FR1605_001
- 1
2016-04-18T21:26:53+10:00
FRANCHISING
Franchising YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE | WWW.FRANCHISEBUSINESS.COM.AU MAY/JUN 2016 VOL.29/NO.3
Quick bites WHAT'S NEW IN FAST FOOD
MAY/JUN 2016 AUS $6.95|NZ $7.95
PR I N T P O S T A PPR OV E D 10 0 0 0 8121
WWW.FRANCHISEBUSINESS.COM.AU
WHAT YOU NEED TO KNOW ABOUT THE OPERATIONS MANUAL
SPOTTING A BARGAIN: CHOOSE A BUDGET FRANCHISE P.64
DO YOU NEED TO READ THE FRANCHISE AGREEMENT? P.104
BEST MATES FOREVER? BUYING A BUSINESS WITH A FRIEND P.26
FR1605_000_FRANCH
-
1
2016-04-05T12:01:44+10:00
FR1605_003
- 3
2016-04-18T21:46:38+10:00
CONTENTS
COV E R STORY COVER IMAGE: NOODLEBOX
64
12 REPORT
Why franchisees skimp on their research
18 CHOCOLATE REPORT
Why chocolate is more than an indulgence, it’s an investment opportunity
22
HOW TO GET FINANCE TO BUY A FRANCHISE Take steps to be finance-ready so you can access funding for your franchise purchase
24 BUYING INTO A FRANCHISE BUSINESS
Here is what should you be looking for in a good franchise business
26 BEST MATES FOREVER?
Your best mate is your confidante but should you buy a franchise with them?
40 OMNI CHANNEL MARKETING AND YOUR FRANCHISE CHOICE
How to handle online and omni channel marketing
44
HOW CAN IT HELP YOU TO BE A MORE EFFICIENT FRANCHISEE? IT is one of these that can really make a difference to the business
50 DON’T FORGET THE LAWYER!
It is always beneficial to see a lawyer early in the process of franchising
54 WHAT HAPPENS IF MY
THE CHANGING FACE OF FAST FOOD
FRANCHISOR GOES BROKE?
Jane Garber-Roszenweig on what to do if your franchisor becomes insolvent
56 MINING FOR FRANCHISES AT
REGULARS
5 6 104 106 109 110 111 112 113 122
THE PERTH EXPO
The Perth Franchising and Business Opportunities Expo is a gold mine of opportunities.
WELCOME INSIGHTS LEGALESE SKETCH LEADERSHIP
30 10 SKILLS YOUR FRANCHISOR 64 SPOTTING A BARGAIN: CAN TEACH YOU
BUDGET FRANCHISES
When you buy a franchise the training on offer can help set you up for success
We take a look at why budget franchises are the go-to
34
87 ON THE FLIGHT PATH
GLOSSARY
MARKETING FUNDS: THE BASICS
CHECKLIST
Dr. Michael Schaper looks at the benefits and risks of marketing funds
DIRECTORY LISTINGS ADVERTISERS INDEX
36 WHAT YOU NEED TO KNOW: OPERATIONS MANUAL
Jack Newton and Raynia Theodore unveil what you need to know
MAY/JUN 2016 | 3 | WWW.FRANCHISEBUSINESS.COM.AU
We take a look at newbie franchise concept National Drones
92 FAMOUS FISH JUMPS INTO THE CASUAL DINING SCENE
Steve Costi’s Famous Fish brand has jumped into the spotlight as a seafood casual dining space
FR1115_000_POS
-
1
2015-11-04T14:04:05+11:00
Dream to start your own Business? The Business Behind Your Business Graphic Design & Web Services Printing & Copying Services Packing & Shipping Services Mailbox Rental Services Business Support Services Marketing Solutions Services
Create I Print I Ship I Support I Grow
• • • • • • • • • •
PostNet Area Representative (Western Australia) Tjandra Setiawan: 0405 458 188 tjandras@postnet.com.au
Established and Proven Franchise System Over 750 Franchises Worldwide In Industry Since 1983 Franchising Since 1992 Multi Products/Services Franchise Five Days Week Business - No Weekend Work No Experience Necessary Minimal Employee Base Low Inventory Business World Class Comprehensive Training & Ongoing Support
PostNet Area Representative (Queensland) Gary Khoo: 0449 997 893 garyk@postnet.com.au
PostNet Australia Pty. Ltd. Robin Lau: 0490 338 427 / 0415 189 593 robinlau@postnet.com.au
www.postnet.com.au / www.postnetfranchise.com.au
FR1605_005
- 5
2016-04-18T21:07:37+10:00
( WELCOME )
W
hen is the best time to buy a business? Everyone looking to invest in a franchise is at a different stage of their life, career, family responsibilities and personal development. What needs to be common to all franchise buyers is access to finance, a preparedness to commit to hard work, an understanding of the business concept and to be in receipt of all the facts.
Now that last point can be the hardest. Franchisors don’t always reveal as much information as they might, they may put a spin on the data released, they may gloss over the realities, in some unfortunate instances the information shared can be misleading. And that’s why doing comprehensive research is so crucial. As a recent study reveals, current franchisees have not pursued their due diligence (which is simply research in to the business, its directors and the franchise offer) as well as they might. The majority of franchisees surveyed believe now that they should have invested more time and effort – and, the report suggests, money – into ensuring the franchise business they choose is a viable, reliable and appropriate option. You can read more of the findings on the need to avoid skimping on your research on page 12. There are other elements to take into account to find out if you’re ready to buy a franchise, which our regular columnist Karli Furmage discusses on page 108, while Dr Michael Schaper, deputy chair of the Australian Competition and Consumer Commission, outlines what you need to consider about marketing funds (page 34).
EDITOR Sarah Stowe P: 02 8484 0900 sarah.stowe@cirrusmedia.com.au JOURNALIST Noha Shaheed P: 02 8484 0740 noha.shaheed@cirrusmedia.com.au ART DIRECTOR Julia Gee P: 02 8484 0708 julia.gee@cirrusmedia.com.au GRAPHIC DESIGN Ian Sudjatmiko P: 02 8484 0843 ian.sudjatmiko@cirrusmedia.com.au
SARAH STOWE EDITOR
When I chat with franchisees at the regular panel sessions at the Franchising & Business Opportunities Expo events around the country, access to marketing expertise is commonly cited as a benefit of investing in a franchise. Marketing needs to be relevant and go ahead, and that’s why omni-channel retailing is an important element of today’s business that your franchisor needs to be embracing. Turn to page 40 to read lawyer Corinne Attard’s assessment. As with every issue of Franchising, there are a host of brands and new businesses featured alongside our pages of advice. Franchising magazine will be heading to Perth to participate in the May expo – on page 56 you can read about some of the businesses exhibiting and their plans for expansion. Why not sign up to our regular newsletter and get the latest information delivered to your online inbox? Visit our comprehensive website www.franchisebusiness.com.au and take a look at the myriad businesses for sale in our listings, the official online directory of the Franchise Council of Australia. You might find just the right franchise for you!
NATIONAL SALES AND MARKETING MANAGER David Strong P: 02 8484 0905 david.strong@cirrusmedia.com.au BUSINESS DEVELOPMENT MANAGER Jesse Hopwood P: 02 8007 3113 jesse.hopwood@cirrusmedia.com.au
For subscription enquiries call customer service: 1300 360 126 ISSN: 1321-408X
CLIENT SUCCESS MANAGER Kim Church P: 02 8484 0963 kim.church@cirrusmedia.com.au
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
HEAD OF CLIENT SUCCESS Sheree Bryant P: 02 8484 0973 sheree.bryant@cirrusmedia.com.au
Average Net Distribution Period ending September ’15 – 5,940
MAY/JUN 2016 | 5 | WWW.FRANCHISEBUSINESS.COM.AU
Why not sign up to our regular newsletter and get the latest information
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. OPINIONS EXPRESSED IN FRANCHISING ARE NOT NECESSARILY THOSE OF FRANCHISING OR CIRRUS MEDIA. © COPYRIGHT CIRRUS MEDIA, 2016
FR1605_06
-
6
2016-04-18T19:03:57+10:00
INSIGHTS DEVELOPING STORY 7-ELEVEN REPORT: THE FRANCHISOR WAS TOO LATE TAKING ACTION ON WAGE RORTS The Fair Work Ombudsman’s report into the 7-Eleven network has been released. The troubled convenience chain 7-Eleven should have acted faster to deal with franchisees falsifying payroll records. That’s just one of the findings by the Fair Work Ombudsman in a report on the enquiry into the franchise business. Natalie James, Fair Work Ombudsman, has been quite clear that 7-Eleven did not take action, or sufficient action, soon enough. The beleaguered convenience chain has made significant steps to rectify the system with changes to both the franchise model and the payroll system and these have been welcomed by the Fair Work Ombudsman. The chairman of 7-Eleven, Michael Smith, says the brand has accepted the Report, but he also suggested the Franchising Code was not well placed to deter noncompliance. 7-Eleven chairman Michael Smith said he and the CEO Angus McKay are already working on a Compliance Partnership with the Ombudsman.
WEBSITE Looking for the right fit for a franchise? Our new website makes searching for information easy. With over 35 franchise categories, finding the right brand is a mouse click away. The “Franchises for Sale” tab will let you search current listings by brand, refine by category, location, and initial investment . After some news articles? You can easily source latest and archived news stories, and refine your search by business, legal, or financial advice. To check out all the franchise buyer tools and get access to thousands of articles visit: w w w. f r a n c h i s e b u s i n e s s . com.au
New CEO for CouriersPlease to consolidate eCommerce service Parcel service franchise CouriersPlease has a new chief executive. Mark McGinley took up the role on 1 April 2016. McGinley said “I am excited about the prospect of leading CouriersPlease on its next stage of growth as the company focuses on consolidating its position as an eCommerce leader. “As CEO, I want to continue to foster a spirit of continuing innovation. We will build on the recent launch of our new international products, domestic air express and same-day metro services.” The specialised metropolitan parcel delivery company was founded in 1983 and has a reputation for metro and domestic express services. “We have now further evolved our services to enable us to capitalise on the rapidly growing eCommerce market,” said McGinley, who joined CouriersPlease in 2003. His roles include national sales and marketing manager and most recently, national commercial manager. CouriersPlease is a fully owned subsid-
iary of Singapore Post and is part of an end-to-end, global eCommerce logistics ecosystem that is emerging to serve the growing eCommerce, retail and logistics business in Australia. In June 2015, Singapore Post invested in Hubbed, a one-stop eCommerce aggregator that has built a network of over 600 newsagents to provide a parcel delivery service in every major city across Australia. McGinley said “With support of our parent company, Singapore Post, we are well positioned to take advantage of the growing eCommerce logistics space. We have already launched 10 smart lockers called POPStations in this market and plan to roll out another 50 in the coming year. “These products, along with our newsagent network partner Hubbed, mean online shoppers can choose between direct door-to-door delivery or pick up from a network of over 600 newsagents and 60POPStations.” CouriersPlease continues to expand its regional footprint and recently began operating in Darwin, Coffs Harbour, Perth, Albury and Cairns.
MAY/JUN 2016 | 6 | WWW.FRANCHISEBUSINESS.COM.AU
MARK MCGINLEY
Advertisement.pdf
1
16/03/2016
FR1605_000_CASH
-
2:48 pm
1
2016-04-12T14:41:48+10:00
C
M
Y
CM
MY
CY
CMY
K
Pre-approved finance and negotiated rates across our rental solutions, leasing solutions and business loans are just some of the benefits of becoming accredited with Cashflow It.
FR1605_08
-
6
2016-04-18T19:03:57+10:00
INSIGHTS FRANCHISE DEVELOPMENT HOW TWO YOUNG GUNS ARE HELPING TO GROW THE JIM’S BRAND Andrew Parke and Brett Blair are responsible for more than 250 franchised businesses between them and feel that the best is yet to come. Brett Blair has been growing the Jim’s Mobile Pool Shop division for seven years and now has 89 franchised businesses Australia wide and Andrew Parke has 165 after 12 years at the helm of Jim’s Antennas. Both firmly believe in the franchising concept and the benefits that buying an established franchised brand brings. FRANCHISEE SUPPORT ROLES ADDED, OPERATIONAL ROLES LOST AS RETAIL FOOD GROUP REVAMPS Multi-brand food franchisor Retail Food Group has launched a new division to focus on driving store sales and mentoring franchisees. RFG has brands including Brumby’s, Crust Gourmet Pizza, Michel’s Patisserie and Gloria Jean’s Coffees in its portfolio. The new structure has created up to 60 new sales and support positions at the company. As a consequence, 68 operational roles no longer exist and the team members concerned may be redeployed in the business or take a redundancy package. A Franchisee Care Centre has also been launched to streamline franchisee support, field operations and compliance support. HUNGRY JACK’S STOPS HORMONE BEEF No more hormone beef. That’s the message from Hungry Jack’s, which has become the first major fast food chain in Australia to ditch added hormones in its beef. The ban took effect mid February. According to Food&Beverage, the franchised chain’s chief marketing officer Scott Baird said customer reaction had been positive. The chain has also committed to move away from cage eggs by the close of 2017.
The Coffee Club to expand in NSW, Victoria and WA The Coffee Club has a big appetite for expansion nationally and overseas, with some exciting café models available.
café sector in Australia,” said White.
Tony White, general manager at The Coffee Club, said the brand has “aggressive plans to expand both domestically and internationally”.
✱ Café Bar Restaurants that have a dine-in service model serving alcohol ✱ Café models referred to as Club which is a counter service table delivery model ✱ Kiosk model which is a counter service counter delivery model via kiosks ✱ Container grab-and-go models ✱ A drive-through model
“Leveraging off our strong home base of Queensland, The Coffee Club has targeted expansion across all other Australian states with a focus on identifying high quality sites and franchise partners in New South Wales, Victoria and Western Australia,” he said.
Franchise models include:
With more than 400 franchises across Australia, New Zealand, Thailand, Malaysia, Indonesia and Maldives, The Coffee Club boasts a range of store models.
The Coffee Club currently has 20 percent of its store network in Café Bar Restaurant formats, with the bulk of remaining stores being club stores and kiosks. The company has launched its inaugural drive-through store in Brisbane with the intention of opening more across the country.
The brand currently offers franchisees a range of store formats. “The Coffee Club has also developed a variety of new formats to exploit new site opportunities that will ensure that we maintain our market leadership in the
“The variety of store formats will enable The Coffee Club to leverage site opportunities that will see it rapidly expand its brand footprint across the eastern seaboard and in WA,” said White.
