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FIND A FRANCHISE
MARKETING
@ SYDNEY EXPO
ADVICE
Franchising www.franchise.net.au
MAR/APR 2014 VOL.27/No.2
FRANCHISING
Your essential guide to buyi ng
a franchise
IFA REPORT
4
TECH TRENDS FROM THE USA
HATE YOUR JOB? how quickly can you buy a franchise?
MAR/APR 2014
FAKE FRANCHISES
Safeguard
how to spot the scammers
your assets with insurance
SPOTLIGHT ON: • Automotive services • Bakeries
WWW.FRANCHISE.NET.AU
• Cleaning • Mobile businesses • Signage
Print Post Approved 100008121
JIM PENMAN
MEET AUS $6.95 NZ $7.95
celebrating 25 years
PLUS: ANYTIME FITNESS, THE COFFEE CLUB, MR RENTAL
AD_FRPASMAR_13.pdf
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Enjoy the best of
both worlds
A PACK & SEND franchisee earns income operating a Retail Service Centre at business trading hours, providing freight and packaging services to businesses and consumers Plus earns income from online freight solutions 24 hours a day, 7 days a week. It’s a business system that provides you with the best of both worlds – giving you access to sophisticated systems and technology to exploit the high market growth in the movement of packed and unpacked goods as a result of growing trade via the internet. There is no other franchise system like it in the world and best of all, PACK & SEND Franchisees receive assistance and support along the way.
For more information, please call Kate Bird on 0423 052 456
High growth market, with No Limits to sales growth Innovative, progressive company, established 20 years Award winning business systems and support Retail Service Centre at business trading hours – plus earn online income 24 hours, 7 days a week Low investment entry price
www.packsend.com.au
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Contents MAR/APR 2014 | YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE
Opportunities 42
The business of baking A sector update
50
Your footpath to a franchise The Sydney expo previewed
62
62
70
Inspire
96
18
Cover story
20
From the farm to Mr Rental
Issues
The multi-unit franchisee kicking goals Crossing continents
Editorial
6
News
116 Legal
30
34
127 A-Z listings 138 Advertisers’ index
The opportunity we were looking for Green Homes’ first franchisees
36
A taste of India How one restaurant chain is spicing up life
122 Viewpoint 125 Glossary
How freight can deliver great results The InXpress single solution
118 Sketch 120 People
7 sites and going strong Moving from employees to franchisees
38
Glamorous brand, profitable business model A Franck Provost franchisee takes our Q & A WWW.FRANCHISE.NET.AU
Spotlight on signs Signarama’s latest developments
90
I hate my job! How quickly can I buy a franchise? Advice on the steps you need to take before you invest
Steve Rollings: 10 gyms, five years
28
Clean up the competition Report on the cleaning sector
84
German cuisine restaurant opens here
5
78
Jim Penman reflects on 25 years in franchising
Queensland franchisees share their tale
24
REGULARS
No fixed abode Mobile service opportunities
10
114
Pedal to the metal How the automotive services sector is travelling right now
96
Understanding profit expectations Our profit poll results
100 USA trends: technology talks Latest news from overseas
How to... 104 What you need to know about an operations manual Check out these essentials
108 How good is franchise marketing? How to spot a supportive team
110 Scam alert! ACCC guidance on avoiding the fake franchise
114 Safeguard your assets Insurance and your super fund MAR/APR 2014 FRANCHISING | 3
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OVER 500 FRANCHISE CONVENIENCE STORES AND GROWING! You may not be aware that Caltex Australia operates one of the largest convenience retail networks across the country, with both company and franchised stores operating predominantly under the ‘Caltex Star Mart’ brand. Caltex is a well-recognised and reputable brand with outstanding systems and tools to enable operational success. New franchisees entering the business will be provided structured training and support on all key operational elements to set them up for success in their venture. The franchise community is strong and supportive with organised franchise councils and regular communication meetings, to ensure franchisees contribute to the brand success. Caltex has also held international conferences every 2 years with significant franchisee attendance, in locations such as China, Mauritius, Vegas and the most recent event was held in Dubai. This conference rewards high performers and is a highly anticipated event on any franchisees calendar. To find out more about our Franchise Opportunities, visit www.caltex.com.au and click on ‘Franchising at Caltex’.
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Welcome
Franchising Publisher Raffael Fernandes P: 02 8484 0754 raffael.fernandes@cirrusmedia.com.au Editor Sarah Stowe P: 02 8484 0900 sarah.stowe@cirrusmedia.com.au Journalist Brea Carter P: 02 8484 0661 brea.carter@cirrusmedia.com.au
Shaping an excellent future
Graphic Designer Rizwan Nawaz P: 02 8484 0622 rizwan.nawaz@cirrusmedia.com.au
F
National Sales and Marketing Manager David Strong P: 02 8484 0905 david.strong@cirrusmedia.com.au Account Manager Ben Smith P: 02 8484 0740 ben.smith@cirrusmedia.com.au Account Manager Mitchell Greenway P: 02 8484 0696 mitchell.greenway@cirrusmedia.com.au Client Success Manager My Do P: 02 8484 0927 my.do@cirrusmedia.com.au Production Co-ordinator Jackie McCarthy P: 02 8484 0945 jackie.mccarthy@cirrusmedia.com.au For subscription enquiries call customer service: 1300 360 126 ISSN: 1321-408X
franchise.net.au facebook.com/franchisingau twitter.com/franchisingau
Cirrus Media Tower 2, Level 3, 475 Victoria Ave, Chatswood, NSw 2067, Australia Locked Bag 4700 Chatswood Delivery Centre, NSw 2067, Australia P: 02 8484 0888 F: 02 8484 0633 ABN 80 132 719 861 www.cirrusmedia.com.au © Copyright Cirrus Media, 2014
Average Net Distribution Period ending Sep ‘13 - 7,534
Printed by: Bluestar Print 83 Derby Street, Silverwater NSw 2128 P: 02 9748 3411 All Franchising material is copyright. Reproduction in whole or in part is not allowed without written permission from the Editor. © 2014. Opinions expressed in Franchising are not necessarily those of Franchising or Cirrus Media.
SARAH STOWE Editor
ranchising in Australia is top class. Really. Yes, there are some franchisors who pull the sector’s reputation down with their actions and not every franchise in the country will provide the best support or see every franchisee in their system achieve good profit levels. We have a franchising Code of Conduct and the sector is heavily regulated. Compare this with the UK for instance where self-regulation is the norm. In Australia franchisees may not get the full protection they believe they deserve [the Wein Report proposals go some way towards this] but there is no doubt that many see the opportunity of investing in a proven system with back-up and branding an advantage over setting up in business by themselves. And despite the legislation there are plenty of overseas franchisors seeking out new business on our shores. As you will see from the Sydney Franchising & Business Opportunities Expo preview franchisors from the US, Canada, New Zealand, and a whole contingent from Malaysia, are targeting this country for expansion.
Plenty of overseas franchisors are seeking out new business on our shores The international perspective is heightened for the Franchising team after a visit to the International Franchise Association’s (IFA) annual convention in the US. It’s always exciting to meet other franchise professionals and share experiences, and it’s noticeable that often the challenges and solutions are common across the countries. The trip to New Orleans revealed current and upcoming trends [see our report on p100] both within franchising and the wider world of technology, which is so influential for us all. It also served to confirm that franchising in Australia really is conducted to a high standard. In his column on franchising in this edition, Sydney University Professor Andrew Terry considers what shape excellence in franchising takes - we think a diamond sums it up perfectly, but you can read more on p118. But with all this focus on brilliance, please don’t rush off and purchase your first franchise without conducting due diligence. As the ACCC alerts people to franchise fakes through its SCAMwatch website [p110] it’s wise to remember that not every franchise investment is a success. There are no guarantees. F
www.FRANCHISE.NET.Au
MAR/APR 2014 FRANCHISING | 5
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News ONLINE NEWS | WWW.FRANCHISE.NET.AU
Singapore firm set to acquire Gloria Jean’s THE Singapore-based Global Yellow Pages is to acquire the “Gloria Jean’s Coffees” and “It’s A Grind” intellectual property, the global supply chain operations, and the master franchisor business world-wide. The proposed acquisition will see funding and resources available for the franchise chain’s continued global expansion with a focus on growth in Asia, especially China. Nabi Saleh, executive chairman of Gloria Jean’s Coffees, said “We have been looking for some time for the right partner who shares our guiding values, our dedication to excellence and our vision for the future. As a result of months of discovery and ongoing consultation, we are confident that in GYP we have found the right partner to take the business to the next level. “We already have more than 800 coffee houses in 39 countries and are excited by the very real prospect of seeing Gloria Jean’s Coffees continue to grow internationally to become a truly global coffee house brand,” he said. The new ownership will also see the brand’s corporate owned stores undergo
Image: jason ierace
a transformation. “To ensure we deliver on our franchise-focused strategy, we are currently franchising corporate stores or closing these over the coming weeks. We are actively looking for coffee-loving business-minded entrepreneurs with the
view to transitioning most of our corporate-owned coffee houses to successful franchisee partners,” a Gloria Jean’s spokesperson told Franchising. “It has been agreed that a solution for the corporate owned outlets will be finalised by March 31.”
Image: Graham Denholm
No more hard-line funding for franchises, sector pleads
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FRANCHISEES and budding franchisors need better financial funding opportunities, say franchise sector representatives who are supporting the Small Business Minister, Bruce Billson’s stance on ‘ultra conservative’ lenders and regulators. His comments during a speech at a G20 Conference in Sydney in February drew support from both the Franchise Council of Australia and Frandata. The Minister believes access to finance remains a hindrance to Australian business, despite the recovery from the global financial crisis. “This inability to obtain start-up finance is a strong disincentive to those WWW.FRANCHISE.NET.AU
looking to start a business,” he said. He then went on to question the practice of lenders often requiring the family home as collateral for business loans. “The Government wants this to change. A lending environment where families do not have to put their home on the line to obtain finance would lead to more entrepreneurship in Australia,” Billson said. It’s a view welcomed by the Franchise Council of Australia’s general manager, Kym De Britt.“Availability of finance is a major issue for franchisors and franchisees alike. It goes hand in hand with the other major challenge, which is finding suitable franchisees,” he said.
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News WWW.FRANCHISE.NET.AU | ONLINE NEWS
Potential franchisees search by brand first
IN BRIEF On 28 February Retail Food Group (RFG) revealed it posted a net profit after tax (NPAT) of $17.3m in the first half of the 2013/14 financial year (1H14).
ACCORDING to statistics from our sister website Franchise Business, potential franchisees are most interested in finding out about specific brands. They are choosing to access the website for a number of other reasons, including to find out how far their budget will get them and the opportunities available in their home state. Petrol and convenience store chain 7-Eleven is the most searched brand, followed closely by Boost Juice and Gloria Jean’s Coffees. Other top searches include Domino’s and Pizza Hut, as well as FLIP OUT Trampoline Arena and service provider Wisewould Mahony Franchise Lawyers. The type and price of a franchise is also of interest to site visitors. Budget franchises ranging in price from less than $20,000 through to $50,000 are particularly popular, as are home based, fast food, coffee and cleaning businesses, in that order. The website lists franchise opportunities across Australia, and New South Wales attracts the most interest, followed by Victoria, Queensland, Western Australia, South Australia, the Northern Territory and finally Tasmania. The Cirrus Media Franchising group encompasses not only Franchising magazine but two websites - www.franchise.net.au and www.franchisebusiness.com.au
Most searched for franchise brands:
Image: Michael Bevan
7-Eleven
2,512
Boost Juice
2,341
Early learning and education franchise, Begin Bright recently opened its first-ever Victorian centre in the Melbourne suburb of Doncaster. Nando’s “borrowed” Bowen’s big mango as part of a marketing stunt eventually linked to the launch of its new mango and lime flavour. Beaumont Tiles plans to open a $11m facility to service its stores across New South Wales. The distribution centre will be in Western Sydney at Huntingwood. Drive-thru coffee franchise, Muzz Buzz has signed a master franchise agreement with a joint venture company in the UK to establish the brand there.
Image: Thinkstock - BrianAJackson
Site visitors were most interested in franchises for sale in the following states:
NSW 14,196
Gloria Jean’s Coffees
1,314
Pizza Hut
1,116
Domino’s
1,045
Franchisee Craig McShane, who brought The Coffee Club to Tasmania in 2008, has recently introduced the HydroKleen brand to the state.
VIC 12,490
QLD 7,648
WWW.FRANCHISE.NET.AU
Hot Star, the international food franchise that specialises in Taiwanese style chicken has opened its first Sydney store. Steinhoff International launched a new store that combines two of its most well known brands - Snooze and Freedom. Donut King opened its first ever drive-thru outlet at Deagon in Brisbane’s outer suburbs on 18 February.
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Franchise brands among winners of Roy Morgan customer satisfaction awards A NUMBER of franchised networks have taken out the top slots in the third annual Customer Satisfaction Awards held by research group Roy Morgan. More than 50,000 consumers and 22,000 business decision-makers took part in the survey. Convenience store chain 7-Eleven won all 12 months of the survey for the new award, Service Station of the Year while the independently owned outlets in Foodland scooped the Supermarket of the Year accolade. FMichel’s R 0 3 1Patisserie 4 _ 0 0 0was _ Vnamed I P 1 2 Coffee Shop of the Year, trumping other
franchised brands such as McCafe, Muffin Break, The Coffee Club, Gloria Jean’s, Hudsons Coffee and Donut King. Subway has been named Quick Service 0 1 4 - Restaurant 0 2 - 2 1 Tof0the 9 :Year. 2 1 : 3 7 + 1 1 Autobarn was named the Auto Store of
the Year, Home Timber & Hardware has been voted Hardware Store of the Year. On the hotel front, Sofitel took the Hotel and Resort of the Year top award. : 0 The 0 community based Bendigo Bank was named Bank of the Year.
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8| FRANCHISING MAR/APR 2014
Lawns & Gardens
Love your work
www.FRANCHISE.NET.Au
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Inspire | Cover story
25 FRANCHISING FOR
YEARS
In the early days
Jim Penman reflects on a quarter of a century in business, and the changes ahead
S
ay Jim’s Mowing to the great majority of Australian adults and the iconic bearded smiling face on the side of a truck that turns up in your neighbourhood is what comes to mind. The face of Jim Penman is one of the most identifiable brands in Australia. The beard may have disappeared years ago, and the bucket hat been replaced by a baseball cap, but the diminutive figure who still heads up the franchise shows no sign of slowing down or cooling his passion for the business. Twenty five years ago Jim Penman began extending his Melbourne based lawn mowing business that he started with $24 and what was to become one of the largest franchise networks across Australia was born. Today a sprawling bush landscape close to the Victorian Dandenong Ranges houses the Jim’s headquarters: a few rows of single level buildings, a conference centre, accommodation blocks, tennis courts, a swimming pool. »
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Formulating a business plan
Chatting at franchisee training day
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WHY JIM’S? Sam Robertson: building inspections franchisor “I’ve found the support network has been amazing and Jim’s ethos on customer service has been amazing. There is so much growth in our business because of that. It’s not just about price, it’s about service and what you deliver.” Mike Davenport: national training manager “Our customer service is state based and done in-house by franchisees, franchisors or divisionals. We maintain that people within our business know how to run our business.” Bush setting at Jim’s HQ
Penman enjoys the setting; he walks to work through his backyard and across the bush. It’s a far cry from the days when he started out in a small office above a takeaway shop. In the intervening quarter of a century Penman has received his share of publicity – good and bad. There has been a shortlived attempt to float the business, a legal battle with the UK master, dissent among the franchisor ranks, regular outpourings from Penman himself about government red tape and the need for improved immigration rules, a falling out with his sister who briefly worked for the brand. There’s even a whistleblowing website and an unofficial biography.
LOOKING BACK But what stands testament to the business is the growth of the networks and an enthusiasm for the Jim’s brand. There are now 3,300 franchisees in 36 different networks, with 245 franchisors. Reflecting on the past few decades, what does Penman himself consider to have been the highlights? “Mostly it’s just improving what we do,” says Penman. “I don’t think so much of milestones in terms of numbers of franchisees, but rather I look at measures of franchisee satisfaction and the service we offer and the levels of complaints. “We’ve got 3,300 franchisees. If you asked me my ideal I would say not one franchisee ever to fail, not one customer ever to be let down. I’d rather have that and 3000 franchisees than have a poorer system and 30,000 franchisees.” Asked early on what he would like to achieve, Penman imagined he could stretch his business to 100 franchises. By the end of the fi rst year he had 60 franchisees and then he started to see the 12| FRANCHISING MAR/APR 2014
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Andre Lavelle: business development manager, Jim’s Group “The role of a divisional is to paint the picture as they’d like to see the division run. They establish policies, procedures and training and use their experience to establish a division that is very functional, very profitable and that can grow. “My role is to bring new divisions into the group. We are looking for a solid financial track record and to show they can work with large numbers of people too.”
potential of the business. Yet growth has been haphazard and accidental. “People just came up and said ‘I’d like to take this concept interstate, overseas, to New Zealand, Canada, the UK’. Sometimes we were quite reluctant but were persuaded it was a good idea.” So what is it exactly that drives him? “Basically the thrill of doing things better, I just love the adventure of it. It’s incredibly exciting. I feel in a way we’re just getting started.” This year he cites more changes in Jim’s than in the past five years. These include a completely new franchisors’ manual, new marketing and IT departments, website management, social media, new divisions, trade exchange and investigating marketing directly to businesses to get work for franchisees.
INSIDE THE JIM’S GROUP The Jim’s Group works to a unique structure, and Penman maintains his focus has been on franchisees. This has sometimes been to the detriment of the regional franchisors who sit between the heads of each trade network [the divisional franchisors] and the franchisees themselves. »
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Inspire | Cover story
Penman is renowned for handing his mobile number out to franchisees at the first training session. How does he manage to be so accessible when he heads up the business? “I have an extremely great advantage in that I’m very poor at doing most things so what I do is I find quality managers to look after different areas. They are all vastly better at their jobs than I could possibly be. “I’m very easy to contact for that reason because I’m not buried under the detail of everything. I’m kind of like the visionary, the person spurting out ideas, saying let’s do this, or what’s going on here.” However, the visionary can steam ahead without due regard for process. At least that’s what the franchisors thought when he announced an arbitrary change to their contracts, and there was a revolt. “I’m very pushy and never satisfied with what we’re doing,” says Penman. “In 2009 I was pushing my franchisors to give better service to franchisees. I get into trouble with franchisees for pushing them for customer service and with franchisors for pushing them to better service for franchisees. And I didn’t listen enough.” In response, a new system has been adopted: any change to a franchisor manual has to be formally voted on by elected franchisors and then voted on in a specific referendum. Penman believes the focus on franchisees pays off. “It’s not uncommon for franchise systems to have 10 percent to be in some form of legal dispute with franchisees. But we’ve got 3,300 franchisees and nearly 300 franchisors and we don’t have any legal disputes that I know of.
My ideal: I would say not one franchisee ever to fail, not one customer ever to be let down “That’s remarkable. Sometimes the press likes to seize on something and say the gloss is coming off but in reality there was never a serious problem, never a legal issue just an internal dispute.” But one legal issue reared its head when the former UK master Paul Carr turned to the courts when he was asked to sell the business. So what has Penman learned from this experience? “Perhaps I should have tried harder to be conciliatory in manner,” he admits. “Unfortunately I can be very hot tempered at times. I get very angry when I 14| FRANCHISING MAR/APR 2014
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Mike Davenport: national training manager
see my people not being looked after; I should have been a bit calmer. “I’m a very passionate man, I put everything I have into what I do, I just love it. I think I’m learning a lot, I’m becoming a bit wiser.” There are 36 divisions now, but there have been more that have come and gone. Penman believes there is only one that was a mistake: the driving school, because the brand didn’t work for 18 year olds. “But I don’t think there is any division we started in the last 10 years that has failed; there are some that aren’t going so well but all our new divisions have been successful businesses.” The most recent additions are locksmiths, conveyancing, building inspection, diggers, electrical, plumbing, heating and cooling, and shade sails. “We look for really good people with a track record. If you can run a business without our brand, having our brand is like having jet powered boots. You typically get a four to one advantage. If you are spending $100 to get five leads, well we can get you 20. “We were just not careful enough in the past, we were too optimistic, sometimes you think you can judge a person and you make a mistake.”
CUSTOMERS CARE What customers like about the Jim’s brand is that franchisees return the calls fast, turn up on time and do a good job, says Penman. “There is a sense of security. People, particularly women, are very cautious about someone coming into their yard or their house, and a uniform gives a sense of comfort. Someone has been vetted, they’ve got a police check which we take very seriously. “If you call a tradie from a local paper, how do »
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• • • • • •
franchise@palmoasisventures.com www.baskinrobbins.com.au
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Inspire | Cover story
BIG CHANGES AFOOT In a training session
you know who they are? That’s a big factor. Not only do we get a bigger response to our ads, but our conversion rate is astonishingly high. “We get 75 to 80 percent who call up will book a job with us. That means the quotes are mostly not even competitive, this is especially the case when someone calls back in 10 minutes which is what we try to get them to do.
CODE OF VALUES
The Jim’s Group has grown like Topsy, the disparate nature of the businesses reflective of Penman’s approach rather than a focus on systems. Now this is changing. Systems, processes and measurements are forming the backbone of a new look Jim’s Group. It all started with the Test & Tag division. Neil Welsh, chief operating officer, joined the Jim’s group a decade ago, was a franchisor for 18 months, and with James Jacka became a Test & Tag divisional franchisor. “We documented and built a lot of systems, had the vision to pursue ISO. We win national tenders because our franchisees have greater structure, and they know what they need to do as part of the bigger picture. It helps us run a better business.” Welsh has brought his focus on documentation and systems to the top level of the Jim’s group as chief operating officer, a role he took on last year. The introduction of certified manuals at all levels of the business will give the group a national standard. “We had a silo mentality. Now we’re trying to share that expertise that we have across the group, providing structure through manuals so franchisees are getting the benefits of wider experience and skills. “We also agreed James and I would come into the business as partners and we are going through that process now.” WHAT’S NEW? Innovations underway include a pilot networking group that has generated about $80,000 in referral work. The customer service process is improving and regular surveys of franchisees will provide feedback on franchisor performance of specific activities rather on opinion. The support structure is focused on retention so identifying what franchisees are hoping to achieve, ensuring delivery of those outcomes, measuring them and providing support structure is essential. Andrew Kelly is heading up the new marketing division. “There’s never been a centralised marketing division, so in the past divisions have done their own advertising, they didn’t have internal resources,” he says. “Branding is how we present ourselves out on the street. We want all of our Jim’s Mowing franchisees to be wearing the same polo, our fencing trucks and trailers to be looking the same. “Our new slogan is ‘Need it done, Jim’s the one.’ It’s national. It’s all going to be about consistency.”
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“My code of values is very simple. Our first priority is the welfare of our franchisees, we’re also passionate about customer service.” Franchising, he insists, is not about shortcuts to a fast dollar. “People make a mistake if they worry too much about money. I don’t have any shareholders. I don’t have anybody to satisfy but myself and that’s what I want. In the end if you focus on franchisees and customers you’ll end up making a great deal of money but money should never ever be the short term gain. “We’ve run pretty close to the wind at times, I’ve been close to broke at various times but I always had that one thing in my mind, it’s like my Southern Cross, it keeps me going. “What’s going to make a franchisee think ‘this is the best decision I made’, and even after they’ve left how can we have them out in the community saying ‘well it didn’t work for me or I had enough of it but Jim’s is great’. “Reputation is everything. “I’m going to have retirement ceremony one day and I’m going to be the guest of honour in a box on the floor. I don’t ever, ever, ever intend to retire.” F
Want to find out more? www.youtube/franchiseau
Visit our YouTube channel to view exclusive video interviews with Jim Penman, Neil Welsh, Andre Lavelle and others.
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Inspire | Franchisee
FROM THE FARM TO
MR RENTAL Kier and Sam Forsyth have enjoyed a 16-year long working relationship, initially as farmers and now as Mr Rental franchisees.
T
he husband and wife team invested in Mr Rental Rockingham in 2004, and have three children together. “We have three daughters - Kenya and Abbey, both 15 - and Poppy who is nine-and-ahalf,” Sam said. “Poppy was born just before we started and attended franchisee training with us as a baby. She has only really known life as part of the Mr Rental network.”
MR RENTAL: APPEALING IN MORE WAYS THAN ONE According to Kier, they were first exposed to the brand through friends. “After selling our farm, we travelled around Australia for about 20 months, and were introduced to Mr Rental while visiting friends in Queensland who were franchisees,” he said. Kier and Sam were drawn to Mr Rental for a number of reasons. The fact that their friends were all praise was a defining factor, as was the culture of its network and the prospect of working together again. »
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Franchisee | Inspire
CHALLENGES Despite working together for 16 years, the couple admits separating their role as franchisees from their personal lives is a work in progress. “It’s important to have some basic ground rules in place as far as trying to keep business and personal life separate, and understanding that it’s a challenging balance, which can always be improved and refined,” Kier said. “Being in business with your spouse or partner can be the most challenging but also the most rewarding experience, and requires commitment on all fronts,” added Sam.
