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PERTH EXPO PREVIEW

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LIVE THE DREAM WORK FOR YOURSELF

Franchising www.franchise.net.au

FRANCHISING

May/Jun 2012 VOL.25/No.3

Your essential guide to buying a franchise

MOBILE FRANCHISES

TAKE STEPS TO SUCCESS Find the fitness franchise that’s right for you

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Will you make a good franchisee?

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FRANCHISE HISE FINANCIALS

HAIRHOUSE WAREHOUSE: CELEBRATING 20 YEARS IN BUSINESS

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FR.MAYJUN12.PG003.pdf

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Contents MAY–JUNE 2012 |YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE

Inspire 20

107 REGULARS

Editorial News Cover story Legal Sketch People Glossary Checklist Company listings

On the cover:

Bert Cotte, franchising manager, McDonald's Australia (see page 8)

Safe and sound Build a business in the health and safety field

Express earnings What makes a convenience store relevant?

Wonders of the West Check out the Perth Franchising and Business Opportunities Expo

Issues 16

5 6 8 140 142 144 146 148 166

Hair extensions Hairhouse Warehouse celebrates two decades Taste for growth Jamaica Blue and Muffin Break expansion

Young buns Four franchisees, one bakery

New England, new life Two franchisees share their tree change stories

Charm initiative The Pandora franchise story

A personal service Mortgage Choice grows through tough times

Realise the dream Enjoy work/life balance with a mobile franchise 101 How to be a successful franchisee Is your personality right for franchising? 107 Happy ever after Searching for the perfect franchise

How to... 114 Know your rights Understand the limits of the Franchising Code 122 How to boost your performance Key points to good local area marketing

36 Déjà vu A Snooze franchisee comes back for more

126 Getting on track Training puts franchisees on the path to success

Opportunities

132 Looking at the numbers Check the financials before you sign

Delivery duties How franchisors can help with franchise staff

Dynamic dollar Which fitness franchise will suit you?

Printing prospects The role of franchisees in a changing marketplace WWW.FRANCHISE.NET.AU

132

MAY/JUN 2012 FRANCHISING | 3

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Welcome

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

Live the dream, follow the system

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 Production Co-ordinator Eryk Koziol eryk.koziol@reedbusiness.com.au Direct: 02 9422 2379 Creative Art Director Julie Coughlan julie.coughlan@reedbusiness.com.au Designer Louis Santos louis.santos@reedbusiness.com.au Managing Director Jeremy Knibbs jeremy.knibbs@reedbusiness.com.au Editorial Inquiries Tel: 02 9422 8900 Advertising Inquiries Tel: 02 9422 2905 Fax: 02 9422 2722 Subscription Inquiries Tel: 1300 360 126 Fax: 02 9422 2633 Franchising is a publication of Reed Business Information ABN 132 719 861

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

SARAH STOWE Editor

ould investing in a franchise be the route to you living your dream? For many people there is huge appeal in the idea not only of being your own boss but having flexibility in your daily life. And of course franchising offers the perfect way to embrace business ownership, as five mobile franchisees share with us in the story on p92. Running your own business takes a certain focus and determination, not to mention plenty of hard work. But is there a typical franchisee personality? That’s a question we pose and there’s no simple answer…but as our feature on p101 reveals there are certain characteristics and attributes that successful franchisees share. Staying with the idea of personality, John di Natale looks at what traits make a good franchise business and consequently get you set up for a happy relationship. The concept of the three legged stool, a stable relationship between franchisor, franchisees and suppliers, is at the heart of the best known franchise business in the world. In this issue you can read all about how McDonald’s is looking for new blood to help grow its franchise network – turn to p8 to see what’s involved in investing in the fast food brand. Our focus on franchises includes Hairhouse Warehouse celebrating 20 years in business, Mortgage Choice turning hard times around, and the expansion plans at jewellery chain Pandora. Business ventures looking to grow their networks will be participating in the Perth Franchising and Business Opportunities Expo from 26 to 27 May. Our preview on p86 gives a taster of what visitors will find at the show. Franchising magazine will be hosting the Franchising Networking Lounge so if you’re going along to the event, please come and chat with us.

For many people there is huge appeal in the idea not only of being your own boss but having flexibility in your daily life

Sarah Stowe Editor

Average Net Distribution Period ending Sep ‘11 7,018

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

Look out for our special anniversary edition 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.

WWW.FRANCHISE.NET.AU

MAY/JUN 2012 FRANCHISING | 5

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News ONLINE NEWS | www.franchise.net.au

New look, new stores at Baskin-Robbins Ice cream franchise, BaskinRobbins, is in the process of upgrading its stores to the new global Happy 1.0 design which has a more contemporary, indulgent feel to it. When Franchising spoke to Ian Martin, general manager of Baskin-Robbins Australia, the franchise had opened four new restaurants featuring the new design, with five more openings scheduled over the next two months. The new stores are at Mount Lawley in Western Australia, Hervey Bay, Coolum, Chatswood Central in Queensland as well as the Cavill Mall restaurant on the Gold Coast. A number of existing restaurants are undergoing refurbishments

Baskin-Robbins’ new Happy 1.0 design

including Fremantle and Joondalup in Western Australia, Camberwell in Victoria and Circular Quay in Sydney. “We’ll definitely open 25 stores this year, and we’re hoping to open more,” Martin said. “We have two very clear strategies. The traditional retail footprint will be focused on in

Queensland and WA; in the southern states we’re trialling kiosks in shopping centres. “Generally retail in Victoria and New South Wales is different to Queensland and WA, but it’s amplified in ice cream, it’s very much shopping centre driven.” Kiosks and traditional

stores will both sport the new livery, and Martin said the new look is “a much more contemporary feel without losing the fun. It highlights the indulgent aspect of an ice cream parlour”. “We’re very cautious about getting the economics right. We did a lot of work for six to eight months, and we’ve taken the costs out of store construction and redesigned stores. It’s a fantastic look and we’re building the stores cheaper.”

41,130

The number of free ice cream scoops given away on April 3 as part of Ben & Jerry’s annual Free Cone Day

A Bright Future…

Awaits You with Australia’s Leading Mobile Ink Franchise  Proven System  Low Entry Cost  Strong Cash Flow  Proactive Marketing  Growth Market 1800 ink run (465 786) www.inkontherun.com.au 38119_ink.indd 1

6 | FRANCHISING MAy/jun 2012

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News ONLINE NEWS | www.FRANCHISe.Net.Au

NEWS BRIEFS

Dymocks announces new MD Bookselling franchise chain Dymocks has announced its new managing director: Steve Cox is an internal appointment, and brings with him over 20 years management experience in the retail industry. Cox joined Dymocks in 2011 as general manager of buying, marketing and operations. Since then, he has been heavily involved with all aspects of the Dymocks brand and will now drive the business growth, following CEO Don Grover’s departure earlier this year. “Dymocks is an iconic Australian brand that has stood the test of time for over 130 years. We’re enjoying strong market leadership, and our brand and store network will continue to thrive in this testing retail climate,” said Cox. “There is no doubt that the challenges we face today

are, as for many retailers, significant – however, we are fortunate; our locally owned and operated stores are close to their customer. Our stores are part of their local community and our owners understand the detail of what their customer is looking for and are best placed to deliver this to them. “As a brand we are investing in better understanding our customers so that we can continue to evolve with them. Being a multi-channel retailer, we are also well positioned to adapt to changes in customer buying

Sushi franchise, Go Sushi has additional sites available as part of its Manage to Own program, which targets talented, driven individuals who may not have the capital required to invest Jim’s Pool Care has reached a business milestone, signing up its 50th mobile pool shop franchisee

Steve Cox

habits with continual investment and innovation in both bricks and mortar and online channels.”

“The Australian online retail market is developing quickly and changing constantly. More and more, shoppers are rewarding local stores who invest in and update their online presence.” MasterCard Australia country manager, Andrew Cartwright, www.franchise.net.au

Tasty Trucks invests $2m in new vans Victorian mobile food delivery business Tasty Trucks will invest $2 million this year to build 20 environmentally-friendly vehicles to help expand its ﬂeet across Melbourne and New South Wales. The new vans will service areas such as Frankston, Mornington and Geelong in the Melbourne area. And while the new vans will help to grow the Tasty Trucks system, it will also provide up to 20 new employment and franchising opportunities.

The new vans were developed over a two year process by Tasty Trucks founder, Colin Lear, at a

cost of more than $500,000. Tasty Trucks released its franchising model in October last year and earlier this year announced that it had acquired the Newcastle-based Lunch Express system. The acquisition of the 17-van Lunch Express business was the start of a national expansion for the 23-year-old Tasty Trucks brand which serves more than 15,000 meals a day and at least one million fresh sandwiches each year from its 86 vans.

www.FRANCHISe.Net.Au

Crust Gourmet Pizza has opened five new pizza bars at the Melbourne Cricket Ground, dishing up pizza with a choice of four toppings, served by the slice and hand-made on-site An online store has been launched by the Traxx Construction Products franchise which supplies tools and equipment for work with concrete and masonry The BIG4 Holiday Parks franchise has boosted its network with five new properties joining the group Metcash will be closing 15 of its regional Campbells Cash & Carry stores, with 315 positions being made redundant Kebab franchise Ali Baba is undertaking a brand revitalisation, focusing on its healthy ingredients to change customers’ perceptions about the menu and broaden its target market Following their success in Hoppers Crossing, Werribee and Geelong, Ready Steady Go Kids franchisees, Carmen and Byron Dodds, are now set to take on the program in Victoria’s Altona North

MAy/juN 2012 FRANCHISING | 7

FR.MAYJUN12.PG008.pdf

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Inspire|Interview

OPEN FOR

BUSINESS F Australia’s got talent, and McDonald’s is on the search for individuals with business nous, commitment, and the enthusiasm required to work in a fast food environment. Oh, and access to quite a bit of money. Sarah Stowe spoke to franchising manager Bert Cotte about what’s involved in signing up for a McDonald’s franchise

8 | FRANCHISING MAY/JUN 2012

irst up let’s dispense with the myth that you have to be within the McDonald’s business to invest in a franchise. Says Bert Cotte, “You don’t need to be within the system. Last year we had 12 new licensees who joined our system and seven of those came externally.” New recruits have included corporates, franchisees from other systems looking for a next step and even an environmental scientist. Cotte took the first step in showing that McDonald’s doors are open when he fronted the fast food giant’s stand at the Sydney Franchising and Business Opportunities Expo in March this year.

WWW.FRANCHISE.NET.AU

“We’ve probably seemed a bit big and scary to people out there. We’re really just searching for some new talent, some new business acumen, people who’ve had success in other industries, whether it’s in a corporate environment or someone that’s run their own business.” And the type of business background isn’t important, he adds. “It’s really about the business capabilities someone brings to the table, it doesn’t matter, to an extent, where they’ve applied it, we can tap into that. “We’ve always had an appetite for talking to people, we need that to continue to evolve the business. A lot of our innovations in the

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Inspire|Interview

business have come from licensees, so we will always need fresh ideas. Some of those people will end up in brand new sites in regional areas, some of those people will buy existing sites from franchisees, so there’s a bit of succession planning in there as well. “No-one’s going to be around forever, so we want some options in the pipeline to be able to allow people to exit the business when the timing’s right for them.”

“We have a really good culture and at the core of it our financial returns are good and so our franchisees get healthy financial returns.”

The costs

So what does it cost to invest in a McDonald’s restaurant? “We’re looking for applicants to have upwards of $800,000 in cash or equity they can easily liquify, to have that money

We’re really just searching for some new talent, some new business acumen, people who’ve had success in other industries, whether it’s in a corporate environment or someone that’s run their own business Cotte admits that it can be hard for franchisees who have committed to McDonalds’s to walk away from the business; perhaps even more so when you consider the franchise agreement is for 20 years and a typical tenure will be more than 15 years.

available in 12 months. “To open up a new restaurant, obviously McDonald’s builds the restaurant and owns the land, and so what we call the equipment package is circa $1.7m. It’s obviously upwards of that if you’re looking to buy, in most cases, into an existing restaurant so we work with banks in having a borrowing ratio of 25 percent to 75 percent.” That means a franchisee has to have 25 percent of the total investment; McDonald’s is “not comfortable” with further borrowing that will restrict the franchisee’s ability to service the debt or limit the expected re-investment in the restaurant. It is also imperative that the franchisee sees a healthy financial return for themselves.

The substantial cost of the business investment on one hand is matched by a substantial investment of time and effort with the process of selection and training that a successful applicant will undergo. Cotte admits it requires a high level of commitment from a potential franchisee.

The process

Signing up is a 10 step selection process which takes on average three months. “It’s a robust process to give both parties the opportunity to understand whether the partnership is right for both,” explains Cotte. He believes the most valuable part of the process for the applicant is the meetings with a minimum of three existing licensees. “We also get the applicant to work in a restaurant for three busy days (Friday, Saturday and Sunday). We see their energy levels, see how they develop over the three days. They get thrown in at the deep end. It’s a great opportunity to get a feel for the dynamic, fast-paced nature of our business.” The process also includes a set of interviews with Cotte, field managers and accountants who will assess the franchisee’s financial acumen and talk about the business, about how McDonald’s reinvests and franchisee cash flow; and there is also one day of psychometric testing. When other franchise systems offer training periods varying

What makes McDonald’s work?

Bert Cotte

10 | FRANCHISING MAY/JUN 2012

Bert Cotte’s top four reasons for McDonald’s continued success: 1. Focusing on why our customers visit our restaurants - so making the food as if you’re going to eat it yourself, providing friendly and efficient service, having a clean kitchen, dining areas and restrooms 2. At the heart of our business is what we put into training, motivating and developing our people at all levels 3. A balanced approach to the split of financial returns to the franchisee and franchisor 4. Work hard, play hard. All involved in the business put in a huge amount of effort to execute to a high level. It’s important to celebrate the success achieved in memorable ways

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from a few days to six or eight weeks, McDonald’s tops the list with a nine month commitment – and that’s before franchisees have signed the agreement. “They come into a training process, nine months, that’s nine months unpaid,” says Cotte. Training is still considered part of the evaluation process, so what’s the likelihood of someone

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

Pa ge

McDonald’s aligns franchisees with a site that suits

going through the nine months training process and not being accepted? Unlikely, Cotte insists. “We would not allow someone to continue to immerse their time, energy and focus on the opportunity if we weren’t positive that they are on the path to become a great licensee. “It’s important for franchisees to learn about the nuts and bolts of the business from an operational point of view, how to make a cheeseburger, how to E x p mop the dining room, through to our systems that help you to train and manage your people, from a scheduling point of view, then moving to the topline, how do you manage cash flow, growing the business profitably, how do you manage insuring your business, how do you manage paying your BAS and super and all those sorts of things. 1 9 / 0 4 / 1 2 , : 3 0 PM “We expose you3 to many people who can help you

understand all those levels. Hopefully you’re as prepared as you can be after nine months. We don’t put those steps in just to be difficult, just to filter people out, it’s more a case of preparing people to be successful as a licensee.” While an applicant is in training, the franchisor will discuss possible locations to align a site with the franchisee’s capability, equity position and flexibility to relocate. This could be a new or existing store. “It’s r t F r a n c h i a 20 year commitment, so the type of restaurant, and how it suits the new franchisee is really important,” says Cotte. Is there a tendency for applicants to skim due diligence, assuming if it’s McDonald’s it must be good? Cotte admits, “Having worked for a few different franchisors in my career, I have sometimes been surprised as to how much the applicant doesn’t know about the

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FR.MAYJUN12.PG014.pdf

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Inspire|Interview

FACTS AND FIGURES business opportunity before signing the agreements. I can see how the excitement of going into business with a successful partner can override the level of research someone does.” But at McDonald’s franchisees will only move through each stage of the selection process if they prove knowledgeable about the business and understand how they can grow within the system. “Applicants should be conscious that the decision to partner up is as much theirs to make through

That was a question I got asked a lot at the expo,” Cotte reveals. “We have 257 licensees and some have passive investments, but no-one has another business venture. Our business is simple but involved; we need people that are 100 percent committed. We only like hands-on. Our business works on [making] a little bit on a lot of transactions. If someone doesn’t fine tune it they won’t get the returns.” Staff are operationally close to the business, the vast majority of the

257 licensees across Australia One Australian licensee has 11 restaurants 100+ operators have three stores or more 22 percent of restaurants are corporate owned

LICENSEE COSTS Ongoing monthly payments: Royalty of 5% on gross sales Base rental plus percentage of sales Minimum of 4% advertising and marketing contribution

on various committees to work through innovation and issues in our business. “Mentoring of franchisees is driven at all levels. We play a part in pairing up both new and experienced franchisees with individuals who will strengthen their business capability. “Our business model works with our franchisees driving the business from corporate staff has come from within doing their own due diligence, as it is the the front. They are in their restaurants the restaurants. So people understand franchisor’s decision,” says Cotte. leading and developing their people, what it means at an operational level and knowing their customers and local to introduce new ideas, that’s why new community. We are also very involved initiatives are designed with operational Commitment also equates to total in the business at an operational level. implementation top of mind, he says. attention on the business, once a A D _ F R MA D MA Y _ 1 2 . p d f Pa ge 1 1 4 / 3 / 1 2 , 9 : 2 0 AM Everyone stays close to operations to “Consultation is strong within our franchisee is running their own ensure that we execute brilliantly.” F business. Franchisees have representation restaurant. “Can I own another business?

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Inspire|Franchisor

HAIR S N O I S N E EXT What better way to celebrate 20 years of business growth than with a new online retailing platform and strong plans for expansion both here and abroad? The founders of Hairhouse Warehouse share their excitement

We want to make it 16 | FRANCHISING MAY/JUN 2012

lot can happen in 20 years. For franchise Hairhouse Warehouse, it has involved the opening of more than 130 stores across the country, the initiation of over 100 franchisees and the evolution of a brand from a single store in Knox City, to a huge network of hair and beauty one-stop shops. Tony Lattouf, who co-founded the business with brother Joseph, remembers when the pair dived into business ownership, first with the Lattouf salon brand, then with Hairhouse Warehouse in 1992. “We opened our first salon in about 1983 and that was a Lattouf in Doncaster. We had no customers. We were both young businessmen. I used to walk out in the mall and say to a lady or gentleman ‘Excuse me, my name is Tony, why don’t I give you a complimentary wash and blow WWW.FRANCHISE.NET.AU

wave?’ and they’d think I was trying to make a pass at them,” he says. Unlike Lattouf, Hairhouse Warehouse, which first opened in Knox City, boasts a huge range of haircare products, with the focus as much on providing haircuts and treatments as it is on selling retail products. “We put everything under one roof: hair care, beauty products, nail, waxing, body piercing, spray tanning, hairdressing – and people would go there and buy products that are value for money. It was a new experience in hair and beauty,” says Tony. And after 20 years, the franchise, which last year claimed the Established Franchisor of the Year award at the Westpac FCA Excellence in Franchising Awards, shows no sign of slowing down. It will be celebrating its anniversary by launching online retailing capabilities and is also in the process of assessing

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Hairdressing is one of the many beauty treatments on offer at Hairhouse Warehouse

opportunities for expansion overseas, with Singapore, America, England and Asia all being considered. But at the moment, like with many big businesses, e-retailing is first on the priority list. “Basically, we want to have a

website where people can go and are able to ask questions and to look at what a store has,” Joseph Lattouf says. “So online will definitely be a big part of where we’re going, but we’re going to do it with our franchisees, we’re not going to do it against them. We want them to be part of it so we can have the successes together. We want to make it easier for the customer to shop but we don’t want to disadvantage our franchisees.” The Hairhouse Warehouse team plans to launch the e-retailing facilities later this year, not only as an online shopping tool, where customers can have goods delivered to their

home, but also as a platform where customers and brand representatives can communicate with each other. But with these capabilities still in the planning phase, Joseph and Tony are currently focusing on getting franchisees on side. “It’s a very touchy subject and some franchisees could think ‘Oh my God my business is going down the drain and head office is going to take all the money’ but that’s not the case at all. Ultimately our main goal is to get the customers back into stores, so we’re really going to promote the salon side of it,” says Joseph. In order to maintain in-store visits and reassure franchisees

Support sells: a franchisee perspective Emad Nayef is a multi-unit Hairhouse Warehouse franchisee and is in business with his brothers Nic and Sam. He shares his thoughts on why the system works so well. HOW LONG HAVE YOU BEEN A PART OF THE HAIRHOUSE WAREHOUSE SYSTEM? 15 years HOW MANY STORES DO YOU HAVE? 10 stores HOW HAS THE SYSTEM CHANGED? Fifteen years ago Hairhouse Warehouse was a little known brand and concept, a small player in the industry. Today, not only is it the market leader it is also Australia’s fastest growing group of hair care and beauty salons. This growth has lead to a much larger group of franchisees and therefore a larger support network, the generation of new, inspired ideas and bigger buying

18 | FRANCHISING MAY/JUN 2012

power. As the number of stores has grown, so has the support from head office which now employs over 10 staff members in each department to assist franchisees in all areas of the business. WHY DO YOU BELIEVE THE SYSTEM HAS BEEN SO SUCCESSFUL? The Hairhouse Warehouse business model is so successful because of the flexibility it offers franchisees. In addition to having a full service salon and an extensive range of professional products, franchisees can diversify their revenue streams by providing additional beauty services

Emad and Nic Nayef (centre) at the 2011 Hairhouse Warehouse awards

including body piercing, eyelash extensions, spray tanning, nails and waxing. The franchise system has also seen success as the products and services it offers caters to meet the needs of a large audience - both males and females between the ages of 18 and 50. HOW DOES THE FRANCHISOR FOSTER YOUR SUCCESS? Hairhouse Warehouse’s franchisors are committed to the success of each franchisee, by offering extensive ongoing support in the areas of education and skills training, national advertising and local area marketing. Road support staff visit franchisees and help them to

WWW.FRANCHISE.NET.AU

meet their KPI’s, projected profits and assist with buying products. Every department such as marketing, accounts and IT all have head office staff to assist franchisees and endeavour to answer any questions within 24 hours. You don’t even need to be a seasoned franchisee. In the vital first year of operation, franchisees complete an accredited management program designed to equip them with key business skills needed to achieve success. New franchisees are also mentored on a oneto-one basis by a member of the operations team to ensure knowledge is fully understood and all business tools are in place.

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Franchisor|Inspire Hairhouse Warehouse specialises in retail and beauty serv ices

called DC Strategy, we’ve done that online retailing isn’t a threat two years of research and we’re to their bottom dollar, Hairhouse looking to see which countries we Warehouse will reward online can go to, which ones we can’t customers with in-store and which ones would suit our treatments when they make a concept,” said Joseph. purchase. The brand won’t be “We’ve had a lot of interest offering cheaper products online from the states and from Asia, either, but the same products, and the UK and the Middle East. the same prices that bricks and Hopefully we’ll have one country mortar outlets advertise. definitely signed up for 2012.” “We’ve made a strong Growth on the home front is commitment that our online philosophy: understand also on the cards for Hairhouse business won’t be in competition what you’re offering and Warehouse’s 20th anniversary with our stores. We can’t be love your job. and beyond, with plans to open cheaper because that defeats the Tony says, “We really 10 to 15 stores a year, until the purpose [and] the franchisees understand this brand, and franchise can boast at least 200 were happy and very excited when you really understand stores across the country. about how we are going to the retail component and the So with a very full plate of reward the customer with salon hair component, then one national and international store services.” plus one equals two. And openings as well as the launch Hairhouse Warehouse’s also, you’ve got to have the of e-retailing capabilities, the expansion to new international passion. We’re here every Lattouf brothers are excited about markets must also reassure Tony and Joseph Lattouf day and we want to grow what the next 20 years of business franchisees of the security of and see our franchisees be might bring. And while the brand bricks and mortar stores, as well successful. That’s what makes us will surely continue to grow and as the franchisor’s commitment to AD_ F ROUT NOV _ 1 1 . p d f Pa ge 1 1 3 / 1 0 / 1 1 , 3 : 1 5 PM really happy and keeps the brand diversify, the pair are staying the offline retail world. strong.” F true to their very simple business “We’ve hired a company

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Muffin Break in the UK

taste for

Jamaica Blue outlets

growth

Muffin Break and Jamaica Blue, sibling retail concepts at the FoodCo group (which includes Dreamy Donuts), are growing as global brands. And while that’s great news for the franchisor, there is more to successful franchising than an ever-expanding portfolio, says managing director Serge Infanti

“

Retail is about emotional connection,” says Serge Infanti. And while service is a key factor in creating an engaging environment, clear brand positioning is essential, he says. “We’re in the retail market and it changes every day, you’ll fail if you don’t keep the point of difference relevant. “We had become too homogenous with cafes, too close to the mainstream and about three years ago I wanted to get back to our points of difference. You have to evolve.” Infanti pinpoints what he sees as the differentials of the best known brands in the stable: Muffin Break is the only muffin café chain in the country with a focus on wholesome, natural ingredients, baked fresh: the coffee based Jamaica Blue has a more funky feel and

20 | FRANCHISING MAy/jun 2012

has won awards for its coffee blends. “Jamaica Blue is highly accepted, it’s an upmarket shopping mall offer and can get to 220 stores easily. “Muffin Break is a mall concept. It always surprises me that we have 220 stores across Australia/New Zealand yet there is still more demand. More than 250 stores though will mean taking on high-risk sites. “A lot of franchisors have growth for growth’s sake, they’re feeding the furnace. Our business doesn’t depend on this. We ask ‘Is it a great deal for franchisees? Is it right for the brand, is it strategic?’ I don’t need to grow numbers for ego, I’m more keen on looking at opportunities.”

