Franchising May-June 2011 Issue by Cirrus Media

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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

Inspire CHARITY SERVE KFC gives back

Opportunity SERVING A COFFEE CULTURE

Invest

in a money-making franchise Should you buy a distressed business? THE ICE MAKERS: WHAT BASKIN-ROBBINS DOES NEXT

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Contents MAY–JUNE 2011 |YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE

Opportunities 30

Coffee conviction What drives the café market?

Beauty in business Making a big deal out of hair and beauty

41 74

Key opportunities for growth in convenience 54

Cover story 66 Delivering the dollars Match the franchise to your ﬁnancial goal 74 In distress Pros and cons to buying a distressed business 78 Big dividends The beneﬁts of a large franchise system 81 Refreshing the brand Why brand renewal is key

REGULARS 5

Editorial

News

Interview

113 Legal

114 Sketch 117 FCA view

121 People 122 Final word 125 Competition 126 Checklist 142 Company listings

Sweet rewards Rosemary Harmata’s ﬂexible lifestyle The colonel ﬁghts hunger pangs KFC gives back to the community Making a splash in the west Franchisees get in the swim Chips with everything Lord of the Fries turns to franchising

Designs on digital The technology in print and signage today

Issues

Inspire

Rising to the challenge

Expanding your horizons Perth franchising expo previewed

How to... 87

The disclosure document Why you need to read it

Manual labour How to evaluate the guide to a franchise, the operations manual

100 Following convention Taking time out to network 105 A slice of American pie Franchisees ﬁnd trends in the US 109 What happens…. ...if I can’t sell my business?

Cash cow grown from grassroots Aussie Farmers Direct and the friendly milkman WWW.FRANCHISE.NET.AU

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Welcome

Franchising 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

Selection criteria

National Sales and Marketing Manager David Strong david.strong@reedbusiness.com.au Direct: 02 9422 2905

Contributing Journalists Domini Stuart Donna Bennett Columnists Greg Nathan Andrew Terry Raynia Theodore / Nick Rimington Steve Wright Production Co-ordinator Eryk Cleghorn eryk.cleghorn@reedbusiness.com.au Direct: 02 9422 2379 Associate Publisher Michelle Graves michelle.graves@reedbusiness.com.au Direct: 02 9422 2391 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

SARAH STOWE Editor

o we have too much choice? The act of choosing is central to our lives, whether it’s the rails of clothes in boutiques, the taste tempters in the food court, the supermarket shelves stacked with products, online options for travel or the competition for the best car insurance. And when it comes to picking a franchise as a business opportunity, the field is just as wide – there are now more than 1100 franchise systems in Australia, ranging from the well-established, mature models to the new kids in the arena keen to grab attention and grow. So how do you find the system that is right for you as an individual, but will also match the demands you have for return on investment? In this issue we take a look at practical ways to whittle away the options until you’re left with the franchise of choice. Our cover story uncovers the questions you need to ask about the business, and explains the number crunching entailed in getting to the financial realities of a franchise. We also take a look at how to evaluate your prospective franchise’s operations manual, in any franchise system the bible to the business; it’s also another way to judge the franchise itself. One of the options available to a prospective franchisee is to buy an existing franchise business, rather than launch a new or Greenfield site. The advantage of this is the existence of financial records, but not all financial stories are good. What happens if the business is distressed? Should you buy? Read our article on p74 to find out more. You will also find features on the coffee market, print and signage franchises, the beauty sector and convenience stores, as well as inspirational franchisee stories and the regular expert columns. And if you’re looking for a place to learn about franchising and discover some opportunities at the same time, pay a visit to the Perth Franchising and Business Opportunities Expo on May 21 and 22. We’ll be there…

There are now more than 1100 franchise systems in Australia

Sarah Stowe Editor Average Net Distribution Period ending September ’10 – 7,070

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.

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News ONLINE NEWS | WWW.FRANCHISE.NET.AU

Legal battle for Angus & Robertson franchisees A GROUP of breakaway Angus & Robertson franchisees are headed to court, defending their decision to terminate the franchise agreements they have with parent company, Redgroup Retail. The company, which also operates the Borders book franchise, went into voluntary administration in February and Ferrier Hodgson partner, Steve Sherman, has been made the administrator. He said the franchisees’ claims that Angus & Robertson has breached its franchise agreement are baseless and that the company will be seeking order for recovery of the arrears owed to Angus & Robertson under those agreements. “At no time has Angus & Robertson breached the relevant franchise agreements,” Sherman told Franchising. “Consequently, in order to protect the interests of the

unsecured creditors and to preserve the integrity of the Redgroup companies, we have commenced proceedings seeking conﬁrmation that the terminations are invalid and unlawful and that the franchise agreements remain on foot.” Following the announcement of Redgroup’s collapse, Ferrier Hodgson decided that in order to use their gift vouchers, Angus & Robertson customers must match the value of their voucher, dollar for dollar, upsetting a number of franchisees and, according to Maree Fitzpatrick, group spokesperson and former franchisee, breaching the franchise agreement. “Our franchisor, Angus & Robertson, has breached the franchise agreement,” she said. “There are several breaches in the agreement, but a matter that is particularly relevant is the gift cards - the treatment of gift cards and the

closing across the country, 14 Gloria Jean’s stores must also cease trading. “Gloria Jean’s Coffees has engaged specialist legal advice to review the position of our company and that of the franchise partners who own coffee houses within the affected Borders stores,” Gloria Jean’s said in a statement. Gareth Pike, general manager, said the franchise agreements are still in place and that Gloria Jean’s is looking for new locations and preparing ﬁnancial assistance packages for franchisees to assist in relocations.

payment of gift cards”. However Sherman argues that the dollar for dollar scheme was put in place to prevent voucher holders being classed as unsecured creditors. “The dollar for dollar scheme was created as an offer of good faith to customers of Angus & Robertson and Borders. Under the law, voucher holders are treated as unsecured creditors,” he said. The collapse of Redgroup is also affecting coffee franchise, Gloria Jean’s Coffees, which has a number of franchises trading within Borders stores. With 16 Borders stores

$24 million The amount Domino’s Pizza is spending on its store refurbishment program, to be completed by 2014.

NANOTEK BY ECOWASH LAUNCHES NEW WEBSITE AUTOMOTIVE franchise, Ecowash Mobile, has officially launched its new brand image with the completion of its Nanotek website. CEO Jim Cornish said “We had a soft launch with the brand internally but the completion of the website signifies our official launch into the marketplace. We developed a futuristic and heavily IT based website to act as the centre piece in an integrated global com-

6| FRANCHISING MAY/JUN 2011

The new website is futuristic and modern

munication platform. We have an exciting and intriguing product so it was important to establish a website that allowed consumers to

understand the nanotechnology properly and interact with the brand.” Cornish said the process of transform-

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ing the Ecowash brand took place after intensive research. “We spent about 12 months researching consumers’ perceptions of the

brand and talking with our franchisees about a possible transformation and determined ‘Nanotek’ would best indicate the advanced technology at the core of the service. “This transition has been a major step for the company and we are conﬁdent Nanotek is the right way forward. Both franchisees and customers alike love the new look and we will progressively rollout the changeover worldwide.”

See page 54 for details

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News ONLINE NEWS | WWW.FRANCHISE.NET.AU

Congratulations to prospective franchisee and Franchising magazine reader Rin Jacobs, from New South Wales, the lucky winner of the iPad competition in the Jan/Feb edition. See p125 in this issue for your chance to win a digital camera.

NEWS BRIEFS Battery World is looking for new franchisees in Sydney, an area that general manager John Pascoe says is a perfect location for the retail battery franchise’s expansion plans. Ozzy Kleen, a Newcastle-based cleaning business, is looking for its ﬁrst franchisees.

Oporto expands abroad CHICKEN franchise, Oporto, is in the process of significant international expansion, opening its first store in the US and its third in China earlier this year. Mark Lindsay, group CEO of Oporto’s umbrella company, the QSRH Group, said the response in both the US and China has been very positive. “We’re very happy with the way things are going, particularly in the US ... I was over there for the opening and was getting customer feedback, and they loved it. They love the cleanness of the taste. They love the chilli flavours. They were really happy with the product and a lot of the feedback was that there’s nothing like it in the US market,” Lindsay said. The third Chinese store, which opened in early April, activated the franchise’s aggressive development agreement in the market, he said. “They’re on a development schedule that requires them, by the time they get to year five, to be opening around 60 stores per annum.” The plan is similar in the US, with

hopes for approximately 50 openings annually after five years. Lindsay said the Oporto offering has remained almost identical throughout the store openings and he is confident the franchise’s menu has significant international appeal. The company, which also has master franchisee agreements in the UK and New Zealand, has extensive expansion plans in other areas including India, Taiwan, Hong Kong and Malaysia.

GO TO

www.franchise.net.au to see videos of editor, Sarah Stowe, interviewing representatives from a range of exciting franchise opportunities, including Outback Jacks, Pizza Event and Clark Rubber, at the recent Sydney Franchising and Business Opportunities Expo.

“What I ﬁnd attractive

about the franchise model is that it brings a superior level of service and product knowledge to the customer. When you consider the value of the direct customer feedback ... franchising becomes the obvious choice over the traditional bricks and mortar approach of distribution through retail outlets” Tony Alevras, managing director, Eureka Multimedia

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Franchised Food Company, the umbrella company for Mr Whippy, Nutshack, Cold Rock and Pretzel World, has launched a series of new and revamped websites. Staff at Quest Serviced Apartments can now add qualifications in management, sales and marketing, front office and housekeeping to the existing training offered by the accommodation franchise, after it announced a new partnership with training organisation, Hostel International. Food franchise chain The Coffee Club plans to open 30 new outlets in New South Wales over the next six months. Andrew and Debbie Benefield, the Australian operators of Mrs Fields, have been awarded the International Master Franchisee of the Year award at the cookie franchise’s Famous Brands Convention in Las Vegas. Kwik Kopy Moonee Ponds Street, located in Melbourne’s CBD, has been named the Kwik Kopy 2011 Franchise of the Year. The award was presented to franchisee, Mike Beuermann at the printing franchise’s annual conference in the Barossa Valley on 2 April. The Franchise Fair, a new expo aimed at baby boomers runs in Sydney from May 13 to 15, 2011.

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News ONLINE NEWS | WWW.FRANCHISE.NET.AU

Support at the multi-unit summit MULTI-UNIT franchising is a growing element in the Australian marketplace as proved by the 170-plus franchisors and franchisees who attended the third annual Multi-Unit Summit on March 10 and 11 in Melbourne. Franchise professionals from top brands attended the summit to focus on better ways to run multi-unit operations. The event was the biggest gathering of an equal number of franchisors and franchisees from different brands anywhere in the world, according to Greg Nathan, founder of the Franchise Relationships Institute which organised the popular event. Nathan said “There was

MOST VIEWED ARTICLES ON FRANCHISE.NET.AU 1. Angus & Robertson franchisees head to court 2. Eagle Boys teams up with Video Ezy 3. Zarraffa’s Coffee launches ethical blend 4. Hungry Jack’s ﬁned over $100,000 for underpaying staff 5. Melbourne franchisee named Kwik Kopy’s best Data: 15 April 2011

massive sharing in good business principles and practices, particularly staff management, business structuring, ﬁnancing, IT and management control systems. The support and empathy shared between people from different brands

was quite extraordinary.” In some cases it was even life-changing, said Nathan, citing one multi-unit operator with nine businesses who said before the summit he felt like selling up. But this all changed after a peer ses-

sion in which stories of the challenges of expansion were shared by successful operators from different brands; the multi-unit franchisee realised he was heading in the right direction and now has plans to expand even further.

Join Us in the “Science of Sleep”!

Mario Piraino Engineer and Founder of Beds for Backs.

Beds for Backs is a premier bedding retailer, offering uniquely tailored bed solutions for sleep health. Developed in consultation with leading Australian health professionals and universities, Beds for Backs is revolutionising the Australian bedding industry and taking Australian technology to the world! Join us in the “Science of Sleep” and enjoy the beneﬁts of: For Further Information

• • • • • • •

High margins A winning formula – exceptional conversion rate Unique and patented bedding technology Proven health product Turn-key operation set-up and ongoing support Extraordinary customer satisfaction levels Comprehensive training – no experience necessary.

Contact our Franchise Manager: 1800 185 185 or evan@beds4backs.com.au • Web: www.beds4backs.com.au

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So, what does think of us? 2009 Best Value Franchise in Australia 2008 #1 Franchise in our category 2006 1 of Top 7 Franchise Systems

Franchising Magazine Jan10 indd 1

21/01/2010 3:00:14 PM

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Inspire|Interview

New management, new direction? What do the chiefs

THE ICE

at the renowned treat franchise Baskin-Robbins have in store for the Australian business?

MAKERS B askin-Robbins is a good business and is only going to improve. That’s the prediction of Nigel Travis, CEO of Dunkin Brands, the American parent company which took back the Australian arm of Baskin-Robbins after the collapse of franchisor Allied Brands. Now the new management team put in place by Dunkin Brands is all set to sweeten the franchisees’ lot, promising a greater focus on service and support. “We have to ensure we don’t run before we can walk, but the US and Australia are pretty similar,” says Travis, based in Boston and visiting Australia to discuss plans for the business with franchisees.

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“The basic platform is comparable, a focus on great service, smiles, and customers tasting the products. It’s all about product and atmosphere, and how we sell them. We have put in senior management who are more than capable of running the business; our second job is to overcome some of the obstacles franchisees had in the latter days of Allied Brands ownership,” he adds. The supply chain has been improved, and new team members introduced at a direct level to support franchisees. One step to support the business is establishing franchise advisory councils. The Allied Brands management lacked a franchisee focus, Travis says. “The franchise model is beautiful because the franchisee puts in their capital investment. The trick is to get franchisees to believe in it. We’ll continue to invest in support.” With head ofﬁce located at a distant American east coast location it is vital to humanise the face of Baskin-Robbins in Australia, which is why there’s an Australian team led by general manager Ian Martin, and he is the face of the ice cream company here. The new management team has been given substantial authority and responsibility with the aim of getting standards right in operation skills, products and cleanliness, before turning to the sexier task of innovation. “We are very optimistic because Australia is the number three market in ice cream worldwide. There is no doubt this opportunity is enormous,” Travis adds. “We have the heritage, ﬂavour, fun and atmosphere. Once we have stabilised the business, we’ll be introducing innovations to evolve the business to something exciting. Going

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Inspire|Interview

to ice cream stores should be exciting, for kids and families.” So what of the idea adopted not only by competitors in the franchising space, but by Allied Brands itself when it set Cookie Man outlets next to Baskin-Robbins: selling coffee alongside ice cream to counteract seasonal dips in sales? “That’s an interesting concept, that’s the sort of innovation we might consider,” says Travis. With a portfolio of 87 stores the chain could reach several hundred across Australia; Travis says “We have to be careful not to grow too fast, but we’re excited about Western Australia, Queensland, Sydney and New South Wales. All major cities here do well, they have good demographics and great weather.” Network growth will come through both existing and new franchisees and Australia’s position as a leading franchising nation can only enhance the expansion, Travis believes. The offer of a $10,000

discount of set-up costs for new franchisee stores signedup through Travis’ express one-day showcase events around Australia is intended to kick-start initial growth. Additional marketing dollars

We are very optimistic because Australia is the number three market in ice cream worldwide brought in by multi-franchise units and new recruits to the Baskin-Robbins chain means there will be the budget to signiﬁcantly boost the brand’s presence across the country. What does stand out as a differential in US and Australian franchising is the proliferation of multi-unit franchisees, though that varies between the brands. For Baskin-Robbins in Australia the average store ownership is 1.1 per franchisee, in the US it’s 1.2. But at

John Jun has been franchisee at Circular Quay, Sydney, for ﬁve years “I’m really happy with different management, there is control back. We have monthly promotions which were previously lacking. And the cost of supplies is going down,” says franchisee John Jun, whose business attracts a lot of tourists. Explains operations manager Brett Hannah: “We have set up franchisees directly with a supply chain for ice cream, dry goods and small wares (scoops etc). There are now up to 80 percent savings on some items through approved suppliers. Franchisees have been paying for brand standards, Franchisee John Jun, his son and store they’ve been craving manager Eugene, and Dunkin’ Brands support and standards.” CEO Nigel Travis

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Inspire|Interview

Global taste for dessert

Ian Martin, general manager, Baskin-Robbins Australia

Dunkin’ Donuts the average store for each franchisee is a much greater 5.6. “In the US one Dunkin franchise has 227 stores. I’d like the average to go to seven or eight,” says Travis, whose two year Australian target is an average Baskin-Robbins store count of two per franchisee. On his whistlestop tour Travis met some franchisees whose portfolios could easily double to six stores within a year, he predicts.

Making it work

While Travis headed up the largest contingent of C-level executives from the US visiting the Baskin-Robbins business, the head of international division, Srinivas Kumar, has already been to Australia four times since the business was brought back to the Dunkin’ fold last year. Says Travis, “Our job is to support the franchisees. Our franchisees are in an incredibly positive mood; they’re very impressed with the marketing

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The advantage of a brand with such far-reaching outlets is the ability to draw on fresh ideas from around the world. Take Korea – the Baskin-Robbins business there is the leading international market pioneering the Cafe 31, a signature dessert cafe store design and menu. This is an upscale version of a Baskin-Robbins shop, with signature ice cream desserts including a chocolate fountain, chocolate fondue, ice cream bombes, and of course, signature ice cream cakes. It was ﬁrst introduced in 2005 and there are now a number of them throughout the country.

Says Dunkin’ Brands CEO Nigel Travis, “Our Korean partners have positioned the Café 31 as the dessert destination for customers, capitalising on the out-of-home dining trend in the Korean market. They have successfully introduced their signature cafe menu to support the cafe and bring customers back with regularity.” It has been so successful in Korea, that it has rolled out to other countries including Saudi Arabia and even the US, which opened its ﬁrst Cafe 31 in 2008. A number of signature ice cream cakes developed

plan, and have seen changes to the business already.” The introduction of a marketing calendar, which includes a flavour of the month, gives franchisees a sales focus, and marketing webinars that share information and practical advice on how to tie in the brand’s marketing material at store level are already seeing a good franchisee attendance, says Australian operations manager, Brett Hannah. The result, for the customer, is seeing a happier franchisee, Travis adds. Of course for franchisees, the realities of better support from the franchisor

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Wafﬂe dessert, Korean style

by the Korean partners are now widely available internationally – Strawberry Delight, Strawberry Charlotte, Praline Paradise and Chocolate Amore. “Korea has been very innovative. Because Baskin-Robbins is in so many countries, we learn so much. We take best practice from one country and pass it on,” says Travis.

will be most convincing when there are beneﬁts to the bottom line. An improved supply chain that keeps franchisees wellstocked in product essentials, and offering lower prices for some dry-goods, provides an opportunity for franchisees to see increased revenue and a decrease in cost of goods. The consistent message is that Baskin-Robbins‘overall value of business is dependent on store level economics. “Sensible store growth, franchisee profitability and great relationships” are at the heart of the business, Travis believes.

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‘What’s in store for you?’ Strong National Brand Clark Rubber is an iconic Australian retailing brand and has been for more than 65 years. We currently have 75 stores across Australia. Unique Product Range Clark Rubber’s unique product range is marketed with slogans such as ‘The Home of Foam’, ‘The Rubber Experts’ and ‘Australia’s Local Pool Shop’. We are differentiated in the marketplace through the provision of informative customer service in the product categories. Support Team Clark Rubber franchisees are supported every step of the way in areas such as buying, marketing, merchandising, in-store operations and administrative support, IT and training. Proven and Proﬁtable Model During the 2009/10 ﬁnancial year, Clark Rubber experienced fantastic trading which resulted in record sales. Take a look in store today! We are currently looking to grow and have many new store opportunites for enthusiastic people who want to join a winning team.

You’ll be surprised at what’s in store for you at Clark Rubber! For further information contact our Network Development Manager on (03) 8727 9999 Email: franchising@clarkrubber.com.au Website: www.clarkrubber.com.au

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Inspire|Franchisee

Despite the difﬁculty of balancing ﬂourishing franchises with a frantic home life, Rosemary Harmata from Lollypotz says the joy of giving gifts makes it all worthwhile

SWEET

REWARDS I

get up early, send a few emails in the morning, then all the children get up, we have breakfast, I get them to school, and then I work ﬂat out from 9am to 3pm. Then I pick the children up, we do homework, sports training, have dinner, then normally I’m back working after they go to bed.” This might sound like a crazy lifestyle but it was the ﬂexibility that chocolate bouquet franchise

Rosemary Harmata, Lollypotz Franchise Owner of the Year

Lollypotz’s offered that helped convince Rosemary Harmata to jump onboard. “I started back in August 2009 and I didn’t actually go looking. I knew Louise [founder]. When she told me about her concept I was

16| FRANCHISING MAY/JUN 2011

so excited. And because we were friends it was a bit difﬁcult, so I said that I really wanted to get into it but we didn’t want it to ruin our friendship. But it’s all worked out well,” says Rosemary. In March Lollypotz crowned Rosemary the Franchise Owner of the Year at its annual conference, held in South Australia’s Barossa, rewarding her hard work and success in sales, marketing and, as she puts it, “toeing the line while doing everything right to be able to succeed”. Rosemary runs the Sydney CBD and Chatswood territories from her family home, where she and her husband, who also runs his own professional training business from home, raise their three children. “I was working in accounting part-time when the children came and I just needed a challenge, something that I could succeed in and where I could be part of a successful business. I wanted something where I could use my hands and where I wasn’t behind the computer all day.” Lollypotz’s ﬂexible business offering, affordable buy-in price ($70,000) and the rewarding feeling you get from delivering gifts all day

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make it an attractive option for middle-aged females, who according to Lollypotz founder Louise Curtis, make up 95 percent of franchisees. Rosemary agrees. “It’s a positive industry and women tend to want to be involved in something like that.” As her business grows, Rosemary admits that finding the idyllic balance between work and family does become a challenge but one she will continue to face being among the top three Lollypotz franchisees in the country. “There’s that fine line between separating work and home. If the kids are doing their homework I might be thinking about something work-related, but it’s about discipline and about being organised,” she said. Rosemary adds that being part of a franchise system means that all the finer details of running a business are taken care of, leaving more time for her to drop the kids off at school, take them to training and help them get their homework done. “The best part of being in a franchise is the fact that it’s all set out for me. It’s a no-brainer. The systems are there, the branding is there. The marketing is there. You just follow the system and you can’t go wrong.”

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Inspire|Franchise story

Hungry people and food going to waste, now that’s an unfortunate mismatch that charity Foodbank has taken measures to combat. And the latest recruit to ofﬁcially join the ranks of the benefactors is fast food favourite KFC

THE COLONEL FIGHTS

KFC store at Belmont

HUNGER PANGS N

ext time you visit your favourite fast food restaurant take a minute to think about what happens to all the unused food behind the scenes, because however well planned a food supply chain may prove to be, it cannot eliminate some food wastage. That’s a point raised by Chris Collimore, chief supply ofﬁcer at KFC, part of Yum! Restaurants International in Australia. “However good the supply forecast, excess stock is inevitable in the food business. And the timing is not predictable, it can happen in huge amounts, depending on the products and their suitability.”

criteria: good products with ample shelf life. Collimore explains how KFC is making it work. “Food ready to cook or defrost can be distributed through New South Wales, Victoria, Tasmania and South Australia. Bread and potato products, non-branded, are particularly successful. We only deal with the top manufacturers in Australia so what is being distributed is the same as branded products found in supermarkets across the country.” The corporate feel good factor is twofold: satisfaction that hungry people are being fed, and that the food is not going to waste.

As a company we have a big heart. It’s all driving our corporate social responsibility agenda So what could be better for a fast food business with its swift turnover of product than linking with a charity like Foodbank, where excess generic menu ingredients are shipped from central warehouse locations and distributed to welfare agencies that feed the hungry? Of course the food needs to meet the appropriate 18| FRANCHISING MAY/JUN 2011

“As a branded business in 101 countries, globally we’re a company that feeds the world,” Collimore says. To this end the United Nations’ initiative, the Food Program, has been a beneﬁciary of Yum!’s community spirit, the fast food giant passing on about US$90 million last year. “Translate the global action to a local WWW.FRANCHISE.NET.AU

Yum! brands get involved in a number of initiatives around the world

Foodbank trucks help deliver food supplies

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Franchise story|Inspire

level and Foodbank’s philosophy makes it a perfect partner with Yum!. We approved it informally about two years ago and it’s now being formalised. We would do it anyway but this means our whole business has an appreciation for what we’re doing.” With a business 75 percent franchised, it’s important that franchisees can be engaged and know there is corporate support behind the scenes, suggests Collimore. The structure enables franchisees to still focus on running their businesses but play their part in helping the needy. “The culture is fabulous at Yum!, you live and breathe it. As a big multinational there is an expectation in the community that you’re doing this,” he says. It’s particularly true for younger staff members who expect charity commitments and recycling initiatives to be part of the company’s modus operandi; and for the company to communicate more about what it is doing in these ﬁelds. Foodbank is only one, albeit a signiﬁcant, element of KFC’s corporate social responsibility program being unveiled this

The recycling loop

year. “We’ve done stuff behind the scenes and are now putting together broader activities,” Collimore explains. The Millennium Foundation has been a part of KFC’s charitable actions for many years; also in this agenda are the charities Reach and White Lion, both focused on helping youth in trouble. And taking on board the declared expectations about corporate responsibility, the business has turned its attention to environmental and recycling issues. To this

end recycled split bins will be in restaurants and up to 80 percent of packaging will need to be recyclable. As Collimore says with a smile, “We no longer talk garbage. It’s a global first, this program. We’re talking about avoiding landfill.” The company can now calculate its CO2, water and energy usage and estimates how many cars have been taken off the road by improving its carbon footprint. While the Foodbank project is handled centrally, the focus on environmental achievements will be at a local store level. Yum! Restaurants International last year put out the first Quick Service Restaurant environmental report, and this will form the basis for a freestanding store reporting system that charts energy usage and environmental actions. On a store by store basis, the program will allow franchisees to implement reportable actions, then create targets and a benchmarking facility. “It’s an important part of where we are, that’s going to define us as a company,” says Collimore. “As a company we have a big heart. It’s all driving our corporate social responsibility agenda.”

