a new venture, growing it into an office space, or as the admin headquarters, where accounts and clients are managed when the business isn’t on the road. Richard Garraway from The Franchise Shop says home-based franchises are always a popular option for prospective franchisees, particularly because they offer more flexibility than other models. “I think they’ve always been popular and I think they always will be. One of the biggest differences is that a lot of work from home used to be that of part-time franchises, like ones that involve weekend work or that sort of thing, whereas now there are bookkeepers and a lot more different [franchises] that are becoming work from home operators,” he said. The key benefits of operating your franchise from home are obvious. And many, according to Garraway, are attractive to mothers or women returning to the workforce after having kids.

78 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

“I think the big advantage of working from home is obviously that you get to be a lot more flexible with your hours. If you need to do something or you need to drop the kids at school at 9am you don’t need to be in the shop opening up. “Often, as well, the mobile businesses are based from home so you don’t have the overheads of the shop or a lease or anything like that, and I think that makes them popular because of their lower entry price,” Garraway says. “Unless there’s a really expensive vehicle that needs to go with it, the overheads are always going to be less than setting up a retail business.” The thing that people considering this form of business ownership need to determine is whether they’re disciplined enough to make sure they get their work done at home without getting distracted by kids or housework, for example. “Most people know themselves. And one of the big things we say in franchising is don’t only evaluate the franchise. You have to evaluate yourself and look at what’s expected of you as a franchisee, and be honest with yourself. Say ‘am I that person?’” advises Garraway. While support might be a top concern for the

FR.MARAPR12.PG079.pdf

Page

21/02/12,

12:39

Cover story |Issues

creating and managing hampers And one of the from home, then doing big things we say in deliveries, marketing the business and visiting franchising is don’t only corporate clients out road. Most of evaluate the franchise. You onthethefranchisee’s work have to evaluate yourself and is done on their own, so like First Class, an look at what’s expected of online support forum a big difference you as a franchisee, and be formakes their morale. “At Lollypotz we have honest with yourself. Say constant engagement with our franchisees. We have a ‘am I that person?’

franchisee who won’t be seeing the franchisor in-store regularly or have staff around them to help them along the way, Garraway says all franchisees, regardless of their industry or where their work is completed, are in the same boat. “I think everyone is always concerned about those things… One of the most common things people say to us is ‘What sort of support do I get?’ A franchisee expects support and whether it’s home-based, retailbased or mobile, it doesn’t matter. They’ll be expecting help and support and they’re entitled to it.”

Support crew First Class Accounts, a bookkeeping franchise that focuses on small and medium sized enterprises, has 65 percent of its franchisees operating from home, and according to Clive Barrett, managing director, this is the best way to do it. “I think it’s unnecessary [to have a shop front]. I think it’s unlikely, for the costs involved, for it to enhance the business proportionately. It would just not improve their business, to justify the expense. It [bookkeeping] is one of the businesses and the industries where you don’t need to have a shop front,” he says. That doesn’t mean that franchisees are left to their own devices however. First Class Accounts franchisees have a seven week induction once they join the system, as well as quarterly regional training sessions. “Also, there is ongoing support by our technical department, which means we have people on hand to take calls from any franchisee at any time, with any technical matter. Plus we have a franchise relationship manager who makes regular trips in the field to see franchisees on an individual basis,” says Barrett. First Class Accounts also encourages franchisees to use its social forum, Yammer, where they can communicate with each other and head office about any issue, personal or professional. “Yammer is like a social forum that all our franchisees have access to and participate in, particularly when it comes to areas of support. So for example, someone will come on Yammer and say ‘does anybody know anything about fuel tax?’ and you will see within a matter of minutes there will be responses from various other franchisees who will give their views, and it extends to social and family matters, and all sorts of things,” he says. Lollypotz, which specialises in chocolate bouquets, hampers and gifts, sees its franchisees

company intranet and forum which all franchisees contribute to. The team spirit is very much alive and well with franchisees sharing stories and ideas with each other. The Lollypotz Franchise Owners Forum, I would say, is our best asset,” says founder Louise Curtis. “We also have an annual conference which a lot of effort goes into. This has been a great success for us as it brings everybody together. Lollypotz also has many monthly competitions between our franchisees for best sales or best corporate marketing technique, for instance, and this provides a lot of fun and healthy competition between the group.” Lollypotz franchisees not only have plenty of opportunities to learn from and engage with other members of the gift franchise, but they also have access to round-the-clock business support. “We have excellent IT systems and a full time

Lollypotz 1. Number of franchisees in the system? 28 2. Cost of entry? Ongoing costs such as royalty and marketing fees? $50,000 entry fee, 15 percent royalty, admin and marketing fees 3. What sort of people do you look for when recruiting franchisees? Proactive, driven people, who love our product and who aren’t afraid of hard work. We also prefer people who have some creative flair 4. Challenges of operating a home-based business? You need to be self motivated as it is easy to slip into habits of doing other things at home rather than work 5. Key benefits of operating a home-based business? You can save significant funds on rent. Our business is very much driven by the internet and corporate market and neither need commercial premises. If you have a family you are able to have the flexibility of being home when the kids are going to and from school. Although our franchisees are required to work a full time week, we say that the 40 hours should be when they can, not when they should

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 79

FR.MARAPR12.PG080.pdf

Page

21/02/12,

12:39

Issues|Cover story

call centre, which means that they don’t need to be engaging with the customers and they can be out marketing their business. We have an excellent support team of five, but mostly our national franchise manager makes regular trips to them to spend a lot of time working on their plans for the business. Our franchise manager also makes

Bloomtools 1. Number of franchisees in the system? Eight 2. Cost of entry? Ongoing costs such as royalty and marketing fees? $39,500 + GST – There are no royalty or marketing fees 3. What sort of people do you look for when recruiting franchisees? Passionate individuals who love the internet and get a lot of satisfaction from helping others achieve results. They typically come from a sales, customer service, or management background and are keen to set up their own business. They are also positive and enthusiastic people

80 | FRANCHISING MAR/APR 2012

who have the can-do attitude 4. Challenges of operating a home-based business? Franchisees need to travel to see clients which can take more time than them coming to you. There are also distractions in the home and less ‘people contact’ 5. Key benefits of operating a home-based business? Low overheads, a more flexible lifestyle, low set up costs and flexible destinations. Our franchisees can access all their business tools anywhere – at home, in their clients offices, at a coffee shop or even on holiday

WWW.FRANCHISE.NET.AU

weekly or daily calls to them if needed, so we are constantly engaged with our franchisees,” Curtis says.

Low cost, low pressure With no rent or lease and no staff it can’t be denied that working from home offers franchisees a low cost business model compared to its retail or office counterparts. The only expenses for franchisees at Lifetime Distributors, a book distribution franchise, are running the van that delivers the books and the franchisee’s computer. Even the books are on consignment, so are only paid for once they sell. “They don’t have the expenses of leases, whether it’s a lease on an office, factory or warehouse. They actually work from home or the garage as their stock is held in the garage,” says founder Mark Bonello. “So therefore when things are a bit slow they don’t have to pay the same lease as you do in a bookshop.” Lifetime franchisees deliver books to businesses for their staff to purchase, so their key responsibilities include picking up the stock from the master franchisee, travelling to commercial and industrial areas and visiting their offices, leaving a set of books in a display box and then coming back in a fortnight to fill the orders and deliver the books. And while the majority of a franchisee’s hours

FR.MARAPR12.PG081.pdf

Page

21/02/12,

12:39

Cover story|Issues

are spent on the road – visiting roughly 40 businesses a day – the home is still the base camp for business, where the bookwork is done and the van maintained and stocked. Operating a mobile business from home gives Lifetime franchisees the best of both worlds: they can go out and actively seek more business while at the same time they save on in-store promotions or extensive marketing activities. “Unlike a bookshop that has to wait for the customers to come in, we are going to the customers. That’s number one. Number two is that we choose the customers instead of the customers choosing us. These are huge benefits. Plus we don’t have to spend a lot of money on promotions because the product sells itself and it has exposure,” says Bonello. Bloomtools is a design, website development and email marketing business, with eight franchisees, all bar two of which launched their business at home and are now in offices. “The biggest advantage [to working from home] for our franchisees is that they can get a faster ROI and make more money by having lower overheads, but then in time if they decide to grow the business, which is easy to do, and take on additional staff, they can move into offices,” says director, Tracey Voyce. Voyce doubts that many home-based franchisees can work their own hours like many systems promise, and says Bloomtools

UZZ B FOR YOUR

BUCK

First Class Accounts 1. Number of franchisees in the system? 190 throughout Australia 2. Cost of entry? Ongoing costs such as royalty, marketing fees? $30,000 plus GST, a monthly royalty fee of eight percent plus GST of all revenue derived from the business, or $595 plus GST per month, whichever is the greater. The marketing levy is five percent of the franchisee’s gross income (to a $350 + GST per month maximum) 3. What sort of people do you look for when recruiting franchisees? People that would love to work for themselves yet would appreciate the support and mentoring of a national office, are computer literate and have an interest in record keeping, bookkeeping or accounting, enjoy helping people grow their own businesses, like

to learn, share knowledge, and be part of a team and have a positive spirit, can-do attitude 4. Challenges of operating a home-based business? Isolation - however our franchisees can tap into our online support system which allows them to converse regularly with other franchisees 5. Key benefits of operating a home-based business? Low initial investment, no heavy rental commitments, minimal set-up costs, low overheads, work the hours that suit you

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 81

FR.MARAPR12.PG082.pdf

Page

21/02/12,

12:39

Issues|Cover story

franchisees need to be disciplined and self-motivated in order to reap the rewards and earn a more relaxed lifestyle than that offered by other business models. “The guys that are working from home, they must shower and dress for work at the same time that everyone else does, so at 8.30 they’re all dressed and

Lifetime Distributors 1. Number of franchisees in the system? 109 franchisees and 49 distributors across Australia and New Zealand 2. Cost of entry? Ongoing costs such as royalty and marketing fees? Entry costs range from $15,000 to $150,000. There are no ongoing royalties or marketing fees 3. What sort of people do you look for when recruiting franchisees? People who are hard-working and positive, who like dealing with people and want to run their business to a high standard 4. Challenges of operating a home-based business? Separating family and business will require good discipline and daily routines will help. You need to maintain focus and not be distracted by home related matters 5. Key benefits of operating a home-based business? Low set-up costs. No ongoing rental and landlord issues relating to a business premises

82 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

sitting at their desk. Don’t sit there in your pyjamas because you don’t have that same sort of motivation level,” she says. The same goes for family members. If you’re working from home and have people around, you need to have your own separate work space to ensure focus and productivity. While this might sound like a controlling or overly rigid work ethic, Voyce says committing to your business like any other full time worker will deliver lifestyle results once you are established. “You need to be there for your clients, but in saying that, if you’ve had incredible sales for the week, you’re a business manager so nothing’s stopping you from having the Friday afternoon off. Your phone’s still there to be in contact with your clients, but you’re like any business owner, that’s why you go into business, so you can give yourself those treats every so often.” However, at First Class Accounts, choosing your own hours is one of its key selling points and a fundamental attraction of the home-based franchise model, according to Clive Barrett. While he admits that the majority of his franchisees work full time, he says their hours can be built around their lifestyle. “There are those that are highly committed and are spending 50, 60, 70 hours a week working, and then there are those who do 20 or 25 hours a week

SNO1013FranchisePre.pdf

Page

28/11/2011,

4:30

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

AD_FRMAGMAR_12.pdf

Page

7/02/12,

3:50

READ ALL ABOUT IT! Share in Australia’s billion $ magazine market – and enjoy the rewards, week, after week, after week. Get your hands on a glossy new Magazine Vending machine. With constantly changing, eye-catching covers, the magazines on display practically sell themselves. The retail sales of magazines have increased by more than 48 per cent over the last 10 years. Retail sales now register about 4.5 billion. The Australian Women’s Weekly is the most-read monthly magazine in Australia with sales over 2.5 million every month which is almost double the sales from the second most read magazine in the country. Woman’s Day, the most read weekly to 2.5 million.

There are literally thousands of locations available across the country. Traditional vending has been covered by many companies for over 60 years and the biggest question always is ‘where do you put them’? The director of Magazine Vending Australia says that to be successful in vending today you have to innovate logically and think out of the box and look at the way of the future. “A can of soft drink or packet of potato chips, the typical items in traditional machines, will always be the same week after week. At Magazine Vending we provide a whole new customer experience every week, with brand new gossip, news, features and fashion through our extensive range of over 80 titles,” he explained. Australians and visitors are ready for this service! Most products put into a convenience environment attract a convenience price tag giving higher pricing to the customers. With magazines it’s the same price at the supermarket or newsagency or through a magazine vending machine. These locations ‘without opposition or competition’, makes Magazine Vending the only company to provide this much needed service in this convenient consumer driven society without the extra price tag.

In fact, latest figures show that 6.4 magazines are sold every second in Australia – that equates to $1 billion of sales each year. Magazine Vending’s fully electronic European manufactured vending machine is set to capture its share of this lucrative and ever growing market. Not even the Internet has slowed down this culture of people wanting to physically get their hands on a glossy, eye-catching magazine. Train stations, airports and hospitals are a major source of location for Magazine Vending machines and upon purchase of a Magazine Vending System, one of these types of locations will be supplied to you or any location that you may request.

By becoming a machine owner of Magazine Vending you have the opportunity of investing in a comparatively low cost method of selling these products. You will also be investing in a low risk system which provides you with the ability to grow a large network of units, thereby creating real passive income. “The truth is that there is real financial independence available to you with Magazine Vending machines. They are unique, they carry products people want, they are not expensive, and people are attracted to them with their unprecedented consumer exposure and availability,” the Director said.