Overseas expansion

So how will the two major brands fare in overseas development? Muffin Break is moving into India, and expanding further www.franchise.net.au

across the UK; Jamaica Blue will open in Singapore and develop its Chinese and Middle Eastern businesses. “I want to open in places that are strategically placed to ensure our brands are successful. In the growing economies – China, Singapore, India – there are young professional consumers. In India 70 percent of the population is under 35, they’re interested in international flavours. The Middle East is strategically well placed between Australia and the UK,” says Infanti. Muffin Break has built credibility in the UK market despite the hard economic conditions, he believes. “We’ve stopped just investing in the UK and now we’re making money. Finding franchisees is not a problem. After the GFC the Government underwrote 50 percent loans of small business with banks. It’s fertile

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ground for a good brand and we’ve had three years of fantastic growth, organic growth too. “Jamaica Blue will launch in the UK with a different strategy, in the better socio-economic areas in London. There’s a breakfast through to dinner offer.” Infanti does not have the US market in his sights. “I’m not sure it’s that closely aligned. They dine differently, have different coffee tastes. There’s a very strong restaurant mentality, and fast food mentality. It could be a black hole. “I don’t want to be everywhere and I Serge Infanti don’t want to do wrong by the domestic market. We can grow Singapore, China, Indonesia, UK.” The Singapore licensee has first rights on Indonesia and Malaysia. The Indian market has been divided into northern, southern, eastern and western regions. Muffin Break will launch in the north, relevant is pertinent in the overseas and after a few stores, the licensee has the markets too and predicts there will be option to take on the western region, and local differences such as menu changes, beyond. décor and marketing collateral. “We don’t go too fast. Options depend A D _ F R MR R S E P _ 1 1 . p d f Pa ge 1 1 5 / 0 8 / 1 1 , 4 : 0 6 “The success of overseas business is on performance,” Infanti says. based on mutual respect.” Along the way He acknowledges the rule of staying

there will be mistakes, he predicts, but the strength of the business partnership is not drawn from the security of a legal position but from mutuality. “Contracts are no comfort, it’s about relationships. If you have passion, understand the brand, you can make it work. It’s like a marriage.” So how will the three-brand business continue to grow in Australia? “Am I motivated by acquisition? No. Am I motivated by adding to the business? Yes. My acquisition strategy is not buying something I’m not familiar with. If there was a state based chain with

Contracts are no comfort, it’s about relationships. If you have passion, understand the brand, you can make it work. It’s like a marriage coffee that I know I could improve and grow, I would look at it. “My current portfolio is growing at five percent per annum. We have 350 stores PM and keep chipping away because we do what we know.” F

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Franchisees|Inspire

Buying a franchise is a little less daunting than jumping head first into establishing your own brand. This made the decision to invest a little easier for Ferguson Plarre’s young new recruits

YOUNG

BUNS

he average Australian in their 20s is probably just finding his or her feet in the world. They might be completing a university degree, returning from a working holiday or about to embark on one. Few of them are established business owners with plans to grow a mini empire. But that’s exactly what Diana, Laura and Frank Druda together with friend Stephanie Todio are doing as the new franchisees of Ferguson Plarre’s Brunswick store. The eldest of the bunch, Frank, is 29, with his two sisters Diana and Laura aged 26 and 22 respectively and Frank’s friend and accounting colleague Stephanie, is 26. Despite their ages, the four have a very

professional and pragmatic approach to their business, each with dedicated roles and responsibilities. Diana and Laura work in the shop full time while Frank manages the finances and purchasing, and Stephanie the marketing and advertising. Having a more hands-off approach to their store allows Frank and Stephanie to hold onto their full time accounting jobs, which is how the pair first met. “Getting into the franchise was something Frank and I always thought of as something to do outside our nine to five job, and it [accounting] has given us great experience in running a business,” says Stephanie. Frank agrees, and adds that while he WWW.FRANCHISE.NET.AU

Stephanie Todio

and Stephanie might not work in the bakery business as much as Laura and Diana, they are all equally invested in its success. “We’ve all got the same goals and ambitions,” he says. “It’s good that there’s four of us who want to drive in the same direction. It’s easier to delegate responsibilities and we’re not finding the pressure that we have to look after every area of the business. We’ve got trust in each other that we’re doing each of our responsibilities to the best of our abilities, because we’re all part owners, so we know that the care is going to be there.” Despite being new to the world of business ownership, the Brunswick team understand what it takes to operate a MAY/JUN 2012 FRANCHISING | 23

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franchise effectively and efficiently and have weekly meetings to ensure everything is running on track. “We’ve got an action list that we go through and that includes all areas of the business from who we’re going to order the milk from to what marketing strategy is coming into place next. Then we talk about things that need improvement and we add to that action list. We dedicate a

marketing and promotion and with the running of the business. They did good training at the beginning as well. My sisters worked in other stores for about a month or so, and they wouldn’t let us take over [Brunswick] until they thought we were capable of it, so that gave us some comfort in starting off,” says Frank. Add to that the fact that Ferguson Plarre was familiar to Stephanie and the

It’s easy with the Ferguson Plarre model because you get a lot of assistance from head office. They assist with a lot of marketing and promotion and with the running of the business Drudas, having grown up nearby, and person out of the four of us to take care of joining the system wasn’t as daunting as it and then each week we report back on investing in a non-franchised business. what action was taken,” says Frank. “It was in the area, so we knew the One of franchising’s unique selling market. There’s a store in Coburg so we points is the support offered to franchisees, grew up with Mum buying food there. and this is particularly relevant for this We knew their products and we knew it team of keen, green entrepreneurs. worked because that store’s been there “It’s easy with the Ferguson Plarre A U T O N A T M0 5 0 3 2 . p d f Pa ge 1 3 0 / 0 1 / 1 2 , 1 0 : 3 9 ever since I can remember. model because you get a lot of assistance “They just had the right model. from head office. They assist with a lot of

Druda Todio, Diana and Laura Frank Druda, Stephanie

We need to know the products but we don’t need to know how to make the products because it’s all outsourced from the factory. You just need the skills in managing the product, customer service and running the store. I think we have all those bases covered,” he says. Despite only taking the reins of their store in November last year, this young bakery team isn’t slowing down any time soon, Frank says. “Because we’ve got Diana and Laura both working there together, once [Brunswick] gets to a stage where it’s maintaining itself and one of them can run it, I don’t know why the other one can’t go and start another one. Then it can get to the stage where they’re just managing stores and we can have five or 10. That’s always an option. It’s not a short term thing but if it works and it goes well I can AM just see it escalating to more and more stores ... We’re quite ambitious.” F

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Two Tamworth franchisees share their tree-change stories

NEW ENGLAND

NEW LIFE M

ore and more franchise systems are expanding into country regions, giving the city-weary a chance to live a more relaxed life and still run their own business.

Steve McCarthy, Cafe2U

I didn’t want to raise the kids in the city. I was born and bred in Glen Innes, and I always wanted to get back there, but we were living in Erskine Park in Sydney and I was working in Rydalmere as a production manager for electronic systems, manufacturing for the defence force. I was managing a small team of 11 and when we were moved next to a bigger production team, I could see the writing on the wall. I was a customer of Café2U St Mary’s and in June 2010 the franchisee, Mark, suggested I buy a franchise. By January 2011 I had invested and started the business in Tamworth. If you’d told me I would have been running 26 | FRANCHISING MAY/JUN 2012

WWW.FRANCHISE.NET.AU

my own business, and not in Sydney, I wouldn’t have believed you. I had no experience. The independence is awesome. I expected 12 months of hard slog before seeing a profit but it was a lot quicker than that. And it’s a hell of a lot of fun, the banter with the customers. Both my wife and I were in the navy, and the discipline has definitely helped. You need to be disciplined to run your own business. It was a bit nervy to start but we had a bdm (business development manager) to consolidate in the first two weeks, and then I told myself, ‘it will work, you just have to work a bit harder’. I’ve signed up for five years and I’ve got plenty of scope. There are two competitors, who are independent, but I’ve got the superior product. Cafe2U has a very supportive network and that’s a huge advantage, and there’s more branding. There’s huge potential in Tamworth, I could split my run and there are areas of the town

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I don’t miss Sydney. I knew the country life, that’s what I wanted for my kids, everybody is more relaxed and easy going

Inspire|Franchisees

Steve McCarthy

where no coffee van goes. I do events too, particularly in the winter when I have six or seven day working weeks. It can be long hours. I have a permanent agreement with the kids’ union and league on Saturdays and Sundays. It’s quite lucrative. I don’t miss Sydney. I knew the country life, that’s what I wanted for my kids, everybody is more relaxed and easy going.

Andrew Castle, Oporto

Andrew Castle

you are located so now I’ve opened up New England, and I have first right of refusal for future stores - I’d like to have Armidale. A rural site is definitely for me. One thing I’ve learned up here is there is a different demographic, it’s so laid back. I see customers three or four times a day, same as in Sydney, but sometimes they just come for a chat. I know them by name, we’ve got a good rapport. Lots of people haven’t heard of us,

it’s not like Sydney. So we do taste tests when we send staff down the main street and we use it as a really good tool for feedback. It hasn’t always been plain sailing, particularly against other brands but once the customers come in the door, they come back.

EVOcities

I started my career in 2000 as crew at McDonald’s, then worked my way into management. I bought an Oporto store In New South Wales Evocities is a project geared to encouraging city workers to in Sydney in 2006 and I used to drive for relocate to one of the seven so-called cities of energy, vision and opportunity: Albury, 90 minutes each way from the northern Armidale, Bathurst, Dubbo, Orange, Tamworth and Wagga Wagga. beaches to the inner west. James Treloar of Evocities explains these are regional cities not rural areas, and I put my hand up when the company the population growth in all of them is above the state average. He describes the two wanted a franchisee to move to the year old initiative, funded by state and federal governments and private enterprise, country. It was something new, and I as “a tool to potentially change the impression of what’s happening west of the Great didn’t know what to expect. For me Dividing Range. People’s first impressions are poor. There are universities, galleries, this was an opportunity to own a driveperforming arts venues… and many franchises are present,” he says. through, with lower rent, something I A lower cost of living and the perception of a safer environment are key reasons A D _ F R J A N MA Y _ 1 2 . p d f Pa ge 1 2 8 / 0 3 / 1 2 , 1 1 : 0 1 AM wouldn’t be able to afford in Sydney. for people to move to these cities, he adds. Oporto offers sites based on where

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Memorable bracelets for grown-ups…the Pandora concept of personalised mix and match jewellery items has brought global success to the Danish brand that is now embracing the franchising model

CHARM

INITIATIVE C

ustomers have fallen in love with the concept of buying a simple bracelet and adding favourite links and jewelled items over time to create a personalised jewellery piece. And these customers can range from children spending their pocket money on a Mother’s Day gift, to a husband purchasing an item to mark a special occasion, or the wearer herself choosing which piece to add. “There’s a lot of gifting, about 50 percent,” reveals Karin Adcock, managing director of Pandora Australia. “Kids comes in around Mother’s Day and Christmas, with their pocket money. We’re in the same bracket as flowers or a bottle of wine.” The range has developed to include rings, necklaces and earrings, some featuring interchangeable bezels, and the latest addition is a watch collection. “There are a lot of wannabes and always will be but customers love us. Everybody can be part of what we are,” believes Adcock. There is no doubt in her mind that the integration and control that come from running a vertical business is a huge benefit to Pandora, which designs, manufactures, distributes, and retails its jewellery. The Australian business, which now employs 100 people at its northern beaches head office in

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Sydney, started wholesaling its highly recognisable pieces to independent jewellers. It still supplies a wholesale range, though increasingly the success of the brand is encouraging those independents to consider investing in their own Pandora franchise. When the company started introducing display cabinets into jewellery stores the idea of branding a four to six sq m concession area took root. It also provided the opportunity to develop the sales of its other, lesser known jewellery items such as rings. The strengthened branding paid dividends for the existing independent retailers. Since then Pandora has added concept stores to the mix and this retail experience is helping to drive the franchise development, says Adcock. “Concept stores gave us the chance to secure spots and truly understand retail.” In today’s retail landscape it is vital to create a retail experience that matches the customers’ expectations, she says. There are now company-owned stores in Sydney’s QVB, Hay St Perth and the GPO Melbourne.

Franchising

Now the future is being shaped by a franchise offer, developed in part as a way to expand the brand without overinvestment of capital into yet more company stores. The 80/20 corporate/franchised network is the right balance, Adcock believes. “We want to focus on the franchise network. We are using up capital to open chains. When you have franchise partners they have skin in the game, a manager is not the same as an owner operator,” says Adcock. While adding existing retailers to the franchise network is beneficial for the business – “It’s always

Investment costs range from $400,000 to $800,000

We are very clear that we are only successful if the franchisees are, we need to be always able to help them like entering a marriage, it’s a great advantage to know the retailers,” says Adcock – expansion isn’t limited to Pandora clients. Potential franchisees need passion for the brand, and are expected to present a 20- to 25-page business plan, including financials and present this to the chief financial officer, vice president of sales, vice president of marketing, franchise manager, and president. “We ask franchisees to do an extensive business plan, to work out what they want to achieve. To see whether they get it. We take it very seriously,” says Adcock. The system has been refined since

the early days of retailing, she says, and there are clear delineations of where responsibilities lie in the franchise relationship. And what’s on offer is a “relationship not a dictatorship”. “We are very clear that we are only successful if the franchisees are, we need to be always able to help them. It depends on them,” Adcock adds. To this end benchmarking is a core component of the business. “We’re a listed company so there is limited transparency of individual store results, but we can compare similar stores, basket size, conversion rates. Once a month we work on stores’ P&Ls. “We have given quite strong performance, given the market. “There is so much competition for the retail dollar, giving exceptional customer service is paramount,” says Adcock. To this end, four trainers work with retailers and training is conducted through online modules as well as in-store. High traffic centres in affluent areas prove the best locations for the stores, aimed at the 25 to 39 year old customer – but with a much broader reach thanks to its accessible product priced from $18 to $2800 (including diamond rings). Adcock says there are also opportunities for regional areas with lower customer demand, such as Wagga Wagga, to embrace the Pandora brand through concession stores. F

Styling the message The head office in Denmark directs the advertising creatives, ensuring a consistent message around the world. Sales promotions are created locally. When stores open the local area marketing includes radio, local tv, cinema ads, direct mail even boom gate ads, and banners. Franchisees are expected to participate in ongoing centre activities in their quarterly magazines and VIP events.

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Franchisees must be personable and enjoy helping others achieve their financial goals CEO Michael Russell

a personal

service A fresh approach to business can sometimes come out of a crisis. That was certainly the case for Mortgage Choice when it reviewed its business after the GFC

32 | FRANCHISING MAy/jun 2012

t was in 2009, when franchisee recruitment numbers were seriously struggling, that CEO Michael Russell and the rest of the Mortgage Choice franchise realised something had to change. “At the end of the financial year 2009 we realised that in that financial year we’d only managed to recruit two new greenfields for the year. In other words it really slowed to a trickle. So we realised that what we needed to do was reignite the recruitment initiatives that had previously done so well, because any franchise system and any business needs to be consistently injecting new blood into the system,” says Russell. In order to pick itself up from the economic woes of the financial crisis and attract this “new blood”, Mortgage

Choice went through a reinvigoration process that included rebuilding the franchise’s recruitment website and hiring a new franchisee recruitment manager. “We decided to employ a second recruitment manager and basically split the country up and that’s allowed each recruitment manager to become a lot closer to our people on the ground ... We needed to have a much closer relationship between the recruitment managers, our field marketing resources and our franchisees,” he says. The renewed focus on recruitment worked well, with 18 new greenfield sites sold in the financial year 2010, 19 in 2011 and another eight in the first half of the current financial year. “So we’ve effectively sold 45 new greenfields in the last two

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and a half years. In addition to that, what’s just as pleasing is that with the renewed focus on trying to attract some good quality people into the system, we’ve also increased our sales of existing franchises. That’s good because we’re a 20 year old system this year so it’s only natural to expect that we’re going to have retirements, and we have an obligation to assist those people retiring from Mortgage Choice in the sale of their franchise”. Keeping all members of the Mortgage Choice team happy is possibly the most effective way of expanding the business, Russell says, because nothing works as well as a personal recommendation. And franchisee sales overall are on the rise, with Mortgage Choice in the best position since its

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Friendly and professional service is paramount at Mortgage Choice

major restructure in 2009, when a number of multi-unit franchises decided to suspend some of their sites to focus solely on one. “As of the end of December we had 372 franchisees,” says Russell, “but it’s not all about franchise numbers. It’s about productivity and the good thing is that in the last six months we had a nice spike in productivity. With productivity we talk about the number of loan settlements per active loan writer within Mortgage Choice and that is starting to increase as well”. While Mortgage Choice doesn’t necessarily discourage

of others is that we’re in the services industry. This is all about individual personal exertion. We’re not selling a product from one store location, we’re selling a service and it really does come down to the competency of the indvidual and that’s challenging to replicate over to another marketing area,” he says. While being able to commit yourself entirely to the success of your business is a prerequisite for Mortgage Choice franchisees, actually having financial services experience isn’t. The franchise provides extensive training over a two

We can teach technical competency, we look for people that want to learn something new multi-unit ownership, Russell says that the franchise’s business model doesn’t lend itself to that style of management. “In this business it probably takes two to five years to build a greenfield to the point where you’ve captured significant market share within your marketing area – you’ve developed a significant marketing presence, you’ve developed a competency in running a business – to then look to buy a second franchise. “There are some people who have been able to transition into multiple franchise sites and some people that haven’t. The difference between our franchise system and a lot

year period and looks more for the right personality traits than qualifications. “Setting aside that they need a reasonable amount of working capital, the main requirement is that the people are personable and not only enjoy working with people and enjoy helping people to achieve their financial goals, but that they interact well with others and display the right personality traits. We can teach technical competency, we look for people that want to learn something new,” says Russell. “So it’s that acceptance that they’re going to go on a fairly steep learning curve and they’re looking forward to it.” F

and enjoy every day

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

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a case of

The chain is keeping up with home fashions

déjà vu Investing in a Snooze franchise was an easy decision for John Saunders – he’d done it all before

he opening of Snooze’s Noarlunga store was a case of coming home for John Saunders. John bought into the business in late 2011, and when he opened the doors to his new South Australian Snooze store in December he could be forgiven a feeling of déjà vu. “I’ve been in this business for 43 years, first as an independent retailer. Then I joined Snooze for the first time,” John explains. After operating a successful Snooze outlet for five years in 2001 John returned to being an independent owner/operator, transforming his existing shop into the Noarlunga Sleep Centre. But despite the freedom of retailing under his own banner it proved a hard slog. “In reality you miss the credibility of the brand, the exclusive product, the levels of service. Once you’re there doing it all by yourself, it just gets too much. You can do it when you’re younger but it all changes when you get older.” 36 | FRANCHISING MAy/jun 2012

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Snooze has moved with the changes in retail

After eight years slogging away at the business, John was drawn once again to the support and bulk buying power that comes with being part of a chain, this time joining the Beds R Us network. With more support, advertising spend and access to exclusive product, John enjoyed the experience as a Beds R Us store, but before too long found limitations in stocking just one brand of merchandise. “Not everyone wants to buy a Holden,” he explains. “The frustration of the lack of variety on the shop floor meant that we were less likely to be able to cater to customers’ individual needs. I knew it was time for a change.” It’s said that timing is everything, and so it

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A KOALAKRANE FRANCHISE GIVES YOU: UÊ UÊ UÊ UÊ UÊ UÊ

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PHONE RICK GARRITY www.koalakranefranchise.com.au

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

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and his family are already keen to take on that are appropriate for your area. What proved for John, as this was when the more. “We’re so pleased with things, that, sells in Adelaide doesn’t necessarily sell in Snooze franchise network development only a month or two in we’ve already put Melbourne.” manager Alistair Browne gave him a call. our hands up for a second site when it In the brief time trading as Snooze, Alistair Browne heads up Snooze’s becomes available in South Australia. I’ll be the difference has been tangible for John aggressive strategy to grow the number of staying with Snooze.” F and his team of four at Noarlunga. “In franchises to from 70 to 100 by 2014 and our short time back as part of the Snooze he’d been keeping an eye on the activity at family, the results have been fantastic, the Noarlunga store. There were only two we’re experienced a real sales spike. stores in South Australia as of late 2011, Managing director Simon Beaty says The support we’ve received has been and knowing of John’s history with the “It’s very satisfying to look at a story overwhelming – from the store fit out, company, he approached him to return to like John’s at Noarlunga, where we intensive staff training, the revamped the Snooze family. kept an ongoing awareness of the website, along with Snooze’s internal John says it felt like it was an obvious market and identified the right time processes and marketing support, I just decision: “Alistair was so professional to make our move. To not only hear can’t speak highly enough of the team.” and presented such a good business case, feedback from John and his team, The biggest endorsement for the Snooze it just felt like the right time to make the but to look at the success from a sales franchise program has to be the fact that, move, and of course to the right place.” perspective, it’s very heartening.” even as one of the newest franchisees, John When he joined Snooze in the 1990s the company was at a very raw stage, John says. “Since then there’s been a change of management. And everything in retail has 1. First of all you have to have a brand above the door become more difficult. You would think 2. Then you have to have a great website – and Snooze does, with good product, it’s just a bed, but technology is more price and range advanced, retail has changed. Snooze has 3. With the franchisor you need to be able to run a good catalogue campaign complied with the changes. Snooze is fresh, and media promotions up with fashion, up with the technology. uniform A D _ F R C A F MA Y _ 1 2 . p d f P a 4. g eStores 1 need 3 / 0to4be/ as 1 2 , 3 :as2possible 1 PM “When it comes to merchandising, they 5. Then it’s service, service, service. pick a brand and you can choose models

A heartening tale

John’s top five tips for successful retail

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DELIVERY

DUTIES Crust Gourmet Pizza 40 | FRANCHISING MAY/JUN 2012

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What does it take to create a successful pizza franchise? A great pizza menu of course, strong branding, superb customer service, a top location – and staff. What support do franchisors offer franchisees when it comes to staff management, asks Sarah Stowe

taffing issues crop up in conversation as the most challenging aspect of business ownership. So how can a franchisee best handle recruiting and managing a team? Five pizza franchises share their approach to supporting franchisees with this issue.

Pizza Hut

This business is predominantly home delivery and takeaway, though across the Australian network there are 14 restaurants, explains Andy Masood, head of development and supply chain. When franchisees undergo their initial eight week training, part of the education is how to interview staff and what questions to ask. Once a new store opens with a fresh franchisee at the helm there’s a trainer on hand. Franchisees are under close guidance for two weeks, explains Masood. “It’s real world training, and there are more experienced people around.” That means staff as well as franchisees can get to grips with the operating systems of Pizza Hut. Staff training is all online and employees complete online modules.

It’s tracked and visible to operations and HR. “We have casual staff because the QSR [quick service restaurant] industry is a business very much designed around customer convenience. From 5.30 onwards is the peak, dinner time rush; and a business has to ensure staffing for this,” says Masood. With a network the size of Pizza Hut, there’s plenty of experience in staff management. The franchisor has distilled its learning and established management tools online. “We invest heavily in a digital platform. New point of sale takes us into the 21st century. There are two aspects – order taking is very efficient, and the back end is sophisticated: it records product sell, customer frequency, busy half hours.” The resulting information produces a weekly performance on the basis of the previous three weeks, and suggests an ideal roster, but with the facility for the franchisee to adapt it to changing circumstances. “It gives the franchisee the opportunity to intelligently judge,” says Masood. For instance, in wet weather, people order more deliveries rather www.franchise.net.au

It takes teamwork to bring pizza to the table Pictures: Domino’s and Crust Gourmet Pizza MAy/jun 2012 FRANCHISING | 41

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than takeaway, and that alters the staff requirements. There’s no doubt the QSR industry is heading towards convenience and at Pizza Hut about 40 percent of business is online or mobile.

The online segment of our business is fast growing as the customer is looking for a higher degree of convenience

Domino’s trains a franchisee’s sta ff

“Pizza Hut online sales mix is almost at 40 percent and we anticipate that this number will increase to 50 percent in the near future.”

pizza hut Store investment: $300,000 to $320,000 Franchise term: 10 years with one 10 year option Hiring period: one to two weeks prior to opening Number of staff: from seven to 20

“The online segment of our business is fast growing as the customer is looking for a higher degree of convenience. Especially There’s no set formula for staffing when it comes to delivery Pizza at Pizza Inn, a small franchise Hut is one of the leaders in the group based in Sydney and business space and is continuously the NSW Central Coast, it’s A D _ F R P WO M A Y _ 1 2 . p d f Pa ge 1 4 / 0 4 / 1 2 , 4 : 0 3 PM investing in technology to improve dependent on the size of the store the customer interface. and the population, franchise

Pizza Inn

manager Ron Browne explains. “Often there will be one pizza maker, one making bases, two makers if busy. There may be other staff on phones – we have two to four phones in each store. “Then there are the delivery drivers, and a general hand. We encourage franchisees to man the store so it makes money. “Making pizza isn’t rocket science,” says Browne, who joined the 35 year old business to help expand the eight-strong chain. The franchisee recruits their own staff using online facilities to manage job applications, and is then responsible for training. A recent addition, a new tool in the education process, is a training DVD covering aspects such as

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Our specialty is understanding the complex and assisting franchise groups to communicate with internal and external customers in a clear and concise manner.

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www.franchise.net.au

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

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food hygiene. This ensures a consistent message, and the voice of the franchisor Rudy Arbolino, is delivered directly to staff. Initial staff employment is on a casual basis; regular shifts come to those who prove

demand; ideal if the franchisee is new to business management. Typically at Pizza Inn outlets early evening requires set up and prep; from 5pm onwards staff are taking orders on the phone; the peak period is 5pm to 9pm.