MAY/JUN 2016 | 8 | WWW.FRANCHISEBUSINESS.COM.AU
FR0116_015_OPT
-
1
2015-12-15T07:53:18+11:00
++o t t n a __w
spice up yOur career? become an OPORTO franchisee! Serving delicious mouth-watering grilled Portuguese chicken and burgers since 1986,Oporto is an Australian owned business with a network over 140 great locations within Australia and New Zealand. With an average of 15 new stores opening every year, Oporto are
looking for people who are passionate about serving amazing food, providing exceptional service and are hungry for success! Does this sound like you? Yes? Then we want to hear from you. Apply now to be a part of the amazing, progressive and dynamic Oporto team.
oporto.com.au/franchising
Bangers & Tash Pty Ltd. studio@bangersandtash.com.au
Contact: Client:
Jo Dickison Oporto
VERSION
Specials
Trim Size: 205mm (w) X 275mm (h) Visual Area: –
FR1605_010
- 6
2016-04-18T19:03:57+10:00
INSIGHTS EXPANSION MCDONALD’S FRANCHISE UPSIZE PLANS Make that a large franchise network: McDonald’s Corp is expanding across Asia with plans for 95 percent of stores becoming franchisee owned. The fast food chain plans to turn over more companyowned restaurants to local franchisees. McDonald’s said on Thursday it is looking for partners to help fund that expansion. The company said it also will give local managers more decision-making authority to respond to local markets. McDonald’s considers China, South Korea and Hong Kong areas of expansion and franchising potential.
US FAST FOOD GIANT JERSEY MIKE’S SUBS HEADING TO AUSTRALIA US fast food franchise Jersey Mike’s Subs opened up shop in the Gold Coast in March, but unlike many other American food chains landing in Australia, Mike’s Subs markets itself as a ‘healthier’ alternative. Offering a major point of difference through freshly made subs, wraps, and salads with premium meats, cheeses and bread baked in store, the fi rst Aussie franchise is located in Mermaid Waters on the Gold Coast. There are plans for another in Benowa Village, followed by a third in Browns Plains, Brisbane next month, and hopes to expand across Australia.
WE'RE ON YOUTUBE! Have you seen our recent advice videos on Youtube? We’ve made it even easier for you to access tips for franchisee success, industry specific advice, guidelines for due diligence, fi nding advisors, fi nance, spotting a dud franchise, and more.
Redspot Car Rentals expanding nationally, looking for franchise buyers Redspot Car Rentals is to recruit seven to eight franchisees annually as part of its five year growth plan across the country, with a focus on outer suburbs of capital cities and major regional areas. Last year, Redspot become the master franchisee in Australia and New Zealand for the Enterprise, Alamo and National Car Rental brands, the world’s largest car rental group operating over 1.7 million vehicles across 9,000 locations worldwide. Since then, aggressive expansion plans have been laid out. “We have a very extensive expansion plan for Australia in 2016,” said Stuart Ratcliffe, network development manager. The plans cover corporately owned businesses (that is, non-franchised outlets already established in airport locations) and seeks to grow the franchisee network. If there are areas where an airport branch
does not exist, potential franchises can purchase that territory and its surrounds. “We believe there is a very good opportunity for franchises to be opened in the outer suburbs of capital cities,” explained Ratcliffe. These suburbs could include the northern beaches in New South Wales, and Ipswich in Queensland for example. In addition, Redspot is targeting major regional areas aligned with airports with inbound passenger numbers over 100,000, such as Wagga Wagga or Pilbara for instance. The initial investment cost of a franchise varies, but can approximately cost $100,000 depending on the location and market. These costs are tailored to the specific territory. The franchise model allows franchise owners a set territory, unless a corporate owned
MAY/JUN 2016 | 10 | WWW.FRANCHISEBUSINESS.COM.AU
airport branch already exists. Unlike other car rental franchises which are limited to their own brand, the franchise inclusions and benefits of Redspot, Enterprise, Alamo, and National Car Rentals are standard. International marketing, operational support and a launch package are specifically tailored for the needs of specific territories. “Our model allows franchisees to access all four brands,” said Ratcliffe. “You as the franchisee will benefit from the brand to target specific markets.” Ideal franchisees in Ratcliffe’s view live and breathe the Redspot mission statement by providing excellent customer service and value for money. As the face of the brand in their territory, he believes successful franchisees put their customers and employees first and are involved in the business.
FR0116_000_CHE
-
1
2015-11-20T09:54:27+11:00
Want to make a clean break? Build your future with Chem-Dry Chem-Dry is the world’s largest carpet cleaning franchise, and has been helping Australian’s realise their dream of business ownership since 1986.
Franchises available in all capital cities & regional centres
Our unique, hot-carbonated water extraction method, combined with best in-class products and services, and unparalleled training and support, make it impossible to find a better cleaning franchise opportunity. No experience is necessary, as Chem-Dry provide comprehensive training on all aspects of the business. Our on-going marketing and operational support will ensure that you are able to enjoy the flexibility and lifestyle benefits that owning your own successful business can provide.
1800 243 637 chemdry.com.au
If you’re ready to make a clean break with your own Chem-Dry franchise, simply fill out the information form on our website, or call our franchise business info line on 1800 243 637.
FR1605_0112
-
12
2016-04-18T22:01:40+10:00
Franchisees
SKIMPon RESEARCH: REPORT
I
f you’re looking to buy a business but you don’t know what due diligence is, then you’re not alone. In fact fewer than 20 percent of franchisees and independent small business owners really understood the term ‘due diligence’ before they invested in their business.
This statistic has emerged from an online survey of 610 existing and former franchisees and independent small business owners.
Most importantly, it reveals franchisees have neglected to seek independent expert advice from accountants and lawyers when conducting their research or due diligence.
For anyone about to buy a franchise it’s important to fully research the opportunity and identify the commercial and legal risks – that’s what the due diligence process is all about, and it can be easily done by any potential franchisee.
The report is the second phase of a 12 month joint research project by the AsiaPacific Centre for Franchising Excellence at Griffith University and the University of New South Wales.
But this study reveals franchisees are skimping on their research, and later regretting their casual approach.
According to the authors, “many business owners were unfamiliar with the term ‘due diligence’ or with how to conduct effective due diligence”. MAY/JUN 2016 | 12 | WWW.FRANCHISEBUSINESS.COM.AU
In fact just 13 percent of current franchisees indicated they had a clear understanding, while 11 percent had never heard the term due diligence. The report also found that, with a few exceptions, research on business opportunities conducted by franchise buyers was “relatively unsophisticated”. However those franchise buyers who are undertaking due diligence are investing more on the cost than are independent small business owners.
SO WHAT ADVICE ARE FRANCHISE BUYERS SEEKING? Most commonly current franchisees seek legal and financial advice (34 percent) and consult friends and family (31 percent) before purchasing a franchise.
FR1605_13
-
12
2016-04-18T17:09:55+10:00
50%
58%
overlooked relevant information or advice
WILL YOU TAKE
SHORTCUTS IN YOUR RESEARCH?
The following highlights are figures from current franchisee responses, taken from the Griffith University report, The effectiveness of undertaking due diligence prior to starting up or purchasing a small business or franchise, January 2016.
believe they should have done more research
70%
felt very capable of operating a franchise
61%
57%
were confident in the brand's reputation
13% 42%
WHO UNDERSTANDS DUE DILIGENCE?
11% 34%
13% understood due diligence 11% had never heard of due diligence 34% knew the term but not what it meant 42% had some understanding
believed information was available but too expensive to keep buying more
54%
DIDN ’T INFOR GET THE R ELEVA MATIO NT TH E Y NEED N WHEN E D IT 56% BELIE VE INFOR IMPORTA NT M WAS W ATION ITHHE LD 50% BELIE VE IN F OR WAS M ISLEA MATION DING
RESEARCH ACTIVITIES BEFORE A FRANCHISE PURCHASE DESKTOP RESEARCH SPOKE TO OTHER FRANCHISEES OBSERVED THE BUSINESS CONSULTED ACCOUNTANT, LAWYER OR FINANICAL ADVISOR VISITED OTHER FRANCHISEES CONSULTED FAMILY OR FRIEND SPOKE TO THE BUSINESS OWNER SPOKE TO EMPLOYEES IN THE BUSINESS CONDUCTED MARKET RESEARCH POSTED QUESTIONS ON A BLOG SPOKE TO CUSTOMERS
COST AND TIME SPENT Average amount of time spent: 47 hours Average total cost of due diligence: $2496
10% spent $0 on accountancy advice 19%
spent $0 on legal advice
24%
spent $0 on a financial advisor
WHAT DID YOU RELY ON? A PASSIVE 51% ADOPTED APPROACH, RELYING ON INFORMATION PROVIDED
HEAVILY ON 54% RELIED THE FRANCHISOR’S DISCLOSURE DOCUMENT
A LOT ON 52% RELIED GUT FEELING
MAY/JUN 2016 | 13 | WWW.FRANCHISEBUSINESS.COM.AU
41% 38% 37% 34% 31% 31% 29% 26% 24% 24% 23%
UNDERSTANDING THE INDUSTRY
58%
62%
felt they had a lot of knowledge
felt they had a lot of experience
56% felt they had a lot of expertise
FR1605_0114
-
12
2016-04-18T22:01:40+10:00
Desktop research was conducted by 41 percent of current franchisees while 24 percent posted questions on a blog. Just 38 percent of current franchisees spoke to other franchisees and even fewer visited other franchisees in the network (31 percent). It’s a concern that 53 percent of current franchisees either sourced free legal and financial advice or just avoided consulting a lawyer, accountant, or financial advisor. And the research found that though some franchisees are heeding franchisors’ directives to seek independent advice, the sums quoted would not allow for detailed feedback. Current franchisees, however, had spent more on due diligence than had independent business owners. The average spend on due diligence for existing franchisees was $2,500 while independents invested only $1,500. As the authors write, “this low spend on pre purchase professional advice while conducting due diligence implies a rather cavalier approach to understanding and managing financial and business risk”. Franchisees tended to spend more time investigating the business with the franchisor than conducting independent research.
go ahead with the purchase. Their possible reliance on the turnkey opportunity and relevant support might be misplaced, suggests the report, referencing previous research that indicates 34 percent of franchisors began franchising in the first 12 months of their business operation. When it comes to information received, more than half (56 percent) of current franchisees believed they had information withheld, and 50 percent believed information received had been misleading. “This result suggests that much more can be done to ensure that prospective franchisees enter these relationships with accurate perceptions, derived from full, accurate and properly contextualised information.”
UNDERSTANDING FRANCHISING The good news is there seems to be greater understanding of business and franchising in general, with 58 percent of current franchisees confident they had a lot of knowledge in this arena. Accessing information was perceived to be easy, but those respondents who disagreed may have found it hard to discover information about the franchisor’s group structure or the role of the entities involved.
Fifty eight percent of current franchisees believed they would have benefited from doing further research before buying the business.
The authors highlight the need for franchisees to investigate the franchisor as a business person as well as the business itself, because of the nature of the long-term mutually dependent relationship.
The rather casual approach is revealed again with 50 percent of franchisees admitting they overlooked information or advice because of their determination to
However because franchisors typically operate through a number of different entities, the costs can quickly rise through paying for searches of each entity. MAY/JUN 2016 | 14 | WWW.FRANCHISEBUSINESS.COM.AU
The research discovered that the cost of pre-entry due diligence links to a positive relationship between current franchisees and their franchisor.
SO WHAT SHOULD YOU DO? It’s always good to consult with friends and family, particularly if they have an accounting or legal background, but it can be hard for them to be objective. There is more merit in consulting external advisers – accountants, lawyers, financial advisers. The Franchising Code of Conduct expressly states: ‘You should get independent legal, accounting and business advice before signing the franchise agreement’. Most importantly, seek advice from professionals who are experienced in the franchise sector. Use the information provided by the franchisor as the basis for your research but do not rely on it. Find out all the facts you can about the business and its directors. Turn to franchisees (both existing and former) in the network to seek their views. Spend time working in the business if you can arrange it, before you sign up to a franchise agreement. Read the franchise agreement, the disclosure document yourself – and get your lawyer to go through all the documents. Take your time.
FR0316_000_SNAP
-
1
2016-02-19T16:27:00+11:00
A global leader in tools and franchising
A proven and established business model
Since
1920
No fixed office or workshop
Mobile showroom
Give customers personal service, premium products and finance solutions
Extensive training and support A market leader for mechanics
BE IN BUSINESS WITH THE BEST SNAP-ON TOOLS IS ONE OF THE LARGEST AND MOST SUCCESSFUL FRANCHISES IN THE WORLD AND HAS BEEN OPERATING IN AUSTRALIA SINCE 1988. Snap-on Tools invites you to take our online Discovery Tour to find out if we’re the right business for you. Visit www.snapontools.com.au/franchise
Australia: 1800 762 766 New Zealand: 0800 762 766 Franchising-Advert-0216.indd 1
11/02/2016 3:11:00 PM
FR1605_016
- 16
2016-04-18T17:36:14+10:00
Tap, pay and go?
A
ustralian shoppers are seeking more information about the products and services they buy online, and are increasingly price savvy. That’s according to the latest report from Nielsen, Australian Connected Consumers Report.
The report reveals weekly purchases online are made by about 25 percent of Australians, with some significant shifts in retailing habits. For the first time the hot favourite for digital shopping, a travel-related purchase, has been superseded by consumers snapping up clothing, shoes and accessories online.
WHO SHOPS WHEN? Food and grocery purchases (but not fast food) have experienced growth of online sales, as have entertainment purchases. Most online shopping still takes place during the day, but there is an optimum selling time in the evening between 6pm and 10pm, and a slight surge
in early morning purchases as people start work. However the Australian consumer shops at different times according to age; the important mature consumer (60+) is far more likely to indulge in online retail between 9am and 12pm. Retailers need to understand the differing demographics accessing their products and sites to ensure they can engage the customer with the most relevant message at the appropriate time, suggests Nielsen.
HOW DO WE SHOP? The mobile device continues to strengthen its grip on digital purchasing. The report shows a clear rise in mobile use at the expense of desktop computers.
MAY/JUN 2016 | 16 | WWW.FRANCHISEBUSINESS.COM.AU
Mobile devices are used for easy research while in-store as a step in the decision making process and more than 50 percent of digital shoppers are researching and comparing prices in-store before purchasing. This points to the importance of developing online sales processes and marketing campaigns that suit mobile devices (read more about omnichannel marketing on page 40). Contactless payment using PayWave or PayPass has become the new norm for twothirds of online Australians when paying with a debit or credit card in shops. However, half of the online shoppers are resistant to the idea of a mobile wallet – tapping the mobile phone for payments – because of security issues.