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

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Inspire|Franchisee

MAKING A SPLASH IN

THE WEST I Irene and Ian Hughes juggle ﬁve PoolWerx territories

rene and Ian Hughes are used to big moves. About 10 years ago the couple migrated to Australia from the UK. Ian, previously an aircraft engineer, wanted to sink his teeth into a new challenge and bought into a poolcare franchise in Western Australia, Jag Poolcare, while his wife, Irene, enjoyed the buzz of the corporate world. PoolWerx and Jag merged

20| FRANCHISING MAY/JUN 2011

in 2004 and two years ago, when their business was growing to a level that was more than Ian could handle on his own, Irene left her job and the two have been working together ever since. The pair has also made another big jump – from being single unit to multi-unit franchisees. Irene says she enjoys the challenges of operating ﬁve PoolWerx territories much more than she thought she would, and she and her husband have complementary skills that ensure the business operates as successfully and smoothly as possible. “I’m the business and HR manager. Ian mainly looks after the mobile side, because that’s quite large now and we’ve got quite a large commercial aspect to our business too. So he focuses on the mobile team and I focus on our retail stores as well as the overall businesss management and staff management.” And while the couple, who were last year named PoolWerx’s

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Western Australia Franchisee of the Year, have almost perfected how they operate their business, they still have to make sure they leave work at work and put just as much effort into their personal lives as they do their professional lives. “We’ve had to work a little bit on making sure that we still have time to ourselves when we come home. It’s really easy to bring everything home and work well into the night, particularly when you’re excited and passionate about growing the business. So we have to be quite careful about coming home, switching off, talking about other things and having a life,” Irene explains. Irene and Ian own the Joondalup, Beldon, Hillarys and Ocean Reef stores and also have a commercial territory in Perth city. The Perth territory, which involves contracts with strata buildings, hotels and public water features, allows the pair to develop their expertise, branch out beyond the >> continues on page 23

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Franchisee|Inspire

The Hughesâ&#x20AC;&#x2122; put just as much effort into their personal lives as their careers >> continued from page 20

domestic market and helps to keep the money coming in during the typically slow winter months. Managing the Perth territory is good not just for the bottom line, Irene says, but for her husband who is always keen to try his hand at something new. â&#x20AC;&#x153;Ian has this particular skill set which enables him to get involved with the more technical aspects of the larger pools and the commercial environment. He was itching to get more technical because of his background, so he saw that as a way of motivating himself and keeping himself interested.â&#x20AC;? Ian has also started ďŹ&#x201A;ying in and out of mine sites, working on and maintaining the pools at minersâ&#x20AC;&#x2122; living quarters. â&#x20AC;&#x153;You really need to seek out opportunities for growth in the off-season,â&#x20AC;? says Irene. â&#x20AC;&#x153;And those are deďŹ nitely projects that will bring in large amounts of money and give you something to focus on, as well as assisting in growing your business during the down season.â&#x20AC;? Irene says being a multi-unit franchisee is not as complicated or stressful as some may think. â&#x20AC;&#x153;It gets easier as you grow. You get greater ďŹ&#x201A;exibility for moving staff around and you can step back a little bit and focus on the vision rather than the day-to-day stuff, so it does become easier,â&#x20AC;? she says. â&#x20AC;&#x153;You just need to focus on getting your structure right. Itâ&#x20AC;&#x2122;s

really important to surround yourself with a good management team ... so having people that you can actually trust to manage certain aspects of your business and being able to hand that over and trust that itâ&#x20AC;&#x2122;s going to happen is very important.â&#x20AC;? Having an effective, well oiled team is what will allow the Hughesâ&#x20AC;&#x2122; to expand even further â&#x20AC;&#x201C; something that the two are deďŹ nitely considering. â&#x20AC;&#x153;Where we are now, weâ&#x20AC;&#x2122;ve got some GreenďŹ eld territories around us, so thereâ&#x20AC;&#x2122;s two developing suburbs in Perth that we have our eye on trying to move into,â&#x20AC;? says Irene. Not only is the support of staff essential, but Irene says the guidance and extra assistance that comes with being a part of a franchise system makes a huge difference for those franchisees wanting to grow beyond one store or territory. â&#x20AC;&#x153;The branding and the dayto-day support, as well as the marketing, is something that any small businesses struggle to do on their own. So you might get so far as a small business and then when you come to be a business of this size, you actually rely on the brand more as it gets bigger. Just in terms of marketing, for example, the national branding and so on, once you get to this size you really need that ďŹ nancial as well as quality support because even now we would really struggle with how much that would cost.â&#x20AC;?

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Inspire|Franchise story

CHIPS WITH

Don’t you just love it when a business name tells you everything you need to know about the product or service on offer? Lord of the Fries is a ﬁne example of an initiative with a memorable name that tempts passers-by to try the chips

EVERYTHING F

ounders Mark Koronczyk from Melbourne and Canadian Mandy Walker Koronczyk met while living in Taiwan and their late night hunts for snacks sparked the idea of a chip-focused business. Lord of the Fries was created in Melbourne in 2004 as a mobile food van touring different festivals and serving up fries topped with international sauces. But serving chips is not a new idea, so what marks their business as different? For starters it’s the way the potatoes (Australian grown) are cooked, not from frozen but freshly prepared and cooked in a cottonseed or sunﬂower oil rather than the heavy beef tallow so often used; chips

not with added gluten and not smothered in a watery tomato sauce. The pair also wanted fries that were thick but not too thick, crispy but not too crunchy, delicious and saucy. The resulting offer is chips in a cone for $4.20 with home-made sauces all inspired by ﬂavours found across the globe (sauce of the month might be a Pakistani specialty, a chutney for instance). There are a variety of boxes and sampler sizes too. Despite the focus on chips, the menu has moved on to incorporate the chips’ best mate with a difference, vegetarian burgers. Now there’s a bigger burger, a jalapeno burger, nuggets and hot dogs – all meat-free. “We are open to everyone. We make an alternative,

How the business started - mobile Lord of the Fries serving anothe r festival crowd

outlet A Lord of the Fries 24| FRANCHISING MAY/JUN 2011

we’re just improving a product, the potatoes are cooked twice with their skins on, and this sets us apart,” Mark says. “Fries are not the focus elsewhere. People are prepared to pay more for quality and these are good fries. The name draws people in, we get a lot of attention.” And the name was the idea of Mark’s brother Sam who later came on board to help out with the creative elements and execute the ideas for design and branding. After being asked time and again by patrons at festivals, “Where can we get your fries during the week?” in 2005 they opened their ﬁrst store in the CBD, on the corner of Flinders and Elizabeth Street. Now there is a

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Franchisors Mark, Mandy and Sam

fully franchised Chapel Street outlet, two other stores are franchise joint ventures, two are company-owned. “We didn’t have much capital to start with. We decided company-owned stores and franchisees would be the way to go. The idea for franchising came from people asking to join us,” explains Sam. When they followed up the franchising idea, the beneﬁts were obvious: harnessing a strong work ethic with people prepared to give their all and spend time in the business. The difﬁculty of getting trusted management staff for the stores enhanced the appeal of owner operators.

for about two months in other stores (learning cash register skills, kitchen skills, daily reconciliation, bookkeeping and supply skills). Once the franchisee is set up, the operations manager will spend the first three weeks with them. And a bonus for those franchisees who need that extra fillip, experienced staff can be sourced for the first few weeks. Of course, there is ongoing support and training, Mandy emphasises. Right now the stores work in either strip or mall locations, but in fast food clusters, so they benefit from sites next to Hungry Jacks, KFC and McDonalds. The plans are for fur-

It’s a good operation but you have to work in it...if you put a manager in you just add capital “It’s a good operation but you have to work in it, check what the staff are doing and check if the store is clean. If you put in a manager you just add capital,” says Sam. “We’re looking for franchisees who are not afraid to say they don’t know everything,” adds Mandy, who cites good people skills and conﬁdence as key franchisee qualities. Franchisees will be buying a turnkey operation ($275,00 to $365,000), will receive training

ther outlets around Melbourne and then interstate and within ﬁve years the company wants a national and international presence. They’re keen but cautious. The product is perfect for global development, Sam says. “It’s quite a unique offer, it’s vegetarian, halal and kosher, so it’s quite attractive in places like India. This is a long term project but you can’t jump in without doing due diligence. We learned that from our two years in the mobile van.” WWW.FRANCHISE.NET.AU

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Inspire|Franchisor

Despite being one of the most successful franchise systems in the country, Aussie Farmers Direct believes a local community focus is what’s really important

CASH COW GROWN FROM

GRASSROOTS F

resh food delivery franchise, Aussie Farmers Direct (AFD), has taken the top spot on BRW’s Fast Franchises by Revenue list for two years running. In 2009-10 its revenue stood at $104.35 million, a growth of 157.45 percent in the three years to June 30, 2010. The company also ranked fourth for Fastest Growth by Outlets, has a joint venture in New Zealand, The Trusty Delivery Co, and has set up its own dairy in Camperdown, strengthening its all-Australian offering. Despite this impressive growth and expansion, CEO Braeden Lord believes that the best way to move forward is simply to maintain and strengthen the business at a grassroots level with franchisees focused on being the modern day, friendly milkman, and, Lord hopes, “the face of the local community”. Over the three years that Lord has spent as CEO of AFD, the company and his role within it have changed dramatically. Aussie Farmers now has a national presence in each of the major cities as well as a far broader product range which encompasses seafood, chicken, meat and fresh pas26| FRANCHISING MAY/JUN 2011

tas. There is also a much higher level of engagement with both the franchisees and customers. “When I ﬁrst started I think we had about 30 franchises. We now have 190 but I must say that only until about six months ago, I was in front of just about every new franchisee around the country before they came on board. So only recently has that secondary suitability assessment been undertaken by a couple of other people in our business. We’ve recruited additional people so the

It’s a little less around an ad in the local paper or a billboard at the local intersection, it’s more around the franchisee being part of the local community face-to-face intimate involvement with just about every round [territory] has been passed onto other great people in the business,” Lord explains. While Lord’s job now is centred more on seeking out integration and strategic growth opportunities, >> continues on page 29

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We invite you to join Australia’s most dynamic & successful Steel Shed Network. Shed Boss sells a premium product with proven professional building systems. All outlets are independently owned and operated businesses, using local products and supporting local industry.

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There are a range of benefits associated with owning your own Shed Boss Franchise: A very economical entry to the Shed and Garage Industry Develop your own saleable business Be supported by excellent business and building systems Have a Master Franchise that works with you, but does not intrude into your business Have access to patented products, systems and building designs Gain group purchasing power Be well trained and develop your own business skills Be a part of a well recognised and established franchise Know that there is proven success in a range of locations throughout Australia. A simple royalty free system Have a secure exclusive Territory Use comprehensive quoting and project management software Be a part of a business with a great reputation for Service and Professionalism. Interested in owning your own outlet! These Licensed businesses are immensely beneficial to a wide range of people, particularly builders who wish to have a saleable business and get off the tools. If you believe you have the aptitude and skills, we welcome you to make application through this web site to find out more.

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Franchisor|Inspire

>> continued from page 26

he makes sure his franchisees focus on the basic one-on-one interactions that the retail environment demands. “In the last couple of months we’ve seen the best week-on-week growth in customers coming naturally to us than we’ve ever seen. So that’s a bonus and is great for our business but really it still does require that hands-on, day-to-day involvement by the franchisee to ensure that their existing customer base remains strong. Just like most retail businesses, you need to never take a customer for granted and always be working with them to really understand how to best add value from our service to their household.” Depite AFD’s size and geographical spread, with 175 outlets, local area marketing is still a priority. “It’s through day-to-day hands-on involvement by the franchisee. So, for example, loyalty programs with kindergartens and primary schools in the area, appearing at sporting clubs and facilities in order to promote our services and offer sampling. It’s a little less around an ad in the local paper or a billboard at the local intersection, it’s more around the franchisee being part of the local community,” says Lord.

Braeden Lord, CEO

model right and prove that it’s successful before you grow, not the other way around, Lord adds. “Franchising doesn’t rely on expansion for the business to be successful, it relies on good quality existing rounds or businesses within that franchise network that can support the franchise structure. If you’ve got a base core model that is successful then it really is just a matter of replicating that rather than building a business that relies on growth to actually make it sustainable. If you’re at that stage then it makes it very

They need to have enough creativity and entrepreneurialism, but they still need to work within a network Interest from franchisees has increased signiﬁcantly since the release of BRW’s Fast Franchises list, and according to Lord certain areas like Sydney and Melbourne have almost reached saturation in terms of available territories, but Perth, the Sunshine Coast, Brisbane and Adelaide are new markets and have plenty of opportunities for interested franchisees. And Lord is sure that franchising was and is the best business model for Aussie Farmers to make a name for itself. “Like a lot of businesses that utilise franchising as a way of really expanding at a greater speed, it really gave the business the opportunity to get that geographical spread that it needs to have a strong presence in the marketplace. When you’re competing against major supermarkets and other chain retailers of food, getting the right geographical spread is vital.” But the secret to succeeding and growing as a franchise is to get your business

awkward to be able to grow a business because you inevitably end up with a compromise somewhere through the chain.” Lord says AFD is a little over half way toward what he sees at its potential for total growth. Where, in successful years the company has added 60 or 70 new franchise rounds to the system, the next few years will be more like 30 or 40 as the company focuses on integration opportunities and “building a great, sustainable, long-term business”. Growth by numbers is made easy for AFD because many franchisees are keen to own multiple vans and have their local community well serviced, he says. And what does Lord look for in a new franchisee? “They need to have enough creativity and entrepreneurialism, but they still need to work within a network and a system and be sharing, inclusive, participatory and not be a by-stander. If you’re going to be involved you have to be whole hearted about being involved.” WWW.FRANCHISE.NET.AU

F I CE OF

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Opportunities|Coffee

COFFEE

CONVICTION

As a nation we love our coffee and it is a market that still has growth potential

ustralian coffee shops can be individual one-off cafes or part of international chains, and success isn’t just about the business’ size, as Suzannah Rowley, senior IBISWorld analyst suggests. “Size is not necessarily a determinant of success in this industry given the nation’s obsession with high quality coffee ﬂowing from a strong coffee culture that

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emerged in Australia with the arrival of European immigrants after World War II. As such, competition within the industry is intense with small local coffee shops competing ﬁercely and often outperforming international coffee shops. This is thanks, in part, to a better understanding and incorporation of the nation’s entrenched coffee culture into their business model.”

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Coffee|Opportunities

American coffee chain Starbucks’ 2008 closure of 61 of its 84 stores in Australia, is an example of the difficulty of an overseas brand getting a firm foothold in an established culture with specific tastes. Despite this, Starbucks remains one of the four major retail players in the Australian arena, alongside Gloria Jeans, McCafe and Hudsons Coffee, according to the latest IBISWorld report on the cafe industry. Yet there is still plenty of room to play, says Rowley. “As such, barriers to entry remain low despite the presence of four significant coffee-house and cafe brands in this industry. Overall, the industry has a very low level of concentration which means that no one, or one group of companies, dominates the industry and new entrants can acquire market share without struggling to compete with dominant major players. This is supported by the high rate of entry and exit of establishments for this industry and also by the latest ABS 2006-2007 Survey on Cafes and Restaurants showing that 91.2 percent of operators in the industry are small businesses employing less than 20 people.”

The price of competition The cafe market is described as a growth sector with proﬁt margins currently low

but improving. However, the cost of goods (COGs) are on the rise. “Rising coffee prices could have several effects on cafes and coffee shops but businesses may not necessarily suffer as a result of rising COGs,” says Rowley, who predicts a slight tightening of the market as less proﬁtable operators who are unable to

Coffee is considered an affordable luxury in Australia and an essential part of daily routine. As such, most people are more likely to sacriﬁce or cut spending on restaurant or catering consumption rather than forgo a cup of coffee cope with the price-competition fade away. “On the other hand, it’s possible that many operators could justify a modest rise in the price of a cup of coffee so long as they maintain or improve the quality of other more intangible aspects that feed into the price of coffee such as excellent customer service, venue atmosphere, quality and efﬁciency.

AROMAS What marks your brand as different? Aromas is an icon of Brisbane Coffee; we roast our own and can therefore control the integrity of the end product. Our food offer is also designed to provide premium cafe-style meals with a strong focus on quality and fresh local product. We offer a range of operating models – Cafes, Kiosks, Express and Snapshot stores

– and that provides the ﬂexibility for our brand to operate in a variety of locations or footprints. Is your brand national? Yes. We have 13 stores across Australia, and six in India. Our current goal is to expand our reach by focusing on high street franchise opportunities. Major form of national marketing: Local store marketing only at this point, supported by

sponsorships for various NFP organisations. Turnkey investment: From about $350,000 for a Kiosk to about $500,000 for a Classic Cafe (with kitchen and internal seating). Levels of investment are ultimately inﬂuenced by variables that include (but are not limited to) landlord contribution, location, footprint and other factors.

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Opportunities|Coffee

Other side factors to support this include the overall improvement in employment and rising household disposable income levels which means that consumers are more likely, or will be more able, to spend money on discretionary items such as coffee.” Rowley believes the strength of Australia’s coffee culture and the extent to which it can maintain demand for this industry was largely demonstrated during the global economic downturn. “Normally, increased mortgage repayments, less excess cash coupled with falling consumer sentiment, generally dampens expenditure on discretionary products and services. Fortunately however, the effect on the industry has been much less severe compared to other hospitality industries; in fact revenue for the industry actually grew during this period. This suggests that coffee is considered an affordable luxury in Australia and an essential part of daily routine. As such, most people are more likely to sacriﬁce or cut spending on restaurant or catering consumption rather than forgo a cup of coffee. Similarly, it could also be concluded that consumers are likely to be more accepting of a modest increase for their daily cup of coffee than they would for other products.” Figures in the IBISWorld report show a reduced average customer spend overall in cafes. But Rowley’s belief that consumers still value their cup of coffee is a view shared at mobile coffee business

32| FRANCHISING MAY/JUN 2011

IBISWORLD HAS GOOD NEWS FOR COFFEE FRANCHISEES: More business meetings are being held in cafes Most franchise coffee operations have shown strong growth Barriers to entry are minimal Technology changes are low level

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Proudly supporting local charities across Australia and New Zealand with over $1.75 million already donated.

visit www.lifetimedistributors.com

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Opportunities|Coffee

ZARRAFFA’S COFFEES

Cafe2U, which reports customers are not prepared to forsake the quality and service provided by franchisees serving up a good coffee. At Love Coffee and Crepes, customer feedback reveals that some customers are reducing the frequency of their food extras, such as sweet treats. However coffee sales remain strong, and the franchise is offering more meal deals. Adding value to the customers’ offer makes sense in cost-conscious times but while franchise brands are addressing this in some way, there appears no obvious trend for value-seeking. At Aromas, Andrew Hely says “Although our menu and

It’s possible that many operators could justify a modest rise in the price of a cup of coffee so long as they maintain or improve the quality of other more intangible aspects that feed into the price of coffee such as excellent customer service, venue atmosphere, quality and efﬁciency product offer is premium by design, our pricing structure is mid-market. As such, customer satisfaction relative to pricing remains, in broad terms, quite high. Our menu offer currently contains a number of value-for-money products. In general though, there has been no noticeable increase in demand for these products or for that matter any noted demand for an increase to this range.” There’s also no particular trend showing

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What marks your brand as different? We’re a speciality coffee company that roasts and delivers coffee to its 46 stores. The business is founded on the mantra to create an individually perfect cup of coffee – every time, so we take care to instil this across the organisation; from our baristas at store level to each member of our management team, who back up and support the daily operations of each franchise. Is your brand national? It is Queensland based. Major form of national marketing: market studies are completed before any store openings and this information is used to develop targeted opening promotion campaigns, based on demographic profiles of local residents. Each year research is conducted into international flavour profiles along with insight into drink trends in Australia. This information is used to develop promotions to enhance the customer experience and drive sales. There’s also a brand magazine, Grind, which provides a voice for the brand and is a tangible element to the marketing mix. An upcoming campaign will raise awareness and build the brand in the Brisbane area. Turnkey investment: From $350,000 to $500,000.

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Coffee|Opportunities

GLORIA JEAN’S COFFEES What marks your brand as different? To achieve our vision to be the most loved and respected coffee company in the world we are committed to providing our guests with consistent highest-quality coffee and outstanding personalised service in a vibrant store atmosphere. We value commitment to excellence; partnerships based on integrity and trust; a belief in people and changing lives and fostering a culture of passion throughout our company. Is your brand national? Yes. We have opened more than 500 coffee houses in Australia since 1996. Altogether we have opened over 1000 outlets globally in 40 countries. Major form of national marketing: Campaigns are promoted through multiple channels; our 2010 marketing campaign included TVCs, social media, magazine advertorials, web banner ads, public relations and community marketing, winning the FCA Award for Marketing Excellence. Crucial to the success of our retail operations is Gloria Jean’s Coffees’ in-house marketing agency, Immersed, which includes a full design, creative, brand, campaign, PR, social media, digital and product team. The team is working on a multimillion dollar campaign that will include TVCs, a prime-time program sponsorship, social and digital media and an instore transactional driving promotional mechanic. Turnkey investment: From $300,000 to $450,000.

At Gloria Jean’s Coffees we strongly believe that value is not just about price, but also the quality of experience we offer our guests among Love Coffee and Crepes’ customers. “Everyone is different,” says Carly Traber, national marketing manager. “Lots of people select the Meal Deal offers from the menu such as a coffee and crepe, or pancakes and juice. However there are still many people who are not bothered with price differences and

their purchase will reﬂect that.” Offering something for everyone is the answer at Gloria Jean’s Coffees, with an extensive product range with multiple price points designed to appeal to the widest possible range of guests, says Gareth Pike, general manager. This, coupled with strong

Why choose Hudsons Coffee?

“Hudsons Coffee is a strong brand in the market place and they’ve provided us with a clear road map of how to structure and run a successful business.” Terry & Marisa Orfanidis, Vic

Franchising opportunities now available in: • • • • • •

Bendigo, Vic Shepparton, Vic Newcastle, NSW Kareena, NSW Gawler, SA Brisbane Private Hospital QLD

For more information, call Gill on 0413 433 612 or visit hudsonscoffee.com.au

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Opportunities|Coffee

operations and marketing, has seen sales growth from the same time last year.

Selling the brand So how does a coffee business stand out? Encouraging repeat business through loyalty programs is one way that Love Coffee and Crepes is actively marketing at a local level. Add to this great customer service, improved product quality, and unique promotions as ways to stand out from the competition, says Traber. “At Gloria Jean’s Coffees we strongly believe that value is not just about price, but also the quality of experience we offer our guests,” says Gareth Pike. “Is the environment and atmosphere in the coffee house right? Are the service levels the best that they could be? Our focus is guest expectation and how we can meet and exceed this.” The vision at Aromas is to position the brand as the premier boutique cafe brand nationally, says Hely. “As such we are really more focused on the delivery of a high-end product and service offer. We have no opportunity to inﬂuence what our competitors do but we certainly have the opportunity to inﬂuence the product and service interactions that our customers receive. “We will continue to focus on the end delivery of these core services by providing unparalleled operational and policy

CAFE2U What marks your brand as different? Cafe2U is a different business model because the mobile coffee vans serve espresso coffee in non-traditional locations, primarily at workplaces and weekend events. Is your brand national? Yes. Major form of national marketing: We have two marketing programs. To the potential franchisee, digital marketing, franchising press, PR, localised tactical campaigns and to the franchisees’ customers (paid out of the franchisees’ marketing fund), digital marketing, on-van communications and PR. Turnkey investment: $125,000 + GST

XPRESSO DELIGHT

07 3177 0842 36| FRANCHISING MAY/JUN 2011

What marks your brand as different? As a business to business service, what we provide is who we are: a very personalised service delivered by a family of franchisees passionate about what they do. Is your brand national? Yes. We have over 150 franchisees throughout all states in Australia and across New Zealand. Major form of national marketing: TV infomercials, Foxtel commercials, newspapers and industry magazines. Turnkey investment: Total investment cost is $69,400 inclusive of coffee systems in locations, training, franchise kit and stock for the ﬁrst couple of months of operation.

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Opportunities|Coffee

LOVE COFFEE AND CREPES What marks your brand as different? It is a new concept that offers consumers a unique menu and experience when choosing a place to meet friends at. Is your brand national? We have stores in Queensland but as we grow are looking to expand into all states. Major form of national marketing: Campaigns based around competitions or giveaways and launches of new and limited time only products. These are promoted with in-store posters, ﬂyers and badges, in-centre marketing, local area marketing and e-ﬂyers to the customer database and online. Turnkey investment: From $290,000 to $395,000 depending on site, store size and location.

support for our franchisees and partner organisations. If we get all of these things right our customer base will undoubtedly reward us with their loyalty,” he says. Pike agrees that competition is certainly intense, but welcome. Rising to the challenge of competition is vital for businesses to survive and thrive, he says. The company is expecting 2011 to be a landmark year for Gloria Jean’s Coffees as a two year brand project will be unveiled soon. “The project will touch every element of our business, from teams and training to menus and coffee house look and feel. This will build on our foundation for our future growth,” says Pike.

Proﬁtable plans Franchisees in the fast growing franchise Xpresso Delight are in a very enviable position, says franchisor Stephen Spitz, because demand outweighs supply. “So we concentrate on providing quality coffee with service excellence and exceptional convenience day-to-day to our clientele. But at the same time we are always improving our systems to allow our franchisees to be even more productive and successful without increasing the amount of time they have to be in the business.” In the business-to-business Xpresso Delight network, proﬁt margins have remained the same, reports Spitz. “We are competing with a cafe on a street corner [but] our prices are a third of what the average cost of coffee is today.”