Franchisees could be employing between 20 to 30 new staff members across the roles in the business and it’s necessary to be able to judge which role suits Friday is the biggest trading themselves, with training focused night, followed by Saturday, with on customer service and phone Thursday and Sunday equal in communication. Even delivery terms of business. drivers will need to undertake training. “The delivery driver is the first pizza inn visual contact, so needs to be neat Store investment: varies according and well presented, with the food to site; $80,000 to $200,000 and vehicle in good condition,” Franchise term: typically linked to explains Browne. premises lease The franchisor provides Hiring period: four weeks before AD_ F RE COJ AN_ 1 2 . p d f Pa ge 1 1 / 1 2 / 1 1 , 4 : 2 6 PM a guideline for setting staff launch numbers to match business Number of staff: minimum of four

44 | FRANCHISING MAy/jun 2012

www.franchise.net.au

Pizza Capers For many franchisees, running a business might mean employing staff for the first time. Franchisors are often able to assist in this process. Damien Davies at Pizza Capers says the franchisor will draft an ad for staff for the franchisee. Pizza Capers will go through the recruitment program for in-store staff as well as discuss the relevant industry bodies that franchisees should refer to for advice. “We don’t employ the staff, we go through the interview technique, and how to attract the right staff members,” he says. That’s important, with up to 100 applications for each role. “It’s like working in a surf shop, people want to work for a classy brand. It’s about working out where people are right for each role. Franchisees could be employing between 20 to 30 new staff members across the roles in the business and it’s necessary to

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be able to judge which role suits.” Getting the financials right involves the correct ratio of staff. The human resources department at Pizza Capers can assist with the staff roster. “We have 16 corporate stores so we know how the business runs, and we’re pretty accurate about turnover,” says Damien Davies. “The BDMs [business development managers] are out all year round, in each shop every two months. They can see what’s happening or not happening. Franchisees need to keep labour costs in check, and the BDMs take sales, cost of goods and labour into account.” Training at the pizza franchise is not yet conducted online, but this will change, says Davies. While some stores have dining, the set up overall is an equal split between pick-up and delivery. The Pizza Capers business was recently acquired by Retail Food Group, franchisor of brands such

as Brumby’s Bakeries, Donut King and Michel’s Patisserie.

pizza capers Franchise investment: $280,000 to $350,000 (including franchise fee and training fee) Franchise term: One five year term with one option to renew Hiring period: two to three weeks before opening Number of staff: Up to 15 staff members

Crust Gourmet Pizza In the initial staff recruitment stage of a new franchise set-up, Crust will assist franchisees

A Pizza Capers restaurant

with protocol, devise an ad and provide templates for the interview process. With staff on board, training

A lot of people come in to this and it’s their first foray into business, so it’s quite daunting...we put the ads in, do recruitment with them, run all the training in stores, both theory and practice

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Getting the rostering right is key to cost management

for the opening gets underway. “Often there’s a new store support link, a helping hand from a neighbouring franchisee to the incoming franchisee. This provides greater camaraderie and solidifies the Crust name in the region,” says co-founder Costa Anastadias. “What often happens is two to three nights training in buddy stores. We are trying to ensure at least six people [in the store are] familiar with the flow, the system, pizzas.” Online videos take new staff through occupational health and safety procedures. Franchisees aren’t on their own monitoring staff performance in the very early

– staff can then log in and register their hours. A large portion of staff is Gen Y and this presents its own challenge for franchisees; one of the biggest issues with employing students is managing a roster around Christmas and exams times. “It depends how involved franchisees are with staff – the more involved have great relationships,” says Anastadias. And of course young casual staff are transient. “If we can hold on to them for six to 12 months, we’re happy,” he adds. Twice a year, there is a store audit by the FSM who will be looking at

Often there’s a new store support link, a helping hand from a neighbouring franchisee to the incoming franchisee. This provides greater camaraderie and solidifies the Crust name in the region

Franchise & Commercial Lawyers

46 | FRANCHISING MAy/jun 2012

days. There is a field support manager (FSM) on hand for the first fortnight to ensure product quality and service. Management tools at the Crust franchisee’s fingertips include online rostering with an interactive element: it messages staff using SMS at the beginning of the week www.franchise.net.au

productivity levels across the board and put in action a plan to correct any imbalance. They often find labour costs are too high, says Anastadias. “Within the first six months they make adjustments and mostly these are very minor. We maximise the roster but this is not a

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cookie cutter – each store is different, with different busy times. Friday night is the biggest night, but one store does all day trading.” It’s inevitable that with the cost of labour at a high level franchisors are looking at digital platforms and ways to reduce their staff count, says Anastasiadis.

Crust gourmet pizza Franchise investment: $375,000 to $415,000 Franchise term: 15 years Hiring period: Four to six weeks ahead of opening Number of staff: Approximately 12

Domino’s

Rian Bell, franchise development manager Australia and New Zealand, says “A lot of people come in to this and it’s their first foray into business, so it’s quite daunting.” The complete eight week training program at Domino’s includes staff recruitment and training advice, and the franchisor will help with recruitment and initial training; this is particularly beneficial for franchisees buying a Greenfield or brand new site. “We put the ads in, do recruitment with them, run all the training in stores, both theory and practice.” Stores always launch on a Monday and for the first two weeks there’s someone

Pa ge

there to help staff and assist with training. When franchisees are building the business in the early days, getting to grips with the busy times can be a challenge. “We know people need a bit of extra labour to get the routine going,” says Bell. But it doesn’t take long to recognise a roster over-filled with staff and that’s not a viable option as the business develops. Of course if a franchisee is putting in the expected 50 or 60 hours a week, that’s saving the cost of a manager, he adds. Ongoing monitoring of a business’ profit and loss statements will reveal whether or not the franchisee has achieved appropriate rostering. Domino’s benchmarks performance and the support team will be looking at the franchisee’s P&L. “All franchisees are in a marketing group and we get senior franchisees to share their P&Ls too and how they achieve the numbers,” says Bell. “If a franchisee needs help it’s just a matter of picking up the phone.” F

domino’s Franchise investment: new store $450,000; existing store $250,000 to $1 million plus Franchise term: 10 years Hiring period: two to three weeks before opening No of staff: 20 to 30

Legislation When it comes to following the industrial relations legislation, multiple awards are a feature of the hospitality and retail sectors. There have been cases of the Fair Work Ombudsman fining individual franchises in the retail sector for incorrect payments – there’s a lot at stake for a franchisee. What help can they get from the franchisor? Staying on top of changes to employment law is part of a franchisee’s responsibility. But there’s assistance at Crust from head office. “We have documentation, the HR director sends guidelines to franchisees, will advise them on what the legal changes are. We send out newsletters about penalty rates, changes in the workplace. It keeps franchisees in the loop,” says Anastadias. At Pizza Inn, Brown says “We give franchisees guidance about fast food awards, but it’s up to them to understand the minimum requirements.” The message is the same at Pizza Capers. “We’re under about 200 awards, [we]can’t go through them. We put them in contact with NRA [National Retail Association],” says Davies. There are different age brackets, different hours…we advise them that some businesses are getting fined for not paying the right wages in the past. We’re making sure all our franchisees are aware….we pass on as much as possible.”

www.franchise.net.au

MAy/jun 2012 FRANCHISING | 47

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Cappuccino Xpress

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

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

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

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Jims Electrical

The e Team

UK Central

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

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

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

͞ ŵ Ɖ Ă

Sergios Cake Shop

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

Ǉ Ɛ ƚ

made by you ^ƚƵŋĞƌƐ

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

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

www.thefranchiseshop.com.au

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1 EXPERIENCE EXP X ERIEENCE XPE E

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

AN ND D EX XP PERTISE AND EXPERTISE

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

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Abode Design and Construct

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

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

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

Urban Burger

Taste of Europe

Snorepro

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

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

Jumping J-Jays

Marrs

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

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

Duster Dollies

>ŝƩůĞ /ŵĂŐĞƐ

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

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

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

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

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FR.MAYJUN12.PG050.pdf

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The fitness sector continues to shape up with business models to suit different target markets. Sarah Stowe outlines whatâ&#x20AC;&#x2122;s on offer and what kind of franchisee the systems attract

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he fitness and gym market is predicted to attract a $1.67 billion spend in Australia by the end of the financial year 2012, reports analyst firm IBISWorld. And although growth has slowed as consumers search for affordable options, the sector is still on the rise with a 2.4 percent increase in revenue expected this year. Whether the service is all-hours access or a female-only training environment, niche markets are where franchises have made their mark. And as different set-ups attract different consumers, these business opportunities appeal to the various investment levels, skills and passions of potential franchisees. So which is the right franchise for you?

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Fitness|Opportunities

24/7 CLUB – FAST GROWTH – LOW STAFFING Anytime Fitness

Australian society has been moving towards instant gratification, says Justin McDonell, who with his sister Jacinta McDonell-Jiminez, is the Australian master franchisor for this global brand pioneered in the US. Customers want instant results and convenience is key. Anytime Fitness targets people who had been gym members when younger; what attracts them is the convenience and the non-competitive spirit. “We offer a facility that has everything you need and the person who joins you up is running the club. We sell contracted memberships. We want people to commit to a lifestyle so we sell the lifestyle component,” says McDonell. A new product that fits with this strategy is Anytime Health. Through the online portal it offers diet and nutritional information and there’s access to a personal trainer who can recommend activity levels. The program has been in the US for 12 months and launches here in July. Also on the cards is virtual exercise, a sort of fitness on request system where kiosks set up on timber-floored studios provide programmed exercise for personal or group training. Core stability programs are also coming on board as options franchisees can choose to adopt, and have personal trainers run them. McDonell emphasises that this is a simple business model with easy to manage expenses; the format allows for low staffing levels [two staff] and regular income: club membership averages at 1000 with monthly fees starting at $55 but varying from club to club; the joining fee is $99, an access key is $59. Franchisees can dial in remotely to keep track of the business.

Anytime Fitness’ Jacinta McDonell-Jiminez and Justin McDonell

A typical franchisee is either male or a couple, mid 20s to mid 40s, who has possibly owned a franchise before, or come from a corporate background, is looking for additional income or has a passion for health and fitness. Sites start from 300 sq m and go up to 500/600 sq m. Out of about 400 territories 310 have been sold. Expansion in Melbourne has been significant; in Queensland where competing homegrown brands have more of a profile there has been less growth – until now. “We have a

We offer a facility that has everything you need and the person who joins you up is running the club better opportunity now though we might suffer from branding competition, but we can offer brand new facilities,” says McDonell.

FEMALE CONSUMER – NEW MODEL – FITNESS QUALIFIED FRANCHISEE EnVie

Australasian Franchise Group chief, Dave Hundt, is excited. The business is launching a whole new brand, EnVie Fitness – a name which in French means ‘in life’. EnVie is a female only brand, and Hundt, the managing director, is confident it’s shaped to suit. “We’ve taken the best bits of what’s available, extended hours (5am to 10pm), child minding groups and personal training.” Like the burgeoning convenience models that >> continues on page 52

A women only zone at EnVie

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have inspired some of the offer, the franchise has low staff requirements and will be unstaffed during certain periods. But Hundt has stopped short of following the trend for constant access. “We don’t believe we need to be 24/7.” The system works on very low cost, no contract membership. Membership of 300 to 600 people for studios makes it a viable business, says Hundt. “We are looking to attract personal trainers, people with a fitness qualification who are looking for a business model to further their experience,” says Hundt. EnVie Fitness will launch in May with a franchised site in Wollongong. “We have sites for less than $100,000 in comparable locations to Jetts [Fitness] and Anytime [Fitness].” Typical sites will be strip malls with all-important foot traffic and parking at hand. The studio size will be 150 to 200 sq m and the venues will have an

We are looking to attract personal trainers, people with a fitness qualification who are looking for a business model to further their experience extensive range of cardio and strength equipment from international brands that have been designed for women. “We want to make sure every single member gets a great workout every time, gets the support, gets results, has the convenience and access to child minding.” EnVie is targeting a broad female clientele (from 16 to 80) who prefer real gym equipment in a nonA D _ F R S MI MA Y _ 1 2 . p d f Pa ge 1 2 8 / 0 3 / 1 2 , gym environment. “We see an opportunity in women’s fitness; a

52 | FRANCHISING MAy/jun 2012

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large percentage of customers at 24/7 [gyms] prefer female only [clubs]. We feel with a suitable offering, we’ll do extremely well.”

Full service club – female consumer – established model Fernwood Fitness

Established by Diana Williams in 1989 as Fernwood Women’s Health Clubs this stalwart of the fitness industry last year underwent a brand refresh. Says franchise manager Maree Rogers “Charcoal and cheeky pink has given the energy back into the clubs, it’s very invigorating. Our marketing has been given a similar slant. We always project we’re serious about fitness, we want people to achieve their results.” The clubs have equipment and classes and offer both fitness and food coaching but Rogers stresses the focus is not on being skinny. “The point of difference is about the culture, about the community we create. When we look at prospective membership it’s not about their fitness, but them as individuals, how they feel about themselves. Other people cannot copy what we do. Our appeal is not just the wow factor of the environment.” The mature woman has traditionally been the core customer at Fernwood but that is changing: the greatest demand for membership has come from women in their 20s. More changes may be afoot; the so-called 24/7 model of gyms, providing access at all hours to consumers, has been the most dynamic in the sector, 1 0 : 1 5 AM and Fernwood has recognised there may be merit in extending its own opening times. Rogers says “We’ve

AD_FRLACMAY_12.pdf

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AEST

The more that’s “Said,” the more that’s “Sold!” Tell more – and sell more! – in 2012 with Said Creative Strategies. Whether it’s enhanced franchise sales or better communication with your franchisees, Said Creative Strategies has been boosting the bottom line of Australia’s leading franchised brands since 1993 from coast to coast. And now – after a rousing restructure – the best creative, marketing strategies, cost effi-ciencies and industry experience is within the reach of all franchisors, great and small. If the dream of having more “Said” about your franchise in 2012 appeals – leading to better sales and brand recognition – contact us today for a free Communications Audit*. We’ll make it a reality. Visit www.saidcreative.com, email dan@saidcreative.com or call 0431 380 051. *Limited to five franchised businesses that contact us before the next edition of Franchising Magazine.

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looked at ways of incorporating extended hours and access, offering a limited service and we are reviewing this. We do see it may assist some clubs.” There will be other changes too to the current formula, with further regional expansion expected into towns with a population of 50,000 or more (realistic rents rather than the expense of metro leasing is a particular appeal), and smaller clubs better utilising the footprint. The model has attracted members and staff as franchisees. But franchisees don’t need to be female; there’s an equal gender split. The cost is approximately $500,000 plus equipment lease.

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Multi-unit ownership is encouraged at Jetts

Jetts 24/7 Fitness

The Jetts 24/7 Fitness model has drawn considerable attention for its fast growth. Adrian McFedries, managing director, says “We’re in a very rapid mode and will have 600 clubs in Australia; we’ve passed half way. Our major focus is opening 40 to 50 clubs a year. The big shift has been the quality of the portfolio. “It may look as if we’re trying to grow as quickly as we can but location and the right franchisees are key.” A-grade locations mean good parking, access, prominent visibility, and a footprint of about 350 sq m. “We’re looking at what it will look like in five years – the rental commitments. What will the business model be in five years in terms of profitability? “There are hard and fast rules. The preparedness to say no is the strength of the business,” insists McFedries. The cost of a Jetts franchise is $500,000 to $600,000 for one five-year term with two options to renew. Franchisees are often profitable after three to four months, McFedries says. And there are high expectations of how they will develop within the network. “We’re bringing them in with the expectations of multi-club ownership, so we’ll only be introducing about 20 new franchisees.” One multi-unit franchisee already has 15 or 16 clubs.

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Fitness|Opportunities

“Our franchisees are an eclectic range of people, often not from a fitness background. They are typically white collar: bankers, teachers, business people. It’s a very interesting model with franchisees just working five to 10 hours a week. “Predominantly a franchisee visits clubs twice a week, looks after marketing, stays on top of performance. We don’t want a completely

Other people cannot copy what we do. Our appeal is not just the wow factor of the environment passive investor. We want thought leadership,” reveals McFedries. “Our whole business is built on freedom of choice, there are no membership contracts. We’re not putting classes in. We’ll keep to what we know.” McFedries reasons that the major attraction to the brand is the standard of operations - a club C 1 0 8 1 8 F r a n c h Ma g _ H P C . p d f Pa ge 1 7 / 0 2 / 1 2 , 1 1 : 0 2 looks as good after three years as it did after one, The story behind the fledgling franchise, She he says. Fitness is something of a personal epiphany.

She Fitness runs outdoor training

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

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

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

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on behalf of the franchisee by the franchisor. A franchise costs $9,950 including equipment and marketing.

Hybrid model – fitness qualified franchisee EFM Health Clubs

This model sits between a gym and a personal training offer and targets women in their 40s. A regular gym is good for people who know what they’re doing, says national business development manager, Greg Nunan. “If someone is unfit or unfamiliar it’s harder to get results. Personal trainers on the other hand deliver very good results, and retain clients, but are expensive. “Our biggest club is just 200 members and franchisee coaches know each member. Coaches float around sessions and charge on a cost per hour basis; 10 to 12 people at $10 per hour. “We do group training, indoors, and have top of the range equipment.

It’s interesting to see the dyanamics change when you’re training women only. Women feel more comfortable when it’s not a competitive environment

BED19420

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

bedshed.com.au

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Richard Garrard is the founder of the business. “Three and a half years ago I started this after my weightloss journey, I lost about 22 kilos. I was working for the government in an office job, and ended up doing bootcamp; I realised there are people doing something amazing to help others lose weight. So I did a personal trainer certificate 4 course, quit my job and transitioned to personal trainer. “My main interest was outdoor and I was training some of my wife’s mates after work. I started to think there could be something in this. It’s interesting to see the dyanamics change when you’re training women only. Women feel more comfortable when it’s not a competitive environment. “Our main service is specialising in outdoor personal training for women, whether in a group, personal, workshops or social, providing a supportive environment and enjoyable experience. The business can provide corporate training and fitness for schools too.” At the moment all three outlets in Sydney are company owned. Garrard is looking first to launch the franchise

Jump into bed with Bedshed

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

system through NSW but with interest coming from interstate the systems have been tweaked to ensure viable support. “How will we keep in touch? Webinars, video training, we’re making this more mobile.” A franchisee will have to be a certified personal trainer but can get assistance with this from the franchisor. And the qualification can be done in six weeks. “From the time of expressing interest to launching the location, if someone does this full time, they can get trained,” reiterates Garrard. Franchisees need more than anything the right attitude, should love outdoor training, have a passion for women’s fitness, and the goal of running their own business. She Fitness franchisees will work from a single location and build up the clientele within the agreed territory and available hours – negotiations conducted www.franchise.net.au

“We have four aspects: hospital programs for staff with a heavily subsidised membership; on site health clubs at schools – we put all our equipment in, outside school hours we run it for the local community; the standard suburban studio; and corporate support programs. This model will suit a personal trainer looking to run their own business, with a captive audience and no ongoing rent. Franchisees need $50,000 to $150,000 depending on space.

Gym format – investor franchisee Stepz Fitness

Co-founder Quang Tran says the majority of people in bigger gyms don’t

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want classes, and they use no more than six pieces of equipment. Offering a honed down model that doesn’t offer classes and doesn’t demand members sign up to a contract is core to the Stepz Fitness model. Membership is $40 a month, and attracts an equal number of men and women. “We have top equipment from Italy or the US,” says Tran. “We go for the best equipment we can.” Although the very first franchisee was a personal trainer, most can’t afford the turnkey cost of $450,000 (half of that is equipment costs), so Tran is seeing investors take up the franchise offer. Shopping precincts are typical locations where there is sufficient road and foot traffic. Premises are between 200 and 400 sq m. There are six stores already open, and 12 to 15 planned for this year.

LOW INVESTMENT LOW STAFFING Plus 24/7

A life changing experience was the foundation of this business. When John Fuller survived a near fatal car crash he turned to the gym and fitness training to rebuild his life. Then he set up his own gym in 1998 and brought on board ex-banker, gym owner and fitness consultant Nigel Miller. In 2009 the pair set up a franchise system based on the low investment, all-hours access model proving successful in the US and Asia - and a solution to the tightening economics of the GFC. The initial investment starts at $229 for gym equipment, fit out, access control, signage and marketing. For gym users memberships are contract-free and cost $13 a week. There are free fitness programs and optional classes on demand. There are now more than 30 clubs open or scheduled to open, and a target of 75 gyms to be open by the end of 2012. F WWW.FRANCHISE.NET.AU

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

Your Appliance

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For further information visit

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Printing & signage|Opportunities

The printing and signage industry continues to embrace the seemingly constant flow of new technologies, and the role of franchisees is changing. Many franchises are offering a consultative role, with franchisees assisting clients with their marketing needs. Danielle Bowling reports

PRINTING

PROSPECTS OS CTS D

igital. Design. Technology. Marketing. Consultation. These are all key words in the printing and signage industry, where the photocopier has had to make way for the rise of all things digital and online. Franchisees are now expected to not only manage their digital design and print offerings, but be comfortable managing and promoting B2B relationships.

Minuteman Press Anita Lennox, director

There are about 47 Minutemen across the country and almost 1000 worldwide.

The core of the Minuteman business is printing, but over the last year it’s shifted to become more of a marketing and consulting printing company. The shift is for us to become a lot more handson, people oriented with an understanding of what they want to do with their printing.

Do potential franchisees need any experience or qualifications? When you start with Minuteman you don’t need any experience or credentials. They actually fly you to America and run you through a training course. While you’re doing that Minuteman sets up

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Opportunities|Printing & signage

your franchise, and when you come back you’re ready to go. What personality traits do you look for in new franchisees? It’s not as easy as it used to be. You come into a very overcrowded market and you need to be relentless. You also need to be able to get back up

Most franchisees should be the customer relationship officer and have staff to do the printing and the artwork and keep going even though you might not be getting anywhere in the first month or the second month. And having an outgoing personality.

Anita Lennox

should be the customer relationship officer and have staff to do the printing and the artwork. They should be the face of the business and be the person that the client can call.

How has the industry changed What are the franchisee’s typical recently? duties? Our paper suppliers have gone To be a hand-holder for other A D _ F R V I P MA R _ 1 2 . p d f a ge 1 7 / 0 2 / 1 2 , : 5 6 PM through massive2developments. businesses. They canPsit in the They have drawn in and cut office all day but most franchisees

down all their specialty papers because the market isn’t going so well in the paper industry in Europe … they’re really minimising the range and offering. If you’re OK with selling what you’ve got then that’s not a problem but if you’re used to selling a specialty type of paper and it’s no longer available or the price of that paper has gone through the roof it becomes quite difficult ... But apart from that there’s really nothing that can affect the business. The model that Minuteman is built on is if you’re not getting the sales in you can literally go out the door and grab some more and bring it in. It’s not a hard process to go and get more business. What are the investment costs for franchisees? Approximately $200,000. Franchise fees are six percent, capped at $39,000 per month. There are no marketing fees as franchisees are

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

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expected to do their own, as each geographical location is different.

Mail Boxes Etc - Andrew Dalton, franchise development manager Currently we’ve got 38 outlets across Australia and New Zealand. Printing is one component of our

We want to increase everyone’s profits significantly and we want to ensure that everyone has a really healthy turnover

MBE has three different sales channels

mailbox, have a virtual office if need be, have their shipping requirements looked after and their high speed digital press.

business model. We also have What training is involved for new a shipping component and we recruits? also offer mailboxes, similar to There’s a six week training Australia Post. So our point of program that is part of a hands-on difference is that we have three induction process and there is also sales channels and our objective A D _ F R U N I MA R _ 1 2 . p d f Pa ge 1 7 / 0 2 / 1 2 , 3 : 4 6 PM classroom training which involves is to offer a total solution to SMEs, business planning, marketing so they can come to us, have a

strategies, marketing calendar development and strategic planning based on the evaluation of the individual market. [Before signing up a new franchise] We develop an area profile and once we’ve got that we’ve already done some demographic studies on the local area, so we can match up an area with an individual franchisee. If it’s an area that is highly concentrated with other printers and is highly competitive we probably want someone with a bit more printing experience, or if not, they know how to deal with a competitive market. So we’re setting our guys up for success. What do you look for in a potential franchisee? Someone that’s had small business experience would be helpful, but we’re finding that with companies downsizing of late, particularly banks, we’ve got some high to mid-level executives

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

Passionate about retail

Easy to Learn 5 week induction and ongoing training support

Be your own boss

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

Grow your equity

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Sites now available across

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Be part of an established brand Be part of United Petroleum’s

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and selling fast For more details contact Russell Desa at russell.desa@unitedpetroleum.com.au or phone: 03 9413 1594 Visit www.unitedpetroleum.com.au 62 | FRANCHISING MAY/JUN 2012

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The future of fuel in Australia

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

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

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

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Opportunities|Printing & signage

who are taking redundancy payments and want to buy their own business. They’re prime candidates for us because they understand the mechanics of business. The franchisee needs to be the face of their business, someone that doesn’t have problems approaching potential customers. What changes have you seen in the industry over recent times? We’ve got over 1,350 locations globally and we’re pretty in

to $185,000 and include a number of services such as lease negotiations, fitout costs, six weeks training and extensive marketing campaigns. There is a seven percent royalty fee and a two percent marketing fund contribution.

Signwave - Andrew McKay, GM Signwave’s core business, obviously as the name implies, is signage, however it’s probably

That’s the whole idea of franchising: you don’t need to come in with any particular skill sets in order to achieve a level of success tune with the global trends ... What we’re noticing is that large corporations that used to have internal print or mail rooms are now starting to focus on their core business rather than trying to save a few dollars on their print. We’re finding shorter runs with shorter lead time which plays right into our capabilities. What are the investment costs for franchisees? Prices range from $165,000

progressed, as the industry has, into a much wider scope than we’ve ever had. We really are in the business of advertising solutions. What do you look for in a franchisee? We look for someone who’s come from outside the industry, so anybody who’s interested in running and owning their own business and has an energy and enthusiasm about running

a business and about the sign industry. Someone who enjoys interacting with many different people. What changes have you seen in the industry recently? There have been many changes; over time, larger companies have seen the value of sign companies in particular where they are very much a one stop solution for their needs. Now they’re approaching the sign companies directly which has opened up many more avenues for us and it’s also increased our margins due to the fact that we’re offering more than just a product base service. What does the immediate future look like for Signwave? We’re certainly focused on growing the brand and the numbers but it’s probably not our main strategy right now. One of the things that we’ve been very upfront in saying to the group is that we want to increase everyone’s profits significantly and we want to ensure that everyone has a really healthy turnover and performance in that market place. That’s our main goal at the moment and to that end we’re actually going to be working with different coaching companies; we’re offering that to the group as part of an in-house service. Do franchisees need experience or qualifications? That’s the whole idea of franchising: you don’t need to come in with any particular skill sets in order to achieve a level of success. Having said that if you come in with previous management experience or previous sales experience, those things are obviously going to be helpful, equally if you’re more trade oriented that’s helpful as well.