FR0116_000_STL
-
1
2015-11-27T10:32:50+11:00
FR1605_18
-
18
2016-04-18T15:51:17+10:00
MAY/JUN 2016 | 18 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_19
-
18
2016-04-18T15:51:17+10:00
chocolate WHY
IS MORE THAN AN
indulgence, IT’S AN
INVESTMENT
OPPORTUNITY
F
ranchised specialty cafes are growing the market and the indulgence of high quality chocolate is a year round business: analysts have identified revenue of $307.5m in specialty chocolate stores and $6.2bn in chocolate and confectionery manufacturing in the current financial year.
Market research firm IbisWorld anticipates the specialty chocolate stores sector in Australia will grow by 4.6 percent annually, in the five years through 2015-16. Senior industry analyst Lauren Magner says, “The growing trend towards premiumisation has driven demand for specialty chocolate stores over the past five years, as consumers indulge in an affordable luxury or purchase premium chocolate as a gift for special occasions, such as Easter.” And according to a report from IbisWorld, premium chocolate is going to drive growth at 2.5 percent over the next five years to 2021.
FR1605_20
-
18
2016-04-18T15:51:17+10:00
The report, Specialty Chocolate Stores in Australia (July 2015), highlights the revenue estimated over 2015-2016: $307.5m with profits of $27.1m. These figures are off the back of a higher growth for the past five years, 4.6 percent.
FRANCHISED BRANDS DOMINATE There are just 200 businesses in this sector with franchised brands dominating with the biggest single market shares: Chocolateria San Churro leads with 20.5 percent market share; Max Brenner is close on its heels with 19.4 percent; Theobroma accounts for 5.7 percent market share. The remaining 54.4 percent are independents, including Haigh’s Chocolates, which claims to be Australia’s oldest family-owned chocolate manufacturing retailer (4.9 percent share) and Hills 100 Company, the business that owns Koko Black (4.3 percent share). What these brands have in common is a focus on premium, good quality chocolate. And it’s the gourmet aspect which consumers are responding to. Australians’ increasing taste for healthier food choices is proving mixed for the industry, suggests IbisWorld. Overall chocolate consumption has declined, but while consumers are choosing to eat less chocolate, when they
do indulge they are opting for premium chocolate. Exotic and diverse flavours add to the differentiation, and the health aspect has an impact here too with ingredients such as goji berries or green.
the sector: “Franchised specialty chocolate stores have also been more successful than their coffee shop equivalents, with consumers readily associating well-known brands with quality chocolate.”
Supermarkets offer loss-leading specials, and have increased their chocolate merchandise, particularly at peak times, such as Easter. The impact on specialty stores is most apparent in profit margins which have been “under significant pressure”, suggests the report.
As the chocolate stores become more widespread revenue growth is expected to slow slightly, and pressure on profit margins is also predicted. Marketing will be an important element of gaining increased market share, IbisWorld suggests.
HOW CHOCOLATE SPECIALTY STORES CAN BE SUCCESSFUL
“Café-style operations will provide the industry with its greatest avenue for growth as operators seek to benefit from trends towards premiumisation and strong demand for cafes.”
Specialty chocolate stores have added items such as coffee, hot chocolate and desserts to their menus. The report reads: “Over the past five years the development of many of the leading specialty chocolate stores such as Max Brenner and Chocolateria San Churro has been aimed at making a visit to a store an experience rather than simply a shopping trip.” And this is where a team of knowledgeable staff can make the difference. This approach has led to the chocolate outlets encroaching on the cafes and coffee shops industry but it also exposes them to this highly competitive arena. The report considers the marketing of premium products as part of the growth of MAY/JUN 2016 | 20 | WWW.FRANCHISEBUSINESS.COM.AU
WHAT INFLUENCES THE CHOCOLATE BUSINESS? ✱ Bean origin: product differentiation is important so the origin and quality of cocoa beans or powder has an impact. ✱ Raw ingredient costs: inevitably profit margins are affected by fluctuating prices for dairy products and sugar. ✱ Seasonality: “During peak times, sales can double or triple for a week and then slow significantly, creating challenges in terms of labour and production capacity.” ✱ High standard of service: customers expect more when they spend more, and knowledgeable staff are part of a service upgrade.
FR1605_000_CIBO
-
1
2016-04-01T12:38:48+11:00
RZFI-4232 CIBO Franchising Mag Ad_1 April_Full Page (275mmHx205mmW) OL.indd 1
1/04/2016 11:29 am
FR1605_022
-
22
2016-04-18T17:24:07+10:00
HOW TO GET
FINANCE
ORK W E HOM
UR DO YO
TO BUY A FRANCHISE DO A BUDGET AND BUSINESS PLAN
$
!
BE REALISTIC ABOUT YOUR FINANCES
IT HELPS TO HAVE EQUITY BEHIND YOU KNOW HOW YOU WILL REPAY THE LOAN
BE CLEAR ABOUT YOUR BUSINESS GOALS
T
ake steps to be financeready so you can access funding for your franchise purchase more easily.
Be realistic about your fi nancial expectations: Understand what your investment level is, and what you can expect to get from the bank.
Be clear about what you want to achieve with your business: Your bank will want to understand your goals, how you will achieve them, and how you will exit the business.
Do a budget and a business plan: When you do your budget, be honest with yourself and remember to include working capital.
Understand how you will pay back the loan: Ensure you can justify to the bank how loans will be repaid from your business.
It does help to have equity behind you: A minority of franchise systems will be accredited with a bank which means the bank is comfortable with the risk profile of that particular brand. But banks are likely to expect to provide 50 percent of the total investment in some form of equity.
Lack of information: It won’t look good if you don’t know what the bank requires of you, you can’t supply the relevant items and you don’t fully understand the franchise proposition.
MAY/JUN 2016 | 22 | WWW.FRANCHISEBUSINESS.COM.AU
WHAT ARE THE DEAL KILLERS?
FR1605_023
- 22
2016-04-18T17:24:07+10:00
DEAL KILLE RS
?
LACK OF INFORMATION
FIND A FRANCHISE-COMMITTED LENDER
$
A POOR CREDIT RECORD
$$$
BE TRANSPARENT ABOUT FINANCES
R E D N E AL O T EAK
WHEN
SP
O ADY T E R E R YOU'
MISREPRESENTING YOUR FIGURES
BE WELL-ORGANISED
A poor credit record: Any financial institution will do credit checks, and a poor credit record is hard to hide.
that understands it and has a consistent approach. Check if the bank has experience with the brand.
Misrepresenting your fi nances: Don’t try and paint yourself in a better light to the bank. You’ll come unstuck, if not with the bank, then once you’re in business and you have to make your franchise work.
Be transparent about your fi nances: The bank needs to trust you before it will set up a loan. So be honest and open about your fi nancial situation.
WHEN YOU’RE READY TO SPEAK TO A LENDER Find a lender committed to franchising: You need to fi nd a fi nancial institution
Be well organised and have all your documents to hand: A simple level of organisation means you will present well and appear professional to the bank, and you’ll be able to provide all the paperwork required.
MAY/JUN 2016 | 23 | WWW.FRANCHISEBUSINESS.COM.AU
Your bank will want to understand your goals and how you will achieve them
FR1605_024
- 24
2016-04-18T18:16:53+10:00
BUYING INTO A FRANCHISE BUSINESS I
f you are looking to buy a franchise for your first small business, because you like the idea of having the support of a franchise network, what should you be looking for in a good franchise business?
While all Australian franchise systems are required to comply with the mandatory Franchising Code of Conduct, which is regulated by the Australian Competition and Consumer Commission, I cannot stress too much the need to carry out your own due diligence to ensure that your potential purchase is right for you and your family. Your prospective franchisor is required, under the Code, to provide you with a copy of the franchise agreement and a disclosure document and you will need to ensure you get the right accounting and legal advice to assist you with your decision. Your due diligence or research should, however, start with you and your family. Ask yourself the hard questions about the reasons you are considering buying a franchise: ✱ are you prepared to put in the hard work and hours
needed to make it a success? ✱ do you have the support mechanisms in place from family and friends that will be needed when you are working long hours? ✱ can you cope with the pressures of owning your own business rather than having a regular wage? ✱ you need entrepreneurial skill and ambition but do you have the right personality to be able to work within the operational requirements of the franchise system? Your decision on which franchise system to go into will, to an extent, be determined on your ability to fund the purchase of the franchise, but beyond that, there are many instances of people buying into franchises that had no apparent relationship to their previous experience. The key to this is to be open about all opportunities and work through a process of elimi-
nation to arrive at those that will fit your pocket, your interests and your lifestyle. One of the advantages of taking the franchise route is having a franchisor who is working full time on spreading the word of your brand. Just as there are differences in all businesses you will find varying degrees of support and marketing activity in franchise systems and you need to evaluate this arefully as part of your due diligence. Your prospective franchisor should encourage you to make contact with existing franchisees and talk to them about their experiences of working within the system. As your financial resources are obviously play a vital part in the decision you make. It is almost inevitable that you will need to look at financing part of the purchase price and initial start-up costs. While you will probably have a good relationship with your existing bank, just as you would shop around for the best quotes in making a purchase, so you should take the opportunity to get the most appropriate advice.
MAY/JUN 2016 | 24 | WWW.FRANCHISEBUSINESS.COM.AU
GRAHAM BILLINGS After seven years as executive director of the Franchise Association of New Zealand, Graham continues to represent FANZ on the World Franchise Council and acts as a consultant to Tenfold Wealth Management
FR0316_000_CHEESE
-
1
2016-02-19T15:33:57+11:00
FR1605_026
- 26
2016-04-18T17:48:19+10:00
BEST MATES forever?
BUYING A FRANCHISE
WITH YOUR BEST FRIEND
MAY/JUN 2016 | 26 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_027
- 26
2016-04-18T17:48:19+10:00
Y
our best mate is your confidante, partner in crime, and go-to in a crisis. But should you buy a franchise with them, asks Noha Shaheed.
Jason Gehrke, director at the Franchise Advisory Centre, says that the benefits of partnering with a best friend in a franchise is that it “spreads the risk” and “reduces the amount of capital you need” to invest. Teaming up with a mate also gives you someone to rely on to run the business when you’re not there. However, it’s not that simple. Gehrke says that partnerships with a best friend can be unpleasant “when you don’t have a partnership agreement in place”. He believes that without the agreement, there is no way to see how the roles are clearly delineated. Franchise partners should be aware of what is expected, business goals, and their respective KPIs aligned with those business goals. If this doesn’t happen, the attribution of blame can occur if the franchise fails. Gehrke says that challenges rise when expectations are too diverse, where one friend could be keeping an eye on the risks while the other has an idealistic approach.
“Complementary skills do better,” he advises. “You don’t even need to partner with a best mate or start as a best mate.” As long as you “share the same values, see the same opportunities for the business”, and acknowledge and trust each other’s skills, partnerships can be fruitful. His key points of advice are to: ✱ Always do a business plan ✱ Track performance of business against the business plan ✱ Make sure to have a partnership agreement ✱ Ensure to have a clear idea of each partner’s role in the business Rob Toth, partner at Marsh & Maher Lawyers, says there are both benefits and challenges to franchising with a best friend. “Partnering can be fi nancially and operationally helpful,” he says. Toth outlines the benefits of franchising with a friend as: ✱ Funding: franchising is a substantial investment. Partners can share the burden of upfront costs and the risk. ✱ Roles: partners can help with
FR1605_028
- 26
2016-04-18T17:48:19+10:00
managing and sharing work hours (particularly relevant in retail). However, he warns that franchising can make or break a friendship because “perception is everything”.
CHALLENGES THAT COME WITH PARTNERING WITH A BESTIE There are two obvious obstacles to overcome:
PROFESSIONAL BUILDING BESTIES: DRAWING THE LINE
started preschool. The pair has also worked together in the past.
Adrian Willingham and Brenton Simpson are two mates who come from construction backgrounds and are joint franchisees at Hotondo Homes Ballarat.
Kochner says the best part of franchising with a best friend is that they can both celebrate the wins and get through the challenges together.
Willingham finds the best part of franchising with a best friend is that it allows you to “have a clear understanding of both your skills and attributes”.
✱ Decision making: it’s important for both friends to enter a franchise on equal footing, because problems can occur when it comes to the distribution of profits. ✱ Managing expectations: guidelines should be set about roles to ensure there aren’t “too many cooks.” “Business is business,” says Toth. “It’s a different headspace from friendship.”
Teaming up with a best friend enables franchisees to spread out the responsibilities, develop professionally, optimise both sets of skills, and share different opinions.
Sometimes partnering a best friend turns out to be not what was expected by both parties, and is also not simple to exit legally.
He also highlights the importance of communication and says “having the same (business) goals is crucial”.
Toth advises against franchising with a best friend unless “lines are drawn up front”. “There will be potential risks to the friendship, think carefully, and be upfront. A partnership agreement is key.” So who is making it work?
However, the challenges are delineating each person’s role, and managing a work life balance. “It’s pivotal that you’re both aware of the role you’ll each play,” he explains.
“Business is business and friendship is friendship. Don’t blur the lines,” advises Willingham.
ZARAFFA’S COFFEE: A UNITED FRONT Current franchisees of Zarraffa’s Coffee Richlands in Queensland are Brett Kochner and Terry Fleming, who became best friends when their kids
“I am very lucky, Terry is like a brother to me,” he says. “I can share anything with him and be supported and never judged.” Kochner believes that working with a best friend has simplified to task of franchising because he is able to rely on Fleming if he went on holiday. “You have nothing to worry about because you have someone running the business with your best interests at heart.” He says that like any relationship, franchising with a mate can come with challenges, but nothing that can’t be sorted out. “The important thing in my opinion is to have the same value system and moral code. Terry’s values and moral code are just like mine,” explains Kochner. His advice for potential franchisees thinking about teaming up with a best friend is to trust them and manage expectations. “Trust your mate’s judgement, never take things personally and don’t expect your mate to be perfect, because I know I’m not.”
MAY/JUN 2016 | 28 | WWW.FRANCHISEBUSINESS.COM.AU
ADRIAN WILLINGHAM AND BRENTON SIMPSON
FR0116_087_LEA
-
1
2015-12-16T09:12:25+11:00
I DID IT. “Jackie and I bought The Leather Doctor franchise because we love being together as a family. But it built up so quickly we became frantic! We trained our son, Cameron and his wife, Kayla to take over the Mackay region while we stay focused on Rockhampton. Truth is, we do better together than what we do apart!� - Jon & Jackie Minards Franchisee
Exciting new brands are now available following the same winning system, The Leather Doctor, The Timber Doctor and The Fabric Doctor. This is real opportunity.
I_DID_IT_MINARDS_205x275mm.indd 1
Call 1300 453 284 or visit www.myleatherdoctor.com.au You can do it too.
15/12/2015 2:14 pm
FR1605_30
-
30
2016-04-18T16:17:51+10:00
10 SKILLS
your franchisor can teach you
W
hen you decide to buy a franchise the back-up and training on offer can help set you up for success.