TEAM WORK IS THE KEY Kier and Sam have specific roles within the business, and both are confident in one another’s ability. Kier heads up human resources, deals with franchisor-related matters and handles performance
analysis, meanwhile Sam covers the financial side of things and provides operations support. “I admire Sam’s ability to juggle roles, both in and outside the business and her ability to connect with and influence team members in a positive way,” Kier said. “I admire Kier’s strong, positive culture and values, team management skills, his ‘big picture’ focus, plus his consistency,” added Sam.
WORK/LIFE BALANCE The Forsyth’s employ a business manager, permanent team members and local contractors who ensure the franchise operates smoothly in their absence. This ensures they enjoy time away from work to pursue other interests - Kier likes to fish, take part in Aikido, play golf and indulge in good food, wine and company as well as listen to live music. Sam is similarly a fan of music, wine and travel, and enjoys swimming, playing hockey and tennis. F
Being in business with your spouse or partner can be the most challenging but also the most rewarding experience
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THE
MULTI-UNIT FRANCHISEE
KICKING
GOALS Steve Rollings opened his first Anytime Fitness franchise in Muswellbrook in early 2008, and has gone on to open a total of 10 gyms in just five years.
H
e owns gyms in locations including Cessnock, Forster, Greenhills, Gunnedah, Kotara, Muswellbrook, Singleton, Tamworth, Taree and Thornton. “I decided to purchase a franchise because I wanted to operate a business system, not create one. It’s much faster to do business this way,” he says. »
I loved the massive growth and culture that Anytime Fitness had in the USA they had grown from zero to 800 clubs
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A GREAT BUSINESS MODEL Steve has expanded his empire rather rapidly, so it comes as no surprise he was sold on Anytime’s ability to establish a strong presence for itself in the USA. “I loved the massive growth and culture that Anytime Fitness had in the USA - they had grown from zero to 800 clubs in just six years. “I also loved the fact that you can run multiple Anytime Fitness clubs with ease,” added Steve. Expansion has been made easy thanks to the brand’s business model, a key factor being the gym’s ability to operate with little or no staff. “Once I had established my first club and trained up my management team they were able to handle it on their own and I didn’t need to be involved in the day to day activities, so I had spare time again,” he explains. “From there I decided to open more clubs and it just continued. I loved the fact that the gyms were never staffed on weekends or public holidays. This was a massive benefit for me as I have a young family with four kids.”
SUPPORT = SUCCESS Steve has employees that oversee the day-to-day running of his clubs, allowing him to head up a regional office that oversees all 10. “This involves having meetings with my team, going out and visiting the clubs, and planning new club upgrades, purchases and relocations,” he says. While he is a sole franchisee, Steve has a strong support network of head office staff behind him
“I run my team with a general manager, Scott Brown. Under Scott there’s Jarrod, who looks after club compliance and personal training, Jess who looks after marketing and IT, Lisa my financial controller and Michelle, the admin assistant,” Steve says. He also receives assistance, when required, from Anytime’s support office, and is in regular contact with his franchise consultant. “[We] have access to an e-learning platform which is great, [and] there is also an online operations manual which includes a step-by-step breakdown of what to do. “Sales training moves through the country every six weeks and when you first sign up you take part in a week long franchisee training program which equips you with all the tools you need to get started and stay successful,” Steve explains.
THE PERFECT LIFESTYLE “After being with Anytime Fitness for five years, I am in the process of selling a few of my 10 clubs and investigating other business opportunities,” says Steve. He has been involved in the franchising industry for nearly 20 years and loves the lifestyle, so it seems additional franchised brands could be on the cards. “It [franchising] has enabled me to have a fantastic life with my wife and four kids. Being an Anytime Fitness franchisee means I only work an average of 30 hours a week. “This means I am lucky enough to have more time with my family which is the best benefit of all. It also enables me to travel overseas three to four times a year with them,” he adds. F
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slice
Own a of the action...
Consider a franchising career with the market leaders in the pizza industry and join Domino’s today! Proven & trusted brand Passionate about pizza & people Leaders in digital innovation Ongoing training and support
Contact Domino's on 1300 131 888 or visit:
dominos.com.au/franchising
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CROSSING
CONTINENTS
Forget Bavarian theming or lederhosen the latest German restaurant in Australia serves up a more stylish tradition
B
AIDAN HAY CEO of Brotzeit
rotzeit is a very modern German casual dining restaurant founded on authentic cuisine but offering a contemporary vision of timber, angular black leather benches and high polish steel touch points. CEO Aidan Hay draws comparisons with the high performance and design credibility of fellow Germanic brands such as Audi and Hugo Boss, which have inspired the look of the business. While its soul might be Germanic, its heart is very much in Singapore. Hay describes it as “a born in Asia brand”. “Some of our shareholders are German who have been in Singapore for 10 to 15 years. “They saw a plethora of Italian and French cuisine outlets going beyond the checked tablecloth and Chianti bottle style and wanted to do something similar for German cuisine.” The process started with bringing in a chef from Austria, and six or seven concepts were put together before the final brand identity was chosen. Now the restaurant chain has expanded into other Asian countries: it’s in Malaysia, Vietnam,
Hong Kong, the Philippines, Thailand and China. “From a brand offer, and consumer touch point, we’ve had success in eight different markets with a broad customer base,” says Hay. “In five years I’d like to see three or four in major hubs across Australia and New Zealand. On a broader scale we’re looking at South Africa and then moving into the US. We continue to expand rapidly in China with 20 stores lined up, and we’re aggressively looking at Japan.”
OPPORTUNITIES IN AUSTRALIA Brotzeit in Australia is becoming a reality with a franchise set to open mid 2014. The business is on the search for comparable opportunities in New South Wales, Victoria and Queensland. “We know there is demand but have to pace growth and establish the model in a number of places,” says Hay. Brotzeit has a contemporary design to its restaurants. In three to five years the chain will comprise two to three in major urban hubs, says Hay. “Beyond that, we’re not a mass brand but there will be opportunities.” Franchisees will see a payback of their investment within two years, he believes.
FRANCHISEE SUPPORT
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“We have the tools and systems to help franchisees build their brand.” Achieving a critical mass of franchisees plays a role in promoting the brand; once it is represented through five or six stores a pool of marketing dollars
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Pork knuckle is on the menu
operations manuals and marketing. Franchisees access an online portal to tap into the knowledge bank. “We are elevating our level of service,” Hay says. “We are trying for a collaborative approach, we agree how big the potential is and set fair targets. We will always be talking about this target.” However he acknowledges the franchisor team cannot dictate the challenges of the market. “In Australia labour is a huge cost, and there is a heightened awareness of this, we believe we can overcome it. “We’re cognisant, we know the customer, the retail environment, labour, and the rules and regulations,” Hay says.
will be used to elevate brand awareness, Hay says. The first stage for franchisees to spread the word GLOBAL GROWTH for themselves is becoming part of the local commuThere is no cookie cutter approach to global expannity, reaching out to local interests through pr and sion. The brand’s development in China is linked with charity connections. a significant partner who has business interests there. The first partner in Australia has hospitality Looking ahead to the notoriously difficult (for experience, however it’s not an essential requireimported franchise brands) US market, Hay’s own ment. “We’re looking for partners with a vision to experience working for Yum Brands out of Dallas see growth, and passion, people looking to invest in will be an obvious advantage. teams and talent.” “We can look at a joint venture or pure franAlthough the head office is Singapore-based chise model. Hay says franchisee support will be thorough, F R0 3 1 4 _ 0 0 0 _ AF O 1 2 0 1 4 - 0 2 - 2 4 T1 4 : 3 5 : 4 2 + 1 1 : 0 But 0 the next step is establishing Australia,” he says. F from writing job descriptions to interviews,
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Love Photography. Love Real Estate. It’s time to own a Top Snap Franchise! You don’t have to be a professional photographer or have owned a previous business to become a Top Snap franchisee. Our franchisees come from all walks of life with different sets of skills and experiences. If you love photography, we provide all the training you need to become a Top Snap franchisee. With all retouching done in-house, all you need to focus on is the photoshoot and building relationships with your clients.
Simon Draper, franchise owner in Geelong, says, “I was looking for a business that satisfied my interest in real estate and enabled me to work locally. The fact that the Top Snap business model is primarily B2B and in my opinion almost ‘recession-proof’ made the opportunity even more attractive. Whilst having my own company, I do feel a great deal of support from the Sydney office and indeed other franchise owners. Being part of a team allows me to focus on growing my business and learning from those who have experienced the same process in the past. Whilst new to the industry, I do feel that I have an advantage over much of my competition with the diverse product range Top Snap can offer its customers.”
Top Snap has franchisees operating in 42 territories across Australia and New Zealand, and is continuing to grow! For more information on territories available across AUS and NZ contact Top Snap TODAY to find out more.
1300 TOP SNAP sales@topsnap.com www.topsnap.com
Find us on:
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7SITES AND GOING
STRONG
Boubacar Barry and Angela Barry-Holmes started off working as Coffee Club employees, and are now successful multi-unit franchisees.
T
he husband and wife team are the proud owners of seven Ipswich-based Coffee Club franchises, having recently expanded their empire to include another two outlets. The pair opened their sixth store at Ipswich City Heart Tower A on 20 November last year, and a seventh at the Riverlink Shopping Centre just days later, on 28 November. They joined the brand’s Springwood cafe as employees in 2002, and gradually worked their way up the ranks – purchasing their first franchise at Ipswich’s Riverlink in 2007. “I fell in love with The Coffee Club from the moment I started working for them and »
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immediately knew that one day, I wanted to have my own store,” said Boubacar. “There is such a sense of achievement in having your own franchise store, especially when you have seven.” Boubcar and Angela are looking forward to bringing the Coffee Club brand to even more Ipswich residents, many of who may not be as familiar with the brand. “The Coffee Club has an extremely loyal customer base and we’re excited to be able to grow this and reach new customers in Ipswich, in a way we couldn’t before,” Boubacar said. The husband and wife team plays an active role in their local community, and it is expected this will continue to increase as they open additional stores. “Being involved in and supporting the community is what we love, and being able to do that through The Coffee Club is an added bonus. “We’ve been supporting the Ipswich Basketball
and Ipswich Knights for the past three to four years and have since begun supporting the Ipswich Hospital Foundation and the Leukaemia Foundation Ipswich,” Boubcar said. “We hope to be able to continue to grow our community involvement throughout Ipswich and contribute in as many ways as possible.” The Coffee Club’s director, John Lazarou said the group is pleased by the brand’s expansion in the Ipswich community. “We are offering local shoppers and people in the community a genuine dining experience and a welcoming venue to meet people,” Lazarou said. “The bright colour and timber panelling throughout both stores adds to the great atmosphere and already we are noticing passers-by are attracted by our new style. The Coffee Club brand is about ‘inclusiveness’ – everyone is welcome to enjoy a relaxed experience in The Coffee Club.” F
There is such a sense of achievement in having your own franchise store, especially when you have seven
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One company has tapped into the need for an easy customer solution to multiple freight services and is reporting strong growth and a global footprint.
HOW FREIGHT
CAN DELIVER
GREAT RESULTS
LINDSAY BIRLEY Managing director of InXpress
IN
Ov in cu up inc
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nXpress has had a terrific year, according to Australian managing director Lindsay Birley; it has seen substantial growth in franchisee numbers and services just four years after the 12 year old business which began in the UK and US launched in the Australian marketplace.
THE COMPANY VIEWPOINT Birley says “The InXpress industry is on the right side of the shift supporting global trade and e-com purchasing, while leveraging partners such as DHL, recognised as a global super brand in the transportation industry. InXpress has an experienced management team with an outstanding track record, and potential franchisees can leverage this expertise to build equity in their own business.” There is at least one new franchisee a month joining the network, says Birley. The franchise model leverages the volume spend with world class carriers, such as DHL, TNT and Toll to provide competitive shipping rates and value added services to customers, which are normally only extended to large multi-national clients. InXpress focuses its core services around international and domestic air express and domestic road express. “A lot of freight companies charge account keeping fees and a minimum spend. So customers have several accounts and they are not paying the best rates,” says franchisee Jason Hand. In contrast, the InXpress standard solution provides one customer invoice featuring multiple services from multiple carriers. “Franchisees spend the vast amount of time delivering exceptional customer service to existing and potential customers, building up a solid and very profitable book of business. The carriers do the rest,” Birley explains. Franchisees bring to the network a variety of business backgrounds. “Many InXpress’ franchisees are high energy individuals who enjoy a face to face business environment,” says Birley. “Recently we launched into New Zealand, expanding our global portfolio to include another international location. This gives us a bigger global footprint and the ability to leverage even more » savings for our customers and profit for our franchise partners.”
WHAT’S THE BEST THING YOU CAN REMEMBER ABOUT YOUR FRANCHISE’S LAST EVENT? If it takes more than a few seconds to think of something you need to speak to us.
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Over the last 12 months the Australian InXpress has doubled in franchise size, with 15 new franchisees on board. The customer base has grown from 600 to 1450, with shipments up from 6500 to 9100 in 12 months, resulting in a 66 percent increase in spend and buying power.
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Call Brian Pretorius on 0433102005 or email brianp@launchpadfce.com.au
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InXpress has developed a user friendly web based software program automating shipment processing, delivering savings on time and money. “The automated manner in which InXpress transact with their customers allows more time for the franchisee to further develop their business or spend time doing other equally important activities such as with family and friends,” Lindsay added. To ensure franchisees are provided with the best possible start to their business, InXpress offers a turn-key operation with a three staged training program. The centralised support centre provides dedicated resources for the franchise system, also handling customer billing and collections.
THE FRANCHISEE VIEWPOINT Jason Hand has been a franchisee with his wife and a business partner since 2009. They were looking to run a boutique freight business when they came across the InXpress model, which already did everything the trio had talked about setting up. “We had been working in the freight and logistics industry for a number of years and we liked the concept of InXpress. We felt our past experience and skills would dovetail in perfectly as a freight consultant. The idea of low overheads and residual income also made the idea really compelling. “It was the perfect business. They do all the invoicing and debt collection, things I didn’t have skills in.” The business grew very quickly, and before long four people in the garage had grown to six in an office suite.
We can grow the revenue quite proportionally to the overheads
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“With InXpress we can grow the revenue quite proportionally to the overheads. It’s not a bricks and mortar business, it’s a web-based solution, so we can grow easily.” The business has been built by following the model of 30 customer contacts a day and investing in sales people and sales and marketing strategies to attract more customers, says Hand. The model is non-territorial, and the Brisbane franchise now has a business manager in Melbourne. Because Hand and his partners were the first franchisees in the Australian system after the master franchisee, the initial two years were spent fine tuning the model to suit the local market. “We were working to Australianise it. The pricing, carriers, even the buying habits are different here to the US and we were constantly refining procedures.” From doing everything the business required in start-up mode, now Hand is able to focus his attention on customer advice and supporting the sales team. He is also president of the internal franchise advice council, a mentor to new franchisees, and on the company’s global technology taskforce. F
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THE
OPPORTUNITY WE WERE LOOKING FOR Introducing Graeme and Julie Saward, Green Homes’ first ever franchisees.
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GRAEME SAWARD
JULIE SAWARD
Green Homes franchisee
Green Homes franchisee
Image: Thinkstock - mbolina
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raeme is a qualified builder with a passion for constructing energy efficient homes, so he and his wife Julie were sold when they came across Green Homes Australia (GHA). The husband and wife team invested in their North West Tasmania franchise in June last year, and couldn’t be happier. “This was the opportunity we were looking for. We wanted a business model where we could build energy efficient homes,” says Julie. “This is also a niche market. There are no other builders in the area that are building homes like we do – they are affordable, comfortable and energy efficient and are available at a standard price.”
DUE DILIGENCE The pair came across the brand via a simple online search and proceeded to make contact with head office staff. “We had many phone calls with GHA’s national operations manager, David Berryman to find out more about the franchise and what GHA could offer,” Julie says. “We had our accountant and solicitor review the contracts and provide feedback. We also had Warren Moore of Warren Moore Consulting create a business plan for us, and he said that the franchise was suited to the business we wanted to pursue.” Julie is confident in the steps she and Graeme took to research GHA prior to investing. “We wouldn’t do anything differently in terms of due diligence. We believe we thoroughly researched every aspect of the franchise before we purchased it. “Having our accountants, solicitors and business consultant read over proposals and contracts was F benefi R 0 9 cial 1 3 as _ it 0 provided 0 0 _ M Ous N with - a 1third 2 party 0 1 3 - 0 opinion,” she adds.
CHALLENGES Brand awareness is the biggest challenge for the Saward’s as GHA only began to franchise in March 2013. “We as a collective group are in launch phase and building brand awareness across the country,” Julie explains. “Our competitors are also a challenge for us. These builders have been in our area for years and are well established, therefore we have to introduce a new option to residents.”
ADVICE Prior to investing in the brand Julie and Graeme flew to the GHA head office to meet with its director, Mick Fabar and the national operations manager, David Berryman – a move she highly recommends. “We were able to build rapport with the directors and the team that was behind us to make GHA North West Tasmania successful. “It is important to build rapport and a positive team environment... [otherwise] it is not going to work.”
THE FUTURE The Saward’s have signed their first contract to build a green home in North West Tasmania and hope to sign off many more. “We had a goal in our business plan to build a certain number of homes per year and we are well on track to achieve that goal this year. “We very much look forward to the years to come and to see what we can achieve with the business. We’re happy that we’ve found an opportunity to 8build - 1 6energy T 1 0 effi : 4cient 4 : homes, 2 6 + 1something 0 : 0 0 we have wanted to do for quite a long time,” Julie says. F
Connecting People, Creating Careers
FRANCHISORS Are you looking for top talent for your management team? Please connect with Steve Bianchini at Mondo Direct – The Number 1 Specialists in Franchise Executive Search and Recruitment Tel: 0403 840 996 | Email: steve@mondodirect.com.au WWW.FRANCHISE.NET.AU
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A TASTE OF
INDIA Indian Brothers, the business that specialises in north Indian cuisine, is now franchising.
B
rothers Rajinder Singh and Butta Singh Bhinder founded the business in 2003 and in that time have opened a total of 10 companyowned restaurants and take-aways in locations including Gympie, Mackay and Bribie Island. The pair recently embraced the franchising model as a means of continuing to expand the business. “They were looking to grow and expand further, but obviously two people can’t be hands on involved in so many restaurants, so they began to look at different business models to grow their brand,” says Indian Brothers spokesman Steve Potter.
EXPANSION PLANS They began to franchise the brand in November last year, have since recruited five franchisees and national expansion is on the cards. “Our initial plan is to focus on Queensland, specifically south east Queensland, and northern NSW in the short term, only because it gives us an opportunity to bed the system down and to make sure our resources aren’t stretched across the continent,” explains Potter. “As we go forward I expect to see stores springing up in New South Wales, Victoria and South Australia, and beyond the next 12 months we have plans to open between 20 and 30 stores per year across the country.”
A UNIQUE OFFERING Raj and Butta believe in the success of the brand because the Indian Brothers offering is quite unique – no other franchise specialises in Indian cuisine. “There is really nothing equivalent in the market that we’ve seen, from an instant take-away and restaurant point of view in the Indian food space,” Potter says. “There are obviously a lot of Indian restaurants out there but they operate as one-man bands, or one person might own a few restaurants however they are very independent and operate in a disparate fashion.”
THE IDEAL FRANCHISEE Indian Brothers is on the lookout for franchisees who are passionate about both delivering excellent customer service and Indian cuisine. “The number one priority for us is to recruit franchisees that have very good customer service and people skills. “We are looking for people that like cooking and have an interest in Indian food. They don’t need to be a good cook; the system we have built supports people that don’t have a lot of cooking experience,” says Potter. In particular, a standardised system has been developed where franchisees receive premixed, pre-packaged sauces, which simplifies the 36| FRANCHISING MAR/APR 2014
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food preparation process. “All of the work involved in getting the quantities and flavours right is all handled off-site, so when franchisees are preparing the dishes all they need to do is source the meats and vegetables fresh from our local suppliers and combine them with the sauces.”
TRAINING & SUPPORT While the brand may have expanded rather rapidly in recent months, franchisee support remains front and centre. “It’s been quite a big start for us and we are actually trying to hold back at the moment so we don’t grow too fast. “What we are trying to do is introduce a very strong system and a strong management team that can support the number of franchise stores across the nation,” adds Potter. When franchisees enter the system they take part “Depending on the skills of the franchise owner in a pre-opening training program, which runs for they may need between three and four weeks of three weeks. training before the store opens.” “It consists of head office training and in-store Head office staff also return to stores to provide training at one of the Indian Brothers company additional assistance and training. “We go back and owned stores, and then we take the franchise owner visit them within the next four to six weeks and outFtoR their own store to help them prepare it for 1 1 1 3 _ 0 0 0 _ Br i a n 1 2 0 1 3 - provide 1 0 - 1another 8 T 1 4week : 3 2of:solid 5 3 training + 1 1 : 0to0make sure operation,” says Potter. everything is running smoothly.” F
Delivered
Potential
To achieve your corporate, professional and personal goals, contact Brian Tracy Training now.
Call Toll Free 1800 634 227 | www.briantracytraining.com.au | Franchises Available WWW.FRANCHISE.NET.AU
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GLAMOROUS
Inspire | Franchisee
BRAND,
PROFITABLE BUSINESS MODEL
Hairdressing franchise Franck Provost ticked all the boxes for Mosman franchisee, Virginie Maciejowski.
VIRGINIE MACIEJOWSKI Franck Provost franchisee, Mosman
A
fter a six year hiatus Virginie was ready to re-enter the workforce, and opted to invest in the Franck Provost brand for a number of reasons. She takes the Franchising Q&A...
When and why did you decide to buy a franchise? I decided to buy a franchise in 2012 after six years of inactivity. On the one hand, it was the ideal way of developing a business abroad. On the other hand, I appreciated the safety and support that you can have with a master franchise while also being independent. How did you go about researching the brand? My husband met Jean-Francois and Stephanie, the two owners, in a French Australian Chamber of Commerce and Industry meeting and they discussed it. What would you do differently in terms of the due diligence process, if anything? Nothing, it was perfect. What was the major reason for you choosing this brand? First of all, the glamorous and feminine aspect of the brand suits me. Moreover, we provide services
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that allow you to develop strong relationship with your clients. How did you fund your franchise investment? I had some personal funds and I also took out a loan. What is the biggest lesson you’ve learned as a franchisee? To learn how to manage a business in all aspects. What has been the biggest challenge as a franchisee? To maintain a skilled and stable team. What goals have you achieved since being a franchisee? The business was profitable from the first year. What advice would you offer someone thinking of investing in a franchise business? First of all you have to be convinced by the brand and its standards. Then you have to draw a precise and realistic business plan. Would you invest in this brand again? Yes, definitely. F
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Lets Talk Shop LEADING FULL SERVICE CONSULTANCY
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SportsClips
Founded in 2002, BrightStar® Care is a high growth U.S. franchise, providing a full range of medical staffing services, home licensed nursing care, and non-medical care by trained caregivers. #21 in Entrepreneur Magazine’s “Fastest Growing” Franchises.
A high-growth sports themed men’s hairdressing franchise created for Multi-Unit Franchise Owners, Sport Clips® franchise ranked in Entrepreneur Magazine’s top 20 “Fastest Growing Franchises”. Strong loyalty marketing programs that build repeat business.
The Alternative Board
Tax Assist
Outstanding ROI, consistent, outstanding revenue stream, shared best practices with worldwide network of master franchisees. Proven marketing & sales systems, low working capital, great work/life balance.
Award winning franchisor that provides training, marketing & support to master franchisees internationally, with a strong, robust brand & business model in the market place, TaxAssist Accountancy & taxations services target to SME.
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Featuring... Leading specialist in cleaning, maintaining and protecting assets. With A wide range of services means a wide range of incomes sources for you the franchisee. $90k+
Rent4Keeps
Providing Invoice Finance Services to its customers. Invoice Finance is a financing facility provided to businesses who have outstanding invoices but they can’t wait for those invoices to be paid. $50k
Taste of Europe
European Bakery, Patisserie and Cafe. Australian owned, simple yet rewarding franchise opportunity. Artisan breads and pastries baked daily on site, yet no baking experience required. Enquire now! $220k
Handyman Now
‘Be your own trade boss’ Handyman Now for trades of all sorts. A safe, trusted and competitive business with a very strong focus on customer service and satisfaction. $30k+
Shihlin Taiwan Street Snacks
A Shihlin Taiwan Street Snacks franchise offers an excellent business model in the retail food industry. Established and loved by many in Singapore, Malaysia & Indonesia now available in Australia. $250k+
$35k $50k
FIFO Capital
$50k
Sydney’s Premier Cake Shop chain now available for franchising. Exceptional profit opportunity. Simple to run with all products delivered fresh into your store so no baking experience or equipment required. $300k
Classifieds
Sergios Cake Shop
$30k
$38k
Locally based furniture and household appliance rental franchise. Franchisees arrange the rental contracts with the customer and then purchase the products and deliver to the customer directly. $140k
Exceptional branding, centre design , marketing & management skills. Brand leader of children’s indoor play in Melbourne. Great cashflow and profits, franchising Auswide. $350k+
$130k
Croc’s Playcentre
$29k+ $60k
Kleenit
made by you
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THE
BUSINESS OF
BAKING
Whether it’s a well known brand, one that specialises in artisan products or a new kid on the block, franchise opportunities abound within the bakery industry. By Brea Carter.