Kwik Kopy franchisees help their clients with their printing and marketing needs

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What does a typical day look like for a franchisee? No two days are the same because it’s a customised business so every product is made to order. It’s made as a solution to someone’s

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Building relationships is important in the B2B printing industry

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WANT TO BE THE

007

OF BUSINESS CONSULTING? advertising problem or requirement. A typical day is to respond to enquiries that come through internet or phone, it’s going out to see people, site visits, and it’s overseeing all the different aspects of their own business to ensure the staff [are well] and products are going out well. What are the investment costs? $206,700 plus a royalty fee which is seven percent of gross monthly sales, and an advertising fund contribution of two percent of gross monthly sales.

Kwik Kopy David Bell, MD

Kwik Kopy is a corporate design and print franchise. We’ve been around in Australia for nearly 30 years. We have 104 franchises operating nationally across all states, apart from the Northern Territory. It’s a business that is probably classified as a mature business, like a lot of print businesses, but equally it’s a business that is evolving quite rapidly with the advent of digital communications. What is the bulk of Kwik Kopy’s sales? The core of the business is printing, in all its forms. So it

could be anything from the very simple, basic stuff from stationery and business cards through to training manuals, board papers, marketing materials and we do quite a bit of wide format work plans, posters things like that. We also have a significant component of design work that’s associated with us. We have a sister brand called 121 Creative and we’ve got 17 121 Creative studios

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Some of our clients prefer to deal with a design agency as opposed to what they see as a printer that operate out of Kwik Kopy franchises and those handle the higher end designs, brand identity work, corporate brochure designs. Some of our clients prefer to deal with a design agency as opposed to what they see as a printer. How is operating a B2B business different to a business-to-consumer one? The difference is both the frequency and the size of the transactions and the personal nature of the transactions. So typically in a B2C transaction

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

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

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

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industry over the past five years is the move into digital. People are communicating more and more via electronic mediums and less on the printed page so that’s had a big impact on the ability of our owners to tailor their product offering. The ink on paper, the printed page, is still the majority of the work we do but increasingly we’re involved with helping a client with a broader marketing plan.

you don’t form a relationship with your customer, you don’t know their name or much about them because you’re in a retail environment so you’re seeing lots of people going through and spending small amounts of money on a regular basis. In our business it’s the opposite, you’re

We’re pushing into website, e-publication and QR codes, and we’re hoping to be Australia’s number one provider of those products dealing with corporate clients who are spending a significantly larger amount of money on a less frequent basis and as a result you get the know them and importantly you understand their business and their needs and you tailor your offering. How has the industry changed over recent times? The industry’s always been very technology-driven but as a franchise we take care of that in that we recommend the equipment and the skills that the franchisee needs to have. At a more macro level, the biggest change that has happened in the

What are the investment costs for franchisees? $250,000 set up fee, includes 20 days of training in Sydney. The ongoing royalty fee is seven percent of sales and the marketing levy is one percent of sales for local marketing; 1.5 percent of sales for national marketing.

Snap - Stephen Edwards, CEO What is the bulk of the work performed by Snap franchisees? Half of the business is still printing and design and the other half of the business, digital applications. We’re pushing into website, e-publication and QR codes, and we’re hoping to be Australia’s number one provider of those products.

Half of Snap’s business is in digital applications

What changes have you seen in the industry over recent years? There’s no doubt that the biggest change in the printing industry is the explosion of digital ... it’s becoming very feasible for people to print digitally. Digital means things need to happen quicker. I think one of the sad things about digital is that it’s all about files being sent in, so some of the relationships that used to happen at counters or going out, are more on email. I think that’s creating a bit of an issue. Some of our relationships are dropping away because it’s all email. It’s all about the client for us so we want to make sure that they can interact. We’ve got a whole new sales and marketing system about to be launched. It’s all around on the phone, on the email, at the counter, and external - trying to integrate a sales and marketing approach. What do you look for in a franchisee? Some of the big things we look for, outside of passion, is that they can liase with people. It’s pretty important that they have strong social skills and feel confident in the interaction process. It’s not all about the money at Snap, of course you need to have the money to buy in but it’s about how you’re going to represent the brand and deal with the customer base that we have. What are the franchisees’ typical duties? We generally advocate that the franchisee should own the major client relationships. We feel that as the owner of the business you can make strong decisions and you can control the destiny of some of the work and the print that’s going on. What are the investment costs for franchisees? The investment ranges from $100,000 to $1million. Franchise royalties are eight percent and the marketing levy is two percent. F

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AEST

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

16/04/12 2:20 PM

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Opportunities|Safety

Helping organisations to comply with legislation is a fast-growing industry – and it’s at the heart of a number of lucrative and rewarding franchise opportunities, writes Domini Stuart

SAFE AND

SOUND I

n the financial year 2009-10, almost 650,000 Australians experienced at least one workrelated injury or illness. This comes with an economic as well as a human cost; Safe Work Australia estimates work-related injuries cost Australia around $57 billion a year. Both federal and state governments are continuing to make a concerted effort to reduce the incidence of workplace injuries and fatalities. Under the current

70 | FRANCHISING MAY/JUN 2012

Occupational Health and Safety (OHS) regulation everyone who is in a position to control workplace risk has a duty of care to protect the people who work there. Helping organisations to comply with legislation is a fast-growing industry – and it’s at the heart of a number of lucrative and rewarding franchise opportunities. “When you’re involved in the Safety Services market you’re

WWW.FRANCHISE.NET.AU

helping employees to reduce risk to their workers and so prevent workplace deaths, injuries and illnesses,” says Lionel Hedt, technical support and training manager at SafetyQuip. “As well as being personally satisfying, this brings recognition and respect within the community.” SafetyQuip itself provides an extensive range of safety products and services to small-to-medium businesses (SMEs). While most

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

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franchisees start out with a single, fully-stocked van, known as a Mobile SafetyShop, there is plenty of room for expansion. “Franchisees can add one or more Safety Centre stores and/ or multiple sales vans without paying additional franchisee fees,” says Hedt. While bricks and mortar retail

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sales are important, the Mobile SafetyShop enables franchisees to build a solid SME customer base. “We can take safety directly to our customers, and that’s something they welcome,” Hedt continues. “It makes their purchasing process quick and easy with minimal disruption; within minutes, their employees can be back at work with the best footwear, clothing and other protection for the job. As each van has a sophisticated on-board computer system, we can also quote, order and invoice on the customer’s doorstep.” Along with personal protection, SafetyQuip helps make the workplace environment safer with products such as first aid kits, fire extinguishers, traffic cones and lighting systems. Most importantly, franchisees and their employees are much more than salespeople; they work closely 5 / 0 4 / 1 2 , 3 : 0 4 PM with their customers to help them identify and solve their

www.franchise.net.au

safety issues. “There are serious dangers associated with purchasing safety equipment from places such as local hardware stores where salespeople tend to be poorly trained,” says Hedt. “When you have people working in a high-risk environment, such as at a height or handling chemicals, you need to deal with someone you can trust to help you select the most appropriate products and demonstrate how to use them correctly.” While few SafetyQuip franchisees have a safety industry background they are all qualified to provide legislated hazard control advice across more than 40 major market segments. “Our intensive induction training and continuing training programs quickly bring the right people up to speed and make sure they stay on top of the game,” says Hedt. “All franchisees and staff must also

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undergo ongoing supplier training to ensure they maintain the market awareness and technical skill sets they need to be able to recommend and sell such a wide range of products.” Franchisees are also trained in sales, marketing, merchandising and business management. “We look for people with an outgoing personality who are self-motivated and organised and have an aptitude for learning and sales,” says Hedt. “While some choose to work alone, our typical franchisee has a permanent Safety Store with at least two staff and a mobile van with another trained sales person, so they need good management and team-leading skills. And, as we have a software program designed to manage all aspects of the business, they must also be comfortable with using a computer.” SafetyQuip opened for business in 1992, was franchised in 2002 and now

has 15 franchised outlets across Australia. The franchise fee of $59,850 includes training, equipment, marketing and technical support. Franchisees also need at least $100,000 in unencumbered venture capital with further access to between

suffer serious injuries, including contact burns or damage to internal organs, as well as injuries sustained if the shock causes the victim to fall. Faulty electrical equipment and poor electrical installations can also cause fires, introducing a more widespread

When you have people working in a high-risk environment, such as at a height or handling chemicals, you need to deal with someone you can trust to help you select the most appropriate products and demonstrate how to use them correctly $230,000 and $290,000. The initial five-year term can be renewed for one or two further terms.

Helping to save lives Each year, around 20 people in Australia die from unintentional electric shocks. Many more

threat to both life and property. According to this year’s report from the National Coroners Information System (NCIS), the majority of these accidents occur when the casualty is carrying out paid work – and most are preventable. Every organisation in Australia is required to reduce the risk of

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electrical shock as far as practicable and one of the easiest ways to do that is with the system known as testing and tagging. As the name suggests, testing and tagging involves testing a client’s equipment then, if it is operating safely, fitting a non-reusable tag to confirm that it is safe to use. Unsafe appliances must be either repaired or replaced.

The technical side isn’t rocket science. As long as you’re willing and able to learn, our training will do the rest “Once you have had all of your electrical appliances and power points tested and tagged, you have gone a long way towards minimising risk from electrical shock in your workplace,” says Neil Welsh, divisional franchisor of Jim’s Test & Tag (Australia and New Zealand). A D _ believes F R V A that N M an A Yoffice, _ 1 2nursing . pdf Welsh home or school can be more dangerous

Testing electrical equipment

than the factory floor because people are less conscious of the risks. “They don’t see what’s going on under the desk – that the power board is damaged or overloaded,” he says. “Or they don’t realise that a fault in the lead connecting Pa g ecomputer 1 1 to 8 /the 0 mains 4 / 1 means 2 , 3 : 2 6 their that, even when it appears to be turned off, it’s

actually still live. Even kettles and urns can be dangerous if the safety cut-out device isn’t working properly.” On most days, a franchisee will find something with the potential to electrocute someone. P M “That doesn’t mean accidents happen every day – but, when they do, they can

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MAy/jun 2012 FRANCHISING | 75

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cause serious injury or loss of life,” says Welsh. Jim’s Test & Tag franchisees can provide an electrical risk assessment as well as basic fire prevention services such as testing safety switches and inspecting and maintaining fire extinguishers, fire blankets, fire hose reels and smoke alarms. They can also test microwave ovens to make sure they’re not leaking radiation. “Our job is to help our clients to operate in a safe environment

you’re willing and able to learn, our training will do the rest.” More important is the ability to communicate and develop relationships. “Ninety percent of a franchisee’s customers are the result of developing a network, so we also dedicate a lot of time to training in that area,” he says. Jim’s Test & Tag is ISO 9001 accredited – that’s the internationally-recognised standard for the quality

We pay our franchisees on a monthly basis whether or not the client has paid us. That means they have the peace of mind of knowing they can depend on a steady cash flow and to comply with the relevant legislation,” says Welsh. Of more than 150 franchisees across Australia and New Zealand only a handful are qualified electricians. “The technical side isn’t rocket science,” says Welsh. “As long as

management of businesses. A prime objective is providing successful business opportunities and, as a result, their selection process is very rigorous. Those who make it through the initial filtering process attend a two-day Prospect Information

Workshop where, as well as undergoing further assessment, they receive everything they need to make an informed decision. They also spend a day on the job with a franchisee. “It sounds obvious, but you need to make sure you’re going to be doing something you enjoy,” says Welsh. Prospects are then asked to create a business plan and a cash flow to demonstrate that their goals are achievable and that they have the resources to survive the critical first 12 month period when they’re building the business. “We also urge them to do as much due diligence as possible – to get their partners and families involved and make sure it’s good for all of them.” Welsh is keen to attract more females to the business, including mothers. “On average, our guys earn $100 every hour they’re working,” he says. “Even if you’re only working during school hours you can generate a very good income.” In Australia, a Jim’s Test & Tag franchise costs $45,000 + GST plus equipment. Add in training and a suitable van – that’s around $100,000 to get started. Fees are around $600 and the term is 10 years with a further 10 year option. While the Jim’s brand has been around for over 20 years, the Jim’s Test & Tag franchise started just eight years ago and now has over 150 outlets around Australia and New Zealand.

Building a powerful business Appliance Tagging Services (ATS) provides electrical safety assessments and testing and reporting management systems across both metropolitan and regional Australia. Again, comprehensive on- and off-site training means franchisees don’t need to be electricians.

Franchisee Andrew Renfrey, ATS

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>> continues on page 79 www.franchise.net.au

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

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

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BECOME A THEXTON ARMSTRONG BUSINESS CONSULTANT Are You…

You could be earning $500,000 + Per Year

• looking for a new and rewarding career? • wanting to substantially increase your income? • wanting to build your own valuable business? • inspired by the idea of helping others?

Have You… • been looking for a while for just the right opportunity? • thought about Business Consulting but haven't found anything good enough to get you started? With over 35 Franchisees and growing rapidly across Australia and New Zealand we believe that we have the #1 Business Consulting System in Australasia.

What makes us so sure? The 7 Success Factors of the Thexton Armstrong Franchise System 1. Lead Generation: We have our own in-house Lead Generation Call Centre making your appointments for you, meaning there is no need for you to cold-call prospects. In fact we are able to generate more leads than you'll have time to meet! 2. Client Acquisition: We have a comprehensive acquisition process that helps the client understand just how much they need your help. This makes their decision to sign with you as their Business Consultant an easy one! 3. Comprehensive Consulting System: We're not a short term “quick fix” for clients. We have a comprehensive consulting system that allows you to build a long term relationship with and work with your clients across ALL areas of their Business. This allows you to make a substantial difference in both their Business and their personal lives. 4. Value for Money: Clients sign with the Thexton Armstrong Business Consultants because we are able to clearly show them how they can earn 4 to 10 times our consulting fee in additional profits. 5. Client Retention: You can't build a successful Consulting Business if you can't retain clients. Our Business Success Programme allows you to work with your clients long-term; this provides a much better result for their Business, and yours! 6. Training: There is a direct correlation between your skills and how much you will earn as a Business Consultant. We provide significant on-going training so that your skills are always increasing, ensuring you are always of benefit to your clients. 7. Consulting Firms: Ultimately you also have the opportunity to build a Consulting Firm, where you will have your own Consultants working under your Consulting Firm “umbrella”, much like an Accounting or Law firm. Not only does this become highly profitable, but it also becomes a valuable

Like to know more? You can attend one of our free on-line webinars where we explain this exciting opportunity in more detail. You too may find it life changing! Wayne Armstrong 0411 517 770

(Aust)

Go to: www.thextonarmstrong.com.au admin@thextonarmstrong.com.au

Here’s what some of our Franchisees have to say... Since buying my Thexton A r m s t ro n g f ra n c h i s e I h ave successfully launched my practice with 6 clients in 3 months using leads from their call centre. The support I get from them is excellent and I'm really enjoying working with my clients to help them with their businesses. Craig McLeod – Auckland I have always wanted to run a business that helps others live happier and more successful lives. This is that business. The Thexton Armstrong system is great, but what has really spurred my success is the fantastic support I have received from them. This month alone has been a game changer for me, and I have 6 new clients signed, all looking to improve their businesses and personal lives. Beau Duggan – Perth I took on the franchise because I wanted to grow my own consulting firm. I launched my firm in February, and as of May, I already have a 6 figure income coming from my firm and it's only early days. I have definitely made the right choice with the Thexton Armstrong model and the support has been great. Mark Van Oirschot - Melbourne In my first two meetings I have already signed up my first two clients. What a great start to my new career! Neil Loveday – Canberra

David Thexton 0275 093 385

(NZ)

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Program client safety MONIT offers businesses a way to keep abreast of workplace health and safety: the business is all about safety management systems provided online with a real person that sits between the software program and the customer. Small and medium size firms can use the system to undergo a risk assessment in regards to workplace compliance; Monit’s system is compliant with state and national workplace and safety regulations. Clients then take any steps needed to meet the legislative requirements and because the system issues step by step instructions on a monthly basis, businesses are able to keep up to date and show that necessary action is planned and being taken. The company embraced franchising last year and now has about 50 franchisees. >> continued from page 76

“Our franchisees are all registered electrical contractors,” says co-founder and business development manager Sarah Allen. “They are trained in the inspection and electrical safety testing and tagging of portable electrical equipment in accordance with AS/NZS 3760:2010 as well as the associated OHS regulations. The initial two weeks of induction training is followed by ongoing technical training and development, along with specialised sales training and support.” ATS also focuses strongly on helping franchisees to run their business smoothly and easily. “We have employed a dedicated team to handle all aspects of administration, from data processing and producing test reports through to invoicing and debt collection,” Allen continues. “We pay our franchisees on a monthly basis whether or not the client has paid us. That means they have the peace of mind of knowing they can depend on a steady cash flow.” The team also tenders for national work and manages the relationship with major clients, such as Australia Post and Telstra. “ATS support office staff manage the entire sales, scheduling and reporting

Pa ge

7 / 0 2 / 1 2 ,

UZZ B FOR YOUR

BUCK

process for our national clients,” says Allen. “We are committed to helping our franchisees improve their service delivery and increase customer satisfaction on a continuing basis. As part of this, we actively seek out and pass on customer feedback.“ The sales team also sources local leads and handles all of the above-the-line advertising and marketing. “Our aim is to leave our franchisees free to get on with the most important aspects of their business – servicing existing clients and growing their business at a local level,” says Allen. Franchisees need to have good attention to detail, a methodical nature and a ‘cando’ attitude, along with the desire and ability to grow their direct client base. “We recently developed our own in-house sales training series to help franchisees hone their selling skills,” says Allen. ATS started operating in 2002, opened its first franchise in 2006 and now has 36 franchisees across Australia. The initial investment is $43,500 + GST for a term of five years with a further five year option; franchisees also need their own vehicle. The only ongoing fee is a percentage-based administration fee. F WWW.FRANCHISE.NET.AU

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With supermarkets continually encroaching on convenience store’s territory, those already in the industry have had to diversify their offering to ensure they’re still seen as one-stop-shops for our time poor, cash rich consumers. Danielle Bowling spoke to a leader in the industry, 7-Eleven, about how it’s staying on top

EXPRESS

EARNINGS T

he convenience store industry hinges on consumer sentiment, and depite a tough few years in retail, things are looking up for operators, according to a recent report by IBISWorld. Convenience Stores in Australia, December 2011, states that the GFC, weak income growth and increased competition from small-format grocery stores and supermarkets saw sales contract by 0.4 percent per annum over the five years to 2011-12. However the report also states that the ever-expanding range of goods offered by convenience stores, combined with the time poor, cash rich consumer, is expected to drive sales by 1.4 percent to $6.53 billion in 2011-12. And this trend will continue well into the future, with sales growth of 1.6 percent expected over the next five years, to reach $7.08 billion by 2016-17. The world’s largest operator, franchisor and licensor of convenience stores, 7-Eleven has enjoyed an increased market share since acquiring 295 service stations from Mobil Oil Australia in May 2010. With approximately 600 stores, and 35 percent market share, 7-Eleven is the biggest player in

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JOIN THIS AWARD WINNING FRANCHISE Lollypotz is an online and retail business specialising in chocolate gift bouquets. One of Australiaâ&#x20AC;&#x2122;s fastest growing franchise operations, Lollypotz has over 40 franchises nationally, 3 in New Zealand and has further plans to expand internationally in the near future.

Lollypotz has a well developed system and website to support you and all new franchise owners receive excellent training, induction and ongoing support. For further information about this very exciting new opportunity contact:

We have franchises available throughout Australia and we are looking for hardworking and motivated people to join our team.

Louise Curtis 1300 565 597 louise.curtis@lollypotz.com.au franchise@lollypotz.com.au

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Paula was recently awarded the Winner of the Lollypotz Franchise Owner of the Year! A wonderful recognition for Paula who operates her beautiful shop in Traralgon, country Victoria.

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Australia’s convenience store market. Despite its size, 7-Eleven isn’t immune to the challenges faced by retailers in this industry, which include supermarkets’ increasingly convenient offering. IBISWorld’s report says that supermarkets’ attempt to gain a larger share of the convenience market by introducing private labels, installing self-checkouts and repositioning traditional convenience store merchandise to more accessible locations, has intensified competition. National retail manager at 7-Eleven, Sue Owen, says one of the best ways for the just the products available on shelf. Our franchise to compete with supermarkets stores have the right products in the right and stay at the top of the game, is for its quantities, on the shelf when and where franchisees to simply follow the system. the customer wants them. They have good “Franchisees can position themselves for layouts that make everything easy to find success by following the 7-Eleven system, so customers can get what they want which takes care of marketing, product quickly. They offer additional services like range, maintenance, accounting services et transport and lotto tickets, phone recharge, cetera. By following the system, franchisees Moneygram and ATM facilities. Our can focus their efforts on ensuring they stores are [also] in convenient locations, have a perfectly presented store, which is the majority have parking at the door and merchandised to the highest standards and our franchisees provide efficient service so on training their staff to offer outstanding A D customer _ _ 1 0 .service,” p d f she P asays. g e 1 1 2 / 0 4 /customers 1 0 , 1can 0 :get3 in, 7 get A what M they want and then get on with their day.” “Convenience is about more than

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The promo point of difference Convenience Stores in Australia lists staff friendliness, speed of service, convenience and store cleanliness as key factors determining where consumers choose to shop. It also states that promotional deals play a significant role in boosting spending, and Owen agrees. “Our promotions and exclusive brands, Slurpee and munch, help us to keep our offer fresh and engaging for

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our customers, and encourage them to choose 7-Eleven as a destination,” she says. announcement by Metcash Other than its frozen IBISWorld’s Convenience that it will be closing 15 of its beverage Slurpee brand and Stores in Australia report regional Campbells Cash & munch range of meals and reads “IBISWorld anticipates Carry convenience stores. snacks including sandwiches, that concentration will Metcash CEO, Andrew pies and muffins, 7-Eleven intensify over the next Reitzer, said “This also has a $1 coffee offering five years, as existing recognises the changing and recently aligned itself with operators embark on dynamic in the convenience Krispy Kreme doughnuts. expansions of their store sector as our mix of business “Our ongoing promotions networks. Unfortunately swings more heavily and deals give our customers this is expected to be to towards the organised petrol value and some great freebies, the detriment of existing and convenience sector and which increases customer small players as increased away from the accelerating traffic and helps to lift competition will lead to their decline of traditional customer spend when they’re demise, merger or acquisition convenience stores.” in-store,” Owen says. by larger operations. The closures will see 315 The Slurpee brand is an “Overall, IBISWorld positions be made redundant. extremely popular, full-time forecasts that convenience As part of its report, offering at 7-Eleven with sales stores will follow a similar IBISWorld makes a number spiking once a year when trend to that of supermarkets, of recommendations for franchisees hand out free whereby a few players small convenience outlets Slurpees to anyone that says control the majority of the trying to avoid being ‘Happy 7-Eleven Day’ on the industry.” cannibalised by larger brands 7th of November. Last year was The report’s comments A Dthe _ Fmost R Csuccessful A L T E X 7-Eleven M A Y _ 1 0 _ 3 . are pd f P a gthe e recent 1 1 2 / 0 or 4 /supermarkets. 1 0 , 1 0 : 4 2 AM inline with Day since its inception in 2008,

Campbells Cash & Carry closures: a sign of the times?

www.franchise.net.au

“Independent convenience stores need to implement new strategies to compete with convenience outlets operatored by large companies like Coles and Woolworths. Larger players will effectively crush those that continue to offer the same product range and methods of doing business. “Comprehensive refits and store refurbishments are possible means of providing a fresh approach for customers,” it reads. Other recommendations include incorporating more of a restaurant feel to convenience stores, larger cool rooms for the expanding beverage market and a more extensive range of fresh, prepared foods.

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with 782,650 free drinks handed out. “Slurpee is iconic and is exclusive to 7-Eleven.” With more than 11 million Australians aged 14 and over purchasing from convenience stores in any given seven day period, it makes sense for franchisees to do all they can to promote their exclusive offerings and reinforce the fact that convenience stores offer something that supermarkets don’t. Owen agrees. “Our franchisees are critical to the successful execution of our offer and our promotions. They make sure the products are available in the right quantities, merchandise their stores to increase customer awareness at store level and work with their staff to make them aware of all our offers and how to process them at the register. Great franchisees also work to inspire their staff to share with the customers the deals that are on offer.”

years, with the market set to experience mounting competition from supermarkets and other grocery stores in their quest for the elusive consumer shopping dollar,” the IBISWorld report reads. At the same time, however, it says that while many argue that convenience stores charge more than supermarkets for identical products, consumers choose to shop there because of the product range, ease of service and ample parking.