In regional and remote areas like holiday islands, mining and farm areas, Magazine Vending can provide magazines at the same price that these customers would pay at any retail outlet in Australia. It’s these places where people tend to have to spend time waiting for appointments, transport, classes etc. A good magazine always makes the waiting time much more pleasant.

Magazine Vending, features a high profile magazine portfolio of over 80 Australian titles including established favourites such as FHM, ZOO, CLEO, WOMAN’S DAY, COSMOPOLITAN, DOLLY, NW, WOMEN’S WEEKLY, TOP GEAR and many other popular titles to tailor-make the perfect Magazine Vending Machine for your location. In fact we have all the stats, foot traffic, and appropriate information at hand to ensure your Magazine Vending Machine’s success!

For further information please contact: sales@magazinevending.com.au or

1800 686 997

FR.MARAPR12.PG085.pdf

Page

21/02/12,

12:39

Cover story|Issues

Lifestyle at a cost? A 2008 study by 10 Thousand Feet, a market research consultancy, found that while home-based franchises are hard to beat when it comes to work/life balance and flexibility, they might not be the best choice if profit is your main motivator. The study compared the amount of money franchisees in various work environments invested in their business in a year and compared it to what they got out of it, financially. â&#x20AC;&#x153;When it came to people working from their home, they only represented six percent of all franchisees that had a return on equity of over 25 percent, however they represented 21 percent of all franchisees with a return on equity of under 25 percent,â&#x20AC;? said Ian Krawitz, head of intelligence at 10 Thousand Feet. â&#x20AC;&#x153;Thirty-seven percent of all people with a return on equity of over 25 percent worked from an office so I think what you may find is people working from home have a really good work/life balance but they may not be raking it in from a financial perspective.â&#x20AC;? Krawitz insists that these figures donâ&#x20AC;&#x2122;t apply to all franchises, but are merely a

suggestion that some homebased franchisees trade in big dollars for a flexible lifestyle. But like anything, hard work and dedication could turn this around. â&#x20AC;&#x153;You often find that people get a faster return when they put a small amount of money in and they work really hard at it, or they put a big amount of money in and get the leverage of that and can employ other people,â&#x20AC;? says Krawitz. Also important in ensuring home-based franchises can enjoy a good return is having a strong franchisor who enforces KPIs. â&#x20AC;&#x153;If youâ&#x20AC;&#x2122;re not looking for massive financial returns and youâ&#x20AC;&#x2122;re just looking for something thatâ&#x20AC;&#x2122;s OK and gives you a good lifestyle, then a lot of them [home-based franchises] probably deliver. â&#x20AC;&#x153;I think you either want to be very self motivated or do your homework and make sure that the systems youâ&#x20AC;&#x2122;re looking at have good KPIs in place and that youâ&#x20AC;&#x2122;re going to have people to mentor you and push you towards that goal. Because when youâ&#x20AC;&#x2122;re at home, youâ&#x20AC;&#x2122;re not surrounded by people, so to have someone to hold you accountable can be valuable.â&#x20AC;?

and itâ&#x20AC;&#x2122;s dependent on their circumstances. There are some who are married with children, so they build the business around those hours,â&#x20AC;? he said. This low pressure model, combined with a low cost of entry of $30,000, means First Class Accounts is an appealing option for those not wanting to get in too deep with their first business. â&#x20AC;&#x153;Theyâ&#x20AC;&#x2122;re able to establish a business without having to pay rent and without having to pay for equipment. To work with a very low overhead structure is very, very attractive and it gives you the opportunity to build a business without having too many expenses in the beginning. So it is definitely an attraction,â&#x20AC;? Barrett says. â&#x20AC;&#x153;The other thing is that thereâ&#x20AC;&#x2122;s no stock or anything of that nature, so if you compare it to other franchises where there is stock and equipment and leasing, youâ&#x20AC;&#x2122;re talking about a few hundred thousand dollars difference.â&#x20AC;? F

Achieve Your Personal and Business Goals Faster

Searching for a business Searching for to match your Credibility andskills? Value? Our Business Model Includes:

Toll Free 1800 634 227 E andrew@briantracyanz.com andrew@brian

www.briantracyanz.com www.brian

WWW.FRANCHISE.NET.AU

7 9 6 < + 4 , 4 ) , 9 6 - ; / ,

Immediate Results MAR/APR 2012 FRANCHISING | 85

AD_FRKEEJAN_12.pdf

rd for a w a n FCA ence i l l e c x “E ional t a n r e Int ” hising c n a r F

Page

6/12/11,

10:07

FR.MARAPR12.PG087.pdf

Page

21/02/12,

1:03

Emerging franchises|Issues

It’s a dilemma! Should you get in on the ground floor of an emerging franchise or buy into a well established system? Is one necessarily better than the other? John Di Natale looks at the pros and cons of the emerging franchise

BRAND NEW OR

TRIED AND TRUE I

t’s the stuff that business legends are made of. We’ve all heard the stories of the person who was smart enough – or lucky enough – to buy into an emerging business and then make millions when the business takes off. The recent sale of Facebook reinforced the opportunity and rewards of getting in early. If you’re considering buying a franchise business, it may be tempting to buy into an emerging system and try to create a similar result. The alternative, of course, is to take what may appear to be a safer bet with an established system. The fact is there is risk in both scenarios: the risk of going into business. If you’ve discovered an emerging system that appeals to you and are excited about the opportunity, don’t let that stop you from carrying out your due diligence. The excitement of getting in quick will wear off even quicker if you discover too late that the business is not fundamentally sound, that the franchise system has not been well developed or the franchisor cannot deliver the systems, help and support you will need to succeed. WWW.FRANCHISE.NET.AU

If you are buying a business to speculate, in other words to build the business up, then sell and make a good profit, be warned. Often, building a business takes longer than expected and the returns materialise over an extended period of time. You may need to run the business for a number of years to build up a strong track record that translates to a significant increase in sale value. While it is generally accepted that higher risk equals higher returns, we know this is not always the case, so careful analysis becomes the key to good decision making. If your objective is to generate a strong return on your investment, there are things you should investigate carefully. The first thing you should investigate is you.

Risk profile Take a good look in the mirror and analyse yourself. What’s your risk profile? We all have our own unique risk aversion characteristic that drives our behaviour. If you can tolerate some risk, an emerging system may be attractive. If you are completely risk MAR/APR 2012 FRANCHISING | 87

FR.MARAPR12.PG088.pdf

Page

21/02/12,

1:03

Issues|Emerging franchises

to growth in the value of your business which you can take advantage of when it comes time to sell. On the downside, many of these things may not transpire at all if the business does not have strong market appeal. Look closely at the research or market testing the franchisor has done to determine demand. Look for detailed analysis of the financial performance of the business in a range of scenarios and check that the rationale behind the numbers makes sense. If franchisees already exist, make sure you speak to them.

averse, you may want to take comfort in something with a proven history. On the upside, a fresh brand and offer can create market excitement and with some effective promotion, a strong start to trading. Emerging systems can be more economical to purchase as you are not paying for the

If you can tolerate some risk, an emerging system may be attractive. If you are completely risk averse, you may want to take comfort in something with a proven history

A good strategy

goodwill associated with a strong brand and well established system – think McDonald’s for instance. Emerging systems sometimes offer greater opportunity for multi-site ownership as the system grows. All these factors translate

It may be a strong business, but if the franchise system itself is poorly developed or the franchisor is under-resourced, this is likely to spell trouble as well. An operations manual and a franchise agreement does not make a franchise system. The

systems worth buying into have developed a clear strategic plan, have understood the economics of the arrangement for franchisees and franchisor, have detailed commercial policies in place to ensure they can effectively manage the business as it grows, are clear on their recruitment policies and will work closely with you on an ongoing basis to ensure you have the best chance of success. If any of these things appear to be lacking, ask lots of questions and satisfy yourself that the franchisor has addressed them. A good franchisor will not have an issue with you making as many enquiries as necessary – in fact, they should encourage it. F John Di Natale is a senior consultant at franchise consulting and legal firm DC Strategy and has broad international experience in franchising and business growth across Asia Pacific and Europe

United, a convenient life Tenure 12 years (6 x 2 years) ROI Guaranteed minimum income on Fuel Commission

Passionate about retail

Easy to Learn 5 week induction and ongoing training support

Be your own boss

Exclusivity Affiliated partnerships (e.g: MYER one) . Support National promotional program

Grow your equity Be part of an established brand Be part of United Petroleum’s

Proven Model Established fuel and trading results Sites now available across

Harsha P. Patterson Lakes, VIC

success story Proud member of

Australia

and selling fast For more details contact Russell Desa at russell.desa@unitedpetroleum.com.au or phone: 03 9413 1594 Visit www.unitedpetroleum.com.au

88 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

The future of fuel in Australia

AD_FRSUPNOV_11.pdf

Page

4/10/11,

9:13

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

Looking for an exciting and rewarding future? Then call 13GEEK today!

ÂŽ

4335 Contact head ofďŹ ce 13GEEK or franchise@supergeek.com.au

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

FR.MARAPR12.PG090.pdf

Page

22/02/12,

10:07

How to|Code of conduct

WHAT IS THE FRANCHISING

CODE?

The franchise sector has a mandatory code of conduct. Dr Michael Schaper, deputy chairman of the ACCC, explains its relevance to franchisees

he Franchising Code of Conduct is a mandatory code that has the force of law under the Competition and Consumer Act 2010. The Code aims to help prospective franchisees make an informed decision about purchasing a franchise. It also entitles you to specific information during the life of your franchise agreement, and gives you certain rights as

your agreement comes to an end. The Code also provides a cost-effective dispute resolution procedure.

When does the Code apply? The Code applies to any agreement that meets the Code’s definition of “franchise agreement”, regardless of what the agreement is called.

The disclosure document includes critical information that you need to know before you buy a franchise 90| FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

A franchise agreement is a written, oral or implied agreement: • under which one person (the franchisor) grants to another person (the franchisee) the right to run a business supplying goods or services under a certain system; • that is associated with a trademark or a commercial symbol; and • under which the franchisee must pay an amount to the franchisor or its associate (e.g. a royalty or training fee). The Code applies to franchise agreements between overseas >> continues on page 92

AD_PRSUMJAN_12.pdf

Page

30/11/11,

1:28

healthy prof its! Healthy fast food ood phenomenon SumoSalad is s now recruiting & weâ&#x20AC;&#x2122;re looking for energetic & passionate franchisees to o join the team. If youâ&#x20AC;&#x2122;re hungryy for success & have ave what it takes to dish up our delicious food, od, then we want YOU! Great franchising opportunities are available right now! Contact Graham on 0418 870 920

FR.MARAPR12.PG092.pdf

Page

22/02/12,

10:08

How to|Code of conduct

>> continues on page 90

franchisors and Australian franchisees.

When does the Code not apply? The Code sets out some limited circumstances in which the Code does not apply to franchise agreements. For example, the Code does not apply where another mandatory industry code, such as the Oilcode, applies.

YOUR RIGHTS UNDER THE CODE – BEFORE YOU SIGN UP Under the Code, a franchisor must give you: • a copy of the Code; • a disclosure document; and • a franchise agreement in its final form at least 14 days before you enter into, renew or extend a franchise agreement, or pay a nonrefundable amount relating to a franchise agreement.

The disclosure document

WHAT TO DO WITH THE INFORMATION

The disclosure document includes critical information that you need to know before you buy a franchise, including the business experience of the franchisor’s officers; details of certain litigation against the franchisor or one of its officers; contact details of current franchisees and some past franchisees; whether you will have an exclusive territory; and any restrictions on where you can source goods or services from. The disclosure document will also include your start-up costs and any other payments

Simply reading the franchise agreement and disclosure document is not enough. You need to go several steps further before making your decision.

Educate yourself A free online program funded by the ACCC will assist you to make an informed decision when looking to buy a franchise. The program, administered by Griffith University, is intended to be a one-stop shop for prospective franchisees. The five-module course includes information about the Code

Franchisors and franchisees sometimes find themselves in the middle of a dispute. Luckily, the Code contains a procedure that parties can follow when they have a dispute

The franchise agreement A franchise agreement is a legally binding agreement which sets out your rights and obligations, as well as those of the franchisor. Read it carefully and get legal advice if you don’t understand one or more of its clauses.

you may be required to make; details of what will happen when your agreement ends, including whether you will have an option to renew the agreement and whether you will be entitled to an exit payment; and any requirement to enter into a related agreement (e.g. a lease agreement). The franchisor is not required to give you earnings information about any of its franchises

and some of the more practical aspects of franchising. For more information, and to enrol in the program, visit www.franchise. edu.au/pre-entry-franchiseeducation.

Seek advice Before you enter into a franchise agreement, you will need to give the franchisor a signed statement that you have received advice from a legal adviser, a business adviser and an accountant (or have decided not to). I strongly encourage you to seek advice from professionals with franchising experience.