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T
he nation’s bakery industry has enjoyed consistent growth over the five years to 2013-14 and it is expected to continue to do so over the next five, as businesses add healthier and more gourmet products to their range. In IBISWorld’s Bread and Cake Retailing in Australia report, the research company estimates the industry’s revenue growth to be 3.3 percent over the five years to 2013-14, meanwhile the five years to 201819 will see revenue increase by an annualised 2.3 percent to arrive at $6.8 billion. The growth can be in part attributed to the industry’s responsiveness to customers’ growing demand for healthier and more gourmet, or artisan (such as brioche, sourdough and ciabatta) bakery items. IBISWorld’s Artisanal Bakery Product Manufacturing in Australia industry report uncovered artisan bread accounts for around 13 percent of industry revenue, meanwhile wholemeal and seeded breads are responsible for 20 percent. The report reads: “Rising health consciousness has driven demand for wholemeal and seeded breads at the expense of the traditional white loaf. “Bakers have also developed bread and baked products with added nutrients, minerals and fibre, as well as gluten-free products. These trends are forecast to continue in 2013-14 as health consciousness increases.” The research company predicts both healthier and artisan bakery products will remain popular beyond 2013-14, with industry revenue expected to rise at a compound annual rate of 2.2 percent over the five years through 2018-19 to arrive at $4.2 billion. Rising incomes are also expected to contribute to the industry’s overall growth over the next five years. “Higher disposable income enables consumers to purchase a broader selection of goods. Real household disposable income is expected to increase over 2013-14, enabling consumers to afford higher priced products. This is a potential opportunity for the industry to boost its overall sales,” the Bread and Cake Retailing in Australia report states. »
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BAKERS DELIGHT
into the Bakers Delight business, he underwent an While white bread remains a top seller for Bakers intense four month training program alongside a Delight the franchise has added a number of more current franchisee where he learned to bake, manage health conscious items to its range, explains the staff and manage his bakery on a day-to-day basis. general manager of company growth, Gabby Kelly. forward seven years later and Sam had F R0 3 1 4 _ 0 0 0 _ I ND 1 2 0 1 4 - 0 2 - 2 5 T 1 4 : 1 9 : 1 3 + 1 1 : 0“Fast 0 “Growing categories for Bakers Delight include bought his second Bakers Delight bakery and healthier ranges such as the cape seed, chia and employs a team of 25 staff across both,” she adds. hi-fibre, low GI products. Bakers Delight offers ongoing support in addi“One of Bakers Delight’s newest products is tion to the initial training program, which can be the chia & fruit loaf, which has proven to be a hit fast-tracked. with health conscious customers. It has no added “Financial guidance is provided to franchisees in sugar, no preservatives and is an excellent source the form of disclosing group and individual bakery of Omega-3 ALA, magnesium, iron, thiamine and finance reports and other key performance measures, fibre,” she adds. to identify areas of improvement,” Kelly says. Kelly explains Bakers Delight’s proven manage“Bakers Delight also assists franchisees in negoment and operational systems enable franchisees to tiating bakery public liability, and offering national run successful businesses. purchasing programs to assist in minimising opera“A good example is one of Bakers Delight’s multitional costs.” site owners Sam Dunlop. When Sam decided to buy The brand prefers franchisees with a background
Growing categories for Bakers Delight include healthier ranges such as the cape seed, chia and hi-fibre, low GI products
Instant Takeaway Franchise Opportunities
Instant Takeaway = Instant Income North Indian Cuisine is taking the world by storm. The Indian Brothers Instant Takeaway Franchise system has been designed from the ground up to be simple, fun and rewarding. Starting from just $150,000. Email:franchising@indianbrothers.com.au Phone Mike 0488 777 277 www.indianbrothers.com.au See us at the Franchising Expo 30 March Call for a free ticket, see us at stand C18
IB_Magazine_Ad_v1.indd 1
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in the retail or hospitality industries and individuals who have previously held managerial positions are also highly regarded. “We also look for people with the right attitude and drive to forge profitable careers with Bakers Delight.” Kelly says Bakers Delight will increase its presence across the countries in which it currently plays in 2014. “We will continue to expand our franchise operations, taking on 100 new franchisees in Australia and New Zealand and 50 in Canada. “We will continue to produce innovative marketing and product offerings, ensuring our existing and new franchisees have the best possible opportunity for success,” she adds.
BRUMBY’S In recent months Retail Food Group (RFG) brand Brumby’s has introduced a brand new store concept and expanded its product range to include much more than just fresh bread and baked goods – a project that was years in the making. The Evolution store includes an extensive range of new gourmet bakery and cafe-style products, as well as coffee. “The store [offers]… a three tiered bread menu of Get Active (health and wellbeing), Preservative Free (everyday essentials) and Artisan (specialty) loaves,” explains Brumby’s managing director, Kevin Waite. “New pie and sausage flavours include wagyu beef and beer, peri peri chicken and pork and fennel. Topped focaccias and gourmet sandwiches have been added to the menu along with muesli slices, family tarts and an indulgent sweets range.” The store is also complete with a brand new look, says Waite. “[It has] a new logo, colour palette, packaging, products, digital menu boards, uniforms and an inviting new walk in layout.” There is currently one Evolution store operating in Underwood, Queensland, and Brumby’s plans to continue to roll out the new model. “With one store now open and several more underway, we are at the beginning of the next era for our brand,” Waite says. “We have multiple sites available for our Evolution stores nationwide, and are looking at a period of expansion over the next 12 months.” While Brumby’s stores employ qualified bakers, franchisees themselves don’t need to have prior baking or retail experience. “We mainly look for people who fit the personality of a Brumby’s franchisee – motivated and passionate about food with a drive to succeed,” Waite explains. Brumby’s franchisees can expect initial and ongoing training that covers not only baking techniques and theory, but the skills required to run a successful business. »
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“At RFG’s state of the art training academy new franchisees gain expertise across a range of areas such as marketing, procurement, finance and training, including courses in practical and theoretical baking, business management and customer service. “Throughout the life of the business our franchisees have access to advanced business training courses and Brumby’s annual Baking Innovation Workshops that see us continually up skill franchisees and their teams,” he adds.
FERGUSON PLARRE BAKEHOUSES In staying true to its Australian heritage, the product range at family-run bakery business Ferguson Plarre Bakehouses comprises locally grown produce. “Ferguson Plarre products are made from all Australian, premium quality ingredients using timetested recipes,” says CEO Steve Plarre. “We use real eggs in our custard tarts, not powder, fresh cream, not mock and free-range eggs. Our savouries feature hormone free beef and free range chicken. A unique range of flourless products means even more customers can enjoy our range. Our pies are proudly made with 100 percent Victorian Beef and we proudly source only the best Australian lean beef from Kyneton, Geelong and the Warrnambool belt areas.” Ferguson Plarre produces its entire range at a purpose built bakehouse in Keilor Park, Melbourne, which eliminates the stress of on-site baking for franchisees. “It allows us to keep a keen eye on the quality standards of our products as well as focus on the research and development of new products. “For franchisees this means no baking is required… which allows them to focus on delivering excellence in customer service,” Plarre says. Ferguson Plarre franchisees have a competitive advantage as the brand’s bakers operate in line with current trends. “We have a constant focus on new product development to stay up to date with the latest food trends, including licensed properties like Dora the Explorer and Thomas the Tank Engine for our celebration cake range.” When franchisees enter the Ferguson Plarre network they will undergo a three week training program. “It covers everything our franchisees need to empower them to drive the success of their store, including staffing, customer service, sales, product training, food safety and barista training,” says Plarre. By virtue of Ferguson Plarre’s centralised bakehouse operation, franchisees do not need prior baking experience. “We look for prospects who are aligned with »
Ferguson Plarre Bakehouses
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YOUR KEY TO FUTURE SUCCESS
JOIN A COMMUNITY THAT WILL GET YOU THERE IN STYLE.
Hairhouse Warehouse is Australia’s leader in the hair and beauty industry, with over 140 stores across Australia. A belief in your ability to change your life and courage to do it is all you need. Our culture and business has developed from over 21 years of success and mastery. Hairhouse Warehouse has been built on passion and creativity. • Extensive and ongoing training programs • A proven turnkey operation • A focus on world class service • Multiple revenue streams, including retail, salon, piercing and beauty services • Exclusive stockists of world leading brands with the most lucrative merchandise trading terms worldwide Come and join our community of leaders and start your new future today. We’d love to hear from you. With opportunities currently available in: WA: Perth and metropolitan QLD: Brisbane metropolitan and regional NSW: Sydney metropolitan and region SA: Adelaide metropolitan VIC: Melbourne metropolitan Contact Peter Fiasco for a confidential discussion on 03 9234 2200
hairhousewarehouse.com.au
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our culture. It is important that our franchisees are a culture fit and passionate, happy go-getters who are customer focused and hard working,” he says. Plarre adds the brand is looking to open another 20 or more new stores in 2014. “Our bakehouse is running at 50 percent capacity which means we have a lot of room to scale up our production.” The business was ranked the Best Food Franchise in Australia in the 2013 Topfranchise awards.
PUCKLES FAMILY BAKEHOUSE Puckles is similarly owned by the Plarre family, and its product range is very much inspired by the Ferguson Plarre brand. “It features small cakes, like our vanilla slices and éclairs, medium-sized cakes such as our flourless chocolate truffle cake and baked cheesecakes, as well as a range of larger celebration cakes. “We also offer meat and vegetarian pies, pasties, sausage rolls and quiches in a range of sizes, including party food packs and our Bake at Home range. The Puckles experience wouldn’t be complete without our barista coffee, milkshakes and other beverages,” says retail operations manager, Rebecca Wilson. The Puckles range is produced at Ferguson Plarre’s manufacturing facility in Melbourne, and franchisees add the finishing touches once they arrive in store, adds Wilson. “Everything Puckles sells is made 100 percent in-house. We manufacture our own products, with nothing outsourced. “[They] are freshly baked and finished in-store without the need for skilled pastry chefs and bakers. The training program equips franchisees to manage the final stages of baking and finishing.” Product innovation also forms a key part of the Puckles offering, with the brand recently introducing a new character cake range complete with the likes of Hello Kitty and Angry Birds, as well as a special event range, which will be available in store around major holidays, such as Christmas and Easter. “We regularly refresh our range so that our customers can enjoy their favourites and look forward to the fun of new products,” Wilson explains. New franchisees undergo a four week training program and ongoing support is provided thereafter. “We show them everything from opening the store to the selling of our products and business financials. Once the franchisee’s training is complete, we support them through the setup and opening until they are confident they have things covered,” Wilson explains. “Franchisees will gain the added advantage
Puckles Family Bakehouse
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of ongoing support from our team including regular business training, annual franchisee meetings, masterclasses with our bakery manager, email communication and our in-store support program.” Puckles’ approach to franchisee recruitment is similar to Ferguson Plarre’s – no prior experience is necessary. “Ferguson Plarre [franchisees] come from a wide range of backgrounds – from retail and sales to manufacturing and services to teaching and the public sector. Knowing we would attract similar prospective franchisees, we made sure that Puckles was set up for people who may have never run a business,” Wilson explains. “We say that if you’re a people person, believe in the power of outstanding customer service and love the products then you’re what we’re looking for.”
We are always creating new products that will benefit all as a brand
“We have expanded our coffee menu to include Italian, Greek, Spanish, French, Portuguese, Irish, Belgium and Swiss style varieties, among others,” he adds. A former baker himself, Koutsioukis is all too familiar with the gruelling hours traditional bakers are required to endure, and so all of his products are sent to franchisees in a par-bake state. “Our system aims at minimising wastage and eliminating the need to work night shift as we bake fresh daily and bake three or more times throughout the day in small batches as required. TASTE OF EUROPE “We use a par-bake and frozen dough product to In keeping in line with the trend towards artisan achieve this,” he explains. offerings, Taste of Europe bakeries offer sweet and This allows franchisees to work normal hours, savoury European-style items. and affords them a better work/life balance. “[All of our products] from bakery items to “All baking and prep is done through the day so desserts, treats and light cafe meals offer a real taste there is no need to work night shift as bakers are F R0 3 1 4 _ 0 0 0 _ COC 1 2 0 1 4 - 0 2 - 2 5 T1 4 : 5 2 : 4 4 + 1 1 : 0 0 of Europe,” says founder Fotios Koutsioukis. known to do.” F
ture r a fu o f y s’ Read eet a
? e t a l o c o h C w ‘as s
Intimate dessert and coffee lounge • Well established company • 8 fantastic stores & growing • Proven business model • Handmade award winning products • Excellent training and support • Prime locations available •
FRANCHISING
NOW For more information contact the Cocolat franchising team Email: franchise@cocolat.com.au http://www.cocolat.com.au/franchise-opportunities
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YOUR
FOOTPATH TO A
FRANCHISE The Sydney Franchising & Business Opportunities Expo: a preview
Y
ou’re interested in the idea of investing in a franchise but want to know more. Well the first of a series of three dedicated expos in 2014 could offer you the perfect chance to find out just what being a franchisee entails, the opportunity to check out some business offers, and prove a source of free advice. The Franchising & Business Opportunities Expo comes to Sydney from March 28 to 30, and it’s in a new venue. The traditional home of the show, the Sydney Exhibition and Conference Centre at Darling Harbour, is undergoing a transformation so the expo is relocating to the Hall of Industries at Moore Park. Easy parking and public transport access should help attract a big crowd to the first expo of the year in the franchising sector. A host of business opportunities will be
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showcased – some franchised, some licensed – and there will be a seminar series offering guidance and insights into the path into franchising and the life of a franchisee. A popular event in the seminar program is the Franchisee Bootcamp, a panel discussion facilitated by Franchising editor Sarah Stowe. In addition, consultants and franchise advisers are on hand to share their experiences and tips for a smooth franchisee journey. On the following pages we’ve highlighted some of the sectors you could delve into in your search for the right franchise, and put the spotlight on the seminar program. F
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Franchising magazine, franchise.net.au and franchisebusiness.com.au will all be represented on the Franchising networking stand. Visitors can find out how to best source the information they need to help in the franchise purchase process, share their stories of the franchise journey with the team, and learn about the online tools available to bring them closer to their franchise investment.
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Brian Keen has run the gamut of business: 30 years in franchising as a franchisee, a franchisor, broke, founder of a national franchise consulting group and six franchise systems. Keen says “We are an unconventional franchise consulting practice that helps business owners franchise their businesses themselves with the advantage of manuals, training programs, workshops, my personal mentoring and lives access to a number of recognised professional advisers.” Launched in 1982 How to Franchise Simply offers a choice of franchise programs from a little over $10,000.
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A1 - THE FRANCHISE COUNCIL OF AUSTRALIA The FCA is the peak body for the $131 billion franchise sector in Australia, representing franchisees, franchisors and service providers to the sector. The organisation promotes best practice in franchising and the work of the sector to the wider business community. FCA members maintain credibility through member standards and the Franchising Code of Conduct. The FCA stand will be manned by staff as well committee members who all currently work in franchising. Whether they work for a brand, as a business consultant, legal or financial professional, they all have expertise in franchising.
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Shared experiences, tips and guidance are on hand at the expo, in the seminar program and among the exhibitors.
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SEMINAR THEATRE - MAIN EVENTS Is Franchising Right For You? Who: Various speakers each day When: 11-11:30AM (all days) Master Franchises – what are they and how do they work? Who: Jane Lombard, The Franchise Shop When: 11:30AM-12PM (Fri & Sat) McDonald’s When: 3-3:30PM (all days)
FCA Panel Session Who: Various speakers each day When: 12:30-1PM & 3:30-4PM (all days) How to franchise your business simply, successfully and save tens of thousands of dollars Who: Brian Keen, How to Franchise Simply When: 12-12:30PM (Fri) 11:30AM-12PM (Sun)
Check your show guide on the day for the full seminar program…
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Looking to invest in a food or beverage retail chain? Try these for size.
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Claiming the only noise you hear is the grinder, Xpresso Mobile Café focuses just on drinks, using Di Bella products and a range of teas, frappes and premium fresh fruit juices. From the side of a Mercedes Benz van, customers can choose their beans for the home or office. The growth plan is for 10 Xpresso Mobile Cafes by end of 2014. Franchisees can expect value for money, generous territories, and plenty of support. Franchisees will get a high end custom fit out for their vehicle.
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Find out more about investing in this global fast food business.
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Healthy food for busy individuals forms the core of this chain which began in the US and Canada.
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Ribs, steaks, burgers and hotdogs are served in this western themed restaurant franchise.
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C19 - THE CHEESECAKE SHOP Opened in 1991, this business now has almost 200 stores across Australia.
C20 - CHATIME The natural ingredients are directly sourced from the company’s tea garden in Taiwan. A unique method of infusing and blending tea leaves and no added perservatives are part of the unique offer. Tea is freshly brewed in store, giving customers more flavour and fragrances in their drinks, and sugar and ice levels can be customised to suit any individual taste. By 2015, there will be 12 new stores opening and the company aims to be market leader in the bubble tea industry.
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HydroKleen is Australia’s first split system air conditioning cleaning service to use a trademarked cleaning technology and the only national franchise in the market. Operationally, HydroKleen franchises are provided trademarked procedures and equipment and the proven capacity to service domestic and commercial clients. Several franchisees have won contracts to clean major hotels and industrial sites, high-volume ongoing clients that provide excellent stability and foundations for growth.
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ATS has a team of dedicated operational and administrative staff to ensure the franchisees businesses run smoothly. The focus on safety in the workplace is increasing every day, and many franchisees are experiencing double digit growth. A challenge facing many franchisees is how to manage their time more effectively in order to maximise revenues. New franchisees complete two weeks of induction training at the Melbourne support office.
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Jim’s is a nationally recognised brand and offers robust initial and ongoing training. Franchisees can deliver various safety services – portable fire equipment servicing, emergency and exit light maintenance, first aid kits installation and maintenance, test and tagging, safety switch (RCD) testing. There are quality, health and safety certified systems.
Newtools is all about the importing, wholesaling and distribution of high quality tools. From its early beginnings more than 25 years ago, operating a single van, Newtools is now a tool company with 18,000 stock items and access to an estimated half a million products across 80 brands. The partnership package includes advertising, marketing and promotional support, ongoing negotiations with suppliers, and the opportunity to expand/sell or divide an area. There are no ongoing licensee royalties.
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Mobile businesses for individuals [men and women] who like to be hands on
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Grant Garraway says “Our key people have worked in or managed franchisors, we have a different approach focusing on teaching our clients to be franchisors while we assist them to develop their business into a franchise. This year we plan to franchise the well-established Victorian office and then open a new office in either Brisbane, Perth or Auckland."
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C26 - OXYGEN BOOKKEEPING Oxygen Bookkeeping offers fixed fees, and a guarantee to get BAS and IAS returns in on time; free review and implementation of new accounting procedures for new clients; no suits or logoed cars. The biggest challenge is new compliance and regulations for bookkeepers by the tax office. Growth plans this year are focused on appointing three excellent new franchisees.
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D14 - DREAM DOORS
B20 A8 D14 WWW.FRANCHISE.NET.AU
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Briggins offers a unique and personal custom suiting service. The aim is to have a tailored suit delivered personally within 10 working days from the initial consultation. The franchisor is looking to appoint two Victorian franchises in 2014 with a view to have a permanent presence in Sydney in 2015 before scaling the brand nationwide over the next five years.
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Dream Doors sells kitchen facelift solutions. Services include refacing benchtops and supplying sinks, taps, handles and appliances. The franchisor is looking for five franchisees and aims to be Australia’s number one kitchen facelift company in five years.
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Investment opportunities that get you out and about. If you have business skills, you might want to tap into those talents and invest in a business services franchise.
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DELIVERING A SERVICE
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UNHEARD Of Flexibility and Semi-Passive Income Introducing Xpresso Delights 1, 2 or 3 day a Week Business Solution At Xpresso Delight we are in the BOOMING Workplace Coffee Business
We put Coffee Machines like this…
Into Workplaces like this FREE
Then, all week long your coffee machines automatically make professional cappuccinos and lattes at a fraction of café prices. Once a week you drop by and give them a clean and service, stock them up and invoice for a whole week of coffees. WOW, now that’s what you call real semi-passive income.
This is me running my business
And so is this…
So is this…
Now you have flexible time to do the important things you need to do but still have a business and only work 1, 2 or maybe 3 days a week. What a typical franchisee’s calendar may look like below... Monday School Function
Tuesday
Wednesday
Thursday
Catch up with Friends
Friday Go Shopping
Join the Xpresso Delight Team now and experience real Business Flexibility
HURRY Limited Offer: Your COFFEE Machines come with Locations ready for you to earn almost immediate income. www.xpressodelight.com.au FCA Magazine RHP.indd 1
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American, Canadian and Malaysian franchise brands are searching for Australian representation.
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FROM OVERSEAS TO AUSTRALIA
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International tutoring business Tutor Doctor began in the US about 10 years ago. This oneon-one learning system is now heading for Australia and will be exhibiting at the Sydney expo show next month. This is an at-home, one-on-one service. Rather than use standard curricula, franchisees tailor the curriculum for each student. Tutors are trained and matched to students based on personality, general interests and/or hobbies; all ages and all subjects are taught. Tutor Doctor has been operating in more than 15 countries, so has the advantage of adapting to new market trends fast and understands how to efficiently support franchisees to start and run their operations in a wide variety of situations. Twelve new franchisees are the target for Australia by the end of 2014 and the company wants to become a household name by 2016.
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MALAYSIA GROUP
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B30 - CRESTCOM A global management training business offering leadership development programs.
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D23 - PLANET BEACH An automated spa service franchise including massage, facials, UV and spray tan treatments.
MALAYSIA GROUP You won’t be able to miss the 14 franchised firms from Malaysia looking for Australian franchisees. Included in the line-up are a wedding accessories and greetings card business, a hairdressing chain, a health food retail chain and Malaysian heritage food.
MALAYSIA
Based in Canada, the vending business Candy Cups features a hygienic dispensing system.
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Sand, surf and service with a smile Newest McDonald’s Australia Licensee Shares His Journey
HAYDEN SMITH – FORSTER, NSW In just over 40 years, the McDonald’s brand has grown to become an Australian household name synonymous with excellent customer service and marketing success. Now with over 900 restaurants across the country, and almost three quarters owned and operated by Australian small business people, the company’s growth and success has been built on its people’s drive and ambition. Strong ambition has definitely been a key factor in Hayden Smith’s success. At just 33 and 31 respectively, Hayden and his wife India are among the youngest owners and operators in the McDonald’s system, taking over McDonald’s Forster in New South Wales in December 2013. Sharing his journey to becoming one of the newest McDonald’s Licensees with Franchising Magazine, Hayden hopes to inspire other entrepreneurs to follow their passion and consider a future with McDonald’s. The Macca’s Attraction Originally from the Sunshine Coast, Hayden grew up in the water competing at the elite level in Surf Lifesaving and building a career for himself in Management. Prior to joining McDonald’s, he was living in Dubai, managing one of the biggest water parks in the world.
“I’m really grateful to Gary and Lisa Binet. I’d like to think we would have represented the company well as Licensees as soon as we started anyway, but there is no doubt the time we have spent with them over a number of years has allowed us to be in a strong position initially, and he is one of a number of Licensees I call on a regular basis to ask for their opinions or ratify my thoughts.”
His close friendship with fellow Queensland McDonald’s Licensee, Gary Binet, exposed him to the McDonald’s business and introduced him to the system long before even officially making the decision to join.
“I was attracted to the McDonald’s system because I saw the opportunity to take control of my future, to take pride in running my own business in partnership with a very iconic brand with a great support system. I also appreciated the rigorous application process
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because that meant they only attracted the best applicants, ensuring I was in great company,” said Smith. One Big Family Hayden never thought twice about leaving behind his corporate career, despite the offer to manage the World’s largest waterpark at The Atlantis Resort in the Bahamas on the same week he was approved with McDonalds. As soon as he was officially approved as a Registered Applicant (RA), he and India moved back to Australia where Hayden immediately started the 9 month RA Training Program. “I never thought twice about leaving my career behind when I had the opportunity to join the McDonalds system, I just knew it was what I wanted to do and I am very grateful to be in the position I am. Just as beneficial for us was India also leaving her formal career and going to work fulltime at McDonalds Kuluin for a year whilst I was training. Whilst it can be a challenging year financially, it’s easy to see the big picture and we are in such a strong position now, as a team, because of it. “We also received fantastic support from fellow Licensees who generously imparted their knowledge and genuinely wanted us to succeed. From day one, India and I felt very welcomed as members of the big McDonald’s Family.” “At the same time, I value the collaborative approach that the McDonald’s system offers its Licensees. The corporation has provided me nothing but first class support, both as I progressed through the training and in my early days as a Licensee.”