Great franchisees also work to inspire their staff to share with the customers the deals that are on offer

“We continue to adapt over time to maintain a competitive advantage in a number of different ways, but the core is always about convenience for the customer,” Owen says. “Convenience used to be about a range of grocery items available after grocery stores were closed, but now, for our customers, convenience is about more A D“Convenience _ F RCAL M A Y _are 1 set 2 .topbattle d f against P a g e than 1 just 1 7milk / 0 and 4 / bread. 1 2 , Though 1 1 : 4those 3 : 0 7 stores did you know.pdf 1 16/04/2012 3:38:17 PM are important, it’s about great grab-andthe big supermarkets over the next five

Competing for the convenience dollar

84 | FRANCHISING MAy/jun 2012

go fresh food, e-services products such as phone recharge and online gaming gift cards, and the continued evolution of the iconic Slurpee brand.” With a wider and cheaper range of products, extended operating hours and often a petrol discount at the check-out, supermarkets have posed a serious threat to the convenience store market. Over the years this has seen convenience stores broaden their offering while

www.franchise.net.au

at the same time adjusting it to consumer trends, including the introduction of fresh foods like juices, yoghurts and fruit salads in response to consumers’ growing awareness of the importance of a healthy diet. This diversification also saw convenience stores introduce services such as ATMs, photocopying, internet shopping pick-up points, internet access, A M A machines, EST vending dry-cleaning services, video rentals, lottery operations, and

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Convenience|Opportunities

Tips for convenience success

Convenience stores will need to follow consumer trends in order to compete with supermarkets

IBISWorld has identified five key success factors for a convenience store business: 1. Ability to control stock on hand Stock control processes minimise costs. 2. Access to multiskilled and flexible workforce Employees should be willing to work flexible hours, especially those working in a 24-hour business model. 3. Experienced work force Staff should offer efficient customer service to ensure repeat visits. 4. Attractive product presentation Stores should have a clear layout and design. Products need to be presented well and be well stocked. 5. Proximity to key markets Stores need to be close to residential areas for ease of access.

our offer is clearly differentiated from back in the day, film processing. not only the supermarkets, but also our “Our stores have been successfully Courtesy of IBISWorld Industry Report direct competitors too. We have to ensure competing with supermarkets since G5112 - Convenience Stores in Australia, we keep ahead of what the consumer is trading hours began to be deregulated December A Dmany _ F Ryears C A Lago,” TEX M A Y _ 1 0 _ 4 . p d f P a g e 1 1 2 / 0 4 / 1 0 , 1 0 : 4 5 A M2011 looking for from convenience, to continue says Owen. to evolve to meet their needs”. F “The key is in continuing to ensure

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

WONDERS OF

THE WEST O pportunities in Perth go beyond the mining world, and a number of new and exciting business ventures will be on display at the upcoming Franchising and Business Opportunities Expo. Held on 26 and 27 May at the Perth Convention Exhibition Centre, the expo will offer potential franchisees the chance to not only get a feel for what’s on offer in the west, but also a deeper understanding of the franchising industry and how it operates. The two day event will feature the Franchise Success Panels, where visitors will have the opportunity to talk face-to-face with successful franchisees and franchisors from a range of systems.

86 | FRANCHISING MAY/JUN 2012

Participants will include Irene and Ian Hughes, PoolWerx’s 2010 West Australian Franchisees of the Year and 2011’s Multi-Unit Franchisees of the Year, as well as Lisa and Nathan Merrett from Bakers Delight, who last year claimed the Western Australia Franchisee Community Service Award at the FCA’s Excellence in Franchising Awards. Exhibition director, Gaye Murray, says “Uniquely the Franchise Success Panels will provide a forum for people to ask the tough questions direct to franchisees, without input from the franchisor themselves. We believe this will provide a very honest representation of the leading franchise brands.” The Franchising Seminar Theatre will feature a series of information rich

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seminars for people in the early stages of their franchising journey. This year, McDonald’s Australia’s franchising manager, Bert Cotte will be hosting the ‘Become a key ingredient in our success: Franchising with McDonald’s’ seminar, where he will discuss the secrets of the fast food giant’s franchising model and what it takes to be a sucessful member of the McDonald’s team (read more in our Interview with Cotte in this issue, starting on p8). Attendees will also have the chance to discuss their potential new business opportunities with qualified specialist franchise and small business bankers and lawyers at the Franchising Advice Centre, and of course, there will be a number of franchise systems on display

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

with representatives on the stand to answer your questions. Participating franchisees include:

AUSSIE FARMERS DIRECT

TELL US ABOUT THE BUSINESS Aussie Farmers Direct is an independently owned, Australian home delivery business and Australia’s fastest growing franchise (BRW Fast Franchises 2012) that delivers 100 percent Australian produce direct to the doors of more than 130,000 households across six states, by re-inventing the old fashioned service of the local ‘milkman’.

WHAT ARE YOUR GROWTH PLANS FOR THE NEXT 12 MONTHS? We are currently on the lookout for more Perth franchisees to service the available 20 territories, each of which take in four to five suburbs and between 8,000 and 10,000 homes.

Where: Convention Exhibition Centre, 21 Mounts Bay Road, Perth When: Saturday May 26 (10am-5pm) and Sunday May 27 (10am-4pm). For more information and to register for free entry visit www.franchisingexpo.com.au

WHAT DO YOU LOOK FOR IN A FRANCHISEE? When selecting franchisees, Aussie Farmers Direct looks for people who have the following qualities: • A strong desire to excel in customer service • A desire to really get to know their customers • A great work ethic – an Aussie Farmers Direct franchise is not a part time job • A desire to run and grow your own business • Strong communication and interpersonal skills

WHAT ARE YOUR PLANS FOR THE PERTH FRANCHISING AND BUSINESS OPPORTUNITIES EXPO? WHAT DO YOU HOPE TO ACHIEVE THERE? Generate greater awareness of Aussie Farmers Direct in Perth and ideally, recruit additional franchisees.

RESIDENTIAL GARAGE DOORS

TELL US ABOUT THE BUSINESS The business has been up and running for just over three years and has gone from being a brand new company with no customers to generating sales of $500,000 at the end of the second full financial year. We offer a full garage door experience, with sales of new doors and service and repair of existing doors. The core beliefs of the business have been to offer a quick turnaround from receiving the call to solving the enquiry and we always putting the customers’ needs first.

WHAT IS THE INVESTMENT COST FOR FRANCHISEES? An Aussie Farmers Direct franchise costs $121,000 (GST inclusive) which includes an exclusive service area, a HOW MANY FRANCHISEES ARE IN guaranteed customer base, ongoing HOW MANY FRANCHISEES ARE IN THE SYSTEM? WHERE ARE THEY training and full back-end management THE SYSTEM? WHERE ARE THEY LOCATED? and support including customer LOCATED? We have almost 180 franchisees in management, billing, payments, new We are a new, mobile franchise and have Victoria, New South Wales, Queensland, product development and product just one corporate territory which is South Australia, WA and the Australian A D _Territory. F RJ EM MA R 1 2franchisees . pdf P aprocurement. g e 1 6 /Other 0 2 / costs 1 2 ,include 2 : the 5 3 P Mlocated to the south of Perth. Capital There are_ 19 purchase of a refrigerated van. in WA servicing metropolitan Perth. >> continues on page 90

88 | FRANCHISING MAy/jun 2012

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ED AUSTRALIAN ORWANTED LOCALLY OPE

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

>> continued from page 88

WHAT ARE YOUR GROWTH PLANS FOR THE NEXT 12 MONTHS? We plan on trying to [grow to] five franchises in the next 12 months and then another five the year after. A key factor for us is that we plan to keep a very personal connection with all the franchisees and give them a generous level of support to ensure their success. WHAT DO YOU LOOK FOR IN A FRANCHISEE? A franchisee should be self motivated, have some basic tool skills and want to offer great customer service. We can teach everything else the franchisee needs to know. WHAT IS THE INVESTMENT COST FOR FRANCHISEES? The initial investment for a franchisee starts at $80,000 + GST depending on the area they operate. There are no marketing fees and the royalty fees are on a sliding scale up to 10 percent over the first 12 months of the business, to help the franchisee settle in and recoup their initial investment. We are also offering a guaranteed minimum income over the first six months of the franchisee operation. WHAT ARE YOUR PLANS FOR THE PERTH FRANCHISING AND BUSINESS OPPORTUNITIES EXPO? WHAT DO YOU HOPE TO ACHIEVE THERE? To start getting our new franchise recognised and to meet as many potential franchisees as possible.

RP VENDING

TELL US ABOUT THE BUSINESS The business is made up of a fleet of vending machines that are purchased by the owner and are placed in sites such as offices, factories and cafeterias providing them with snacks and drinks. The owner then maintains their machines by stocking, cleaning and collecting their money from the machine. This business 90 | FRANCHISING MAy/jun 2012

can be run as either a full time or parttime operation with different business packages available. HOW MANY LICENSEES ARE IN THE SYSTEM? WHERE ARE THEY LOCATED? Operating since 1995 RP Vending Systems has over 550 owners across Australia in all states. WHAT ARE YOUR GROWTH PLANS FOR THE NEXT 12 MONTHS? At the end of 2011 we released three new machines into the Australian market. We plan to continue to grow the brand of the new range of vending machines – the Allusion range. We would also like to continue to expand and grow the RP Vending brand in WA by increasing our presence there. WHAT DO YOU LOOK FOR IN A LICENSEE? An ideal RP Vending Systems business owner is friendly and motivated. One of the keys to a successful vending business is great customer service, that is why we like to have owners who are people oriented. WHAT IS THE INVESTMENT COST FOR LICENSEES? A typical part–time vending operation would cost approximately $50,000 and a full time operation would cost approximately $100,000. There are no ongoing royalties or marketing fees included. The ongoing membership to the RP buyers group, technical support hotline and other back up facilities are all free of charge. WHAT ARE YOUR PLANS FOR THE PERTH FRANCHISING AND BUSINESS OPPORTUNITIES EXPO? WHAT DO YOU HOPE TO ACHIEVE THERE? We hope to use the Perth Franchising Expo to gain some new motivated RP business owners to further increase our presence and market share within the West Australian market.

TUTTI FRUTTI FROZEN YOGURT

TELL US ABOUT THE BUSINESS Tutti Frutti Frozen Yogurt is the latest self serve, soft serve frozen yogurt concept to www.franchise.net.au

hit WA. There are more than 50 natural flavours and over 30 different toppings to choose from so customers can create a satisfying dessert or snack without the calories and fat content of ice cream. Our stores are self serve so the customer can purchase $1 or $15 worth – customers pay by weight. HOW MANY FRANCHISEES ARE IN THE SYSTEM? WHERE ARE THEY LOCATED? There are 580 stores worldwide across 33 different countries – Tutti Frutti Frozen Yogurt is the largest self serve frozen yogurt brand in the world.There is currently a corporate store in Leederville, WA with another on the way. WHAT ARE YOUR GROWTH PLANS FOR THE NEXT 12 MONTHS? Our goal is to have 10 stores across WA within the next 12 months. WHAT DO YOU LOOK FOR IN A FRANCHISEE? Our franchisees need to have some previous retail/food experience or at least some business understanding and awareness of HR conditions that need to be applied in any small business. WHAT IS THE INVESTMENT COST FOR FRANCHISEES? There are no royalties. There is a five percent marketing fee which is measured from their quarterly sales. The franchise fee will range from $100,000 to $150,000 which allows you to operate as a Tutti Frutti Frozen Yogurt store and gives you the design layout for your store. Your fitout and equipment is additional. WHAT ARE YOUR PLANS FOR THE PERTH EXPO? WHAT DO YOU HOPE TO ACHIEVE THERE? A minimum of six start ups. F

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Issues|Mobile franchises

realise the

dream

A mobile franchise offers all the regular benefits of a supported business system with a healthier work/life balance and lower outgoings. Donna Bennett talks to five different mobile franchisees

or many Australians, the dream of owning their own business is thwarted by the strong desire to spending quality time with family and friends, or towards outside interests, hobbies and fitness. Thanks to franchise systems that are mobile, now you can have it all!

Franchisee: Chris Moffat (29) Mobile system: SuperGeek (mobile on-site computer repairs and service) Purchased: 2006 (worked as SuperGeek BDM in 2007 + QLD master franchisee since 2009) 92| FRANCHISING MAy/jun 2012

Service areas: Throughout QLD Staff: Yes (wife and technicians/ franchisees) Average weekly hours: 60+ hours Previous experience: Structural fitter with the RAAF for seven years. Chris did not have previous ITspecific expertise, but the many skills and attitudes he adopted from the defence force were a strong contributor to his success. “The SuperGeek system taught me all other aspects of business practices and entrepreneurial ways,” he says. Why SuperGeek? “I wanted to work for myself and only be limited by my abilities. The SuperGeek system provided a great customer service focus and fantastic earning potential.

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Why mobile? “The fact that the system was mobile brought a whole new dimension to computer repairs, as most customers don’t want to be unplugging their computers and lugging them down to a shop.” Daily activities • Managing technicians that service his individual franchises; • communicating with franchisees; • training and other general business operations. Challenges & rewards Challenges include being able to communicate with a wide variety of personality types, and maintaining uniformity in customer service and business operations for all SuperGeek QLD franchisees.

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Mobile franchises|Issues

Chris Moffat

Chris lists his number one reward as witnessing a franchisee follow the SuperGeek system and, in turn, achieving their goals. “A business is just like a human body. You only get out what you put in. It’s a fine balance of hard work, listening and learning, and holding onto the positives and moving forward from the negatives.” Affordable franchise? “Absolutely. In comparison to other franchise investments, I believe SuperGeek has the fastest return of initial investment.” Future plans Chris is working to achieve maximum coverage across the state, including areas that currently have no IT support (Northern QLD). “I also intend to work closely with SuperGeek towards full national coverage and international growth.”

Matt Gillam

Franchisee: Matt Gillam (38) Mobile system: PoolWerx Mobile (pool and spa care) Purchased: November 2008 and August 2011 Service areas: Surfers Paradise and Southport, QLD Staff: Eight (Four pool technicians, three cleaners and one bookkeeper) Average weekly hours: 50 to 55 hours Previous work experience: 17 years working in banking and finance Matt wanted to take charge of his financial destiny: “The GFC was starting to affect our business and we had one young daughter and another on the way.” Why PoolWerx? Matt believes the company had stood the test of time thanks to

strong long-term vision and willingness to innovate, and the franchising knowledge and experience of John O’Brien as CEO. “PoolWerx is the only brand outside retail fast food to appear in BRW’s fast franchises rankings every year since they were introduced in 2003. “We think we are pretty self sufficient, but if we don’t know the answer or haven’t come across a particular problem before, there is no doubt that the answer is only a phone call away. Being able to tap into the PoolWerx knowledge base is one of the great advantages of the model.” Why mobile? The flexibility of the PoolWerx model in allowing for a mobile

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Issues|Mobile franchises

business was also appealing to Matt, with his young family. Daily activities: • Week days – 6.30am to 5pm (flexible); • reviewing mail and checking on repairs; • reviewing daily work schedule with service manager; • contacting suppliers and clients; • attending to equipment installations and courier chemicals to commercial Megan and Paul Walters sites; • weekends – 5am to 9am (resort clients). “Administration is a key part of our franchise as the majority of our business is focused on commercial clients (hotels having these systems in place has and resorts). I review all financial and provided the flexibility we need to more accounting documentation for the Franchisee: Paul Walters and efficiently manage staff and provide a business on an almost daily basis.” Megan Walters (43 and 40) platform for growth.” Matt enjoys the hands-on work testing Continually working towards a work/ and balancing pools and spas at resorts Mobile system: Aussie Pooch Mobile life balance, and the investment of time and on weekends. “I’m home by 9am to (dog wash and grooming) money Matt has made in setting up the spend time with my family or go for a Purchased: June 2009 right business infrastructure and systems swim, ride or run as part of my exercise Service area: West Belconnen, ACT allows him that flexibility. “I love what I do regime and triathlon training.” Staff: Husband and wife team and the flexibility the business offers.” Challenges and rewards Average weekly hours: 70 to 80 hours Affordable franchise? Matt has always been a self-motivated per(combined) “I estimate that at present I could sell my son whether it is in sport or business, and Previous work experience: business for more than three times what getting his hands dirty has never worried • General manager, Fitness First (Paul) I bought it for, so from that perspective I him. “Putting it all together as the owner • Executive assistant to the ACT have well and truly recovered my initial of a business and especially with other Auditor-General (Megan) investment.” people (my staff) and their families to conWhy Aussie Pooch? Plans sider, when and how you make business Customers first, Paul and Megan could Matt is looking at more creative and decisions is probably the biggest test.” see the benefits. “We wanted to be self innovative ways of expanding the “Initially our biggest internal employed to fully enjoy our daughter’s business and keeping an eye on current challenge was in the time spent setting school years.” A D _ F R A N Y O G A MA R _ 1 1 . p d f Pa ge 1 7 / 0 2 / 1 1 , 1 1 : 0 8 AM trends in technology, energy conscious up our back end business infrastructure Why mobile? consumerism and durable products. and systems. Once established though, “Buying a mobile franchise enabled us

94| FRANCHISING MAY/JUN 2012

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

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

• More than 15 million customers served every year.

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

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

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

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

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Issues|Mobile franchises

to work in the area in which we live and also gave us security of a successful system.” Daily activities: • Washing dogs; • customer service, both in person and over the phone; • selling retail items; • marketing; accounts and bookwork; • cleaning and maintenance of equipment. Challenges and rewards The challenge is to be able to “switch off” at the end of the day and ensuring they have a day off. Rewards include dropping off and collecting their daughter from school, working in the community to raise money for pet related charities, and seeing new customers become advocates for their business. Megan says she appreciates knowing that the hours and effort

Return on investment is dependent on the amount of effort you are prepared to put into your business they put into their business will only benefit them. Paul explains, “If I continued being an employee to someone else, my time with my family was only going to diminish. I was constantly on call. Now I work the hours I want to work.” Affordable franchise? Paul and Megan agree it’s very affordable. “Yes, return on investment is dependent on the amount of effort you are prepared to put into your business.” Plans The Walters’ future plans include purchasing the ACT master franchise and adding a representative to their area to help the business expand.

96| FRANCHISING MAY/JUN 2012

Chris Hohnke

Franchisee: Chris Hohnke (55) Mobile system: Snap-on Tools Australia (mobile retail store) Purchased: 1994 Service area: Inner-Newcastle, NSW Staff: Works alone Average weekly hours: 60 to 75 (200-250 customers) Previous work experience: • Fitter and turner • Working on coal and gas rigs • GIO insurance franchisee (10 years) • Real estate agent Chris had to start again after GIO bought back all their franchises but he wanted to work for himself. “I have a strong trade background so I started looking into the options in this industry.” Why Snap-on? Even though back in 1994 Snapon Tools was yet to become a franchise, Chris made his decision based on the company’s offer of support and network reliability. “It’s something I wouldn’t have had if I’d gone into business for myself.” Why mobile? “The only thing that annoyed me about my GIO franchise was that I was stuck in one location all the time.”

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Daily activities Chris is usually at the beach surfing from 6 to 7.30am each day. “This is why I love my job! I even had my truck customised so it could carry my surfboard!” He aims to see his first customer at 8am sharp. “I’m very organised and time conscious so I like to arrive at my customers on time every week.” Challenges and rewards Chris enjoys keeping his business fresh. “I get a lot of joy servicing different industries, such as QANTAS airbuses and fighter jets, so this keeps it interesting, but trying to branch out and find new areas can be a bit of a challenge sometimes. “I work really hard but I’ve managed to achieve a pretty perfect work/life balance, something most people aspire to. By far the most rewarding element of my job is the friendships and relationships I’ve formed with my customers.” Affordable franchise? Chris had come out of another business and owned his home. “In terms of the return on my investment, it’s great. I have a large and diverse range of customers so the business does well.” Plans Chris considered expanding but

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FRANCHISE OPPORTUNITIES AVAILABLE

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

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

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

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Issues|Mobile franchises

heâ&#x20AC;&#x2122;s happy the way things are. â&#x20AC;&#x153;A second franchise would alter the work/life balance Iâ&#x20AC;&#x2122;ve achieved with my business. I love what I do and if I can do it for another 20 years I will.â&#x20AC;?

Franchisee: John Portelli (46) Mobile system: Ovenu (oven cleaning and detailing service) Purchased: December 2010 Service areas: Cockburn and southern suburbs of Perth, WA Staff: Works with son Terence Average weekly hours: 33 hours Previous experience: â&#x20AC;˘ cage welding machine operator in a concrete pipe factory; â&#x20AC;˘ business owner â&#x20AC;&#x201C; army surplus John Portelli

A D _ F R S K I MA R _ 1 2 . p d f

Pa ge

and hotdog cart (in Malta); â&#x20AC;˘ building maintenance worker (12 years in New York). Why Ovenu? What prompted John to buy the franchise was the fact it was already established and there was no need to start from scratch. â&#x20AC;&#x153;I wanted to take control of my time and work for myself rather than selling my time for $20 an hour.

He struggles to pinpoint the best aspect because he simply loves everything about owning his franchise. â&#x20AC;&#x153;I am the boss, I meet new people everyday, I am in charge of my life and I make good money.â&#x20AC;? John enjoys it when a new customer books him on the recommendation of an existing client. He also appreciates the professional assistance he receives being part of a professional

I am the boss, I meet new people everyday, I am in charge of my life and I make good money Why mobile? â&#x20AC;&#x153;You donâ&#x20AC;&#x2122;t need to rent premises and you get to see many nice places every day, and this franchise system is easy once you know how to carry it out.â&#x20AC;? Daily activities â&#x20AC;˘ 5.30am start to heat the tank at the back of van; â&#x20AC;˘ on the road by 7am to start first job at 7:30am; â&#x20AC;˘ a half hour break â&#x20AC;˘ returns home to relax by 2pm. Challenges and rewards At first, the most challenging task for John was the actual driving. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s most rewarding when I see a happy client who tells me how 8 / 0 2 / 1 2 , 1 0 : 3 5 AM splendid the oven looks â&#x20AC;&#x201C; I enjoy seeing people happy.â&#x20AC;?

franchise system. â&#x20AC;&#x153;Iâ&#x20AC;&#x2122;ve got support from the franchisor who is a gentleman â&#x20AC;&#x201C; what could be better than that?â&#x20AC;? Affordable franchise? â&#x20AC;&#x153;In my opinion Ovenu is a very affordable business and Iâ&#x20AC;&#x2122;m getting a very good return, itâ&#x20AC;&#x2122;s more than worth it.â&#x20AC;? Future plans John says his son Terence will buy his own van and expand their business. Owning his Ovenu franchise will ultimately have John living a carefree Mediterranean lifestyle. When he retires, John plans to live in Malta and enjoy uninterrupted days on the Island of Gozo relaxing and fishing. F

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

Âš

Matthew Hine, sKids Australia Casey and Cardinia Franchisee

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

Safe Kids In Daily Supervision

98| FRANCHISING MAY/JUN 2012

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SNO1013FranchisePre.pdf

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SapientNitro SNO 1013

JOIN THE

DREAM TEAM VOTED ONE OF AUSTRALIA’S

TOP 10 FRANCHISE SYSTEMS

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

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

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

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

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

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

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

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Personality|Issues Personality|

HOW TO BE A SUCCESSFUL

FRANCHISEE Do you have what it takes to be a franchisee? Running your own business as part of a mutually supportive network has fantastic advantages and high performing franchisees share some specific traits. Check out whether or not you could be heading for franchise success

ranchisors will always say there is no such person as a typical franchisee. What they will reveal though, are the skills and personality traits they observe that have proved successful in their existing franchise network. So while there is no identikit franchisee that you can match to, there are common characteristics. And of course not everyone is cut out to be a franchisee. Someone who dislikes taking direction and is bursting with ideas on how to run a business isn’t likely to succeed in

General research has found happier, healthier people are better paid

a format that requires compliance to an existing model and all the processes that have helped build its success. Greg Nathan has great credentials when it comes to revealing what personality type makes a great franchisee. A regular columnist for Franchising magazine, Nathan is a respected psychologist and trainer within the franchising sector – and with his own franchisee experience behind him he understands the franchise relationship, what makes franchisees tick, and what makes for personal and business success. So in his view what are the personality traits that make for great franchisees? First up Nathan is quick to change the language. He points out that psychologists can’t WWW.FRANCHISE.NET.AU

agree on how to define personality. “We us the word attribute, psycho-social attributes, and these include aspects of a person’s life that impacts on performance. Our relationships affect behaviour and performance.” Research conducted last year by Nathan’s company, Franchise Relationships Institute, is, he believes, the most comprehensive study of franchisee attributes. The study surveyed 2,000 franchisees across 61 systems.

What the research revealed:

Education

An academic background doesn’t set you up to be a great franchisee. Dropping out of high school isn’t a good start, but once someone MAY/JUN 2012 FRANCHISING | 101

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has completed secondary education, there is an inverse relationship between franchise success and university education, says Nathan. “I would say that signing up to degrees is a bad idea in franchising. Concepts are not relevant. Franchisees want to know: how do you lead a team, how do you make the numbers work?”

Energetic, enthusiastic, engaged “Higher achievers have a higher engagement with the brand, they are passionate when they talk about it.” These high achievers also showed significantly better performance across customer service, financials, and constructive participation,” says Nathan. And he stresses that it really is the package of all three elements that marks a good franchisee. “People can deliver great service but don’t engage in the community of the franchise. Equally, if a franchisee

Family and friends

It’s important to look beyond the boundaries of the franchise to the support network that will sustain you. If you’re family life is reasonably stable, it’s easier to navigate the pressures and the challenges of running a business, Nathan suggests. “Running a business drains people’s energy and affects their attributes. So if good colleagues, friends or advisors support you they can make a big difference.”

Top performing franchisees have shared their tips on meeting financial and lifestyle goals and proved there’s no getting away from it hard work is going to get you over the line. Whether you work in the fast food, mobile services, retail and business services sectors, franchisees agree that putting in the hours is going to make the difference between a flourishing business and a business just making ends meet.

Fit and able

TOP THREE FRANCHISEE TIPS

Considering your health is also important – how does it impact on your business, how realistic is it to take on new business with long hours? “General research has found happier, healthier people are better paid.”