Speak to other franchisees The disclosure document must include the contact details of current franchisees and some past franchisees. Speak to as many current franchisees as possible to gain an insight into the day-to-day operations of the >> continues on page 95 92| FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

AD_FRAUSJAN_12.pdf

Page

8/12/11,

2:24

0U]LZ[ ^P[O (\Z[]LUKPUN HUK ILNPU H S\JYH[P]L YL^HYKPUN ^H` VM SPML ([ (\Z[]LUKPUN ^L ZWLJPHSPZL PU LZ[HISPZOPUN UL^ ]LUKPUN THJOPUL I\ZPULZZLZ MVY PUKP]PK\HSZ HSS V]LY (\Z[YHSPH HUK 5L^ ALHSHUK >L [HRL JHYL VM HSS [OL THJOPUL SVJH[PVUZ [OL PUP[PHS Z[VJR MVY [OL THJOPULZ [OL SVJHS [YHPUPUN HUK KLSP]LYPLZ" HSS ^P[O HU V\[Z[HUKPUN SL]LS VM J\Z[VTLY ZLY]PJL

in Australia

, do vending with Austvending

>L HYL [OL L_WLY[Z ^P[O `LHYZ ILOPUK \Z

*(33 ;6+(@

HUK YLJLP]L `V\Y PUMVYTH[PVU WHJR

^^^ H\Z[]LUKPUN JVT PUMV'H\Z[]LUKPUN JVT

AD_FRCALMAR_12.pdf

Page

30/01/12,

10:56

INTERESTED IN JOINING AN AWARD WINNING CONVENIENCE RETAILER? You may not be aware that Caltex Australia operates one of the largest convenience retail networks across the nation with both company and franchised stores operating predominantly under the ‘Caltex Star Mart’ brand. Earlier this year Caltex Star Mart dominated the prestigious awards at the annual Australasian Association of Convenience Stores (AACS) awards held in Sydney on 24 August 2011 winning : Retailer of the Year : Caltex Star Mart Franchise Store of the Year : Caltex Star Mart Hamilton, NSW Company Operated Store of the Year : Caltex Star Mart Kingsford, NSW We congratulate Reinhard and Suzannah Bolsius and their team at Caltex Star Mart Hamilton and our company operated team at Caltex Star Mart Kingsford on their outstanding achievement in being judged the “best of the best” in Australian convenience retailing. We also congratulate our franchisees Rajesh Patel and Kate Stone from Caltex Star Mart Caboolture Qld, and Mel and Sandra Owen from Caltex Star Mart Chelsea Heights Vic, who were nominated as ﬁnalists for this award. Caltex Star Mart have now won Franchise Store of the Year for the past four years. To ﬁnd out more about our award winning Franchise, visit www.caltex.com.au and click on ‘Franchising at Caltex’.

FR.MARAPR12.PG095.pdf

Page

22/02/12,

10:09

Code of conduct|How to

franchise and the relationship that current franchisees have with their franchisor. It is also vital to speak to franchisees that have left the franchise, and find out their reasons for doing so. Talking to current and past franchisees will also enable you to verify any representations the franchisor has made to you.

YOUR RIGHTS UNDER THE CODE â&#x20AC;&#x201C; AFTER YOU SIGN UP

Cooling off period As a franchisee you can terminate a new franchise agreement within seven days of entering into it or paying any non-refundable money, whichever happens first. If you do choose to exercise your cooling off rights, the franchisor must provide you with a refund (less any reasonable expenses it has incurred) within 14 days.

Franchisor termination The Code also includes rules about termination of a franchise agreement by a franchisor. For example, if you breach your agreement, the franchisor cannot terminate your agreement unless it has given you reasonable notice that it proposes to terminate the agreement and allowed you a reasonable time to remedy the breach.

Renewal Your franchisor must let you know whether it intends to renew your agreement (or enter into a new one) at least six months before the agreement ends. If your agreement is for less than six months, youâ&#x20AC;&#x2122;ll get at least one monthâ&#x20AC;&#x2122;s notice.

Talk to as many current and former franchisees as possible before signing

Marketing fund statements Many franchise agreements require the franchisee to contribute to a marketing fund. >> continues on page 96

Simply reading the franchise agreement and disclosure document is not enough. You need to go several steps further before making your decision Do you want to take control of your life? Do you want to be supported by a network that has been around 30 years + wordwide? Are you ready to take that next step with an MBE franchise?

Take Control of Your Life with a MBE Franchise! Everyday, MBE lend a helping hand to Australiaâ&#x20AC;&#x2122;s 1.5 million businesses t %FTJHO QSJOUJOH DPQZJOH EJHJUBM PGGTFU

t 8JEF GPSNBU QSJOUJOH CBOOFST t 1SJWBUF NBJMCPYFT GPSXBSEJOH t 7JSUVBM PGGJDF TFSWJDFT t IPVS DPQZJOH QSJWBUF NBJM CPY BDDFTT t 0WFSOJHIU DPVSJFS GSFJHIU t 1BDL TIJQ TFSWJDFT t /BUJPOBM JOUFSOBUJPOBM DPVSJFS GSFJHIU

MBE are a global company with over 1355 locations internationally & 40 centres across Australia & New Zealand. 5IFZ PGGFS CVTJOFTTFT BOE IPNF PGGJDFT B MBSHF TFMFDUJPO PG QSPGFTTJPOBM CVTJOFTT TFSWJDFT XIJDI IBWF CFFO DPOWFOJFOUMZ DPOTPMJEBUFE BU UIF POF MPDBUJPO

The MBE Franchise Takes Advantage of a New Era 5FDIOPMPHZ QMBZT B IVHF QBSU JO PVS FWFSZ EBZ MJWFT DPOOFDUJOH JOEJWJEVBMT BOE CVTJOFTTFT UIJT IBT CFFO B NBKPS DPOUSJCVUPS UP "VTUSBMJB TIJGUJOH UP B TFSWJDF CBTFE FDPOPNZ " .#& GSBODIJTF JT JEFBMMZ QPTJUJPOFE UP DBQJUBMJTF PO CPUI UIFTF USFOET XJUI B CVTJOFTT NPEFM UIBU DPNCJOFT TUBUF PG UIF BSU UFDIOPMPHZ BOE TFSWJDFT QSPWJEFE UP CVTJOFTTFT BOE IPNF PGGJDFT

*G ZPV BSF MPPLJOH GPS B OFX CVTJOFTT DIBMMFOHF XJUI B DPOTUBOUMZ HSPXJOH DVTUPNFS CBTF UIFO KPJOJOH .#& JT GPS ZPV

Franchise hise Opportunitiess

PWFS MPDBUJPOT

XPSMEXJEF

Available Nationally

GET OUT WHAT YOU

PUT IN WWW.FRANCHISE.NET.AU

Whatâ&#x20AC;&#x2122;s in it for you? t &TUBCMJTIFE (MPCBMMZ GPS :FBST t 1BSU PG B HMPCBM GSBODIJTF HSPVQ t "DDSFEJUFE GJOBODF QSPHSBN BWBJMBCMF t .VMUJ BXBSE XJOOJOH JOUFSOBUJPOBM GSBODIJTF t $MFBO QSPGFTTJPOBM XPSLJOH FOWJSPONFOU t 'JWF EBZT QFS XFFL QSPGFTTJPOBM CVTJOFTT IPVST t /P FYQFSJFODF SFRVJSFE t 'VMM USBJOJOH QSPWJEFE POHPJOH TVQQPSU t 1SFGFSSFE TVQQMJFS QSPHSBNT t 4USBUFHJD TJUF TFMFDUJPO QSPDFTT t 'SBODIJTF 0QQPSUVOJUJFT t "WBJMBCMF /BUJPOBMMZ

W can offer you currently available sites or find you a We llocation in your preferred area. The MBE business model lo ssuits u high volume retail-orientated business locations in AAustraliaâ&#x20AC;&#x2122;s largest shopping centres to a corporate ac ccount-orientated business in an industrial estate. account-orientated

CCALL CAL LL 1800 1800 5556 245 today & take control. CONTACT MBE TODAY

CContact on Andrew Dalton 0457 677 986 oorr eemail andrew.dalton@mbe.com.au

$&/53&4 "$3044 "6453"-*" /&8 ;&"-"/% &4 "$$3044 "6 MAR/APR 2012 FRANCHISING | 95

FR.MARAPR12.PG096.pdf

Page

22/02/12,

10:07

How to|Code of conduct

If you are required to contribute to such a fund, the Code requires the franchisor to give you audited annual statements showing all of the fund’s receipts and expenses for the last financial year. [To read more about marketing fees, turn to p99]

Dispute Resolution As with any two parties to a contract, franchisors and franchisees sometimes find themselves in the middle of a dispute. Luckily, the Code contains a procedure that parties can follow when they have a dispute. Under this procedure, if a franchisee and franchisor cannot resolve a dispute themselves, either party may refer the matter to an independent mediator. If this happens, the other party must attend. Mediation is far

THE FRANCHISING CODE: • The Code covers franchise agreements, as defined by the Code, regardless of what they are called • You have rights under the Code both before and after you buy a franchise • You are entitled to a disclosure document and a franchise agreement – don’t hand over any money or sign anything until you’ve read these documents carefully, received professional advice and spoken to other franchisees • The Code gives you a cooling off period and rules that apply when a franchisor intends to terminate your agreement • The Code contains a cost-effective dispute resolution procedure cheaper than going to court and is more likely to result in an outcome that is suitable to both parties. Mediation can be organised through the Office of the Franchising Mediation Adviser (visit www. franchisingmediationadviser. com.au or call 1800 150 667) or your local Small Business Commissioner. F 96| FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

Dr Michael Schaper is deputy chairman of the Australian Competition & Consumer Commission, which is responsible for promoting compliance with the Franchising Code and the Competition and Consumer Act 2010. A Franchisee Manual and a DVD about the Code are available online at www. accc.gov.au/franchising or by calling the ACCC’s Small Business Help line on 1300 302 021.

AD_FRTOUSEP_11.pdf

Page

17/08/11,

12:11

AD_FRVCSSEP_11.pdf

Page

28/07/11,

11:04

THE THECOMPLETE COMPLETEPOS POS SOLUTION SOLUTIONFOR FORYOUR YOUR FOOD FOODFRANCHISE FRANCHISE • Centralised • Centralised LIVELIVE reporting reporting

•

• Centralised Menu Management • Centralised Menu Management

•

• Centralised Loyalty system • Centralised Loyalty system

•

• Franchisee KPI Management Tool Tool • Franchisee KPI Management

•

• Web Portal for Franchisee Login • Web Portal for Franchisee Login

•

• Online Ordering Interface • Online Ordering Interface

•

• Social Media Integration • Social Media Integration

•

• True 24/724/7 Nationwide Support • True Nationwide Support

• “I was“Ipleasantly was pleasantly surprised surprised at theat simplicity the simplicity and the accuracy of theof OrderMate stock stock and the accuracy the OrderMate control system. We areWe now everything control system. aretracking now tracking everything down down to ourto packaging and even ice; our packaging andour even our ice; our percentages have never lookedlooked so good.” our percentages have never so good.” FRANK TADDEO FRANK TADDEO CEO Fasta PastaPasta Australia CEO Fasta Australia

Sydney Sydney • Melbourne • Melbourne • Adelaide • Adelaide • Perth • Perth • Brisbane • Brisbane

OrderMate OrderMate POS 59 Fennell POS 59 Street FennellPort Street Melbourne Port Melbourne Victoria Victoria 3207 3207 TEL FAX 101sales@ordermate.com.au EMAIL sales@ordermate.com.au TEL 1300 6671300 067 667 FAX067 1300 6671300 101 667 EMAIL

Ord TEL

www.OrderMate.com.au www.OrderMate.com.au

FR.MARAPR12.PG099.pdf

Page

22/02/12,

10:02

Marketing|Issues

One of the main reasons for investing in a franchise is the marketing support and experience that comes in the package. But who pays for the marketing and where do the funds go?

DOLLARS GO? M

arketing is an integral part of any business. Communicating a message about your brand, your service, your latest promotional offer, is an essential process in business strategy, but with a franchise network the franchisee

is at a distinct advantage. The franchisor will have tried and tested methods for delivering the messages so creating a marketing plan, selecting the appropriate distribution avenues, and producing the marketing material is an easier job for franchisees. There are two aspects of

The franchisee is responsible for funding their own local area marketing even if they are provided with material to conduct the promotions WWW.FRANCHISE.NET.AU

marketing in franchise chains: firstly the promotion of the brand, which benefits franchisees network-wide; secondly there is local area marketing, or LAM, which is directly advertising the individual franchisee. So itâ&#x20AC;&#x2122;s not surprising there are two funding elements to a franchise marketing program.

1. A marketing fund Franchisees are often required to pay into a marketing fund, which is then used to promote the MAR/APR 2012 FRANCHISING | 99

FR.MARAPR12.PG100.pdf

Page

100

22/02/12,

10:03

Issues|Marketing

brand nationally, or across elements of the network. This could be in the form of a national newspaper advert, a local radio campaign, an ad slot on tv; or it could be the production of a catalogue which is distributed to all franchisees. If franchisees are required to contribute to a marketing fund, the Franchising Code of Conduct requires the franchisor to prepare a financial statement detailing all of the fund’s annual receipts and expenses for the last financial year. This statement has to be prepared and audited within four months of the end of the relevant financial year, and both the financial statement and auditor’s report need to be given to franchisees within 30 days of being prepared. However, if 75 percent of the contributing Australian

100 | FRANCHISING MAR/APR 2012

franchisees in the network agree, the franchisor need not have the fund audited. The reasonable costs of any administration and auditing of the fund must be paid from the fund itself.

2. Local area marketing Conversely, the franchisee is responsible for funding their own local area marketing even if they are provided with material to conduct the promotions – and for many franchisees, the initial franchise package includes a starter pack of marketing tools. It is common for the franchisor’s marketing department to create a series of graphics, approved text and promotional material and the franchisee then picks the appropriate communication tool for the specific

WWW.FRANCHISE.NET.AU

Store-wide plan At café franchise Shingle Inn, marketing manager Amelia Powles says “In the past we’ve focused on incentives such as free movie tickets and Coles Myer vouchers for LAM activity, especially where stores work on building their local database and utilising the information for creating bounce-back offers in-store. “We identified that some stores were undertaking very little or no LAM, while others were spending money on the wrong type of initiatives. So we made the decision to incorporate a LAM stream into our network promotion planning so that all stores can benefit from the marketing department’s expertise, rather than just the stores who were motivated by the incentives. “Even in the first six weeks of this year we can see a difference. Many of the stores who would not previously have consulted with us are regularly in contact with their marketing representative. We believe the outcome will be better return on investment for franchisees and, overall, a stronger brand.”