Is McDonald’s for you? Hayden’s story is just one of many in the McDonald’s system. There have been 45 new franchisees, in the last five years alone. Many of which like Hayden, came from outside the business. McDonald’s National Franchising Manager Lilian Tartaglia explains what it takes to become part of the McDonald’s Family. “We’ve had franchisees from all walks of life gym owners, engineers, property developers, even an environmental scientist. Regardless of where someone’s career has taken them, we look for someone who not only possesses strong business acumen, but has the passion to personally immerse themselves in the business while contributing to their local community. “We are always on the lookout for driven and successful business people, like Hayden, who can help us grow our business now and in the future,” said Tartaglia. To find out more, visit: www.mcdonalds.com.au/franchiseopportunities
Words of wisdom When asked what advice he would give to anybody interested in becoming a McDonald’s Franchisee, Hayden had plenty of wise words to share.
“Be prepared for the fact that the training will be extensive, exhausting at times, and rewarding, but it is critical not to wish that time away. Embrace every day of your training, especially the first six months, as this is the perfect opportunity to master the Quality, Service and Cleanliness pillars the business is built around in order to put yourself in the best possible position for success as an operator.” “At the end of the day, it is your own business and you have a lot of legislative and financial responsibilities that require 100% understanding and compliance, but I can honestly say that the past two months have been the most satisfying and rewarding time in my life. I feel very fortunate to operate a great restaurant and work with fantastic crew. My wife and I could not be happier,” concluded Smith.
McDonald’s would like to partner with you to create the next success story. If this sounds like the next chapter in your life, check out all the information at www.mcdonalds.com.au or email us at franchising@au.mcd.com
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PEDAL
Rev up your life with an automotive franchise, writes Brea Carter.
TO THE METAL
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T
he global financial crisis has proved advantageous for the automotive parts industry, meanwhile the motor vehicle repair industry’s restructure over the past five years has contributed to its profit making potential. Research company IBISWorld predicts the parts industry will enjoy an annualised growth of 3.0 percent over the five years to 2013-14. This is primarily the result of economic downturn, whereby rather than purchase a brand new car, motorcycle or scooter consumers have been more inclined to repair their existing mode of transport. Despite the economy beginning to improve, industry outlook is bright. According to IBISWorld’s Motor Vehicle Parts Retailing in Australia industry report, consumers are now simply able to choose between brand new or used parts for their vehicles.
“Industry retailers are forecast to exhibit steady annualised growth in revenue of 2.2 percent over the next five years, to reach $6.3 billion in 2018-19,” the report reads. “Consumer demand for parts in the automotive aftermarket is likely to be driven by disposable income, consumer sentiment, the average age of motor vehicles and the overall number of vehicles in Australia.” Another facet of the sector is the motor vehicle repair industry, which according to IBISWorld’s Motor Vehicle Body, Paint and Interior Repair in Australia industry report is expected to continue to undergo a restructure over the next five years and post 6.93 billion in revenue through 2017-18. This sector of the industry relies heavily on vehicle crashes for its success, and over the past five years a number of factors have contributed to the »
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industry’s ability to post a profit. The report states: “Improved consumer confidence and increased household disposable income supported revenue growth. This occurred as households started driving longer distances more often, which increased the likelihood of a crash.” The number and age of vehicles, as well as the age of drivers on the road has also played a part. “Probationary and inexperienced drivers, often found in the 18 to 25 age group, are more prone to » motor vehicle accidents than older, more experienced drivers. The number of Australians in this age group rose over the past five years. “The size of the motor vehicle fleet is estimated to increase at an annualised 2.8 percent over the past five years. The more cars on roads contributed to the increased probability of a collision,” the report reads.
AUTOBARN According to Autobarn’s general marketing manager Brad Hyde, the statement “We know how to get you there” encapsulates what the brand is all about. “For us, it’s not just about selling products,” he says. “Autobarn staff want to know what it is our customers are trying to achieve, what type of car they have and whether they plan to do the work themselves or need a hand from us.” Autobarn recruits people who are both passionate about Autobarn and all facets of running their own business – from the product and managing staff to delivering exceptional customer service. “Our screening and orientation program is rigorous; we only want the very best to represent our brand,” says retail director, Peter Tilley. The brand has subsequently adopted a
Our screening and orientation program is rigorous; we only want the very best
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comprehensive training program for new franchisees, he adds. “Our successful applicants go through an extensive induction program with our head office team members. They receive training at our ‘in house store’ and put their skills to the test out in our network so by the time they take over their own store they’re absolutely ready.” In addition, Autobarn introduced a new learning and development program in 2012 to ensure franchisees receive the ongoing training and support they need to operate a thriving business. “Fundamental to the continued success of our business is ensuring our franchisees, their management teams and staff have the skills and knowledge necessary to deliver on the brand promise,” explains Luke Rich, the brand’s learning and development manager and program creator. “Under the banner of our Retail Training Academy we have a variety of training programs available covering franchisee induction, employee induction, sales training, management engagement courses, product knowledge modules and certified retail operations and frontline management qualifications.” Autobarn launched a refreshed store design complete with new fixtures, flooring, colour schemes, customer navigation and branding at Nunawading, Victoria in November last year, and it will continue to roll out the new look. “This is only the beginning for the evolution of our store design; we’ll be monitoring store performance and the feedback from customers and our staff as we roll out these new features across the network and into more new stores,” says Shane Logan, Automotive Brands’ general manager of network development.
Images: VUE Images
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Wisewould Mahony Lawyers Lawyers in love with Franchising
GOODYEAR AUTOCARE Goodyear Autocare sells Goodyear and Dunlop branded tyres and other related automotive products, and it provides a range of services including log book maintenance and brake, steering, suspension, exhaust, battery and cooling system repairs. “We’ve put a lot of research into creating an automotive retail and service experience that is superior in the marketplace and highly sought after by consumers,” says David Stafford, Goodyear Autocare’s franchising and licensing director. The brand provides training in various forms, from one-onone or group sessions that are delivered in person to an online e-learning portal. “These training modules cover a number of areas to ensure franchisees are well versed across all aspects of the business, from front of house activity right through to operating procedures in the workshop,” says Stafford. Product training forms an important part of the system, and sessions also cover a series of topics designed to improve store productivity and success. “Product training sessions are typically conducted in conjunction with our key suppliers of auto products and services, with final applications of product training included. “We also provide our franchisees with training sessions focusing on their sales skills as well as best-practice point of sales operation skills. Following training sessions, we conduct in-store assessments where we analyse store operations to highlight any opportunities for improvement for our franchisees.” Franchisees can expect to receive ongoing support from their franchisor in the form of local area and national marketing, an intranet that includes everything from operations manuals to occupational health and safety (OH&S) advice, as well as a business development manager. While Goodyear Autocare does prefer that franchisees have previous experience in the automotive industry, attitude is more important. “We look for franchisees who share our passion for the tyre and automotive industries, as well as a passion for the Goodyear »
FRANCHISE SPECIALISTS Call for a complimentary guide to Franchising:
Dispute Resolution, Mediation/Solutions & Strategies, Franchisee reports and assessments, Master Franchise agreements, International Franchising Employment Law & Workplace Relations
Fixed fee service to Franchisors and Franchisees based on scope of work Members of the
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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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and Goodyear Autocare brands,” Stafford says. “We pride our staff on providing exceptional customer service, and thus a willingness to learn and undergo ongoing training and up skilling on a regular basis is crucial.” Goodyear Autocare is looking to increase its presence throughout Australia, and plans to do so by developing initiatives with a focus on the following, Stafford says: • Meeting the needs of our customers • Driving revenue • Reducing operating costs • Making business simpler for our franchisees • Providing quality business information
Nanotek Image: Paul Looyen
NANOTEK Mobile car cleaning and detailing franchise Nanotek employs advanced liquid polymer nanotechnology to deliver its services in an environmentally friendly manner. “The liquid polymer is applied directly to the surface of the paint where it encapsulates dirt and lifts it from the paint surface. The polymer then acts as a lubricant enabling the dirt to be removed without any scratching – it also leaves a protective coating which lasts up to six weeks,” explains CEO Jim Cornish. This pits the brand ahead of traditional car washing systems, as it eliminates restrictions associated with space or location. “[Franchisees] can literally wash a car anywhere – there is no need for water or a large amount of equipment in a van. Our franchisees can operate from something as small as a Ford Fiesta and yet still provide F R 0 a3superior 1 4 _ 0 service.” 0 0 _ NOO 1 2 0 1 4 - 0 Cornish believes Nanotek’s status as a global
If a franchisee requires more training we will provide this free of charge brand is of benefit to franchisees in more ways than one. “Nanotek offers its Australian franchisees pricing, technologies, experience, expertise and systems beyond the reach of purely domestic systems. “Our product research and development, support systems and marketing campaigns are the culmination of global experience that is put into practice to increase franchisee turnover, decrease costs and improve franchisee lifestyle,” he explains. 2 - Franchisees 2 0 T 1 4 : take 1 3 :part 0 1in+a1two 1 : week 0 0 induction training program and the brand offers a myriad of »
Do you fit the box?
WANTED! NEW FRANCHISE PARTNERS AUSTRALIA WIDE
WHAT CAN WE OFFER YOU? Australia’s largest noodle based franchise chain Dedicated Franchise Support Centre team with focus on profitable development National & local area marketing campaign support Full training in-restaurant & in our purpose built training centre Innovative & exciting new restaurant design Australian owned Competitive capital entry level Successful business model for sustainable growth International expansion
Visit noodlebox.com.au/franchise & fill out enquiry form to receive an Information Kit. Or contact our Network Development Manager - Michael Standley on (03) 8851 4200 or 0416 256 338.
WWW.FRANCHISE.NET.AU
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support services thereafter. “Our franchisees have access to centralised systems including a state of the art website which incorporates a franchisee extranet, online ordering systems and printing portals – all of which are designed to streamline logistics and communications and increase business efficiency,” says Cornish. “In terms of ongoing support, we hold annual national and state conferences, online workshops and have state managers in place throughout the country.” In addition, franchisees’ first three months in business are royalty free. While the brand’s existing franchisees come from a broad range of backgrounds, Cornish says they all invested for the same reason – to be their own boss. “We look for franchisees who are motivated and who are ‘people’ people so that they’ll be great with customers and work well as part of a team – these are the hardest things to teach. “All they [the franchisees] have to do is work the system, no previous experience is required.”
Touch Up Guys
TOUCH UP GUYS Paint and bumper bar repair is the focus at Touch Up Guys, and it has franchises in both Australia and New Zealand. “We can repair anything to do with a damaged bumper bar including plastic welding tears and rips and heat reshaping dents,” says the brand’s franchise sales manager, Peter Darnell. The brand offers a number of other services, which Darnell believes sets it apart from the rest. “We have the capacity to provide bumper repair, alloy wheel repair and safety reversing sensor installation in addition to painting and buffing and polishing, and so have created a unique position for ourselves in the market.” Touch Up Guys offers customers added convenience by virtue of the brand’s mobile nature, Darnell explains. “Customers no longer have to lose their vehicles 68| FRANCHISING MAR/APR 2014
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Customers no longer have to lose their vehicles to panel shops for days to panel shops for days at a time while minor repairs are undertaken. Touch Up Guys come to the customer’s home or workplace and complete most jobs in just a few hours.” New franchisees take up residence at the brand’s national training centre in Burleigh Heads for a three week training program prior to entering their business, and ongoing support is available after that. “We teach [them] all the technical skills needed to do the work so at completion they are ready to start making money. We also teach business skills with a focus on selling, marketing, customer service, database management and maintaining business records. “Upon conclusion of the program a national office trainer accompanies the new franchisee back to their territory,” Darnell says. Touch Up Guys does not require that franchisees have a background in the automotive industry, rather personality and attitudinal qualities are the key. “We look for people who want to work outdoors, are comfortable working with their hands, have good communication skills, a reasonable level of fitness and are motivated to be successful business people.” According to Darnell, the past six years has seen Touch Up Guys’ customer base expand to include private consumers, which means more business for franchisees. “This has been achieved by the implementation of a range of integrated marketing strategies aimed at maximising internet presence and the use of tightly targeted print and electronic media to attract potential customers to the Touch Up Guys website,” he explains.
SUPERFINISH EXPRESS Superfinish Express provides onsite paint repair services exclusively to corporate businesses such as motor dealers and corporate fleets. The brand’s franchise development manager, Caedmon Foy explains franchisees use the best quality paints and materials during the repair process. “All of the products that we supply are controlled for quality and performance. Most of our products are developed by working with major local and international industry suppliers and manufacturers. “With the click of a mouse our on-board central ordering system allows for the daily delivery of products straight to the franchisee’s door, allowing them more free-time and less down time,” he adds. Superfinish Express provides new franchisees with three weeks of one-on-one training, as well as
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two weeks of field training. “If a franchisee requires more training we will provide this free of charge. All training is conducted at our training centre in Brisbane by a fully accredited professional training team who have over 80 years of combined experience in the business and automotive paint industries.” Ongoing training is delivered in various forms at regular intervals throughout the year, says Foy. “We hold state-wide workshops, a yearly national conference and visits from our field support officers are ongoing. “We also encourage franchisees to become active members of our National Advisory Council, which allows them to contribute to the direction of the company.” Foy explains Superfinish Express franchisees enjoy a number of other benefits, including a guaranteed weekly income, monthly progress reports and access to a 24/7 technical support line and intranet. The company manages franchisees accounts and handles the billing process, and was included in the Australian Financial Review’s “Top Value Return On Investment for a Franchised Business” list twice. personality FThe R 0brand 3 1 4has _ 0adopted 0 0 _ Ba A Y 1 and 2 attitude 0 1 4 - 0 rather than skills based approach to the recruitment
process, which means existing franchisees come from various different backgrounds. “No prior experience is necessary. A desire to succeed is a must, we have the training system in place to help anyone achieve their dream, all they need is aptitude and attitude,” says Foy. “Our franchisees include ex-carpenters, electricians, 2 - 2 1 Tmechanics, 1 4 : 3 3 :sales 0 5 professionals + 1 1 : 0 0 and even computer hardware and software technicians.” F
Understanding your challenges is just the beginning. Reaching your franchise goals has never been easier. With a team of innovative franchise experts, Baybridge is redefining the game. By increasing your opportunities and offering industry-leading advice we deliver results to the next generation of franchise clients. Talk to us
LAWYERS ADVISORY CAPITAL Contact Baybridge now.
today and experience the Baybridge difference.
info@baybridge.com.au
+61 2 9232 3511
baybridge.com.au
+61 2 9223 4625
WWW.FRANCHISE.NET.AU
Level 1, 109 Pitt St. Sydney, NSW, 2000
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NOABODE FIXED Working on your own as a mobile franchisee doesn’t mean working alone, writes Domini Stuart »
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BE YOUR OWN BOSS
TODAY! Join Business that is Right for You
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Frozen Yogurt is Booming! Australian Health Trend is Here to Stay! Frozen Yogurt, Smoothies, Protein Shakes & Breakfast Bowls. One Brand, Multiple Choices, Unlimited Potential! 13 Stores Across 3 States & Growing Fast! CRAVE is the Stand Out!
Call Crave Now to Find Out More! Remo Stander - General Manager +61 459 360 867 www.crave.com.au
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I
t’s easy to see the appeal of a mobile franchise. When you don’t have premises, you don’t have to factor in rent or grapple with other obligations to a landlord. And, if you choose to work alone, you can forget about paying salaries and dealing with the complexities of employee legislation. And most have a significantly lower cost of entry than a fixed location business. Appliance Tagging Services (ATS), which provides electrical safety testing and tagging services to businesses and schools across Australia, charges just $47,000 for a franchise. “Franchisees must also supply their own vehicle, so overheads are generally limited to vehicle lease payments, fuel, vehicle registration and licencing plus minimal mobile phone costs,” says co-founder Sarah Allen. “This allows for a good return on investment for proactive franchisees.” » Cafe2U, the world’s largest mobile espresso coffee franchise, changes more at $129,990 + GST but this
The franchisor takes care of invoicing and debt collection and pays franchisees on a monthly basis includes a new Mercedes Benz Vito fitted out with what Australasian franchise recruitment manager John Stanton describes as the best commercial equipment the company could source. “That makes the bulk of the cost a business asset, so this is a very attractive model for finance providers,” he says. “That means there’s no requirement for a large cash investment. An asset loan secured against the vehicle and equipment, combined with a small business loan secured against property, is the way most of our new franchisees choose to go.” »
Snap-on Tools
Appliance Tagging Services WWW.FRANCHISE.NET.AU
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Snap-on Tools Australia, which manufactures tools, diagnostics and equipment solutions for professional users, has taken franchisee finance a step further. “We have established a privately-owned and operated finance program which allows us to select franchisees on the basis of their attributes rather than whether they have the financial means to buy in,” says Steve Jones, national sales and marketing manager, Australia and New Zealand. “Lending can cover the franchise fee, inventory and a custom-built mobile store, so a new franchisee can be in a truck for a down-payment of as little as $50,000.”
TRAINING AND SUPPORT
We select franchisees on the basis of their attributes rather than whether they have the financial means to buy in
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Lower cost shouldn’t mean less support. As Jones points out, all franchisees need access to ongoing training and development if they’re going to grow their business. “All of our recruits start out by spending six days at our Training Centre in Dallas, Texas then two at head office in New South Wales, where we have over 100 support staff,” he says. “Each state has a business development manager (BDM) and franchise development manager (FDM) who help with business planning and reviews as well as sales training and mentoring. Franchisees also have a dedicated sales development manager (SDM) who rides with them at least twice a month.” Cafe2U provides a four-week Acceleration Package covering everything from an advanced barista course and safe food handling to sales, marketing and overall business management. Franchisees also have the full-time support of their FDM during their first two weeks on the road. “Our FDMs not only ensure you’re doing everything as you were shown during training, they also canvass for business on your behalf,” says Stanton. “They ensure that, by the end of the two weeks, you have a full daily run or regular customers.” ATS provides such rigorous initial and on-going training that franchisees need no prior electrical experience. The franchisor also takes care of all of the invoicing and debt collection and pays franchisees on a monthly basis, whether or not the client has paid them.
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“This gives our franchisees more time to work on their business as well as the confidence that comes with reliable cash flow,” says Allen.
MAPPING SUCCESS As with any franchise, thorough due diligence is vital before you enter into an agreement. When the franchise is mobile, you also need to pay particular attention to the exclusivity and demographic profile of your territory. “We invest heavily in our mapping technology to ensure every territory provides more business that the franchisee could ever service, allowing for both mobile and fixed location competition,” says Stanton. “Without giving away too many secrets, the factors we consider include the number of businesses, the types of industry and the working population.” Each Snap-on franchisee operates within a designated territory which is continually surveyed for demographic changes. “Results from these surveys are used to determine where new territories need to be created and to highlight opportunities for growth for franchisees,” says Jones. ATS offers a designated marketing area (DMA) based on the number of registered businesses within that territory, the types of business and whether they have potential for a franchisee. “The DMA is exclusive in the sense that no other franchisees can market into their area,” Allen explains. “However, franchisees can conduct work outside a DMA provided the request is client-driven. This flexibility appeals to franchisees who don’t want to be too limited in building their business.” At some point, all franchisees want to sell their business. When the franchise is mobile, there’s a risk that the low cost of entry will equate to a low exit payment. According to Stanton, Cafe2U is experiencing a solid, consistent resale rate. “There are three reasons for this,” he says. “Firstly, the vast majority of our franchisees are doing very well making the business attractive from a financial perspective. Secondly, as we’re territory-based, the number of franchise opportunities is finite so, in an area where limited vacant territories are available, an existing business
Cafe2U
becomes an attractive way to join the Cafe2U system. Finally, it’s a business that many people can see themselves running. The lifestyle aspect of working outdoors and, in most cases, finishing just after lunch time is very attractive to those looking to start a business of their own.” ATS takes an active role in helping any franchisee who wants to move on. “The safety industry remains a growing and vibrant business industry, and we see good prospects for future sales as and when they occur,” says Allen. Snap-on also prides itself in working in collaboration with franchisees who wish to sell their franchise. “We take a structured approach to the sale from the moment a franchisee indicates their interest in selling then work alongside them in sourcing and securing a replacement.” says Jones. “This allows us to maintain the goodwill built up by the franchisee and ensure they secure the true financial worth of their business.” Not everyone has the resources to buy into a bricks and mortar franchise, and some don’t want responsibilities on that scale. The right mobile franchise can provide a rewarding alternative. F
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HOW TO
CLEAN UP THE
COMPETITION
Could you run a cleaning business? In Australia our demographics show an ageing population and time-poor households, both good predictors for domestic services, writes Sarah Stowe.
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B
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usy lives and a focus on making the most of family time is likely to drive the cleaning businesses in the residential sector. But there are opportunities too in the commercial world, according to the IBISWorld report on the cleaning sector, Commercial Cleaning Services in Australia December 2013. In Australia, the two most dominant corporations have embraced the trend for business service operators to bundle their offers under a single multi-service contract, and this has boosted revenue and profit. So can the franchise companies compete? “The franchised cleaning operators segment is rising steadily and providing increased competition to existing major players,” the report indicates. One bundling benefit for franchisees is when their franchisor signs on national, multi-site clients, allowing them to service major businesses on a local level. Franchised companies have made inroads into the residential cleaning market, either offering general or niche services, and can boost their profits by focusing on the provision of good quality cleaning. “Franchisors can also offer clients assurance on meeting cleaning requirements and standards,” the report highlights. “Franchising lowers associated business management and operation training costs, as such costs become part of the purchased package of services.” And the franchise businesses are expected to contribute significantly to the industry revenue growth as they expand into commercial and office cleaning services. IBISWorld estimates franchised operations account for 10 percent of industry revenue [2013-14]. Revenue projections for the industry* over 201314 are $4.3 billion, an increase of 2.3 percent for the year. Steady growth over the next five years is expected to be about 1.5 percent per year, reaching $4.7 billion in 2018-19. While growth is lower than in the previous five years thanks to competition and a maturing sector, office cleaning services are expected to rise. Outsourcing household tasks such as cleaning result from busier work and home lives, and the industry will benefit from this. » WWW.FRANCHISE.NET.AU
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According to IbisWorld, this year profit is expected to account for 7.1 percent of industry revenue.
Are
Cleaning Businesses
The next five years are expected to see only modest profit growth despite higher demand for the services because of price competition and labour costs.
MAKING A PROFIT?
The data analysis business is predicting industry profit will reach just 7.4 percent of revenue. Technological innovation is likely to be minimal, reports IbisWorld, and overall the labour-intensity of the sector will continue.
WHAT ARE THE PROS TO THE SECTOR?
WHAT ARE THE CONS TO THE SECTOR?
$ Low entry level
No regulations
No training or licence required
low level of volatility
high staff turnover
labour intensive
● Industrial cleaning
PO C
K PO OF ETS TE NT
IAL
● Washroom services ● Residential cleaning ● Cleaning aged-care homes ● Government hospitals.
WHO IS IN THE INDUSTRY?
AMC Cleaning Group has an estimated market share of 11 percent and more than 600 franchisees. It’s a privately owned commercial cleaning company with reported revenue in 2012 of $41.7 million. IbisWorld suggests growth into New Zealand and acquisitions into related areas such as hygiene services are part of the expansion plan.
Cleaning Wizard has an estimated market share of 0.4 percent and 50 franchisees. It services industrial and commercial premises with a focus on floor cleaning.
Jani-King has an estimated market share of 0.6 percent. The US based company has nearly 900 franchisees across Australia and New Zealand, with a 2012-13 revenue of $26.6 million.
(sector includes industrial cleaning services, building interiors, residential, street and road, washroom and exterior building and window cleaning)
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Image: Michael Bevan
IbisWorld has highlighted the following cleaning companies:
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BEBRITE CLEANING Founder Diana Wilson says there has been a tremendous upheaval in the commercial sector, as a result of the economy. “When big commercial contracts feel under pressure the first thing to go is the cleaners. It’s hugely competitive. That’s why we changed to a combination of both commercial and residential, it gave us security. “You could have 30 to 40 residential clients which come to about $40,000 and between one and four commercial customers with an equal value. If you lose one commercial client, the loss could be a quarter of your business if you don’t have residential.” That’s why the business has the lowest franchise attrition rate in the industry at 3.8 percent , she says. The mix of residential and commercial clients also spreads the payment process, Wilson explains. Residential customers pay on the day and commercial night contracts will pay up to 30 to 60 days. “It keeps you paying your bills.” The residential market is always a viable proposition she adds, but a cluttered space makes this a highly competitive sector. In her view, the differentials are marketing strategy and how franchisees feel about the network and the franchisor. “There are some areas that make a difference for franchisees, including royalties.” Bebrite franchisees pay a flat fee, Wilson explains. “So if you earn $30,000 a month you will only pay $555. It makes for a sustainable business – but it’s not so good for us!”
The other defining element of the business is the use of Australian manufactured environmentally friendly cleaning products. Wilson believes the importance of this will only increase, not just because of client preference but for the environment, and for the protection of the cleaners themselves, using the products for eight hours a day.