So what can the franchisor train you in? Natalie Brennan is head of corporate brand support at Foodco Group (Jamaica Blue and Muffin Break); here she highlights 10 aspects of franchisor training.
1. TO BE A BUTCHER, A BAKER OR A CANDLESTICK MAKER Whatever your passion is or if you are just looking for a change in career, then a franchisor will teach you the base skills to make the change. For example, if you are an accountant who dreams of being a barista then your franchisor will give you those skills so you can ultimately become an expert in that field. Coffee is not just about a cappuccino; it’s about the bean to cup journey. Learning about the coffee you’re serving, where it originated and how it’s grown will make all the difference. MAY/JUN 2016 | 30 | WWW.FRANCHISEBUSINESS.COM.AU
2. TO LOVE YOUR CUSTOMERS Nobody can make a profit until someone buys a product or a service, so building loyalty and rapport with the people you sell to is critical. This will ensure people always return and helps build your sales. Selling and dealing with customers is not a natural skill for everyone, so a franchisor will give you practical tools so you can become a customer magnet but also the support when things aren’t going as they should.
3. TO WORK AS A TEAM Regardless if you are working alongside a fi nancial partner or employees, you need to collaborate, communicate and co-operate with one another. Working effectively as part of a team is incredibly important for output quality, morale and growth.
FR1605_000_DOM
-
2
2016-04-04T12:25:59+10:00
FR1605_32
-
30
2016-04-18T16:17:51+10:00
The franchisor can provide the tools for you to learn best practice – whether that’s through the company intranet, workshops on team building skills or tips from a business development manager.
4. TO BE A LOCAL MARKETING HERO Promote not only your business but yourself and your team through the local community. After all, they are your target market. Your franchisor will assist you to become actively involved by creating local competitions, sponsorships, local marketing, supporting fundraisers.
5. TO BE PART OF SOMETHING BIGGER THAN YOURSELF You will be given the opportunities through meetings, conferences and workshops to be involved with your greater franchise group. Your franchisor will facilitate your learning from others through these events. Additionally, an involvement with the Franchise Council of Australia community will constantly keep you updated with relevant information about the industry.
6. TO BE PROFITABLE A franchisor will have a tried and true system to help maximise profitability from the business. If you have never worked with profit and loss statements and don’t yet understand the mechanics of how to make money, then your franchisor will be there to teach you. It is critical that you recognise the key cost controls for the system you have bought into. Profit is not a given in any business, if you don’t understand how to unlock profitability you risk the business not reaching its full potential.
7. TO BE A GREAT MANAGER AND LEADER
People are your greatest asset and frequently your greatest cost, so you need to harness the power of your people. Staff can make or break your success, so a franchisor will teach you how to attract great people, manage the systems and create a business where you inspire and lead your team.
8. HOW 1 + 1 = 3 Many minds can create more than the sum of the parts. Having the franchisor support plus the franchisee network will help build a support system for any franchisee. The greatest assets of any franchise systems are your fellow franchisees who work with and understand the system. A good franchisor will have former franchisees working in its head office because they are a great source of knowledge and expertise. These people will ensure that the system continues to build and grow.
9. HOW TO FIND THE ANSWERS There are no new problems in the business world. Somewhere, someone will have the answers to a problem you are facing in your business. Don’t be afraid to ask for help and advice from someone that has already been through a similar situation. This will save you time and money. Your franchisor and the network of franchisees around you are an endless source of help.
10. MIND READER When you operate a business you are in a situation where you are dealing with all sorts of staff and customers, so you need the appropriate skills to identify the wants and needs before they know they want it. Being pro-active in both your customer wants and your staffs needs will place you in a position where you are able to deal with the business priorities and planning rather than day to day firefighting.
Owning your own business and being your own boss is the great Australian dream, however most people entering into a small business have never been taught the necessary skills.
A good franchisor will be researching and investigating consumer and industry trends, and tweaking business practices and the brand offer to suit. From them you can learn how to meet customer demands, and ways to stay ahead of your business. Let the franchisor be the mind reader.
Most new franchisees have been an employee and not a supervisor or business owner, so a franchisor will be have real information and tips to smooth that transition.
Buying a franchise means buying into training, knowledge, experience and support. How much learning you absorb in your franchise is dependent on you.
MAY/JUN 2016 | 32 | WWW.FRANCHISEBUSINESS.COM.AU
FR1113_000_SUB
-
1
2013-09-19T14:58:54+10:00
FR1605_034
- 34
2016-04-18T19:49:12+10:00
Marketing funds:
THE BASICS
M
arketing funds are an important ingredient in franchising. They offer benefits but they can also leave franchisees with a bitter taste
Joint marketing arrangements have a strong tradition in franchising and for the most part they work well to build brand recognition, avoid duplication and ensure consistency across the franchise system. But, like most arrangements where one party controls the purse strings, sometimes there are tensions about where the dollars go. Transparency and accountability is the key to heading off any problems.
FRANCHISOR OBLIGATIONS This is where the Franchising Code of Conduct comes in. Under the mandatory Code,
there are limits on how the franchisor can use the marketing fund. Under the Code, franchisors only may use marketing fees to either cover: ✱ expenses that were set out in the franchisor’s disclosure document ✱ legitimate marketing or advertising expenses ✱ expenses that a majority of franchisees have agreed to, or ✱ reasonable costs of administering the fund. If you’re thinking about buying a franchise, it pays to check what the disclosure document says about marketing fees. Make sure you’re happy for your money to be spent in that way. The ‘legitimate marketing or advertising expenses’ isn’t defi ned in the Code, but something like a billboard or TV ad will be legitimate, whereas paying for the franchisor’s new Lamborghini and putting a logo on the side may not be.
CHECKS AND BALANCES Under the Code, franchisors have to set up a separate bank account for the marketing fund. The franchisor must prepare an annual financial statement detailing all of the fund’s receipts and expenses for the financial year. This task must be completed within four months of the end of the financial year. The statement must provide meaningful information about who contributes to the fund and how the money has been spent. The statement must also be audited, unless 75 percent of franchisees who contribute to the fund vote that it is not required. The franchisor must provide franchisees with the financial statement and auditor’s report (if required) within 30 days after their preparation. For more information about marketing funds and your rights and obligations under the Franchising Code visit www.accc.gov.au/franchising.
MAY/JUN 2016 | 34 | WWW.FRANCHISEBUSINESS.COM.AU
DR MICHAEL SCHAPER Dr Michael Schaper is deputy chair of the Australian Competition and Consumer Commission.
FR0316_000_GEL_1
-
1
2016-02-19T16:04:33+11:00
FR1605_36
-
36
2016-04-18T16:20:07+10:00
MAY/JUN 2016 | 36 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_37
-
36
2016-04-18T16:20:07+10:00
WHAT YOU
NEED TO KNOW ABOUT THE
OPERATIONS
MANUAL
T
he operations manual of a franchise system, together with the franchise agreement, is one of the most important documents that will apply to a franchisee. In this article Jack Newton, lawyer, and Raynia Theodore, principal, at MST Lawyers, unveil what you need to know.
Most franchise agreements dictate that the franchisee must comply with the operations manual and that a breach of the operations manual constitutes a breach of the franchise agreement. The operations manual usually sets out the 'fine print' of operating a franchise. Quite simply, the operations manual is the key to your business. The operations manual for a franchise system in its infancy may be brief because it can take time for franchisors to develop the key processes and procedures required to operate the franchise business. However it is important to ensure that the content deals with all the matters that the franchise agreement states are included in the operations manual.
MAY/JUN 2016 | 37 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_38
-
36
2016-04-18T16:20:07+10:00
Where an established franchisor’s operations manual doesn’t address the usual matters, that may be either a sign the franchisor does not take responsibility for the matter or it may otherwise be a sign the franchisor’s system is still not settled. Because of the importance of the operations manual, a franchisee should request a copy before signing the franchise agreement. Franchisors are often reluctant to hand out copies to prospective franchisees for fear that the franchisee will pull out and run off with the franchisor’s trade secrets. In such a case, and as a compromise, a prospective franchisee should consider requesting access to view the operations manual at the franchisor’s premises.
WHAT’S IN THE OPERATIONS MANUAL A typical operations manual will include: A general introduction and information about the franchisor and: KEY PEOPLE Key people (i.e. employees) to be engaged in the franchise business. The section can include information about employee roles/job descriptions, uniform requirements, recruitment procedures (such as advertising and interviews), training and performance management criteria. PRODUCTS AND SERVICES This section is critical as it usually addresses, in greater depth, the products and services that are to be sold in the franchise
business. It may include details of ingredients, recipes and nutritional information. SUPPLIERS One of the key attractions of the franchise model is the greater buying power of a network. Franchisees are generally required to acquire products and services to be used in the franchise system from approved suppliers and these are usually detailed in the operations manual. SET-UP AND PROCESSES If the franchise operates from fixed premises – a retail shop or office – there will be no doubt a section in the operations manual that outlines the franchisor’s setup, branding and equipment and furniture requirements as well as store procedures (such as opening and closing processes and hours).
MAY/JUN 2016 | 38 | WWW.FRANCHISEBUSINESS.COM.AU
EQUIPMENT Specifically details of all the tools and machinery to be used in the franchise business and information about safe work practices and how frequently the equipment is to be tested and serviced. CUSTOMER SERVICE The operations manual will usually contain a section on techniques for dealing with customers and ensuring high customer satisfaction. A common inclusion is a set of standards or goals for customer service, together with complainthandling procedures. BRANDING The manual should include information regarding the franchisor’s branding requirements for items such as stationery, advertisements, signs and posters.
FR1605_39
-
36
2016-04-18T16:20:07+10:00
POLICIES A well-crafted operations manual should include copies of all the policies and procedures of the franchise system, including policies in respect of privacy, equal opportunity, workplace conduct (such as harassment, bullying and discrimination), dispute resolution and employment. HEALTH AND SAFETY The operations manual will typically include information covering first aid, fire safety and evacuation, pest management, accident reporting, robbery and other crime and drug and alcohol use. ADMINISTRATION This section of the operations manual usually covers financial matters (such as the point of sale system, cash handling and
floats) as well as sales, stock, wastage and cost management. There may also be information on reporting procedures and stock ordering. WHAT ELSE YOU NEED TO CONSIDER The two most critical questions that franchisees must ask: 1. are all the matters that the franchise agreement states are covered in the operations manual actually included? 2. are there any matters in the operations manual that appear inconsistent with the franchise agreement? AMENDMENTS Most franchise agreements provide that the operations manual can be changed by the franchisor from time to time. Often this will occur without the consent of franchisees who then will be
required to immediately comply with the changes. EMPLOYMENT Franchisors differ quite dramatically in how they approach industrial relations/employment matters. Some take an active role in prescribing employment contracts or enterprise agreements, others leave it solely to the franchisee. In either case, the franchisee must actively take steps to ensure that the terms of the contract or agreement are accurate and lawful. Even if the franchisor deals with industrial relations/ employment matters in the operations manual, sole responsibility for compliance with industrial relations laws lies with the franchisee in its capacity as the employer.
MAY/JUN 2016 | 39 | WWW.FRANCHISEBUSINESS.COM.AU
Are all the matters that the franchise agreement states are covered in the operations manual actually included?
FR1605_040
- 40
2016-04-18T17:49:34+10:00
OMNI CHANNEL
MARKETING and your franchise choice
Y
ou’re ready to snap up that retail franchise for sale but wait… have you considered how your franchisor will handle online and omnichannel marketing?
How do customers buy goods or services today? How did you make your last purchase? In a store, online, using an app or over the phone? The same product may be sold by the same supplier through a number of different channels. In the retail world this concept of omnichannel retailing or marketing has had a significant impact on how all businesses, including franchises, operate.
THE NEW DIGITAL WORLD OF RETAILING Once a upon a much simpler time the franchisor gave a franchisee the right to operate a ‘bricks and mortar’ store and/or a defined territory and the franchisee sold the
goods or services to the customers who entered the store or who lived in the territory. But what happens now? A customer can live almost anywhere and order the same goods or similar online from all over the world and for maybe a cheaper price. You can order and buy a custom made mattress, shoes or a pizza through your computer or phone. Even service based businesses can be affected by new forms of online technology such as Airtasker (handyman services), Uber (taxi), Expedia, Flightfox etc (online travel agents) and their numerous competitors.
WILL YOUR FRANCHISE HANDLE ECOMMERCE? Retailing and marketing are becoming more complex with the aid of these new technologies. Every purchaser of a franchise big or small should carefully consider how the business is impacted by omnichannel marketing both internally to the franchise system and from outside competitors.
For example consider how the franchisor handles online sales in the system. Does it operate a website allowing customers to buy the same products sold by franchised stores? If it does, then how are the profits for these sales dealt with? Many franchisors share the online revenue with their franchisees in some way, usually taking into account the cost of operating the online shopping facility. Some franchisors allow the franchisee to take online sales and may provide the technology for the franchisee to process customer transactions. The online (or mobile app) ordering of fast food is such a situation – the customer selects their local store and the order is placed directly with the franchised business. The franchisee in those cases will expect to pay a fee for the provision of the technology by the franchisor. Many service franchises gain the bulk of their customers from online or phone queries - the franchisor will operate a central call centre and phone number, and leads will
MAY/JUN 2016 | 40 | WWW.FRANCHISEBUSINESS.COM.AU
CORINNE ATTARD Corinne is a partner in the Sydney office of Holman Webb Lawyers with more than 25 years experience in the retail and franchising world including in-house with a leading national brand.
FR1605_000_MAD
-
6
2016-04-04T12:36:39+10:00
e m o c e B r own you
at mad mex we believe partnering with the right people is the key to success.
healthy, fresh & authentic Mexican food served in a fun, fast-casual environment is just the start of our business. our franchise partners love building highly engaged teams, and thrive on delivering exceptional customer experiences to every amigo, every time, which keeps our madly devoted fans coming back for more. For more information on becoming a mad mex franchise partner Contact:
Michael Savvas - 0434 171 449 madmex.com.au/franchising
Franchising Opportunites Advert.indd 6
4/04/2016 10:35 AM
FR1605_042
- 40
2016-04-18T17:49:34+10:00
be allocated according to franchise territory. If several franchisees operate in a single territory then leads may be rotated and the franchisor may take into account franchisee response time and compliance when allocating leads. Often there are restrictions in the agreement on how the franchisee can operate online; if the franchisor operates a central website or ecommerce facility then franchisees may be prohibited from operating their own competing facility or site, even a separate Facebook site. All these issues must be carefully examined and considered in assessing any potential franchise business. If the franchisor does not operate an up-to-date functional mobilefriendly website or use new technology then the question must be asked why not? And is it open for competitors – those outside the system – to do so? Can the same goods be offered more cheaply online? What stops your future customers from moving their purchases online to the outside competitor? The franchise agreement should be expected to make provision for future developments or technologies so that the business can move into new channels as they arise.