FR.MARAPR12.PG101.pdf

Page

101

22/02/12,

10:05

Marketing|Issues

promotion, whether that’s a flier for a letterbox drop or a local newspaper advertisement. Promotions are not just limited to this month’s special offer, a bonus gift with purchase or an advert in the local paper; many franchisees choose to interact with community projects and charities in their local area, in addition to the franchisor’s selected fundraising activity. The best franchise networks have a website and social media as part of their marketing campaign, and the rules governing control over franchisee content will differ between the franchise systems. Regardless of the channel, digital or offline, both guidelines tend to apply to marketing projects, with franchisors at times subsidising the costs, says Paola Tanner, director of Fuse Franchise Partners. “The channels are changing quite rapidly and some

easingly use Marketing campaigns incr rnet social media and the inte

franchisors are much more creative, but the basic rules are that local is supported and facilitated by the franchisor.” Sometimes there is a quota the franchisee can order for free, at other times LAM might be driven by incentives or possible supplier rebates. “We know for a fact a lot of franchisors also help in this area, both in the way of an incentive, matching dollars or funding part of a campaign and also some money y from supplier rebates can go into to an LAM fund for each store.” Says franchisor John Newton, n,

The best franchise networks have a website and social media as part of their marketing campaign “At Jumping J-Jays and Stufflers we reduce the franchisees’ marketing fee up to 50 percent and their booking fee by 40 percent when our franchisees excel in their LAM that gives

them more kids data on our database. As our franchisees meet targets of 6000 kids then 9000 kids then the final one of 11000 kids in their territory they get those massive reductions in fees.” F

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 101

FR.MARAPR12.PG10102.pdf

Page

102

21/02/12,

2:14

Issues|Training

TOP MARKS! When you invest in a business and take the reins for the first time, it helps to have some knowledge behind you. That’s the great thing about a franchise – training is part of the package. So before you sign up how can you evaluate the training provided by a franchisor, asks Sarah Stowe

any times in our lives we direct our attention towards a particular situation, whether it’s studying for exams, getting fit for the footy match, the new baby, sorting out family problems, arranging a long-dreamed of overseas trip. Sometimes the processes we go through are familiar; often we have to face a new challenge and that can be confronting. When

you start up your own business, the learning curve is immense, so an ongoing training program is a powerful weapon in your business armoury as a franchisee. There would hardly be a franchise network today that doesn’t provide a training package for incoming franchisees, and many offer further training opportunities through the life of the franchise. No template of the ideal

The most honest evaluation of an effective training program will come from franchisees who have done the training themselves and seen firsthand how it’s prepared them for running the business 102 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

franchise training program exists, so it’s down to the individual to judge whether the knowledge and method of delivery on offer will meet their needs. Ferguson Plarre Bakehouses has a dedicated training team which takes new franchisees through an intensive induction and training schedule in the month before opening. This is followed by up to three weeks of hands-on, in-store training and regular ongoing support. Chris Ferguson, retail manager, Ferguson Plarre Bakehouses says one of the best ways to gain insights into a training program is to go straight to the source. “I’d recommend people considering a franchise to get

AD_FRGELMAR_12.pdf

Page

13/02/12,

11:20

MAKE THE MOVE TOWARDS

SWEET SUCCESS!

Gelatissimo is seeking Franchisees with a passion for all things Italian! Since opening as a small family business 20 years ago, Gelatissimo has become Australia’s largest gelato franchise and its international expansion includes the home of gelato, Italy. Unlike its competitors, Gelatissimo makes fresh gelato in-store daily, supported by a brand that embodies style and sophistication. As well as creating a retailing point of difference using a system that is simple for franchisees to run, Gelatissimo has an enviable performance record that is defying today’s challenging trading environment. The average Gelatissimo store turnover is $776,000* and comparative store sales growth has averaged a positive 8.29%* over the last two years. This reflects Gelatissimo’s commitment to our franchisees, including full training and ongoing support from the operations and marketing team, brand building and local store marketing. Unlike many franchise systems Gelatissimo charge a flat royalty fee instead of a percentage of your sales, so you reap the rewards when your business grows! Gelatissimo is recruiting franchisees with energy and enthusiasm for delivering great products and excellent customer service. If you want to change your lifestyle through investing in a business that is fun, flexible and financially rewarding,

Call Karen on (02) 8845 0100 or email franchise@gelatissimo.com.au

Franchise opportunities available in selected areas across Australia

Now with gelaterias in Australia, Singapore, Indonesia, Malaysia, Philippines, Kuwait and Italy GELATISSIMO IS PROUDLY AUSTRALIAN OWNED AND OPERATED *Sales figures based on the last 12 months turnover as at January 2012 inc GST. Increases based on comparative moving annual turnover for the last 48 months.

FR.MARAPR12.PG10104.pdf

Page

104

21/02/12,

2:14

Issues|Training

F I CE OF

in touch with a couple of the group’s existing franchisees. The most honest evaluation of an effective training program will come from franchisees who have done the training themselves and seen firsthand how it’s prepared them for running the business. Many of our franchisees have joined Ferguson Plarre after positive endorsements from our existing network,” says Ferguson. “Our average franchisee has been with the group for over eight years. We feel it is a pretty good indication that our initial training and our ongoing support is effective in helping them not just run their business, but hone it over time for continued growth. “Organic growth is also a good indicator that the franchise model and the support being offered is working well. If you have franchisees asking for a second or third franchise, you know you’re doing something right.”

The detail The franchise consultancy Sherpa Group suggests franchisees should also evaluate the delivery of the training programs. Look for a balance between practical and theoretical elements in the training, and find out if franchisees have found the program engaging, enjoyable, memorable and easy to understand. Head sherpa, Vicki Prout, says relevant case studies combined with personal experiences greatly assist in the learning. Franchisors can also include franchisees, suppliers and business 104 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

10 KEY POINTS TO CONSIDER • How intensive is the initial training period? • Will the training be available when you need it? • Is the training skills based? • Will there be small business training included? • For a retail business, will there be on-site training? • Are initial training costs included in the upfront fee? • How can franchisees source ongoing training? • What training is available for managers and staff? • Does the franchisor make training modules available online? • What do existing franchisees say about the training? advisers in the line-up of training providers, she suggests. “Bringing in external people for training is also a good idea; it breaks up the sessions and allows the franchisee to interact with different people in the franchise network. This could be a supplier, or software provider, a legal or accountant adviser, or could be another franchisee,” she says. Franchisees who have an opportunity to meet external partners in the business instantly begin to feel a part of the franchise network, Prout adds. F

AD_FRSILJAN_12.pdf

Page

18/11/11,

3:33

The best funding decision youâ&#x20AC;&#x2122;ll ever make!

Would access to pre-approved ďŹ nance help you to secure your new franchise business?

FR.MARAPR12.PG106.pdf

Page

106

22/02/12,

11:33

How to|Site location

Key questions franchisees need to ask franchisors before choosing a retail location. By Sean Richards, director, product management, Asia Pacific, Pitney Bowes Software

POINTING C

hoosing a site for a retail business has long-term consequences. A great site will contribute to long term profits and growth. A poor site will have the opposite effect. Many would argue that, while gut feel, good luck and sensible planning counts for a lot, the retail sector is increasingly relying

106 | FRANCHISING MAR/APR 2012

on sophisticated modelling tools to remove much of the guesswork. However, franchisees should realise that site modelling has a lot more variables than franchisers let on. Pitney Bowes Software has a long association with the retail sector through the provision of some of the most sophisticated

WWW.FRANCHISE.NET.AU

and powerful site modelling tools available. Over the years it has seen the same mistakes and assumptions made when it comes to franchises relying on site modelling that third parties have prepared for them. Here are the key questions franchisees should ask before accepting recommendations for a >> continues on page 109

AD_FRATSJAN_12.pdf

Page

14/11/11,

9:46

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

Your Appliance

Tagging Services franchise ticks all the right boxes Ö.

Low entry costs

Large territories

Access to an established ATS Client base

Sales and Marketing support

High level of administration and operational support

Report preparation, invoicing, debt collection handled for you!

Genuine repeat business

Full training provided – no electrical experience required

Not weather dependant

Part of the $10 billion safety industry

For further information visit

Winner FCA Emerging Franchisor of the Year 2011

appliancetaggingservices.com.au or contact Steve Wren 0401 655 655 steve@ats.com.au

AD_FRSAFMAR_12.pdf SQ-FranMagAd-March2012.ai

The safety professionals! www.safetyquip.com.au

Page

2/3/2012

3/02/12,

2:09

10:16:28 AM

Looking for a business offering financial security + weekends free? I found one!

RECESSION RESISTANT

My sales have continued to grow even during the GFC and more recent economic downturn.

FAMILY FRIENDLY

Hi. I’m Patrick from SafetyQuip Sunshine Coast. Call me personally on 0415 768 034 and I’ll tell you about SafetyQuip from a franchisee’s perspective.

I get to enjoy weekends with the family, holidays & Christmas closures.

GROWTH INDUSTRY

CMY

I’m ideally positioned to tap into the $2 billion+ workplace safety market. I’ve reached multi-million $ annual sales with heaps more potential.

SIX-TIER BUSINESS MODEL

From a modest entry point, I now have a successful distribution/trade centre and a mobile sales fleet.

MULTIPLE SALES CHANNELS I get sales through our mobile service & trade centre, but also via our website and phoned/faxed/emailed orders.

BROAD CUSTOMER BASE

I sell safety products to everyone. It’s hard to find a business that can’t benefit from using my products.

BUILD SOLID CAPITAL GAIN A generous 5+5+5 year franchise agreement gives me time to build a business of substantial value.

BUSINESS WITH STATURE

I’m proud to be in the safety business. Our products help people just like you and me return home safely each day.

Patrick Carmody Award-winning franchisee

Sunshine Coast

FR.MARAPR12.PG109.pdf

Page

109

22/02/12,

11:34

Site location|How to

>> continued from page 106

retail location generated by a site modelling service or software.

Nine key questions 1. Was an experienced modeller used to develop the site model? Building reliable site models requires care and diligence throughout the modelling process. An experienced modeller will produce accurate models that reflect assumptions and data that corresponds to the type of retail site being considered. 2. How large is the customer database that was used to model the site? Retail site models will rely on customer data from other stores to identify the typical characteristics of a customer. This is used to map the new store site to a location that reflects a population with matching characteristics. Relying on a small sample of customer information

in modelling can lead to bias and poor recommendations. 3. How will local competition impact the proposed store site? Having competitors close by is not always a negative. In many cases, being part of a known precinct that includes competing stores is

data for each store as possible. This will make the model more relevant. Using national data will only skew results. The accuracy and size of the demographic database used to produce site models needs to be large enough to reduce the chance of bias but not so large that it doesn’t truly

The key to good retail modelling is to understand which factors have the most impact on a store location and not assume that every site is affected in the same way a major advantage in attracting customers. However, this is not true for all types of retailers. Study competitive data from models closely and challenge assumptions about the benefits or problems of having competitors close by. 4. Was local data or national data used in the process? Try to gather as much local

reflect the characteristics of the catchment that is expected to become customers. 5. Was this model used for other situations? Many retailers try to use a ‘onesize fits all’ model but this simply won’t work. The key to good retail modelling is to understand which factors have the most

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 109

FR.MARAPR12.PG110.pdf

Page

110

22/02/12,

11:35

How to|Site location

impact on a store location and not assume that every site is affected in the same way. 6. Have the store locations been verified? A model will produce many different options for a store location. However, addresses provided can sometimes be wrong with the actual ideal location being many kilometres

Good retail modelling leads to good site selection

Too many minor or irrelevant variables simply produce more complex models with greater possibility for error or misinterpretation. It is important to remember the maxim: make the important measurable, not the measurable important. Donâ&#x20AC;&#x2122;t just include easily established variables. Get all of the right variables, even those difficult to determine.

Will a site near competing stores draw customers to your outlet? away from the suggested site. Check that address verification was carried out in the database before taking the modelâ&#x20AC;&#x2122;s recommendations on face value. 7. Which variables were used in the model? A model is only as good as the variables that were included.

HOW SWEET IT IS! Full-time income with part-time hours

8. How many variables were used in the process? The wrong variables in a model can cause more harm than good. Using too many variables dilutes

the impact of the most important variables, thus making accurate forecasts less likely. Variables that describe a very small portion of the population are more likely to produce a false representation of the general population. Robust, well validated models only use essential variables, and nothing more. 9. What does the model fail to represent? The aim of modelling attempts to explain highly complex and changing environments. Many factors that are not easily measureable (e.g. operations)

s No qualifications needed s Full training and support provided s Your vending machines do all the work, selling for you 24/7 s No staff For more information and to get started go to or call

www.rpvending.com.au

1800 066 112 AUSTRALIA AND NEW ZEALAND WIDE

110 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

AD_FRNFIMAR_12.pdf

Page

1/02/12,

11:51

UNFORTUNATELY, AS WE GO ABOUT SAVING FRANCHISED BUSINESSES MONEY ON THEIR INSURANCE, WE SEEM TO BE UPSETTING SOME PEOPLE ALONG THE WAY. To ﬁnd out how we can insure a franchised business in just four clicks, speak to Darryl Morris today on 1800 776 747 or email info@mynﬁb.com.au

MYNFIB.COM.AU National Franchise Insurance Brokers Pty Ltd is an authorised representative (ARLN 277977) of LTM Group Pty Ltd (AFSLN 245374)

FR.MARAPR12.PG112.pdf

Page

112

22/02/12,

1:36

How to|Site location

Case study: Mr Rental

AT THE FOREFRONT OF THE FRANCHISING MARKET. PERTH EXPO

WIN A SONY DIGITAL CAMERA!