OZZY KLEEN The business caters for commercial, residential and carpet cleaning. So how are the various sectors faring? The commercial world is proving tough right now with clients “very frugal”, says director Ken Patterson, and proving to be slow payers. The carpet cleaning service has been affected by a recent push from Fair Trading to highlight longstanding rental legislation that defines there is no legal requirement for tenants to clean carpets at the end of a lease. But while overall there’s been a bit of a slowdown in the cleaning sector, Patterson says there is plenty of potential in the residential market with an increasingly time poor population looking to offload cleaning duties. This is an opportunity too for older people being passed up for jobs to find a future in the cleaning sector, he suggests. “It’s a great opportunity for people to come in; we have a $5,800 + GST entry level and that includes equipment.” Looking ahead, Patterson’s target is to get »
It’s a great opportunity for people to come in; we have a $5,800 + GST entry level and that includes equipment
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GPG22736[RACT2E].pdf
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The home improvement product of the decade. The business opportunity of a lifetime. If you have a head for business and an appetite for success, talk to us about running your own fully systemised and supported, synthetic grass business. Already the market leader in half the country, we’re now ready to conquer the rest, but be quick as only 50 Green Planet Grass franchise opportunities are available. Visit gpgfranchise.com.au or contact Tony Maddock on 0400 017 882 or
RARE_GPG22736
email tony@solutionsfranchising.com.au
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the environment and our customers’ families.” Keen to Clean has set a goal to sell 100 franchises by 2015 by expanding the franchise footprint and through the new division focused on gardening services.
DAISY H2O DRY CLEANING
between 10 and 20 new franchisees on board this year. He believes providing new franchisees with existing clients to service and a share of the earnings from these jobs will help them get established. When it comes to environmental concerns, Patterson’s approach is to tackle the cleaning job with the best products available – depending on the circumstances of the job and the type of product the client prefers. “Customer service is vital,” he says; in fact, he adds, it’s important to have a personal touch and view customers more as friends. The payoff he says, is the reverse psychology: “When was the last time you fired a friend?”
KEEN TO CLEAN Brijesh Purohit, managing director, says finding suitable franchisees without compromising quality is the biggest challenge for the business, which is seeing rapid growth. The bundling concept highlighted by IBISWorld fits right into the Keen to Clean model, he says. “We are already in the process of starting a gardening and lawn mowing division. It is the trial phase and we have been working on it for the last eight to nine months. We are gathering data for marketing and preparing internal systems to launch this added service to our valued clients. We figure it’s better to keep our customer under our roof as we are already providing them with one service. If they are happy, then they are happy to use more of our services.” What relevance is there for eco-friendly products/services? “There is huge impact of eco-friendly products on cleaning services. We are already using biodegradable chemicals in the majority of our cleaning services and also educating our customers on the reasons why. It does cost a little extra, but at the end of the day we must think about the impact these have on
It’s clear from the name that Daisy H2O dry cleaning has an environmental focus. The service caters for both private and corporate customers – the latter particularly price conscious, says CEO Paul Littmann. “There’s a lot on their websites about environmental concerns but unless you drop the price, they won’t move,” he reveals. The price differential is really hard work, he adds. “From a franchisor’s perspective unless you have a dedicated warehouse structure you can’t really take on corporate clients. We can match prices and we do, but it takes a lot of energy. “The individual franchisee can negotiate price to a local sports centre, for instance. We can add a benefit when it comes to a big contract”. The business has shown strong growth year on year in individual stores, Littmann reports. The environmental nature of the business is a benefit for private customers. “It is good for allergies, good for asthma and there is greater awareness now. We’re seeing that at the cash register.” What’s on the cards is a new product offer: Littmann is looking at establishing a mobile dry cleaning service and is right now working on the van prototypes because the point of difference will be doing the cleaning in the van itself. Growth at the domestic level will mostly be driven by consumers, he says. Littmann has 45 stores as the national target. Elsewhere, the business has attracted a lot of interest from India, and Littmann is in the process of negotiating franchise representation there. “We are the greenest dry cleaner in the world. This is a unique point of difference.” F
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SPOTLIGHT ON
SIGNS How is the print industry staying relevant in today’s digital world? Here Signarama’s Evan Foster explains how the national brand is keeping ahead »
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TIME OUT! Take a couple of minutes out of your day to discover how you can save money on your franchise business insurance. anks to our highly simplified online system together with our reduced premiums, we are fast becoming the preferred insurance provider for Australian franchised businesses.
To find out how you can insure your franchised business in just four clicks of a mouse, speak to Brad Dixon today on 1800 776 747 or email info@mynfib.com.au
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T
his signs business has been franchising in the US for 28 years. It has been a franchised brand in Australia for the past 16 years and today has a network of 97 locations around the country.
COMPANY SNAPSHOT • Franchising for 28 years in the US 28 years, in Australia, 16 years • In Australia there are 97 locations • A franchise term is 35 years • Expect to invest about $200,000
Q: Tell us what differentiates your business from the competition – at a client level, and for franchisees A: At a client level, no sign franchise has the reach and scope of Signarama – from Cairns to Hobart and Sydney to Perth and many places in between, we can cover the needs of customers almost wherever they are across Australia. For franchisees, this means we have the support network, both from our operational staff and their peers, unmatched in the signage industry. Signage isn’t a ‘cookie cutter’ industry, there is always something new to learn, and the expertise of almost 100 other franchisees that have been there before you is even more invaluable here than in other environments. Q: Where is the growth going to come from over the next five years for your franchisees? A: There will be more focus on LED and digital signage, and new technologies like Near Field Communications. We’ll also see more and more franchisees expanding into additional equipment like flat-bed digital printers as the entry-level for these machines becomes more affordable than present.
Q: What are you doing differently today from two years ago? A: Well, a re-brand for a start! We’re almost completely through our first re-branding for about eight years and the reception from franchisees and customers has been amazing. We’re putting in place a conscious strategy to build the brand into a marketing resource rather than ‘just’ a sign supplier. We’ve also adopted new in-store technology such as our cloud-based POS program that has given greater flexibility for franchisees to view what’s going on in the business from wherever they are, as well as greater transparency for all team members of the work that is in the system. It’s been probably the best innovation that we’ve implemented in the past 10 years. Q: How easy is it for franchisees to get finance from the banks today? A: It’s still the greatest challenge, no different from any other era. The right candidate can still get financing though, and a franchisor with a proven track record of developing successful franchisees will also see the lenders be a little more open to finding a solution. Q: Is there any assistance for potential franchisees without the requisite finances? A: Yes, we have programs that we can introduce to potential candidates. Q: What is the investment level? The investment level of a Signarama franchise is about $200,000, and a franchise term is 35 years. F
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NEW MOBILE FRANCHISES “A Swimart Mobile Pool Services franchise could put you on the road to success.” Susie O’Neill, Mother and former Olympic and World Champion
If you’re considering changing your lifestyle, investing in a franchise business makes a lot of sense. Providing you join a growth industry and an experienced franchise group. Swimart offers both. The pool & spa service industry is growing rapidly and, with 30 years industry knowledge & experience, Swimart has the best franchise system in the business! Now, for the first time ever, Swimart is offering dedicated Mobile franchises in selected regions across Australia including most rural & region areas. From as little as $85,000 (excluding stock) you can begin to build your own lucrative pool service business.
A Swimart Mobile Pool Services Business offers: 3 Potential high income streams with repeat servicing & product sales opportunities
3 Strong consumer brand awareness 3 Low operational costs 3 An attractive outdoor lifestyle 3 Comprehensive initial training & ongoing training programs 3 Professional business support & technical backup 3 Strategic national & local marketing programs including TV & digital advertising, website, direct marketing & press advertising Contact us today to find out how you can become the local pool & spa expert in your area with a Swimart Mobile business.
To find out more, call the National Franchise Manager on 02 9898 8608 or email chris.fitzmaurice@swimart.com.au
MOBILE SPECIALISTS ISL-189-ADW.indd 1
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forever Capital required - 220K - 410K Number ofCapital outlets - 13+ - $250K + required Opportunities available - nationally Number of outlets - 13
Capital required - 170K Number of outlets - 50+ Capital required - $220K - 350K Opportunities exist - nationally Number of outlets - 13
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visual identity and signage styleguide
Capital required - 400K - 600K Number of outlets - 25+ HAND Opportunities available - nationally CARWASH
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Ca N Op
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Capital required - $400K – $600K Number of outlets - 25+ Opportunities available - Nationally
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WWW.FRANCHISESELECTION.COM.AU Visit www.franchiseselection.com.au or PHONE 1300 FRANCHISE (1300FRANCHISE 372 624) Phone 1300 (1300 372 624)
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Due diligence | Issues
I HATE
MY JOB!
So you hate your job and you need a way out. It’s time to be your own boss and let your entrepreneurial spirit run free! »
HOW QUICKLY CAN I BUY
A FRANCHISE?
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W
hen the going gets tough at work, buying a franchise may seem like the ideal way out. But like every major decision, its worth taking a deep breath and asking a few questions. Here are a few things you should consider before you dive into your new business venture: Are you really ready to leave behind the benefits of being an employee? Before you get swept up in the excitement of buying your own franchise business, you need to get real. Whilst full-time employment has its drawbacks, it also has many benefits - especially if you
There’s no point investing in the right market if you don’t love the brand
working weekends whilst the business ramps up – and possibly well beyond that. There will be no one to tell you what to do. You will have to be focused and motivated and productive day after day. If you are prepared to leave your safety blanket behind, keep reading. If not, perhaps start liking your job more… Be prepared to invest some time Investing in a franchise is an important decision and you should allow sufficient time to do your due diligence. Remember too, that each franchisor will have its own recruitment and screening process as well as training programs for you to complete. There are also Franchising Code of Conduct rules around time frames between steps. You should probably allow two to three months from initial enquiry to executing your franchise documents. You may then have to wait for a site to be located and built if it’s a new location or for vehicles to be fitted out. In some cases it could be many months from signing your docs to actually getting started.
are not a risk taker. Leaving your job means you will no longer have the certainty of a regular paycheck You need to choose the right sector – for YOU and your set routine. It may be months before the emerging sectors with big opporbusiness begins to make a profit. Can you survive F RANCHI SET HI RDAD 2 2 0 1 4 - 0 2 - 2 7 T 1 1 : 2 3If :you’re 3 2 +looking 1 1 : at 0 0 tunities – pat yourself on the back. But if the business » that period? You may be putting in extra hours and
Franchises offered for the first time.
4000 MEMBERS HAVE JOINED OUR PROPERTY MILLIONAIRES CLUB AND COUNTING
“
“
The Property Club is dedicated to providing Australians with the opportunity of a better life through property investment. To celebrate 20 years in property, we are offering a limited number of Property Club franchises. This is a unique, first-time offer to be part of an organisation that has over 80,000 members, plus we have made more property millionaires than all the rest combined, with over 4,000 members in our Property Millionaires Club and counting! Take advantage of this exclusive opportunity by contacting us today. — Kevin Young Founder and CEO of Property Club
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Know your numbers Make sure you are clear on the investment levels. This is not just about understanding the initial franchise fees but legal fees, fees for commercial advice and working capital. You should also be clear on the ongoing fees and cost structures so you understand what you will actually be earning once you are a franchisee. Is the franchise system you are considering proven and profitable? Before you spend your life savings to buy your freedom, be sure you are investing in something worthwhile. Consider whether the business is established; can it demonstrate a track record of profitability; does it have growth potential? Are the current stores within the network operating profitably and providing franchisees with a good return on their capital and time? Are the current franchisees happy? It is essential to talk to current and past franchisees. Find out whether the franchisor provided initial training and support in the early stages of operation. Ask franchisees if the franchisor is providing ongoing support to help make the franchisees’ businesses more profitable and improve their performance. Is there a good working relationship and open communication? It is important to get as much real feedback from franchisees as you can. 94| FRANCHISING MAR/APR 2014
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Has the franchisor invested in their brand and marketing activities? A strong brand is one of the keys to your success. And it is more than just the name and logo; the brand extends to the customers’ experience and how the franchise is perceived by the public. If the franchisor has invested in building a brand that consumers know, understand and are engaged with, it will be easier for you to create a profitable business within that. Look for systems and processes Underpinning a strong brand in any good franchise are well-defined systems and procedures, a solid support infrastructure and a standardised approach. Look for systems that create efficiencies and make it easier for you to focus on doing more business with your customers. These are just a few of the important areas you should include in your due diligence process when assessing a franchise system. It’s great to be ambitious and even quit your job for bigger and better things, but be sure to look at each franchise opportunity with a critical eye, get the right advice and make a fully informed decision. F John Di Natale is managing director of Axis Advisory, a boutique consulting firm working closely with entrepreneurs and business owners to help them grow a more rewarding, more exciting and more profitable business.
Images: Thinkstock - Mehmet Can (left); Michael Blann (right)
you’re considering buying doesn’t ignite your passion and really fire you up, then you shouldn’t buy it! There’s no point investing in the right market if you don’t love the brand, the products and the customers. You’ll end up hating your ‘job’ again except this time, you won’t be able to just leave your investment behind and walk out the door.
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JOIN THE
DREAM TEAM
Vendor finance now available* *Available to approved applicants
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 • Business finance available to approved applicants
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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Issues | Profit
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UNDERSTANDING $
PROFIT EXPECTATIONS
It can be fun to dream about how much profit you’ll make in your first year in business. But have you thought about what profit is, and whether your dream is realistic?
I
ndividual profit goals vary from franchisee to franchisee, as do the timescales for reaching these goals - as you can see from the results of our online poll, shown below. So can you expect to make a profit in your first year as a franchisee? It depends.
SmartFranchise co-founder Kate Groom writes Some businesses do make a profit in their fi rst year, but not all – even in a franchise system. The reality is it takes time for a business to consistently make enough revenue to cover all the expenses, pay a wage to the owner, and have something »
* online poll at www.franchise.net.au: How much profit are you budgeting for in your first year as a franchisee?
The Profit Poll results
Image: Michael Bevan
This franchise.net.au poll reveals that the vast majority of respondents expect to earn more than $50,000 in profit in their first year in business. Just under five percent believe they will make a loss in their initial 12 months of trading.
Make a loss = 4.92%
No profit, = 15.16%
<$50,000 = 15.98%
How much profit are you budgeting for in your first year as a franchisee?
>$150,000 = 16.8%
Is your profit number realistic?
$100,000 to $150,000 = 23.36%
$50,000 to $100,000 = 23.77%
What’s included in total expenses?
Cost of goods, rent, electricity, royalties, accounting fees, staff wages + your wages
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Issues | Profit
WHAT IS PROFIT? Here’s one definition: profit is the financial benefit when revenue from business activity exceeds the expenses needed to keep the business going. Profit = Total Revenue – Total Expenses This raises another question: “What’s included in total expenses?”. People usually agree it includes all left over as profit. the business costs, for instance cost of goods, rent, So, when I see the results of a poll* that 16.8 electricity, royalties, accounting fees and staff wages. percent of people expect to make than $150,000 in But what about your wages if you work in the their fi rst year, a question I ask is “What is their business? In a franchise, there can be debate about idea of profit?”. whether profit is before or after owner’s wages. Do This may seem like a silly question, but profit can you consider a business to be profitable if owner’s mean different things to different people - even to wages aren’t taken into account? different accountants. So when it comes to assessYou might want to think of profit as what’s left ing a business it’s important to be clear what you’re after paying yourself a reasonable wage. Which thinking of. then raises the question, how long will it take to Are you thinking profit is the money received reach that point? The way to get a sense of this is by from customers before or after paying business preparing a budget and cash flow projection. expenses? Is it before or after tax? Would you have Having worked through the numbers, there’s paid yourself a wage? How do loan payments fit in another thing to consider. For most business owners, to the picture? money is important, but it isn’t everything. Some After all this, what reason do you have to think people make a fortune from a franchise, others are that profit number is realistic? happy with a reasonable living. So before you get So here are some things to bear in mind as you get F R0 9 1 3 _ 0 4 5 _ AUS 1 2 0 1 3 - 0 8 - 1 9 T 1 1 : 3 8 : 1caught 9 + 1 up 0 :in0the 0 dreams, maybe take a moment to an understanding of the financial side of the business. consider your priorities. F
What reason do you have to think that profit number is realistic?
We’ve Got You Covered Enjoy the benefits of being apart of Australia’s No 1 outdoor blind franchise • Exclusive Products & Territory • Group Advertising & Purchase
• Excellent Return on Investment • $220,000 to $240,000 to Turn-Key
Aussie Outdoor has become the most trusted and respect outdoor blind franchise. Aussie Outdoor franchisee’s and team members pride themselves on providing quality products and services with honesty and integrity at all times. Becoming an Aussie Outdoor franchisee is enjoyable and financially rewarding offering a great lifestyle. For further information Contact: Lloyd Gaunt on 0415 112 122 or email: lloyd@aussieoutdoor.com.au | www.aussieoutdoor.com.au
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Image: Thinkstock - Peshkova
• No Experience Necessary • Full Training & Ongoing Support
FR0114_000_GAM
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TAKE CONTROL!
Special Cosplay guests Sarah & Dylan pictured above.
Gametraders Live is totally unique in Australia - stores opening nationally!
IS THIS YOU? • You grew up with gaming and can tell a Super Nintendo from a Playstation 4. • You know what a Cosplayer is and how this sector is booming. • You love interacting with like-minded people and have a passion for video games, Warhammer, Yu-Gi-Oh, Pokemon and Magic tournaments, Cosplay activities plus anything else that’s hot. Find out about owning your own Gametraders Live franchise and changing your today into an exciting tomorrow. Setup costs including stock approximately $225,000 plus GST and working capital. Contact Mark Langford marklangford@gametraders.com.au or call (08) 8338 2557.
www.gametraders.com.au
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Franchised outlets accounts for 87% of locations, up from 81% in 2002, showing a drop in company owned outlets. 36% of sales is sourced from international operations, up from 27% a decade ago.
CASUAL DINING PERSONAL CARE FITNESS
SANDWICHES
PERSONAL CARE
10%
OF THOSE MULTI-BRAND OPERATORS
QSR
58% OF THOSE ARE AUTO RELATED
54%
US FRANCHISING
MULTI-UNIT
AUTO
66%
PERSONAL CARE & SERVICES LIKE AGED CARE
82% QSR QUICK SERVICE RESTAURANT
From GOOGLE:
TRILLION REVENUE
top 10 companies listed in Fortune 500.
8
3
BILLION
YEARS
people online every day - 42 percent of the global population. Of these, 1.5 million activities from Android devices.
Within 8 years there will be 75 billion devices in use; any daily gadget [including fridges, watches, glasses, microwaves] that isnâ&#x20AC;&#x2122;t connected to the internet will be thrown away
2
DAYS
Every two days we create more data than has been from the dawn of time to 2003
**Locations up by nearly 4,000, revenue up from $17bn in 2002 to $26.3bn in 2012 * source The Franchise Times ** Restaurant Finance Monitor 2012 v 2002,
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$2.1
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2. Infinite choice This trend matches infinite choice with increasing expectations: one thing customers don’t want to see is a queue, either in a store or online. An example of business meeting this trend is the UK supermarket chain Tesco that developed an online shopping screen at Tokyo railway station that allows travellers to tap and buy their purchases for pick up at their destination station.
How do you get the synergy? Rowe cites Massage Envy, a franchise that provides strong training and a template which allows flexibility for franchisees. Franchisors and franchisees need to know what, when and where customers are searching and tailor information to them. An instant survey at the convention session revealed that in answer to the question, ‘how many of you are optimising your marketing plan based on hard data received tracking ROI?’, about 44 percent were not. 3. Experts are everywhere A study conducted with franchise survey firm Expertise in a subject is no longer solely the territory FranData, questioning both franchisees and franchisors, of the traditional influencers: media, associations, showed 50 percent optimise ROI on marketing. “If you business chiefs. Emerging experts and commentadon’t measure, its tough to manage,” comments Rowe. tors could be bloggers operating within your market The stats from FranData also indicate $48 billion and they can be great advocates for your brand. It is is spent on digital marketing in the US, with 40 important that businesses know who they are and percent achieving ROI from online, and 18 percent start working with them. on offline activity. “These trends are happening now and for two to 4. Re-imagining your business three years we have the opportunity to capitalise on Some well established companies are using technolthese,” insists Rowe. ogy to put a spin on the business. So how is the franHe cautions that those franchisees or franchisors chise you are considering re-imagining its business? who watch them pass by will translate this nonCheck out Spotify, Uber, Flipboard and Airbnb. action into loss of market share and loss of income.” In the franchising industry, marketing is a balancBe where your customers are and where they are F R0 1 1 4 _ 0 0 0 _ AUT 1 2 0 1 3 - 1 1 - 1 9 T1 7 : 0 8 : 4 6 + 1 1 : 0 0 ing act between a national brand and local execution. searching. That’s the advice from Rowe. F
Motor into your next adventure
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OPPORTUNITIES AVAILABLE NOW!
For further information call now
1300 550 155
or go to autobarn.com.au
WWW.FRANCHISE.NET.AU
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WHAT YOU
NEED TO KNOW
ABOUT AN
OPERATIONS MANUAL
Why an operations manual is important, and what to look for. By Jacinta Caithness, PwC
I
n its simplest form, an operations manual is effectively the instruction manual for running a franchise business. It should include information and guidance on all aspects of what a franchisee needs to do in order to run their business as per the operational and branding guidelines of the franchisor.
The franchise agreement governs the franchise relationship between franchisee and franchisor. Once a franchise agreement is signed, it cannot be altered (without agreement from both parties) for the term of the agreement (typically at least five years in Australia). However, the operations manual can typically be changed at the discretion of the franchisor, depending on the terms of the franchise agreement. Given this, the operations manual is a critical tool in influencing the behaviour and operations of the franchisee over time. It provides a franchisor with a level of control and ability to enforce desired behaviour and actions within the operation of a franchiseeâ&#x20AC;&#x2122;s business, in order to uphold and protect the brand, but also provides the flexibility and freedom to be able to change and adapt the system Âť
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WHAT IS THE PURPOSE OF THE OPERATIONS MANUAL?
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to changing customer needs as well as new technologies and systems introduced to the franchise over the term of a franchise agreement.
The operations manual can be used as the basis for initial franchisee induction and training A BASIS FOR TRAINING The operations manual can be used as the basis for initial franchisee induction and training. As the operations manual covers all areas of running a franchise business it should therefore be an effective base to provide training to a franchisee. Using it as the basis for induction and training will also help the franchisee become familiar with the manual, increasing its use and effectiveness within the system. For a franchisee, the operations manual should be the first point of reference in relation to the running A D _ F R J U S S EofPtheir _ 1 2business. . p d f Initially, P a g aefranchisee 1 1 4will / 0 use 8 / the 1 2 , operations manual on a daily basis, as they familiarise
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themselves with expected operations and practices. As the franchisee becomes more comfortable and proficient with the operations of the system, they will refer to the manual less frequently, but it should still be a key resource for them in running their business.
WHAT IS IN AN OPERATIONS MANUAL? A best practice operations manual will cover the following topics: • Introduction • Administration • Compliance • Customer service • Products and services • Marketing • Human Resources • OH&S • Finance • Merchandising • Pricing • Stock • Cleaning and maintenance • Security 9• : IT 4 1 AM • Reporting and performance
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In addition, the manual will need to cover any business specifics relating to a particular industry or sector (for example – food safety for a food retail business). Typically, the content within each of these sections will be broken down into smaller policies, whereby franchisees can easily search and find relevant information.
HOW TO FIND THE INFORMATION
Image: Thinkstock - Elnur Amikishiyev
It is important that any operations manual is as easy to use as possible. Having a comprehensive, detailed operations manual is pointless if it is never used by franchisees! Making it easy to use and understand means: • Using easy to understand language. No one likes reading legal documents, and franchisees will be less inclined to use a document they find hard to read. The language should be as simple as possible, whilst still remaining authoritative enough to ensure franchisees comply where relevant. • A user friendly layout and design. Being able to find specific information easily (through indexing and search functions etc) - if a franchisee is unable to find the relevant information they are after, the manual will be of no use. • Ease of update – documents can be updated in real time, as changes are made. • Interactivity and engagement – an electronic format allows franchisors to include interactive and engaging content such as videos and online training modules. While many franchises provide the traditional hard copy manuals to franchisees, an increasing number of franchisors are providing operations manual content electronically. This involves the use of an internal or cloud-based content management system that can be used to store all relevant documentation, policies and forms online. In summary, an effective operations manual will form the backbone of franchisee operations, and can go a long way to ensuring the success or otherwise of a franchise system. A robust and comprehensive operations manual will provide an excellent return on investment through more improved and aligned franchisee performance. F Jacinta Caithness at PwC has more than 15 years in the retail industry and has worked with some of Australia’s leading brands, including Boost Juice. She developed the franchise strategy and recruitment methodology for Boost Juice and Salsas at Retail Zoo, appointing over 160 franchisees within the domestic network over a five year period. Later, as CEO International and board member, she expanded the juice business globally. WWW.FRANCHISE.NET.AU
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How to... | Marketing
HOW GOOD
IS A FRANCHISE
MARKETING?