LEGAL PROTECTIONS There are no laws in Australia which prohibit a franchisor from selling online in competition to its franchisees or from stopping its franchisees from selling online. But the Franchising Code of Conduct demands franchisors disclose these matters to franchisees to enable them to make an informed decision.
for various sellers of goods and services and these are likely to be of interest to either a franchisee or franchisor. For example - may a handyman franchisee advertise its services on Airtasker?
The current form of the franchise disclosure document (to be provided at least 14 days before a franchisee signs a franchise agreement) requires a franchisor to give details of what the franchise system provides about online sales.
A related omnichannel issue worth mentioning for retail franchises is the extent that third party sellers (online or not) may sell the same products. If a retail franchisor permits its products to be sold in department stores or supermarkets what impact will this have on the franchisees? This is an issue not adequately covered by the disclosure document but which should be considered by the franchise buyer.
The franchisor must disclose whether the franchisees or the franchisor can sell online and what restrictions are placed on franchisees from doing so. If the franchisor can sell online then the extent to which it can sell in the franchisee’s territory and the details of any profit sharing arrangement with franchisees must be disclosed.
The information provided by the disclosure document is only a starting point. Potential franchise buyers still need to ask a lot of questions about how the franchised business is affected by online and other marketing channels and to ensure that the franchisor has also considered the issues and has developed appropriate strategies.
Another issue to be disclosed by the disclosure document is the potential sale of the goods or services through third party websites, whether by franchisee or franchisor.
A red flag should certainly be raised with respect to any franchise system that continues to ignore the impact of omnichannel marketing or fails to build in flexibility for the future. Such a business runs the obvious and real risk of being made redundant by its more agile (and maybe not franchised) competition.
Originally this chiefly concerned Ebay, however there are now numerous other sites which act as auction houses or markets
MAY/JUN 2016 | 42 | WWW.FRANCHISEBUSINESS.COM.AU
A red flag should certainly be raised with respect to any franchise system that continues to ignore the impact of omnichannel marketing
FR1605_000_GRO_V1
-
1
2016-04-11T12:27:34+10:00
Customers everywhere RAVE about this service.
Who Else Wants to Earn $2,000 in a Week for Just 30 Hours Work... in Your Own Lifestyle Business?
That’s what our Tweed Heads GroutPro specialist has regularly earned and so have many others. It ‘s *possible for you too when you follow our system. (*See earnings disclaimer at bottom of this ad)
If you’re sick of working long hours for someone else and sick of missing valuable time with your family, this could tick all the boxes. Become a GroutPro tile and grout restoration specialist and you’ll help home owners save $1000’s on retiling by restoring their dirty, damaged tiles and grout so they look brand new again. Our customers love it. Plus, the demand is massive! Earn great money. Work your own hours. And spend more time with the people you care about most.
High Profit Margins. No Skill Required. Virtually anyone can become a GroutPro tile restoration specialist. You don’t need to be a skilled tradesperson or have any previous experience. Our people come from diverse backgrounds including Police force, banking, sales, and printing. Plus you enjoy high profit margins on your work.
Low entry cost (everything included) No experience required (full training provided) High profit margin (up to $100/hr regularly achieved) Multiple income streams Investment can be recovered in less than 5 months Award winning systems and procedures Ongoing support and training Large protected territories
Earnings Disclaimer: These earnings figures are based on what many of our franchisees have reported to us anecdotally.We don’t guarantee specific earnings.You may earn more. You may earn less. The results you achieve depend on how thoroughly you adhere to the GroutPro system, how much effort you put in, as well as seasonal influences. When considering a franchise make a judgement based on the overall offer not just the potential earnings.
Do yourself a favour. Find out more. Download our FREE info pack at www.groutpro.com.au Franchises available across Australia.
FR1605_044
- 44
2016-04-18T17:34:12+10:00
How can IT help you be a more efficient franchisee?
T
here are plenty of aspects of a franchise business that are important considerations when deciding whether or not to invest in the brand. IT is one of these that can really make a difference to the business.
Just imagine doing business today the way it was done only a generation ago. No internet, no email, no Google, no wireless Point of Sale or electronic funds transfer, or payWave, no computer based inventory, data base, rosters, purchasing, financial records,
payroll, no Facebook, Twitter, Snapchat, Instagram. Even the mobile phone was only mobile if you were built like Arnold Schwarzenegger!
technology systems that store, manage, transmit, retrieve and manipulate data are fundamental to the way we do business. But are your systems really serving you and creating optimum efficiency and value in your business? Are they even systems, or just a collection of hard and software that carry out a range of individual business functions that you assimilate manually to provide the necessary visibility over your operation?
So on the face of it, IT (information technology) or more accurately perhaps today, business
To provide genuine efficiency your IT ideally should be a total operational ecosystem. By
MAY/JUN 2016 | 44 | WWW.FRANCHISEBUSINESS.COM.AU
ecosystem, we mean a network where each business function is integrated to the other. So the POS (point of sale) ‘talks’ to the data base, CRM (customer relationship management) system and customer loyalty program which ‘talks’ to the marketing systems with analysis and tracking systems. This provides performance measurement and return on investment (ROI) data from marketing campaigns because it ‘talks’ to the accounting package which monitors the
FR1605_045
- 44
2016-04-18T17:34:12+10:00
network’s financial activities in real time, standardising reporting, benchmarking and assessing key performance indicators across the network. The accounting feature ‘talks’ to the rostering system (which has the function to meet Fair Work regulations) and payroll, as well as an inventory, stock management, purchasing and distribution system. It also hosts an efficient network communication and website support platform providing for operations, procedures and even an online Learning Manage-
ment System for cost-effective induction, training, operational support and compliance. This is especially important in multiple unit businesses such as franchises where scalability is dependent upon integrated systems that support the team with the necessary tools and knowledge transfer processes. This ensures the effective communication, operational and regulatory compliance and brand consistency that are critical to the success of the franchisees and the sustainability of the network.
The design and set up of a business technology system in a franchise network is almost always the responsibility of the franchisor. Part of their offer to franchisees includes the systems and processes for franchisees to manage their businesses, and the technology that supports that will generally be authorised by the franchisor. This will be subject to upgrade from time to time (as technology becomes outdated very quickly) and in older networks, business functions may be based on outmoded technology that is less efficient.
MAY/JUN 2016 | 45 | WWW.FRANCHISEBUSINESS.COM.AU
SUZANNE JARZABKOWSKA Suzanne Jarzabkowska is CEO of DC Strategy
FR1605_046
- 44
2016-04-18T17:34:12+10:00
savings allowing you and your team to to concentrate on high quality engagement with your customers. Your success depends on having well trained and supported staff who are totally focused on creating a personalised customer experience This is particularly true for franchisees with multiple units, such as multi-unit franchisees, area developer licensees and master franchisees, where technology to support your ‘mini network’ will have enormous benefits of scale. And for those in established networks, investing in technology systems upgrades with the franchisor periodically will have lasting benefits.
As a potential franchisee looking to purchase a franchise, assessing the quality of the business systems used in the network is an important part of your due diligence or research into the business opportunity. Integrated systems reduce your workload in many of the time consuming, repetitive, mundane tasks that take you away from servicing your customers, managing your staff and growing your business.
9 WAYS TECHNOLOGY CAN HELP YOU BE A BETTER FRANCHISEE So how exactly do good business technology systems help you be a more efficient franchisee? 1. Good systems reduce administrative burden giving you more time to focus on customer service, staff management, and sales rather than time on systems and processes.
2. IT can increase productivity for you and your staff as automated systems to manage complex tasks such stock control, inventory and purchasing save time. 3. Effective systems for rostering and payroll can ensure compliance with regulatory bodies (such as the Australian Taxation Office) in relation to awards, wages, deductions and other aspects of the Fair Work Act (2010), thereby reducing your risk and liability for infringement. 4. Accurate financial figures correlating data from your POS to your inventory to wages to rostering to promotions allow you to analyse your fixed and variable costs and your revenue. 5. Improved visibility over all aspects of business is key to uplifting sales, improving profitability and managing costs. Good business systems deliver information to make the right business decisions in a faster timeframe and in any location.
6. Knowledge gained from your systems about the realities of your daily operations allows you to understand the key performance indicators to set targets and benchmarks for your team to uplift personal and team performance. 7. IT allows you remote access when away from your business to manage your team as well as providing added security and the ability to monitor performance and enforce compliance. There is improved market reach and effectiveness for local area marketing and the ability to track and measure performance and ROI of campaigns and promotions. 8. An online learning management system that delivers cost effective training and access to operations and procedures manuals reduces the cost of inducting your employees and uplifting standards, introducing new products and services and measuring performance. 9. Effective IT provides significant time and cost
MAY/JUN 2016 | 46 | WWW.FRANCHISEBUSINESS.COM.AU
Effective business technology needs to be user friendly and backed up with the training and support that ensures all team members utilise it effectively. This will deliver tangible benefits allowing your business to grow, to gain operational transparency, to assist in making business decisions and to build enterprise value for your ultimate exit. Consider this: ✱ 60 percent of customers will pay more for brands with superior experiences and 60 percent say that overall experience is the single biggest factor driving purchase ✱ 90 percent of great customer experiences lead to the most trusted advertising - personal recommendation - and almost 80 percent of people will only advocate brands following great personal experiences So as a franchisee it makes sense to utilise technology to free you and your team to give the most of your attention to your customers - that’s why you are in business. The freedom to create, service and retain loyal customers is the real benefit of great technology.
FR0316_000_SUMO
-
1
2016-02-19T16:31:17+11:00
MAKE A HEALTHY BUSINESS CHOICE
JOIN SUMOSALAD, AUSTRALIA’S LARGEST HEALTHY FAST FOOD CHAIN, IN OUR JOURNEY TO MAKE AUSTRALIA A HEALTHIER PLACE.
“I bought two Sumo stores as I saw a great future with SUMO. I love how the whole team work together to make the brand better and better!” Victoria based multi-unit SumoSalad franchisee Emma Li
Visit www.sumosaladfranchise.com or contact Andrew Wild at andreww@sumosalad.com for all the information you need to make a healthy business choice.
SumoSalad Franchising Full Page Ad - Cirrus Media MAR 16 - 2.indd 1
11/02/16 3:51 PM
FR1605_048
- 48
2016-04-18T21:54:15+10:00
Easy ways to get the most from
SOCIAL MEDIA
G
aye Steel, GM of marketing at Mad Mex Mexican Fresh Grill explores how franchisees can work with social media.
A brand’s social media presence is one connected ecosystem that can allow each store to be community-driven. The potential for slightly diverse messaging and local flair makes a brand authentically local. Understanding your customer is extremely important in determining your social media content and keeping customers engaged. An effective strategy with cross platform content integration can develop deep brand advocacy, retain customers and strengthen your relationship, reach new customers and grow your followers organically, drive traffic to your store, educate your customers and establish your business as a thought leader within your community. Engaging content becomes the fuel that drives growth and extends the customer relationship beyond a simple purchase in-store or online. To succeed and integrate your individual brand’s efforts, it
is imperative to understand which platforms and what type of content perform. The three social networks reporting consistent growth are Facebook, Instagram and Snapchat. Snapchat’s appeal and simple service hasn’t worn off and over the last year it has added about one million active Australian users – sitting at approximately two million active Australian monthly users. In Australia, Facebook is the largest online social network, there are over 14 million users, many using the platform regularly.
QUALITY OVER QUANTITY It’s common to think you need every social channel available but have a good think about how you’ll manage one, two or more social channels. Each needs different content and each needs the time dedicated to responding and engaging with your social community. If you have two channels, all of a sudden your workload has doubled. If you feel you might be stretched, choose one channel and master that before attempting another.
DEVELOP A SOCIAL MEDIA TOOLKIT FOR YOUR BUSINESS
Facebook has become a key platform for driving localised consumer-brand interaction and the platform has options and strategies available specifically to retail to showcase and sell products directly.
If your franchisor already has an overarching social media toolkit, make sure you use it. Otherwise, refer to the brand guidelines to assist you optimise your strategy for localisation.
Twitter with nearly three million Australian (mostly mobile) users has launched a ‘Buy Now’ button which gives retailers a new tool to engage with customers and drive purchases. A ‘Buy Now’ button on Twitter Social commerce is obviously a key part of an overarching strategy to shorten the gap between social engagement and shopping.
A social media toolkit should include the following:
handle customer service in a timely manner with a friendly and personal response. This not only helps the customer resolve issues but also leaves them with a positive impression and helps build trust in the business. Find out how to repurpose Instagram photos taken by local patrons for added consumer engagement and content creation to develop an interactive social community. Localised marketing via social media channels is less expensive than traditional platforms.
MEASURE SUCCESS If you’re using social media you should be measuring it and identifying areas that need adjusting. You need reliable and consistent analytics that help you track your success on your key channels like Facebook, Twitter, and YouTube.
A visual and verbal toolkit covering tone of voice, a content review system, frequency of posts, cross platform content integration strategies.
The two main types of social media measurement are ongoing analytics (monitoring that tracks activity over time) and campaign-focused metrics – campaign or event analytics with a clear beginning and end.
Identify your community manager within the business, ensure they are skilled to monitor the platform and
Social analytics makes everything accountable, providing the power of insight to drive business value.
MAY/JUN 2016 | 48 | WWW.FRANCHISEBUSINESS.COM.AU
FR0715_000_RED
-
1
2015-06-25T13:46:50+10:00
RULE THE ROOST. Red Rooster Franchise Opportunity. This is a real opportunity to be seized. Red Rooster is looking for self-motivated people to become owneroperator franchisees. If you’re a hard-working people-person, with a can-do attitude, you’re just the kind of person we’re looking for. You’ll find all the details on how to apply at
www.redrooster.com.au/franchise
QSR0001 RedRooster_FranchisePress_FA01.indd 1
16/06/2015 10:11 am
FR1605_050
- 50
2016-04-18T19:44:56+10:00
Don’t forget
THE LAWYER! C
onsulting with a lawyer is a very important step for anyone about to buy a franchise. It is always beneficial to see a lawyer early in the process because we can direct you to issues you should be looking at.
However before you visit a lawyer there are a few things that you can do to ensure that you get the most out of a consultation.
SEEK ADVICE FROM AN ACCOUNTANT One of the first steps a prospective franchisee should take is to consult with an accountant. Ensuring that you are in the right financial position and have the borrowing capacity to enter into a franchise is essential before you invest further time and money into the process.
MAY/JUN 2016 | 50 | WWW.FRANCHISEBUSINESS.COM.AU
JANICE BYWATERS Janice is Special Counsel at Rouse Lawyers and has advised many franchisors and franchisees in all aspects of franchising. Janice also provides legal advice on related legal issues including trade practices and intellectual property areas.