CLUES TO SUCCESS Julia Camm is the founder and lead consulting academic with Corven, a research and education consulting firm

Successful franchisees and franchisors choose to participate, contribute and do the right thing in the local community, franchise network and the broader Australian business community is making money but is miserable in the group, it all starts to unravel, they become negative.”

Is there a personality match? Nathan admits sometimes it’s hard to know what it will be like to be a franchisee, so interviewing existing franchisees as part of the due diligence means you can see if your personality is similar. “If so, that’s a good sign. You get the feeling ‘these are my people’,” he says.

Franchisee view

helping companies achieve more from their education and training. “Skills refer to your ability to do things, your ability to apply knowledge in a practical way to get something done. Attributes refer to how you apply those skills. “Skills can be learned through experience and training. Attributes often relate to our natural, intuitive instincts of doing things (psychologists will tell you that because attributes are based on our traits and personality). While that may be true, I also believe attributes are based on choice, that we WWW.FRANCHISE.NET.AU

1. Hard work - even though you’re buying a business from a franchise system that supplies branding, marketing and operations systems and support, the business is yours and you have to make it work. That means plenty of long hours to build the business and stepping in when there’s no-else to do the job. 2. Passion - whatever the franchise model you choose, being passionate about the business is absolutely essential. You’ll be signing up for a term of typically three or five years, and if you don’t love what you do it’s going to be a hard road. Enjoying the business will not only bring it’s own rewards but boost the bottom line. 3. Customer service - customer service customer service. There’s no shortcut to this - going all out to keep your customers happy and coming back for more is the best way to build your business. Anthony Stahl from Boost Juice, Ian Franke and Sue Taylor of Nanotek, Ian Clarke from Clark Rubber, Ann King at First Class Accounts, Andrew Laurie with ActionCoach, Fred Pose at Oporto, Bruce Carman at VIP Home Services, Mark de Havilland from Appliance Tagging Services, and Rabie Mtsanos from Looksmart Alterations all participated in panel discussions at the Sydney Franchising and Business Opportunities Expo.

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and shared risk it offers, not out of desperation or to make fast money. “They accept the accountabilities and obligations of their role, taking responsibility for their choices, actions and decisions. They are tough, resilient and persistent. Successful franchisees and franchisors always ’fess up and never blame others for mistakes.”

choose how we apply our skills. “Take saying hello, for instance. Everyone possesses the skill to say hello and most of us choose to do so in a positive and friendly way... even when we are feeling like crap and the last thing we want to do is speak to you,” says Camm. “So, how does all this relate to being a success in franchising? Both franchisors and franchisees need the right skills and attributes.”

Courage

Franchising is not for the faint hearted, suggests Camm. “Successful franchisees A D _ F R S I G MA Y _ 1 2 _ 2 . p d f and franchisors have chosen franchising because of the rewards, relationship

Passion

Camm highlights that franchise success is based on loving what you’re doing and choosing to be passionate about the business, believing in your products and services and how they positively impact your customer’s world. “Successful franchisees and franchisors feel joy and satisfaction in what they do. If you don’t love what you’re doing, have the courage to stop, count your losses and move on.”

Thoughtfulness

She adds, “Successful franchising is reliant on measured thinking. Choosing to over-think, become an instant drama Pa ge 2 1 3 / 0 4 / 1 2 , 1 0 : queen and submerging yourself in analysis paralysis is a waste of time

and energy. Successful franchisees and franchisors choose to think and have clarity on what needs to be achieved for that day, month and year. Minute by minute, they choose to stop, breathe, read the state of play and act accordingly.

Top 10 questions Ask yourself the following questions to see whether being a franchisee is right for you: 1. Do you have a positive outlook? 2. Will you bring a passion to your business? 3. Are you prepared to work hard? 4. Can you follow the rules? 5. Are you energetic and healthy enough to run this business? 6. Do you have support from family and friends? 7. Can you connect and identify with existing franchisees? 8. Are you community-minded? 9. Will you engage with the franchise network? 2 7 10. AM Can you take responsibility for your business?

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Citizenship

â&#x20AC;&#x153;Successful franchisees and franchisors choose to participate, contribute and do the right thing in the local community, franchise network and the broader Australian business community. It is what I call being a good franchise citizen,â&#x20AC;? says Camm.

THE FRANCHISORâ&#x20AC;&#x2122;S VIEW Michael Sherlock is the former CEO of Brumbyâ&#x20AC;&#x2122;s and the coauthor of business change book Jumpshift! â&#x20AC;&#x201C; shift your franchise into Hyperdrive. â&#x20AC;&#x153;In my time so far I have approved more than 500 franchisees and have learned that the common characteristics for franchisee success will depend on the needs and culture of the brand.â&#x20AC;? While the personalities and culture are different the main point remains: franchisees need to

follow the established system and not seek to change it to suit their own view; so if youâ&#x20AC;&#x2122;re a strong entrepreneurial type, starting your own franchise system might be a better choice, he says. Ask yourself: â&#x20AC;˘ Do you have the financial capacity to survive? â&#x20AC;˘ Will you be solely devoted to the business? â&#x20AC;˘ If youâ&#x20AC;&#x2122;re looking at a retail franchise, do you live within 20 to 30 minutes drive from your future store? â&#x20AC;˘ How deep is your due diligence? For instance, have you observed the store work at close hand? â&#x20AC;˘ Is your family fully aware and supportive of your ambition? â&#x20AC;˘ Have you spoken in depth to

lots of existing franchisees? â&#x20AC;˘ Are you able to put aside personal preferences to support the decisions of the franchisor? â&#x20AC;˘ Will you be a good employer, lead your team and get the best from people who work for you? â&#x20AC;˘ Do you understand the numbers and see the importance of monthly management reports on percentages/benchmarking? â&#x20AC;&#x153;Over the years my experience of franchisee recruitment taught me that the most important factor to success of a store was the ability of the franchisee,â&#x20AC;? says Sherlock. F

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

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HAPPY EVER AFTER Seeking a franchise opportunity with a great personality...John di Natale shares his tips

t is commonly accepted in contemporary psychology that there are five “big” factors of human personality. These five broad domains or dimensions are used to describe personality and make direct comparison of personality types possible. “What does this have to do with franchising?” I hear you ask. Well, I wondered whether these five personality traits might be applicable to a franchise opportunity. After all, you are likely to invest a number of years in your franchise relationship, not to mention a significant amount of your ‘hard-earned’, so it makes sense that you’ll want to know who you’re getting into bed with - so to speak.

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The big five Openness to experience: The scale ranges from inventive/curious to consistent/cautious. Conscientiousness: From efficient/organised to easy-going/careless. Extraversion: Outgoing/energetic vs. solitary/ reserved. Agreeableness: On a scale from friendly/ compassionate to cold and unkind. Neuroticism: Sensitive/nervous vs. secure/confident. These are broad, high level traits, and these elements of personality are the drivers of behaviour.

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If you think about your own personality and those of the people around you, I’m sure you’ll recognise that different personalities respond to things in certain ways. Understanding someone’s personality makes it possible to predict their future behaviours in certain circumstances. Let’s look at each of these traits in turn and see what they might mean for your franchise experience. This first trait, openness to experience, sits on a scale between being inventive and curious at one end, through to being consistent and cautious at the other. It relates to the tendency to appreciate emotion, adventure, unusual ideas, curiosity, and variety of experience. People high on the openness scale are also more likely to hold unconventional beliefs. These traits are often cited as being the motivators for

The second trait is conscientiousness. This is demonstrated in a tendency to show self-discipline, to act dutifully and aim for achievement against outside measures, rather than act spontaneously. It influences the way in which we control, regulate, and direct our impulses. Interestingly, a Michigan State University study found that the average level of conscientiousness was high among young adults but declined in older adults. Perhaps this has to do with changing attitudes over time, or perhaps as we get older, our desire to play by the rules diminishes. If your franchise is in a relatively young system, you may find a corresponding level of conscientiousness. Whilst being prepared, paying attention to details and following a schedule may not sound particularly exciting, this sort of

In a good franchise system, conscientiousness will be displayed in a well defined, documented system for each of the core aspects of the business: operations, marketing, staff recruitment and management, OHS

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discovering new business opportunities or for looking at existing opportunities in an entirely new way and you’ll recognise them in many entrepreneurial people. People with low scores on openness tend to have more conventional, traditional interests. They prefer the plain and obvious over the complex, ambiguous, and subtle and are resistant to change. If your franchise system has a vivid imagination, it might be demonstrated in its vision for the future. That vision should inspire you and have you genuinely excited at the prospect of being part of the journey. The encouragement and development of new ideas is an important element of running a good franchise system. Look for ways in which your franchise system has found new ways to engage and retain your customers. What product or service enhancements have been introduced over the past 12 months? Is it looking for better ways to do things – even those sometimes mundane things that need to be done every day? WWW.FRANCHISE.NET.AU

consistency is the one characteristic most people associate with a good franchise; consistency of product, presentation and customer experience. In a good franchise system, conscientiousness will be displayed in a well defined, documented system for each of the core aspects of the business: operations, marketing, staff recruitment and management, OHS… These systems and the consistency they deliver are ultimately what you are investing in when you buy a franchise, along of course, with the brand and its market reputation. Look for a tendency to focus on the details, to get the little things right. Nowhere is this better demonstrated than in the recruitment process; in other words when your franchisor is wooing you to the relationship. Is the information being provided to you comprehensive and detailed enough for you to get a solid understanding of the business? Is there a clear process being followed, and is it complying with all the commercial and legal requirements? If the approach at

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this early stage is reminiscent of the “wild west”, it probably doesn’t bode well for the next few years. Let’s turn our attention now to extraversion. Everyone likes an extravert, right? Well, within reason. Extraverts are outgoing and energetic rather than solitary and reserved. They generate positive energy and emotions and tend to seek stimulation by engaging with the outside world. Extraverts enjoy being with people, and are often perceived as full of energy. They tend to be enthusiastic, action-oriented individuals who are likely to say “Yes!” or “Let’s go!” to opportunities for excitement. In a marketing context, you can see how an extraverted franchise system would be able to generate interest, publicity and awareness – generally all good for business. Have a close look at the market presence of the franchise you are buying into. What messages it is putting out there and importantly, can it actually back them up. I said earlier everyone likes an extravert ‘within reason’. The qualification

relates to an extravert who is all noise and no substance. If the business you are buying into has slick marketing but its products and services don’t stack up, this is not going to be a happy relationship. This also applies to the marketing of the franchise opportunity itself. Many a franchise system has delivered slick looking brochures and a nice website. Fewer have the substance needed to translate the promise into reality. Before making your decision you should be asking some tough questions about whether or not the franchise is based on a proven and profitable business, on the expertise applied to the development of the franchise model itself as well as the legal and operational arrangements. If it looks like the franchise system was developed over a Sunday barbeque... well, you know what to do. As the saying goes, there are plenty of fish in the sea. The tendency to be compassionate and cooperative rather than suspicious and antagonistic towards others is referred to as agreeableness. Agreeable individuals value getting

In an attempt to keep everybody happy, your franchisor may allow exceptions to the rules, allow people to cut corners on operational disciplines or be too lenient in maintaining standards along with others. They are generally considerate, friendly, generous, helpful, and willing to compromise. Agreeable people tend also to have an optimistic view of human nature. In a franchise, this trait tends to be reflected in good team work skills and a genuine desire to ensure that all parties are happy. There is a potential downside to being too agreeable however. In an attempt to keep everybody happy, your franchisor may allow exceptions to the rules, allow people to cut corners 110| FRANCHISING MAY/JUN 2012

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on operational disciplines or be too lenient in maintaining standards. Whilst this might make some people happy, it can have an adverse affect on customer perception, loyalty and ultimately the value of your business. These are the reasons that agreeableness is sometimes considered to be inversely related to leadership skills. A good leader knows that sometimes, you can’t make everyone happy. We’ve all met them. Some of us are related to them. Dare I say it? Some of us may even be them. Those who display neuroticism, the fifth trait, tend to more readily experience negative emotions, such as anger, anxiety, or depression. This trait is sometimes linked with a low tolerance for stress. This is a trait you don’t want to see in your franchise. It may manifest itself in overreactions to minor issues and a tendency to see every problem as the end of the world. When someone is experiencing these sorts of emotions on a regular basis, the likelihood of making sound business decisions is greatly reduced. It’s rare to find this trait featuring highly in the entrepreneurial circles. By their very nature, franchisors and business owners in general tend to be more positive and outgoing, but neuroticism has been known to make a special guest appearance from time to time.

Personality traits you don’t want your franchise to have... Not so much a personality trait perhaps, but more a behaviour stemming from them, dishonesty is something you don’t want to see in your relationship with your franchisor. This doesn’t mean you can expect them to tell you everything and be completely transparent. The reality is that’s

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often not possible or desirable in business. It does mean however, that your franchisor should have a solid track record of dealing fairly and ethically with everyone from franchisees to suppliers and customers. This is probably best discovered by asking questions of these people and getting a feel

an inability or unwillingness to recognise issues and subsequently, poor decision making. You will put a significant amount of trust in your franchisor and need their help if you are to succeed. You will need to rely on them to deliver support, guidance and direction. If they tend toward

The encouragement and development of new ideas is an important element of running a good franchise system. Look for ways in which your franchise system has found new ways to engage and retain your customers for their level of respect for the unreliability, your business will suffer and so will your peace of business and its owners. mind. Again, asking people who Perhaps one of my pet peeves, are experienced in dealing with arrogance has no place in the mix your franchise will provide some if you are looking to invest in and insight, and remember not to operate a successful business. An ignore your intuition or ‘gut feel’. arrogant attitude simply makes A desirable personality is one people unpleasant to be around, A D _ F R WA T J A N _ 1 2 . p d f Pa ge 1 2 8 / 1 1 / 1 1 , 1 1 : 4 0 AM that balances a number of traits but more importantly from a and a franchise system needs to business perspective, it leads to

do the same. There are always competing drivers but some traits will always tend to be dominant. These become apparent as automatic responses to things or as the ones that will always emerge under pressure. The behaviours apparent in day to day operations are more important than the slogans on advertising materials or marketing messages in the franchisee recruitment process. These are the things you should be looking closely at before making your decision. If you were considering a husband, wife, partner or significant other, you would surely give yourself time to understand them, get a sense of what they will be like to live with ... Take the time to understand your franchise business too, and may you both live happily ever-after. F John di Natale is a senior consultant at franchise consulting and legal firm DC Strategy

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

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

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How to|Due diligence

know your

Understand your rights under the Franchising Code and how you are protected before you sign up to a franchise, advises Dr Michael Schaper, deputy chairman of the ACCC

rights A

ustralia has a compulsory national Franchising Code of Conduct that was written to give franchisees and prospective franchisees a number of useful rights. However, the Code doesnâ&#x20AC;&#x2122;t provide blanket protection.

The Franchising Code

The Franchising Code entitles you to certain information before you buy a franchise. The franchisor must give you a disclosure document, a final version of your franchise agreement and a copy of the Code at least 14 days before you sign an agreement or make a non-refundable payment. The Code also provides a simple and costeffective dispute resolution procedure. Under this procedure, if a franchisee and franchisor cannot resolve a dispute themselves, either party may 114 | FRANCHISING MAy/jun 2012

refer the matter to a mediator and the other party must attend. A franchise agreement is a binding contract which sets out your rights and obligations, as well as those of the franchisor. Make sure you www.franchise.net.au

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understand everything in it before you sign it. The disclosure document includes critical information that you need to know before you buy a franchise, including your start-up costs and any other payments you may be required to make; contact details of current and some past franchisees; and whether you will have an exclusive

No guarantees

There are a number of circumstances in which the Code does not give franchisees any specific rights or protections. 1. Renewal The disclosure document will tell you whether you will have the option to renew your agreement and, if so, how the franchisor will decide whether

There are also circumstances in which the Code allows a franchisor to terminate your franchise agreement immediately territory. The disclosure document also sets out any restrictions on where you can source goods or services; details of what will happen when your agreement ends; and any requirement to enter into a related agreement (e.g. a lease agreement). This is useful information that can help you better understand the franchise deal youâ&#x20AC;&#x2122;re thinking about signing up to. 116 | FRANCHISING MAy/jun 2012

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or not to grant you an additional term. The Code also requires the franchisor to give you at least six monthsâ&#x20AC;&#x2122; notice of its decision to renew or not renew. BUT the Code does not give you an automatic right to renew your agreement when it ends. So be aware that your franchisor may decide not to renew your agreement. 2. Termination If you breach your franchise agreement, your franchisor

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may attempt to terminate the agreement. In these circumstances, the Code requires the franchisor to give you notice that it is proposing to terminate your agreement and allow you a reasonable time to remedy your breach. If you correct the breach within the specified time, the franchisor cannot terminate your agreement for that breach. BUT some franchise agreements allow the franchisor to terminate the agreement even if you haven’t breached the agreement. If this is the case, the Code only requires the franchisor to explain the reasons for the proposed termination and give you reasonable notice. You A D _ F R B S B MA R _ 1 2 . p d f can use the Code’s dispute resolution procedure if you

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don’t agree with the decision. There are also circumstances in which the Code allows a franchisor to terminate your franchise agreement immediately, including if you become bankrupt, voluntarily abandon your franchise, are convicted of a serious

Pa ge

offence or no longer hold a licence that you need to carry on your franchise. 3. Your territory The Code requires the franchisor to disclose whether or not you will have an exclusive territory. BUT if you don’t have an exclusive territory, there is nothing preventing the franchisor from selling another franchise, or setting up its own store, in close proximity to your franchise. 4. Marketing funds If you are required to contribute to a marketing or cooperative fund, the Code requires your franchisor to prepare an annual audited financial statement setting out the fund’s receipts and expenses. BUT the Code does not limit what the funds can be used for. If you are not

If you don’t have an exclusive territory, there is nothing preventing the franchisor from selling another setting up its own store, in 7 franchise, / 0 2 / 1 2 , 1 or 1 : 4 8 AM close proximity to your franchise

www.franchise.net.au

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happy with the way the franchisor is spending the marketing money, there may be little you can do about it. 5. Your suppliers Franchisors will often require their franchisees to source goods or services from a limited number of approved suppliers. BUT while the franchisor must disclose this restriction in its disclosure document, as well as any rebates or other financial benefits it is receiving from those suppliers, there is nothing in the Code to prevent this. In some circumstances this conduct may require approval from the ACCC.

What you must do

Clearly, you need to be fully aware of both the pros and cons of franchising before you sign up to anything. There are six important steps that we recommend you take before entering into a franchise agreement: 1. Do a pre-entry franchising course (e.g. Griffith Universityâ&#x20AC;&#x2122;s free online

Role of the ACCC The ACCC is an independent government agency responsible for regulating the Competition and Consumer Act 2010 (the CCA), including the Franchising Code. The ACCC educates franchisees and franchisors about their rights and obligations under the Code. The ACCC is not a dispute resolution body and cannot enforce your franchise agreement. Commercial disputes are best handled by the Office of the Franchising Mediation Adviser (1800 150 667) or your local small business commissionerâ&#x20AC;&#x2122;s office (if they offer dispute resolution services). Where the ACCC identifies a breach of the CCA or the Franchising Code, the ACCC can take enforcement action. The decision about whether to take action is guided by our Compliance and Enforcement Policy. ACCC action is more likely, for example, where the conduct demonstrates a blatant disregard for the law, is of significant public interest or causes substantial detriment to consumers or small businesses.

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course funded by the ACCC: www.franchise.edu.au/preentry-franchise-education). 2. Read the franchise agreement and disclosure document carefully.

financial risks associated with entering into the franchise agreement. 6. Keep records of any discussions you have with the franchisor. Ask the franchisor

The ACCC is not a dispute resolution body and cannot enforce your franchise agreement to confirm any representations 3. Obtain further information it makes in writing (e.g. claims to give you an indication of of how much you can expect to how successful your franchise earn each week). F might be. This may include looking at demographics such as age, buyer preferences and Dr Michael Schaper is deputy competitor activity in the area. chairman of the ACCC. The ACCC 4. Talk to as many current and has several franchising publications past franchisees as possible containing useful information for (their contact details must prospective franchisees, including be included in the disclosure a Franchisee Manual and a document). DVD about the Code. These are 5. Obtain advice from an available online at www.accc.gov. The Franchising Code of independent legal adviser, au/franchising or by calling the AD_ F RF L OJ AN_ 1 2 . p d f P a g e 1 1 4 / 1 1 / 1 1Conduct , 1 provides 0 : 2 5franchisees AM business adviser and accountant ACCCâ&#x20AC;&#x2122;s Small Business Help line with some protection to identify the legal and on 1300 302 021.

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HOW TO BOOST YOUR

Local area marketing is a franchisee’s responsibility, so it makes sense to get guidance on how best to maximise marketing performance. Rachel Walters has some suggestions on what to look for

PERFORMANCE M

arketing is seen by many as a dark art: you invest money, time and creativity into touting your business but it can be difficult to understand and measure its success. Of course as a franchisee you will be in the happy position of tapping into the tried and tested methods recommended by the franchisor and fellow franchisees, something an individual business owner

122| FRANCHISING MAY/JUN 2012

can’t do. However, it’s very important to track and test local area marketing (LAM) campaigns so you know what works for you and what doesn’t. Brochure drops and direct mail are a cost-effective, targeted form of advertising. Ensure you include a clear call to action, and an offer that allows you to track that particular campaign, such as “bring this brochure in for a 10 percent discount/free drink”

WWW.FRANCHISE.NET.AU

or “buy 2 get 1 free when you mention this brochure”. Failure to do this means you’ll have no way to monitor the success of your campaign. Put an expiry date on the offer so you can change them around and aren’t beholden to the same offer in three years’ time. There are horror stories of brochure distribution companies delivering to the wrong suburb or skipping important streets. By doing test distribution in

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small areas and monitoring the response, you can track the success of your distributor and your message. You’ll also discover which local areas have the highest concentration of customers. Pay attention to the timing of your campaign; school holidays are generally a bad time for mail, because when families return home to a large pile they’re less likely to pay attention to your message.

GET DIGITAL

think your product is anything to write about? Take “Feather and Bone”, the sustainable butcher, as an example: this weekly blog regularly has readers in stitches of laughter and is a great way to promote the business. Not only that, people place orders for meat using a link in the blog itself, so they know exactly how much business it generates. Most blog

Digital marketing presents so many great opportunities we recommend you take a course to gain an understanding of the opportunities and risks involved. The best kind of advertising is often generated through positive word of mouth. Happy customers aside, a good way to generate this is through sponsorship of a local team or

Choose your sponsorship carefully to ensure alignment with your target market, and negotiate to maximise your presence. Consider well-positioned banners, verbal acknowledgement in speeches, online display of your logo and co-branded collateral

One of the most measurable forms of marketing is online. Local search is an important tool, and although you pay for your presence on a site, you generally only pay per click. event. Choose your sponsorship sites will allow you to view all the Take time to think about all the carefully to ensure alignment data related to your page, so you different key words related to with your target market, and can track what kind of content your product or service to ensure negotiate to maximise your keeps people engaged. There are you maximise your coverage. presence. Consider wellsome great free online tools such If you have access to your own positioned banners, verbal as HootSuite and Google Alerts database, consider writing a AD_ F RGL OS E P _ 1 1 . p d f Pa ge 1 1 5 / 0 7 / 1 1 , 1 1 : 4 6 AM acknowledgement in speeches, that help you track the success of blog or tweeting special offers; online display of your logo and your digital marketing efforts. the only cost is your time. Don’t

p 1300 552 883

f 02 4284 6099

e sales@globalcoffee.com.au

www.globalcoffee.com.au

Here at Global Coffee Solutions we live and breathe coffee and as our name states,

we have a coffee solution for any situation!

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co-branded collateral. Once again, ensure you have an offer that lets you track success, for example: “Tigers supporters get 10 percent off our great coffee!” Keep in mind, sponsorship can also be gained through in-kind arrangements. Think about how your product or service may benefit the organiser and

TOP TIP

MAIL MARKET

A branded car, or even a wellpresented branded bicycle parked strategically and driven around town gives great local coverage. Make sure you include the business address and contact details

In the latest piece of research commission by market leader Salmat, Roy Morgan found that 74.5% of consumers diligently read the unaddressed mail they received, 65.1% recalled specific pieces of unaddressed mail, and 54.3% were directly influenced by the advertising, noting they were ‘more likely to shop at the store as a result of receiving their advertising in the mail’.

By doing test distribution in small areas and monitoring the response, you can track the success of your distributor and your message details. Franchisees who adopt leverage this instead of your this tactic frequently report locals hard-earned money. commenting on their new “fleet” Finally, although this isn’t – it’s amazing how one vehicle measurable, here’s a tip: a seen in several places can leave branded car, or even a wellthis impression. presented branded bicycle There are many ways to parked strategically and driven market within the local area, around town gives great local A D _ F R C R A MA Y _ 1 2 . p d f Pa ge 1 2 / 0 4 / 1 2 , 8 : 5 3 AM even within the confines of a coverage. Make sure you include franchise agreement. Be creative the business address and contact

and always consider how you’ll measure its impact before investing your time and money. F Rachel Walters is education and professional development manager, ADMA. ADMA Education provides comprehensive marketing courses. For more information visit www. adma.com.au/education

Own Your Own Store > Strong Brand > Huge Growth > Great Locations

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AEST

ATr u eLi f e s t y l eBu s i n e s s " Thel i f e s t y l ec ha ng eIde s i r e di st a ki ng s ha pe , wi t hr e a l t a ng i bl ebe ne f i t s . We wor ks ma r t , a sar e a l t e a m, ha v ef un a ndi mpr ov eourbus i ne s sa ndour s e l v e s i ne v e r y t hi ngwedoe v e r y da y-whi l s t ma ki ngapr of i tt os pe ndondoi ngt he t hi ng swet r ul yl ov et odowi t hour f a mi l i e s . ” —F r a nk , Re s i c e r tL i c e ns e dBui l di ngI ns pe c t or

Res i c er ti sar api dl yex pandi ngpr oper t yi ns pec t i onbus i nes swi t h es t abl i s hedl i c ens edoper at or soper at i ngi nWA,VI C, ACT ,NSW, QLD&SA. At r ul ypaper l es sbus i nes st hatdeal swi t hpr oper t y .I t i sal s oabus i nes swher ey ouc anwor kf r om home&s pendmor e t i mewi t hy ourf ami l y .Wear ec ur r ent l yl ook i ngf orl i c eneesi nWA, NSW,VI C, ACT&SAt oas s i s twi t hourex pans i on.