You will be promoting your business as a franchisee, so how will the marketing team support you? Paola Tanner pinpoints some key considerations
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hen you are looking to buy a franchise, most brands will claim that they provide marketing support. That is a very broad statement which represents very different things for different brands. It is up to you to lift the bonnet and find out to what extend that support is going to help your future business. What you ultimately want to find out is if the franchisor will provide you with the support you need both from a branding and a sales-driving perspective. You might have marketing skills and feel a flexible franchise would give you an opportunity to thrive in this area or you might prefer the franchisor to provide both guidance and execution. The first step is to decide what you prefer so you know what to look for. In my 12 years dealing with franchised brands I have found a lot of different ways to provide marketing support, from a well-structured marketing team with national and local expertise, systems and a marketing calendar to the marketing function done by the founders or someone at head office who doubles in another role. This is typical in the early stages of franchising; there is nothing wrong with joining a new system and in fact, you will probably get a lot of attention from keen franchisors. Early franchisees often develop very strong relationships with their franchisors but what you need to be mindful of is how things will change as the chain grows and is no longer able to provide that level of support to all franchisees. This will most likely have an impact in your business later on. If considering a new system, I would be asking a lot of questions about the foundations they are building now to be able to deliver the same support to their franchisees as they grow. It is a good idea to talk to different people within the brand, including existing franchisees to get a perspective from outside of head office. Here are some questions you can ask in order to consider if a franchise marketing function is right for you: 1. What does the franchisor provide in terms of marketing campaigns, how often and what channels are covered by the national fund? 2. Does the marketing team have the right skills mix to drive the brand? Is this a team with strategy and implementation covered? Depending on the size of the chain this might be all in one person, multiple people, separate teams or an outsourced model. 3. Is this supported by an agency or is the work managed in-house? 4. Does the franchisor have the right systems and tools to manage and track campaigns? 5. Are franchisees able to execute campaigns independently? Are franchisees able to execute local store marketing (LSM) in the digital world?
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6. What national and/or local activities are organised by the franchisor and what is expected of franchisees? Do franchisees get the opportunity to participate on national campaigns and leverage the economies of scale? How is this process managed? 7. Does the company have a database of customers and prospects that can be used to drive sales? Is this database independent of the marketing channels used so it can be used in the future, regardless of what the popular marketing channel is at the time? 8. Does the marketing team have the right platform and a solid database to execute campaigns? Franchises are slowly moving their marketing to new media. This transition requires platforms and knowledge and some franchisors are going about it better than others. 9. How does the franchisor facilitate local area marketing? What is the process a franchisee needs to follow to organise local marketing activities? 10. Is there access to local area via a platform? Are there staff solely dedicated to helping franchisees with local area marketing? 11. Does the company have a social media policy? Is it active in this space and do franchisees particiFpate R 0in1 the 1 4social _ 0 0media 0 _ Ustrategy? NI 1 2 0 1 3 - 1 12. How does the marketing department
communicate with franchisees? Is there a franchise advisory council? How is your voice going to be heard? 13. Does the marketing team have enough resources to provide support to franchisees? 14. Are franchisees happy with the marketing function? Do they think the franchisor delivers in this area? All of the questions above need to be asked to the franchisor and ideally to as many franchisees as you can talk to. In summary, what you are looking for to support your marketing is a franchisor who: • Drives a solid marketing strategy with open communication to franchisees. • Has a team with the skills and resources to support the growth of the brand. • Builds and maintains a solid database independent of any marketing channels. • Has systems and tools to be able to implement campaigns across multiple channels efficiently. • Has a solid platform to manage local and national campaigns and link digital and traditional channels. • Has a vision for how franchisees can execute LSM and empowers franchisees to market locally. • 1 - Ultimately 1 5 T 1 2 a: franchisor 0 9 : 5 6aligned + 1 1 :to 0the 0 way you would market your business so you get the right support. F
Fuel your future with a
Franchise
When you decide to become a United Franchisee you are choosing one of Australia’s largest independent petrol and convenience retails. CANSTAR WINNER “MOST SATISFIED CUSTOMERS” FOR 3 YEARS IN A ROW! Be your own boss Tenure: 12 years (2 x 6 years) ROI: Generous Fuel Commissions Support: National promotional program Training: 4 week induction Contact details – 03 9413 1400 franchiseinfo@unitedpetroleum.com.au | www.unitedpetroleum.com.au
2011
2012
2013
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How to... | Avoid fake franchises
SCAM ALERT! S
CAMwatch, a website is run by the ACCC, is warning people thinking about buying a franchise or small business to beware of what appear to be exciting new franchise opportunities that may actually be scams. Franchising scams can come in the form of a pyramid scheme dressed up as a reputable franchise. These scams may appear to be slick and professional, with a sophisticated website, marketing material and buzz-words. The scammers may also promote the franchise as a golden opportunity for investors to join a ‘proven’ business that requires minimum effort, experience or skill with instant rewards. A legitimate franchisor will provide a prospective franchisee with a disclosure document 14 days before entering into an agreement or handing over any money (as is required by law under the Franchising Code of Conduct).
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This document should contain important information about the franchise, including the payments to be made, the contact details of existing and former franchisees, and inform franchisees of their cooling off rights. The tell-tale sign of a pyramid selling scheme is that they recruit people rather than selling a legitimate product or service. In a recent example of such a business opportunity it is difficult to identify the true nature of the business and pin-point what is actually being bought or sold. In the end all pyramid schemes collapse, leaving participants with empty pockets and potentially in hot water too as these schemes are illegal in Australia. If you are interested in joining a franchise, make sure you know what you’re getting into – pyramid selling schemes are often highly sophisticated and hard to tell apart from genuine offers. If you sign up to a fake franchise, you will lose your money. »
Image: Thinkstock - Andrew Furlong Photography
Caution should prevail when looking for a franchise that looks too good to be true, warns the Australian Competition and Consumer Commission
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HOW THESE SCAMS WORK 1. You come across a franchise system or small business opportunity advertised online. You may come across the website directly or alternatively through an online selling platform. 2. The website appears to be the real deal, with a slick and professional design. It may contain information that appears plausible for a genuine business site such as a business model, mission statement, industry statistics, diagrams, support services for franchisees such as mentoring and training programs, and free marketing tools. It may also use buzz-words such as ‘risk-free’, ‘not-to-be-missed’, ‘high return’, ‘unique’ and ‘innovative’ to entice you to join. 3. Despite all the information provided, if you actually look for what the franchise is selling, it is hard to put your finger on exactly what is being bought or sold. 4. In order to participate, you have to pay significant upfront costs to join the franchise.
5. Once you sign up, you will be required to recruit other ‘franchisees’ or ‘franchise partners’ to join the scheme. You find that you will not only never get the returns that were promised, but you will also have to continue to approach and sign people up. Remember that if you sign up prospective franchisees, including family and friends, you will not only be involving them in the scheme, but also breaking the law. In the end, all pyramid schemes collapse and you will lose your money.
PROTECT YOURSELF Seek full information Ensure that you receive a disclosure document from the business before handing over any money. If you are not provided with such a document, walk away.
Make sure the business you are dealing with is the real deal Ask around, search online and contact existing and former franchisees. Don’t just rely on information from the business but seek out independent 2 0 1 4 - 0 2 - 2 1 T 1 4 : 0 2 : 5sources 4 + 1 1to: verify 0 0 the information. If you have any doubts, don’t sign up
Pyramid selling schemes are often highly sophisticated F R0 3 1 4 _ 0 0 0 _ BUS
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What is the difference between a good business and a really successful one? Local Area Marketing Connecting with your local community, being an integral part of that community, can be the difference between being Good or being Great. But how do you do that when you are flat out just running the business? Sure, your franchisor provides lots of support and marketing but you want to do even better.
Business Plaza Business Plaza provides a Local Area Marketing solution, connecting you with your local community to build local business for you – almost like word of mouth marketing and extremely cost effective. At Business Plaza we have more than 5,000 communities across Australia, mainly sporting clubs and associations, with over 4 million current members. Sound interesting and would like to know more? Contact us for more information. www.businessplaza.com.au - admin@businessplaza.com.au - 02 8197 2340
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Don’t get involved If you believe that an offer is a pyramid scheme, do not take part; it is very likely that you will lose your money and you could be breaking the law. Participating in a pyramid selling scheme is illegal in Australia. Remember, these days, it’s easy for a scammer to create a professional looking website and to use convincing marketing jargon. Being aware of the dangers is the first step in avoiding the fakes. F
WHERE TO GO FOR HELP Understand what you are purchasing Ask yourself, what is the service being sold? Do not enter into an agreement if you do not know what is being offered. Resist the sales pressure Do not succumb to high-pressure or buy-it-now sales tactics. Take your time to understand what you are agreeing to.
For more information on how to avoid a franchise scam, visit the SCAMwatch website at www.scamwaatch.gov.au Additional advice about what to look for when choosing a franchise and what should be contained in a disclosure document, can be found on the ACCC website: www.accc.gov.au/business/franchising.
You can find out more about what’s involved in franchising by taking a free pre-entry online program run Minimum effort does not reap maximum rewards jointly by Griffith University’s Asia Pacific Centre for There are no get-rich-quick schemes and the only F R0 3 1 4 _ 0 0 0 _ DRE 1 2 0 1 4 - 0 2Franchising - 1 1 T 1 Excellence 1 : 2 8 : and 5 2the + 1ACCC: 1 : 0 0 people who make money are the scammers. www.franchise.edu.au/home/education.
Kitchens, bathrooms & bedrooms
Dream Doors – Don’t let anyone steal your dream… Territory Master Franchise areas available with initial costs: NSW $350,000 VIC $270,000 QLD $220,000 WA $120,000
SA $90,000 TAS $80,000 NT $50,000
Hi, my name is Derek Lilly and I am the worldwide co-founder of Dream Doors, an internationally proven franchise system with a 14 year history of success. I am now expanding into Australia via Territory Master Franchisees and I am looking for Marketers’, Business Innovators and Entrepreneurs to develop the brand in Australia with me. History of success:
50 Franchises in the UK where I founded the business. 10 Franchise areas sold in NZ 2013 record Franchisee sales returns I have an extremely happy network of Franchisees in NZ (Just ask them!).
Now I want to share my success and winning formula in Australia, with like minded people. The question “does this business work or not” is no longer open for debate! Individual Franchise opportunities available throughout Australia
For more information e: del@dreamdoors.com.au w: www.dreamdoorskitchens.com t: +64 34435133
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How to... | Insurance
SAFE-
GUARD
YOUR ASSETS
F
or any franchisee, it’s important to have personal insurances to protect their families. In some cases, insuring through a superannuation fund can maximise the effectiveness of the policies.
ADVANTAGES Benefits to holding personal insurance cover through a superannuation fund: • Premiums can be cheaper due to bulk discounts available to super funds • Many funds provide automatic basic cover without the need for medical questionnaires or assessments • It can be more tax-effective, as premiums are paid from the super account with pre-tax dollars, rather than from the member’s tax after dollars • Paying insurance premiums automatically from the superannuation account means there is no impact on household cash flows. But there is a downside.
POTENTIAL DISADVANTAGES • The limited level of cover available may not fully protect your family • Some types of cover may only protect you for a short time in the event of a payout • If you have multiple super funds, you may be paying for more cover than you require by being insured within every fund • If you change employers or superannuation funds, your insurance cover may lapse • Your insurance cover may automatically decrease/ cease as you get older/reach a certain age • Insurance payouts may be delayed, as benefits are paid first to the superannuation trustee, who then distributes them to beneficiaries. So which personal insurances work best in super, and which are better held outside?
LIFE INSURANCE
How you manage your personal insurance options can reap extra rewards suggests Glenn Roberts of HLB Mann Judd
TOTAL AND PERMANENT DISABILITY INSURANCE Total and permanent disability (TPD) insurance provides a lump sum if you become totally and permanently disabled, and can be used to cover rehabilitation costs, debt repayment and living costs.
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Term life insurance pays a lump sum on the death of the person insured: this type of insurance works well inside superannuation. Many funds offer a default level of cover that can be altered to suit your needs. While premiums paid outside superannuation are not tax-deductible, benefits are paid out taxfree. Inside super, premiums are tax-deductible, but benefits are tax-free only when paid to dependents.
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Within super, TPD payouts are subject to tax, but premiums are tax deductible. Outside superannuation, the reverse generally applies. Policies should be checked as some use the definition of ‘own occupation’ rather than ‘any occupation’ to determine payout elegibility. This can significantly affect your outcome in the event of a claim, as benefits can effectively be trapped within the super fund if the person doesn’t satisfy the legislated definition of TPD. From 1 July 2014, super funds can only offer TPD policies which satisfy the definition of TPD under superannuation law. This will prevent the use of ‘own occupation’ policies within super; however existing policies will be grandfathered.
TRAUMA INSURANCE
INCOME PROTECTION INSURANCE This type of insurance replaces 75 percent of your monthly income while you are unable to work due to illness or injury. As premiums are tax deductible to individuals, there is no real tax advantage to holding income protection through superannuation. In addition, many super fund policies have benefit periods of two years, while policies held outside superannuation provide optional benefit periods up to the age of 65. Personal insurance is a complex area, and professional advice can help you maximise you cover in the most cost-effective way. F HLB Mann Judd is an accountancy group offering business and financial advice
Trauma insurance provides a lump sum benefit on diagnoses of certain injuries or illnesses, such as heart attack or cancer. In the event of a claim within super, the payout goes into the super fund, which can only release the money if the member meets a ‘condition of release’ such as reaching age 65 or ceasing employment. this FFor R0 3 1reason, 4 _ 0 trauma 0 0 _ Finsurance R E - is1not2usually 0 1 4 - 0 2 - 1 9 T1 0 : 4 4 : 5 1 + 1 1 : 0 0 held within superannuation.
Paying insurance premiums automatically from super means there is no impact on household cash flows
Fresh Healthy Vending International, Inc.
www.freshvending.com
JOIN THE HEALTHY VENDING REVOLUTION! Fresh Healthy Vending is the leading healthy vending machine company in the world. We pioneered the healthy vending concept and capitalise on a growing market of health conscious consumers. Healthy Vending is now the most exciting category in vending and Fresh Healthy Vending is looking to partner with like-minded entrepreneurs who share our vision in Australia.
Australia Master Franchise/Joint Venture Opportunity Available Now!
$500,000 USD
FRESH HEALTHY VENDING OFFERS: • State of the art machines with distirbution Australia-wide • Access to local, healthy and nutritious product choices for distribution Australia-wide
• Marketing and sales support • Two weeks of training at our San Diego, California headquarters on all aspects of replicating our successful business model
• Dedicated account management For more information on this opportunity please contact -
WWW.FRANCHISE.NET.AU
DAVID NEWPORT Head of Global Sales - Global Franchise Partners david@freshvending.com - www.freshvending.com
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Advice LEGIT | LEGALESE MADE EASY
What franchisees need to know about
selling their businesses
1. THE FRANCHISE AGREEMENT PROCESS
ESTHER GUTNICK Senior associate, Mason Sier Turnbull Laywers
Most franchise agreements stipulate that the franchisee cannot transfer the business without the franchisor’s consent. There are often detailed transfer/assignment clauses which set out the steps and pre-requisites to obtaining the franchisor’s consent. The process and criteria can include: • the required timeframe, format and content of any request for consent; • any obligation for the franchisee to first offer the business to the franchisor and the process for the franchisor’s exercise, or rejection, of its first option to purchase the business; • any obligation for the franchisee to provide information regarding the prospective purchaser and to satisfy the franchisor of the purchaser’s suitability as a franchisee; • any obligations for the franchisee to train the purchaser; • the franchisee’s obligation to remedy any outstanding defaults (if relevant); • the transfer documentation to be signed by the franchisee and the purchaser; • obligations regarding payment of any fees and costs, such as a Transfer or Assignment Fee, any new Franchise Fee, and the franchisor’s legal costs associated with the transfer; • any requirements for a re-fit or upgrade of any premises or vehicle used in the franchised business; • any requirements regarding occupancy of the premises, such as a transfer of any lease or occupancy licence. Franchisors also often have more comprehensive transfer processes set out in an operations manual or separate transfer policy, which must also be followed. The Franchising Code of Conduct also governs some aspects of the process, stating that a request for consent must be in writing and the franchisor must not unreasonably withhold its approval. The Code also dictates that the franchisor is deemed to have consented if it does not give the franchisee its formal written refusal (including reasons) within 42 days of receiving the request.
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elling any business can be complex and the sale of a franchised business usually involves a few extra critical steps. Here are some of those additional issues that a franchisee may face when selling its business:
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Franchisees should familiarise themselves with and follow, the terms of the franchise agreement transfer process and procedures to make this a smooth and efficient sale process.
2. FACTORING THE FRANCHISOR’S REQUIREMENTS INTO SALE NEGOTIATIONS When a franchisee puts a business up for sale, it is wise to take into account the franchisor’s requirements before determining the sale price and key terms. For instance, if the purchaser will be obliged to pay a fee to the franchisor or spend significant funds on a premises refurbishment, the franchisee’s asking price should be adjusted accordingly. Similarly, in setting the proposed settlement date, the franchisee should allow sufficient time to enable all the necessary conditions to be satisfied. Any key conditions, such as the fact that the sale is subject to the franchisor’s consent and the transfer of a lease, or subject to any payment, training or action on the part of the purchaser, should be confirmed in both preliminary negotiations and in the sale contract. If these matters are dealt with early, franchisees will reduce the risk of the sale being delayed or cancelled.
3. LEASE OR OCCUPANCY AGREEMENT Where the business operates from premises and the franchisee holds a lease or sublease of the premises, the franchisee may need to transfer the lease or sublease along with the business or negotiate the grant of a new lease/sublease to the purchaser. To avoid unexpected delays or impediments to the sale of the business, franchisees should take action early by approaching the landlord (sometimes via the estate agent or shopping centre management) to seek consent and attend to any requirements or conditions. Franchisees should also negotiate with the purchaser to determine who will be liable for any costs of drafting the necessary documentation and of procuring the consent of the landlord and any mortgagee on title to the premises. If the franchisor holds the lease and has granted an occupancy licence to the franchisee, the purchaser may be required to enter into a new occupancy licence and the landlord’s consent to such licence may need to be obtained.
4. RESTRAINTS Franchisees are often bound by a restraint of trade for a period of time after the sale of the franchised business. Such restraints usually prohibit the franchisee from operating or being involved in a similar or competing business, and from canvassing customers, suppliers or employees of the franchised business. Purchasers sometimes also seek to impose additional restraints in the sale contract. Before selling, a franchisee should have a clear plan for any intended future employment or business ventures and should make contingency arrangements for deriving income without breaching any enforceable restraints.
5. ONGOING OBLIGATIONS Some obligations imposed under a franchise agreement remain binding even after the franchise agreement ends. Franchisees should ensure they are aware of, and comply with, all such provisions; for instance those dealing with the use of confidential information or intellectual property, even after selling the business.
The franchisee cannot transfer the business without the franchisor’s consent In addition, franchisees must deal with the multifarious issues that ordinarily arise when selling a small business, such as obtaining legal and accounting advice, giving due consideration to any tax consequences, preparing a “section 52” statement (if applicable), negotiating the deal and the terms of any contract, handling employees, suppliers and creditors of the business, transferring any business names, licences or permits and necessary service or supply contracts, calculating adjustments, attending to stocktake and cancellation of utilities. Early preparation and clear communication with all relevant parties is key to achieving a smooth sale for a franchised business. F Esther Gutnik is a senior associate, MST Lawyers WWW.FRANCHISE.NET.AU
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Opinion THE SKETCH | TRENDS AND DEVELOPMENT
What does franchising excellence look like?
ANDREW TERRY Professor of Business Regulation in the University of Sydney Business School
Excellence in franchising is an holistic concept requiring best practice across the entire spectrum of not only a business but also of a relationship level, but one nevertheless front of mind to awards judging panels, it is one of substance and style. I suspect that for any awards judge it is very frustrating when an exciting concept or operation or initiative is not presented convincingly or attractively or compellingly. Innovation or technological superiority of itself is never enough. Older readers may remember that, in 118| FRANCHISING MAR/APR 2014
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lthough we all presumably strive for excellence in our personal and professional lives it is possibly true that, at least in my case, this is instinctive rather than strategic and with little thought as to what excellence actually entails. Excellence was an issue I nevertheless had to confront over 15 years ago when I first became involved in judging the FCA’s Excellence in Franchising Awards. In this role I was privileged to read the submissions of both franchisors and franchisees who were seeking recognition as best in class. The stories were, and indeed in relation to a new generation of award entrants still are, genuinely inspiring. The theme of my speech at the awards presentations was always that of ordinary people doing extraordinary things. This was to me what encapsulated excellence – an insight which resonated as a direct result of my awards judging experience. On researching for this column I was disappointed to discover that my insight was not original; the credit in the literature being accorded to John W Gardener: “Excellence is doing ordinary things extraordinarily well”. On mature reflection I am not surprised or disappointed in not being recognised for my insight which is so obvious to anyone who bothers to think about it. I have no idea of the context for Gardner’s quote but it doesn’t matter. Excellence transcends boundaries and applies to any field of endeavour. Perhaps the most enduring lesson from judging Excellence in Franchising Awards – apart from the inspirational examples contained in the entries – is that excellence is an holistic concept. It pervades all aspects of an enterprise’s operations. At a superficial-
the video cassette era prior to DVDs, VHS prevailed over Betamax despite the latter’s technological superiority. The fate of the BlackBerry is of course a more contemporary example. Conversely, gloss and glitter (style, in other words) will not convince judges if the underlying substance of the proposition is meagre; even if the general public can be swayed, albeit temporarily, by the hype. Excellence in the franchising context requires best practice across all aspects of the business. Franchising is a package. The franchise product (the goods or services offered by the system) is of course the most basic element of the package but it is simply one element. It is not called a franchise system for nothing. The system is a package comprising brand, image, standards, product sourcing, marketing, technology, networking, training and support to mention only the most obvious elements. And of course this package is overlaid with the relationship between the franchisor and the franchisee which gives rise to so many issues: legal, commercial and personal. Franchising, superficially, is a quite straightforward concept. The reality of course is much more confronting. It is a complex and intricate commercial relationship, undoubtedly the most challenging in the business world. Excellence in franchising is similarly demanding. It is not simply a matter of producing a superior widget which can be acknowledged in a best widget award; it is not simply a matter of producing a superior, award-winning advertisement; nor is it a matter of building a beautiful relationship which can be recognised in such an award. Excellence in franchising is an holistic concept requiring best practice across the entire spectrum of not only a business but also of a relationship which often – but, given the depressing statistics on marriage failure, not necessarily helpfully – is described as a commercial marriage. F
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“Take Control Of Your Life & Build a Future for Yourself”
8 weeks paid training ($1000 per week) Ongoing Training and support Plentiful Work Leads As a former furniture/cabinet maker, Danny was confident ‘on the tools’ and found the transition to fencing quite easy. However as he had never owned his own business before, he knew he would find the administration and sales side a challenge, so the 8 Week Paid training program was definitely an influencing factor in his decision to buy. “The time was right and I wanted to work for myself,” Danny said. “During the training period as well as learning the practical, hands on side of it, I learned I needed to know to set up the business and develop my sales skills before I went out in the field.” “From a hands-on point of view, learning the different techniques used when building different types and styles of fences was very important. The trainer I had was extremely supportive, knowledgeable and very helpful.” Danny Frood – Jim’s Fencing (Blackburn)
Find out about becoming a Jim’s Fencing business owner today
131 546
www.jimsfencing.net
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Opinion PEOPLE | LEADERSHIP
Calm, curious and a bit bonkers
T
KARLI FURMAGE CEO of The Franchise Relationships Institute, a research and training organisation that has been helping franchisors and franchisees create profitable partnerships for 24 years
welve months ago my friend gave up her very secure corporate job for the life of a franchisee. I asked her “Knowing what you know now, if you went back in time would you make the same decision?” She said saying ‘yes’ or ‘no’ wasn’t enough of an answer. ‘Yes’, she would make the same choice again in a heartbeat. She loves the fact she’s toughened up, she’s constantly learning new skills, she’s creating something that’s all hers, she’s helping her customers and the joy that comes with all that. Plus she’s excited she’s finally started to break even. In saying ‘no’, she spoke of the sleepless nights, worrying about how to pay her bills, the dark patches thinking she was a failure because the business wasn’t making money, managing a team of people, the sheer volume of work needing to be done and taking every set-back to heart. I’ve been there and I suspect many small business owners have: when it’s yours, business is personal.
FINANCIAL CONCERNS You may be putting your house, savings and usually your financial security on the line. The stakes are high, financially and emotionally. Your pride is on the line. What if it all goes pear shaped? About one in four small businesses will fail within the first two years. While franchising is a safer option, there are no guarantees. Something that is guaranteed is the emotional roller coaster that comes with owning your own business. Most emotions have a physical reaction, such as whooping for joy, high fiving an achievement or slamming doors in anger. Lonely. Pessimistic. Petrified. Exhausted. Confused. Hopeful. Determined. Playful. Happy. Inspired. Enthusiastic. Passionate. That’s just a small laundry list of what you will feel. Ups and downs are guaranteed. Uncertainty is guaranteed.
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SIX WAYS TO BE SUCCESSFUL While this uncertainty doesn’t suit everyone, it is a constant companion when you operate your own business. So, what to do? The answer is, be resilient and resourceful. We have found that successful franchisees do this by: 1. Acknowledging the roller coaster of emotions as normal and expected. In the long term trying to repress what you feel is a waste of energy. 2. Knowing how you usually feel and act in times of stress and uncertainty. You will be better prepared to address and manage the resulting emotions. 3. Surrounding yourself with trusted, experienced, objective advisors. 4. Staying connected and communicating daily with your franchisor and other franchisees. No one will know better what you are going through. 5. Continually seeking advice from successful and unsuccessful franchisees. Everyone has a story, and if we pay close attention we can learn. 6. Never gambling more than you are willing to lose.