Franchising May/June 2011 VOL.24/No.3

www.franchise.net.au

Your essential guide to buying a franchise

SYDNEY EXPO

CARD L GIFT TRAVE $500

WIN A $500

TRAVEL VOUCHER!

Franchising www.franchise.net.au

Mar/Apr 2011 VOL.24/No.2

Your essential guide to buying a franchise

WIN $500

BRISBANE

APPLE GIFT CARD!

EXPO PREVIEW

Franchising www.franchise.net.au

Sep/Oct 2011 VOL.24/No.5

Do the sums Are you ready to be a multi-unit franchisee?

Inspire

Your essential guide to buying a franchise

CHARITY SERVE KFC gives back

Opportunity SERVING A COFFEE CULTURE

Do you know what you are buying?

Invest

The franchise v license question in a money-making franchise

Inspire WOK TO THE TOP

AUS $6.95 NZ $7.95

A new strategy for Noodle Box

Opportunities

Should you buy a distressed business?

SIX NEW CONCEPTS IN FAST FOOD

What happens... THE ICE MAKERS: WHAT BASKIN-ROBBINS DOES NEXT when the franchise relationship turns sour ?

A BRAND REFRESH FOR THE CHEESECAKE SHOP

Inspire AUS $6.95 NZ $7.95

SLEEP EASY BEDS FOR BACKS

Opportunities TECH DECK PIZZA GOES DIGITAL

BETTA ELECTRICAL CELEBRATES 50 YEARS IN BUSINESS

This leading consumer publication is for anyone looking to buy into the $128 billion franchising industry. Each issue you’ll receive: Z Inspirational success stories Z Pertinent issues in franchising Z Practical knowledge and advice Z Management tips and much more…

Subscribe for just $45 and take the ﬁrst step in becoming your own boss.

Call us on 1300 360 126 or visit www.franchise.net.au 112 | FRANCHISING MAR/APR 2012

Territory mapping has been fundamental to Mr Rental, a whitegoods, electrical and furniture rental franchise network. Marketing manager Adam Coward says “It pretty much decided our business model. When we first started franchising we had a view of territories we thought appropriate. Then we found certain franchisees do better than others and that certain customer demographics are more successful. Mapping allows us to define the type of customer.” The starting point is Map Info, which outlines not just a territory in terms of the number of residents or businesses, but highlights hot spots. “When a franchisee buys into a franchise the level of mappings needs to be right,” says Coward. The mapping is useful too in keeping franchisees informed about the customers in their territory – franchise areas can be redefined if the demographics change significantly. Mr Rental adds annual ABS statistics to its analysis of a region, and works with marketing business Salmat to hone down to more detailed

customer information. Data is used to plot active clients, to track their spend and find out how best to target them. “As we expand our customer sets, we can use Map Info to target specifics. Salmat gives us a broader view, a suburb perspective of the kind of household. We also look at Roy Morgan data to determine household income. “We like to know where we have wins, where to go to market. It’s a lot more quantifiable. Measurement is what we’re working hard on,” explains Coward. Delivering the right message to a targeted market is cost-effective, and helps local franchisees. “This is the power of the network; we can say to franchisees, you’ve got similar suburbs but they’re getting more wins, why don’t you hook up? If we can get them one or two percent incremental [increases], it can make a difference. “The challenge is how to simplify and communicate, to make it clean and simple to see what opportunities there are.”

affect store performance, while other factors (e.g. visibility ratings) can only be measured in an imperfect manner. Retail models cannot directly model situations that aren’t present in a database of stores that already exist. F Pitney Bowes Software (PBS) was formerly Pitney Bowes Business Insight (PBBI). The company provides multichannel solutions that integrate data management, location intelligence, sophisticated predictive analytics, rules-based decision making and cross-channel customer interaction management. For more information visit www. pitneybowes.com.au/software.

WWW.FRANCHISE.NET.AU

AD_FRKWISEP_11.pdf

Page

12/08/11,

5:13

AD_FRTCSMAR_12.pdf

Page

16/02/12,

11:17

FR.MARAPR12.PG115.pdf

Page

115

22/02/12,

2:00

Finance|Advice

A TAXING

ISSUE If you’re ready to invest in a franchise, then it’s time to think about how best to structure the business to gain maximum tax benefit, writes Tim Kilham

hen you decide that you want to take the franchising path to business ownership you will also need to consider the legal framework for the business that you will be building. Certain major objectives must be considered when planning a business structure; for instance the minimisation of income tax and capital gains tax, the maximisation of asset protection, and the minimisation of risk, of cost and of complexity. Sometimes these objectives are conflicting: the structure that results in minimising risk and best protecting assets is not necessarily the one that minimises cost and complexity. So the franchisee’s attitude to these objectives will always affect the choice of structure; some franchisees prefer simplicity, some prefer the best possible asset protection. In choosing the best structure, the franchisee’s personal circumstances must also be added to the WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 115

AD_FRMESMAR_12.pdf

Page

1/02/12,

11:54

FR.MARAPR12.PG117.pdf

Page

117

22/02/12,

2:00

Finance|Advice

mix. These are circumstances such as age, marital status, number and age of children, borrowings for the purchase of the franchise and so on. The most suitable business framework will emerge from this combination of personal attitudes, personal circumstances and major objectives.

If you operate as a sole trader, then you will have to pay tax on all the profits of the business This article concentrates on income tax considerations when planning a business structure, and will therefore largely ignore the other four major objectives listed above.

Types of business structures The business structures available for use in Australia are: • Sole trader [also known as sole proprietor] • Partnership [two or more people or entities operating a business together. The partners can be a mix of individuals, companies or trusts] • Companies [there are various types of companies, the most common being a private company] • Trusts [there are a number of different types of

trusts, the most common being discretionary trusts. These trusts are often called family trusts] The system of taxation in Australia requires, broadly, that tax be paid on profits, with the tax sometimes being paid by individuals and sometimes by the entity [company or trust]. 1. Sole trader If you operate as a sole trader, then you will have to pay tax on all the profits of the business. You have no ability to split the profits with other people [other than by paying salaries to employees for work done]. Accordingly you, the individual franchisee, will pay tax on your income at the same rates as an individual who receives a salary, or an individual who receives investment income. The rate of tax payable by an individual varies from 0 percent [up to income of about $16,000 for most individuals] to 45 percent for income in excess of $180,000. To these rates must be added the Medicare levy of 1.5 percent. 2. Partnerships Each partner pays tax on their share of profits based on the tax rate applicable to that partner. So if the partners are individuals [the most common form of partnership], then each partner includes their share

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

MAR/APR 2012 FRANCHISING | 117

AD_FR10TMAR_12.pdf

Page

13/02/12,

11:17

Who is going to be Australia’s next

? Find out on

topfranchise.com.au You only get one chance to make the right decision when it comes to purchasing a franchise. Visit topfranchise.com.au to see who stacks up in the updated rankings.

Coming in early May Check out the brand new top10 list of franchises as voted by their franchisees

e: info@10thousandfeet.com

��

t: 02 8080 7544

FR.MARAPR12.PG119.pdf

Page

119

22/02/12,

2:02

Finance|Advice

of partnership income in their income tax return and pays tax on that share of income in the same way [and at the same rate] as any other individual. It follows that, depending on the level of income, the rate of tax will vary from 0 percent to 45 percent. Partnerships, unlike sole proprietorship, therefore provide the ability to split income with business partners or family members. It is important to know that it is not acceptable to the tax office for partners’ share of profits to be changed purely for tax purposes. You cannot have one partner receive, say, 80 percent of the partnership share of profits in one year and 50 percent in the next year, if the change of allocation each year is done simply to achieve the best tax outcome. The tax office would view this as tax evasion. A further word of caution: splitting income with a partner (or splitting income using a company or partnership as explained later in this article) can be very tax effective. However, the nature of your franchise needs to be such that you are running a personal services business rather than deriving personal services income. Both of these phrases are technical terms and a discussion of these terms and concepts is beyond the scope of this article. What is important about the concepts, though, is that if you are deriving personal

Partnerships, unlike sole proprietorship, provide the ability to split income with business partners or family members services income, the tax office does not accept that you can split your income and will tax you on all of it, no matter whether you have tried to use a company, trust or partnership to split that income. 3. Companies Companies pay income tax on their profits at 30 percent. This means that if you set up your new franchise as a company, the company will pay 30 percent tax on the excess of its income over its expenses. However, expenses include salaries paid to employees and you can be an employee of the company even if you own all or part of the company. It follows then that you, as the individual running the company, will not pay tax on 30 percent on all the income. If you paid yourself a salary, then you will pay tax on that salary as an individual (just like any other salaried employee) and the company will pay WWW.FRANCHISE.NET.AU

tax at 30 percent on any profits it makes. As an example, if the profits of the company are $57,000 before a salary for you, and you pay yourself wages of $37,000, you will end up with a total tax liability of $10,650 [tax on salary of $4,650 and company tax of $6,000]. If you did not pay yourself a salary and the company paid tax on the profit of $57,000, the total tax payable by the company would be $17,100. So it makes sense to carefully choose the correct mix of salary and company profits so taxation is minimised. The highest rate of tax payable by a company is 30 percent. The highest rate of tax payable by an individual is 45 percent [plus Medicare levy]. Many people assume that this means it makes sense to structure your affairs such that you should always use a company, and that you should pay company tax as soon as your income gets to the level where your marginal rate of tax is greater than 30 percent. But deciding that you should operate through a company rather than some other structure in order to take advantage of this 30 percent tax rate may not be the correct conclusion for two reasons: • It is more expensive and complicated to run a company than it is to operate as, say, a sole trader, and so some of the apparent tax advantages of a company may be offset by greater costs. • Companies must ultimately pay their profits out as dividends. When dividends are paid to shareholders, shareholders receive the dividend together with a 30 percent imputation credit [the credit for the tax paid by the company]. If the shareholders’ marginal rate of tax in the year the dividend is received is greater than 30 percent then the shareholder will have to pay additional tax on the dividend [in the worst case, tax at 15 percent because the maximum tax rate for an individual is 45 percent and the imputation credit attached to the dividend is 30 percent]. The tax rate therefore ends up at 45 percent, the same as if the individual had paid tax on all the income in the first place. If the individual’s marginal rate of tax is less than 45 percent, there will be a tax saving, as the overall rate of tax will be less than 45 percent. If the individual’s marginal rate of tax is less than 30 percent, then the excess imputation credits are refunded to the individual. 4. Trusts There are a number of different types of trusts, but for the purposes of this article we will discuss discretionary trusts [often called family trusts]. A trust, like a company, makes a profit, the MAR/APR 2012 FRANCHISING | 119

FR.MARAPR12.PG120.pdf

Page

120

22/02/12,

2:02

Advice|Finance

profit being the difference between its income and its expenses. Just as for a company, its profit is calculated after deducting expenses include salaries paid to employees (including the franchisee). The manner in which trusts and companies calculate profits are very similar. Who pays tax on those profits is however very different for companies and trusts. As already discussed, companies pay tax on their profits at 30 percent. Trusts however only pay tax on any profits that are not distributed

Deciding that you should operate through a company rather than some other structure in order to take advantage of the 30 percent tax rate may not be the correct conclusion to beneficiaries. The profits that are distributed to beneficiaries are known as trust distributions. Each individual includes in their tax return these distributions, just as salaries or investment income is included in their tax return. It is usual for all profits of discretionary trusts to be

distributed to beneficiaries. There are sometimes reasons not to distribute all the profits of trusts, but these reasons are usually not related to tax considerations. Who are beneficiaries of trusts? Potential beneficiaries of trusts are described in the trust deed at the time the trust is set up. These potential beneficiaries are usually not mentioned by name but defined by their relationship to the main beneficiaries of the trust. If a husband and wife set up a discretionary trust, the potential beneficiaries are usually that couple and their relatives, including previous generations [parents, grandparents etc.] and future generations [children, grandchildren etc.]. Potential beneficiaries also normally include any companies and trusts in which any of the potential individual beneficiaries have an interest. Actual beneficiaries of trusts are those potential beneficiaries who the trustee of the trust decides should actually receive some or all of the income of the trust (as trust distributions) each year. The trustee [which will be, or will be controlled by, the franchisee] has total discretion in determining which potential beneficiaries should actually receive some of the profits, and what share those beneficiaries should receive. It follows that there is great flexibility in splitting the profits of the trust, and therefore in minimising what tax is paid on those profits. Contrast this with the sole proprietor who must pay tax on all the profits, or the partners who must pay tax on their share of the partnership profits. Given the right circumstances â&#x20AC;&#x201C; having beneficiaries who are able to receive income at low tax rates â&#x20AC;&#x201C; a trust is far more flexible and tax effective than a company. With a company the only way of paying out profits is by means of dividends to shareholders. The percentage of the dividend that each shareholder receives is dependent on their percentage shareholding. With a trust, any amount can be distributed to any beneficiary in any year, at the discretion of the trustee.

Conclusion

At the beginning of this article, it was stated that consideration of income tax issues is just one of five major objectives to be considered in determining the most suitable structure for a new franchise business. It is clear from the matters set out in this article that it is a very important objective â&#x20AC;&#x201C; perhaps the most important objective. F

Company, partnership, sole trader, trust: which business structure is right for you?

120| FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

Tim Kilham is a director of Lanyon Partners Chartered Accountants and heads up the franchising division. Tim has provided advice to, and acted for, many franchisees and franchisors, and is particularly active in advising on the purchase and set up of franchise businesses. Contact Tim at: timk@lanyonpartners.com.au

AD_FRMANMAR_12.pdf

Page

2/02/12,

5:15

UNIQUE FRANCHISE OPPORTUNITY JOIN AUSTRALIAâ&#x20AC;&#x2122;S FASTEST GROWING

REGISTERED TRAINING ORGANISATION The Management Institute of Australia is a Nationally Registered Training Organisation.

We take care of the compliance issues and tendering so you can get on with running your business and looking after your clients.

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

FR.MARAPR12.PG122.pdf

Page

122

21/02/12,

12:54

Advice LEGIT | LEGALESE MADE EASY

Why you should plan your exit strategy

RAYNIA THEODORE Raynia Theodore is principal, corporate advisory and franchising team at Mason Sier Turnbull Lawyers

very business owner needs a strategy for exiting the business; succession planning is often about the owner’s inevitable death or retirement but it may be disability, a dispute, a longing for something different or the end of an agreement that drives the need to leave the business. It is important to make an early assessment to ensure that you are ready to take the best advantage of any given circumstance.

Start asking questions You should consider when your business will reach its peak. Ask yourself what is likely to happen in the economy and will that have any impact on your business? Think of the options you have when the business is at its optimum. How strong and clear are your systems and processes? What is your financial goal and what is required to make it happen? Are you the key person? What if something happens to you and as a result you are absent from the business indefinitely – can any of your family members run the business? You will need to consider how long it will take to sell if you are forced to retire. Will the buyer be an existing employee or independent third party? Do you understand exactly what roles and responsibilities

A sale, transfer or assignment of a franchise business is also subject to a franchise agreement between the selling franchisee and the franchisor which adds another level of complexity you fulfil and what characteristics and qualities you possess that allow you to run the business in the manner in which you do? Are there other business partners to consider? What are the risks to the business of a change of ownership or management and how can these risks be managed?

Plan ahead An unplanned retirement can cause many family conflicts in relation to the operational control of the business and the rights to the profits of and capital 122| FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

from the business. But you can avoid such situations and, with effective planning, can ensure each family member receives a fair share when you retire. In the case of a partnership, the partnership as a group must agree in advance how one of the partners can exit the business (whether voluntarily or due to death or disability) so that it is fair to all parties. A Buy and Sell Agreement can operate as a business succession planning device to allow your business to continue in the event that you or any of your partners die or become totally and permanently disabled and to provide for funding mechanisms, such as insurance policies, to enable partners to fund the purchase of another partner’s interest. While the above is applicable to franchise businesses, a sale, transfer or assignment of a franchise business is also subject to a franchise agreement between the selling franchisee and the franchisor which adds another level of complexity.

Franchise agreement The franchise agreement will often set limits on the time that a franchisee may be absent from the business and the time frame within which a suitable replacement (acceptable by the franchisor) must be found to take the franchisee’s or its key manager’s position in the case of death or illness. Restrictions will also be placed on the franchisee’s ability to sell: in order to protect the system, the franchisor will commonly reserve a first right to purchase the franchise and a right to approve the transferee or its manager. The transaction will also be delayed by the franchisor wanting to review the sale contract, approve the transfer and the new incoming franchisee. An important aspect will be the training, which the transferee is required to undertake before the transfer can take place. Similar requirements will also apply in the situations where the franchise undergoes internal restructure or a key member is no longer able to be involved in the franchise business due to illness or death. Franchise succession planning should also include getting good independent legal and accounting advice; evaluating your role in the franchise business; assessing and training your potential successor(s); ensuring all preconditions to the transfer of the franchise business listed in the franchise agreement have been met; and finally, be ready to sell at short notice. F

AD_FRTOTMAR_12.pdf

Page

8/02/12,

10:41

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

TOT206_FRANCHISE AD 275x205_FINAL.indd 2

EVERY TOOL EVERY TRADE

TOT206_FRAN_FEB12

Owner Beneﬁts:

6/02/12 2:41 PM

AD_FRREDNOV_11.pdf

Page

18/10/11,

10:36

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

8676 RedCat Mobile Phone Leaflet 205x275.indd 1

4 REDCAT or visit www.redcat.com.au

17/10/11 2:36 PM

FR.MARAPR12.PG125.pdf

Page

125

22/02/12,

3:05

Opinion THE SKETCH | TRENDS AND DEVELOPMENTS

Taking the plunge — is there ever a wrong time to buy a franchise?

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

eaders of this column may be aware that it has been suggested that “To every thing there is a season, and a time for every purpose under heaven”. Although some may attribute this proposition to The Byrds’ 1965 hit “Turn, Turn, Turn” (possibly known to younger readers from the soundtrack of Forrest Gump) the source is in fact the Book of Ecclesiastes in the Bible. It was Pete Seeger who originally set Ecclesiastes 3:18 to music adding only the title phrase “turn, turn, turn” and the last line –“a time for peace, I swear it’s not too late”. Those familiar with Ecclesiastes 3:1-8 or with The Byrds’ cover of the Pete Seeger song will know that the text makes reference to a number of “times”– a time to be born and to die, to plant and to reap, to kill and to heal, to break down and to build up, to weep and to laugh, to mourn and to dance, to get and to lose – to mention only a few. The reputed author of Ecclesiastes 3 is King Solomon who is renowned for his wisdom. Given that the Bible records that he had 700 wives and 300 concubines (1 Kings 11:1-3) it is perhaps surprising that it is for his wisdom rather than for his management skills that he is remembered. Unfortunately, King Solomon did not apply his wisdom to franchising – or when not to buy a franchise – but King Solomon, if his recorded form is any guide, would have been wise enough not to

There is only one time never to buy a franchise — and that is when you have not undertaken the necessary due diligence required for making the significant financial, legal and emotional commitment inevitably involved specify exactly when these times would be. It falls to your columnist, who has neither the wisdom nor the management skills of Solomon to address, in the remaining words, the editor’s question “Is there ever a wrong time to buy a franchise?” There is a wrong time to buy a franchise – but I am sorry that I cannot give you the easy answer such WWW.FRANCHISE.NET.AU

as never in a recession, or never when you have just been retrenched, or never when interest rates go up, or never on a Friday. There is only one time never to buy a franchise – and that is when you have not undertaken the necessary due diligence required for making the significant financial, legal and emotional commitment inevitably involved. Due diligence is not a simple, easy or straightforward process. It involves an informed consideration of the business that is being franchised, of the system through which it is franchised, of the financial factors, of the franchisor’s track record and capacity to deliver, and, of course, of your own preparedness to work within the constraints inherent in the franchise. The Disclosure Document which must be provided to a prospective franchisee 14 days before the franchise agreement is signed or a nonrefundable payment must contain on its first page the statements that “Entering into a franchise is a serious undertaking”, that “Franchising is a business and, like any other business [the business] could fail” and, in masterly understatement, the note that in this eventuality “this could have consequences for the franchisee”. The consequences of business failure – whether of the franchisor or the franchisee – will not be pretty. The Disclosure Document “warnings” must be taken seriously. There is a time to buy a franchise. That time is when the prospective franchisee has completed an informed and rigorous due diligence exercise which suggests that the franchise opportunity is viable and realistic. I expect that King Solomon would have given similar advice. F MAR/APR 2012 FRANCHISING | 125

FR.MARAPR12.PG126.pdf

Page

126

21/02/12,

2:03

Opinion PEOPLE | LEADERSHIP

Decisions, decisions

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

eciding which franchise to buy can be daunting; this is perfectly natural as it is a big and important decision. Big, important decisions often share three characteristics: a high level of complexity, they cannot easily be reversed, and are likely to impact significantly on our lifestyle. With this in mind, here are some tips for making good decisions based on psychological research.

Get clarity When faced with a complex decision take the time to gather as much relevant information as possible. Ask yourself “What other facts will help me to make a good decision?” Once you have considered the facts at a conscious level, give your subconscious mind the opportunity to get to work. It is amazing how this can improve your ability to come to a good decision and sort the wheat from the chaff. The subconscious mind works best when the conscious mind is distracted in a totally unrelated task. So go off and do a puzzle, read a book or do some sort of physical activity that you can immerse yourself in. You’ll find when you come back to the decision you will have greater clarity.

Check the facts While we like to think of ourselves as smart and rational, there is a wealth of research that shows we humans are highly irrational in our decision making processes. We are often influenced by irrelevant or flawed information, and salespeople can use this to persuade us to their way of thinking. For instance a franchise salesperson may pretend to be fascinated by you to make you more likely to trust them and their recommendations. Or they may dazzle you with impressive sounding claims which have no relevance or

126| FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

factual evidence behind them. To guard against this, ask yourself these three questions: • “Am I being influenced by charm, or by good information?” • “How relevant is this information to the potential success of the business?” • “Where is the evidence to back up this claim?”

Never make decisions when you’re “too”... Another cause of poor decisions is our emotions. Emotions cloud our thinking and cause us to filter out important information. For instance, when we like someone we tend to ignore their faults. When we are feeling disappointed

Emotions cloud our thinking and cause us to filter out important information we tend to magnify obstacles and problems but when we are excited we tend to downplay them. And when we are angry we tend to say or do things we later regret. Someone once said to me, never make a decision when you’re too - too mad, too sad, too glad, too anything! I think this is great advice.

Balance the risk

While on the topic of being ‘too’, the third cause of poor decisions is being too reckless or too risk averse. I recently needed to take out a new mortgage. The level of risk aversion shown by the bank led me to almost take my business elsewhere. I had the feeling someone behind a desk was more interested in covering their rear with endless information than in making a prudent decision on our ability to pay back the loan. A useful way to achieve a balance between being too reckless or too risk averse is to consult with someone who has a different risk profile to you. The reason for this is when people with similar approaches get together they tend to exaggerate their tendencies. So whether you are overwhelmed with fears and concerns, or you feel you urgently want to jump into a quick decision, talk this through with someone who is likely to challenge your assumptions. Of course despite our best endeavours, no-one gets every decision right. As Henry Ford said, “Failure is simply the opportunity to begin again, this time more intelligently.” F

AD_FRCOOMAR_12.pdf

Page

17/02/12,

2:17:30

AEDT

Accelerating success. Accelerating success. Accelerating success. For Lease Only 3 Shops Lease Only 3 Shops ForFor Lease Only 3 Shops Shops

FOR LEASE LEASE FOR LEASE FORFOR LEASE

‘Sea Coolum’ Coolum Beach, Sunshine Coast, Queensland • Join‘Sea Red Rooster, 7 Eleven, Baskin Robbins and • Opposite patrolled beach, council car parking and Coolum’ Coolum Beach, Sunshine Coast, Queensland ‘Sea Coolum’ Coolum Beach, Sunshine Coast, Queensland ‘Sea Coolum’ Coolum Beach, Sunshine Coast, Queensland Dominos Pizza caravan park •Red JoininRooster, Red Rooster, 7 Eleven, Robbins • popular Opposite patrolled beach, council car parking •• Join 7tourist Eleven, BaskinBaskin Robbins and and •• Opposite patrolled beach, council car parking and and Located popular area Near Coolum Beach Surf Club • Join Red Rooster, 7 Eleven, Baskin Robbins and • Opposite patrolled beach, council car parking and Dominos caravan Dominos Pizza Pizza caravan park park 2 2 Dominos Pizza caravan park • Near other prominent tenants with McDonalds adjoining • Areas for lease are 2 x 72m and 1 x 86m • Located in popular Near popular Coolum Surf Club • Located in popular touristtourist area area • Near• popular Coolum BeachBeach Surf Club • Located in popular tourist area • Near popular Coolum Beach Surf Club Lease • other Near other prominent tenants with McDonalds adjoining • Areas for are lease 2 x2 72m 1 x2 86m2 •For Near prominent tenants with McDonalds adjoining • Areas for lease 2 are x 72m and 12 and x 86m •www.colliers.com.au/500062816 Near other prominent tenants with McDonalds adjoining • Areas for lease are 2 x 72m2 and 1 x 86m2 For Lease For Lease For Lease Brad Moore Nick Wilson www.colliers.com.au/500062816 www.colliers.com.au/500062816 www.colliers.com.au/500062816 0428 481 008 0406 630 172 07 5478 07 5478 Brad3788 Moore Nick3788 Wilson Brad Moore Nick Wilson Brad Moore Nick Wilson 0428 481 008 0406 630 172 0428 481 008 0406 630 172 www.colliers.com.au 0428 481 008 0406 630 172 07 5478 07 5478 07 5478 3788 3788 07 5478 3788 3788 07 5478 3788 07 5478 3788 www.colliers.com.au www.colliers.com.au www.colliers.com.au

FR.MARAPR12.PG128.pdf

Page

128

21/02/12,

1:32

Checklist TO DO LIST | HELP GUIDE

20 things to check before you invest Before you purchase your franchise you need to tick off all the must-do items. Check the following:

1. Are you confident in the franchisor? 2. Have you seen a disclosure document? 3. Have you evaluated the financial returns? 4. Do you know all the expenses franchisees are required to pay? 5. Have you worked out your operating costs? 6. Do you know the term of the agreement? 7. Is the business operating from fixed or mobile premises? 8. Are you working within a territory? If so, is the area exclusive? 9. Are you restricted in your product purchase? 10. Are you required to reach a minimum performance level?

11. What are the franchisee and franchisor obligations? 12. What training is available and who pays for it? 13. Who owns the intellectual property and what is licensed to the franchisee? 14. What marketing will the franchisor implement? 15. Who pays for the marketing? 16. What is the dispute resolution process? 17. Do you know what it is like to be a franchisee? 18. Can you assign the franchised business? 19. How can the franchisor or franchisee terminate the Franchise Agreement? 20. What restrictions are there on the franchisee and guarantor operating a similar business? [with thanks to Mason Sier Turnbull]

Would you like to have tighter control over your print costs, logistics and brand consistency?