FR0316_000_XPR_D
-
1
Xpresso Delights 2, 3 or 4 day a week business offers genuine semi-passive income. How? Let our premium fully automatic coffee machines do the work for you, they make the coffees while you earn the income. Plus you get to choose the days and hours you would like to work.
FCA Magazine People.indd 1
2016-02-19T16:31:34+11:00
At Xpresso Delight, we are in the corporate workplace coffee market. We offer a business opportunity like no other, operating within a market that loves and accepts our unique product and service. Plus you benefit from over 12 years experience with our proven systems, training and support.
Xpresso Delight provides a cafe quality experience right inside the workplace. Our client Locations enjoy all their favourite coffees and even hot chocolate all at the press of a button. Plus they enjoy our 5 Star Concierge Coffee Service that only Xpresso Delight can deliver.
7/02/16 6:09 PM
FR1605_052
- 50
When it comes to signing the franchise agreement, you will need to sign a statement acknowledging that you have in fact read all the franchise and disclosure documents
2016-04-18T19:44:56+10:00
It is also important for your accountant to examine and verify the figures in the disclosure document given to you by the franchisor. They will be able to help assess the franchisor’s track record in running the franchise and whether the franchise will be a profitable investment.
DECIDE ON A STRUCTURE Deciding whose name will be on the franchise agreement should not be a last minute decision. It is very important to get your franchise business structure right in the beginning. There are a lot of differences between carrying on a business as an individual, company or trust, so consult with a business planning adviser.
EDUCATE YOURSELF You do not need a business degree to own a franchise, but
you do need to understand the basics of business management to know how to balance your books and to have the skills to run your own business efficiently. There are online courses that prospective franchisees can take, for example the ACCC’s Small Business Education Program. Griffith University also offers a free online Pre-Entry Franchise Education Program which will benefit every franchisee.
APPLY FOR FINANCE Consulting with a bank or broker to make a finance application should be one of the first steps that a prospective franchisee takes because there will be at least a few weeks between making an application and receiving approval (if it’s given). You should be mindful of this when it comes to your timeframe.
You should always consult with your accountant before applying for finance because they will help you understand your investment, returns and the appropriate loan arrangement to suit your circumstances.
READ YOUR FRANCHISE DOCUMENTS The franchise agreement and disclosure document contain all the terms and conditions that will govern the business relationship you are entering into. We cannot stress enough the importance of you reading through these documents yourself before consulting a lawyer. A client who has attempted to read the documents and visits with a list of questions to ask, however silly they may seem, is always preferable to a client not knowing anything about the contents of the documents.
ture r a fu o f y ad as’
Re
? e t a l co t
wee
‘as s
Cho
,QWLPDWH GHVVHUW DQG FRIIHH ORXQJH /RQJ HVWDEOLVKHG 6RXWK $XVWUDOLDQ ,FRQ IDQWDVWLF VWRUHV JURZLQJ 3URYHQ EXVLQHVV PRGHO +DQGPDGH DZDUG ZLQQLQJ SURGXFWV ([FHOOHQW WUDLQLQJ DQG VXSSRUW Master Franchises available 3ULPH ORFDWLRQV DYDLODEOH
FRANCHISING
NOW For more information contact Duncan Powell on 0407 059 603 Email: duncan@cocolat.com.au http://www.cocolat.com.au/franchise-opportunities
MAY/JUN 2016 | 52 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_053
- 50
2016-04-18T19:44:56+10:00
When it comes to signing the franchise agreement, you will need to sign a statement acknowledging that you have in fact read all the franchise and disclosure documents. Reading these documents in the beginning is always better than rushing through them at the last minute.
WRITE DOWN STATEMENTS If a franchisor or their agent makes a statement about the franchise and this information is not included in the franchise documents, then tell your lawyer. When a lawyer goes through the franchise documents with a prospective franchisee, they try to identify the basis for each statement or representation. If there is no foundation for the statement , it must be disclosed before documents are signed. A franchisee who has already read
through their documents before visiting their lawyer will have an idea if something important has not been addressed and this will help resolve any issues a lot more efficiently. We recommend that prospective franchisees write down any representations made by the franchisor. These can then be checked off against the franchise agreement and disclosure document.
DO YOUR DUE DILIGENCE The disclosure document is the starting point for a prospective franchisee to begin their research and enquiries into the viability of the franchise system. You should research as much as you can about the franchise system. The disclosure document will list the details of the system’s franchisees over the past three
years. Speaking to these franchisees is important because they can give you a different perspective to that of the franchisor. A franchise buyer can then get a feel for whether other franchisees are happy with the system, and whether there is any substance to statements made by the franchisor.
PUT DOWN THE PEN! Always visit a lawyer before signing your franchise agreement or lease. We are sometimes approached by prospective franchisees who are about to sign their lease for the franchise premises, but have not yet organised finance or fi nal terms of their franchise agreement. If you sign the lease, but cannot get fi nance or the franchise agreement negotiations fall through you could be left with a very costly problem.
BUILDING, EQUIPPING AND MAINTAINING YOUR BUSINESS
Smarter Products and Service to keep your BUSINESS MOVING
CONSTRUCTION, SUPPLY & SERVICE | FREECALL 1300 720 622 | PO BOX 137, ZILLMERE QLD 4034 MAY/JUN 2016 | 53 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_54
-
54
2016-04-18T16:23:28+10:00
WHAT
BY JANE GARBER-ROSZENWEIG Principal at Gable Lawyers and a specialist in franchising and commercial law
HAPPENS IF MY
FRACHISOR’S
BUSINESS GOES BROKE?
O
ne of the biggest misconceptions held by franchisees is in relation to the franchisor’s insolvency. Many franchisees believe that they will have the right to terminate their franchise agreement if the franchisor goes into liquidation or becomes externally administered, which, in most cases, is incorrect.
Unless the franchisee’s specific franchise agreement includes an express right for the franchisee to terminate the agreement should the franchisor become insolvent, the franchisee will have no right to end their franchise agreement. However such a clause is rare and very unlikely to be found in the franchise agreement. Once the franchisor is in fi nancial trouble, an administrator, receiver and manager or a liquidator is appointed to take control of the franchisor company and can enforce all rights of the franchisor under the franchise agreement against franchisees. Franchisees must clearly understand that an appointment of a liquidator or an administrator does not relieve the franchisee from any of their obligations under the franchise agreement. The MAY/JUN 2016 | 54 | WWW.FRANCHISEBUSINESS.COM.AU
franchisee must continue to pay royalties and meet all their obligations under the franchise agreement because the liquidator can enforce the franchisor’s rights against the franchisee. It is the role of the appointed party to take control of the franchisor’s entity and to try to either find a purchaser to acquire the franchisor’s system or to restructure the franchisor’s operations to trade the franchisor out of insolvency. The franchisor’s financial troubles do not allow the franchisee the ability to transfer its rights under the franchise agreement to a third party or to sell the franchise business, as this can only be done with the consent of the franchisor (or in this instance, the liquidator or other similar entity). It should be noted that franchisor’s insolvency is not
FR1605_55
-
54
2016-04-18T16:23:28+10:00
covered by the Franchising Code of Conduct. What the Code does cover is the franchisor’s ability to terminate the franchise agreement immediately if the franchisee becomes bankrupt or insolvent. Unfortunately, the termination right is not reciprocal to franchisees if the franchisor goes bust. Therefore, the prospect of the franchisor becoming insolvent is often of great concern for many franchisees. Practically, there are three common outcomes from a franchisor’s fi nancial distress, and these depend largely on the extent of the franchisor’s debt and the strength of their brand: 1. external administration or liquidation 2. the sale of the franchisor’s business which would include transfer of the franchise agreements 3. termination of all franchise agreements
Speak with current franchisees within the system to fi nd out if there are any ‘cracks’ in the franchisor’s overall performance, ability to meet their fi nancial obligations and other obligations. Lastly, you will be entitled to request an updated disclosure document on annual basis from the franchisor and review their fi nancial position.
WHAT TO DO IF YOU FRANCHISOR IS INSOLVENT If you find yourself with an insolvent franchisor, take these steps: 1. Cooperate It is in the franchisee’s interests to cooperate with the liquidator or the new purchaser of the franchisor, as there is a high risk of loss of the goodwill in their franchise business and termination of their franchise agreement without any compensation. 2. Act immediately
Although franchisor insolvency is outside the franchisee’s control, there are steps each potential franchisee can take to ensure the risk of their franchisor becoming bankrupt is small.
BEFORE YOU BUY A FRANCHISE
As soon as you become aware that the franchisor is in financial trouble, get in touch with your suppliers and contact the landlord to ensure all the payments are up to date (if these payments go through the franchisor).
Prevention is better than cure. Research the franchisor, their financial position, where their system is vulnerable, what are the risks the franchisor is facing and whether the franchisor is equipped to deal with all such scenarios.
It is also beneficial to contact the external party (such as an administrator or liquidator) who is appointed to the franchisor company to confirm your position and be kept up to date with what transpires in relation to the franchisor’s business.
A disclosure document of the franchisor is a good start, as it should include the franchisor’s last two years’ worth of fi nancials or an independent audit report to confirm the franchisor company is solvent.
It is highly recommended that before signing up to a franchise you seek legal and financial advice, including review of all financial figures by an accountant. It is also prudent to seek legal advice as soon as there is any hint of trouble. MAY/JUN 2016 | 55 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_056
- 56
2016-04-18T19:30:07+10:00
MINING for franchises at the PERTH EXPO
W
ith the decline of the mining boom and subsequent job cuts across the country, Western Australia has not been spared from the aftermath. To mention a few, 30 jobs have been shed in the Long nickel mine near Kambalda, and almost 400 jobs cut with the closure of the Woodie Woodie manganese mine in Pilbara.
MAY/JUN 2016 | 56 | WWW.FRANCHISEBUSINESS.COM.AU
The phenomenon has been on the cards since last year, when a Fairfax Media article foresaw high-cost mines in Western Australia shutting down by July 2015 after the iron ore price plunged. Most iron-ore mines, apart from BHP and Rio, were functioning at a loss. However, a spokesman from Rio stated that those affected employees were being moved to other opportunities or supported in their search for new livelihoods.
FR0115_000_WAT2
-
1
2014-12-04T10:57:23+11:00
TAKE YOUR PICK! 2 business opportunities from Swimart. Work for yourself and be part of the Swimart success story.
Tired of working on the tools or in an office for someone else? If you love the outdoors and have a passion for customer service, you could be running your own successful franchise business with Swimart.
1 Own
2 Own a Swimart
YOUR OWN Swimart Store
Mobile Pool Services business
With over 30 years experience in the industry and a huge network of independently owned stores, we’re Australia’s leading pool and spa specialist. A Swimart franchise offers: - Strong gross profits and low operational costs - Low fixed fees - Comprehensive training - Professional support including marketing, TV advertising and business training.
A brand new business opportunity from Swimart. - In specially selected regional and rural areas - At last, the chance to open a business in the area you love to live in! Get with the strength When you become a Swimart franchisee, you’ll benefit from: - Strong brand awareness and a powerful marketing program including TV advertising hosted by Susie O’Neill - Comprehensive initial and ongoing training through the Swimart Training Academy - Exclusive Territory - The backing of a franchisor with 30 years in the business. - Customer database of pools in your area.
ng “Nothing beats achievi success in the pool” Susie O’Neill
To find out more, call Chris Fitzmaurice on 02 9898 8608
swimartfranchise.com.au SWI2243-R
ISL 207 ADW i dd 1
14/04/14 7 56 AM
FR1605_058
- 58
2016-04-18T22:06:34+10:00
A report released late last year by the Australasian Institute of Mining and Metallurgy (AusIMM), found the unemployment rate for mining professionals had reached a new high of 16.2 percent, a massive increase on the unemployment rate recorded in 2012 at just 1.7 percent. Since then, a report by the Australian Bureau of Statistics finds that full time employment fell by 6,677 persons, and part time employment dropped by 3,418 in Western Australia. Unemployment has thus increased to six percent to February 2016. So where does that leave opportunities in Western Australia? Will franchising bridge the displaced into success?
EXPRESSIONS OF INTEREST AT THE EXPO The Perth Franchising and Business Opportunities expo is set for May 15, with a goldmine of brands to choose from. Your guide to navigating that mine is here.
SNAP-ON TOOLS
ABOVE: SNAP ON TOOLS
Specialising in providing mobile solutions to customer tool and equipment needs, Snap-On tools services the mining community who use the tools.
RIGHT: BAKERS DELIGHT
entrepreneur. She highlights the importance of franchisees understanding how to manage a business as their actions will affect the other franchisees. So who is the ideal franchisee in Western Australia?
Stacey Gilbert, business development manager, says that Western Australia is a growth area with a “long future” as veteran franchisees look to sell.
“There is potential for fresh blood (in WA),” Gilbert explains. “We’re not specifically targeting or ignoring the mining community.”
In her view, the benefits of the franchise model include the comparatively low initial cost of $50,000, the mix of versatility and routine in the role, training programs in Dallas Texas, and relationships developed by tailoring solutions for clients for that “feel good factor.”
She says that Snap-On looks for people who are enthusiastic, have a passion for selling tools, and are trainable. Her advice for potential franchisees is to educate themselves on the business, download the Franchising Code from the ACCC website, and speak to existing franchisees (a requirement of the Snap-On model).
She believes the product is also a stand out. “You can only get a Snap On tool from a Snap On franchisee,” she says. However, she says that the main challenge for franchisees is finding a balance between being a team player and an MAY/JUN 2016 | 58 | WWW.FRANCHISEBUSINESS.COM.AU
HAIRHOUSE WAREHOUSE One of the largest hair care and beauty salon chains in Australia, Hairhouse Warehouse will be exhibiting at the Perth show.
FR1605_059
- 58
2016-04-18T22:06:34+10:00
The franchise model has appeal to mining communities explains Peter Fiasco, national franchising manager. The brand is exhibiting at the Perth Franchising expo “hoping to get more miners on board.” He says that many franchises can be run by a husband and wife team as opposed to husbands working away from home in the mines, allowing families to manage their work/life balance. Fiasco says the main advantage of the franchise is that Perth is largely underrepresented, with six locations in Western Australia compared to 32 in New South Wales. He adds that the brand is part of a strong hair and beauty market, with support and training provided, as well as a support staff member based in Western Australia. Although the main focus for recruitment is Perth, broader Western Australia is also being targeted. “It’s not your typical (franchise) model – it’s a hybrid model. 70 percent retail, 30 percent customer service,” he explains.
He says the challenges of running a franchise in Perth are around locations: higher operating costs (although this is changing), and finding the right sites for stores. Fiasco’s advice for potential franchisees is that they should do their homework on the business, lifestyle, and brand. “Don’t get caught up by the excitement,” he advises. “Look at the facts.”