There are still many people who are not bothered with price differences and their purchase will reﬂect that

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Coffee|Opportunities

A TASTE FOR COFFEE Research undertaken by Nielsen on behalf of The Coffee Club shows 76 percent of adult Australians visit cafes at least once a month, with only 11 percent declaring they never visit. And Sydney is host to Australia’s highest rate of coffee consumption, according to the research. Kevin El-Hassan from Hurstville, Sydney, enjoys up to four cups of coffee daily and visits coffee outlets at least 10 times per week. “It’s an accompaniment to breakfast in the morning and a kick-starter in the afternoon – it’s a crucial part of anyone’s day,” El-Hassan says. “It is part of the social fabric; you meet up for a coffee.” Kenton Campbell is managing director of Zarraffas Coffee. He says profit margins are constantly changing with the costs of ingredients. “However we aim to meet a 65 percent average gross profit for drinks and 55 to 60 percent gross profit on food.” Pike points out that profit is always a balance of managing costs whilst driving increases in sales. “Gloria Jean’s benefits from significant group buying power, along with our unique position in buying direct from Rainforest Alliance certified farms,” he says.

Keeping an eye on the costs of the main product is the way Cafe2U maintains margins. “Our focus is on providing great espresso coffee, which is less vulnerable to price competition, thereby insulating our franchise partners against margin erosion due to price competition,” says managing director Derek Black. The major proﬁt concern at Love Coffee and Crepes is rent. “This means site selection and a good deal of time is spent on rent and lease agreements

We are always improving our systems to allow our franchisees to be even more productive and successful without increasing the amount of time they have to be in the business which is crucial for all our stores in our network,” reveals Carly Traber. Proven systems, procedures and business support can go a long way to maintaining franchisees’ proﬁt margins, suggests Aromas Andrew Hely, and that is one aspect of a franchise that appeals to new business owners.

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Opportunity|Hair & beauty

BEAUTY AND THE

BUSINESS W

axing, haircuts, body piercing, facials, spray tans, massages – all of these services demand at least a little bit of physical contact. The health and beauty industry thrives on people wanting to be plucked, groomed, smoothed or soothed. But what’s involved for the business owners? How hands-on do franchisees have to be in their business in order to make it proﬁtable and to establish a strong, loyal customer base? While every franchise system is different, most within the health and beauty industry don’t require franchisees to be trained therapists or hairdressers. But while franchisees might be able to get out of doing the waxing and plucking, they still need to have a

proactive, hands-on approach to the business so that it too can blossom and be beautiful.

Experience Cheryl Bastow, national franchise recruitment manager at Endota Spa describes the business as a cross between an upmarket day spa and a beautician. Services include facial treatments, body wraps, eyelash tinting, waxing and organic spray tans. Franchisees don’t need to have experience in the industry in order to join Endota, which recently welcomed a farmer and an ex-detective to the team. While Bastow says franchisees should be business savvy, she also believes that a career at Endota can be a welcome seachange for corporate climbers. WWW.FRANCHISE.NET.AU

ENDOTA SPAS NUMBER OF OUTLETS IN AUSTRALIA? 62 COST OF TURN-KEY FRANCHISE? Varies depending on size and location – between $300,000 and $400,000 FRANCHISE TERM? Five years. MARKETING LEVY? Two percent – the fund is owned and managed by the franchisees ROYALTY LEVY? Seven percent HOW MANY STORES DO YOU PLAN TO OPEN BY THE END OF 2011? Approximately 20 DOES THE FRANCHISEE NEED HEALTH AND BEAUTY EXPERIENCE? No NUMBER OF STAFF IN THE AVERAGE OUTLET? Eight employees varying from full and part-time therapists to contractors and trainee MAY/JUN 2011 FRANCHISING | 41

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Hair & beauty|Opportunity

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BLOW DRY BAR NUMBER OF OUTLETS IN AUSTRALIA? 10 COST OF TURN-KEY FRANCHISE? $120,000 FRANCHISE TERM? 10 years

“We’re looking for motivated people with lots of communication skills who are wanting to have more balance in their life, who have probably come from quite a busy corporate background and are wanting to put something back into the community as well as make a really lovely, down-to-earth, heavenly job for themselves,” she says. An interest in health and beauty is important, but only when it’s combined with an understanding of what it takes to successfully operate a business. “Most people do have a keen interest, but you need a balance as well. There’s no point being off with the pixies and not having any basic business nous, because otherwise it’s very well meaning but not necessarily sucessful.” Ella Bache, which has 83 franchised beauty salons across the country, also doesn’t require franchisees to be trained beauty therapists, although experience in the industry is welcomed. We’d look for someone that wants

PRICE ATTACK

NUMBER OF OUTLETS IN AUSTRALIA? 120 COST OF TURN-KEY FRANCHISE? Approximately $450,000 FRANCHISE TERM? Initially ﬁve years MARKETING LEVY? Three percent ROYALTY LEVY? Five percent HOW MANY STORES DO YOU PLAN TO OPEN BY THE END OF 2011? Five DOES THE FRANCHISEE NEED HEALTH AND BEAUTY EXPERIENCE? Our franchisees come from all sorts of backgrounds and currently more than 50 percent are not hairdressers. The most important criteria for new franchisees is a positive, people-person attitude. Our comprehensive training and ongoing support will give you the rest of the tools you need NUMBER OF STAFF IN THE AVERAGE OUTLET? Five full time staff 42| FRANCHISING MAY/JUN 2011

MARKETING LEVY? Two percent ROYALTY LEVY? Seven percent HOW MANY STORES DO YOU PLAN TO OPEN BY THE END OF 2011? 20 DOES THE FRANCHISEE NEED HEALTH AND BEAUTY EXPERIENCE? No NUMBER OF STAFF IN THE AVERAGE OUTLET? Seven to represent Ella Bache in a professional manner and is nurturing, self motivating, responsible and has had some sort of small business owner operator experience. Someone who is committed to growing their business and is capable of following a nationally planned marketing strategy,” explains Manal Haydar, franchise development executive. Franchisees without therapist accreditation need to hire a head or senior therapist to work full time in-store to allow them to focus on running the business. “We do have numerous salon owners who are not qualiﬁed beauty therapists but they are in the business at all times, seven days a week, and their role within the business is to motivate, encourage and train their staff. They’re very servicebased, meeting and greeting clients, so they’re also retailing and ensuring that the day-to-day operation of the salon is very effective and efﬁcient.” The same goes for Hairhouse Warehouse, a “one stop shop” for hair and beauty, where 60 percent of the average

interaction. You need a retail manager, a salon manager and then below them you need to have the team. The franchisee is effectively there for the people, leading the people, managing the key stakeholders: the landlord, the suppliers, and then just enjoying life.”

The job description Price Attack will also accept franchisees that have no beauty therapy or hairdressing experience, but it won’t accept franchisees that see the business as simply an investment opportunity. Franchisor Barry Jarred says the franchisor must be hands-on, working on and in the business. “All our franchisees, literally, are owner operators,” he says. “If they want to get the best results they have to be hands-on operators and not sit back and leave the business running to someone else,” he says. Franchisees also need to be willing to follow a proven business plan but at the same time must be a team leader who is capable of hiring, ﬁring and inspiring staff.

We look out for their vision, how they can create their own wealth ... we don’t want a franchisee that just wants one store 100 square metre outlet comprises professional haircare products and the other 40 percent is taken up by a fully functional salon. The vast majority of franchises also have a beauty room on the premises where services including spray tans, piercings, waxing and nail treatments are performed. “You deﬁnitely don’t need to be a hairdresser to be running a Hairhouse Warehouse business,” said Arthur Mitroulas, general manager. “You deﬁnitely need to know how to employ great hairdressers to do the job that they need to do, but you are essentially running a fully merchandised business that has a lot of planograming, stock management and customer service WWW.FRANCHISE.NET.AU

“We look for people who will listen and follow a system. If there are people who want to come on board and think that they can turn around and change the whole structure and operate differently then we tell them that they’re better off running their own business independently. “The important thing is to make sure that you are a person that can comply with a proven and successful business.” Mitroulas from Hairhouse Warehouse says that while it is very important for the franchisee to work in-store as much as possible for the ﬁrst year of their term, the franchisee, assuming that he or she has employed skilled and capable staff, is then able to work on the business from arm’s

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JUST CUTS

Opportunity|Hair & beauty

NUMBER OF OUTLETS IN AUSTRALIA? 154 COST OF TURN-KEY FRANCHISE? $160,000 to $240,000 FRANCHISE TERM? A term of five years or the term of the lease of the premises on which the franchise operates MARKETING LEVY? A weekly fixed fee of five units: one unit represents the cost of a style cut (the Just Cuts recommended price) ROYALTY LEVY? Fixed fee of 12 units: one unit represents the cost of a style cut (the Just Cuts recommended price) HOW MANY STORES DO YOU PLAN TO OPEN BY THE END OF 2011? Five DOES THE FRANCHISEE NEED HEALTH AND BEAUTY EXPERIENCE? No, you don’t have to be a hairdresser to own a Just Cuts salon, you need to be committed to the growth of your business. A majority of Just Cuts franchisees are investors without a hairdressing background NUMBER OF STAFF IN THE AVERAGE OUTLET? Between eight and 10 reach. This will help them to become multi-unit franchisees, something that Hairhouse Warehouse strongly encourages. “We look out for their vision, how they can create their own wealth. Because we don’t want to have a franchisee that just wants one store. We want them to build their whole network of stores so they can stretch to as many as five stores,” Mitroulas explains. Franchisees at Hairhouse Warehouse are actually deterred from having too much of a hands-on approach to business. “We have franchisees saying that they want to do the piercings course and we just say ‘No, never get it done. Get someone who is able to do it day in, day out so you can focus on x, y, z’. “With piercings you have to get someone trained up and it’s part of OH&S and there’s an operations manual around it and you need to have all the certificates and it gets audited by us. So there’s all these things that they need to be aware of.” At Ella Bache, the typical franchisee has had small business experience, is savvy, passionate about the industry, financially secure, nurturing and loves interacting with people. Like Hairhouse Warehouse, Ella Bache encourages new recruits to work in the business for the first six to 12 months to learn the ropes. While the busi-

ness does not accept people that see it as purely an investment, Ella Bache franchisees can still operate the business efﬁciently and effectively without being in-store 24/7. “It is encouraged for them to be hands-on in the business but, for example, if a female is looking at having a baby or can’t be in there full time, it is very much recommended that they work two or three days in the business. There are some therapists that work two or three days in the business and they still work on the business. So they’re recruiting staff, managing staff, advertising and marketing.” And hiring efﬁcient and reliable staff is key to making your own life easier as a franchisee, says Manal Haydar. “The way that therapists are recruited in the salons is that they actually take ownership as if it was their own, and that’s part of our training. If you as a client walk in and you have one of the therapists treat you, you’d feel as if she was running her own business. If there isn’t a salon owner in the business there’s always a manager or head therapist, and they all know the values of the business.”

Join , for a maximum investment of $200K + stock & become part of a growing network of over 70 stores nationally

No experience necessary, full training progam & ongoing support provided from an experienced retail team

Exclusive brands with high margin & strong partnerships with leading international sporting brands

3iD Video Foot Analysis uses the world’s leading gait technonolgy. This new exclusive brand asset is now featured in-store. For more information contact Carly Mackay Franchise Development Manager (03) 9567 2600 or cmackay@sportsco.com.au www.sportsco.com.au

Training It is particularly important in the hair and beauty industry for customers and clients to feel that the people performing their treatWWW.FRANCHISE.NET.AU

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ELLA BACHE NUMBER OF OUTLETS IN AUSTRALIA? 181

ments or selling them their beauty products are knowledgable and reliable. After all, it’s their appearance that’s at stake. “We offer our salon owners product knowledge and training, so we go into salons and train the therapists. There are Ella Bache ﬁeld trainers who obviously support in-salon business planning, marketing, PR, sales initiatives, as well as ensuring that all staff are up to date with skin care treatments, techniques and product knowledge. There’s a calendar that is sent out every six months so [franchisees] can send their staff to be trained,” says Haydar. Ella Bache also has business managers with salon territories, and their role is to manage business performance and ensure that there’s a drive in growth and that the salon owner is getting great returns. Similarly, Endota Spa offers a support team for its franchisees including an operations manager, a dedicated area manager to provide ongoing service and support as well as a marketing manager. The franchise also requires new

COST OF TURN-KEY FRANCHISE? The investment can vary widely and is very much dependent on site, size and location. We have a very attractive conversion model in place for non-Ella Bache salon owners. These are existing salon owners looking at joining our system FRANCHISE TERM? 15 year franchise agreement – three terms of five years with no renewal fee MARKETING LEVY? No ongoing marketing fee ROYALTY LEVY? No royalties HOW MANY STORES DO YOU PLAN TO OPEN BY THE END OF 2011? 10 DOES THE FRANCHISEE NEED HEALTH AND BEAUTY EXPERIENCE? No you don’t need to be a beauty therapist to own your own salon, however you need to have a passion for beauty. The company has a beauty college that produces a ready–trained cohort of graduates every year, so finding suitable beauty therapist is not difficult. We also have a distance education program that enables you to study beauty therapy and work in your business NUMBER OF STAFF IN THE AVERAGE OUTLET? Four to six therapists, however this also is dependent on the size of the salon which you participate in if you aren’t a beauty therapist, and we encourage our business owners to do that training,” explains Bastow.

Professionalism and expertise are essential for any business within the hair and beauty industry, where clients often feel vulnerable franchisees to do a number of courses before they open for business. “We have a business owners short course, we have a training school in Sydney and Melbourne and we have a business managers short course or a spa directors course that they have to undertake. We also have product and treatment training courses at the school

She adds that professionalism and expertise are essential for any business within the hair and beauty industry, where clients often feel vulnerable and are placing a degree of trust in the therapist or business owner. “It’s personal, it’s very important and a lot of people are very self-conscious about their skin or any problems that

HAIRHOUSE WAREHOUSE NUMBER OF OUTLETS IN AUSTRALIA? 133 COST OF TURN-KEY FRANCHISE? $500,000 FRANCHISE TERM? Two terms of seven years MARKETING LEVY? Three percent ROYALTY LEVY? Six percent HOW MANY STORES DO YOU PLAN TO OPEN BY THE END OF 2011? Another 15 DOES THE FRANCHISEE NEED HEALTH AND BEAUTY EXPERIENCE? No, but each salon does require a fully-qualiﬁed hairdresser on the team NUMBER OF STAFF IN THE AVERAGE OUTLET? At least four

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they’re having. The therapists are very caring and nurturing but I think that if you don’t have the background it’s very important that you do have good product knowledge because otherwise you’re just parroting and you’re not able to assist the client properly.” Regardless of the franchisee’s business or beauty experience, Price Attack trains its team on every aspect of operating an outlet well before the doors open. “We provide a four week training period and then we’ve got our ﬁeld staff out there that will actually go into the store and support them once the store is open and operating. “They undergo a lot of training on the systems, so the administrative part of Price Attack, and we bring in our suppliers’ representatives to give them extensive training in the products that we sell. So they’re trained in every aspect of the business,” outlines Jarred. Franchisees are also trained in how to hire and manage staff and while Jarred admits that the personality and people skills of potential franchisees are considered before they sign on the dotted line. Even great customer service can be trained into a new franchisee, he adds. “Customer service is absolutely one of the most important things and I think that’s the case for any business today because people have a lot of options. We spend a lot of time training our franchisees in the importance of giving the best customer service. It is so important.”

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FRANCHISE Join Australiaâ&#x20AC;&#x2122;s leading makeup house and gain dynamic returns on your investment.

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Opportunities|Convenience stores

RISING TO THE

Domini Stuart reports on how convenience stores are helping franchisees overcome obstacles

CHALLENGE W

hile the convenience trade in Australia held up relatively well in the midst of the global ﬁnancial crisis, the latest Nielsen Convenience and Impulse Report shows that growth was slow in the year to March 2010. The Report also highlights continuing challenges, including rising credit card fees, competition from small format groceries, a desire for healthier foods and competition from retailer chains selling fuel. The good news is that there are also key opportunities for growth. “Convenience retailers need to constantly

Caltex operates the Star Mart brand

ﬁne-tune their offerings in the face of increased competition from other channels while never taking their eyes off the basics of cleanliness and efﬁciency,” says Kosta Conomos, executive director, Nielsen Retailer Services. For franchisees, the level of support they receive can be critical. Here’s how three of Australia’s leading convenience franchisors are helping them overcome inevitable obstacles to make the most of opportunities to build a thriving business.

Caltex Star Mart Caltex Australia operates one of the largest convenience retail and fuel networks in Australia, with both franchised and company sites operating mostly under the Caltex Star Mart brand. “Over the past 20 years, we have transformed our business from service stations to convenience stores” says retail operations manager, John Dulgaro. “In the process, Caltex has become one of Australia’s biggest franchisors, with over 85 percent of our retail network operated by independent franchisees.” Caltex Star Mart offers franchisees a successful retail business model with proven systems, tools and processes. They complete an initial intensive training program and are supported in their business by a retail execution program and merchandising strategy. There are also experienced ﬁeld staff across Australia. “Attracting the right franchisees is critical to our ongoing success,” says Dulgaro. “We are actively seeking high-calibre retailers with business acumen who have a passion for convenience, are prepared to work hands-on in their business and who share our vision of being a world-class convenience retailer.” Caltex Star Mart offers a complete business WWW.FRANCHISE.NET.AU

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Convenience stores|Opportunities

package, including a full range of convenience products and services in the shop. There is a growing focus on both fresh items and offers aimed at a growing market segment of time-poor, healthconscious, consumers. “Our franchise model is royalty-based for shop turnover,” says Dulgaro. “However, as Caltex either owns or leases the majority of its sites, fuel

CALTEX STAR MART Number of franchises: Investment required:

Business established: Franchising began:

more than 550 out of a total of approximately 650 convenience retail stores in Australia varies by store. The typical range is between $250,000 and $650,000 for the initial franchise fee and all stock 1941 early 1980s is increasingly being supplied under a commission agency arrangement with the franchisee. “As Caltex owns the fuel until it is dispensed into a customer’s vehicle, franchisees don’t have to invest signiﬁcant working capital in maintaining underground fuel stocks. Instead, they receive a set commission from Caltex for each litre sold.” Caltex claims to have set the standard for convenience retailing in Australia with the develop-

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ment of the 21st Century Caltex (21CC) store format. “This embraces the latest global retail initiatives and trends,” says Dulgaro. “The new and contemporary design features innovative island chillers and merchandising pods which showcase the offers and provide customers with a more open environment for browsing through the store.”

7-Eleven According to national franchising manager, Paul Stevens, a 7-Eleven franchisee buys two things: first, a brand name that’s recognised around the world and, second, a successful business system with particularly high levels of support. “7-Eleven was recognised by the Franchise Council of Australia as Franchisor of the Year in both 2008 and 2009,” he says. In the first instance, in-house teams choose the sites, secure and manage the lease, design the layout of the store and fit it out with all the equipment needed, including a proprietary Slurpee machine. All new franchisees also complete a comprehensive six week training program before opening their store. This takes account of different learning styles by integrating computer-based, hands-on and classroom training along with one-on-one coaching. “We also have an online learning tool for both franchisees and their staff,” says Stevens. “New

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training modules are constantly being developed and uploaded to ensure franchisees and their employees are up to speed with all they need to know to operate their store successfully.” From the beginning, a district manager works with franchisees on a regular basis to help them build their business. There are state and national conferences and workshops, typically a couple of times a year. And, if a franchisee has a question or problem, he or she can ring the 7-Eleven support centre at any time, day or night. “We believe that the three key building blocks of a successful retail business are great customer service; excellence in-store and stock presentation; and staff motivation and leadership,” says Stevens. “So that our franchisees are free to focus on these we take the pain out of some of the tasks associated with running a small business such as equipment maintenance, bookkeeping and reporting, payroll, lease negotiation and management.” The 7-Eleven franchise model is unique in Australia in that income is derived from gross profit, not a sales royalty. “This provides the comfort for franchisees that we are always working with them to grow their profitability because, in turn, it grows ours.” For someone starting a business, perhaps for the first time, the level of recognition associated with

7-ELEVEN Number of franchises: 434 Investment required: The initial cost of between $250,000 and $800,000+ includes an application fee, franchise fee, goodwill payment and stock Business established: 1977 Franchising began: 1978

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the 7-Eleven brand can bring a sense of security. “7-Eleven is the world’s largest convenience store brand and has 40,000 stores globally across 16 countries. It is also the world’s largest retailer based on store numbers,” says Stevens. The ideal franchisee has an optimistic outlook, great stamina and a drive to succeed. “They will demonstrate great skills in personal organisation and presentation, and will always be looking at themselves, as well as to us as their franchisor, for ways they can grow.”

NightOwl Like all successful franchisors, NightOwl is on the lookout for franchisees who are passionate about the business and the brand – and also hardworking. Franchise sales and development manager Joel Douglas believes that, while a good brand will provide the security and conﬁdence of a proven system, it is the amount of work a franchisee is prepared to put into a franchise that will determine its ultimate success. “We also look for candidates who are good with people – not only customers, but also their own staff,” he says. “We want to ensure that our customers will experience the best possible transaction every time they walk through our doors, so staff engagement and training are paramount. That’s why our

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comprehensive training program includes staff as well as franchisees.” Before opening the store, every new franchisee receives ﬁve weeks’ full induction training which covers the system itself, merchandising and convenience retailing. Ongoing support includes regular visits from a

We like being able to show incoming franchisees that they have the ability to grow, that you can make money and, if you have ambition, you can use that money to expand dedicated retail development manager who provides training, help and advice on point-of-sale and back ofﬁce management systems, business management tools, budgeting and ﬁnancial training as well as discussing business plans and opportunities for enhancing both top end sales and bottom line results. NightOwl supports innovative thinking in its franchisees – for example, within the agreed product lines they’re free to tailor their stock to the local market. “While the fundamental aspects of the core

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business need to stay consistent across the entire group there is still room for entrepreneurial spirit,” says Chris Booth, national franchise recruitment manager. “We like it when people walk into their store every time thinking about what they can do better. We’re prepared to help our franchisees to implement their own ideas and achieve their personal goals, and I think that’s something many of them appreciate.” NightOwl has a number of franchisees who have owned a single site for 15 to 20 years and others who have gone on to own multiple stores. “We like being able to show incoming franchisees that they have the ability to grow, that you can make money and, if you have ambition, you can use that money to expand,” says Booth. Another drawcard is an extended range of grocery items. While service station convenience outlets typically stock between 2500 and 3000 lines, NightOwl stores offer around 5000. “While some national chains are downsizing we’re considered a true destination for both impulse and top up shopping,” says Douglas. Since Adam Adams took over as franchisor in 2007 he has been driving the growth of the business through an ambitious store expansion program. “We want to become the customers’ choice for convenience retailing and a franchise system that delivers this offer consistently.”

NIGHTOWL Number of franchises: 60 Investment required: Cost of entry varies according to the size of the store, but generally between $350,000 and $400,000 plus GST for a complete turnkey operation – all training, the franchise fee, opening stock, complete store ﬁt out, everything a franchisee needs to start trading Business established: 1975 Franchising began: 1987

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DESIGNS ON

Keeping ahead of technology and creating a niche in the printing and signage marketplace. By Donna Bennett

DIGITAL T

echnology has an enormous effect on the printing and signage industry, and with an assortment of businesses available, the future looks exciting for franchisees. The most significant improvement has occurred over the last 20 years, with the move from traditional offset printing methods to the development of digital printing. Large format inkjet and laser printers have replaced printing plates, offering savings in time, and enhanced business opportunities. Digital signage (LCD, LED, plasma displays, and projected images) features in public and private environments, such as retail stores and corporate buildings. Another progression is servicing customers through e-commerce initiatives, which is increasingly vital as clients demand fast and simple processes for transferring artwork files, viewing proofs and ordering files.

The price of technology Of course there are costs associated with ongoing technology investments but these vary from business to business and across every franchise system. The view at Signarama is that technology in the signage industry is evolving at such a rapid rate that some level of re-investment will be required by the Name of franchise: Year established: Number of franchises: Multi-unit franchisees: Cost of turnkey operation: Royalty fees: Training costs:

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Worldwide Online Printing 1995 74 (WA, SA, VIC, NSW and QLD) 19 (average two each) $200,000 to $230,000 plus working capital 10 percent Initial training is $13,000 and ongoing training is provided based on the training courses required

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franchisee to maintain a product offering. Machinery such as flat-bed digital printers, latex printers and digital signage allow sign companies to be more expansive and innovative. All of these technologies have served to revolutionise the capabilities of traditional signage, and invariably lead to a wider range of services available, along with reduced operating costs and greater efficiencies. The nature of a Snap business requires up-to-date servers and computer systems to be maintained by each franchise. Snap Franchising procures licences for systems such as quoting and invoicing, customer relationship management, online ordering, web to print interface, and one-to-one personalised marketing tools. At Kwik Kopy all franchisees work on a three to four year technology investment plan. The investment levels vary at individual centres according to market demand and customer requirements. Kwik Kopy has invested heavily in keeping at the forefront of technology, particularly in providing an effective and efficient web2print facility launched in 2009.

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Keeping track of the trends is important at Signwave. Andrew McKay, general manager, Fastsigns International – Signwave Australia, says “We have a dedicated research and development department at our head office in Dallas, which identifies industry trends, future technologies and equipment.” He says franchisees carve themselves a niche in the marketplace “by taking advantage of the research and development passed on from head office, sophisticated marketing, and presenting themselves as complete marketing solutions providers”.

What is cloud computing?

Kwik Kopy Australia 1982, in Australia 108 locations across Australia known as “Kwik Kopy Corporate Design & Print Centres” Multi-unit franchisees: Eight (average three each) Cost of turnkey operation: Greenﬁeld in new territory – there are low cost entry-level business models from $100,000 up to larger commercial businesses that cost up to $250,000 Royalty fees: Based on a set percentage of sales turnover Training costs: New owner training costs are included in the franchisee fee on commencement Name of franchise: Year established: Number of franchises:

Wikipedia deﬁnes cloud computing as the provision of computational resources on demand via a network. Cloud computing can be compared to the supply of electricity and gas, or the provision of telephone, television and postal services. All of these services are presented to the users in a simple way that is easy to understand without the users needing to know how the services are provided. Evan Foster, national director, Australia United Franchise Group, says “Signarama anticipates investment in cloud computing technologies for the signage industry, and has just launched its own exclusive cloud-based point-of-sale system.”