At HMS weâ&#x20AC;&#x2122;ll reduce your print costs to give you a greater flexibility on your media spend, free up valuable internal resources, and allow you to retain total and complete control over your storage and distribution. What we do. Build or maintain your brand with consistency in print and online media

# media and distribution.

P: Leonie on 0412 110 112 E: info@hmsprintmanagement.com.au

Services include: $ % ! & ' (

) *

HMS Print Management P: 1300 912 550 F: 1300 912 650 E: info@hmsprintmanagement.com.au W: www.hmsprintmanagement.com.au

128| FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

AD_FRLMAMAR_12.pdf

Page

9/02/12,

9:28

EVERYBODY’S LOOKING FOR AN OPPORTUNITY LIKE THIS… HIGH MARGINS, B2B MARKETPLACE AND WORK/LIFE BALANCE...ONLY WORK 5 DAYS A WEEK! We provide our licensees industry leading resources, systems and processes…proven sales and marketing systems and the ability to provide clients nationally recognised certificates and diplomas under our Registered Training Organisation (AUS) and Private Training Establishment (NZ) status.

As a licensee of LMA you’ll be able to guarantee your clients 3 things • Permanent behavioural change of participants • Measurable results against pre-determined goals and objectives • Identifiable ROI per participant

Here’s 7 reasons why you should contact us • Realistic investment range • Comprehensive induction and training • On-going advanced training and development • Established brand with over 40 years experience • Web based operations and communication systems • Proven sales and marketing systems support • Registered and respected Training Organisation

If You

• Want to keep your weekends free by working 5 days a week • Have experience in sales, sales management and/or leadership positions, and • Want to leverage an established brand and business while enjoying the freedom of your own business...

Contact James Archer now!

License opportunities available in selected areas across Australia & New Zealand Call James Archer to receive your FREE information pack AU: 1800 333 270 (Free Call) NZ: 0800 333 270 (Free Call) or email: jarcher@lma.biz www.lma.biz

FR.MARAPR12.PG130.pdf

Online directory

Page

130

22/02/12,

2:27

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

Searching for a particular ular franchise? u

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

Website: VIC: NSW: QLD:

www.franchise.net.au

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

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

PROFILE: 7-Eleven is a global success story with over 40,000 stores world wide. This year 7-Eleven will grow by over 200 stores, 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. Australian Retailer of the Year 2011

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.

* expenses incorporated in the 7-Eleven charge

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

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

Start up costs from: $43,500 + GST Start up costs from: $200,000 to $345,000 PROFILE: PROFILE:

FCA EMERGING FRANCHISOR OF THE YEAR 2011

Anytime Fitness is one of Australia’s fastest growing franchise networks, with over

Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started?

140 local clubs open in just over 3 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.

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

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

Start up costs from: $34,990 + GST

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

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!

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.

130 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

FR.MARAPR12.PG131.pdf

Page

131

22/02/12,

2:27

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

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

Start up costs from: 30% or $150k whichever is highest.

Start up costs from: $350,000-$600,000

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 13.9 per cent share (Roy Morgan single source data June 2011) of the $2.8 billion Australian bread market.

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.

Contact: Nick Prohasky Email: Nick.Prohasky@unilever.com Website: www.benandjerry.com.au

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

Start up costs from: $300,000 to $450,000

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 • Market leadership • Advertising investment and support • Operational support • Great margins and a super premium offering • Potential for solid ROI and earnings We want to talk to you about joining our very limited store rollout in Australia.

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.

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

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

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.

Start up costs from: $129,600 + GST PROFILE: Australian owned Cafe2U is the world’s largest mobile coffee company, with over 117 franchises in Australia and 180 worldwide. The business is rapidly expanding due to a simple and proven business model based on weekday success. Cafe2U now included 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.

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 131

FR.MARAPR12.PG132.pdf

Page

132

22/02/12,

2:27

A-Z listings Phone: 1300 094 764 Contact: Tony Melhem Email: franchise@cococubano.com Website: www.cococubano.com

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

Start up costs from: $295 - $550K 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.

PROFILE: Coco Cubano has been inspired by the romance and rustic charm of Cuba as well as the friendly, sophisticated style of the European cafe?:bar experience. We have blended these inspirations to bring a unique, multi¬location cafe?: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.

Phone: 02 8353 5203 or 1300 657 339 Fax: 02 9326 0144 Contact: Holly Boal Email: hollyb@contourshq.net.au Website: www.contoursfranchise.net.au Start up costs from: approx $100,000 to $150,000

PROFILE: Contours is an international female focused ﬁtness group with around 140 franchise locations across Australia. With an Australian based support team, we offer full training, marketing and business support. Contours allows you to run your own business whilst maintaining a work/life balance.

Phone: 03 8102 9200 Fax: 03 8615 7298 Email: growth@dcstrategy.com Website: www.dcstrategy.com

PROFILE: DC Strategy is Australia’s leading business growth specialist with a proven track record of developing the franchise systems and documentation for many of Australia’s leading franchise networks. Our highly experienced consultants assist business owners and franchisors with: • Growth strategy and planning • Franchise system development

• International expansion • Performance & proﬁt improvement

DCS Lawyers is a specialist corporate and commercial law ﬁrm with a proven track record of providing high quality, practical legal advice, aligned to your business objectives. Our areas of expertise include: • Franchise law – franchisor and franchisee • Property and leasing transactions • Trademarks and intellectual property law • Disclosure documents and franchise agreements

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.

132 | FRANCHISING MAR/APR 2012

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.

WWW.FRANCHISE.NET.AU

FR.MARAPR12.PG133.pdf

Page

133

22/02/12,

2:27

A-Z listings Phone: Fax: Contact: Email: Website:

(02) 9838 7575 (02) 9838 0011 Tony Alevras franchise@eurekamultimedia.com.au www.eurekamultimedia.com.au

Phone: 1300 FASTWAY Fax: 02 9264 4966 Website: www.fastway.com.au Start up costs from: $25,000

Start up costs from: $24,500 PROFILE: Eureka Multimedia Pty Limited is the nation’s leading award winning developer and supplier of high quality and affordable multimedia educational software titles. Eureka has over 100 software titles covering a diverse range of categories with many based directly on Australian school curricula, especially in the areas of literacy and numeracy. Eureka commenced franchising to ensure a better representation of its diverse product range and to deliver a higher standard of service to customers. Eureka believes its innovative approach to software development and high quality production, combined with a motivated franchise team, will provide a valuable resource to enhance children’s learning experiences Australia-wide.

PROFILE: Whether you crave a better lifestyle, control over your income or a more 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 • Unparalleled business support and training • Guaranteed income packages* • Exclusive Territories • A well known and trusted brand • A perpetual franchise agreement with no • No weekend work ongoing fees So, if you’re ready for a positive change we’d love to hear from you on 1300 FASTWAY or visit us at www.fastway.com.au *Conditions apply

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

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

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.

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

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.

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.

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 133

FR.MARAPR12.PG134.pdf

Page

134

22/02/12,

2:27

A-Z listings Phone: 02 8845 0100 Fax: 02 8845 0199 Contact: Karen Pollard Email: franchise@gelatissimo.com.au Website: www.gelatissimo.com.au

Phone: 1300 CAR WASH Fax: 03 9923 6490 Contact: Sanam Ali Email: sanam@geowash.com.au Website: www.geowash.com.au

Start up costs from: $350,000

Start up costs from: Roaming Van Model approx $44,000 + GST Shopping Centre Model approx $150,000 + GST

PROFILE: Australia’s largest gelato franchise presents a unique concept; with over 20 years of product development, customer satisfaction and a brand that embodies style and sophistication creating the feel for all things Italian… Creating a retailing point of difference using a system that is simple to run, Gelatissimo has an enviable performance record, with an average store turnover of $776,000* and comparative store sales growth has averaged a positive 8.29%* over the last two years. As part of its commitment to franchisees, Gelatissimo charges a ﬂat royalty fee instead of a percentage of sales, provides full training, ongoing support from its operations and marketing team, brand building and local store marketing. *Sales ﬁgures based on the last 12 months turnover as at January 2012 inc GST. Increases based on comparative moving annual turnover for the last 48 months.

PROFILE: Geowash’s unique concept is revolutionizing the car wash industry in 35 countries around the world. Geowash is now Franchising Australia Wide. Geowash is 100% Ecological and consumes an average of less than 2 litres of water per car wash. Geowash’s unique business model of taking Car Wash to the customers, not just to the home or business but also the car parks of Australia where the customers can have their cars washed whilst in their “idle” time while parked at their work, shopping centre, school, railway station, beach etc. Proﬁt from this unique concept today.

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

Phone: 1300 912 550 or 0412 110 112 Fax: 1300 912 650 Contact: Leonie Harcourt Email: leonie@hmsprintmanagement.com.au Website: www.hmsprintmanagement.com.au

Start up costs from: $250,000-$350,000 PROFILE: HMS Print Management provide print, promotional, warehousing and distribution solutions. We print, store, pick n pack, assemble, provide campaign and mail house management then label and despatch goods to your stores.We reduce your print costs to give you a healthier bottom line. Think of us as your communications health experts, with a remedy for every complaint. We commit to take away the pain of overspending, inefﬁciency and poor delivery and put a smile back on your face. Contact us today for a no obligation print management analysis.

134 | FRANCHISING MAR/APR 2012

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.

WWW.FRANCHISE.NET.AU

FR.MARAPR12.PG135.pdf

Page

135

22/02/12,

2:27

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

Start-up costs from $15,000 ex GST Start up costs from: $44,000

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.

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!”

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

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: $99 per month

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

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.

We can even integrate an online payment system so that payments are collected automatically.

Phone: 0044 (0) 1494 778989 Fax: 0044 (0) 1494 770729 Contact: Gill Thomas, MD Email: headofﬁce@jojingles.co.uk Website: www.jojingles.com and www.jojinglesperth.com.au

Phone: 1300 227 853 Contact: John Newton Email: franchisesales@partycastles.com Website: www.partycastles.com Start up costs from: $45,000

Start up costs: Price on Application for Business Partners Sub-franchise units in Australia from c. $15,000 AUS PROFILE The UK’s leading provider of music, singing and movement classes for babies and pre-school age children is now looking to expand in Australia and New Zealand. Classes started in 1991 and the franchise was established in 1995. We now have over 90 franchisees operating throughout the UK and Ireland and launched our ﬁrst pilot operation in Perth, Western Australia in Otober 2010. Currently more than 25,000 children enjoy our fun and interactive introduction to music and we provide sessions in many Nurseries and Early Years Settings.

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.

We are recognised as an established and ethical franchise providing a great opportunity for individuals with an interest in working with children and running their own business.

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 135

FR.MARAPR12.PG136.pdf

Page

136

22/02/12,

2:27

A-Z listings Phone: (AUS) 1800 334 498 Fax: (AUS) 02 9527 5144 Contact: Luke Manning Email: bdm@justcuts.com Website: www.justcuts.com

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

Start up costs from: $160,000 to $240,000

Start up costs from: $25,700 + GST

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.

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

Phone: 02 9967 5500 Fax: 02 9967 5511 Email: graham.england@kwikkopy.com.au Website: www.kwikkopy.com.au/franchise

Start up costs from: $250,000 (Approx) Start up costs from: $210,000 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: 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.

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: $79,900 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.

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.

Limited opportunities are available across Australia and New Zealand.

136 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

FR.MARAPR12.PG137.pdf

Page

137

22/02/12,

2:27

A-Z listings Phone: 02 9638 8000 Fax: 02 9638 8832 Contact: Mark Futeran Email: mark.futeran@hunterdouglas.com.au Website: www.luxaﬂex.com.au

Phone: 1800 686 997 Fax: 02 8569 0901 Contact: Ben - Sales Manager Email: sales@magazinevending.com.au Website: www.magazinevending.com.au Start up costs from: $29,550

PROFILE: The LUXAFLEX® Window Fashions brand is the market leader in the premium window coverings category in Australia. The LUXAFLEX® Gallery program is the top tier licensee network with over 70 Galleries nationwide with over 30 areas still available in all states, regional & metropolitan areas. The Gallery showrooms provide residential consumers a quality experience with specialised service along with access to large full size operating blinds, shutters and awnings, which has been a key success factor for the program. Providing a fully supported program including customised training, marketing, advertising, web, business support and resources, it is the most comprehensive program in the industry.

PROFILE: Magazine Vending Exclusive Distribution Rights Magazine vending is the ﬁrst proprietor offering this unique innovative concept to the new age vending machine industry. We partnered with established brands to support a new vending concept that would open doors to a new network in vending, where we could offer the consumer a product as an added convenience. We approached ACP Magazines and Wurlitzer with our idea and after two years of intensive research and development, in all aspects of the business from location demographics, supplier agreements, to the mechanics and manufacturing of the state-of-the-art Magazine Vending Kiosks, we are now launching our state of the art Magazine Vending machines across Australia.

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

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

Start up costs from: $150,000-$200,000 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!

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.

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

Phone: 0411 649 594 Fax: 07 3622 2800 Contact: Andrew Roberts Email: andrew.roberts@mrrental.com.au Website: www.mrrental.com.au

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.

Start up costs from: $100,000

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.

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 137

FR.MARAPR12.PG138.pdf

Page

138

22/02/12,

2:27

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

Phone: (08) 9277 8666 Fax: (08) 9277 9666 Contact: Steve Pynt Email: spynt@muzzbuzz.com.au Website: www.muzzbuzz.com.au Start up costs from: $299,000

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.