SURVIVAL TIP If there is one stand out way of surviving and thriving on the roller coaster ride of emotions it would be this: Be calm and curious about what’s going on. By staying cool, biting your tongue, stepping back and taking a few deep breaths you will get a fresh perspective … and fresh perspectives always provide new paths. Being passionate about your business is a good thing. Being a resilient and resourceful franchisee means you will not only survive the white knuckle roller coaster ride, but you might actually be one of the mad ones with your hands in the air hollering with glee at every dip and climb. F
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Australia’s premier 7HVW DQG 7DJ IUDQFKLVH KDV RSSRUWXQLWLHV IRU SDVVLRQDWH IUDQFKLVHHV $XVWUDOLD ZLGH
<RXU $SSOLDQFH 7DJJLQJ 6HUYLFHV franchise ticks all the right boxes ….
Low entry costs
Large territories
Access to an established ATS Client base
Sales and Marketing support
High level of administration and operational support
Report preparation, invoicing, debt collection handled for you!
Genuine repeat business
Full training provided – no electrical experience required
Not weather dependant
Part of the $10 billion safety industry
FCA National Franchisee of the Year 2013
Top Franchisor 2010
BRW Fast Franchises 2009, 2010, 2011, 2012, 2013
For further information visit
appliancetaggingservices.com.au or contact Steve Wren 0401 655 655 steve@ats.com.au
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Opinion VIEWPOINT | IN MY SECTOR
What I know about franchising
ROD YOUNG Founder and chairman of DC Strategy, executive chairman and global CEO of Cartidge World
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Image: Thinkstock - Babustudio
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ranchising is the most dynamic business model to emerge in the 20th centuryâ&#x20AC;Ś and itâ&#x20AC;&#x2DC;s even more relevant today in our more globalised century. The development of the internet has given franchising a new horizon, providing the local touch-point to web-based marketing and product and service delivery. This is why Google, the most powerful internet corporation in the world, has over 70 offices across the world. While these offices are not franchised, it demonstrates that regardless of the size of your balance sheet, being close to your customers helps promote the brand, product and service and educate your current and future consumers. The on-the-ground presence of motivated owneroperators and the personalised relationships with the consumers creates trusted longer-term relationships in an increasingly more cynical business environment. Entrepreneurial franchisees also build enhanced goodwill, greater brand authority and greater enterprise value. This in turn drives revenues and profits which are the magnet that attracts better and more successful franchisees to the network and retains the best motivating them to open more units. It also empowers the franchisor to maintain the brand consistency and compliance that consumers rely on, so regrettably lacking in many franchise networks today. Good, well franchise-educated franchisees know before they sign a franchise agreement that a franchisor or brand cannot make them successful. They understand that the best a franchisor can provide is a business model, a system and a brand. It is up to the franchisee to be successful, which is why you often see very successful multi-unit franchisees in the same network with other franchise owners who fail to thrive and lose their investment. Franchising will continue to flourish so long as franchisors understand how to develop and manage a franchise network, building serious enterprise value into it. And franchisees need to understand it is their own responsibility to build a profitable franchised unit. What I have learned is that only a very small percentage of would-be franchisors will ever build successful franchise enterprises - I mean a franchise organisation which can be sold for tens of millions of dollars. Over the last 30 years there have been only a small number of Australian franchisors who have achieved this outcome or currently have franchise networks worth more than $10 million.
You need a passion for what you do, a big vision, a genuine appetite GOOD FRANCHISE NETWORKS Yet the local and global markets abound with opportunity and buyers are lining up to purchase valuable franchised networks. Why is this so? Most current franchise systems were not [many still are not] franchise ready. Too many would-be and existing franchisors think you can make money by selling franchises - selling a dream and lifestyle to unsuitable franchisees who refuse to seek advice before making one of the biggest decisions of their life. These two key factors combine to lead most franchisors and their franchisees into mediocrity at best, wasting years of their lives. Yet well-developed franchise networks can build generational wealth. Good franchises are based on businesses that are proven and profitable, had been in business for at least two years and usually had two or three profitable units under management. But prospective franchisees need to understand their success is predicated entirely upon compliance with the system, maintaining brand standards and working the business hard, especially in the early years. I also know that you need a passion for what you do, a big vision, a genuine appetite for the journey â&#x20AC;&#x201C; rocky patches included, and a social and ethical responsibility to your customers, your suppliers, your employees and importantly your franchisor. F
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Glossary KEY TERMS | HELP GUIDE
granted for trading under the franchise agreement. Most franchise terms are on a renewable three or five year term but they can vary from one year to perpetuity.
Disclosure Document: this document provides information about a franchise system, the franchisor and the franchised business. It must be supplied to a prospective franchisee, in accordance with the Franchising Code of Conduct. Due diligence: a thorough examination of the franchise business before purchase. Franchise: a business model with four criteria: a franchise agreement, a trademark or symbol, payment of a fee, and a system or marketing plan. A franchise business falls under the jurisdiction of the Franchising Code of Conduct and franchisors have certain obligations to fulfil. Franchise agreement: the business contract between the franchisor and franchisee. Franchisee: an individual who runs the franchised business using the intellectual property of the franchisor. Franchise fee: this is an up-front cost paid to the franchisor and covers the use of the brand name and operating system required to operate the business. Franchisor: grants permission to the franchisee to conduct business using its intellectual property; brand name, methods of operation and marketing. Franchise term: this is the period
Greenfield site: a brand new site.
Renewal: once a franchise term nears its end, franchisees may or may not be given a right to renew their agreement for a further term. This process is bound by the Franchising Code of Conduct and there is no automatic right of renewal.
License: the right to use intellectual property in business, such as sales rights in a territory, manufacturing technology or access to a trademark. A license is not the same as a franchise.
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.
Local area marketing: [LAM] this is marketing the franchisee is responsible for conducting in the franchise territory or designated marketing area.
Termination: the ending of the franchise contract between franchisee and franchisor, usually for breach of contract. Some franchise agreements allow the franchisor to terminate the agreement even if the franchisee has not breached the agreement.
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 franchisorâ&#x20AC;&#x2122;s systems and methods are applied.
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).
Multi-unit franchisee: a franchisee granted the rights to operate more than one franchise outlet. Not every franchise system allows for franchisees to be multiple operators.
Total investment: the total amount of money a franchisee requires to set up in business. This includes the franchise fee, working capital and any equipment purchases required.
Operations manual: the franchiseeâ&#x20AC;&#x2122;s guide to operating the franchise business. The franchisor may produce several manuals for different areas of the business, and should regularly update the information.
Turnkey franchise: a franchise package that includes all the equipment, information and systems required for a franchisee to open up the business and start trading.
Regional franchisee: similar to master franchisees, regional franchisees operate a large territory and appoints franchisees within the area.
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Working capital: the funds required by any business to pay its costs before it starts making a profit, and as ongoing cash flow to counter any dips in business activity.
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Checklist HELP GUIDE | TO DO LIST
20 things to check before you invest Before you purchase your franchise you need to tick off all the must-do items. Check the following: 1. Are you confident in the franchisor
11. What are the franchisee and franchisor obligations?
2. Have you seen a disclosure document?
12. What training is available and who pays for it?
3. Have you evaluated the financial returns?
13. Who owns the intellectual property and what is licensed to the franchisee?
4. Do you know all the expenses franchisees are required to pay?
14. What marketing will the franchisor implement?
5. Have you worked out your operating costs?
15. Who pays for the marketing?
6. Do you know the term of the agreement?
16. What is the dispute resolution process?
7. Is the business operating from fixed or mobile premises?
17. Do you know what it is like to be a franchisee?
8. Are you working within a territory? If so, is the area exclusive?
18. Can you assign the franchised business?
9. Are you restricted in your product purchase?
19. How can the franchisor or franchisee terminate the Franchise Agreement?
10. Are you required to reach a minimum performance level?
20. What restrictions are there on the franchisee and guarantor operating a similar business?
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.com.au
• Choose from over 1200 franchises showcased in one place • Research, compare & contact franchisors directly, quickly and easily • Expert advice from legal, financial and business consultants
The Official Directory of the Franchise Council of Australia FRANCHISING GROUP
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A-Z listings Searching for a particular franchise? Use this showcase of franchise systems to find out some key details about the business opportunities available, all in alphabetical order for easy referencing
ONLINE DIRECTORY WWW.FRANCHISE.NET.AU
To be part of the A-Z listings: Contact David Strong: E: david.strong@reedbusiness.com.au P: 02 8484 0905 M: 0411 366 656
Phone: +61 439 222 422 (AUS) +64 21 917 148 (NZ) Contact: Glenn Dobson Email: glenn.dobson@tadda.com.au Website: www.tadda.com.au
Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au
Start up costs from: $125,000
Start up costs from: $47,000 + GST
PROFILE: The Australian Drug Detection Agency (ADDA) is rapidly establishing itself as the largest and most dominant provider of workplace drug detection services in Australia & New Zealand, with a fast growing list of major corporate clients. With workplace drug screening becoming a necessity for most businesses for safety, legal and productivity reasons, the opportunities are endless to win contracts with Local, State and National businesses. You will also benefit from State Office support and large-scale clients that need services in your area. ADDA wants highly motivated and business oriented individuals to join the team to share in the success of this proven business model. If you are seeking a next generation business opportunity with huge potential then contact us now to find out more.
PROFILE: Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started? ATS are Australia-wide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. 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 39 franchisees grow profitable and successful businesses. No prior electrical experience is required - just a passion for safety and a commitment to growing your business. With low entry fees and minimal franchisee administration, an ATS franchise may just be the opportunity for you.
Phone: 08 9306 5588 Fax: 08 9306 5522 Contact: Lloyd Gaunt Email: lloyd@aussieoutdoor.com.au Website: www.aussieoutdoor.com.au
Phone: 03 8878 1111 Fax: 03 8878 1145 Contact: Neville Bruns Email: neville.bruns@automotivebrands.com.au Website: www.autobarn.com.au
Start up costs from: $220,000 - $240,000
Start up costs from: $350,000 - $450,000 + stock
PROFILE: Established in 2004, Aussie Outdoor has become the biggest and the best outdoor blind franchise with 14 outlets and a goal of 20 by 2015. Offering exclusive patented products to the market Aussie Outdoor franchiseeâ&#x20AC;&#x2122;s and team members pride themselves on providing quality products and services with honesty and integrity at all times. Becoming an Aussie Outdoor franchisee is enjoyable and financially rewarding. No experience is necessary as full training and ongoing support is provided. Your business will be fully systemised making it easy for you and others to operate. Aussie Outdoor is not just a franchise it is a lifestyle
PROFILE: Established in 1985, Autobarn has a network of over 100 stores Nationwide which makes it the largest independently owned automotive parts and accessories retailer in Australia. The business has an enviable track record of success and growth with some stores in the group having traded for over 20 years. The longevity of the business, combined with consistent, high quality marketing activity, means that the brand has become iconic in the Australian market and enjoys enormous consumer goodwill and recognition. Autobarn represents the retail consumer brand within the Automotive Brands Group (ABG), which also includes the trade based Autopro and Carparts groups. Combined ABG represents over 250 outlets, giving ABG considerable buying power, the ability to have ABG exclusive products, substantial management resources and significant marketing and advertising strength.
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A-Z listings Phone: 07 3373 1760 Fax: 07 3373 1770 Contact: Delena Farmer Email: admin@batteryworld.com.au Website: www.batteryworld.com.au/franchising
Phone: 0417 077 633 Contact: Michael Payne Email: michael@palmoasisventures.com Website: www.baskinrobbins.com.au Start up costs from: $190,000
Start up costs from: $250,000 + GST
PROFILE: When you step into a Baskin Robbins you feel it. Ice cream is about much more than refreshment. Some people are content to enjoy a taste now and then, but others aspire to more. They want the sense of quality and community to last and desire to share it with others. If that’s you, read on. For over 67 years Baskin Robbins has been creating irresistible treats to make you smile and feel good inside and out. We’ve perfected the combination of delicious treats and a fun atmosphere. Now, we’re offering rewarding franchise opportunities that help aspiring business owners thrive and continue to be the world’s leading chain of ice cream speciality parlours. If you love to have fun and put a smile on people’s faces, you are in touch with your “ice cream side”, Baskin Robbins may be a perfect fit for you.
PROFILE: Australia’s leading battery retailer Battery World is offering qualified individuals a unique retail opportunity with a great growth potential. Battery World stores carry batteries for everything from mobile phones and laptops to vehicles and boats. With 80 stores throughout Australia we are the largest and most comprehensive retail franchise network focused on the battery category. If you want to invest your time and money in a powerful franchise, Battery World offers a unique opportunity to top into an every-growing market. A select number of franchises are currently available throughout Australia for motivated individuals with strong communication skills and a background in customer service.
Phone: 1800 634 227 / 0418 500 721 Contact: Andrew Email: andrew@briantracytraining.com.au Website: www.briantracytraining.com.au
Phone: 1300 131 664 Fax: 02 9450 2844 Contact: Diana Wilson - Franchise Manager Email: dwilson@bebrite.com.au Website: www.bebrite.com.au
Start up costs from: $49950-$79950 + GST
Start up costs from: $10,000 + GST PROFILE: Bebrite offers an opportunity to enter into a Residential/Commercial & Carpet cleaning franchise – a combined franchise for the price of one. 18 years business experience. Bebrite guarantees 80% of your initial investment back within 80 days. Bebrite franchises suit singles, couples and corporate operators who employ teams whilst we find the work. Generous guaranteed incomes from $600-$2000 per week minimum, no royalties (flat monthly), no territory restrictions and opportunities for continued growth. Bebrite is a national organisation providing high quality service, loyal & stable customers, with 3 unique websites, continued support, sophisticated marketing and efficient business systems to assist franchisees achieve success. Many Bebrite teams have been operating for 10 years and more.
PROFILE: As a Licencee, you are welcomed to an exclusive team of business advisors based around the world. You will be well trained in the area of business development, corporate training and coaching. You are then able to grow a substantial and profitable business through purchasing programs from the Brian Tracy International suite on a wholesale basis. The key areas of focus are professional development, sales and leadership development, and these programs are provided on a fee for service or government funded basis. They are delivered primarily in fast-moving interactive workshops or in coaching sessions. Brian Tracy International is recognised as one of the world’s premier training and development companies.
Phone: +65 6222 9443 Fax: +65 6222 5773 Contact: Jason Tan Email: jasont@brotzeit.co Website: www.brotzeit.co
Phone: 07 5591 3242 Contact: Sarah Kidman Email: sarah.kidman@rfg.com.au Website: www.brumbys.com.au Start up costs from: $420,000-$455,000
Start up costs from: US$650,000 PROFILE: Brotzeit® is a typical Bavarian expression - “Brot” being German for bread and “Zeit” for time, referring to a cosy meal complemented by fresh beer. Brotzeit® is the world’s leading franchised German concept casual dining restaurant, serving authentic German cuisine and premium quality beer imported directly from Munich, in a chic and modern environment. With an expanding regional presence in Singapore, Malaysia, Vietnam, Philippines, Thailand, Hong Kong and China, the company is looking for interested area franchise partners for Australia.
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PROFILE: After almost four decades in the franchise business, Brumby’s Bakeries has become an Australian icon and a household name. Part of the publicly listed Retail Food Group (RFG), Brumby’s is known for its freshly baked goods. With an assorted array of multi-grain, wholemeal, white and specialty breads such as baguettes, cobbs and viennas, Brumby’s caters to a range of tastes and occasions. Now is the time to get involved in the exciting future growth of the Brumby’s brand. With the launch of Brumby’s new evolution store, being a part of the Brumby’s Bakery franchise has never been as exciting. The evolution store design provides new Franchisees with the opportunity to own and operate a business with a fresh, modern look and feel while still enjoying the stability of an established franchise.
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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
Phone: 1300 659 676 Fax: 1300 659 675 Contact: James Scurr Email: customerservice@cashflowit.com.au Website: www.cashflowit.com.au
Start up costs from: $150,000 - $700,000
PROFILE: Cashflow It specialises in equipment financing solutions for the franchise sector. It’s the smart way to finance the equipment you need in your business. Cashflow It can get you pre-approved for finance so that you can find the best deal on the equipment you need from any supplier in Australia. You simply agree to a minimum 12 month term and we buy the equipment you need for your business. At the end of this term you have the option to Continue Renting, Purchase Equipment, Rent To Own or Return Equipment. Apply online today in less than 10 minutes.
PROFILE: The Cheesecake Shop opened in 1991 and has developed into an Australian favourite with a massive network of almost 200 stores across Australasia. Our award winning system makes for one of the simplest businesses to operate. Our systems guide you on how many cakes you need to produce each week and how much of each ingredient to order. Our cakes are baked from easy to follow recipes. You don’t need to be a chef or a baker, its so easy! If you love to bake cakes for the kids then here is your chance to turn your passion into profit.
Phone: 08 8388 4666 Contact: Paul Wheeler Email: franchise@cocolat.com.au Website: www.cocolat.com.au/ franchise-opportunities
Phone: 0499 399 355 Contact: Bruce Miskin Email: bruce@theconcretecutter.com.au Website: www.theconcretecutter.com.au Start up costs from: $45,000 + GST + vehicle
Start up costs from: $295,500-$455,000 + working capital PROFILE: The Cocolat concept was established in 1992 and during this time has attracted a growing and loyal following to become an icon in South Australia and winning many national and local and national food awards along the way. Cocolat franchises can exist either as a café with seating or shopping centre kiosk preferably also with seating. Cocolat’s unique offering consists of award winning desserts, Cocolat’s own gelato, handmade chocolates and a range of savoury ciabatta rolls and pastries.
PROFILE: Established in Melbourne in 2001, The Concrete Cutter has nine long running franchises. We now seek to expand in Melbourne and duplicate the Melbourne success interstate. We invite enquiry from smart ‘hands on people’ in good health who are easily understood on the telephone. Most established franchisees regularly take over $2,500 p.w. The price includes equipment, sign writting, uniforms, stationery, training, and on-going support. You will need to provide a white vehicle such as a one-tonner, van or small truck. A second-hand vehicle is O.K. Please ring for information pack.
Our products are all made using only the finest quality ingredients and each product is as visually appealing as it is delicious. Cocolat products have won dozens of awards locally and nationally.
Phone: +61 459 360 867 Contact: Remo Stander Email: franchising@cravefroyo.com.au Website: www.cravefroyo.com.au/franchising
Phone: 1300 131 888 Fax: 07 3633 3399 Contact: Franchise recruitment Website: www.dominos.com.au/franchising
Start up costs from: Below $249,000
Start up costs from: $100,000
PROFILE: The Frozen Yogurt boom is well underway and CRAVE frozen yogurt is one of the fastest growing franchises of it’s kind in the world - Don’t miss this opportunity!
PROFILE: At Domino’s we see ourselves as the Pizza Experts, and focus all our energy and passion into making and delivering the hottest, freshest and tastiest pizzas.
• Complete Turn-Key Investment, saving you Time and Money • The Lowest Franchise Fee on the market (6%) • Compact, Intelligent Design that can fit anywhere. • Brilliant colour scheme and branding that people remember - What Do You Crave? • Self-Serve Business model which means lower overheads and simpler operations • Premium, Healthy, Creamy Italian Frozen Yogurt. Nobody can match Crave
As a New Franchisee, you are about to embark on a journey to become a Pizza Professional.
Established, Flagship stores now also available for the 1st time in 2014.
We are the market leaders in most neighbourhoods and we need to continue to rise to the occasion of exceeding our customers expectations. If you think you’ve got what it takes, contact us today for more details about becoming part our family.
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A-Z listings Phone: +64 3443 5133 Contact: Derek Lilly Email: del@dreamdoors.com.au Website: www.dreamdoorskitchens.com
Phone: 02 9969 2154 Fax: 02 9960 1041 Contact: Gary Blyton Email: info@extremepita.com.au Website: www.extremepita.com.au
Start up costs from: $60,000-$350,000 + GST + operating capital PROFILE: Dream Doors is different from other kitchen, bathroom and bedroom renovation companies. By simply replacing the doors, drawer fronts and benchtops we save the customers $1000’s on their renovation and there in lies the secret to our universal success. We will give you our 14 years worth of combined knowledge and run the Master Franchise/Franchise territory together with you. It really doesn’t get any better than this in our opinion. Working together is crucial to any new undertaking in the business arena. Working with the company co-founder to set up and develop your Master Franchise, Franchise Territory will be a major advantage to the growth of your business. Long term this relationship will flourish because it is absolutely in the interest of both parties to make this business work together. Our joint incomes depend on it.
Start up costs from: $250,000 - $350,000 PROFILE: So you want to be a Purveyor of the Pita? Well, you’ve come to the right place. You can rest easy knowing this is a business with staying power. It’s all about the bread! We roll it, we eat it, we earn it. And we’re successful at it. We’ve got over 225 locations throughout Canada and the U.S. with continuous strong growth. Why Extreme Pita? A lot of restaurants out there offer items that are fried within an inch of their lives. Extreme Pita has the right concept at the right time, because more and more consumers are looking for a fresh, fast, healthy alternative. Extreme Pita offers a fantastic range of healthy great tasting food for busy, active individuals and families who want to live life to the fullest.
Phone: 1300 FASTWAY Fax: 02 9264 4966 Website: fastway.com.au
Phone: 1300 FRANCHISE Fax: 03 8640 0688 Contact: Kevin Bugeja Email: kevin@franchiseselection.com.au Website: www.franchiseselection.com.au
Start up costs from: $25,000 PROFILE: Run your own rewarding business and take control of your future as a Fastway Courier Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • Guaranteed income package* • Low start up costs • No weekend work • Ongoing business support & training • Exclusive territories • Perpetual franchise agreement with no ongoing fees
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.
No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change, we’d love to hear from you. *Conditions apply
Phone: 08 8338 2557 Fax: 08 8338 4552 Contact: Mark Langford Email: marklangford@gametraders.com.au Website: www.gametraders.com.au
Contact: David Newport Email: david.newport@freshvending.com Website: www.freshvending.com Start up costs from: $500,000 USD + GST
Start up costs from: $225,000 + GST PROFILE: Fresh Healthy Vending (FHV) is the leading healthy vending franchisor in the world. They have pioneered the concept of healthy vending machines, stocked with fresh, tasty and natural snacks. As the health and fitness industry is booming and consumers are becoming increasingly health conscious, it is perfect timing for this franchise concept.
PROFILE: Gametraders Live is a retail and entertainment destination consisting of our unique retail business model combined with other activities such as Card tournaments, Warhammer and Cosplay. Gametraders Live caters for franchisees and customers who love buying selling and trading but also enjoy being involved in events and activities.
The company has over 2,300 machines installed in schools, universities, hospitals, airports, fitness facilities and many more location types.
We are extremely proud to announce our new concept franchise stores Gametraders Live.
FHV has built their franchise model around proprietary systems and business techniques that actually work. Reduce your risk by investing in a successful franchise with a proven track record.
Gametraders Live is best described as a gamers and cosplayers paradise, They are big and there will be plenty of activities and things to do. There are Sofa’s for our guests to relax and interact, snacks, coffee, drinks, activities, events, film nights and much more.
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Phone:02 028845 88450100 0100 Phone: Fax:02 028845 88450199 0199 Fax: Contact:Karen KarenPollard Pollard Contact: Email:franchise@gelatissimo.com.au franchise@gelatissimo.com.au Email: Website:www.gelatissimo.com.au www.gelatissimo.com.au Website: Start Startup upcosts costsfrom: from:$350,000 $350,000 PROFILE: PROFILE: Australia’s looking afor outstanding franchisees. Australia’sleading largest gelato franchise is presents unique concept; with over 20 years Gelatissimo, Australia’sisleading gelato franchise is expanding itspassion strong of product development, customer satisfaction and a brand that embodies style Prior food experience not necessary however system franchisees must have brand and is looking for outstanding and sophistication. Our retailing pointfranchise of difference is makingforfulldelivering flavouredquality gelato for the system and brand, leadership skills, andpartners. enthusiasm fresh in-store daily usinggelato a customer system that isfresh simple to run. has an enviable products through excellent service. Our multi award winning is made in store byGelatissimo dedicated Franchisee performance record, with an average store and turnover of $779,000* and recipes. comparative Gelato Artisans, using the finest ingredients authentic Italian family Multi award winning Gelatissimo provides full training and on-going support from store sales growth has averaged a positive 8.29%* over the last two years. dedicated operational, and development them to to Gelatissimo franchiseesmarketing have the benefit of a systemteams that isenabling simple and easy As part of its commitment Gelatissimo charges flat royalty fee produce artisan gelato freshtoinfranchisees, store using a simple proven asystem. run, supported by full training, ongoing support fromand professional operational and instead of teams, a percentage of sales, full training, ongoing support from its marketing extensive brandprovides building activities, product development and operationswith and local marketing team, brand building and local store marketing. assistance store marketing. *Sales figures based on the last 12 months turnover as at April 2012 inc GST. Increases based on comparative moving annual turnover for the last 48 months.
AT THE FOREFRONT OF THE FRANCHISING MARKET.