Beyond printing Today’s customer looks for a consultancy approach as well as print services. “Rather than just being a basic printing and photocopier service, Kwik Kopy franchisees provide advice on how customers can get the best possible product for the right budget,” explains Graham England, franchise sales manager of Kwik Kopy Australia. “Our centres also provide superior graphic design services as well as marketing expertise; this holistic approach allows centres to carve out a niche, which provides our customers with all the product services to meet their communications requirements,” he says. Signarama recently launched what it considers to be Australia’s most comprehensive online signage design and ordering site, called www.shopsignarama. com.au, says Evan Foster. Franchisees can now provide a service to those clients that want to be able to design and order their signage online. “So we have created the ability for people to order

Signwave 1997 20 (NSW, VIC, QLD and WA) Multi-unit franchisees: One Cost of turnkey operation: $250,000 Royalty fees: 7% plus 2% marketing Training costs: None Name of franchise: Year established: Number of franchises:

24/7, wherever they are, and with hundreds of prepopulated designs you don’t need to be a designer to create your own signage,” Foster adds. “We like to think that we’re leading the industry in this service.” At Snap, technology has played a major role in its various brands and products, reﬂected in the removal of the word ‘printing’ from its name. New Snap products include web design, e-products, QR codes and videos – all of which are technology based. “Launched last year, Snap Level 2 has come about because technology has made it so easy to provide

Signarama Globally 1986, in Australia and New Zealand 1998 Australia – 87 (NSW – 30, VIC – 20, TAS – 1, SA – 6, QLD – 19, WA – 11). New Zealand – 22 (the franchise is called Speedy Signs). Multi-unit franchisees: Three (two each) Cost of turnkey operation: Greenﬁelds location – $220,000 plus working capital Royalty fees: 6% of gross monthly sales, capped at $60,000 gross turnover per month (sales in excess royalty free) Training costs: Included in turnkey costs Name of franchise: Year established: Number of franchises:

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outstanding marketing and e-marketing services to our customers,” says Grant Vernon, Snap CEO. Snap’s other print services (Snap Promote and Snap Direct) are also based on the latest technology. Unable to give too much away just yet, Vernon hints at an even more promising future for new franchisees: “We are about to announce a new franchise model which is based on the latest technology.”

Success – franchisor or franchisee? In a franchise system the franchisee is benefiting from the model created by the franchisor. So is success down to franchisor or franchisee? At Kwik Kopy the franchise system is a foundation for franchisees to add their own individual skills, flair and expertise to achieve success. “This enables owners who do not have print related experience to operate successful and profitable businesses,” says England. Signwave provides the process and structure combined with a sound business model,

ethics and ongoing support. However, success is up to each franchisee’s contribution. “Ultimately, these are all independently owned and run businesses and nothing will succeed without the dedication and passion of the owner,” says McKay. Signarama has developed a highly recognisable brand name in the industry in Australia, but is also proud of the work franchisees produce on a consistent basis. “Our franchisees are our best ambassadors and have contributed an enormous amount to the growth of our brand in Australia,” says Foster. Snap operates a business-to-business model so service and relationships are critical. “We have one of the most recognised brands in Australia,” says Vernon. “Even so, our systems and support would not work without the dedication and hard work of the franchise owners.” It is the franchisees who make Snap what it is. “They bring their own vitality and ﬂavour to each centre,” Vernon insists. “They are the ones working into the night and on weekends to make urgent deliveries and going out of their way to satisfy customers.”

SNAPSHOT OF FRANCHISEE BACKGROUNDS • Salespeople and small business owners • Retail senior executives • Chief financial officers • Graphic designer • Magazine editor • Miners and engineers • Air traffic controllers • Police officers • Printing, marketing, law and finance • 50-60 year old husband and wife teams • 35-40 year old former corporates • 28-35 year old entrepreneurial types

Snap Franchising (brand name is Snap) Franchising since 1980, the business is 100+ years old 147 Snap centres in Australia (ACT, NSW, QLD, SA, TAS, VIC and WA) plus six in New Zealand. Multi-unit franchisees: 12+ (two to six each) Cost of turnkey operation: The current model is approximately $250,000, the new model is under $115,000 Royalty fees: 8% and 2% advertising levy Training costs: Start up training included in franchise fees, free Snap Academy online programs, new technology and products training costs reduced Name of franchise: Year established: Number of franchises:

We like replicating success too. Introducing Donaldson Walsh, FCA Supplier of the Year in 2009 and 2010, and Corporate INTL’s 2010 Franchising Law Firm of the Year in Australia. If you seek franchise excellence, call us now.

AUSTRALIA-WIDE ASSISTANCE Kings Chambers 320 King William Street Adelaide SA 5000 p: (08) 8410 2555 www.donaldsonwalsh.com.au

FCA Excellence in

Franchising Awards Donaldson Walsh Lawyers 2010 Franchise Supplier of the Year

DW Franchising Team (l-r) Tim Duval, Mirella Angelino, Richard Phillips, Christopher Bruce, Lisa Dowdy and Alan Branch.

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Opportunities|Perth Expo

EXPANDING YOUR

A visit to Perth’s Franchising and Business Opportunities Expo, held on May 21 and 22, will shine a light on your future in the franchising industry

HORIZONS A

number of franchise networks will be on display at Perth’s Franchising and Business Opportunities Expo, answering all the questions you might have as a potential franchisee. There will also be a Franchising Advice Centre; a Franchising Seminar Theatre where you can hear experts talk about topics including tax tips and ﬁnancing your business; and a Franchising Bootcamp which, in just 90 minutes, will give you all the basics on the Code of Conduct and setting up your franchise, while also hosting an open discussion where you can ask franchisees about their own experiences in the industry. Business opportunities include:

RACING AND WAGERING WA (RWWA) RWWA’s TAB retail network offers a range of TAB agencies which provide easy access to the full range of TAB wagering products and services. Full-time TAB agencies feature a dedicated service with a comprehensive display of racing vision and information.

WHAT DO YOU HOPE TO GET OUT OF THE EXPO? The expo offers RWWA the ﬁrst ever chance to promote TAB as a business you can buy. It will complete a marketing campaign aimed at agent recruitment and will help RWWA ﬁll the funnel of prospective TAB buyers by offering the key points to owning and operating a TAB. WHERE IS THE BUSINESS AT TODAY? There are 91 dedicated TABs in Western Australia. Mike Saunders, manager retail sales, says “The focus of the TAB is on engaging with our customers and meeting their needs. We are competitive in the marketplace and striving to make our retail outlets more contemporary and appealing. Our recent advances in technology and operating systems have given us further scope for improvement.” WHAT COSTS ARE INVOLVED FOR NEW FRANCHISEES? Saunders says “Imagine a very simple business package with no leasing or stock.” Upfront TAB agency costs include an application fee of $300, training and familiarisation fee of $5445 (to be paid to RWWA in advance),

Perth Franchising and Business Opportunities Expo Book your ticket online and get into the expo for FREE! Visit www.franchisingexpo.com.au The Expo will be held at Perth Convention and Exhibition Centre on Saturday May 21, 2011 (10am-5pm) and Sunday May 22, 2011 (10am-4pm) Come along and say hi to the Franchising magazine team at the Franchising networking lounge! 58| FRANCHISING MAY/JUN 2011

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JESTERS Jesters offers gourmet pies and other baked products along with coffee and cakes. It also specialises in chips which are unique to the Jesters brand. WHAT DO YOU HOPE TO GET OUT OF THE EXPO? Terry Sherlock, general manager, says “We are looking for exposure of our revamped franchise, which has grown to include products baked fresh in store.”

legal fees of approximately $800; and stamp duty, which is calculated based on the rates applicable at the time of the agency sale. WHAT ARE THE PLANS FOR 2011? “Project Connect is RWWA’s new, longterm retail focused project. The aim is to continue to build on an already highly successful wagering channel. We are looking to invest in our bricks and mortar and develop our people to ensure achievement and a customer facing attitude across all levels of the organisation.”

WHERE IS THE BUSINESS AT TODAY? “We have expanded our range of products dramatically to provide a selling opportunity throughout the day covering the breakfast, lunch and afternoon trade. We have a low on-site preparation requirement with most of the product arriving pre-baked or ready to sell. We also want to simplify the labour costs in-store and maximise the retail space,” says Sherlock. Jesters currently has 30 franchised outlets in Perth and 19 in New Zealand.

THE FRANCHISE SHOP The Franchise Shop specialises in servicing the franchising industry in Australia and New Zealand. The Franchising and Business Opportunities Expo in Perth will give

the business the ability to recruit new franchisees for its clients and ﬁnd new companies that want to enter the franchising world. After the recent sale of the ﬁrst franchise for

its own business, The Franchise Shop is keen to establish ofﬁce in Brisbane and New Zealand while also developing its website and launching a number of new opportunities for franchises.

It has just opened its second international franchise in South Korea and will expand further to other countries. WHAT COSTS ARE INVOLVED FOR NEW FRANCHISEES? Jesters’ franchise fee is $35,000 with ﬁtouts from $150,000. The franchise also charges a six percent royalty and ﬁve percent marketing fee. WHAT ARE THE PLANS FOR 2011? “To open new style stores in WA and start the move interstate. We are investing heavily in our kitchens to improve productivity and our current shops will be upgraded over the next two years,” explains Sherlock. Jesters’ current focus is the Asia Pacific region and there are plans to sign up another license in the next 12 months. >> continues on page 63

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Would you like to be part of a well known and established Australian brand?

Eureka Multimedia Pty Limited is now franchising! Eureka is seeking motivated franchisees to take advantage of a profitable business opportunity that recognises children are the future of Australia, and who also want to make a positive contribution by enhancing a childâ&#x20AC;&#x2122;s learning experience.

Find out how you can become a part of this excellent value for money franchise: Contact: Phone: Email: Website:

Tony Alevras (02) 9838 7575 Fax: (02) 9838 9191 franchise@eurekamultimedia.com.au www.eurekamultimedia.com.au AWARDS

PROUD SPONSORS OF

a Federal Government initiative

UPDATE:

2011 sponsorship confirmed

currently airing nationally on the Nine Network

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HARRY AND THE BOYS Offering franchisees the opportunity to operate their own casual dining fast food restaurant selling a range of products including kebabs, burgers, ﬁsh and chips, pizzas and ice creams, Harry and the Boys is also a takeaway and home delivery system.

There are currently four outlets operating in Perth, with the franchise looking to expand further throughout metro Perth and then into the rest of Western Australia. The turn-key cost is between $250,000 and $500,000.

FASTWAY COURIERS “At Fastway Couriers, our team provides reliable, cost effective courier services right across Australia. Backed by the latest technology and great training, our courier franchisees enjoy exclusive territories, no weekend work and guaranteed income packages. Our simple, easy-to-operate system doesn’t require any previous experience, just a friendly approach and a desire to delight customers,” says marketing coordinator, Kacey Deane. WHAT DO YOU HOPE TO GET OUT OF THE EXPO? Attracting the best quality people to the organisation is the key to Fastway’s success and that’s exactly the outcome the company hopes to achieve at the expo, Deane explains. “The expo provides us with the ideal environment to have an informal chat with prospective franchisees; the best way to find out if we’re the right fit for each other as business partners.” WHERE IS THE BUSINESS AT TODAY? Fastway is represented by over 1600 franchisees across nine countries including New Zealand, Australia, the UK, Ireland, Germany and South Africa. In Australia, the franchise has 700 courier franchisees. WHAT COSTS ARE INVOLVED FOR NEW FRANCHISEES? “The great thing about a Fastway Courier franchise is the fact that there are no ongoing fees, royalties or marketing levies. Our exclusive territories start from an investment of just $25,000. Our franchise agreements are perpetual, which offers our franchisees the beneﬁt of no costly renewal fees and the opportunity to grow, split and on-sell their business for a capital gain,” says Deane. WHAT ARE THE PLANS FOR 2011? Fastway Couriers is set to expand its business by deepening its digital offering to service the online retail sector.

GNC LIVEWELL GNC (General Nutrition Centres) is the largest global specialty retailer of nutritional products including vitamin, mineral, herbal and other specialty supplements such as sports nutrition, diet and energy products. >> continues on page 64 WWW.FRANCHISE.NET.AU

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WHAT DO YOU HOPE TO GET OUT OF THE PERTH EXPO? Paul Smyth, national operations manager, says the Perth expo will allow the franchise to “inform those who are interested on exactly what the GNC franchise package includes. We will have our ﬁrst Perth GNC franchisee at our booth on Saturday to answer any questions people may have. GNC hopes to inspire and encourage those passionate about the health industry to jump on board.” WHERE IS THE BUSINESS AT TODAY? Today there are over 6000 GNC franchised stores in more than 53 countries, including in Australia. WHAT COSTS ARE INVOLVED FOR NEW FRANCHISEES? $250,000 to $300,000 is the turnkey cost. Ongoing fees are three percent for marketing and a ﬁve percent royalty fee. WHAT ARE THE PLANS FOR 2011? “Supporting franchisees is our point of difference. We will continue to grow the strength of our franchisees as well as open new stores in exciting locations around the country,” Smyth says. “We are currently looking at the best locations for new stores.”

RP VENDING The business consists of a ﬂeet of vending machines located in various small and medium-sized businesses. The ma-

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chines provide a convenient retail service to the sites and are stocked, maintained, cleaned and run by the owner. WHAT DO YOU HOPE TO GET OUT OF THE EXPO? At the show RP Vending Systems will be introducing the new “Allusion” range to Western Australia. The company also hopes to expand its operations in the state and build its base of customers. WHERE IS THE BUSINESS AT TODAY? “RP Vending System has been operating for over 15 years and has thousands of machines placed across Australia in all states and territories. With over 500 RP Vending Systems business owners around the country we are still seeing strong growth,” says Nick Hull, marketing co-ordinator. WHAT COSTS ARE INVOLVED FOR NEW FRANCHISEES? RP Vending Systems has no franchise fees or royalties. Owners pay for their vending machines and equipment. WHAT ARE THE PLANS FOR 2011? The focus will be on establishing the RP Vending Systems’ new Allusion range of vending machines. The three machines in the range have been designed speciﬁcally for the Australian market and can cater to all different types of small, medium and large business locations.

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POSTNET BUSINESS CENTRES PostNet will be exhibiting at the Perth Franchising and Business Opportunities Expo, telling potential franchisees about its enormous range of services, which include custom graphic design, computer time rental, document and image scanning services and CD and DVD duplication services as well as VHS to DVD conversion. The business, which is focusing on promoting its brand through various franchising exhibitions throughout 2011, currently has six franchises across Sydney, Perth and Melbourne, and will be launching another seven throughout the year.

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Be part of our growing success 7-Eleven is a global success story with 40,000 stores world wide. This year, 7-Eleven will grow by over 200 stores, providing great opportunities for motivated, energetic and hard working franchisees to join this successful brand. As a 7-Eleven franchisee you’ll enjoy the position of market leader in convenience retailing, backed by one of Australia’s most comprehensive support systems. We want our Franchisees to focus on the important things like looking after customers and building sales. So we take care of things such as payroll, book keeping and marketing, and provide a complete turnkey set up with no rental payments*. We believe working together is the best way to create mutual success. So if you’d like to learn more visit www.7elevenfranchise.com.au or call:

VIC: Peter O’Hara or Michael McNamara (03) 9550 0600 NSW: Shayne Howarth or Mark Moran (02) 9798 0711 QLD: Brett Reading (07) 3511 7733

Franchisor of the Year 2008 & 2009

*expenses incorporated in the 7-Eleven charge

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Franchising|Cover Story

DELIVERING THE

DOLLARS Going into business as a franchisee is an exciting step ﬁlled with opportunities. So how can you make the most of the proﬁt potential by choosing a franchise system that will make you the money you want?

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here are literally hundreds of franchise opportunities available at any one time. How should you decide which one is going to be the most rewarding? The starting point of any business decision is working out what will work for you. John Di Natale, at franchise consultancy DC Strategy, recognises that choosing the most proﬁtable franchise opportunity can be tricky. And it isn’t just about the money. “A successful franchise business

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starts with you; your motivation, passion and commitment. Being clear on what type of business you want to spend your time in is important,” he says. For instance, do you want a retail store or a mobile operation? What will suit you best, a business serving consumers or a business-tobusiness opportunity? Does your interest lie in food, apparel, or something with a more technical or industrial ﬂavour? What will maintain your interest and excitement levels?

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Cover Story|Franchising

When you have whittled down your choices to a shortlist, the real work begins, Di Natale says. “DC Strategy’s research shows prospective franchisees are assessing up to five or six opportunities. They have access to more data than ever before. Franchisor brochures and websites are being supplemented with advice sites, research information and forums and blogs with current, past and other potential franchisees posting their thoughts on the various franchise networks.” While these sources can be useful, carrying out your own due diligence is vital before making any final decision about the franchise. ”Of course, getting the right answers is easier when you ask the right questions,” says Di Natale, who offers a list of points that are worth addressing to help get the decision right. For instance, check if you have detailed financial information on the business. You need to consider past performance over a long enough period to get a historical perspective and insight into any seasonality, he suggests. Consider whether the business looks professional and ask yourself whether you would buy from that business. Question if you understand what drives the business, what makes it tick and how you will grow it. It’s wise to ask yourself if the business is

securing good locations, are current franchisees proﬁtable and happy and do they genuinely recommend the opportunity? “Does the business have a strong advertising and marketing program? Who is in the management and leadership team and what is their background and experience? Are you

Who is in the management and leadership team and what is their background and experience? Are you comfortable putting your trust in them to provide the guidance and support you will need? comfortable putting your trust in them to provide the guidance and support you will need?” asks Di Natale. Is there a clear vision and plan for how the business will continue to grow? How good is the induction and training program? “Don’t be afraid to ask as many questions as it takes to satisfy yourself that you have all the

SALARY SATISFACTION Research from 10 Thousand Feet, a market research consultancy, examines from a franchisees’ perspective what salary can be drawn through the business and the return on investment available for capital invested from the start. Ian Krawitz, who heads up 10 Thousand Feet, explains. “Survey on survey we have seen an improvement across the industry with franchisees’ believing they will be able to get a good return on investment; up ﬁve percent across the board and two percent up on their belief that they can draw a larger salary than they could receive elsewhere.” Krawitz says franchise companies who continue to perform well in this area are most likely to have a good business model, have realistic expectations

of the work involved during the franchisee recruitment process, and a good idea of the potential profitability of the business. They will also have strong systems in place to educate franchisees on how to maximise their returns, he suggests. However, when it comes to financial rewards most franchisees have to wait until their third year of business until they become highly profitable. “So be realistic in your search of franchise opportunities and get a sense of what it will take to achieve your goals and how long it will take for you to be drawing the salary you want from the business, as well as getting into the position where you have an attractive asset to on-sell to someone else,” Krawitz advises.

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Franchising|Cover Story

information you need. A franchisor of any quality system will respect the fact you are making a well informed decision to join their network.” Once you have pinpointed the franchise you believe will meet all the criteria highlighted, then it’s time to look more deeply into the ﬁnancials.

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There’s a four step process to finding the franchise with profit power, writes business accountant Peter Knight of Knight Partners. Here he explains how it can be done. The first step towards achieving your financial goal is to have one. Take a moment right now to decide how much you want to earn. Without this goal as a starting point, you’ll never find what you want. The next step is to look at those franchises which can produce that level of earnings. Having your financial goal in mind means you can be more selective about which to look at. The third step is affordability. You must be able to afford the franchise you are looking at. The only way to do this is be fully aware of all the purchase costs and get a realistic idea of ongoing profit. The fourth step is to crunch some numbers. The only way to truly find the profitable franchise is to cut through the hype and look at the figures. When it comes to the numbers, there are some important things to consider. For instance, how much profit can it make? How much will the franchise really cost? What’s your return on investment? It’s also vitally important to prepare a cash flow forecast so you get a feel for how the money moves through the business.

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CASH FORECAST - 2012 Jan

Feb

Mar

Apr

May

Jun

33,000

22,000

22,000 23,000 25,000 24,000

Income Sales revenue Less: Purchases

4,500

7,540

5,400

Gross Proﬁt

28,500

14,460

16,600 16,250 18,700 16,800

6,750

6,300

7,200

990

540

Less: Overheads Advertising & Promotion 400 Electricity

740

General Expenses

200

250

Interest - Bank

1,545

675

630

720

200

250

1,545

1,250

Lease Payments MV

350

1,250

Rent

3,820

Royalties

1,650

900

1,125

1,050

1,200

Telephone & Internet

235

Wages & Super

7,410

4,420

7,175

7,720

8,720

8,250

Total Overheads

16,350

14,110

15,715 17,820 17,450 17,270

Net Proﬁt

12,150

350

885

-1,570

Crunch the numbers How much will it really cost? The franchisor will let you know about start-up costs, which include franchise fees, marketing and training fees, ﬁt out and equipment costs. But you should also bear in mind the less obvious costs. These include legal fees, accounting advice and the set up costs for your operating structure. You should also consider your own living expenses prior to starting, when you will be in training and not yet earning an income.

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1,250

-470

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How much profit can you make? Profit is what’s left after paying all the expenses, so it’s important to really understand the operating costs of the business. If you’re buying an existing franchise this will be easier to find out as you can check on the records. If it’s a brand new franchise, you will have to think carefully about all the different types of expenses you will incur. Speaking to other franchisees will also help.

The only way to truly ﬁnd the proﬁtable franchise is to cut through the hype and look at the numbers Sales revenue is one of the most important numbers here, so get a really good feel for what they will be. Make an estimate of what the sales will be going forward into the future, on a monthly basis. Use the template on p68 as a guide for this if you are unsure how to do it. Expenses tend to be easier to predict

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Franchising|Cover Story

than sales, because we know what the rent, wages and other costs will be. Give this plenty of thought and use actual or best estimates in your forecast. You can then see your proﬁt potential and decide if it’s worth pursuing.

How to recognise a money making franchise What to look for: it’s all about profitability and cashflow. Make sure the business generates strong profits and healthy cashflow. Check the financial statements for the previous three years to confirm the business has been making profits, and to understand the operating costs.

A successful franchise business starts with you; your motivation, passion and commitment. Being clear on what type of business you want to spend your time in is important Look for sales growth, year on year. Watch out if sales have fallen as it could be a danger signal. Calculate the gross profit margin. This is gross profit divided by sales. Compare the gross profit margin to previous years. It’s a good sign to see it increasing. Calculate the net profit margin. This is net profit divided by

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STUDIES OF SUCCESS Here are two different business models and approaches that have worked well for current franchisees, says Ian Krawitz from 10 Thousand Feet

Smartline Personal Mortgage Advisers One business to perform well in the ﬁnancial rewards category in the 10 Thousand Feet topfranchise.com.au Financial Awards was Smartline. The mortgage industry has a very attractive business model, which at present includes a recurring revenue model. This model works by a mortgage broker getting a commission payment upfront for arranging a home loan. Then for the life of the home loan the mortgage broker keeps on getting a small percentage of the loan. This is an attractive proposition for a franchisee as they keep on getting rewarded for their initial hard work and they can build it to the point where they are secure in the knowledge of the salary

72| FRANCHISING MAY/JUN 2011

they can take home every month. The other attractive element is that as a loan book is built up it becomes a saleable asset, making a return on investment a good proposition. Smartline also keeps its initial investment into the business low, enabling franchisees to get a good return on their capital.

Mister Minit Mister Minit was another star in the 10 Thousand Feet topfranchise.com.au Financial Awards. Mr Minit has a unique model which sees staff members turn into franchisees. In this transition franchisees just pay for stock and do not pay for any ﬁt out or licence fees. What is also unusual about Mister Minit’s model is that during the term of the agreement the franchisee does not build up an asset. At the end of

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the term of the franchise agreement, the agreement is either renewed or not. The franchisee doesn’t have the opportunity to sell the business. This model leads to a great focus on the here and now and making sure franchisees are ﬁnancially proﬁtable and able to take home a healthy salary throughout the course of their franchise agreement. Typically the transition from staff member to franchisee has resulted in a salary increase of two to three times depending on the shop and the balance between how many days a week the franchisee works and the number of staff the franchisee employs. This model results in great satisfaction when it comes to being able to generate a greater salary than could be achieved as an employee.

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sales. Net profit is what’s left after all the expenses have been paid. Compare the net profit margin to previous years to see how it is tracking. Again, it is a good sign to see this increasing. You should be looking for a net profit margin in excess of 10 percent. Calculate the current ratio: this is current assets divided by current liabilities. This is a measure of liquidity and the figures are found in the balance sheet. The target ratio here is 2:1

WHAT TO AVOID Businesses to avoid are those with too much hype and not enough profit, says Peter Knight. The reality of success is shown on the bottom line...with profits. If there are no real profits, then that is the reality. Look elsewhere. Use caution when assessing the figures if the business takes a lot of cash. Cross-check the stated figures with the tax return for the business.

Profit is what’s left after paying all the expenses, so it’s important to really understand the operating costs of the business Calculate return on investment. This is net profit divided by your initial investment in the franchise. This lets you compare your investment in this business against other investments, such as shares, term deposits or other ventures. Calculate your payback; this is the number of years it takes for earnings to pay back the original investment. The target range is three to five years. After doing this analysis you are in a better position to really understand the franchise’s financial performance. You can also compare it against other franchise or investment opportunities.

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TOP 5 FINANCIAL INDICATORS FOR FRANCHISE SUCCESS 1. 2. 3. 4. 5.

Sales growth on prior years Gross proﬁt margin Net proﬁt margin Current ratio Return on investment Source: Knight Partners

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Issues|Buying a distressed business

You’ve just spotted a great offer, a franchise business near your home that’s selling up at a price you think is a steal. The only hiccup is that it’s a distressed business. What should you do?

veryone likes a good deal but sometimes a bargain can turn out to be the opposite. Like the renovator’s delight advertised in the property section of the local paper, a distressed business can be hiding some fundamental ﬂaws. Of course there are plenty of genuine re-sales under distressed circumstances that can prove to be well-worth the investment. The message for the potential franchisee is, do the homework. When evaluating the purchase of a distressed business, including a franchised business, it’s important to do your due diligence and evaluate the signiﬁcant risks. 74| FRANCHISING MAY/JUN 2011

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The Franchise Council of Australia’s executive director Steve Wright stresses there is a greater risk in purchases of distressed businesses. “If this increased risk is commensurate with the reduced asking price, it may be an opportunity worth considering. There are cases of both failure and success in this category as in any category,” he says. “No business for sale comes with a guarantee of success. In fact any which does purport to have such a guarantee would need to be very cognisant of the Trade Practices requirements prohibiting false promises or deliberately misleading statements.