BAKERS DELIGHT Known for its iconic status as an Australian bakery brand, Bakers Delight has a plan to reach 100 sites in Western Australia in the distant future. Julia Hewagama, franchise recruitment manager, says that the brand seeks “passionate, hardworking and committed individuals who will bring added value to our franchise system” “Our franchisees are from all different walks of life and we are certainly open to recruiting those individuals in the
mining community who are keen to become a part of our network,” she says. “We see the steady population growth across Western Australia as an opportunity for expansion,” Hewagama explains. “As a result of the population growth, we are seeing many new developments across the state which present us with opportunities to establish bakeries and expand our presence. “We are currently seeking to establish new sites in Singleton, Secret Harbour, Lakelands, Mandurah and Byford and we hope to reach 100 bakeries across Western Australia .” In her view, the key benefits of the Bakers Delight franchise model are the proven systems, passionate people, and market position stretching back to 1980. She believes the strength of the systems are catalysts for multi-site operator success. “Over 40 network
percent of our are multi-site
MAY/JUN 2016 | 59 | WWW.FRANCHISEBUSINESS.COM.AU
As a result of the population growth we are seeing many new developments across the state which present us with opportunities to establish bakeries
FR1605_060
- 58
2016-04-18T22:06:34+10:00
operators; many with three or more bakeries,” she says. “We encourage our franchise candidates to visit existing bakeries and talk to franchisees across our network before we meet face to face for our first meeting, talking to the network is a very important part of your due diligence.”
tories in good areas,” he says. The business is targeting the broad community. “We look for self-motivated individuals who are driven to succeed,” explains McLennan.
JIM’S TEST & TAG
“We don’t have any specific industry experienced people that we target, as we provide all of the necessary training required to provide the services that we do.”
Jim’s Test and Tag, part of the Jim’s Group, provides specialist testing and tagging services in workplaces to prevent unnecessary electrical risk. Jason McLennan, Western Australia franchisor, says that there is great potential in the entire state.
He cites the main benefit of the franchise as the diversity of the service provided by the brand which allows for franchisee success. The support systems provided by the network are also advantageous in his view.
“Jim’s Test & Tag has great potential in Western Australia, because by comparison with other states, we don’t have many franchisees and have a lot of vacant terri-
“Jim’s Group has over 40 divisions, so we are a wellknown and respected group. One of the other things is that we are a quality and safety accredited business, which is
a tick in the box for a lot of the medium to large size businesses that we do work for,” he adds. He admits that the challenges that franchisees can have is working with the network but running a business, and following a proven system to allow for success. His advice for potential franchisees is to know the network and seek advice from existing franchisees about the level of support that is available. “Make sure that you find out where your support is located,” he says. “One of the biggest complaints that I hear from other franchise owners is that their support is located in the eastern states, which makes it difficult for them to get proper support.”
JUST CUTS Specialising in hair cutting, without chemical or colouring work, Just Cuts prides itself on being unique and simple. Maree Magdas, corporate marketing manager, highlights the opportunities in Western Australia. “We are looking to open 10 salons in Western Australia in the next few years, so (there is) lots of potential,” she says. And it’s not just Perth, but all of Western Australia that represents opportunity. In her view, the state provides the right demographic, high foot traffic shopping centres, and regional growth through increased population. “The mining community has always been of interest to Just Cuts for our model as it would
AN OPEN LETTER TO ALL FRANCHISORS Dear Franchisor, We assist Franchisors in developing their Franchisees. With over 20 years of professional business coaching and training experience, we know how to help you resolve all the typical challenges. Have you achieved your Professional and Personal Goals this year? If not, why not? Andrew Phillips, CEO
Call today 1800 634 227 www.focalpointintl.com Franchises available BUSINESS INCOME TIME MANAGEMENT GROWTH FREEDOM SALES CULTURE GUARANTEED SUPPORT R.O.I. RESULTS PERSISTANCE STRATEGIC ACHIEVEMENT ASIA MY BUSINESS FOCALPOINT LEADERSHIP AUSTRALIA SERVICE TRAINING INDIA NORTH AMERICA FRANCHISING EUROPE MOTIVATION COACHING MANAGEMENT PRODUCTIVITY
MAY/JUN 2016 | 60 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_061
- 61
2016-04-18T22:25:32+10:00
enable people to continue to work in the mines and have their partner run the business – which is a more ideal lifestyle for them,” explains Magdas.
Magdas says the main challenges are investing more than franchisees can finance, poor due diligence, and not following proven systems in place.
However, ideal franchisees are mum and dad investors or any investors looking for a work/ life balance Magdas says that the benefits of investing in a Just Cuts franchise are that:
“Make sure the franchise fit is right for you and your lifestyle and vice versa,” she advises.
franchisees don’t need to be hairdressers to franchise ✱ franchisees do not have to work in the salon so can continue to work on their career and their business ✱ the network will provided support, training, and a turnkey model Just Cuts is a national, established brand – with more than 26 years’ experience in franchising However, there are challenges that come with being a franchisee.
JUST CUTS
“Do your own research about the franchise system and the areas you are looking to open a salon or kiosk.” “Speak to current franchise owners to get all the advice you need.”
EXPO DETAILS The Franchising & Business Opportunties Expo will be held on the 15th May 2016 at Crown Perth from 10am-5pm. Book free tickets online at www.franchisingexpo.com.au - use the code FRANMAG
Franchises Available Now! B
Home Cleaning
Lawns & Gardens
Commercial Cleaning
Over the last 35 years, V.I.P. has Call V helped over 4,000 people just like you Toda.Iy.P. ! become successful business owners V.I.P. can tailor a package to suit most budgets
13 26 13 viphomeservices.com.au
MAY/JUN 2016 | 61 | WWW.FRANCHISEBUSINESS.COM.AU
eing part of V.I.P. KDV EHHQ WKH ¿ UVW WLPH in our working career that we have been recognised for our abilities. Sandra Howe & Michael Lungwitz, Home Cleaning franchisees
FR0116_000_RFG_LEFT
-
2
2015-12-03T14:14:23+11:00
9L[HPS -VVK .YV\W PZ VɈLYPUN ÄUHUJL VW[PVUZ [V VWLU H Z[VYL ^P[O VUL VM [OLZL ZP_ PJVUPJ (\Z[YHSPHU IYHUKZ à ® +VU\[ 2PUN à ® 4PJOLS»Z 7H[PZZLYPL à ® .SVYPH 1LHU»Z *VɈLLZ à ® *Y\Z[ .V\YTL[ 7PaaH à ® 7PaaH *HWLYZ à ® )Y\TI`»Z )HRLY` -VY H SPTP[LK [PTL VUS` PM `V\ JVU[YPI\[L H TPUPT\T VM [V^HYKZ [OL JVZ[ VM H UL^ Z[VYL 9-. JHU WYV]PKL ÄUHUJL VW[PVUZ ^P[O [OL YLTHPUKLY VM [OL Z[VYL JVZ[Z ^OPJO ^PSS IL YLWH`HISL VUJL `V\ Z[HY[ [YHKPUN :[VYL JVZ[Z YHUNL MYVT KLWLUKPUN VU [OL IYHUK HUK ZPaL VM Z[VYL (KKP[PVUHSS` `V\ ^PSS ULLK [V WYV]PKL `V\Y V^U Z[HY[ \W ^VYRPUN JHWP[HS JVZ[Z YLU[ IHUR N\HYHU[LL HK]PZVY»Z MLLZ PUZ\YHUJL HUK VU NVPUN VWLYH[PVUHS JVZ[Z (J[ UV^ -PUHUJPHS HZZPZ[HUJL PZ VUS` H]HPSHISL MVY H SPTP[LK [PTL >L OH]L HTHaPUN VWWVY[\UP[PLZ H]HPSHISL UH[PVU^PKL
FR0116_000_RFG_R
-
3
2015-12-03T14:20:30+11:00
FR1605_064
- 64
2016-04-18T17:39:22+10:00
SPOTTING A BARGAIN:
budget franchises
MAY/JUN 2016 | 64 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_065
- 64
2016-04-18T17:39:22+10:00
I
n a world that measures success based on efficiency, key performance indicators (KPI), and significant returns on investment (ROI), many potential franchisees are enticed by the budget franchise. That is, a franchise with an initial investment cost of $50,000. Lower overhead costs, family friendly hours, and the choice to work as a sole trader are all part of the benefits, writes Noha Shaheed.
As reported in the 2015-16 Federal Government budget, 96 percent of all Australia’s businesses are small businesses that employ more than 4½ million people and produce over $330 billion of our nation’s economic income annually. But is it beneficial to invest in a budget franchise? Is the ROI exponential and guaranteed? And is experience key to optimising ROI? Tim Kilham, director at financial services firm Lanyon Partners, says budget franchises come with a reduced financial risk should the business be unsuccessful.
FR0316_000_LAV
-
1
2016-02-19T16:08:31+11:00
CREATE YOUR FUTURE OFFERING YOU AN AFFORDABLE CHANCE TO OWN A LAVA COFFEE FRANCHISE
‘‘
‘‘
Being my own boss is the best decision I’ve ever made
Enquire with us today! P:
0404 755 759
E:
sales@lavacoffee.com.au
W: www.lavacoffee.com.au
FR1605_067
- 67
2016-04-18T22:06:37+10:00
However, Kilham advises potential franchises to still work hard and be skilled at their job even if they opt for a budget franchise.
“Most franchise agreements are very similar, regardless of investment.”
“Generally, ROI for budget franchises depends on the labour you put in,” says Kilham.
“However, depending on total fees payable during the term of such franchise, it might be cheaper to get out of than other nonbudget type franchises.”
Potential franchisees should do their research and know exactly what they’re getting into, and know the risks associated with the industry. In terms of accessing finance for budget franchises, Kilham says “There’s a real gap in finance for small franchises.” Without bank accreditation, it is almost impossible to get finance for investing in smaller franchises, unless appropriate security is provided. This means that the franchise buyer will need to finance the initial investment themselves. Jane Garber-Rosenzweig, principal at Gable Lawyers, says that although investing in a budget franchise would be less risk fi nancially, in all other respects, an investment is an investment. “Thorough due diligence should be performed in all cases,” says Garber-Rosenzweig.
But there are benefits.
“Most of the budget franchises are mobile so issues such as conditions in the lease, tenure, (and) increase in rent are generally not relevant,” she explains. Her advice for potential franchisees considering joining a budget franchise is to do their research on the total investment required over time as well as the reputation of the franchisor. “Check the total investment required over the term of the franchise, as it might seem budget to enter but end up quite costly over the course of it.” Garber-Rosenzweig also advises potential franchisees to check the reputation of the franchisor and how they compare to other similar budget franchises or even non franchised businesses of the same type.
OVERVIEW So why invest in a budget franchise?
She adds that exiting a budget franchise is not necessarily simpler.
ity are a green light. For others, it’s a calculated decision to optimise ROI. Lower cost means lower risk.
For some, the lifestyle benefits and flexibilMAY/JUN 2016 | 67 | WWW.FRANCHISEBUSINESS.COM.AU
But how do franchisees go about capitalising on all of the above? Franchising spoke to various budget franchises in a range of industries and found common trending themes: ✱ The franchisee is required to be proactive in developing the business and developing client relationships. ✱ The franchisee needs to be skilled in the specific industry, e.g. customer service. ✱ Following a proven system is also advised as a fruitful approach to success.
NARELLAN POOLS: $20,000$50,000 (NEW TERRITORIES) Narellan Pools specialises in the business of selling ingrown fibreglass swimming pools and has been operating for more than 40 years. Peter Baily, chief operating officer, discusses the benefits of joining in a franchise and the importance of franchisees working to maximise ROI. Franchisees at Narellan Pools have “very low fixed costs” with a scalable volume, which can begin as a mobile business to then become a shopfront with employees. Franchisees can work with a partner, but once the scale of the business increases, it is preferable to hire employees.
FR1605_068
- 67
2016-04-18T22:06:37+10:00
Baily says the franchise network is able to provide support for franchisees with relatively lower costs through technologysavvy training tools, communications hubs, and support systems.
ment of sharing and communication, where franchisees can “really manage their costs.”
“We’re less concerned about initial costs because we are more concerned with the long term,” he explains. Baily also highlights the potential of territory as a major benefit for franchisees.
Providing end to end working capital and sales finance solutions to small and medium sized businesses, First Class Capital prides itself on the network support it delivered to franchisees. Greg Prussia, national franchise recruitment manager, explains how the franchise model provides for franchisees with a low level investment.
At Narellan Pools, it is a “digital marketing environment” which boasts social media and CRM with the goal of having the best platforms. “A lot of (client) leads come from digital leads,” he explains. ROI is another advantage, says Baily, which comes as a result of a lower fee base and great margins. A wide range of quality product offering is also another perk in his view. However, as the pool industry is a cyclical one, franchisees need to work hard during the seasonal period and manage changes in demand. Baily’s advice for potential franchisees is to be able to manage people, prospects, and clients, be all over the numbers, and be visible in the community by being proactive.
SMARTLINE: UP TO $20,000 Providing mortgage broking advice for clients, Smartline offers advice for loans, financing or refinancing, and provide money-saving advice and support.
FIRST CLASS CAPITAL: $40,000+ GST
Prussia says that there are “no costs of goods” after the initial investment, apart from an advertising fee. Nonetheless, there is an on field support team available for support, as well as a third party online platform for franchise specific questions for management. “Our clients are any Aussie company with cashflow,” he says. This is why he believes it’s important for franchisees to get their foot in the door and “keep their clients engaged". “Inbound leads from national advertising are the cream on the cake,” he adds. The general age bracket of franchisees is those with a professional background in their 40s. Prussia's advice for potential franchisees considering purchasing a budget franchise is to follow the guidance and training, work the numbers, and be pro-active with clients.
KUBARZ: STARTING FROM $39,950
Matt Fitzpatrick, national recruitment manager, says even though there are no monthly fees, “support is (available) no matter what.”
Kubarz Beverage Catering, which provides mobile bar and beverage services, champions support and flexibility for franchisees.
At Smartline, initial costs cover setup and initial training, but ongoing support is part of commissions from banks for loans. These commissions cover office and marketing costs. Business coaching is also provided for the first six months.
Drew Davies, director at Kubarz, says that providing support for franchisees after a lower initial investment is about balance. Franchisees are encouraged to market their own business locally within territories, but national marketing support such as online strategies, social media marketing, larger scale advertising, and new initiatives are also provided by the network.