PROFILE: Being a Muzz Buzz franchisee means you are a member of an established franchise that is currently enjoying unprecedented growth in the Drive Thru Coffee sector. A member of the FCA and ranked 8th for lifestyle by www.topfranchise.com.au franchisee satisfaction survey. By becoming a Muzz Buzz Drive Thru Coffee franchisee you are joining a franchise that is vastly different from other coffee franchises. Drive Thru is the fastest growing sector in the retail coffee industry and Muzz Buzz is number 1 in Drive Thru Coffee. We are actively seeking franchisees for SA, VIC and QLD.

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. 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!.

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.

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: 02 9362 0123 Fax: 02 9362 0124 Contact: NKA Marketing & Advertising Email: info@NKAunleashed.com Website: www.NKAunleashed.com

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: $250,000

PROFILE:

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. 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.

138 | FRANCHISING MAR/APR 2012

Unleash Your Brand Potential with Sydney’s Innovative Marketing & Advertising Agency. The research-founded agency have created methodologies to achieve: • Emotional Engagement with the target audience • Enchanting customer relationships with your brand • Relevance through campaign connections NKA work with Franchisors aiming to evolve their brand, Franchisees aiming to increase their proﬁts & Entrepreneurs interested in franchising their concept. Faced with a Marketing Problem or Opportunity? Talk to NKA on 02 9362 0123 or visit www.NKAunleashed.com

WWW.FRANCHISE.NET.AU

FR.MARAPR12.PG139.pdf

Page

139

22/02/12,

2:27

A-Z listings Phone: 1300 727 129 Fax: 02 8905 0933 Contact: Michelle Castelli Email: michelle.castelli@oporto.com.au Website: www.oporto.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: $450,000-$700,000 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. 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. Become part of this great Aussie success story - Just Gotta Go Oporto!

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. 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. 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.

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 depending on ﬁt out cost, contribution and location PROFILE: Ovenu the professional oven cleaning and detailing service. 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. Our ﬁrst store opened only 4 years ago with proven systems Outback Jacks has rapidly expanded to 24 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.

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.

Contact: Brett Jeffrey Email: AU-Pizzahut.Franchising@yum.com Website: www.pizzahut.com.au/franchise

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: $250,000 - $350,000

Start up costs from: $80,000 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.

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…

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 139

FR.MARAPR12.PG140.pdf

Page

140

22/02/12,

2:27

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

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

Start up costs from: $229,000 inc equipment

Start up costs from: $93,950 plus van

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.

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.

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.

Phone: 1800 066 112 Fax: (02) 9889 8900 Contact: David Green Email: sales@rpvending.com.au Website: www.rpvending.com.au

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.

Start up costs from: $9,000

PROFILE: RP Vending Systems was established in February 1995 and is a national operation specialising in vending machine systems. We provide a unique business opportunity throughout Australia. Our extensive range of drink, snacks, coffee and fresh food vending machines are manufactured in Sydney, Melbourne, Europe and Asia. RP Vending Systems has a comprehensive range of vending equipment, but more importantly provide a complete business start- up system which includes; ﬁnding sites for your machines, ongoing training & support and access to the RP buyer network. This buyer network includes; Cadbury, Coca-Cola, Smiths etc. Full warranties and backup support are available Australia wide.

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: 07 5455 3822 Fax: 07 5455 3616 Contact: Lionel Hedt Email: lionel@safetyquip.com.au Website: www.safetyquip.com.au Start up costs from: $180,000

PROFILE: Workplace safety is a growth industry. Each year Australian businesses spend over $2 billion in the prevention of accidents and injuries in the workplace. SafetyQuip is a B2B distributor of workplace health and safety products. No safety industry experience is required. Full training is provided through our staff of professional educators. SafetyQuip franchisees continue to enjoy solid growth. As a result SafetyQuip was named a BRW Fast Franchise in both 2010 and 2011.

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.

140 | FRANCHISING MAR/APR 2012

WWW.FRANCHISE.NET.AU

FR.MARAPR12.PG141.pdf

Page

141

22/02/12,

2:27

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

Safe Kids In Daily Supervision

Phone: 08 8354 4887 or 0439 803 078 Fax: 08 8121 1835 Contact: Vicki Prout Email: vicki@skidsaustralia.com.au Website: www.skidsaustralia.com.au

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:

PROFILE: Rewarding Business - Make a difference. Award winning Safe Kids In Daily Supervision (sKids) was founded in 1996; with continuous expansion accredited to a fun, learning and caring based program we now offer services to over 85 primary school based sites in New Zealand.

• 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

Now in Australia, using the foundations of the program’s success and our passion for providing fun, structured and safe Out of School Hours Care (OSHC), we are building on our efforts and services offering Master Franchises and local franchisee opportunities in every state.

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.

If you are looking to work with children, make a difference and own a business that is both ﬁnancially and emotionally rewarding then talk to the award winning team at sKids.

PROFILE:

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

Start up costs from: $450k - 550k inc. equipment

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

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

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

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. 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.

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

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

Start up costs from: $450,000

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. 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.

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. 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’.

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 141

FR.MARAPR12.PG142.pdf

Page

142

22/02/12,

2:27

A-Z listings Phone: 1300 769 967 Fax: 1300 883 989 Contact: Luis Nevares Email: info@staycleanhands.com Website: www.staycleanhands.com

Phone: 1800 788 335 Contact: John Newton Email: franchisesales@stufﬂers.com Website: www.stufﬂers.com Start up costs from: $45,000

Franchises from: $80,000 + GST 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 areas. Service contracts provide a guaranteed monthly income to franchisees and the franchise system offers attractive returns on investment every year. The battery-operated dispensers offer the latest in environmental design and touch-free technology, measuring the exact amount of solution into the hands of each user. 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: This exciting new franchise has been franchising in Australia for just over a year. Building on the successful growth of shopping centre bear making stores, Stufflers is all about making stuffed animals at kids’ parties and events using the Stufflers unique mobile machine system. With clothes, hearts and special carry carts - Stufflers is the next party phenomenon. The franchise is best suited to a stay at home mum that has 2 days available midweek to work on our unique local marketing programs. As part of your $45,000 franchise fee, you will receive 8 mobile Fluffenstuff machines that are custom built by Stufflers. Our opening launch price of $45,000 is substantially lower than the $500,000 needed to open a retail store.

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, General Manager Business Development Email: graham@sumosalad.com Website: www.sumosalad.com Start up costs from: $$350,000 plus GST PROFILE: SumoSalad has enjoyed phenomenal success and growth since its inception in 2003 and has built a strong, trusted and recognised brand in the food retail industry with loyal customers following the brands continual expansion into key sites throughout Australia and abroad. With obesity now a global epidemic, such an overwhelming positive response from customers, industry bodies and franchisees is no surprise. SumoSalad is now providing healthy eating to over 145,000 people each week in many of the best sites across the country, mainly positioned in central CBD and strong performing suburban shopping centre locations. Due to increased visibility, awareness and convenience, our brand has grown in strength and more importantly popularity and proﬁts. The media are continually pushing consumers towards leading a healthier lifestyle and SumoSalad is pioneering this change in the Fast Food industry.

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!

142 | FRANCHISING MAR/APR 2012

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.

WWW.FRANCHISE.NET.AU

FR.MARAPR12.PG143.pdf

Page

143

22/02/12,

2:27

A-Z listings Phone: 07 32577682 Contact: James Email: partners@theburritobar.com.au Website: www.theburritobar.com.au

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

Start up costs from: $380,000 to $450,000 Start up costs from: $300,000 - $400,000 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. • 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

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.

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

WKH FKRFRODWH URRP

National: 1300 139 557 Phone: (03) 9729 9534 Fax: (03) 9729 9512 Contact: Lia Barnes Email: lia@thefranchiseshop.com.au Website: thefranchiseshop.com.au

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

PROFILE: The Franchise Shop is a leading franchising consultancy specialising in servicing the franchising industry throughout Australia and New Zealand. Principals, Grant and Richard Garraway have more than 30 years experience between them in developing businesses into franchises, conducting feasibility studies, recruiting franchise owners, territory planning and site ﬁnding. 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 and accurate assessment. Looking to buy a franchise? We offer a range of documents which are designed to help you make an informed decision.

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

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. 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. 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.

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 143

FR.MARAPR12.PG144.pdf

Page

144

22/02/12,

2:27

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

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

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. 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. There are currently 31 stores forming the Total Tools group with representation in Victoria, New South Wales, South Australia & Queensland, with more stores planned nationally.

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

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

Proﬁle: Trusonic is a full service music provider and audio marketing specialist.

Start up costs from: $400,000 upwards PROFILE:

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

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.

To get Trusonic music working for you, call Darren Farrell on 1300 139 913.

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

Phone: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au Start up costs from: $25,000

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!

144 | FRANCHISING MAR/APR 2012

PROFILE: V.I.P. Home Services was the ﬁrst company to start gardening franchising in 1979. Now, V.I.P. has over 1100 franchises employing over 500 staff. 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.

WWW.FRANCHISE.NET.AU

FR.MARAPR12.PG145.pdf

Page

145

22/02/12,

2:27

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

Like Us!

SCAN WITH i

QR CODE SCANNER

Phone: 0414 669 101 Fax: 02 9771 9570 Contact: Stephen Spitz Email: stephen.spitz@xpressodelight.com.au Website: www.xpressodelight.com.au Start up costs from: $69,000 + GST

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.

TO LIKE

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!

Remember to “like us” on FACEBOOK and join the conversation! s Exclusive content

Phone: 1300 yogabugs Contact: Rob Connelly Email: rob@yogabugs.com.au Website: www.yogabugs.com.au

s Giveaways

Start up costs from: $20,000 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.

s Latest news facebook.com/franchisingau

Your essential guide to buying a franchise

WWW.FRANCHISE.NET.AU

MAR/APR 2012 FRANCHISING | 145

FR.MARAPR12.PG146.pdf

Page

146

21/02/12,

2:12

INCORPORATING FCA NEWS

Companies in this issue 7–ELEVEN

33*

GELATISSIMO

10 THOUSAND FEET

118*

GEOWASH

AMX MONEY

109*

GLORIA JEAN’S COFFEES

ANYTIME FITNESS

15*

FRANCHISE COUNCIL OF AUSTRALIA

* indicates FCA member

103* 34* 2*

GREENBIZCHECK

104*

OPORTO OUTBACK JACK’S BAR & GRILL OVENU PIZZA HUT

APPLIANCE TAGGING SERVICES 107*

HMS PRINT MANAGEMENT

128

RBI

APPLIED MARKETING SCIENCE

HUDSONS COFFEE

35*

REDCAT

AUSTRALIAN FITNESS MANAGEMENT

JANI-KING

AUSTRALIAN FRANCHISING CORPORATION

INK ON THE RUN JEM PROMOTIONAL PRODUCTS

AUSTVENDING

93*

AUTOBARN

14*

BAKERS DELIGHT

148*

BEDSHED

38*

BEN & JERRY’S

11*

BRIAN TRACY

85*

CAFE2U

39*

CALTEX

94*

CLEAN GREEN STRATA

60*

COCO CUBANO

20*

CONTOURS

29*

COOLUM BEACH

127

CRAZY JOHN’S DC STRATEGY DIVERSIFIED EXHIBITIONS

50 66 – 67* 65*

JIM’S BUILDING

51* 19* 117* 73 112, 145* 124

RP VENDING

110

28*

SAFETYQUIP

108*

SILVER CHEF

105*

17*

SKIDS

42*

JOJINGLES

SNAP FITNESS

JUMPING J-JAYS

SNAP ON

KEEN TO CLEAN

86*

SNOOZE

83*

KING OF KNIVES

13*

SUBWAY

43*

KWIK KOPY

113*

SUMO SALAD

91*

LEADERSHIP MANAGEMENT

129*

SUPERGEEK

89*

LOLLYPOTZ

57*

TELECHOICE

LUXAFLEX

THE CHEESECAKE SHOP

MADDOCK SOLUTIONS

THE DUSTER DOLLIES

MAGAZINE VENDING

THE FRANCHISE SHOP

MANAGEMENT INSTITUTE OF AUSTRALIA

121*

MASON SIER TURNBULL

25*

MESSAGECOM

116

MBE BUSINESS SERVICE CENTRES

THINK FRANCHISE TOP SNAP TOTAL TOOLS

100 – 101* 114* 96* 46 – 47* 32 24* 123*

TOUCH UP GUYS

71* 88*

EMBROIDME

58*

MICRONET

27*

UNITED PETROLEUM

EUREKA FRANCHISE

41*

MR RENTAL

21*

VANITY BAR

FASTWAY COURIERS

147*

MUZZ BUZZ

81*

VC SOLUTIONS

52 – 53*

VIP AUSTRALIA

36*

FLOWERS BY FRUIT

82*

FRANCHISE LEGAL

FRANCHISE SELECTION GAMES TO YOU

146| FRANCHISING MAR/APR 2012

68 – 69* 54

NANOTEK BY ECOWASH

NATIONAL FRANCHISE BROKERS 111

WISEWOULD MAHONEY

44*

NIGHTOWL

XPRESSO DELIGHT

22*

NKA

76* 37

WWW.FRANCHISE.NET.AU

YOGABUGS AUSTRALIA

AD_FRFASMAR_12.pdf

Page

8/02/12,

10:25

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.

AD_FRGLOMAR_12.pdf

Page

7/02/12,

2:51

Seeking 100 new franchisees Bakers Delight is Australiaâ&#x20AC;&#x2122;s most successful bakery franchise, with 700 bakeries and over 31 years proven experience. Weâ&#x20AC;&#x2122;re currently seeking 100 franchisees for new and existing sites.

Take control of your future and contact our franchise recruitment team: 1300 309 759 or apply now: bakersdelight.com.au