. . .

Benef i t sf orRes i c er tl i c ens eesar e: Ear ni ngpot ent i al bet ween$120, 000t o$250, 000 Runy ourowns c hedul e

. . . . . . . .

Nol eas i ngofpr emi s es Nos t oc k Nos t af fr equi r ed Sal esandmar k et i ngs y s t emss uppor t Yourl i c ens eei sas el l abl eas s et Ex c l us i v et er r i t or y I deal bus i nes sf ort hoswhol ov epr oper t y I deal bus i nes sf ort hos ewi t hf or mert r ade bus i nes sorpr oper t yex per i enc e

Ver yl i t t l eov er heads-phone,c ar ,i nt er net-t hat ’ si t !

Pr oper t yi nspect or sar ei nhi ghdemandnow i nar easof :

VI C,NSW,WA,QLD,ACT&SA

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How to|Training

Training is a key component of any franchise launch, and one of the undoubted benefits of being a franchisee Marie Trigger, Lollypotz franchisee

getting on

track I magine setting up your own business from scratch… working out how to organise the office, how to recruit staff, setting up operational systems, initiating a customer lead program, learning about your products…without anyone to give you pointers.

For a franchisee, the experience is very different. A good training program based on the experience of the franchise network will help set up a franchisee for success in business. What will vary is the length of training, whether or not the cost is included in the initial investment,

The most useful piece of advice is to listen and take notes of what people say, this includes customers, suppliers and the franchisor and his/ her team: you may need that information later 126| FRANCHISING MAy/jun 2012

www.franchise.net.au

how hands-on the education is, whether there is ongoing learning available, and the opportunity for flexible online study. So what do franchisees think of their training? Lollypotz is a chocolate bouquet gift business that can be homebased or a retail store. For Auckland franchisee Marie Trigger the training proved spot on. “We did one week of training which I found perfect. We did have a lot to learn so it enabled us to feel confident with what we were putting together – this

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3026 Franchising May/June.indd 1

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was really important to me, particularly as I was the only person in the network based in New Zealand. “The cost of the training was incorporated into the purchase price of the franchise, our training was based in Canberra and it included our accommodation and airfares. “The most important part of the training was of course the assembly of the bouquets as

they need to be professional and perfect. The training we received was very, very good; I arrived back from Australia and felt very comfortable training five staff before the Christmas rush.” Working in the freight consultancy business Garry Fryer, at Inexpress North Lakes, was also more than happy with the information gleaned in his training program.

We did have a lot to learn so it enabled us to feel confident with what we were putting together “The InXpress training (one week bootcamp) is included in the franchise fee, and includes lots of great information about the franchise and our carrier partners like DHL/TNT. We spend two days on the sales process, then finish up with a day of software training, territory planning/customer service/LAM and motivation.”

128| FRANCHISING MAY/JUN 2012

WWW.FRANCHISE.NET.AU

Marie Trigger, Lollypotz franchisee

The length of the training was just right, he believes. “We could train for two weeks easy, but it would be overload.

Hands on support

“The week of classroombootcamp comes after franchisees have done a ‘fast start’ program, then we follow up after bootcamp with hands on support visit within the first two to four weeks. “I found following a proven

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formula is the most important aspect of training. Too many people want to do things their way and not follow [the system] they have invested in.”

Looking back

Penrith based Greg McKay is a franchisee with Pack & Send, a retail based logistics business. He underwent his training quite a while ago: 1994 to be exact. “We are one of the very first franchisees and still very much involved, my career prior to buying a franchise was middle management with other unrelated industries and the freight industry. In those early days the most useful training element was meeting with suppliers.” So what advice did McKay find most helpful? “The most useful piece of advice is to listen and take notes of what people say, this includes customers, suppliers and the franchisor and his/her team: you

may need that information later.” Another long-standing franchisee, Jock Dean of Outside Concepts, Eastern South Australia, also understands his training period better with the advantage of hindsight; he’s clocked up more than a decade in business. “I undertook training over 12 years ago. The rules and regulations governing the building trade have changed a lot since then, but the outstanding element of the franchise was the ability to design a structure to specifications using a computer modelling system.

Gaining insights

“The most useful information I learned, however, was insights into customer awareness – body

INDEPENDENT TRAINING Of course supplementary to specific franchise system training there is online education available for prospective franchisees. The Pre Entry Franchise Education Program administered by Griffith University’s Asia Pacific Centre for Franchising Excellence is sponsored by the Australian Competition and Consumer Commission. The online modules are designed to reduce the franchisee’s risk of unrealistic expectations and help the franchisee make an informed purchasing decision. You can find out more about the free training at www.franchise.edu.au/pre-entry-franchise-education language, posture, even a small course in Feng Shui. This gave me a huge advantage in predicting the questions, and pre-empting customers’ thoughts, having all the answers ready, and all the while talking about their needs

The most useful information I learned, however, was insights into customer awareness – body language, posture, even a small course in Feng Shui

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Training|How to

and not coming across as a highpressure salesman. “Training took two weeks and I feel was too short. There is so much to learn about the building trade, the terminology, the different materials available, how to control and engage subcontractors, pricing quotations to win contracts. “It took another three months in the field to become partially proficient. Being a mathematician/ engineer, salesman and people

a week in head office franchisee training continues online for several months, he says. This means a new franchisee has the flexibility to train from their home or office in their own time. Rohan believes the most useful part of training is probably product knowledge. “There are many exciting new products available in the home improvement industry giving far greater variety of designs for entertainment

Following a proven formula is the most important aspect of training. Too many people want to do things their way and not follow [the system] they have invested in person is almost mandatory for this franchise.” Outside Concepts director Brian Rohan says that training has moved with the times. Now after

areas, carports, verandahs, pool enclosures, etc. “The training is paid for by the selling franchisee or by head office if it is a new territory.” F

SO WHAT SHOULD YOU LOOK FOR? A franchisee induction program should give you enough information on the system and business guidance for you to run your own franchise. Many franchisors offer extra support in the initial start-up period too, and ongoing training to keep you on track. Training essentials: • product knowledge • customer service • technical training • managing cash flow • business admin

WWW.FRANCHISE.NET.AU

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Advice|Finance

LOOKING AT THE

Check the financial figures before you decide to go ahead with a franchise investment, advises Tim Kilham

NUMBERS B uying a franchise business is a major undertaking and requires proper investigation. This process of researching a business is often called “due diligence”. There are a number of different types of due diligence that can be performed – including operational, legal, commercial and financial – and each of these is important. Perhaps the most important part of due diligence is about numbers: obtaining them, investigating them, checking the numbers, preparing your own numbers – all with the

132| FRANCHISING MAY/JUN 2012

WWW.FRANCHISE.NET.AU

object of deciding whether it is worthwhile to buy the business, and, if so, how much to pay. Let’s look at the numbers in more detail.

WHAT NUMBERS WILL YOU GET IN THE DISCLOSURE DOCUMENT?

A franchisor is required to give an intending franchisee a copy of the franchise system’s disclosure document at least 14 days before the prospective

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franchisee enters into a franchise agreement. The purpose of the disclosure document is to provide information about the franchise system to help the franchisee to make a reasonably informed decision on whether or not to invest in the franchise. The disclosure document must be prepared within four months after the end of each financial year. The Franchise Code of Conduct prescribes certain information which must be provided in the

Franchisors are not compelled to provide any numbers in the disclosure document that will help you assess the profitability of the franchise disclosure document and the document may provide additional information. The financial information that will be provided in the disclosure document will be found mainly at section 13 and section 19 of the disclosure document. Section 13 of the disclosure document will contain: • Details of the range of costs to start operating the franchise business. These costs are split into categories such as initial franchise fee, real property, A D _ F R H MS MA Y _ 1 2 . p d f Pa ge 1 2 8 / 0 3 / 1 2 , equipment, inventory, working capital, etc. • Details of recurring and isolated payments

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payable to the franchisor. These details will therefore include the initial payments, the ongoing fees and one-off payments. The numbers in section 13 will therefore give you an indication of what it will cost you to set up the franchise and what amounts you will have to pay the franchisor. These numbers though do not help you in any way determine whether or not the franchise will be profitable. The numbers to help with the evaluation of profitability will be found in section 19 of the disclosure document – that’s if the franchisor chooses to provide the numbers. Franchisors are not compelled to provide any numbers in the disclosure document that will help you assess the profitability of the franchise. Many disclosure documents will simply state at section 19 that ‘the franchisor does not give earnings information about the franchise’. Many prospective franchisees have expressed surprise to me that the franchisors are not required to provide earnings information. In my view that is not an unreasonable reaction, but I point out to franchisees that they are not obliged to part with their money if they do not get satisfactory information, 1 0 : 4 6 AM including earnings information, from franchisors. >> continues on page 137

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Finance|Advice

on the size of the premises and depending whether the required bond amount is one month’s or six months’ rent. Many other costs will vary greatly depending on the size, location and specific requirements of the franchise. Accordingly, it is no surprise that start-up costs for franchises in a particular system will vary greatly. What about the earnings information given at section 19 of the disclosure document (if indeed any such information is given)? How useful is it? What many franchisors typically do is provide

>> continued from page 134

In practice, I am also often amused (and amazed) by the number of franchisors that state in the disclosure document that they do not give earnings information and then in fact provide a mass of financial information separate to the disclosure document.

WHAT DO THE NUMBERS IN THE DISCLOSURE DOCUMENT TELL US AND WHAT DO THEY NOT TELL US? The numbers in the disclosure document are only, and can only be, a rough guide for a prospective franchisee. Take for example section 13, where the franchisor is required to provide details of the range of costs to start operating a franchise business. The most recent franchise agreement I looked at provided this range, and when all the numbers were added up the range of costs to start operating the business was between $197,000 and $510,000. A wide range indeed! This is not a criticism of the franchisor but an illustration of how the initial numbers can only be a broad guide. Actual fit-out costs, if you have retail premises, D _ F R C L E MA Y _ 1 2 . p d f Pa ge will A obviously vary greatly depending on the size of the premises. The rent bond will vary depending

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information for three sales ranges– high, medium and low. Typically, the sales range that these three levels cover is wide – in simplistic terms, the low level often means an unviable business, the medium level is for an average business and the high level will produce great wealth for the franchisee. The big question is – where will you be on that scale? The disclosure document does not tell you that. If forecast earnings information is provided then it is also a requirement that the information include the facts and assumptions on which the forecast is based. In practice, the forecast may or may not include the following numbers: • The salary to be paid to you, the franchisee • Interest on servicing loans (this is almost always excluded) • Depreciation • Tax These are major items. If they are not included in forecast earnings, then actual earnings for your franchise are likely to be significantly different to the forecast. The disclosure document will say whether or not these major items are included, but I often come across unsophisticated potential franchisees who do not understand what items are included or excluded, and that actual

WHAT OTHER NUMBERS ARE AVAILABLE? Whether or not the franchisor provides earnings estimates in the disclosure document, my advice to intending franchisees is always to try to obtain independent information to corroborate

HOW DO YOU WORK WITH THE NUMBERS TO MAKE A DECISION?

the information they have been supplied with. There can be a number of sources: • The best source of information is always other franchisees. The disclosure document is required to include a list of current and former franchisees. My advice to prospective franchisees is to talk to as many of these franchisees as is necessary, to get the information to enable them to produce forecast earnings for their

All the numbers you have been given or obtained are only a guide, no more or no less. Your task is to prepare the best possible estimate of what the numbers will be for your franchise earnings may be significantly different to forecast earnings shown in the disclosure document. In summary, then, the disclosure document will include the estimated costs of setting up the franchise – but probably only a very broad range – and it may or may not include earnings information. If it does, that earnings information is again likely to cover a very broad range, and may not include major items. What should be clear is that the numbers in a disclosure document are not, without further investigation, sufficient to establish how much a franchise will cost and whether or not the franchise will be profitable. 138| FRANCHISING MAy/jun 2012

existing franchise system, but they will provide a guide. • If the prospective franchisee is the first franchisee in a new system, and there are no existing franchises in that industry, there are probably industry benchmarks for items such as cost of sale, rent, wages etc. that are only a very rough guide, but they will be a starting point.

franchise. Where possible prospective franchisees should be talking to existing franchisees in areas with similar demographics, shop sizes, customer numbers etc., in order to compare like with like. • If the prospective franchisee is the first franchisee in a new system, there is probably another franchise system in the same industry – for example, if it is a new fitness franchise, there are a number of existing fitness franchises. If it is a retail food franchise, there are (many) existing retail food franchises. The numbers for a franchise in the new franchise system may be different to the numbers for a franchise in the www.franchise.net.au

The numbers you have been given or obtained are only a guide, no more or no less. Your task is to prepare the best possible estimate of what the numbers will be for your franchise. The best way to do this is to prepare a profit and loss forecast and a cash flow forecast, for at least the first 12 months of operations, on a month by month basis; 24 months would be preferable. You may be able to prepare these forecasts yourself, but more likely you will need the help of an experienced franchise accountant. Given I am an accountant who prepares such forecasts, this may seem like a self-serving comment, but any prospective franchisee who does not prepare detailed forecasts is naïve or foolish, or both. It is important to prepare profit and loss, and cash flow, forecasts. It is possible to make a profit and have no cash in the bank, and it is possible to have cash in the bank and not make a profit. That however, is not a topic for discussion in this article. Suffice it to say that for many businesses, to prepare one type of forecast without the other is about as useful as preparing no forecasts at all. The forecasts you prepare must be specific to your business. Unlike the numbers in the disclosure document which give a range for the likely investment, and give a range for likely sales and expenses, your forecast will contain the costs and revenue that you think you are most likely to incur. With these forecasts, finally, now, you have the numbers to decide whether it is worthwhile to buy the franchise, and, if so, how much to pay. F Tim Kilham is a director of Lanyon Partners Chartered Accountants and heads up their franchising division.

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How to avoid getting it wrong

O raynia theodore Raynia Theodore is principal, corporate advisory and franchising team at Mason Sier Turnbull Lawyers

ccassionally after entering into a franchise agreement, franchisees discover that franchising or the franchise system they have entered is not right for them or the franchise business does not bring the profit initially anticipated. Too many potential franchisees assume that buying a franchise is an easy way of getting into business. They are prepared to pay for the systems that have been developed by the franchisor but they often forget that with such a privilege comes the need to conform to the particular systems and the directions of the franchisor, something many find challenging. When a franchisee attempts to modify the established system the franchisee runs the very real risk of damaging the integrity and momentum of the entire brand and also the risk of losing their business under the terms of the franchise agreement. If you are looking at buying a franchise you should assess the franchise system and ask many questions, including the following: • Is the industry the right industry for me? • Can I work the core trading hours, even if they include working seven days a week or waking up at 2-3am every morning? • What am I good at – what are my strengths and my weaknesses? • What sort of environment do I wish to work in? • How many other commitments do I have?

If you walk away and abandon the franchise you will risk immediate termination of the agreement and loss of your entire investment • What are my plans for the next five years? • Am I willing to follow a system? • What is involved in the day-to-day running of the franchise? • How long has the franchise been established? • Have any franchisees in the system failed? If so, why? • What training and support is offered – initially and ongoing? • What marketing will be required to market the franchise? How is the marketing funded? • How long is the franchise term and can the term be renewed? • What happens if I wish to sell or get out of the franchise? What are the terms and conditions? 140| FRANCHISING MAy/jun 2012

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Remember that no business, franchise or not, is risk-free. At the end of the day, it all comes back to doing your homework before entering into the franchise. Talk to existing franchisees, competitors and other business owners in the area. Know that you want to be part of that market. The success of the franchise is also dependent on your efforts and personal commitment, that of your staff and how hard they are prepared to work.

Getting out

Once you are in a franchise and want to get out, your main options are: • Discuss the situation with the franchisor. It may be that the franchisor can work with you to resolve any issues and develop strategies to improve your situation. • Determine whether the franchisor may wish to buy back your franchise or at least some of your assets. • Attempt to sell your franchise, which will require adherence to a process determined by the franchisor and, in most cases, set out in your franchise agreement. The process may involve you having to offer to sell the franchise to the franchisor. • If required and merited, invoke the dispute resolution/mediation process in an endeavour to come to an arrangement with the franchisor for you to exit the network. Please remember that it is not as simple as walking away from the franchise. A franchise agreement is usually a long term agreement and cannot be terminated early. If you walk away and abandon the franchise you will risk immediate termination of the agreement and loss of your entire investment. The franchisor may also be able to seek damages from you for the loss of the benefit of the franchise agreement and recover the money it would have otherwise earned for the entire term of the agreement. F

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Opinion THE SKETCH | TRENDS AND DEVELOPMENTS

The business of learning

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

ew readers of this column will remember the 1991 report of the Franchising Task Force. It led to the introduction of the voluntary selfregulatory Franchising Code of Practice which two decades ago was seen as the most appropriate mechanism for regulating the franchising sector. (Things of course did not work out as planned. The Franchising Code of Practice experiment was not successful. It was introduced in 1993 but lasted only until 1996 and was replaced by the current mandatory Franchising Code of Conduct in 1998). More pertinent to this column which, at the editor’s request, addresses franchisor education, is that the 1991 Task Force concluded that “some franchisors have entered franchising without an appropriate understanding of the basic elements and have failed to appreciate the level of commitment and responsibility to be provided to franchisees”. The Task Force noted that a recurring theme in the submissions made to it was the “significant weakness in the level of education and training of potential franchisors, franchisees, advisers and service providers”. What progress has been made over the last two decades? Substantial progress in my opinion. The Franchising Code of Conduct is of course entitled to some of the credit as is the much greater awareness of franchising among all stakeholders, as franchising has developed into a significant economic sector which attracts sustained media interest. But franchise sector education has had a very significant role in raising standards. And that is a beautiful thing. The Franchising Code of Conduct requires the franchisor’s Disclosure Document to advise prospective franchisees to “consider educational courses”. No

Franchise sector education has had a very significant role in raising standards regulatory document requires or advises prospective franchisors to consider or attend educational courses but there is today a wide if not universal recognition among franchisors that education is an essential element of best practice. Franchisors and prospective franchisors, and their management teams, generally appreciate that responsible and successful franchising in a competitive and challenging market demands a suite of expertise and that education in all aspects of franchised business operation – managerial, financial, regulatory, operational – is necessary. The Australian franchising sector is well served 142| FRANCHISING MAY/JUN 2012

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in the education space. Sector education is a priority of the FCA and its Franchise Academy is currently developing a new Accredited Franchise Executive program to supplement its Certificate and Diploma courses. The sector’s regulatory body, the ACCC, is active in sector education and franchising subjects are now taught in some, albeit regrettably few, universities. There is a growing library of franchising material and publications and a number of private providers of franchising related education. Franchise systems are active in developing and rolling out their own educational initiatives for their staff and their franchisees. As the reader, you may have noticed that your columnist, while proselytising the importance of franchisor education, has not ventured an opinion as to its meaning and purpose. Given that he is not only a career academic dedicated to educating university business students but the Governor of the FCA’s Franchise Academy with the responsibility for developing franchise sector education initiatives, this may be regarded as a strange omission. It’s actually a very difficult and very interesting question on which there is a diversity of opinion. Over a century ago Bishop Creighton suggested that “The one real object of education is to leave a man in the condition of continually asking questions”. The more recent comment of Ayn Rand may nevertheless be more realistic as a strategy for franchisor education in which there are fundamental principles which must be understood: the student must be “taught the essentials of the knowledge discovered in the past – and be equipped to acquire further knowledge by his own effort”. If we can develop franchisor education programs which provide franchisor personnel with the required knowledge to franchise effectively and responsibly while equipping them with the capacity, and the passion, for continuing inquiry and improvement we will have succeeded. F

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Opinion PEOPLE | LEADERSHIP

Who do you think you are?

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

ave you ever wondered why you are the way you are and other people, even from your own family, can be so different to you? Last year I attended a fascinating workshop at a psychology conference with Professor Timothy Judge, an eminent academic from the US, where he shared findings from studies on hundreds of thousands of twins separated since birth and raised apart. This research has sought to find the extent to which we are a product of our DNA or our life experiences.

What makes you, you?

Professor Judge, a humble, quietly spoken man, was almost apologetic as he delivered the following controversial conclusion. The majority of who you and I are today, between 50 percent and 75 percent, was predetermined in our parents’ bedrooms before we were born! Not just our weight and how we look, but how we think and behave. It appears that our DNA has a big impact on the sort of work we like, whether we emerge as a leader, how stressed we get and, ultimately, how successful we are financially. This does not mean we have little control over our lives and can blame our foibles on our DNA. Rather it means each of us has been given specific

The majority of who you and I are today, between 50 percent and 75 percent, was predetermined in our parents’ bedrooms before we were born characteristics that may or may not work in our interests, depending on the situations we find ourselves in.

Play to your strengths

As a franchisee you will be largely left to your own devices in running your businesses. While knowledge and skills are relatively easy to learn, attributes such as perseverance, physical energy, work ethic, orderliness and enjoyment of interacting with other people are not. So do a realistic assessment of the attributes needed to succeed in a particular business and how these match up with your own tendencies. For instance, make an effort to talk to successful people in franchise systems you are interested in. Be honest and consider whether they share similar traits to you. Also 144| FRANCHISING MAY/JUN 2012

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ask franchisors what they think are the important attributes for success in their business model. Another lesson from this research is to try to match your day to day work with your strengths. This can mean having people and systems around you to compensate for things you are not naturally good at. Recruit people that balance your strengths and weaknesses. For instance, I am tragically hopeless at being organised, so I have a team of organised people around me. But I am creative and a reasonably good writer (I reckon so anyway) so I try to focus on these things, because this is where I can add the most value to my business. Do you have the energy to work 60 or more hours a week getting a business established? Do you like interacting with all types of people? Do you enjoy taking responsibility and leading a team? Can you cope with some stress and uncertainty? These are all important considerations because as the saying goes, a leopard doesn’t change its spots.

Sense of purpose

Speaking of change, here’s a final tip. When trying to make personal changes in your life, accept that you are likely to face strong resistance from invisible forces within that you may not understand. So it is important to have a strong sense of motivation, fueled by meaning and purpose, if you want to do something significant like run your own business. Ask yourself, why do I want to do this? Do I feel suited to this? While a franchisor’s systems will help you get started, the success of the venture will largely be up to you. Unfortunately we don’t get to choose our parents so be grateful for the positive qualities you have inherited, accept who you are, and make the most of it. F

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

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

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

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

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

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

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

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

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Checklist How to|Ending the agreement

TO DO LIST | HELP GUIDE

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

20 things to check before you invest

Before you jump on the train, make sure you’ve got a good idea of how to get off

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A-Z listings

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

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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 proďŹ ts and to maximise proďŹ ts even further, we added 3 other services, Upholstery, Leather and Mattress Cleaning.

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

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Start up costs from: $43,500 + GST PROFILE:

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

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

Start up costs from: $34,990 + GST

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

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

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

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

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

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

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

ProfilE: Bakers Delight, Australia’s most successful bakery franchise was established in 1980. An Australian owned company, Bakers Delight has over 700 bakeries employing more than 15,000 people, serving 2 million regular customers per week throughout Australia, New Zealand, and Canada. The network is seeking passionate people who are ready to embark on business ownership immediately or to begin training for future opportunities through our structured training program. Bakers Delight has a 13.9 per cent share (Roy Morgan single source data June 2011) of the $2.8 billion Australian bread market.

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

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

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

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

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

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

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

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

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

Start up costs from: $129,600 + GST ProFilE: Australian owned Cafe2U is the world’s largest mobile coffee company, with over 117 franchises in Australia and 180 worldwide. The business is rapidly expanding due to a simple and proven business model based on weekday success. Cafe2U now included the unique “Acceleration Package”, which fast tracks the new business forward three months. The “Acceleration Package” includes a four week training programme, a personal franchisee coach, revenue guarantee and an ongoing support package. Offering free events co-ordination and strong marketing and digital support, Cafe2U provides a perfect system for all looking to change their lifestyle and be their own boss, without the hassles of staff or rent. Contact Cafe2U now should you wish to make a lifestyle change.

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

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

Start up costs from: $10,000 ProfilE: Chicken Treat is a proud Australian owned and operated Company that has built an enviable reputation over more than 30 years. Home to Two flavours of Chicken our network is continually growing and currently has close to 100 stores across Western Australia, Queensland and Tasmania. With the substantial backing of the Quick Service Restaurant Holding (QSRH) Group behind the brand, Chicken Treat enjoys significant buying power in products, marketing systems and advertising reach. If you can see yourself as a passionate business owner, enjoying the enviable reputation of being your local community hero, please contact Neil Soares, our Brand Franchise Manager for an obligation free chat.

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

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

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

Start up costs from: $295 - $550K

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

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

• International expansion • Performance & profit improvement

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

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

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

Start up costs from: $22,500

Start up costs from: $200,000

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

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

Phone: 1300 FASTWAY Fax: 02 9264 4966 Website: www.fastway.com.au

Phone: 02 9332 2824 Contact: Holly Boal Website: www.enviefranchise.com.au

Start up costs from: $25,000 Profile: EnVie is an innovative new approach to inspirational Women’s Health and Fitness. There’s a gap in the fitness marketplace for women that is simply not being met. The customers are there, and steadily growing, but the product isn’t. We recognize the need, and the enormous opportunity to build a successful new concept that is miles ahead. Incorporating the best elements from a range of franchise models an EnVie business is completely systemised. A royalty fee based on profit share means franchisee and franchisor have the mutual goal of your SUCCESS. The business is further supported by extensive training and ongoing coaching from a team of fitness, business, franchise, operations, marketing and sales experts with a combined 87 years of experience in the franchise and fitness industry. EnVie is now seeking enthusiastic and passionate business owners with a determination to succeed and a passion for health and fitness. In return, we offer the best model in the industry today, with sites ready and available for opening.