Phone: 08 9209 2669 Fax: 08 9209 3308 Contact: Justin Everley Email: justin@greenplanetgrass.com.au Website: www.gpgfranchise.com.au Start up costs from: $275,000 - $320,000 PROFILE: Green Planet Grass is a specialist synthetic grass company servicing residential and commercial customers throughout Australia. The company has grown its customer base to more than 4000 in Western Australia alone. Timing is now perfect to offer this well-established and proven business to people seeking a unique and growing product offer. With full training provided, a Green Planet Grass franchise is the perfect opportunity for those looking to build a business, capitalise on an established brand and be a part of servicing a rapidly increasing number of customers.
This leading consumer publication is for anyone looking to buy into the $131 million franchising industry. Each issue you’ll receive:
Phone: 07 5515 0119 Fax: 07 5500 3716 Contact: Geoff Biddle Email: mail@groutpro.com.au Website: www.groutpro.com.au
◗ Inspirational success stories ◗ Pertinent issues in franchising
Start up costs from: $29,950 + GST & vehicle PROFILE: Earn between $50 and $200 per hour and get a high return on investment in the booming Home Improvement Industry with LOW SETUP COSTS & little competition. GroutPro specialises in the after-market care of tiles and grout to homeowners and businesses. Offering a range of professional services from stain protection of new tile and grout installations to our flagship grout “colourseal” application which rejuvenates and re-colours old grout saving customers time and money without having to re-tile. Specialists use GroutPro’s own branded range of professional quality products including cleaners, sealers, tile Anti-Slip treatments and shower glass restoration and sealer coatings. This is a complete package to get you up and running in your own business fast. Call us today for more information.
◗ Practical knowledge and advice ◗ Management tips and much more…
Subscribe for just $45 and take the first step in becoming your own boss.
Call us on 1300 360 126 or visit www.franchise.net.au
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A-Z listings Phone: 1300 424 746 Fax: 03 9234 2266 Contact: Peter Fiasco Email: franchising@hairhousewarehouse.com.au Website: www.hairhousewarehouse.com.au/franchanising
Phone: 0427 208462 Contact: Steve Potter Email: franchising@indianbrothers.com.au Website: www.indianbrothers.com.au Start up costs from: $160,000
Start up costs from: $250,000 - $550,000 PROFILE: Hairhouse Warehouse is Australia’s leader in the hair and beauty industry, with over 140 stores across Australia. A belief in your ability to change your life and courage to do it is all you need. Our culture and business has developed from over 21 years of success and mastery. Hairhouse Warehouse is built on passion and creativity. • Extensive and ongoing training programs • A proven turnkey operation • A focus on world class service • Multiple revenue streams, including retail, salon, piercing and beauty services • Exclusive stockists of world leading brands with the most lucrative merchandise trading terms worldwide
PROFILE: Indian Brothers restaurants began in 2002 with a simple philosophy – to bring the authentic taste of North India to Australia. Our first restaurant became a local institution in Queensland, offering tasty meals cooked to perfection. Using the freshest ingredients, traditional spices and only genuine Tandoor ovens enabled us to offer an Indian experience like few others. Today, Indian Brothers Restaurants provide opportunities for motivated individuals to own and operate their own Indian take away food business. Our unique system has been designed from the ground up to meet the increasing demand from time poor customers who are looking for instant, value for money, fresh and tasty food.
Phone: 0418 600 919 Contact: Meredith Ham Email: sales.au@inxpress.com Website: www.inxpress.com
Phone: 131 546 Email: franchise.sales@jimsfencing.net Website: www.jimsfencing.net
Start up costs from: $49,000 +GST
Start up costs from: approx $64,000 - $66,000 inc equipment
PROFILE: InXpress provides a revolutionary concept delivering customers with express freight advantages to gain a competitive edge in the marketplace. InXpress is an authorised sales partner for the world class courier company, DHL. Domestically, InXpress partners with companies such as Toll and TNT to offer a complete suite of courier and freight solutions, providing increased value and service, saving valuable time and money. Operating in 15 countries with over 200 franchisees internationally, InXpress is now accepting applications to grow the Australian business. Benefits to franchisees include: • Low entry costs • Low risk • No inventory/warehousing
• Minimal employee base • High income potential • Ongoing training and support
PROFILE: Jim’s Fencing operates Australia wide with currently 160 plus franchise owners and sub-contractors building fences everyday. Jim’s Fencing has such a huge demand for work in fact; Jim’s Fencing is at a point in which they are actually reluctant to advertise the services as they have to many leads to fill as it is and not enough franchise owners on the ground to do the work. Can you imagine? A business that has too much work available? If you yearn to work outdoors and are handy with the tools, then Jim’s Fencing could be for you. Franchises available Australia wide.
For more information about becoming an InXpress franchisee contact us now.
Phone: (AUS) 02 8522 1408 Fax: (AUS) 02 9527 5144 Contact: Luke Manning Email: bdm@justcuts.com Website: www.justcuts.com
Phone: 1800 251 680 Fax: 02 9967 5511 Contact: John Post Email: franchise@kwikkopy.com.au Website: www.kwikkopy.com.au/franchise
Start up costs from: $160,000 to $240,000
Start up costs from: $210,000
ProFilE: Don’t just buy yourself a Job! Discover how you can easily run a “Genuine Business System”. Did You Know? Most of our Just Cuts™ Franchise Owners are not Hairdressers. Plus, the average Franchise Owner goes on to own multiple stores. Why? Because proven systems, support and training means your hairdressers become the technicians and easily run the business for you. At Just Cuts™ Franchise Owners have been free to grow to own multiple sites. Just Cuts™ do over 66,000 Style Cuts™ cuts a week! Just Cuts™ operate on a no appointment, no request system, quality Styles Cuts™ cut at an affordable price. Contact us today to find out how. Join the largest Hairdressing Franchise in the Southern Hemisphere.
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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, focusing 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 • Strong brand and ongoing marketing solutions • Regular working hours Mon-Fri • Extensive training and on-site assistance
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A-Z listings Phone: +61 2 9922 5522 / +61 433 102 005 Contact: Brian Pretorius Email: brianp@launchpadfce.com.au Website: www.launchpadfce.com.au
Phone: 1800 068 111 Contact: Aroha Leigh Email: arohaleigh@lenards.com.au Website: www.franchise.lenards.com.au
PROFILE: The Launch Pad is the only Conference planning and events specialist company to work exclusively in the Franchising sector. We know that you, the Franchisor, have a big commitment to your Franchisees and hosting Conferences and Events make an unhealthy dent into your bottom line. Allow our experienced Franchise Conferencing and Events Team to show you how to make your next event sizzle while we help you to balance these costs. Call us for a introductory and no obligation chat.
PROFILE: Lenard’s is Australia’s favourite chicken retailer with over 150 fresh ready-to-cook meals. Franchising for over 25 years, we still take up the challenge every day to deliver greater value, not just for our customers, but for our Franchise Owners. Recently introducing our industry-first Hub & Spoke franchising model, together with the innovative Easy Cuts operating system, it’s never been easier to grow your own multi-store network with Lenard’s. Today we have over 200 outlets Australia wide, in a growing market for both chicken and fresh ready-meals. Lenard’s is a business set for growth, and we’d love to discuss local opportunities with you.
Phone: 1300 737 917 / 0403 840 996 Contact: Steve Bianchini Email: steve@mondodirect.com.au Website: www.mondodirect.com.au
Phone: 02 9875 6005 Contact: National Franchising Manager Email: franchising@au.mcd.com Website: http://mcdonalds.com.au/franchiseopportunities Start up costs from: $700,000 + in equity
PROFILE: The Destination for the Best Hidden Franchise Talent. PROFILE: In a little over 40 years, McDonald’s has grown from one restaurant to over 900 restaurants across the country. From its first restaurant in 1971 through to today, the ‘golden arches’ has managed to maintain its position as one of the most popular quick service restaurants in Australia. As a McDonald’s franchisee you’re stepping into one of the world’s most successful brands and all that comes with it.
Mondo Direct is a specialist in providing executive search and headhunt services to franchise companies. We support franchise companies in achieving success through their people building robust talent teams. Our enduring relationships with the top passive talent in the APAC region, means you will gain a competitive advantage.
Think world-class systems and training, the globally acclaimed franchise model, and the kind of stability and returns that will deliver the success you’ve worked hard to enjoy.
Phone: +61 3 8540 0200 Fax: +61 3 8540 0202 Contact: John Sier Email: john.sier@mst.com.au Website: www.mst.com.au
Phone: (08) 9201 3400 Fax: (08) 9201 3444 Contact: Brad Dixon Email: info@mynfib.com.au Website: http://mynfib.com.au
PROFILE: MST Lawyers is widely recognised as one of Australia’s leading franchising law firms, advising participants in the franchising sector, Australia wide, on all aspects of franchising. We assist franchisors with their franchise strategy and structures, including drafting franchise documentation and managing franchise transactions. We also advise franchisors on Franchising Code of Conduct compliance, consumer law compliance, leasing, employment law, intellectual property and dispute resolution. MST Lawyers also act for franchisees providing advice in respect of sales and purchases of franchise businesses and advising on franchise documents and leases. Our international affiliations allow us to stay in touch with global franchising trends and assist our clients with their international expansion strategies. Our dedicated Franchise Team prides itself on providing cost effective, practical and current advice to its franchise clients.
PROFILE: National Franchise Insurance Brokers has been created to meet the Australian demand for a dedicated online provider of insurance cover for franchisees, franchisors and franchised businesses. Our service is fully automated, compliant and provides you with full documentation. Plus, we are underwritten by one of world’s longest established insurance organisations. Put simply, our service is the fastest, most affordable way to get the most appropriate level of cover you need to protect your business.
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A-Z listings Phone: 03 8851 4200 Fax: 03 8851 427 Contact: Michael Standley Email: franchise@noodlebox.com.au Website: noodlebox.com.au/franchise
Phone: 02 9822 5622 / 0423 052 456 Fax: 02 9822 5677 Contact: Kate Bird Email: franchise@packsend.com.au Website: www.packsend.com.au
Start up costs from: $250,000 - $280,000
Start up costs from: $154,450 - $166,900 + working capital (ex GST)
PROFILE: An Australian success story. Noodle Box’s goal is to be the first choice noodle-based restaurant concept in every market in which they operate.
PROFILE: PACK & SEND is an award winning Retail Service Centre operation providing convenient freight and packaging services to businesses and consumers wanting to send anything, anywhere - plus, we offer online freight solutions for pre-packed parcels!
Franchise partner relationships are paramount and are built on integrity, respect and trust. The Noodle Box Franchise Support Centre is focused on ongoing Franchise Partner profitability and success.
Utilising our proprietary freight management technology (GlobalMaster™) to perform the delivery solution, together with our expertise in packaging services, means you can offer a solution for any person or business.
With a competitive entry level investment and new restaurant design concept, the Noodle Box brand represents excellent value for money. Noodle Box is healthy, fresh and fast and made right in front of guests by friendly, welltrained team members. With a relaxed atmosphere – it doesn’t get tastier than that!
Established for 20 years with a network of over 100 Australian stores – along with international stores in New Zealand and the United Kingdom – there is no other franchise system like PACK & SEND in the world and, best of all, our franchisees receive assistance and support along the way.
Phone: 07 3456 4255 Fax: 07 3456 4299 Contact: Phil Hill Email: phil.hill@tic.com.au Website: propertyclub.com.au
Phone: 02 9930 3185 Contact: Nathan Kelk Email: au-pizzahut.franchising@yum.com Website: www.pizzahut.com.au/franchise Start up costs from: $250,000-$300,000
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.
Start up costs from: $98,000 PROFILE: The Property Club is a division of The Investors Club. Since its establishment in 1994, The Property Club has assisted in the sale of over 17,000 properties throughout Australia and New Zealand and are looking to expand further in these markets. Property Club prides itself on providing investment opportunities and deals and a one-stop-shop to access property related services for its members. The company currently has 18 Franchises and 300 Property Mentors, as well as a head office with 40 staff specialising in all areas of Property Investment.
Phone: 1300 4 REDCAT (1300 4 733 228) Fax: 03 9696 1553 Email: info@redcat.com.au Website: www.redcat.com.au
Phone: 1300 4 RED ROCK (1300 473 376) Contact: Phil Colburn Email: admin@redrocknoodlebar.com.au Website: www.redrocknoodlebar.com.au Start up costs from: $180,000
PROFILE: Red Rock Noodle Bar is one of the healthiest food franchises around in this growing fast food industry. We deliver this by offering an exciting range of Asian 97% Fat Free tastes that appeal to all. Fresh Ingredients handpicked by our customers and “wokked” up right in front of your eyes. Currently 12 stores all over Brisbane as we expand this healthy option throughout Queensland and Northern NSW.
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PROFILE: RedCat provides end-to-end, point of sale, accounting and business management solutions that gives users total control of their business. RedCat supplies integrated software and hardware solutions that can manage sales, staff, stock, payroll, through to accounts, GST, customer loyalty, and web based multi-site reporting to provide a complete business management system. Franchised groups can benefit from their flexible centralised management capability that permits multiple levels of control and reporting. RedCat are also able to provide online ordering systems. Customers order and pay through a uniquely branded app, the order is then automatically integrated into the point of sale system.
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Phone: 1300 810 233 Contact: Franchising development team Email: snapfranchising@snap.com.au Website: www.snap.com.au
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Start up costs from: $150,000
PROFILE: Snap is the most successful print, design and website franchise network for medium-sized enterprises (SMEs) in the Southern Hemisphere. Founded in 1899 and still 100% Australian owned, we now have 145 Centres in Australia and a further 30 in New Zealand, Ireland and China. ›
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First to Australia in digital print, our ability to evolve is key to snap-proofing the future of our Franchise Owners.
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Today, clients can not only rely on Snap for top quality print, but the full range of design, websites and all other online marketing tools as well – all developed by a company with a 100 year long history of achievement. So, are you ready to Snap-Proof your future?
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TO FOLLOW Phone: 1800 762 766 Fax: 02 9837 9199 Contact: Les Coppin Email: les.coppin@snapon.com Website: www.snapontools.com.au
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Start up costs from: $50,000 PROFILE: Snap-on Tools Australia & NZ is a mobile franchise operation putting high quality tools and equipment into the hands of mechanics, engineers and technicians across the country. Snap-on Tools is a wholly owned subsidiary of Snap-on Inc., a developer and manufacturer of innovative and technologically advanced tools with an established network of solid franchise operations across the globe.
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After more than 20 years in the Australian market, Snap-on continues to solidly perform, providing robust financial results for its network of over 160 franchisees. Extensive training and ongoing support is provided – no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.
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Phone: 0427 401 169 Fax: 03 9888 6327 Contact: Alistair Browne Email: alistairb@snooze.com.au Website: www.snooze.com.au Start up costs from: $450,000
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PROFILE: As one of Australia’s longest-running, most successful and innovative franchised business, Snooze’s experience in the bedding industry is second to none. With over 70 stores nationwide and a commitment to continued growth and development, Snooze offers great return on investment Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including: • Business management support • A national marketing program • IT services
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• Vendor finance assistance • NAB & ANZ accreditation • Sales and product training
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Phone: 08 8353 5888 Contact: George Karamalis Email: info@st-louis.com.au Website: www.st-louis.com.au
Phone: NSW/ACT - 02 9250 5000 VIC/TAS - 03 9287 9555 WA/SA - 08 9430 2877 QLD/NT - 07 3877 7333 Email: franchdev@caltex.com.au Website: www.caltex.com.au
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Start up costs from: $350,000
PROFILE: St. Louis franchisees will find comfort in the support and guidance they receive once they become part of the St. Louis family and take the first steps into owning their own business. With full training and on-going assistance franchisees will learn the art to producing the highest quality, premium ice cream and dessert creations, and much more in store, using a simple, user-friendly model. We are looking for franchisees who are passionate about dessert, have a love for all things sweet and decadent, and who believe in never compromising on quality. Change your lifestyle. Invest in something that warms you from the inside out.
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’.
Phone: Toll Free Australia - 1800 630 355 New Zealand - 0800 444 618 Fax: 07 3852 4081 Contact: Franchise Administrator Email: ssa@subway.com Website: www.subway.com
Phone: 02 9898 8608 Contact: Chris Fitzmaurice Email: enquiries@swimart.com.au Website: www.swimartfranchise.com.au Start up costs from: Retail - $175,000-$250,000 Mobile - $85,000-$90,000
Start up costs from: Varies by site PROFILE: Subway® is the world’s largest restaurant chain with more locations than any other chain. We offer business owners simple operations, ongoing field support and a defined marketing structure, along with providing customers with a variety of freshly made menu options.
PROFILE: Swimart operates in the pool and spa industry providing owners with all their pool and spa needs from filtration equipment and chemicals to pool cleaners, accessories, spare parts and leisure products. We also provide extensive, in home services, such as pool cleaning and maintenance.
For over 47 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.
Established in 1983, Swimart has over 70 retail stores and more than 250 service vehicles across both Australia & New Zealand and is a fully owned subsidiary of Waterco Ltd, a publicly listed Australian company with operations in over eight countries around the globe. We offer both retail and mobile franchises with set up costs starting from as little as $85,000. If you’re looking for either a retail or service business that delivers solid revenues with high margins and low fees, just ask Swimart!
Join the winning team with the #1 Franchise! Register your interest today.
Phone: 0414 217 019 Contact: Rob Watkin Email: sales@topsnap.com Website: www.topsnap.com
Phone: 03 9008 5945 Fax: 03 9876 6612 Contact: Grant Email: grant@thefranchiseshop.com.au Website: thefranchiseshop.com.au
PROFILE: The Franchise Shop is the leading franchise consultancy offering both franchise development & recruitment services to the franchising industry throughout Australia and New Zealand. With more than 30 years experience 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, comprehensive and accurate assessment. Looking to buy a franchise? We offer an advice service and range of documents which are designed to help you make an informed decision.
136| FRANCHISING MAR/APR 2014
Start up costs from: $39,950 + GST PROFILE: Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you! We are currently looking for positive, enthusiastic, customer-focused individuals to build their own professional photography business, with the support of an established franchise system behind them. 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 professional property photography and marketing tools. In recognition of this outstanding growth, Top Snap was recognised as one of Australia’s top 50 fastest growing SMEs in both the 2012 and 2011 SmartCompany awards.
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A-Z listings Phone: 1300 139 913 Fax: 1300 133 338 Contact: Sales Support Email: info@trusonic.com.au Website: www.trusonic.com.au
Phone: 03 9413 1400 / 0429 811 811 Fax: 03 9413 1401 Contact: Adrian Gallace Email: adrian.gallace@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 that has become one of the largest independent fuel retailers with over 320 convenience stores throughout Australia. United Petroleum continues to invest heavily in its stores and systems which has earned the trust of consumers and respect of major competitors. United franchisees enjoy ongoing support, generous Fuel Commissions, merchandising support, a national promotional program, five week induction program and on-going training.
To get Trusonic music working for you, contact them today.
United is a proud member of the Franchise Council of Australia (FCA) and was awarded Canstar winner for 3 years in a row – Most Satisfied Customers (Service Stations).
Phone: 03 9612 7297 Fax: 03 9629 4035 Contact: Robert Toth Email: robert.toth@wisemah.com.au Website: www.wisewouldmahony.com.au
Phone: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au Start up costs from: $25,000
PROFILE: 30 Years of Specialised Franchise Industry Knowledge
PROFILE: V.I.P. was the first company to start franchising in home services in 1979. Today V.I.P. has over 1100 franchisees across Australia and New Zealand. V.I.P. has franchise opportunities available in: • Garden Maintenance and Lawn Mowing • Home Cleaning • Commercial Cleaning V.I.P. offer franchisees comprehensive training, a solid support system, exclusive territories and an established customer base along with the chance to be their own boss and choose the hours they want to work. In 2009 & 2010 V.I.P. was declared the Best Franchise System in Australia under $50,000 by the Financial Review Smart Investor magazine.
Phone: 0414 745 155 Contact: Paul Crabtree Email: paul@xpressodelight.com.au Website: www.xpressodelight.com.au Start up costs from: $64,900 + GST
Member Franchise Council of Australia (FCA), International Franchise Lawyers Association (IFLA), Franchise Association of New Zealand & US Commercial Services. FIXED COST FEES to Franchisors and Franchisees based on scope of works. No hourly rate surprises! Services provided: • Legal and consulting advice to Franchisors & Franchisees. • Code compliance requirements. • Dispute resolution – mediation – strategies and solutions
• Sale/Purchase of Franchise Systems • Master Franchising • International Franchising • Business Law Specialists
Call or email for a complementary brochure for Franchisors and Franchisees.
A-Z Listings Phone: x Fax: x Contact: x Email: x Website: x
Start up costs from: $
PROFILE: Invest in an Xpresso Delight franchise and seize the opportunity to profit from one of the fastest growing markets on the planet. As the number of savvy, educated coffee drinkers has boomed, the market has exploded! This pent up demand for gourmet coffee in the workplace is very poorly met. Each day, thousands of workers trek to the nearest café to pay as much as $4.00 for their morning and afternoon coffees. This is the premise of Xpresso Delight - transplanting the cafe into the heart of the workplace at a fraction of the price that people pay normally.
PROFILE: Listing Profile
For A-Z listings enquiries contact: National Sales and Marketing Manager David Strong on 02 8484 0905 david.strong@cirrusmedia.com.au
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Advertisers index INCORPORATING FCA NEWS
HELP GUIDE | COMPANY LIST
* indicates FCA member FRANCHISE COUNCIL OF AUSTRALIA
1800 On Hold
55*
Appliance Tagging Services
121*
Aussie Outdoor
98
Australian Drug Detection Agency
140
Autobarn
103*
Gametraders
99*
Gelatissimo
21*
Green Planet Grass
82
Groutpro
25*
Hairhouse Warehouse
47
Baskin Robbins
15*
Indian Brothers
44
Baybridge Lawyers
69*
InXpress
29
Brian Tracy
37*
Jim’s Fencing
119*
Brotzeit
11*
Just Cuts
106*
Business Plaza
112
Kwik Copy
Caltex
4*
Cashflow It
33*
Cirrus Media
124,126,139*
66*
Launch Pad
31
Lenard’s
93*
Mason Sier Turnbull
Redcat
105*
Snap Printing
59
Snap On Tools
9*
Snooze
95*
Specialsed Events
123*
St Louis
17
Subway
39*
Swimart
87*
The Cheesecake Shop
53*
The Concrete Cutter
101
12 The Franchise Shop
Cocolat
49
McDonald’s
Crave Australia
72
Mondo Direct
Dominos
23
National Franchise Insurance Brokers
85*
40,41*
60,61 35
Dream Doors
113
Noodle Box
67*
Extreme Pita
26*
Pack & Send
2*
139*
Pizza Capers
76,77
The Property Club Top Snap United Petroleum VIP Australia
Fastway Couriers Franchise Selection
88, 89*
Fresh Healthy Vending
Fr a nc hi s e _ 1 . 3 H
115
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1
Pizza Hut
13
Red Rock Noodle Bar
19*
92 27* 109* 8*
Wisewould Mahony
65*
Xpresso Delight
57*
2 0 1 4 - 0 3 - 0 5 T1 6 : 1 2 : 1 8 + 1 1 : 0 0
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Franchise.net.au is the communication hub for the franchising industry High quality editorial, advice and news. Updated daily. • Currently garnering over 50,000 page impressions, 27,000 visits and 22,500 unique visitors per month*
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Run your own rewarding business Fastway Couriers has a number of exciting franchise opportunities available • Guaranteed income package*
• Exclusive territories
• Low start up costs
• No weekend work
• Perpetual Franchise Agreement
• Ongoing business support & training
• Recognised brand
• Easy to operate - no experience required
• Award winning system for over 30 years
• Enjoy the freedom of working for yourself
To find out more contact us: p.
1300 FASTWAY
w.
fastway.com.au
*For a defined period. Conditions apply. Fastway Couriers (Australia) ABN 38 057 389 769. Fastway Couriers is a franchised courier network and its businesses are independently owned.
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makesure sureyou youcontrol controlaaterritory territory make The Australian Drug Detection Agency wants highly motivated and independent people to join Thethe Australian wants highly motivated and independent people to join team, asDrug eitherDetection Master orAgency Regional Franchisees. the team, as either Master or Regional Franchisees. The ADDA is a proven business model that will provide excellent financial rewards for those Thewho ADDA a proventobusiness model willcriteria. provide excellent financial rewards for those areisprepared work hard andthat fit the who are prepared to work hard and fit the criteria. This is a huge opportunity for business-orientated individuals who have served, or are currently Thisinislaw a huge opportunity business-orientated individuals who have or are currently enforcement, the for emergency services or the armed forces, to getserved, in at the ground level in law enforcement, the emergency services or the armed forces, to get in at the ground level and grow their own enterprise. and grow their own enterprise. Are you ready to join our experienced group and secure a lucrative future? Are you ready to join our experienced group and secure a lucrative future? Our guess is Yes, you are! Our guess is Yes, you are! s Franchises selling fast s Franchises selling fast s Masters sold in QLD/NSW/VIC s Masters sold in QLD/NSW/VIC
Email: kirk.hardy@tadda.com.au Email: kirk.hardy@tadda.com.au Website: www.tadda.com.au Website: www.tadda.com.au