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Buying a distressed business|Issues

“In short, a distressed business could be a good buy. But anyone contemplating doing it should do extensive research to ensure the business can be resuscitated, that the new owners have what is necessary in terms of commitment and resources, and then have capital in reserve in case the revival takes longer than expected.” There’s no doubt that purchasing a distressed franchise business can be opportune due to the lower entry price, says Phil Blain, principal, franchise development, BDC. “Price should always be a reflection of value and preferably a justifiable multiple of EBITOW (earnings before interest, tax and owner’s wages). Be mindful however; vendors, distressed or otherwise, will most likely still want too much.” Bear in mind, he suggests, that potential shouldn’t really be translated into monetary value as this should be regarded as a reward to o the purchaser for the increased risk of taking on an underperforming business. However, with a lower price usually comes a higher risk. As Blain says, approach this proposition with caution. “Never buy a business with your heart – always use your head. Romantics rarely make good business people. Ask yourself why the vendor is disposing of the business; some reasons can be legitimate, but always ask the question ‘if the vendor still believes the business has potential, then why are they selling it?’” Dig deep to find out if the explanation you are given for the sale is the genuine reason the distressed business is on the market. “There are a number of legitimate causes: stress may mean family issues or even personality conflict between franchisor and franchisee, but be absolutely clear why the business is underperforming in your mind (not the salesman’s view) and know what to do to bring it up to a reasonable return on investment, how long that will take, and at what

cost. Then, double the costs you ﬁrst thought of, it always costs more than you anticipate. If it’s simply going to be too hard then, bargain or not, it may not be worth the journey,” says Blain.

Assessing the risk proﬁle of a distressed franchise Darryn McAuliffe, national manager, NAB Franchise Banking agrees that it is essential to understand why the target business is distressed and most importantly why will it be different this time for the potential franchisee. But the bank is not averse to providing funding, if appropriate, he says.

Ask yourself why the vendor is disposing of the business; some reasons can be legitimate, but always ask the question ‘if the vendor still believes the business has potential, then why are they selling it?’ “From a lender’s perspective, providing finance support to purchase a distressed business requires a more detailed and rigorous assessment of the proposed transaction. Nevertheless, for the right applicant and the right business these transactions can be considered if they meet the lending criteria.” So with this increased risk profile, when is a bank likely to be receptive to a finance approach? NAB will encourage any potential franchisee to ask

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Issues|Buying a distressed business

themselves the following questions when considering buying a distressed franchise: • Have you done your due diligence and a business plan? • Do you have experience in turning around similar situations or maybe even the same brand? • Will you have ongoing franchisor support? • Are you conﬁdent that you can comfortably meet interest and repay debt? • Do you have sufﬁcient capital, conservative gearing, contingent allowances for capital requirements and strong cash buffers to increase your chances of success?

Jane Lombard, Sydney franchisee, The Franchise Shop “It all depends on why the franchise is a distressed sale. If the franchisor is the issue then I would say pass on the option entirely. If the current franchisee is the issue then it is a matter of judgement as to whether what you bring to the table as the incoming franchisee is sufficiently better than what the outgoing franchisee bought. For example if shortage of capital was the issue and you have sufficient funds then go ahead (all other things being equal). Establish why it is distressed and honestly review it yourself to see if you can fix those issues. If so it may well be a bargain.” FranchisingMag-May2011.ai

3/30/2011

12:11:48 PM

If the increased risk is commensurate with the reduced asking price, it may be an opportunity worth considering “Generally speaking, the absence of any one of these factors should have you questioning whether the transaction is worth pursuing,” cautions McAuliffe.

Are you up to it? When assessing the lending potential for a distressed business the bank is on the alert for some key danger signs, says McAuliffe. These warning signs include inadequate due diligence where the potential franchisee has not identiﬁed key factors that led to the distressed state of the business or has not changed the strategy. Inadequate planning is another warning. “The lack of a meaningful and comprehensive business plan raises an immediate concern. ‘Business as usual’ can be interpreted as ‘we don’t have a plan’. Every

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Buying a distressed business|Issues

business should have a plan; a distressed business must,” insists McAuliffe. When potential franchisees have unrealistic expectations such as a premature return to profitable or cash positive operations, or unrealistic turnover targets, it sets off alarm bells for financial institutions. While a new owner may be predicting substantial changes to key drivers of the business from the beginning, they may also underestimate the extent of the detracting issues or the time required to change them, suggests McAuliffe. For example, excessive wages may have contributed to lower profitability but time may be needed to refresh the team. Another danger is franchisees who are undercapitalised. “High gearing levels and inadequate cash reserves can place a distraction that a recovering business can seldom afford and remains a key cause of business failure,” he says. The risks and consequences of a failed business are significant. And so the decision to invest in a distressed business should only be made after careful consideration that comes from detailed and structured analysis, says McAuliffe. “In these instances the full support and engagement of trusted professional advisors, specialist bankers and a proven operating model will be the key ingredients to not only future success but also protecting your precious capital.”

Blain suggests it is worth considering the worst possible outcome of your purchase before you sign the agreement. “Given the business is already distressed, what happens if you cannot lift it? Ensure you are not overly exposed and do not risk everything; if that brings you to walk away from the sale, so be it. “If you are sure after all your research and have no more questions, then your chances of capital gain should be dramatically increased by buying a rundown business; but don’t begin with any lingering doubts – too much is at stake,” says Blain.

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Issues|Franchise size

The franchising sector is jam-packed with successful systems of all sizes. So what is the appeal of a large franchise network? Chris Caldwell, general manager of operations at Bakers Delight shares his views

BIG

DIVIDENDS A

proven system and a network of more than 700 bakeries established over 31 years means size has played a vital role in Bakers Delight’s success. Establishing our position has been achieved through a proven business formula, combined with a unique product and service offering that continues to facilitate growth across Australia, New Zealand and Canada, serving 2,000,000 customers each week. With a large, established network comes a distinctive and strong brand – we’re all about real people baking real bread and delivering real delight. The brand has been built on this premise and is sustained today. A major beneﬁt that comes with size is a greater opportunity to share ideas; from conferences, marketing forums, baking competitions and territory-based meetings, franchisees can share their successes and talk

Scope of operational support is a key beneﬁt of being a larger, wellestablished franchise network through with like-minded business operath h challenges h ll ith lik i d db i tors. Franchisees also have the opportunity to benchmark business performance against their peers, which provides a strong source of motivation. Scope of operational support is also a key beneﬁt of being a larger, well-established franchise network. One-on-one operations support with an assigned area manager provides guidance to franchisees in operating a successful business. And being a part of a big franchise enables the franchisor to support its franchises in all 78| FRANCHISING MAY/JUN 2011

WWW.FRANCHISE.NET.AU

facets of operating a business including, marketing, information technology, ﬁnancial management, employee relations and training. Our group purchasing arrangement is a resource to assist in simplifying bakery operations, enabling franchisees to concentrate on operating their bakery. The team negotiates relevant supply agreements and works through distribution issues so as to maximise the network’s collective buying power. We also have an experienced property team that locates viable retail precincts and negotiates leases directly with landlords on behalf of the network. The size and the success of the network has also enabled Bakers Delight to establish procedures such as training and development programs, product recipes, occupational health and safety, food safety procedures and other invaluable resources tried, tested and constantly improved over years of operation. Prospective franchisees are then formally trained on all aspects of operating a business before purchasing a bakery. Of course a key advantage of a mature network is that existing franchises for sale have an established track record. For potential franchisees looking to buy into Bakers Delight, this is an invaluable beneﬁt. They are able to see instantly how the business is performing, giving a transparent viewpoint to make a decision. Speaking with other franchisees also offers an insider’s point of view and an idea of the potential of each bakery business. There is no doubt being big and having a track record established over more than three decades plays a huge part in not only Bakers Delight’s continued success but the opportunities offered to the network and the stability and risk mitigation for new franchisees.

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Issues|Trends

WHAT’S THE VALUE IN REFRESHING A

BRAND? T he Franchisor CEO Survey conducted by DC Strategy provided some signiﬁcant insight into how leading franchisors perceive the value of brand refreshment. Of those surveyed, approximately two thirds had undertaken a brand refreshment in the preceding four years. More than half anticipated doing so in the next three years. This suggests that on average, franchisors conduct a brand refresh at least every seven years. The question is, why? Subway in the UK undertook a rebranding exercise with one of its products, the Daily Special. The product had been available in the marketplace for some time, but only 22 percent of the population were aware of Subway and only 13 percent had visited an outlet. The business undertook a signiﬁcant rebranding exercise centred around the Daily Special. The product was rebranded to the Sub of the

Refreshing a brand or one of the brand elements doesn’t have to be on a network-wide basis either as US-based electronics retailer Best Buy will attest. This business refreshed its brand by targeting each of its stores directly at a particular customer segment. Best Buy changed the product range, atmosphere (via music) and salespeople to attract a certain customer segment. In just one store, the results were amazing: a 72 percent uplift in sales. If these examples aren’t enough to convince you that refreshing a brand is worthwhile, consider the fact that brand refreshment illustrates company development or growth, demonstrates investment in the future, increases brand appeal, draws attention

Day throughout a series of innovative campaigns. While Subway’s budget was consistently outspent by its major quick service restaurant rivals (KFC, Burger King and McDonald’s), the chain managed to produce some incredible results: • 9.8 percent uplift in annual sales • 10 percent increase in purchase intent • Recognition of the Sub of the Day at 54 percent What accounted for these increases? The repositioning of just one product in the Subway range was not accompanied by changes to the store environment, price of the offer, additional stores being established, a change in ingredients – it was simply that the product was repositioned and refreshed. WWW.FRANCHISE.NET.AU

Graphs courtesy of DC Strategy

Brand refreshment illustrates company development or growth, demonstrates investment in the future, increases brand appeal, draws attention to the company and re-invigorates the appeal of the offer

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Issues|Trends

to the company and re-invigorates the appeal of the offer. So, why should a franchisee be concerned about this? For one very good reason: the issue of brand management goes directly to the franchisee’s ability to generate increasing returns in their business. Customers are ﬁckle. You have to give them a reason to keep buying from you, a fact which many businesses simply overlook. The fact that customers continue

to purchase from a particular business doesn’t necessarily indicate loyalty, it may mean there is merely an absence of credible alternatives. Already faced with a huge range of issues to consider when selecting a franchise opportunity, the prudent franchisee will also consider the franchisor’s history in managing its brand, keeping it alive, continually innovating and driving business to the franchisee’s door.

A Collins Booksellers store

RETAIL REBRAND J

ohn and Gloria Hollingsworth have been in the book business for nearly 18 years, and as Book City franchisees were part of the group bought by Collins’ two years ago. The rebranding to the Collins name took place in early 2010. “One of the big advantages of branding was gathering a greater number of stores under one banner,” says Hollingsworth. Although a united group, the two book businesses were seen by publishers as separate for purchasing purposes. “You negotiate with a range of suppliers, and the terms depend on the size of the group. This gives us a lot more clout,” Hollingsworth explains. Once the new branding was completed, there was no doubt that the bookstore reaped some benefits, he says. “From our point of view, it probably translated into a slightly better gross profit margin. Better deals were able to be done on catalogues.” The refit of the store also generated awareness in the community, boosted by a marketing campaign funded by the franchisor. “We did receive some favourable comments. I felt the refit gave the shop a really good lift. And it gave Gloria and I motivation, we could see the benefits accruing. The impact of the Collins brand change has dissipated but to me it still retains oomph. “You have to keep changing, all the time. As soon as something is looking tired, do something about it. It has the effect of increasing sales.”

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Capital required - $220K - $410K Number of outlets - 13+ Opportunities available - nationally

Capital required - $170K Number of outlets - 50+ Opportunities exist - nationally

Capital required - $47K Number of vehicles - 50 Opportunities available - nationally

Capital required - $400 - $600K Number of outlets - 80+ Opportunities available - National/NZ

Capital Required - $300 - $400K Number of outlets - 21+ Opportunities available - nationally

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BI MO LE

PENI

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

B&S AR

Capital required - $39,990 +GST Number of outlets - 12 Opportunities available - nationally + NZ

Capital required - $150K - $350K Number of outlets - 650 worldwide Opportunities available - nationally

CONNECTING PEOPLE TO OPPORTUNITIES WWW.FRANCHISESELECTION.COM.AU

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

Capital required - $300 - $400K Number of outlets - 4 Opportunities available - nationally

Capital required - $350K - $400K Number of outlets - 80+ Opportunities available - national & international

Capital required - $295K - $310K Number of outlets - 37+ Opportunities available - NSW, SA & VIC

Capital Required - $45K - $225K Launching May 2011 Opportunities - nationally

Capital required - $150K Number of outlets - 3 Opportunities available - nationally

Capital required - $600K - $1m Number of outlets - 19 Opportunities available - nationally

Capital required - $250K - $400K Number of outlets - 7 Opportunities available - Sydney, Melbourne, Canberra, Newcastle

CHOOSE FROM AUSTRALIAS BEST SELECTION PHONE 1300 FRANCHISE (1300 372 624)

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Disclosure document|How to

WHY YOU NEED TO READ THE

DISCLOSURE DOCUMENT By Dr Michael Schaper, ACCC deputy chairman

f you’re looking at buying a franchise, the most important document you will receive from the franchisor is a disclosure document. This contains essential information about the business and you should read it carefully before making your decision. In short, a disclosure document is a written statement that provides you with key information about the nature of the franchise system, the operator of the system (the franchisor), and your commitments under the proposed franchise agreement. In Australia, all franchisors and franchisees are covered by the mandatory Franchising Code of Conduct. The code requires franchisors to provide potential franchisees with a disclosure document, a copy of the franchise agreement (in its ﬁnal form) and a copy of the Code itself at least 14 days before any non-refundable money changes hands or any agreement is signed. The disclosure document contains a range of information that is intended to help you make an informed decision, including contact details of current franchisees and some past franchisees, details of the franchisor’s

If the franchisor makes claims about how much you can earn, whether in writing or verbally, make sure these ﬁgures are achievable business experience, details of certain court actions against the franchisor or one of its directors, details of the amounts you’ll need to pay upon entering the system, as well as future ongoing or one-off payments to the franchisor or a third party. It will outline whether you could be required to make signiﬁcant capital expenditure, whether the WWW.FRANCHISE.NET.AU

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franchisor is able to unilaterally vary (make onesided changes to) the franchise agreement, indicate whether you will have an exclusive territory, highlight any restrictions on sourcing your goods or services and provide details of any marketing funds you may be required to contribute to. The document will explain whether you’ll be required to sign any other agreements (for example, a lease), whether the franchisor will impose any conﬁdentiality obligations on you and details of the arrangements that will apply at the end of the agreement. The disclosure document also makes reference to key provisions in the franchise agreement, so it’s a good idea to look at both documents together to get a better idea of what your rights and obligations will be as a franchisee.

Compare what the franchisor has told you so far (or the information in its brochures) with what the franchisees are telling you. If there are significant inconsistencies between the two, you should consider whether buying the franchise would be the right move.

Significant capital expenditure Most franchise agreements require the franchisee to make a significant upfront payment and then pay franchise and marketing fees on an ongoing basis. But you could be required to spend hundreds of thousands of dollars for a store re-fit (capital expenditure) when you least expect it. The disclosure document will tell you whether you could be faced with such a major capital outlay during the term of your agreement.

Unilateral variation Some franchise agreements give the franchisor the right to make certain changes to the agreement without the franchisee’s consent. The franchisor must disclose the circumstances in which it can make these so-called unilateral variations and some of the circumstances in which it has done so in the past. Don’t sign the agreement if you’re not happy with the franchisor making one-sided changes to it.

End-of-term arrangements

The disclosure document is the key to the franchise system

The key things to consider While it is important to familiarise yourself with the entire disclosure document, there are certain areas that you should pay extra attention to:

Details of past and current franchisees The franchisor must give you the contact details of existing franchisees and some of the franchisees that have left the system in recent years. This is a key piece of information for any would-be franchisee. Talk to as many franchisees as possible and ask them about their experience in the system. Are they earning what they expected? Have they had any issues with the franchisor, or has it been all smooth sailing? If they could go back in time, would they do anything differently? If so, why? And make sure you try to speak to any franchisees that have been terminated or not renewed by the franchisor. 88| FRANCHISING MAY/JUN 2011

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Most franchise agreements run for a five or 10 year term, and it’s important to understand what happens when that term comes to an end. The franchisor must disclose what will happen at the end of the agreement, including whether you will have an option to renew or extend the agreement, or enter into a new franchise agreement and whether you will have the right to sell the business (and if so, whether the franchisor will have the first right of refusal). Other disclosures include whether you will be entitled to an exit payment (and if so, how it will be calculated); the details of what will happen to any unsold stock, equipment and other assets that you purchased when you entered into the agreement; and whether the franchisor will consider any significant capital expenditure undertaken by you during the franchise agreement in determining the end-of-term arrangements.

Earnings information The franchisor is not required to provide you with any information about how much you can expect to earn in the franchise. But if it does choose to disclose potential earnings, the ﬁgures must be based on reasonable grounds. If the franchisor gives misleading earnings information to prospective franchisees, it could be breaching the Competition and Consumer Act. If the franchisor makes claims about how much you can earn, whether in writing or verbally, make sure these ﬁgures are achievable. If you’ll be earning

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Every day more and more people go into business for themselves. In addition to the energy and passion it takes to succeed, each of these new businesses will need to let the world know they exist, which explains why the sign business has grown into a multi billion dollar industry. 5 day operation - business trading hours No signage experience required Prime locations available Over 500 centres worldwide Business to Business

franchise opportunities available 1300-SIGNWAVE visit: www.signwave.com.au for further information or contact helen.spencer@signwave.com.au

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$100 per job and each job takes two hours, can you really earn $1000 per day? Your accountant should be able to assist you with this.

More information While the disclosure document is a valuable source of information, it’s worth arming yourself with as much additional information as possible. You’re

The disclosure document also makes reference to key provisions in the franchise agreement, so it’s a good idea to look at both documents together to get a better idea of what your rights and obligations will be as a franchisee probably already very familiar with the franchisor’s website, but it’s a good idea to search the internet for any other information about the franchise system and its directors. Also check the ACCC website (www.accc.gov.au) to see if we’ve taken any action against the franchisor.

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And keep in mind that the disclosure document you’ve been given could contain information that is inaccurate or incomplete. Try to verify the information that is most important to your decision.

Don’t do it alone You’ll be investing a significant amount of your money in the franchise, so be prepared to invest a little extra in professional advice from an accountant, lawyer and business adviser with franchising expertise. The network of Business Enterprise Centres throughout Australia (www.beca.org.au) can also give you some useful advice. Before you go any further, we suggest that you enrol in a franchise education course. The ACCC has funded a free, online course for prospective franchisees. The five-module course is administered by Griffith University and gives you a good overview of every aspect of franchising, including a detailed discussion about the disclosure document. More than 1300 people have signed up to the course since its release in July last year. The ACCC promotes compliance with the Franchising Code and the Competition and Consumer Act by informing franchisees, franchisors and prospective franchisees of their rights and obligations under the Code and the Act, and enforcing them where necessary.

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Operations Manual|How to

MANUAL

Getting your hands on a great manual is key in franchising because operations manuals are the backbone of a great franchise system. Rob Camm points out how to identify an Ops Manual that will support your business success

LABOUR I t is easy to get a little overwhelmed with all the information you will read, review and discuss when searching for the ideal franchise system. The hours spent doing due diligence, research and meetings with the banks, accountants, lawyers and your franchisor will quickly add up. It is essential to keep some

time aside to review one of the most important documents you will receive from the franchisor when you get started in their system – the Operations Manual (or Ops Manual as they are more commonly referred to). Under law, franchisors are obligated to provide you with an Ops Manual when you commence as a franchisee. Most successful franchise systems provide their franchisees with a well structured, targeted, relevant and up-to-date Ops Manual. It is this ‘mother of all how-to guides’ which should set out all you need to know about the company, the products, services and how to successfully operate your franchise business. Well... that is the intention! In essence, the Ops Manual is the font of all knowledge for the business you are about to invest in – in effect, it’s what you are really buying! It should house all the intellectual property for the franchise system (what it is, how it is to be used), clearly set out what >> continues on page 94

Make sure the franchisor has made the Ops Manual as relevant and accessible as possible

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ADVERTORIAL

MAKING MACHINES WORK FOR YOU By owning your own vending machine business you can take advantage of the latest in technology and innovation. That’s exactly what Michael did. ichael first discovered RP Vending in March 2007 when he attended the Franchise and Business Opportunity Expo in Darling Harbour. Michael claims he was attracted to the fact he didn’t have to pay franchise fees and the ability to choose his own working hours that suited him. Michael runs his business FIVESTAR Vending with 11 large machines and one small machine which is designed to support one of the larger machines. Most of these machines are located in corporate and service-based sites; these are Michael’s favourite sites as they have good loading dock access with friendly staff. What Michael likes the most about this business is the flexible working hours. What he likes the least, (which I guess would be just the same as in any other business) is dealing with difficult customers and demanding sites. Michael has grown his business with RP Vending because “I know I’m partnered with an industry leader who can take my

M “I know I’m partnered with an industry leader who can take my business into the future along with them”

www.rpvending.com.au

business into the future along with them”. Michael has worked hard to improve his business, tweaking his business to get good locations that are close together and constantly improving

his productivity as he reduces the time it takes to service his machines. Overall Michael is very happy with RP Vending and his business FIVESTAR Vending, he has become confident in his business and he loves having complete control over his income generating assets.

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operational excellence means, deﬁne the expectations of you as a franchisee and how these will be executed and measured in the business. It is the Ops Manual which gathers all this together in one place, and sets out the working relationship between you and the franchisor. Without a good Ops Manual, you’ll be lost in the woods! Too often, franchisors treat their Ops Manual like a red-headed stepchild. Ops Manuals can be time consuming and costly to produce, and an ongoing challenge in time and effort to keep them relevant to the needs of the franchisees and the business. Even though they are the backbone of the business system, they are often viewed as a chore and come off second-best to investments in other areas of the business, such as branding, marketing, product development, and so on. One of the early warning signs that the Ops Manual is not holding its rightful place in the business is if you hear comments like “Oh we don’t do it that way anymore. Ignore that part” or “that hasn’t been updated in a while”. What does that tell you about their system? Red ﬂag! Sadly, not all Ops Manuals are created equally. Some are relevant and useful and therefore regularly used by franchisees in the operation and growth of their business. Others are looked at once during initial training and then gather dust on the shelf. How do

A great Ops Manual will comprehensively document everything you need to know to run your business to franchisor standard you know if the Ops Manual you are reviewing is a great one and will set you up for success in your new franchise business? Here are some things to look for.

Comprehensive contents When reviewing an Ops Manual for the first time, the best place to start is the beginning – the contents page. This page sets out everything that is contained within the manual and will give you a good snapshot of the content the franchisor has developed and documented for their franchisees to use. Take a few minutes to note the range of chapters, topics or sections included. A great Ops Manual will comprehensively document everything you need to know to run your business to franchisor standard and will include sections on: • The business concept, history, culture, vision, mission, values, support staff and learning programs provided • Sales processes, national and local area marketing programs, trademark usage, customer loyalty, public relations and social media strategies • Product and service information, specifications, ordering, inventory management, repairs and replacements • Business planning, budgets, forecasts and cash flow • Business administration, legal and regulatory requirements, risk management, quality assurance, reporting, uniform and dress policies • Safety and security, OHS, loss prevention and disaster recovery 94| FRANCHISING MAY/JUN 2011

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An online manual means the franchisee can refer to it whenever they want

• • •

Customer service, conduct, handling compliments, complaints and concerns Team training and development, communication, management, recognition and performance review Relationship with the franchisor, meetings, conference, performance requirements, non-alignment, expansion, renewal and support expectations

Well structured sections Now take a look deeper into the Ops Manual and read through a few of the sections. Ideally each section will clearly set out what the topic is about, what is expected of you, why it is important to your business, how to complete it, how you will be measured on it, how it drives your business success and where to ﬁnd more information, training or support on the topic. As you read through the sections, see how well the information is set out and check for evidence of the following: • An overview of the standard, capturing the essence of the content in a few short sentences. • Section structure: overview, rights and obligations, procedure, links to the system’s franchise agreement, tools to support the theory [checklists, ﬂowcharts of steps to follow,

Sadly, not all Ops Manuals are created equally •

•

templates], learning links connecting the theory to training programs provided by the franchisor. Visually stimulating content, supporting your understanding of the information presented on the page. Basic learning principles dictate that the content should be presented in a multi-sensory manner, with colour, photos, graphics, embedded video links, meaningful icons, branding and more. A list of all the support tools which relate to this topic, including supporting documents, forms, templates, websites and other resources you can access, giving greater >> continues on page 96 WWW.FRANCHISE.NET.AU

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depth and meaning to your understanding of the content. • Reference to where additional learning and development can take place in relation to this topic. This may be additional online training ng programs, workshops or seminars provided ed by the franchisor to support this topic. • The language, look and culture of the franchise is reﬂected throughout the Ops Manual. Be wary of Ops Manuals where the contentt

is presented as a mish-mash of points, or worse – pages and pages of endless paragraphs of text. Time and time again readers of Ops Manuals request that information be in digestible chunks, in point form and shortlists, accompanied with current photos and >> continues on page 99

CASE STUDY: LUXOTTICA

uxottica is the owner of OPSM, Budget Eyewear, Laubman & Pank, Sunglass Hut and Bright Eyes brands in Australasia. With hundreds of retail stores, across a variety of brands, Luxottica’s challenge was to develop an Ops Manual which meets the needs of all its franchisees. Peter Baily, director of franchising at Luxottica, spearheaded the drive for a new Ops Manual in early 2010. He knew Luxottica needed to have the Ops Manual content updated, have greater integration of policy, processes and tools to execute these, all while

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being totally accessible to franchisees and managers through an online portal. A consulting ﬁrm helped develop the new brandspeciﬁc Ops Manuals, and after many months of development, design and drafting, Luxottica had a robust, online structured Ops Manual. The manual has now become one of the key selling points for prospective franchisees, as it showcases their entire business systems, the expectations of their franchisors and what operational excellence means to them. And they have seen greater uniformity

in operations across their stores and greater clarity across their system as their business system has become more deﬁned and robust, resulting in a greater reﬂection of best practice in operations. Baily goes on to say, “In my 17 plus years of franchising, I’ve seen time and time again that great

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franchise systems have great Ops Manuals. They invest the resources into getting this critical document relevant and reﬂective of their system, and work had to keep it that way. We wouldn’t be experiencing the success we currently have I believe, without the new Ops Manual to support the growth of our network.”