ProFile: Whether you crave a better lifestyle, control over your income or a more rewarding career, a Fastway Couriers Franchise can help you take control of your future. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • Low start up costs • Unparalleled business support and training • Guaranteed income packages* • Exclusive Territories • A well known and trusted brand • A perpetual franchise agreement with no • No weekend work ongoing fees So, if you’re ready for a positive change we’d love to hear from you on 1300 FASTWAY or visit us at www.fastway.com.au *Conditions apply

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

Phone: 1300 798 501 Fax: 1300 798 502 Website: www.franchiselegal.com.au Contact Melbourne: Ilya Furman Email: ilya.furman@franchiselegal.com.au Contact Sydney: Heath Adams Email: heath.adams@franchiselegal.com.au Contact Brisbane: Maurice Hannan Email: maurice.hannan@franchiselegal.com.au

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

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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.

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A-Z listings Phone: 0246484440 Contact: Wayne McNiece Email: wayne@games2u.com.au Website: www.games2u.com.au

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

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

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

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

Phone: 1300 CAR WASH Fax: 03 9923 6490 Contact: Sanam Ali Email: sanam@geowash.com.au Website: www.geowash.com.au Start up costs from: Roaming Van Model approx $44,000 + GST Shopping Centre Model approx $150,000 + GST

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

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

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

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

Start up costs from: $38,500 inclusive

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

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

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

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

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

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

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

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

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

Start-up costs from $15,000 ex GST Start up costs from: $44,000 ProFilE: lnk on the Run is Australia’s premium mobile supply and refill service catering to the growing market of lnks, laser and copier toner cartridges to both homes and businesses. More and more we hear of consumers frustrations with the costs associated to run the printer at work and/or home. lnk on the Run offers not only competitive pricing on branded product but a green and more cost effective alternative of refilling. Opportunities are available throughout Australia with no technical expertise required as full training and standing systems ensure you will have the foundations for a successful business.

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

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

Phone: 02 8205 1334 Fax: 02 8205 1335 Contact: John Cabral Email: enquiries@jempp.com.au Website: www.jempp.com.au Start up costs from: $99 per month

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

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

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

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

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

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

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

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

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

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

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

Start up costs from: $25,700 + GST

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

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

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

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

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

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

Start up costs from: $250,000 (Approx) ProfilE: With over 65 stores and 24 years of retail experience, Australia’s premier retailer of knives, kitchenware, outdoor and leisure tools has developed a category leading brand. Training: Our comprehensive training ensures that franchisees are experts in their field. It’s YOUR business: Franchisees choose their own stock, ensuring they are in control of their business. Product and Pricing: Franchisees benefit from our exceptional buying power as well as exclusive high margin house brands. Customer Service: Uniquely, stores have a “demonstration table” which allows customers to trial products before they buy Marketing: 92% brand recognition achieved through in-store promotional material, catalogues, on-line and magazine and newspaper advertising Communication: Franchise meetings, store visits from support office and our much anticipated National Conference ensure you are a part of a team.

Start up costs from: $40,000-$110,000 ProfilE: Koalakrane franchisees own and operate amusement crane machines in locations such as supermarkets, pubs, clubs and malls. We are the experts at running these machines successfully and profitably and have over 100 owner operators in Australia and New Zealand. Our business is easy and fun to operate. Koalakranes appeal to people of all ages and provide a very lucrative return. Our machines are stocked with exclusively licensed prizes – including the biggest and best sporting brands in Australia. We provide full and ongoing support while our franchisees enjoy the synergy that comes with being part of Australasia’s largest amusement crane group.

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

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

Start up costs from: $210,000

Start up costs from: $79,900

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

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

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

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

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

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

Phone: 1800 686 997 Fax: 02 8569 0901 Contact: Ben - Sales Manager Email: sales@magazinevending.com.au Website: www.magazinevending.com.au

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

Start up costs from: $29,550

Start up costs from: $22,000

ProFilE: Magazine Vending Exclusive Distribution Rights

ProFilE: The Management Institute of Australia is a Nationally Registered Training Organisation.

Magazine vending is the first proprietor offering this unique innovative concept to the new age vending machine industry. We partnered with established brands to support a new vending concept that would open doors to a new network in vending, where we could offer the consumer a product as an added convenience.

We have Developed a Training industry opportunity for talented individuals to leverage their skills and to achieve greater returns for their training skills. Become part of a proven business model and gain access to the current scope of over 60 Qualifications! As an industry leader you can build your business NOW! We take care of the compliance issues and tendering so you can get on with running your business and looking after your clients.

We approached ACP Magazines and Wurlitzer with our idea and after two years of intensive research and development, in all aspects of the business from location demographics, supplier agreements, to the mechanics and manufacturing of the state-of-the-art Magazine Vending Kiosks, we are now launching our state of the art Magazine Vending machines across Australia.

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

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

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

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

ProFilE: 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.

Phone: +613 8540 0200 Fax: +613 8540 0202 Contact: John Sier Email: john.sier@mst.com.au Website: www.mst.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: $100,000

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

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.

Phone: (08) 9277 8666 Fax: (08) 9277 9666 Contact: Steve Pynt Email: spynt@muzzbuzz.com.au Website: www.muzzbuzz.com.au

Phone: 1800 NANOTEK (1800 626 683) Contact: Franchise Recruitment Manager Website: www.nanotekcarcleaning.com.au Start up costs from: $45,000 + Car Lease

Start up costs from: $299,000

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

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

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

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

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

Start up costs from: $250,000

ProFilE: NightOwl is Australia’s largest stand-alone convenience brand with franchising opportunities available nationwide in a range of demographics and business models. The NightOwl Convenience footprint varies in size including high profile CBD and suburban locations of 50m2 to 200m2, offering impulse and convenience at its best. NightOwl Super stores offer “more choice and more value” in a distinctive large format sized between 200m2 to 500m2 offering a more in-depth shopping experience. NightOwl is a member of several buying groups with buying power of well over 1.5 billion dollars. This means NightOwl can deliver value to customers and provide guidance on maintaining strong profit margins for franchisees.

ProFilE: Oporto is a 100% Australian-owned fast food franchise that specialises in freshgrilled chicken and burgers. Oporto opened its first store in North Bondi in 1986, stunning the locals’ taste-buds, with its unique flavour profile. It quickly gained a growing army of fans, establishing the first franchised store in 1995. Today Oporto has over 140 stores in Australia, New Zealand, USA and China, serving over 13 million customers per year. Oporto has developed into a strong player within the quick service restaurant market over the past 2 decades and this growth is set to continue. Opening an average of 15 stores a year has ensured Oporto are one of the few companies to have featured in the BRW ‘Fast Franchise’ issue every year since its inception in 2004. Become part of this great Aussie success story - Just Gotta Go Oporto!

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

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

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

OrderMate Style Guide

ProFilE: OrderMate is the complete multisite franchise POS solution. Version 1.0 May 2011

OrderMate was established in 2001 to service the food and beverage POS market. Its success relies upon its uniqueness from the competition which is often generic and off the shelf. Easy to use front of house interface, whilst still giving you the powerful backend reporting to drive your business. OrderMate gives you the tools to track and manage the KPIs of your franchisees in real time. We have a proven track record of delivering a return on investment within 12 months. Our nationwide network enables us to rollout, service and support large scale projects.

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.

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

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

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

Start up costs from: $80,000 ProfilE: Pizza Hut is the leading global pizza franchise, with over 12,000 restaurants throughout the world and is part of the quick service restaurant giant, Yum! Restaurants International. Franchising with Pizza Hut gives you the financial control of owning your own business combined with the support of a historically successful global company. With exciting new store opportunities available throughout Melbourne/Regional Victoria, Perth/Western Australia, Regional New South Wales, and South East/Regional Queensland there has never been a better time to join.

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

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

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

Start up costs from: $229,000 inc equipment

Start up costs from: $93,950 plus van

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

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

With 24 gyms open or scheduled to open by end 2011 and a further 21 territories sold, Plus Fitness has a clear goal of establishing over 75 gyms by end 2012.

Phone: 0433 128 981 Fax: 03 9388 8679 Contact: Paul Gooch Email: paul@pwoprofessional.com Website: www.pwoprofessional.com ProFilE: PWO Professional has an extensive consulting background in the corporate, government and arts sectors. We are a professional services company that specialise in creating optimal process and written instructions for your internal and external clients. Our specialty is understanding the complex and assisting franchise groups to communicate with internal and external customers in a clear and concise manner. What we do: • Process – Design mapping, business process re-engineering (BPR) and process design training. • Writing – Operating procedure manuals, user procedures, instruction guides, editing, proofreading and web content. • Optimisation – Providing clear and concise written instructions and developing efficient process.

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

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

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

Phone: 07 5455 3822 Fax: 07 5455 3616 Contact: Lionel Hedt Email: lionel@safetyquip.com.au Website: www.safetyquip.com.au

Start up costs from: $68,500 + GST

Start up costs from: $180,000

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

• • • • •

Run your own schedule No leasing of premises No stock No staff required Sales & Marketing Systems

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

Property inspectors are in high demand NOW in areas of NSW, WA, VIC, SA & ACT.

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

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

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

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

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

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

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

ProFilE:

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

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

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

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

Safe Kids In Daily Supervision

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

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

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

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

ProFilE: Rewarding Business - Make a difference. Award winning Safe Kids In Daily Supervision (sKids) was founded in 1996; with continuous expansion accredited to a fun, learning and caring based program we now offer services to over 85 primary school based sites in New Zealand. Now in Australia, using the foundations of the program’s success and our passion for providing fun, structured and safe Out of School Hours Care (OSHC), we are building on our efforts and services offering Master Franchises and local franchisee opportunities in every state. If you are looking to work with children, make a difference and own a business that is both financially and emotionally rewarding then talk to the award winning team at sKids.

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

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

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

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

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

ProFilE: Snap-on Tools is the global leader in developing and manufacturing innovative tools and equipment predominantly for the automotive industry. Franchisees operate from a custom built mobile store that takes the in-demand product direct to the customer’s workplace. Extensive training and ongoing support is provided – no previous mechanical experience required. Operating in Australia for over 21 years, Snap-on Tools is one of the longest running and most successful global franchises, with a proven and profitable business model and was named Best Value Franchise System by Smart Investor Magazine. Today Snap-on Tools is seeking to expand its franchisee base in Australia, offering an exclusive finance package to support the transition of suitable candidates into their own successful business.

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

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

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Start up costs from: $450,000

Snooze provides ongoing support to franchise partners across marketing, product and sales training, visual merchandising and IT. By consistently striving for innovation and quality, Snooze remains an industry leader, sharing benefits with franchisees and customers alike. With an aggressive growth strategy firmly in place, further success for Snooze is assured as it continues to attract enthusiastic franchisees and seek strategic store locations.

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

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Phone: 07 5577 8166 Fax: 07 5577 8266 Contact: Max Collins Email: max@socialmediabusinessboosters.com . Website: p d f www.socialmediabusinessboosters.com Pa ge 1 3 9 1 8 / 0

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Start up costs from: $15,000 - $35,000

ProFilE: As one of Australia’s longest-running franchised business and with more than 70 stores operating across the country, Snooze has proven itself a consistent franchise performer. It has been voted amongst the Top 10 Australian Franchise Businesses 2011 by topfranchise.com.au.

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

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

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

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

Profile: • Caltex Star Mart is Australia’s number 1 convenience retailer with locations in every State and Territory across the country. • The Star Mart convenience network consists of over 630 stores nationally. • Franchisees operate approximately 85% of Caltex’s retail network. Our world class business model, merchandising and field support has set the benchmark for convenience retailing, making Caltex the number one convenience retailer throughout Australia. A select amount of Caltex Star Mart opportunities now exist for high calibre franchisees with a passion for retail and a burning desire to be successful. To discover more about Caltex’s exciting franchise opportunity, please visit www.caltex.com.au and click on ‘Franchising at Caltex’.

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

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Phone: 07 3221 0211 MAY/JUN 2012 FRANCHISING | 161 Fax: 07 3221 0822 Contact: John Watt Email: john.watt@supanews.com.au Website: www.supanews.com.au Start up costs from: $300,000

PROFILE: Strategic Lifestyle So organisations in the in When some people th money, or maybe a la believe prosperity is s By utilizing the resour debt, dramatically inc the lifestyle you deser

Take the next step an

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A-Z listings Phone: Toll Free Australia 1800 630 355 NZ 0800 444 618 fax: 07 3852 4081 Contact: Franchise Administrator email: ssa@subway.com Website: www.subway.com

Phone: 1800 788 335 Contact: John Newton Email: franchisesales@stufflers.com Website: www.stufflers.com Start up costs from: $45,000 ProfilE: This exciting new franchise has been franchising in Australia for just over a year. Building on the successful growth of shopping centre bear making stores, Stufflers is all about making stuffed animals at kids’ parties and events using the Stufflers unique mobile machine system. With clothes, hearts and special carry carts - Stufflers is the next party phenomenon. The franchise is best suited to a stay at home mum that has 2 days available midweek to work on our unique local marketing programs. As part of your $45,000 franchise fee, you will receive 8 mobile Fluffenstuff machines that are custom built by Stufflers. Our opening launch price of $45,000 is substantially lower than the $500,000 needed to open a retail store.

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

Phone: 02 9569 7866 Fax: 02 9569 7811 Contact: Graham Streeter, General Manager Business Development Email: graham@sumosalad.com Website: www.sumosalad.com Start up costs from: $$350,000 plus GST ProFilE: SumoSalad has enjoyed phenomenal success and growth since its inception in 2003 and has built a strong, trusted and recognised brand in the food retail industry with loyal customers following the brands continual expansion into key sites throughout Australia and abroad. With obesity now a global epidemic, such an overwhelming positive response from customers, industry bodies and franchisees is no surprise. SumoSalad is now providing healthy eating to over 145,000 people each week in many of the best sites across the country, mainly positioned in central CBD and strong performing suburban shopping centre locations. Due to increased visibility, awareness and convenience, our brand has grown in strength and more importantly popularity and profits. The media are continually pushing consumers towards leading a healthier lifestyle and SumoSalad is pioneering this change in the Fast Food industry.

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

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

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

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

Start up costs from: $99,000

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

ProfilE: If you put a $16 Billion dollar industry together with a massive demand for fast casual dining and Australians search for amazing new flavors then you have The Burrito Bar. Straight from the streets of Mexico and San Francisco The Burrito Bar brings the excitement color and street flavors to your door. • High volume business Turn Overs currently in excess of $1 million dollars • Easy to Run system with on line training and in store business support • SEX appeal. The burrito Bar is the latest kid on the Block We want Partners who are: • Passionate ,Crazy , innovative leaders • Have a passion to succeed.

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

the chocolate room

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

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

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

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

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.

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

ProFilE: ‘Think FRANCHISE Specialist Franchise & IP Advisers’ is a law firm that offers its clients more than other firms. Executive Director of ‘think’ Steven Clare is a Lawyer with Master of Laws qualifications (with Honours) and has spent time in the franchise business sector itself as General Counsel and COO for a major Australian franchise operation (APL). Which reported in 2008 a combined franchisee entertainment revenue of up to $130 million AUD. ‘Think FRANCHISE’ acts for both franchisors and franchisees. If you are a franchisor or prospective franchisor, ‘think’ can develop your business into a franchise system, providing you with legal and other strategic advice. The firm is a leader in providing cost effective solutions that are relevant to their client’s needs. Visit: www.thinkfranchise.com.au for more information.

Phone: 0411 517 770 (AUS) / 0275 093 385 (NZ) Contact: Wayne Armstrong / David Thexton Email: admin@thextonarmstrong.com.au Website: www.thextonarmstrong.com.au

Phone: 1300 TOP SNAP (1300 867 7627) Contact: Rob Watkin Email: rob.watkin@topsnap.com Website: www.topsnap.com

Start up costs from: $65,000 + GST

Start up costs from: $39,000 + GST

ProfilE: With over 40 Franchisees and growing rapidly across Australia and NZ we believe that we have the #1 Business Consulting System in Australasia. We are looking for people with previous business or corporate experience, to work with business owners to help make their businesses stronger, more profitable and therefore more valuable. Our Business Success Programme is designed to offer high end consulting services to small and medium sized business using our proprietary tools, training and processes. The consulting industry is growing rapidly as most Business Owners do not have the skills to manage or grow their businesses. Only one in five businesses survives over ten years. The Consulting Industry is recession proof and actually improves when trading conditions get worse.

ProfilE: Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you! We are currently looking for positive, enthusiastic, customer-focused individuals to build their own professional photography business, with the support of an established franchise system behind them. As a leading and fast-growing property photography franchise, we have photographers located across the country servicing the real estate industry’s growing demands for property photography and marketing tools. In recognition of this outstanding growth, Top Snap was recently ranked 17th in the 2011 SmartCompany awards, which recognise and celebrate Australia’s fastestgrowing SMEs.

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

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

ProfilE: Total Tools specialises in trade and industrial tools carrying an extensive range of the worlds leading brands. Total Tools also has its own private brands including TTI, Mastercraft Value, Detroit, Guardall, Iron Air, Hornet & HRD. The Total Tools brand promise is to have the broadest range of tools available on the market. This, backed by the unrivalled retailing standards in the tool industry and experienced staff offering professional advice and service, has firmly established Total Tools as the market leader in professional tools for the people who use tools for a living. There are currently 31 stores forming the Total Tools group with representation in Victoria, New South Wales, South Australia & Queensland, with more stores planned nationally.

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

Phone: 1300 139 913 Fax: 1300 133 338 Contact: Darren Farrell Email: dfarrell@trusonic.com.au Website: www.trusonic.com.au

Phone: 03 9413 1594 or 0488 223 022 Fax: 03 9413 1401 Contact: Russell Desa Email: russell.desa@unitedpetroleum.com.au Website: www.unitedpetroleum.com.au/ franchising/welcome

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

Start up costs from: $400,000 upwards

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: Australian-owned company and has become one of the largest independent fuel companies with over 270 convenience retail sites throughout Australia. United continues to invest heavily in its stores and systems which has earned the trust of the people and respect of major competitors. United franchisees enjoy ongoing support, guaranteed minimum income on Fuel Commissions, merchandising support, a national promotional program, five week induction program, on-going training, an exclusive affiliated partnership with the MYER one program.

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

United is a proud member of the Franchise Council of Australia (FCA) and was awarded 2011 Canstar – Most Satisfied Customers (Service Stations).

Phone: 02 9420 9933 or 0402 295 977 Fax: 02 9420 9811 Contact: Samuel Hamrosi Email: sam@vanitybar.net Website: www.vanitybar.net ProFilE: Vanity Bar offers one of the most unique business opportunities available in Australia. We have worked long and hard to build a business system that offers our franchisees a great return on their investment and a solid cash flow to help them achieve their financial and lifestyle goals. Essentials vending - smart, compact & convenient. • Low Entry Cost. • Unique Concept. • Great lifestyle business. • Exclusive product range. • Great ROI. • Ultra-reliable high tech generation II Vanity Bars now available. Secure your area!

164 | FRANCHISING MAY/JUN 2012

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

ProFilE: V.I.P. Home Services was the first company to start gardening franchising in 1979. Now, V.I.P. has over 1100 franchises employing over 500 staff. V.I.P. has franchise opportunities available in: • Garden Maintenance and Lawn Mowing • Home Cleaning • Commercial Cleaning V.I.P. offer franchisees comprehensive training, a solid support system, exclusive territories and an established customer base along with the chance to be their own boss and choose the hours they want to work. In 2009 & 2010 V.I.P. was declared the Best Franchise System in Australia under $50,000 by the Financial Review Smart Investor magazine.

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A-Z listings

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

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

This pent up demand for gourmet coffee in the workplace is very poorly met. Each day, thousands of workers trek to the nearest café to pay as much as $4.00 for their morning and afternoon coffees. This is the premise of Xpresso Delight - transplanting the cafe into the heart of the workplace at a fraction of the price that people pay normally.

TO LIKE

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PROFILE: Invest in an Xpresso Delight franchise and seize the opportunity to profit from one of the fastest growing markets on the planet. As the number of savvy, educated coffee drinkers has boomed, the market has exploded!

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

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

• Giveaways

Start up costs from: $20,000

• Latest news

ProfilE: YogaBugs is imaginative, interactive and fun for children aged 2 to 12 years, postures, breathing and relaxation techniques are woven together into fun stories and games. Being non-competitive & fully inclusive, children are always the heroes of their YogaBugs adventures.

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Breathing improves concentration and energy levels & promotes healthy sleeping patterns. Postures strengthen the core stabilising muscles & assists in reducing childhood obesity. Relaxation aids in better memory retention, whilst calming symptoms of anxiety and nervousness. A YogaBugs Franchise gives you exclusive rights to a Territory, start from $20,000 and can be run from a home based office.

Your essential guide to buying a franchise

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INCORPORATING FCA NEWS

Companies in this issue 10 THOUSAND FEET

147*

HUDSONS COFFEE

117

INK ON THE RUN

ANYTIME FITNESS

15*

JANI KING

APPLIANCE TAGGING SERVICES

58*

JEM PROMOTIONAL PRODUCTS

AUSTRALIAN FITNESS MANAGEMENT AUSTVENDING

47 74 113*

AUTOBARN

24*

BAKERS DELIGHT

168*

BEDSHED

56*

BEN & JERRY’S

11*

BRIAN TRACY

65*

BURRITO BAR

27*

CAFE2U

39*

CALTEX

82 – 83, 84 – 85, 143*

CHICKEN TREAT CLEAN GREEN STRATA

69* 137*

* indicates FCA member

35*

ALLIANCE AUSTRALIA

APPLIED MARKETING SCIENCE

FRANCHISE COUNCIL OF AUSTRALIA

6 28*

JIM’S BUILDING

88 17*

111*

SMITH & SONS

KING OF KNIVES

13*

SNAP FITNESS

131

37*

SNAP ON

SNOOZE

99*

KOALA KRANE KWIK KOPY

100*

LEADERSHIP MANAGEMENT

57*

SUBWAY

87*

SUMO SALAD

127*

SUPERGEEK

109*

LUXAFLEX MADDOCK SOLUTIONS MAGAZINE VENDING

145

MANAGEMENT INSTITUTE OF AUSTRALIA

77* 25* 71 120

MICRONET

63*

33*

MR RENTAL

21*

FASTWAY COURIERS

167*

MUZZ BUZZ

79*

FLOWERS BY FRUIT

121*

NANOTEK BY ECOWASH

FRANCHISE LEGAL

THE DUSTER DOLLIES THE FRANCHISE SHOP THEXTON ARMSTRONG THINK FRANCHISE TOP SNAP TOTAL TOOLS

118 – 119* 106* 116* 48 – 49* 78* 46 112* 97*

OPORTO

95*

UNITED PETROLEUM

OUTBACK JACK’S BAR & GRILL

19*

VANITY BAR

102

VC SOLUTIONS

VIP AUSTRALIA

60*

WISEWOULD MAHONEY

54*

34*

PIZZA HUT PWO PROFESSIONALS

89*

RBI

166 | FRANCHISING MAY/JUN 2012

THE CHEESECAKE SHOP

TOUCH UP GUYS

123

134

TELECHOICE

91*

GLOBAL COFFEE SOLUTIONS

HMS PRINT MANAGEMENT

44 – 45*

NIGHTOWL

GEOWASH

108*

135*

81*

MESSAGECOM

GREENBIZCHECK

72 – 73, 104 – 105*

SOCIAL MEDIA BUSINESS BOOSTERS

LOLLYPOTZ

124

GLORIA JEAN’S COFFEES

98*

KEEN TO CLEAN

128 – 129*

61*

SKIDS SILVER CHEF

MBE BUSINESS SERVICE CENTRES

GAMES 2 U

SALSAS FRESH MEX GRILL SIGNARAMA

29*

66 – 67*

CONTOURS

FRANCHISE SELECTION

133*

SAID CREATIVE

JUMPING J-JAYS

MASON SIER TURNBULL

DIVERSIFIED EXHIBITIONS

SAFETYQUIP

22*

DC STRATEGY

125

JO JINGLES

COCO CUBANO CRAZY JOHN’S

RESICERT

146, 148*

REALESTATE.COM.AU

139

XPRESSO DELIGHT

REDCAT

141

YOGABUGS

WWW.FRANCHISE.NET.AU

130* 62* 75 136

115* 94

AD_FRFASMAR_12.pdf

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

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AEST

Seeking 100 new franchisees Bakers Delight is Australia’s most successful bakery franchise, with 31 years proven experience and more than 700 bakeries. Our bakeries are a proud part of local communities across Australia, and we’re continuing to grow. Right now, we’re seeking 100 franchisees for new and existing sites across the nation. Take control of your future, contact our franchise recruitment team: 1300 309 759 or apply now: bakersdelight.com.au

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Start or expand your fitness business with

Is miha bodytec: ■ an all-in-one, portable gym? ■ easy to use and maintain? ■ of superior German technology and quality? ■ able to deliver intense, whole-body workouts in just 20 minutes? Really?? ■ designed to strengthen my core muscles, reduce back pain, and tighten

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■ fab for slimming the healthy way? ■ suitable for all age groups? ■ a weapon for helping me gain an edge in competitive sports? ■ a tool to expand and differentiate my personal training or gym business? ■ an affordable, proven and replicable business model tool for investors? ■ like any other fitness machine out there?

us for do contamcettro demo, a sydneoy discuss the and t l trainers or personastudio systems micro P 0488 133 155 / 0406 666 068 E info@allianceaustralia.com W www.allianceaustralia.com / www.miha-bodytec.com

Yes