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images to match the content, displayed in a checklist or ﬂowchart and referenced with links to other sections or online resources.

Easily accessible and up to date The biggest reason why many Ops Manuals are rarely used by franchisees is because the manual doesn’t keep pace with developments and innovations within the business. They get stale very quickly. This is also a major reason for non-alignment in a system when franchisees start doing things their way. Having a manual in a printed form, such as a huge binder weighing half a ton, becomes a constant challenge in maintenance and relevance terms. How can you be sure you will receive the latest updates, print them and correctly replace the old sections? While you may commit to updating your new Ops Manual on a regular basis, the reality is this doesn’t happen in the long term, with updated sections sent from franchisors lost in unread emails and ﬁles, never to be printed or actioned. These days, great Ops Manuals get off the printed page and come to life online. No doubt you’ll be using a computer in your business somehow and be connected to the internet – it’s a natural extension to use this common business tool to access

To see how fresh and current the Ops Manual is, check to see what review process and timetable the franchisor has in place your Ops Manual when it suits you. With information at your fingertips online, you can read, review, print too if you wish – all without lots of binders gathering dust on your bookshelf. If your franchisor provides the Ops Manual online, ask to have a look at how it is set up, laid out, and how accessible it is. See if they have linked the support tools, forms, letters, checklists, to each online section; this will make it easier to find information quickly when you are up and running in your new business. Finally, to see how fresh and current the Ops Manual is, you should check to see what review process and timetable the franchisor has in place. Hopefully the Ops Manual is completely reviewed and updated at least once a year and involves the input of many stakeholders from the system. Check to make sure. As you shop around for the ideal franchise business to suit your needs, remember the importance of checking out their Ops Manual. How your franchisor positions and maintains their Ops Manual will tell you a lot about the franchise system you are considering joining. The Ops Manual should be a franchisee’s best friend and a targeted business tool that supports you running a profitable and aligned business. Therefore it’s worth investing the time to make sure it’s a great one. Rob Camm is a learning strategist with consulting group Go Global, responsible for developing and delivering robust learning programs and support tools that enhance clients’ strategic plans: www.goglobalinnovation.com

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images to match the content, displayed in a checklist or ﬂowchart and referenced with links to other sections or online resources.

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How to|Network

Attending a franchise network’s convention can be an easy way to share ideas, challenges and successes with each other, and catch up on developments within your brand

Photography courtesy of Danks

FOLLOWING

CONVENTION E

very two years the Danks Group of independent retailers (Home Timber & Hardware, Thriftylink Hardware and Plants Plus) gets together with support team members, head ofﬁce staff and suppliers for a three-day extravaganza of information sharing, product development, motivational speakers, networking and family-ﬁlled fun. This year the conference and trade exhibition was held on the Gold Coast, allowing the delegates the chance to enjoy all that Movie World has to offer after dark, in an exclusive Danks dinner and entertainment event. With children packed off to the popular kids’ club during the day, the retailers and their partners were free to make the most of the knowledge base gathered together, take stock of their business, and recharge their batteries ready for another

two years of trading. A convention is also an opportunity for the franchisor to outline plans and ease any concerns within the group. This conference was entitled: Stronger and Better Together. As the Danks group recently integrated the three brands in to the Woolworths group, retailers have some concerns about their long-term viability as independent business owners and the competition from Woolworths’ owned Bunnings and the Mitre 10 chain. It was an issue managing director Graeme Danks was keen to address. While joining a highly competitive group with a range of retail brands catering to a variety of customer levels has its challenges, “It’s better to be in the tent than outside,” Danks told the delegates at the convention. Why? Well, the move to Woolworths brings greater support, research and development, and access to best practice. Danks explained how the

diversity of the Woolworths’ group is not just geared to price matching, with small liquor networks, offering expert knowledge, continuing to pull in substantial dollars despite the apparent dominance of the costconscious Dan Murphy chain. Independent retailer Milton Vadoulis found the words from the chairman useful in describing the ongoing transition to the Woolworths fold. “Graeme’s explanation of liquor stores was really useful. It’s good that we keep getting drip fed information so we feel more comfortable with it,” he said. The message throughout the convention was that retailers within the Danks group have industry expertise and should trade on their offer of specialist advice and a customer-focused business, rather than trying to compete on price. “Give your customer reasons to justify the purchase,” Graeme Danks told the delegates. And >> continues on page 103

1.The Danks’ convention theme 2. Keynote speaker David Koch 3. From left, MD Graeme Danks, retailer Milton Vadoulis, and general manager, operations, Con Dekazos 4-6. All the fun of the fair

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be sure to communicate what your store is all about, he added. His message was that maintaining a successful business isn’t just achieved by what you do in the store – effective broadcasting of the business expertise, its community involvement and long-term links to the neighbourhood ensure the customers see the outlet as more than just a place to buy product. High proﬁle keynote speaker David Koch told retailers the biggest threat to their business was themselves. He suggested the value in a conference was

suppliers’ trade exhibition is an important part of the membership, he said. Getting to share business concerns and gain inspiration from fellow retailers is at the core of the conference. “Ideas, problem solving, networking are the best. People really need to take the time out and you just need to break the ice. People are quite open to share their successes. You get really hands-on advice, and it builds strength. The Plants Plus guys will walk around the trade exhibition together and share what [products] worked for them and what didn’t.”

Ideas, problem solving, networking are the best ... people are quite open to share their successes in delegates taking a few days out of a busy routine to pick up ideas from fellow retailers and take them back to their own business.

What did the franchisees think? Milton Vadoulis runs a Plants Plus business, Vadoulis Garden Centre. The centre has been in business for 50 years, in the gateway to the Barossa Valley. Plants, gifts and courtyard furniture, a cafe – these are the staples of the business. “We’ve been in Plants Plus since the early days, about 1995,” Vadoulis said. Attending the bi-annual conference and

Nick Clark is the owner of Maclean Home Timber & Hardware and has been with the group eight years. “The conference is about community and families, and there’s a fantastic kids program,” he said. “We’ve been to every conference.” Clark echoes Vasoulis’ belief that a convention is as much about networking as the speakers, and for busy retailers it’s an opportunity to catch up with familiar faces and share stories. “You can pick up best practice, and learn different business techniques. Most of these events are about rejuvenation and how to motivate yourself and staff.”

Enjoying Movie World

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How to|Pick trends

A SLICE OF

Every year the global franchising community heads to the US for a gathering of thousands, all devoted to improving their franchise performance. And franchisees are among the delegates at the International Franchise Association’s convention

AMERICAN PIE W

they want to gain a global perspective on the industry. One of this year’s Franchise Council of Australia (FCA) delegates, Fadi Mikhael, a Looksmart Alterations franchisee at Garden City, Booroogan, Western Australia, explains more. “I found the topics of my interest at the IFA Convention very advanced. The size of the franchise systems in the US (companies that I’ve never heard of) is massive. I was very happy to have attended.” For Jerry Halaby, a Sutherland, Sydney franchisee with Smart Saver, attending the US conven-

tions is inspiring, not least because of the calibre of speakers. “Last year, one workshop with the exmarketing manager from McDonalds talking about neighbourhood marketing, made it all worthwhile. “No matter how big or proactive your franchise is across the board, as a franchisee you are solely responsible, the onus is on you to do the local marketing.” Tapping into the experience of both franchisors and franchisees within a market the size and scope of the US gives Australian franchisees another perspective on challenges they may face at home.

Photography courtesy of IFA

Social media trends were the talk of the convention, where keynote speakers included former Governor Mitt Romney (right)

hy go to all the expense, time and effort of travelling not just interstate but internationally to attend a conference? As the high number of participants in the Australian delegation to the International Franchise Association’s annual convention testiﬁes, there are plenty of reasons; in some cases franchisors are looking to see how they can dip their toes into the American market, consultants attend to pick up keen franchisors wanting to try out the Australian arena, and franchisees go because

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How to|Pick trends

“Americans I find very open about marketing and ideas. I visit the expo too and see new ways of looking at something,” Halaby says. Halaby ensures he attends workshops and as he says, “it was obvious this year that social media is an enormous issue”. “You go there for the trends, and it was a little bit different five or 10 years ago; we were about two years behind, but not now.” A trend in the US will now show up in the Australian market just six to 12 months later, he believes. Back in Sydney, Halaby has acted on the learning he gained at the convention. “I’m really out to put in a social media strategy. Not many local businesses have a very active social media presence and I want to be the first cab off the rank. I want to do it first and do it right, and get the upper hand. This is opening up another avenue for marketing, one that is much more subtle.”

There’s no doubt a trip to the IFA convention is a major investment. But it’s one that pays off, believes Halaby. “I highly recommend it. It’s a fairly substantial investment, but you’ll get it back. It shows a level of commitment to your market,” he says. Mikhael stresses that franchisees need not travel so far to gain the insights of fellow franchisees and franchisors. “I would deﬁnitely encourage franchisees to attend the FCA’s National Conference on a regular basis,” he says. “The investment is small in comparison with the amount of education they would gain in a varied array of topics. I would say, single-unit franchisees should attend the annual FCA conference when it is in their city and multi-unit franchisees should try to attend every year.” * See p117 for the FCA’s view on Australia’s role on the global stage.

Incoming IFA chairman and renowned McDonald’s multi-unit franchisee Jack Earle shared with the Australian delegation how the fast food giant has developed its system to include franchisee involvement at crucial stages. As a multiunit franchisee Earle has 50 managers organising 350 staff who serve almost three million customers a year. There are about 13,500 McDonald’s units in the US, with 17 percent company-owned and more than 2400 franchisees, divided across three divisions and 21 regions. The system moved from one with an advisory council to a model with a leaders’ council, with one representative from each region, four diversity groups, a supply forum and advertising group. “So it means operator input at an early stage,” says Earle. “It has really worked for us. We get more buy-in upfront before taking things to the ﬁeld.” Franchisees can then have input at a local level. For instance, franchisees make decisions about where advertising dollars are being spent. Fellow franchisee and an iconic ﬁgure among the American franchising community, Lawrence ‘Doc’ Cohen, also took time to share his views on the industry with the Franchise Council of Australia’s delegation. Cohen has been a franchisee

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Photography courtesy of IFA

A CO-OPERATIVE APPROACH

IFA chairman and McDonald’s multi-unit franchisee Jack Earle

since 1978 and been instrumental in shaping the Great American Cookies system to embrace the spirit of co-operation. Building a partnership built on a sense of being in the business together helped achieve increased sales, reduced costs, store growth and improved locations. Further involvement in the IFA cemented the strategy of franchisor and franchisees working together. As a result franchisee satisfaction has risen by nine percent, with 93 percent enjoying operating their businesses and 79 percent happy to recommend the system. “At Great American Cookies, franchisees are involved in the decision-making process,” Cohen says.

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• Innovative product development • Effective national marketing strategies • Dedicated ﬁeld support and training

If your dream is to run a ﬂourishing business, then a Snooze franchise could be for you. Snooze has been operating successfully since 1974, and with the experience we’ve gained we’re able to provide all of our franchisees with a solid platform to start a Snooze business, and the proper infrastructure and ongoing operational support to help maximise their store’s potential and growth.

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MAKE THE MOVE TOWARDS

SWEET SUCCESS!

Gelatissimo is now recruiting Franchisees who have a passion for all things Italian! Be part of Australiaâ&#x20AC;&#x2122;s first and largest gelato franchise. Join a super successful team with a super dynamic brand and enjoy the independence of operating your own business while being part of a strong and supportive system, based on 16 years of product development and customer satisfaction. A visit to a Gelatissimo store offers a true Italian treat for everyone. Gelato is our principle product with delicious new items constantly being added to our product range, such as Italian coffee, traditional biscotti and snacks. We are looking to recruit franchisees with energy and ideas who share our enthusiasm for delivering great products and excellent customer service. If you are looking to change your current lifestyle and future with potentially high financial and flexible lifestyle rewards we look forward to hearing from you.

For enquiries call (02) 8845 0100 or email judith@gelatissimo.com.au

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Now with stores in Australia, Singapore, Indonesia, Malaysia, Philippines and Italy GELATISSIMO IS PROUDLY AUSTRALIAN OWNED AND OPERATED

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Selling the franchise|Advice

What happens if…

I CANNOT SELL MY FRANCHISE? There is no point investing in a franchise without a clear exit plan because at some point you will need to sell your business, Alan Branch writes

n the perfect scenario, your franchise will have given you a great return on your investment while you’ve been working in it, and you are able to sell it on for a proﬁt. But what happens if a sale is not forthcoming? Your franchise business may be hard to sell for a wide range of reasons, some of these personal, some outside your control. For instance you may need to make a quick sale because your health is poor, there might be a need to relocate but you do not have the funds, you may want to move before your rent increases under a new lease term or you may be nearing retirement. Of course it may be that your business is unprofitable, or that your franchisor is causing problems or that the entire system is under-performing. This may arise due to events outside your control but

If you have done all you can to sell your business, it may be that the franchisor will step up to be a buyer of last resort look carefully at whether the cause arises from over promises made to you by the franchisor or its recruitment ofﬁcer when you joined, or from the lessor of your premises. Misrepresentations that induce you to enter what turns out to be a bad business and conduct during the franchise which is below the standards required by the courts can mean you can seek compensation or negotiate a better exit deal with your franchisor. Common issues are overstated turnover WWW.FRANCHISE.NET.AU

or customer numbers, lack of support and training, the franchisor over-charging for supplies a franchisee must buy and franchisor failure to market test new products and services. If you feel any of the above scenarios apply, be sure to seek professional advice before making allegations.

The franchisor’s role The sales process will depend on your reasons for selling and how much time you can take. This means early planning is essential; if you end up being a desperate seller, the price you achieve will be low. On some occasions it is hard to sell due to lack of co-operation or even sabotage from the franchisor. The Franchising Code of Conduct, clause 20 sets out that the franchisor can refuse to consent to your purchaser. However it allows for you to demand answers in writing as to why, and to challenge those answers. If the franchisor fails to respond to your written request within 42 days, the Code allows for your sale to take place. If you have done all you can to sell your business, it may be that the franchisor will step up to be a buyer of last resort. Remember the franchisor may still charge fees for this, even though you are selling back to the system.

The sales process During this process take time to see if you need to use a business broker or lawyer to assist you and your accountant and whether you need your bank’s approval for the release of bank security. You must also make sure all guarantees you have signed can be discharged now or on agreed terms. When approaching the franchisor be aware you can ask for either a novation or assignment of the MAY/JUN 2011 FRANCHISING | 109

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Advice|Selling the franchise

franchise under clause 20(1) of the Code. The legal consequences can vary significantly. To be sale ready, early preparation is essential as there are a multitude of things that can hold up the process. Your franchise agreement will outline what information the franchisor requires, what rights the franchisor has to buy the business as a first right of refusal and any fees you pay. If you know that the franchisor is buying back franchises then get in early: this will often clear the way to be able to sell to the franchisor or to sell to a purchaser with the first right of refusal waived to allow a quicker sale. Read clause 20 of the Code as it sets out the rights of the franchisor to refuse to accept your sale.

Be prepared Unforeseen circumstances can throw the best laid plans into disorder, but there are ways to make the most of a less-thanperfect situation. Start with an exit plan, read the sales clauses in your franchise agreement, get franchisor support before you sell, have ﬁnancials ready to show a buyer, secure the support of key staff the purchaser will need and sell at the right time if this is a seasonal business.

To be sale ready, early preparation is essential as there are a multitude of things that can hold up the process While you are a franchisee you need to set a business plan, meet performance criteria and KPIs and although these may seem onerous at the time they can maintain proﬁtability and avoid a forced sale or the appointment of an administrator. A distressed business sale means losses to you, harmed credit rating and a call on personal guarantees from the franchisor, lessor, banks and suppliers. Understand and implement what makes your business viable and maintain that to maximise your sale price when you eventually decide to put it on the market. Alan Branch is franchise team leader of Donaldson Walsh Lawyers

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Advice LEGIT | LEGALESE MADE EASY

Do you know your limits?

Y RAYNIA THEODORE Raynia Theodore, principal, and Nick Rimington, lawyer, of Mason Sier Turnbull

our pen is poised to sign the franchise agreement but stop! Have you checked the restraint of trade clauses in the franchise agreement? These generally seek to prevent the franchisee from either engaging in a competing business with, or soliciting customers or employees of, the franchise system. Such restraints are usually limited to a geographical area and remain for the lifetime of the agreement, and for a set time after its expiry. However these restraints of trade are often unenforceable unless it can be shown that the clause is necessary to protect the franchisor’s legitimate business interests, after taking into account the competing interests of the franchisor, the franchisee’s right to earn an income and the general public’s interest in healthy competition in the market. Interestingly, in assessing the franchisor’s business interests, the courts tend to look at the circumstances at the time the franchise agreement was entered into, rather than the circumstances existing when the restraint is sought to be enforced. Traditionally franchisors have greater success when it comes to protecting the signiﬁcant goodwill inherent in most franchise systems. Franchise agreements often contain restraints that are limited in scope, which the courts look upon favourably. But recent court decisions have cast doubt over the general principles established in previous cases. BB Australia Pty Ltd (Blockbuster) v Karioi Pty Ltd This NSW Court of Appeal case involved an action by Blockbuster to enforce a restraint of trade clause in its franchise agreement against a former franchisee, Karioi.

Restraints of trade are often unenforceable unless it can be shown that the clause is necessary to protect the franchise’s legitimate business interests In 1998, Karioi converted two of its privatelyowned video stores to Blockbuster franchises, and signed franchise agreements (each for a term of 10 years). When the agreements expired, Karioi debranded the stores and continued to operate a video rental business from the same locations. The restraint clause in each franchise agreement purported to restrict Karioi from operating a video WWW.FRANCHISE.NET.AU

rental business within 30km of the store, for two years following the expiry or termination of the franchise agreement. Each franchise agreement also included various clauses compelling the franchisee to destroy or return any of Blockbuster’s confidential information or intellectual property at the end of that agreement, which Karioi had done. The court ruled that the restraint was unenforceable because other clauses in the franchise agreement afforded sufficient protection to Blockbuster and the protection of confidential information and intellectual property could not be used to justify a restraint clause as well. The court also found that due to the magnitude of the brand and the significant number of Blockbuster stores, the goodwill in the brand was not specifically tied to any particular premises. Given that the franchisee had operated a video rental business from the premises prior to becoming a franchisee, the court found that Blockbuster’s goodwill in the site was not sufficient to substantiate the restraint. This decision supports the position taken by the court in the earlier case of EzyDVD v Lahrs Investments, which was decided on very similar grounds.

Key consequences The Blockbuster case means that franchisors and their legal advisors must take extra care when drafting restraint of trade clauses in their franchise agreement to ensure they are reasonably based. The decision also indicates that larger franchise chains may have more difﬁculty than smaller chains in enforcing their restraints of trade, especially where the franchisee operated a similar business from the premises prior to joining the franchise system. It is wise to check with an expert in franchising law to determine whether the restraint of trade clause in any franchise agreement you sign is enforceable. This may have an impact on what you decide to do with your business when it’s time to move on from your franchise. MAY/JUN 2011 FRANCHISING | 113

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Opinion THE SKETCH | TRENDS AND DEVELOPMENTS

How technology is changing franchising

ANDREW TERRY Professor of Business Regulation, University of Sydney Business School and Special Counsel to DC Lawyers

hose who know me may be surprised that I have chosen to write on the theme of technology for this column. Although having little in common with George Bush Snr I do share his lament that “technology is not what you may call my strong point…all I know about it wouldn’t cover a silicon chip.” The 41st president and I also have something else in common: our relative ignorance on a subject is no reason for not expounding a view on it. Technology has, of course, changed the world. And frighteningly quickly. The integrated circuit, the microchip, which led to the explosion in the use of computers, was not developed until the 1960s. The floppy disk – found today only in museums – didn’t appear until the 1970s and it was not until 1975 that the first portable computer (if this description is indeed appropriate for a computer weighing about 25 kilos and with only 64KB of RAM) was available. Microsoft wasn’t developed until 1981. The internet has only just celebrated its 20th anniversary and Google its 10th. Twitter is less than five years old. In the context of this massively rapid development of technology , the bold statement of Thomas J Watson, the founder of IBM, who died in 1956, that “there is a world market for about five computers” does not seem quite so naïve. Business today does not have to be at a very sophisticated level before technology becomes an inevitable, integral and entrenched part of operational and management systems. The stallholder at the weekend market may have no great need for

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sophisticated technology but, for most business operations, technology quickly becomes inevitable and essential. Rapid technological advances drive change to business models. Intranets, E-business, Eprocurement, social media, microblogging, Facebook and Twitter provide new and greater interconnectivity. Franchising is not immune to this reality and its pervasive inﬂuence on society. Technology has changed franchising, and will continue to change franchising, at a rapid rate. Franchising has become increasingly inﬂuential because it harnesses in a convenient package the drivers of contemporary business: brands, systems, training, ongoing support, management expertise, economies of scale, networking opportunities and technology. While all are critical factors, the

Franchising provides a very efficient method of providing useful technology to the end user latter is a more recent addition to the list. Access to appropriate and proven technology is an increasingly influential factor in a prospective franchisee’s assessment of a franchise opportunity and indeed in the earlier decision by the aspiring entrepreneur whether to acquire , or start, an independent standalone business or to become a franchisee. The inevitability of the necessity for specialised and, increasingly, proprietary technology is one of franchising’s strongest selling points. George Bush Snr and I are not alone in our realisation that the more technology does for us, the more daunting it becomes. These advances are difficult for those without training in technology to understand and, more importantly, to implement. That a franchise system has state of the art technology and well-developed training and manuals for its use is increasingly attractive to the prospective franchisee. While the cost may be prohibitive for an independent start-up business, franchising allows the franchisor to amortise the cost over a number of outlets. Franchising provides a very efficient method of providing useful technology to the end user. For those, like the 41st president and me, who recognise our limitations, technology will be a critical factor in choosing the franchise option over the independent business option and indeed for selecting a particular franchise system.

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Opinion ASSOCIATION | FRANCHISE COUNCIL OF AUSTRALIA

STEVE WRIGHT Executive director Franchise Council of Australian

Aussies shine on global stage

he editor of this magazine, Sarah Stowe, is probably too polite to say it but she was part of a collective ovation at the recent International Franchising Association (IFA) annual conference. Sarah was one of 50 Aussies directly involved in franchising who made the trek to the Nevada desert to see what they could learn at the world’s biggest franchising convention, held this year in Las Vegas.

We have successful Aussie brands looking to expand here and overseas ... we have overseas operators noticing how vibrant the Australian market is The 50-odd Aussies (and let’s face it, some of us are considered a little odd to Americans) did not make the journey to get recognition – but that is exactly what they got. WWW.FRANCHISE.NET.AU

It was acknowledgement not for individual achievement, but for what the Australian franchising sector has been achieving in economic times which are extremely difficult in many parts of the world, including the US. Franchising is a relatively young, definitely dynamic, and rapidly growing part of the global business community. What the IFA audience acknowledged, in front of the opening plenary session attended by 2500 people, was that Australia has been at the forefront of this growth, even during the global financial crisis. It is something to be proud of, and a factor which we can be optimistic about for the future. Australians are now taking their businesses to the world… and, because of our recent success compared with other countries; the world is taking a closer look at Australia. This means it is a great time to get into franchising. Not only do we have successful Aussie brands looking to expand here and overseas, but we have overseas operators noticing how vibrant the Australian market is compared with their own, and as a result, they are taking a much MAY/JUN 2011 FRANCHISING | 117

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ASSOCIATION | FRANCHISE COUNCIL OF AUSTRALIA

keener interest in the prospects of rolling out their concepts here. That simply means greater prospects and more choice for potential franchisees in Australia. At a time when global economic conditions can test the mettle of any potential business investor, it is good to know that successful franchise businesses are pressing forward with conﬁdence – and with results to back that conﬁdence. In franchising, Aussies are undoubtedly at the cutting edge globally. We may not have the population of the Americans but we do have the know-

With our established leading brands continuing to do well ... and with a vibrant group of young fresh and dynamic brands emerging to join them on the higher platform, there is good reason for optimism for future growth how and the essential entrepreneurial spirit, backed up by a straight-forward approach to business and a genuine work ethic. In the US, the franchise sector was static in 2010; for the ﬁrst time in many, many years there had been no aggregate growth. And this followed the year before (2009), in which there was only 1.5 percent growth, though this was a very good result compared with most other industries in the US, which actually went backwards.

Australian franchising is punching above its weight

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The story was similar in the UK and most other European nations. In Australia, franchising had a strong year in 2009, and then tapered off a little last year as we saw economic carnage in the northern hemisphere. Confidence is high that the historical average of seven to eight percent annual growth will again be achieved in 2011. This is excellent news for the Australian economy, which seems to have developed a two-speed character: fast for mining, slow for the rest. Franchising has always been the turbo on the small business engine of the economy, consistently outperforming the national rate of economic growth. According to a PwC study undertaken late last year in conjunction with the Franchise Council of Australia, the top 200 franchise brands in Australia are expecting double-digit growth in 2011. If they are right (and they were in a similar survey in 2009), then the sector is in for a solid year. Of course, it will not be a uniform result. Others may find the going more difficult, especially if there are industry structural issues, such as in book retailing, where Borders and Angus & Roberston have run into trouble with internet competition and import prohibitions. If we can take any sort of lead from the US and UK, then there is further cause for optimism. Having been flat in 2010, the US franchising sector is anticipating growth of 2.5 percent this year while in the UK the depressed conditions of 2009/10 appear to be lifting and 2011 is slated for sector growth. To give you an example of size of market, franchise owners in the US are expected to create 194,000 jobs in 2011. That is of a total of 7.8 million franchise business employees. With an Australian national population the size of Los Angeles and its surrounding counties, we can only dream of such numbers. However, pound for pound, we are definitely punching above our weight. Australian and Kiwi franchising interests form a greater proportion of the overall domestic business market than in any other country in the world. With our established leading brands continuing to do well, with an increasing appetite for growth and partnerships that will take them into new businesses and territories, and with a vibrant group of young fresh and dynamic brands emerging to join them on the higher platform, there is good reason for optimism for future growth. And with plenty of choice on offer and keen competition to attract new franchise partners, it is a great time for an astute operator to get into this dynamic sector.

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COMMERCIAL FOOD MACHINERY

“Your Success Is Our Business”

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www.cfmvic.com.au 1418a Centre Rd

Sunshine 180-184 McIntyre Rd

03 9543 1611

03 8312 1600

Clayton

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Opinion PEOPLE | LEADERSHIP

Maintaining trust is a must in franchising W GREG NATHAN Greg Nathan is founder of the Franchise Relationships Institute, a corporate psychologist and author of the best-selling book, Proﬁtable Partnerships

hen I was young I had a guitar amplifier that regularly malfunctioned. The best way to fix it was with a firm bang on top. One day the fist-bang technique didn’t work so I turned the amp off and started poking around inside with my finger. I suddenly felt a stab of pain up my arm and was flung backwards against the wall. This left me feeling shocked in more ways than one. What I had not understood was the electricity stayed in the valves for some time after the switch was turned off. And this incident taught me a valuable lesson about respecting its power. In a sense, relationships are like electricity in that, while you can’t see them, they also hold enormous creative and destructive power. Relationships bring us joy and give our lives meaning. But when they fail they also cause pain and misery. Our greatest challenge as human beings has always been getting on together. Despite our good intentions there will often be certain people who bring out the worst in us – and others who would perhaps say that we bring out the worst in them.

not do anything to harm us. Where trust is high there is also a belief that others have our welfare at heart and will actively protect our best interests. Maintaining high levels of trust can be a challenge in the franchise relationship because there is often a suspicion from franchisees and franchisors about the motives of the other.

Why some conﬂict is inevitable

Five tips for trust

Keeping relationships positive is especially difﬁcult where there is a formal, long-term commitment and mutual dependence. In these types of interdependent relationships, which include marriage, parenting and, of course, franchising, some conﬂict is inevitable.

The following acronym provides some practical guidelines for building greater trust when our relationships with others are under strain. Truthfulness: Be up-front and honest in what you say and do. If you’ve made an error in judgement admit it. Trust withers instantly when people ﬁnd you have not been straight with them. Respect: Show consideration in your dealings, even when the views of others differ from your own. Putting others down or discounting their views just breeds resentment and defensiveness. Understanding: Ask questions and make an effort to really listen to the perspective of others. Understanding someone’s point of view does not mean you agree with it. When people are listened to they are more likely to change their mind in the face of reasonable evidence. Service: Try to be helpful rather than just looking out for your own interests. When you invest in the wellbeing of another you are also investing in your relationship with that person. Tact: Take into account differences in personal styles when communicating with others. Not everyone sees the world as you do and not everyone likes to be treated the same way you do. In conclusion, when it comes to healthy franchise relationships, trust is a must. Greg Nathan can be contacted at gnathan@franchiserelationships.com

While interdependent relationships are often challenging, they can also be productive and satisfying, especially where there is a high level of trust and respect This is because you can’t just walk away when you don’t get your own way. The other party will still be there the next day, and the next, and the next. For an interdependent relationship to function effectively, you have to learn to work things out. The good news is, while interdependent relationships are often challenging, they can also be productive and satisfying, especially where there is a high level of trust and respect. Indeed an important principle in maintaining good relationships is establishing and maintaining trust. At a minimum, trust is a belief that others will WWW.FRANCHISE.NET.AU

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Feedback LETTERS Franchisors can put the thumb screws on their franchisees about ﬁnancial accountability. Julia Camm suggests it’s time the franchisors listened to their own advice

here’s been a bit of bother lately with some well known franchise systems getting themselves into signiﬁcant ﬁnancial distress. I cannot begin to imagine the emotional distress and uncertainly facing their franchisees. I also can’t comprehend how any business can lose such a big bucket of cash. The Pompous Goose [one of my favourite bloggers – and my husband] waded into the issue and stated that executives can’t turn things around when things go bad because they don’t have the smarts, or don’t have the ticker. Certainly, research we’ve conducted at Corven indicates that franchisors encourage prospective

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franchisees to develop their financial smarts. Franchisors want franchisees to comprehend the ramifications of personal debt and expenditure; to identify all possible financial risks, additional sources of funds and contingency plans and to obtain information on accounting fundamentals and related obligations. Franchisors expect the franchisee to be responsible for sales and profit; to estimate income expectations and create realistic quarterly budgets; to demonstrate report interpretation and analysis skills for profit & loss statements and balance sheets; and discuss cash flow forecasts and related management techniques. Perhaps franchisors and their

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Franchising magazine welcomes feedback. Do you have an opinion on a burning issue in franchising? Email your letters to the editor: sarah.stowe@reedbusiness.com.au

executives should work through this list too. What is good for the goose is good for the gander. What I am getting a feel for is the extent of sound business numeracy in franchising ... actually, the lack of it. Franchisors are accountable for their own business numeracy capability and to build this in others. The FCA State Conferences are aligned for the first I can remember on the theme of driving franchisee profitability. I encourage you to go and awaken the ‘financially accountable franchise giant’ within! Julia Camm is an adviser to the franchising community and the founder and lead consulting academic of Corven

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Welcome to a lifetime of opportunity Branding Partnership Rewarding Commissions Free support and training Free mortgage program â&#x20AC;&#x201C; e-mms Turn key operations Industry leading commissions Ongoing training Networking Start now with just you!

Build a successful business and become a Mortgage House Brand Partner. Whether you want to own and operate your own Mortgage House retail outlet, operate from a non retail premises such as an off street office, or work from home, discover the benefits of becoming a Mortgage House Brand Partner today. Imagine five or ten years? Now you have the chance to grow a substantial business with a large passive income.

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break

Coffee Checklist

Coffee

Take a break from your research and test your skills with our word search.

WORD SEARCH I

Answers online at www.franchise.net.au

Heading D I S C L here O S U

WORD SEARCH

W Q

Some key words regularly used in the franchise sector and appearing in this issue are hidden below.

Look for:

DISTRESSED DISCLOSURE COFFEE AMERICAN

O W

“Why do you want to invest in a franchise?”

WIN

A SONY TX10 DIGITAL CAMERA

1 Log online to

www.franchise.net.au 2 Find our web tile and click through to an online registration form 3 Enter this issue’s secret prize code: SDCTX10

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CHIPS DIGITAL MANUAL CONVENTION

Who said that? Check this issue to ﬁnd out who made the following comment:

“A successful franchise starts with you; your motivation, passion and commitment.” Visit www.franchise.net.au for the answer.

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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]

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Cover Story|Franchising

A-Z listings Online directory

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

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

Phone: 0418 126 213 Contact: Natalie Alexander-Stivala Email: natalie@adsinteriors.com.au Website: www.adsinteriors.com.au

VIC: Peter O’Hara or Michael McNamara on (03) 9550 0602 NSW: Shayne Howarth or Mark Moran on (02) 9798 0711 QLD: Brett Reading (07) 3511 7733 Website: www.7elevenfranchise.com.au Start up costs from: approx $250,000 + 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.

Proﬁle: ADS Interiors specialises in retail, commercial and hospitality design and ﬁt-outs. Whether you require the perfect concept, execution of your roll-out program or sourcing of new/re-engineered products, ADS Interiors can provide the support system needed to hit the ground running and turn your vision into reality!

Proudly awarded Franchisor of the Year 2008 & 2009, by the Franchise Council of Australia. * expenses incorporated in the 7-Eleven charge

Phone: 1300 287 669 Fax: 1300 795 287 Contact: Kim Davies Email: kim@atservices.com.au Website: www.appliancetaggingservices.com.au

Phone: 0438 881 325 Fax: 07 3863 3364 Contact: Jared Patrick Email: jared@aussiemobilegrooming.com.au Website: www.aussiemobilegrooming.com.au

Start up costs from: $40,000 + GST

Start up costs from: $59,000 + GST + van

PROFILE: Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? ATS are Australia-wide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2003. 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 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 be just the opportunity for you.

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PROFILE: Aussie Mobile Grooming, the Australian arm of the global Aussie Pet Mobile pet grooming franchise, has announced it is here to service Aussie pets. Aussie Mobile Grooming is the world’s leading mobile dog and cat grooming business providing services to more dogs and cats than any other mobile pet grooming service in the world. The service that Aussie Mobile Grooming offers is second to none. As well as serving the massive US market, Aussie Pet Mobile also has international operations in Ireland, Japan, Canada, New Zealand and now Australia. In 2009, Aussie Pet Mobile was voted the world’s number 1 Pet Service by Entrepreneur Magazine 2009.

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

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

Start up costs from: $34,990 + GST

Start up cost: $144,000+gst

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: 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.

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

Phone: (07) 5532 7518 Fax: (07) 5532 7517 Contact: Christian Coenen Email: info@bakersclub.com.au Website: www.bakersclub.com.au

Start up costs from: $180,000 to $345,000

PROFILE: Anytime Fitness is one of Australia’s fastest growing franchise networks, with over 70 local clubs open in just 2 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, not by yourself. With over 1500 clubs open worldwide, a proven track record and over 55% of our franchisee owning more than 1 club.

Start up costs from: $200,000 - $400,000 PROFILE: Baker’s Club is the Taste of Europe and is an European Eat In and Healthy Fast Food Bakery. Baker’s Club is exceptionally different to other bakeries, with a strong German and French tradition which has spanned more than 160 years. We bake all day in a traditional stone oven, so that our Breads, Rolls, Cakes and Sandwiches and even the Pies are fresher than anywhere else. The baking ingredients and the baking process are of an extraordinarily high quality - just as you would expect from an European Bakery. The product range includes German breads such as Wholegrain, Sourdough, Pure Rye, Organic breads and high quality Australian breads. We have also the ﬁnest and freshest Gluten Free range such as breads, sandwiches and cakes. We believe in healthy and tasty eating habits and there is nothing else around that can compare.

Phone: 03 9359 6004 Fax: 03 9359 0977 Contact: Evan Drakos Email: evan@beds4backs.com.au Website: www.beds4backs.com.au Start up costs from: $300,000 PROFILE: Beds for Backs is a premier bedding retailer, offering uniquely tailored bed solutions for sleep health. Developed in consultation with leading Australian health professionals and universities, Beds for Backs is revolutionising the Australian bedding industry and taking Australian technology to the world! Join us in the “Science of Sleep!” Franchisees will enjoy the beneﬁts of: • High margins • A winning formula – exceptional conversion rate • Unique and patented bedding technology • Proven health product • Turn-key operation set-up and ongoing support • Extraordinary customer satisfaction levels • Comprehensive training – no experience necessary.

Phone: +61 418 500 7621 Contact: Andrew on 1800 634 227 or Email: andrew@briantracyanz.com Website: www.briantracyanz.com :

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.

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A-Z listings Phone: 07 3423 0555 Fax: 07 3423 0600 Contact: Dean Vella Email: dean.vella@buckingbull.net Website: www.buckingbull.net

Phone: 08 8274 0900 Contact: Ian McNab Email: ian@cartridgeworld.com.au Website: www.cartridgeworld.com.au

Start up costs from: $150,000 PROFILE: Bucking Bull – Australia’s Favourite Roast & Grill - is a boutique carvery with outlets located primarily in major shopping centre food courts across Australia. With a Best Practice franchise business model, Bucking Bull is providing business seekers with a stunning opportunity that delivers results. Bucking Bull offers a unique home-style, traditional menu of roast meats, sandwiches, burgers, subs and spuds. The successful food and beverage franchise has developed a unique rack-roasting cooking process that ensures their famous meats are always juicy, tender and tasty. Bucking Bull’s unique offering promises not only fantastic value and quality, but also very tasty food!

PROFILE: Cartridge World is one of the fastest growing franchises in the world with more than 1,700 stores operating globally since its inception in Australia in 1997. As a global leader in the re-charging and remanufacture of printer cartridges, printers and consumables for retail and business, our strong systems • Use of established brand, trademarks and proven business systems • Lower risk of failure/high potential for growth • Strong brand recognition and administration support • Low cost of entry • Ongoing training, advice and support, beneﬁt our franchisees immediately. You become part of the Cartridge World team. You are in the business for yourself – but not by yourself. Think about how many people and businesses you know that use printers… that’s why we are in business! Take the next step to controlling your future, contact Cartridge World today

Franchising opportunities are currently available Australia wide.

Phone: (03) 9543 1611 Contact: Scott Giannuzzi Email: scottg@cfmvic.com.au Sunshine Phone: (03) 8312 1600 Contact: Jim Carpoussis Email: jimc@cfmvic.com.au Website: www.cfmvic.com.au

Phone: 03 8727 9999 Fax: 03 9729 3266 Contact: Dean Hogan Email: franchising@clarkrubber.com.au Website: www.clarkrubber.com.au

Clayton

PROFILE: Commercial Food Machinery is a leading supplier of commercial catering equipment to franchise groups in the hospitality industry. As a one-stop-shop, CFM supplies & imports a vast array of products including: • cooking equipment • refrigeration • front display cabinets • stainless steel • counterline appliances • bakery equipment • cutlery • table top accessories CFM prides itself in supplying the world’s leading brands and also offer tailored custom made solutions for all needs. Come into our Clayton & Sunshine showrooms to view our huge line of equipment for your business. At CFM, we have vast franchise expertise and ensure that customers receive unsurpassed pre and after sales service. In the years that have passed, we have developed a clear understanding of franchise needs and apply our extensive product knowledge for the efﬁcient design of cooking, preparation, and front display areas.

Start up costs from: $400,000 PROFILE: “Clark Rubber is an iconic Australian retailing brand and has been so for more than 65 years. Currently with 75 stores across Australia, we are now in expansion mode and have many new store opportunities in all states and territories of Australia. As a result, we have some great opportunities for enthusiastic people who want to get to the top. Clark Rubber has a unique product range, including foam, rubber, pools and pool products and differentiates itself in the market place through the provision of informative customer service in its product categories. During the 2009/10 ﬁnancial year, we’ve experienced fantastic trading which will result in record sales. Our highly experienced and skilled franchise support ofﬁce team is behind Clark Rubber franchisees every step of the way, including in relation to buying, marketing, merchandising, in-store operational and administrative support, IT and training. Have fun!”

Phone: 1300 657 339 Fax: (02) 9326 0144 Contact: Rebecca Scrivens Email: rebecca@contourshq.net.au Website: www.contoursfranchise.net.au

Phone: Fax: Email: Website:

1300 Crepes ( 1300 273737 ) 02 93430265 enquiries@crepeaffair.com.au www.crepeaffair.com.au

Start up costs from: $29,500 + GST Start up costs from: $100,000 – $150,000

PROFILE: As one of Australia’s fastest growing companies in women’s fitness, Contours offers small business owners the opportunity to experience financial reward simply by helping others, and doing what they love on a daily basis. With over 180 studios open today, 30 more opening soon, and growing every month, it’s clear that Australian women have embraced the Contours fitness concept. As a Contours franchisee, you immediately benefit from comprehensive training, market analysis, studio design and development along with sales and marketing support. This dedicated, Australian based support team will give you the tools needed to grow your own business.

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PROFILE: Crepe Affair is a unique mobile dessert bar franchise, offering sweet crepes, buttermilk pancakes and a self serve coffee service – both in the client’s home for parties and elsewhere for functions and events of all types and sizes. Use your own vehicle or invest in ours. Its simple, its effective, its unique. An all Australian mobile franchise that ticks all the boxes – part time, easy to learn, unique process, well supported, great ROI, low entry price, grow at your own pace. Crepe Affair is a NEW franchise but beneﬁts from 10 years of continuous product development, as well as operational and franchise experience. If you’re good with people, enjoy working with food (no commercial experience required) and are looking at a way to supplement your income or create a part time business this could be for you. With an investment of just $29,500 we’ll get you started and help you grow at your own pace.

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A-Z listings Melbourne: 03 8102 9200 Sydney: 02 8220 8700 Email: growth@dcstrategy.com Website: www.dcstrategy.com

Phone: 0410 860 000 Contact: Tony Shortt Email: tony.shortt@crestcom.com Website: www.crestcom.com Start up costs from: $75,000 + $20,000 PROFILE: For two decades, Crestcom Franchisees have marketed and delivered management skills development training. Franchisees are supported in the training by video based instruction from Crestcom’s Video Faculty, which includes some of the ﬁnest management authorities of our time. Crestcom works with all sizes of organisation from small local to large multi-city. Each month managers across Australia are participating in Crestcom’s Bullet Proof Manager training. Crestcom Franchisees come from varied backgrounds, from corporate executives to sales professionals. Owning a Crestcom Franchise provides the opportunity to run your own business, offer world-class training and be part of a respected organisation operating in 60 countries.

PROFILE: DC Strategy is Australia’s leading business growth specialist with a proven track record of developing successful franchise networks and brands in Australia and internationally. DC Strategy’s specialist consultants assist business owners and franchisors with: • Growth strategy • Franchise system development • International expansion • Performance and proﬁt improvement DCS Lawyers is a specialist corporate and commercial law ﬁrm with a proven track record of providing top level legal advice, matched by a commitment to delivering practical advice that supports the growth of your business. Our areas of expertise include: • Franchise law – franchisor and franchisee • Trademarks and intellectual property law • Disclosure documents and franchise agreements • Property and leasing transactions DC Strategy. Business growth specialists

Address: GPO Box 1521 Sydney NSW 2001 Phone: (AUS) 1800 643 303 (NZ) 0800 880 046 (HK) + 852 2834 5832 Email: franchiseinquiry@dymocks.com.au Website: www.dymocks.com.au

Phone: +618 8410 2555 Fax: +618 8410 2322 Contact: Christopher Bruce Email: cbruce@dwlaw.com.au Website: www.donaldsonwalsh.com.au

Start up costs from: $400,000

JOIN THE AWARD WINNING TEAM Donaldson Walsh FCA Supplier of the Year in 2009 and 2010 Corporate INTL’s 2010 Franchising Law Firm of the Year in Australia.

PROFILE: Dymocks stores are run and owned by individuals who have a genuine interest in books and are passionate about providing the very best in customer service. The Dymocks franchise system offers: • 130 years of bookselling experience which means that all aspects of our operation have been tested in a real commercial environment; • the opportunity to use Dymocks good name and a reputation for excellence in bookselling; • the beneﬁt of large-scale advertising which no small business could individually afford; • a proven set of operating systems; • training and guidance; • access to group buying arrangements; • and experienced advisory staff to help your business grow. Looking to expand: Australia Wide, Hong Kong and New Zealand.

Our national and international experience and expertise has provided countless clients with practical solutions to the complex issues faced throughout their franchise system’s lifecycle. For straight-talking, forward-thinking support at every stage of the franchising process, our award-winning team is at your service.

Phone: 1800 nanotek (626 683) Fax: 02 8572 9457 Contact: Adam Stone Email: franchises@nanotek.co Website: www.nanotek.co

Phone: Fax: Contact: Email: Website:

Start up costs from: $45,000 + car lease

Start up costs from: $24,500

PROFILE: Nanotek is the evolution of ecowash mobile, the global leader in mobile car cleaning and a multi-award winning international franchise operation with over 140 mobile units servicing all states of Australia, the Middle East, Europe, Central America and the USA. With an exclusive product range based on liquid polymer nano-technology, the entire Nanotek car cleaning process is eco-friendly and totally waterless which means that a Nanotek treatment can be done anywhere – in a car park, on the street or even on the showroom ﬂoor. A complete range of services ensures a broad client base ranging from individual car owners, through to car dealers and corporate ﬂeets. NANOTEK – advanced car cleaning technology from the future.

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

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.

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

Phone: 1300 FASTWAY Website: www.fastway.com.au Start up costs from: From $25,000*

PROFILE: Whether you crave a better lifestyle, control over your income or a more rewarding career, a Fastway Courier franchise can help you take control of your future. As market leader in nationwide courier services, our multi-award winning franchisees enjoy: • guaranteed income packages* • a well known and trusted brand • no weekend work • unparalleled business support and training • exclusive territories • a perpetual franchise agreement with no ongoing fees So, if you’re ready for a positive change we’d love to hear from you. *Conditions apply.

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.

Phone: 1300 798 501 Fax: 1300 798 502 Website: www.franchiselegal.com.au Contacts: Melbourne: Ilya Furman Email: ilya.furman@franchiselegal.com.au Sydney: Heath Adams Email: heath.adams@franchiselegal.com.au

Level 5, 530 Collins Street, Melbourne, Victoria 3000, Australia. Phone: 1300 FRANCHISE or 03 8615 7240. Contact: Kevin Bugeja 0412 511 630 Email: kevin@franchiseselection.com.au Contact: Tony Maddock 0400 017 882 Email: tony@franchiselection.com.au Website: www.franchiseselection.com.au

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

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

Phone: 08 9445 5172 Contact: Manager Retail Administration Racing and Wagering WA 14 Hasler Road Osborne Park WA 6017 Email: tabsforsale@rwwa.com.au Website: www.tabsforsale.com.au

Phone: 1300 372 624 Contact: Franchise Selection Email: franchise@franckprovost.com.au

PROFILE: Trusted by 10 Million Guests in 30 Countries every Year Franck Provost Paris is the leading Hair Salon in France, and there are now more than 650 Salons around the world. The creator, Franck Provost has achieved an exceptional 30-year career. He was once nominated “World Champion Hairdresser” and is the hairstylist to many French and International celebrities such as late Lady Diana, Sharon Stone or Juliette Binoche, as well as prestigious events like the Cannes Film Festival. He opened his ﬁrst salon in Paris in 1976 with a vision of accessible luxury and glamour. Since then, he has developed a hairdressing empire, Provalliance, that is now #1 in Europe and #2 in the world. Two Franck Provost salons have already opened in Sydney and the franchise is now available Australia-wide!

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PROFILE: Racing and Wagering WA (RWWA) has a proud history of TAB Agents going back over 50 years. We are a leader in a unique and thriving industry and a signiﬁcant contributor to the community. The focus of the TAB is very much on engaging with our customers and meeting their needs. We do this by continually striving to make our retail outlets more contemporary and appealing and by offering easy access to the full range of TAB wagering products and services. Our Agents are an important part of our network and provide the opportunity for both parties – RWWA and Agents – to work together and jointly share in business success. Tomorrow’s TAB. Be part of it.

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

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

Start up costs from: $300,000

PROFILE: Australia’s largest gelato franchise with over 20 years of product development and customer satisfaction. Gelatissimo presents a unique concept supported by a brand that embodies style and sophistication creating the feel for all things Italian…The tradition, the romance, the people and store aesthetics. Apart from creating a retailing point of difference, we have a strong and stable performance record. The average Gelatissimo store turnover is $735,000 with comparative store growth of +6.35% over the past 2 years. In a volatile and difficult retailing environment, these results are enviable and reflect a strong focus on brand and local store marketing. In addition, unlike many franchise systems at Gelatissimo we charge a flat royalty fee instead of a percentage of sales, so when your business grows you reap the rewards!

PROFILE: Gloria Jeans Coffees is an Australian-owned brand that is loved and respected around the world. With over 996 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. If that interests you, we’d love to hear from you.

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

Phone: 07 3177 0842 Fax: 07 3876 0107 Contact: Jamie Hayes Email: jamiehayes@healthyinspirations.com.au Website: www.HealthyInspirations.com.au

Start up costs from: $27,500 inclusive Start up costs from: $95,000

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.

PROFILE: Healthy Inspirations is a successful business that combines women’s weight loss with exercise and coaching. • Low start up costs • Business planning support • Extensive on-site training program • Finance to approved applicants The business model provides multiple income streams to create higher revenues, even in lower population areas. No ﬁtness or nutritional knowledge is required as full training is provided to help you operate a successful centre.

Phone: 02 9452 8888 Fax: 02 9452 8899 Contact: QLD: Chad Braithwaite 9452 8888 SA/NT: Rhys Goldsworthy 8352 1622 NSW/VIC/TAS: Kelvin Bartholomeusz 9452 8888 Email: chad@hsw.com.au Website: www.hsw.com.au

Phone: 0413 433 612 Fax: 03 8631 7797 Contact: Gill Gialamatzis Email: gill@hudsonscoffee.com.au Website: www.hudsonscoffee.com.au Start up costs: $250,000-$350,000

Start up costs from: $600,000+ PROFILE: Howards Storage World is a specialist retailer of innovative storage solutions for the home, office and garage. The range of stylish and functional storage systems include racks, shelving and wardrobes. There are now over 60 Howards Storage World stores around Australia. The Howards Storage World franchise operation is tightly structured and provides franchisees with a high level of support including: initial five-week training program, on-going training and support with our team of regional managers, merchandisers, marketing team and buyers. This is coupled with our scheduled franchisee meetings, high-profile site selection, national group buying power as well as access to a strategic monthly marketing campaign which includes our annual catalogue.

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, matching the right franchisee to the right site is imperative. This has resulted in a dynamic, satisﬁed team of franchisees that are a great support network for each other and share like minded business goals. The franchise is expanding in Australia with sites selected in a range of areas including central business districts, hospitals and regional areas.

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

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

Start-up costs from $15,000 ex GST Start up costs from: $20,000-$40,000 Depending on Division 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: (AUS) 02 9527 5444 Fax: (AUS) 02 9527 5144 Contact: Chiree Craig Email: chiree@justcuts.com Website: www.justcuts.com Start up costs from: $160,000 to $240,000 PROFILE: Don’t just buy yourself a Job! Discover how you can easily run a “Genuine Business System”. Did You Know? Most of our Just Cuts™ Franchise Owners are not Hairdressers. Plus, the average Franchise Owner goes on to own multiple stores. 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™ offer a No appointment necessary, quality style cut and at an affordable price. Contact us today to ﬁnd out how. Join the largest Hairdressing Franchise in the Southern Hemisphere.

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.

Phone: 02 8412 6000 Contact: Scott Forrest Email: Scott.Forrest@knowledgetoaction.com.au Website: www.knowledgetoaction.com.au

PROFILE: If you are looking for more freedom, a better lifestyle and a business opportunity then you need to attend Knowledge to Action’s free Ultimate Forex Secrets Seminar. Forex trading is a real option for anyone looking to create a serious income or ﬁnd true ﬁnancial freedom with minimal start-up capital. Presented by a professional Forex trader, you will be introduced to Forex trading strategies and learn how an hour of daily trading can help you build a sustainable income without impacting on your lifestyle. Register for free at www.knowledgetoaction.com.au or call free on 1800 555 058.

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

Phone: 02 9899 9655 Fax: 02 9899 9455 Contact: Joe Sultana Email: Jsultana@lifetimedistributors.com.au Website: www.lifetimedistributors.com.au

Start up costs from: $210,000 Start up costs from: $20,000

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.

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PROFILE: • Lifetime Distributors is the largest display marketing book company in Australasia. • Provides the convenience of shopping in the workplace to thousands of people. • Founded in 1990. • Has a proven business structure of Master Franchisees and Franchisees. • Franchises offer fantastic growth potential with high levels of repeat business and impressive earnings ability. • Sells over 4 millions products each year. • Full initial and on-going training is provided to franchisees. • A major supporter of many charities across Australia. • Cost of franchise varies by location. • Stock on consignment. • No hidden fees or charges. • Service 40,000+ businesses

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A-Z listings Phone: 1300 139 557 Contact: Richard Garraway Email: enquiries@thefranchiseshop.com.au

Phone: 1300 663 843 Fax: 02 9429 6299 Contact: Colin Walker Email: mastercare@mastercare.com.au Website: www.mastercare.com.au

Start up costs: Initial Franchise Fees - CBD locations from $50,000 - Regional Cities from $30,000 - Regional Towns from $25,000 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. Lollypotz has a very well developed system and website to support you. The system was developed by Louise Curtis, who is the owner of Lollypotz and who was recently awarded the ACT Telstra Businesswomens Awards in Both the Yellow™ Business Owner and Nokia Business Innovation categories. You will receive excellent training, induction and ongoing support. (Franchise owners in regional towns and cities can choose whether to operate from a home ofﬁce or take the traditional shopfront if they prefer)

Start up costs from: $12,500 + GST

PROFILE: Mastercare is a respected national cleaning contractor with more than 30 years’ experience. Our franchisees work for themselves, not by themselves. They enjoy great returns, support, ongoing training, and access to a long list of well-known clients right across Australia. Beneﬁts also include a trusted brand, an affordable ﬁnancial investment, and the opportunity to tailor your business to your lifestyle. Best of all, our franchisees don’t have to knock on doors to grow their business, and they don’t have to cold call. Ever. Not unless they want to, of course!

Phone: 0400 017 882 Contact: Tony Maddock Website: http://www.mayamasala.net

PROFILE: Now is the right time for you to invest in Australia’s largest Indian Restaurant Franchise… Maya Masala has grown from strength to strength and more importantly popularity and proﬁtability. Maya Masala has big plans and has seen continues growth throughout global ﬁnancial hardships. So if you are interested in a unique and affordable franchise opportunity get in contact with us today.

Phone: 03 9794 2617 Fax: 03 9794 2540 Contact: Jane Garber and Michele Laks-Belzycki Email: jane.garber@mk.com.au OR michele.laks-belzycki@mk.com.au Website: www.mk.com.au PROFILE Building on over 105 years, M+K has a long and enviable record in building, supporting and protecting franchise businesses. M+K franchise team offers ﬁxed fees for most matters and turnaround time guarantee and provides direct access to all lawyers. M+K franchise team are experts in: • Franchise documents preparation • Franchise system development • Brand and other IP protection • Competition + Consumer Act (CCA) compliance • Distribution, agency + other trade agreements • Business + trade structuring • Leasing and licensing agreements

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

Phone: +613 8540 0200 Fax: +613 8540 0202 Contact: John Sier Email: john.sier@mst.com.au Website: www.mst.com.au Start up costs from: $na

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: 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.

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A-Z listings Phone: 03 9544 9166 Fax: 03 9544 9466 Contact: Geoff Elias Email: gelias@muzzbuzz.com.au Website: www.muzzbuzz.com.au

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

Start up costs from: $299,000

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 80 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 7th in the top 10,10 THOUSAND FEET National Franchise Survey for Franchisee Satisfaction.

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 at number 6 nationally 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 franchise business partners for SA, VIC, NSW and QLD.

Contact: Napoleon Perdis Phone: 1-300 MAKEUP Website: franchise@napoleonperdis.com

Phone: 0411 111 243 Fax: 03 9384 0888 Contact: Frank Vella Email: frank@quantumconsulting.com.au Website: Nandos.com.au/franchising Start up costs from: $450,000

PROFILE: Franchisees will find their passion for the brand rewarded with an unrivalled level of support through comprehensive training, ongoing guidance and constant feedback. In fact, all franchisees are even assigned their own field marketer and business development manager. So it’s no surprise our proven business model is accredited with numerous financial institutions with 50- 70% credit available.

PROFILE: Join Australia’s leading makeup house and gain dynamic returns on your investment! Vibrant colour, flawless skin and unadulterated glamour–that’s the Napoleon Perdis look. Australia’s most beloved beauty brand is NOW seeking franchise partners to spread the beauty gospel. • With over 70 successfully operating Concept Stores, thriving David Jones counters and flourishing independent doors, Napoleon Perdis is the country’s leading purveyor of makeup chic. • Franchisees will benefit from global marketing, cutting-edge campaigns, illuminating training, and a comprehensive support network

For more information about how you can become a part of something special, contact Nando’s Head Ofﬁce on 0411 111 243 or visit nandos.com.au/franchising

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

Phone: 02 9362 0123 Fax: 02 9362 0124 Contact: NKA Marketing Agency Email: info@NKAUnleashed.com Website: www.NKAUnleashed.com

Start up costs from: $300,000 depending on ﬁt out cost, contribution and location

PROFILE Unleash Your Brand Potential with Retail’s Innovative Marketing Agency. NKA aim is to create new value in your target consumer’s perceived value chain & motivate them to an Evangelist relationship intensity with your brand. The research-founded Marketing & Advertising Agency have created methodologies to achieve: • Emotional Engagement with the target audience • Enchanting customer relationships with your brand • Relevance through campaign connections Creators in the NKA team have most likely been involved in the development of brands you are exposed to or utilise everyday. Faced with a Marketing Problem or Opportunity? Talk to NKA. Enquire Now on 02 9362 0123 or visit www.NKAUnleashed.com

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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.

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A-Z listings Phone: (08) 9304 4388 Contact: Rowena Clark Email: rowena@ovenbbqcleaning.com.au Website: www.ovenbbqcleaning.com.au

PROFILE: A New way to clean your Oven and BBQ has arrived! Introducing Oven & BBQ Cleaning, formally Ovenclean. Oven & BBQ cleaning provides a unique service to the domestic market. Ensuring that their Ovens, Tops, Rangehoods, Microwaves and BBQ are cleaned to perfection. Job satisfaction is a very rewarding part of any job, but how about getting paid immediately as well!! • Constant cash ﬂow • Low overheads • Flexible operating hours • Affordable entry level • Extensive training • Ongoing support • Repeat business

Contact: Ken Patterson Phone: 1300 699 955 Mobile: 0487 086 705 Email: enquiries@ozzykleen.com.au Website: www.ozzykleen.com.au Start up costs from: $29,950 + GST PROFILE: Ozzy Kleen is a commercial and residential property cleaning service operating in and around Newcastle NSW, specialising in domestic and commercial rental properties. We offer our clients a timely, high-quality and holistic approach to their property cleaning needs. We are currently looking for Franchisees to join our evolving system.

We are NOW recruiting in all states. Call us for an information pack.

Phone: 02 9822 5622 Fax: 02 9822 5677 Contact: Martin Lo Surdo Email: martin.losurdo@packsend.com.au Website: www.packsend.com.au Start up costs from: $210,000 Outlets: 110 PROFILE: PRICEWATERHOUSECOOPERS Australian Franchisor of the Year 2007 and the International Franchisor of the Year 2008 Runner-Up. PACK & SEND® is an Australian success story that was established in 1993. Our team of 100 franchisees enjoy a limitless marketplace and create ‘raving fans’ by offering our customers a powerful range of ‘No Limits’ solutions to their packaging and freight problems. With our systems, supplier network and experience our franchisees are able to achieve the unbelievable with ease. Everyone is a potential customer of PACK & SEND from Householders to tourists, small business right up to large corporations. By creating our own niche market we are able to sustain some of the highest margins in our industry and have a dominant market position. Our business is being propelled by rapidly expanding market segments such as e-commerce and particularly eBay. Our international expansion plans came to fruition in late 2008 with the opening of PACK & SEND stores in the United Kingdom and New Zealand.

Phone: 1800 245 447 Fax: (07) 3217 8900 Contact: Dean Atkins Email: joinourteam@poolwerx.com Website: www.poolwerx.com Start up costs from: $93,950 plus van

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

Phone: 1300 372 624 Contact: Kevin Bugeja Email: Kevin@franchiseselection.com.au Website: www.refundsdirect.com.au

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

PROFILE: RedCat was established in 1992 and is a subsidiary of the Belgravia Group of Companies with interests in technology, operating businesses, property and listed equity and net assets in excess of $100 million. RedCat has ofﬁces in Melbourne, Canberra and Adelaide and channel partners in all states.“Whether you are running a small takeaway coffee shop or a nationwide franchise operation, RedCat can tailor a solution that is affordable and will deliver a rapid return on your investment.” The RedCat suite of software has been developed in Australia in accordance with Australian tax and accounting standards. With modules that enable you to manage sales, staff, stock and payroll through to accounts, GST, customer loyalty and more, RedCat provides complete Point of Sale and Business Management solutions. RedCat has extensive experience in hospitality, technology and accounting practices. We understand the unique challenges you face on a day by day basis and can provide advice and solutions that will enable you to overcome these challenges.

Start up costs from: $55,000 PROFILE: Refunds Direct is a new market changing loans leads generation business. Refunds Direct helps customers get a better deal from lenders and get paid for their successful loans. Refunds Direct has established valuable referral and service arrangements with lenders for home loans, investment property loans and business loans. This is a simple business model, with low start up and operating costs, (no need for shop fronts or ﬁt outs), earnings potential is high as you share in the commission paid by lenders. Franchisees are supported by an expert franchisor with over 30 years’ ﬁnance industry experience, training, coaching, compliance, licencing and CRM systems. You do not require detailed product knowledge and there is minimal paperwork as this is a referral business. Your focus is on lead generation and network development. We are actively seeking franchise business partners for across Australia

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

Phone: 07 5455 3822 Fax: 07 5455 3616 Contact: Gary Shearer Email: gary@safetyquip.com.au Website: www.safetyquip.com.au

Start up costs from: $9,000

Start up costs from: $180,000

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.

PROFILE: Workplace safety is a growth industry. Each year Australian businesses spend over $2billion in the prevention of accidents and injuries in the workplace. SafetyQuip is a B2B distributor of workplace health and safety products and services. We offer a career in safety services. No safety industry experience is required. Full training is provided through our staff of professional educators. SafetyQuip franchisees have continued to enjoy solid growth during the global ﬁnancial crises. As a result SafetyQuip was recently named a BRW Fast Franchise 2010.

Phone: 1300 SIGNWAVE (1300 744 692) Fax: 03 9642 3800 Contact: Helen Spencer Email: helen.spencer@signwave.com.au Website: www.signwave.com.au

Phone: [61] 07 40311 911 Fax: [61] 07 40311 911 Email: admin@shedboss.com.au Website: www.shedboss.com.au PROFILE: We invite you to join Australia’s most dynamic & successful Steel Shed Network. Shed Boss sells a premium product with proven professional building systems. All outlets are independently owned and operated businesses, using local products and supporting local industry. There are a range of benefits associated with owning your own Shed Boss Franchise: • Be your own boss • a very economical entry to the Shed and Garage Industry • have financial independence • build your own Saleable Business • be the master of your own destiny • develop your own Family Business • be supported by excellent business and building systems • have a Master Franchise that works with you, but does not intrude into your business. Be a part of a business with a great reputation for Service and Professionalism. Interested in owning your own outlet! These Licensed businesses are immensely beneficial to a wide range of people, particularly builders who wish to have a saleable business and get off the tools. If you believe you have the aptitude and skills, we welcome you to make application through the web site above.

Start up costs from: $210,000

PROFILE: SIGNWAVE® is part of the successful FASTSIGNS® sign and graphics franchise system. FASTSIGNS® is a pioneer and recognised industry leader with more than 525 franchised units in six countries. Currently, there are 20 SIGNWAVE® businesses operating throughout the country in New South Wales, Victoria, Queensland and Western Australia. The sign business is a multi billion dollar industry that primarily caters to the business customer. Companies small & large will always have the need to sell, inform and direct their customers and employees. In many cases, vivid, targeted and directed signs and graphics are the perfect solution.

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

Phone: (03) 9567 2600 Fax: (03) 9569 1677 Contact: Carly Mackay Email: cmackay@sportsco.com.au Website: www.sportsco.com.au

Start up costs from: $30,000 (conditions apply) PROFILE: Snap-on Tools have a heritage spanning over 90 years and is a brand that deﬁnes quality. The range of more than 19,000 products are the choice of professional technicians, from NASA to the automotive technician. With more than 4,700 franchisees around the world, 160 of them in Australia/New Zealand, the franchise programme has been developed over decades. The Australian franchise has been selected three times by Smart Investor magazine and latterly named as the Best Value Franchise in Australia. Franchisees have protected territories and operate from amazing custom built mobile stores that take the tools right to the customer’s workplace. Extensive training and ongoing support is provided and no previous mechanical experience is required.

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Start-up costs: Total Investment $200k + Stock PROFILE: Sportsco was established in 1983 and is a national sporting retail franchise with over 70 stores, focusing on footwear, apparel and accessories. With the implementation of 3iD Video Foot Analysis, the world’s leading gait analysis system, Sportsco is a dominant force in sports retail. Sportsco offers exclusive brands with high margin and strong partnerships with leading international sporting brands, along with a full training program and ongoing support provided by an experienced retail team. We are now entering into an exciting new period of growth, so if you have a passion for sport why not join the Sportsco way of life.

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A-Z listings Phone: 0402 627 697 Fax: (08) 8370 6378 Contact: Mel Faull Email: sportyfranchise@optusnet.com.au Website: www.sportybots.com.au

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

Start up costs from: $15,000 (including franchise fee) PROFILE: Sportybots is the original and leading provider of multi-sports programs for kids 18 months to 12 years old in South Australia and we now have opportunities available in all States for fun, enthusiastic and dedicated people to become part of our winning team. • Full training and support • Low entry and ongoing costs • Flexible hours to fit your lifestyle • Fully prepared and detailed lesson plans and guides • Rapidly growing industry • Royalties waived for first 6 months while you grow your business • Strong brand reputation • Access to database of customers waiting for classes in their area • Exclusive territory rights • FUN and REWARDING!! No experience teaching or coaching children necessary as all training and access to accredited courses is provided. Get paid to play. Call us to find out how you can own your Sportybots business.

Start up costs from: $450,000 PROFILE: Snooze is Australia’s premiere bedding retailer, and has been recognised numerous times by the franchising industry as being one of Australia’s Top 10 franchise businesses. Snooze is also Australia’s longest operating franchise business, so joining the Snooze family means you’re becoming part of one of Australia’s most successful retail businesses, with more than 30 years of experience. Snooze provides each of its new franchisees with thorough initial and ongoing training and support across all business areas to ensure each franchise is successful and continues to grow. Snooze is always on the lookout for enthusiastic individuals to join the team, so get in touch now for your information pack!

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

Phone: 1800 011 827 Contact: Elizabeth Email: strategiclifestylesolutions@gmail.com Start up costs: $2,000, $10,000, $20,000

Start up costs from: $9,990 + GST

PROFILE Licensor for the distribution rights of hand sanitising solutions for businesses. Stayclean Hands provides business to business distribution opportunities of its touch-free hand sanitiser dispensers through exclusive areas in Australia and New Zealand. This business to business opportunity guarantees your income through service contracts for the supply of hand sanitisers. A highly sought-after concept with outstanding demand. Act now and choose your exclusive area in your capital city before they are all gone.

PROFILE: Strategic Lifestyle Solutions is a member of one of the fastest growing global organisations in the industry. When some people think about prosperity, they may think about a large sum of money, or maybe a lavish lifestyle. Others may not think about it all because they believe prosperity is something only other people have. By utilizing the resources we provide, it is now possible to completely eliminate debt, dramatically increase cash-ﬂow, build greater self-awareness and begin living the lifestyle you deserve. Take the next step and call now 1800 011 827

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 9898 8666 Fax: 02 9898 3089 Contact: Bonny Email: enquiries@swimart.com.au Website: www.swimartfranchise.com.au Start up costs from: $180,000 PROFILE With growth of more than 35% in the past four years, there’s never been a better time to own a Swimart Pool & Spa Services franchisee. Swimart Pool & Spa Services have 64 retail stores across Australia and New Zealand, providing an extensive range of pool and spa products. Franchisees also operate their own ﬂeet of service vehicles, led by highly-trained and experienced technicians, to deliver customers quality, convenient pool maintenance. With 30 years of experience, Swimart Pool & Spa Services is a power brand providing all the training, Marketing and brand support you need to help drive a successful business.

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A-Z listings Phone: (03) 8699 2555 Fax: (03 8699 2550 Contact: TeleChoice Reception Email: franchise@telechoice.com.au Website: www.telechoice.com.au

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

Start up costs from: $99,000

Start up costs from: $22,500

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.

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.

Phone: 1800 220 039 Fax: 07 5522 0051 Contact: Peter Darnell Email: sales@touchupguys.com.au Website: http://www.touchupguys.com.au

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

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.

Start up costs from: $80,000+ PROFILE: With over 130 van operations across Australia and New Zealand and nearly 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

Contact: Tony Maddock Phone: 0400 017 882 Email: tony@franchiseselection.com.au Start up costs from: $260,000

Proﬁle: Trusonic is a full service music provider and audio marketing specialist. Trusonic’s digital music library contains more than 3 million tracks in all styles including Top 40, modern jazz, instrumentals and more. Their proprietary media player (the MBOX) receives music updates daily via the internet. With Trusonic you can: • Generate extra revenue and create branding with custom ads and IDs • Eliminate PPCA fees with their directly licensed music library • Play music and messages through your phone system • Control the music (and ads) at all sites from the one online interface

PROFILE: With more than three decades of franchise expertise and a product offering that’s second to none, it’s little wonder that Wendy’s is the leading brand of choice in the treats market. Wendy’s is a place where a committed franchisee can realise their full potential – reaping the sweet success that comes with being your own boss. We’re always looking for energetic and enthusiastic people to join our team. To ﬁnd out more about what it means to be part of one of the nation’s most iconic brands contact us today.

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

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A-Z listings Phone: 1800 025 081 Fax: 02 6650 8699 Contact: Scott Young Email: syoung@wet-seal.ws Website: www.wet-seal.net

Phone: 1300 791 088 Fax: 1300 851 772 Contact: Deborah Souris White Email: deborah@wineﬂorist.com.au Website: www.wineﬂorist.com.au

Start up costs from: $50,000

Start up costs from: $135,000 + GST

PROFILE: Wet-seal Waterproofing and Underfloor Heating provides leading products with over 25 years of proven dependability. With a profitable home based business opportunity, you save on rent and all you need is a suitable vehicle. All Wet-seal Franchisees are fully trained at our custom built training facilities and with our TAFE accredited course you can achieve a nationally recognised Trade Certificate III in Waterproofing. Wet-seal undertake all invoicing for you, providing you less paperwork and more time to deliver the best waterproofing & underfloor heating in the industry. You will also be provided with comprehensive start up and regular on-going training, full support from our operations, technical, sales, marketing and IT departments. Ask us about some of our large prime new areas available NOW!

PROFILE: Australia’s first flower and gift franchise. You don’t have to be a florist to be part of Wine Florist a brand which is first in the flower and gift industry. It’s fun, it’s exciting, it’s growing. Learn the skill of Giftology the art of presenting beautiful gifts, and become an expert in wrapping attractive and alluring packages of flowers, wine and food. Franchisees receive training that cover all areas of the brands flower making, gift wrapping, operations and marketing together with ongoing creative development and guidance on growing your business. Allow your creative side to Florish!

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

Phone:Fax: Contact:Email: Website:

PROFILE: Wisewould Mahony is a leading commercial law ﬁrm with a 150 year history in Victoria with clients in Australia and worldwide. 25 Years of Industry Knowledge Member Franchise Council of Australia (FCA) International Franchise Lawyers Association (IFLA) Franchise Association of New Zealand (FANZ) Accredited Business Law Employment Specialists Fixed Fee Services to Franchisors & Franchisees based on scope of services Services provided: • Legal and consulting advice to Franchisors & Franchisees • Code compliance requirements • Dispute resolution – mediation – Solutions & Strategies • Sale/Purchase of Franchise Systems • Master Franchising • Employment Law & Workplace Relations Specialist Call or email for a complimentary brochure for Franchisors & Franchisees

Phone: Fax: Email: Website:

1300 765081 02 9343 0265 info@xquisito.com.au www.xquisito.com.au

Start up costs from: $175,000 PROFILE: Eating Mexican has become an obsession for many Australians and we’re happy to accommodate from any of our 10 Sydney stores. Made to order fresh is our mantra and our Burritos/Tacos/Nachos and more enjoy a great reputation for flavour and generosity. In addition to our Mexican offer we are renowned for our sweet and savoury crepes and filled baked spuds. With a range of branded meats, beans and sauces, Xquisito supports its network of franchises through regular marketing and the supply of many wet and dry base products making preparation simple and consistency achievable. • broad menu with exclusive base products • high profile locations and outstanding fitouts • over 10 years track record • support and training • option to convert your existing outlet

Start up costs from: $69,400 + GST PROFILE: Invest in an Xpresso Delight franchise and seize the opportunity to proﬁt from one of the fastest growing markets on the planet. As the number of savvy, educated coffee drinkers has boomed, the market has exploded! This pent up demand for gourmet coffee in the workplace is very poorly met. Each day, thousands of workers trek to the nearest café to pay as much as $4.00 for their morning and afternoon coffees. This is the premise of Xpresso Delight - transplanting the cafe into the heart of the workplace at a fraction of the price that people pay normally.

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

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INCORPORATING FCA NEWS

Companies in this issue 7-ELEVEN

*65

10 THOUSAND FEET

*124

FRANCHISE SELECTION FRANCK PROVOST

ALEXANDER DESIGN SOLUTIONS 64

GAMING AND RACING

ANYTIME FITNESS

GELATISSIMO

*101

APPLIANCE TAGGING SERVICES *120

GREENBIZCHECK

APPLIED MARKETING SCIENCE

GREENLIGHT GROUP

AUSSIE MOBILE GROOMING

GLORIA JEAN’S COFFEES

AUSTVENDING

*27

BEDS FOR BACKS

BRIAN TRACY

*23

BUSINESS SERVICE BROKERS

72-73

CAFE2U

*39

CALTEX

*50-51, 52-53, 98

CARTRIDGE WORLD

CLARK RUBBER

*15

COMMERCIAL FOOD

119

CONTOURS

*13

CREPE AFFAIR

DC STRATEGY

*94-95

*84-85 104 22

FRANCHISE COUNCIL OF AUSTRALIA

* indicates FCA member

NAPOLEON PERDIS NK & A

*45 37

OUTBACK JACK’S BAR & GRILL *19

*108

OVENCLEAN

*32

*29

OZZY KLEEN

PACK & SEND

*17

*60

RBI

HEALTHY INSPIRATION

*36

REDCAT

HOWARDS STORAGE WORLD

*11

REFUNDS DIRECT

HUDSONS COFFEE

*35

JANI-KING

*59

JIM’S BUILDING MAINTENANCE *102 KNOWLEDGE TO ACTION

126

KWIK KOPY

*83

LIFETIME DISTRIBUTORS

*33

LOLLYPOTZ

*80

MACPHERSON & KELLEY

*90

MASON SIER TURNBULL

*25

MASTERCARE

*40

*106, 110

RP VENDING SAFETYQUIP

2, 93 *76-77

SIGNARAMA

*57

SIGNWAVE

*89

SNAP-ON

SNOOZE

*107

SPORTYBOTS

SPORTSCO

*43

SUBWAY

*71

SWIMART

*111

THE DUSTER DOLLIES

*99

MAYA MASALA

THE FRANCHISE SHOP

MESSAGECOM

116

THE SHED COMPANY

*28

DONALDSON WALSH LAWYERS *56

MICRONET

*14

TOUCH UP GUYS

103

EUREKA MULTIMEDIA

125

DIVERSIFIED EXHIBITIONS

FASTWAY COURIERS FKP

*127

MORTGAGE HOUSE

123

VC SOLUTIONS

*143

MR RENTAL

*21

WENDY’S

MUZZ BUZZ

*63

WINE FLORIST

FLOWERS BY FRUIT

*61

FRANCHISE LEGAL

NANDOS NANOTEK BY ECOWASH

*46-47, 48

*115 122

*144

WISEWOULD MAHONEY

*12

*112

XPRESSO DELIGHT

*97

• Magazine • A-Z listings • The Profiler • The Yearbook • Online inventory • E-newsletter • E-blasts David Strong – National Sales & Marketing Manager Ph: 02 9422 2905 Mobile: 0411 366 656 Email: david.strong@reedbusiness.com.au

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COFFEE FRANCHISES

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