The franchise attracts the older demographic above 45 years. The “return on investment is phenomenal compared to most franchise models,” says Fitzpatrick. He adds that the benefits of the model are low overheads, a network with an environ-
“We don’t rule with an iron fist,” Davies explains. “Although our systems are there to be followed, because they work, we encourage franchisees to think outside the box and try
MAY/JUN 2016 | 68 | WWW.FRANCHISEBUSINESS.COM.AU
FR0316_000_DOD
-
1
2016-02-19T15:35:18+11:00
FR1605_070
- 67
2016-04-18T22:06:37+10:00
different marketing and business development strategies …that might be specific to their own local area. “Being a business owner isn’t for everyone,” he says. “We get a range of potential franchisee applicants, we have recruited younger people who tend to have more of an event and or hospitality background” to those with an ex-corporate background “who bring a wealth of lifetime and corporate experience to the table”. Davies’ advice for potential franchisees considering budget franchises is to ensure that the operations manual is detailed, and most importantly, to discuss with franchisors what support systems are available.
KUMON: UP TO $20,000 Specialising in providing an after-school learning programme from the largest international organisations, Kumon Australia and New Zealand offers franchisees training and support nurtured by 31 years of expertise.
“Our best practice training and support allows us to assign a personal development consultant to each franchisee for their duration at Kumon,” says Alexander Cork, spokeperson for Kumon Australia & New Zealand. “We are also able to keep costs down for franchisees as our product (the Kumon worksheets) is provided to franchisees free of cost.” “Never having to purchase products or pay for delivery means that franchisees always have the required materials to run their business.” Kumon franchisees can enjoy greater flexibility in their working hours, and are supported by a like-minded network of instructors and company staff. However, Cork explains that the franchisee needs to be skilled in managing client relationships and provide excellence customer service. “Franchising is a highly interdependent relationship between people, and at times there are differing views to reconcile.”
Although there is a trend for franchisees to have tertiary degrees and be aged 30+, Cork says the demographic is wide-ranging. “Our franchisees come from a wide range of backgrounds. Some franchisees have experience running a business, while others have had a teaching or corporate career. All have at least an undergraduate degree.” His advice for potential franchisees is to maximise quality customer service and franchisee reputation. “If you want to get the most out of your investment, focus on providing the best service and quality to generate word of mouth. It’s also important to follow the training and be prepared to undertake ongoing learning.”
FASTWAY: UNDER $50,000 Richard Thame, CEO at Fastway Couriers Australia, says that mobile technology and strong communication allows for the franchisor to support franchisees within a budget. Providing a low cost courier service
“Seafood remains the #1 take-away food item sold by independent take-aways in Australia.”
Join our franchise family!
http://www.famousfish.com.au/franchising.php MAY/JUN 2016 | 70 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_071
- 67
2016-04-18T22:06:37+10:00
delivering locally and nationally, Fastway Couriers supports franchisees with online tools for training and communication. “Our field managers are in the field every day,” says Thame. He believes that the benefits of the franchise include the affordable entry, solid training and support, access to a proven system and growing industry. However, there are challenges to running a franchise.
GROUTPRO: $20,000 - $50,000 GroutPro specialises in restoration of tiles and grout which includes cleaning, repairs, maintenance and enhancement of tiles and natural stone surfaces. Geoff Biddle, managing director, says that the franchise is able to support franchisees by training them from the outset so “they can hit the ground running quickly” and reduce the number of technical questions received.
“It’s not a job, it’s a business,” says Thame. “It’s okay to ask for help.”
Franchisees also have access to an internal forum to share advice and support each other.
In his view, for those who have always been an employee, there is a transition period and plenty of on-the-job learning. The average age bracket of Fastway franchisees is between 30 and 45 years.
“The biggest drawcard is the internal private forum for franchisees. This is used prolifically by all franchisees where they actively ask for advice and give advice and support,” says Biddle.
Thame’s advice for potential franchisees is to do their research, understand the demand in the market for the product, and ensure strong communication is upheld between franchisee and franchisor.
He adds that GroutPro also allows for franchisees to access a comprehensive portal with information on systems, forms, marketing tools and operational manuals.
Xpresso Mobile Cafés operate in areas nationally where there are little to no fixed location café options for the workforce in commercial and light industrial precincts. We supply premium Di Bella Coffee products – both hot and cold. Frappés, energy drinks, cold brew coffee products, bottles of water and food options such as gourmet cookies that are designed to compliment the enjoyment of an awesome espresso coffee. An Xpresso Mobile Café is perfect for corporate and school/ community events. Ask us about our unique school fundraising programs! We also stock Di Bella Coffee specialty capsules that fit the ‘Nespresso’ pod machine. Both of these services are unique to Australia!
MAY/JUN 2016 | 71 | WWW.FRANCHISEBUSINESS.COM.AU
He says that the advantage of being a franchisee is the access to the specialist service in the Australian home renovation industry with high demand and minimal competitors. “GroutPro’s business systems are designed to give everyday, ordinary people the skills and training they will need to be the owner operators of their own high profit margin business, with no previous experience, special skills or costly overheads,” says Biddle. The earning potential is advantageous in his view, as well as the benefits of customer referrals in creating business and rewarding work. However, running a business is not always smooth. “The success of any franchise is based on the effectiveness of the systems in place and the quality of the franchisees,” he explains. “(What’s) important is that they (franchisees) have drive, good people skills, good time management, and they are good at following systems.”
FR1605_072
- 72
2016-04-18T19:01:53+10:00
THE
changing face OF FAST FOOD
MAY/JUN 2016 | 72 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_073
- 72
2016-04-18T19:01:53+10:00
T
ake-away, a quick bite, and a cheap feed – fast food is a continually developing industry and a popular choice for the franchise buyer. Here we look at industry statistics, some of the less obvious and new brands in the market, and share tips for drive-through sites.
According to an IBIS World report, the fast food industry is forecast to rise by 2.4 percent annualised over the five years through 2015-16. Industry revenue is forecast to grow over 2015-16, rising by 0.8 percent to total $14.8 billion. Furthermore, revenue is forecast to grow by 0.6 percent annualised over the next five years, to reach $15.3 billion in 2020-21. To date, however, industry demand has fluctuated as a result of consumer awareness about the nutritional content of fast food and demand for healthier options. Industry operators have had to accommodate for these demands by introducing a range of healthier, premium choices with less fat, sugar and salt. This change in consumer preferences has also led to an influx of new operators offering higher quality fast-food options. MAY/JUN 2016 | 73 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_074
- 72
2016-04-18T19:01:53+10:00
NOODLEBOX
As a result, traditional fast food has dropped as a share of revenue, while revenue from premium and healthy categories has increased. Competition among industry players remains fierce, as operators compete for market share. Players in the industry will optimise market share by continually evolving and adapting their menu offerings to cater for the healthy consumer, as well as the demand for premium, quality ingredients. The industry is also forecast to offer new online and mobile app ordering systems. These changes are expected to make ordering and delivery more appealing to younger demographics.
THE NOODLE BUSINESS AS THE NEW FAST FOOD As consumer demands for fresh ingredients and healthy meals become more prevalent in the quick service restaurant business, noodle franchises have certainly fit the bill. Night noodle markets and weekend food festivals tend to be an opportunity for noodle franchises that can access potential guests and expose brands to the local community alongside a range of other outlets. So how do franchisees stand out in a sea of competitors?
NOODLEBOX With its recent acquisition of Wokinabox in December 2015 and trading under Asian Restaurant Concepts, Noodlebox is one of the leading Australian noodle-based quick service restaurants. CEO Ian Martin believes that the advantages of the Noodlebox franchise is the higher small business success rate due to a proven system, established brand, network support, and franchisee ability to leverage benefits from scale compared to independent operators. Franchisees need to have a “passion for providing a guest experience (with a) balance between entrepreneurial spirit and being part of a system,” says Martin. He says that the common challenges faced by franchisees are managing that balance, understanding the market, and maintaining a team dynamic with the brand owner. As the ideal location for Noodlebox franchises are in smaller centres, the main competitors are local independent operators, all vying for their share of customers. Although the industry is competitive, consumers flock to the brand due to its reputation. “Noodle Box has been serving our great Noodle Box meals for 20 years this year and many of our guests have grown up MAY/JUN 2016 | 74 | WWW.FRANCHISEBUSINESS.COM.AU
with the brand,” explains Martin. “The Noodle Box brand is important as it provides our guests with the confidence that the same great experience will be consistency delivered by friendly well trained team members in all restaurants across the country whether in Devonport, Townsville or Perth.” Martin says that locations are “deliberately not in New South Wales” as part of selecting a strategically ideal site with ample parking, a variety of other restaurants, away from food courts and shopping centres. And in a world where restaurants must evolve to cater for changing dietary requirements, Noodlebox is no exception. “One of the strengths of Noodle Box is the near endless possibilities that our “Build Your Own” menu offers,” says Martin. “For many years guests have enjoyed the flexibility to choose from a variety of noodles or rice and propriety sauces and fresh vegetables and condiments to create a meal just right for them.” His advice for potential franchisees considering joining the fast food industry is to "select bigger brands and stick to proven systems set by the network," and to understand their specific business goals and timeframe.
FR0915_000_GLO
-
CMAR0107-FRANCHISE-MAG-FP-AD-FA.indd 1
1
2015-09-09T10:20:26+10:00
4/09/2015 2:14 pm
FR0715_000_YOU
-
1
2015-06-24T11:17:38+10:00
Grow your business through property investment with Property Club Franchises offered for the first time • nearly 5,000 Property Millionaires Club members and counting “Property Club is wholly dedicated to providing Australians with the opportunity of a better life through property investment. To celebrate 21 years in property, we are offering a limited number of Property Club franchises. This is a unique offer to be part of an organisation that has over 80,000 members and we’ve helped more people create million dollar property portfolios than any other property investment organisation with almost 5000 members now in our Property Millionaires Club. Take advantage of this exclusive opportunity by contacting us today.”
TRY E BEFOR YOU BUY
Kevin Young Founder and Director of Property Club
Visit www.propertyclub.com.au/
property-club-business-opportunities/ Call 1300 663 282 FRANCHISE FULL - New file.indd 1
3/06/15 4:30 PM
FR1605_077
- 72
2016-04-18T19:01:53+10:00
“Everyone should have an exit strategy,” adds Martin.
NEW BITES IN THE BURGER MARKET
Although expansion and multi-franchising is encouraged, in his view, the business doesn’t grow for the sake of growing.
An all-time Aussie favourite, the humble burger has become a little more showy over recent years as consumers demand more from their meat patties. The market has responded and become more creative and customer-focused with menus. That’s true of stalwarts like McDonald’s and the newbies in Australia’s fast food arena.
“We have great single restaurant franchise partners who are very content successfully running their restaurant and that’s great.” RED ROCK NOODLE BAR
CARL’S JR. Positioning itself as the “one-stop-shop for tasty, quick and fresh Asian style dishes”, Red Rock Noodle Bar thrives in regional areas (particularly in Queensland) where local franchisees can leverage local foodies. Phil Colburn, managing director, says that the advantages of franchising in the noodle business are that it is healthy, fresh, new, and different.
Carl’s Jr. opened its first restaurant in Australia, in Bateau Bay, earlier this year with franchisee, BKG Group. This marked the beginning of an agreement between BKG and CKE to develop and open 10 new Carl’s Jr. restaurants in central, mid and northern New South Wales coasts. Outlets will also be unveiled at the Brisbane airport in June 2016 and the Hobart airport in late 2016.
In an industry where casual dining brands appeal to increasing consumer demands for food quality, Colburn says that franchisees need to be customer focused, understand business basics, and be hands on.
This is just the tip of the burger business for this American import. The high profile brand sees potential for more than 300 Carl’s Jr. stores across Australia within the next 10 years.
“There are different challenges depending on who (the franchisee is),” explains Colburn. For some franchisees, the local marketing or managing the books can be challenging.
Behind the burger business is CKE Restaurants Inc, a firm that owns, operates and franchises fast food chains including Hardee’s, Green Burrito and Red Burrito.
His advice for potential franchisees interested in the fast food industry is to do their homework and due diligence and keep lines of communication open with the franchisor.
There is a lot of momentum for expansion internationally – in fact Carl’s Jr. recently reached quite a milestone with the opening of its 700th international restaurant. Add to this development commitments for 1000 new restaurants in both new and existing markets and it’s clear this brand is on the move.
“Have a passion for it and know the food,” he adds. “Customers can tell.”
MAY/JUN 2016 | 77 | WWW.FRANCHISEBUSINESS.COM.AU
KEY SUCCESS FACTORS IN THE FAST FOOD INDUSTRY ACCORDING TO IBISWORLD Access to a multi-skilled and flexible workforce Flexibility in working hours to meet demand for evening shifts and weekend work are key to success, as well as hiring skilled staff to manage consumer traffic. Proximity to key markets Fast-food retailers benefit from being located in high-foot traffic areas which expose them to impulse shoppers. Ability to control stock on hand Operators require tight stock control systems to achieve minimal operating costs and to keep produce fresh. Ability to alter goods and services produced in favour of market conditions. Operators require the fl exibility to evolve menus to meet changing food demands. Ability to franchise operations. Franchised brands allow for market exposure and brand awareness provided model. Easy access for clients Fast-food operators should offer ample parking and easy store access, making the fast-food experience as convenient as possible.
FR1605_078
- 78
2016-04-18T22:12:17+10:00
NED LYERLY, RIGHT, HELPS OPEN THE BATEAU BAY CARL'S JR. STORE
Ned Lyerly, president, international at CKE, says “We are currently in 38 countries representing 20 percent of the overall CKE system. In the last six years alone, we opened in 22 new markets and are on track to continue this rapid expansion throughout 2016 and beyond. “We believe the franchise model is right for international markets for several reasons. Local ownership, local presence and local networks in business and governmental circles are often invaluable components to a successful venture, and the local operating environment in their home country better than a foreign entity. “Often our franchise partners have a preestablished infrastructure in their home markets that can be effectively leveraged to support the growth of a restaurant system.” So why is now a good time to enter this highly competitive marketplace, particularly when the trend for healthier eating is picking up pace? “Carl’s Jr. fills a gap in the Australian market for a premium quality burger experience at the price and convenience of fast food. The bigger, better burger category has been quickly growing across the industry and we certainly fit perfectly into
this category,” says Lyerly. “Because we make our food fresh to order, we can customise the order to meet specific dietary concerns of our customers.
order and delivered to the table, and free drink refills for guests, innovative menu items such as the Portobello Mushroom Burger, and a superior restaurant setting with contemporary, comfortable California themed décor set it apart, he adds.
“In regard to healthier eating, Carl’s Jr. has offered better-for-you options for several years. Worldwide we offer a selection of Alternate Menu Options that allow guests to customise their meals to fit their lifestyle.”
For the franchisee, Lindsay Brennan, general manager of the BKG Group, it’s a big thrill to be heading up the launch.
Customers can choose Veg It (lose the meat, keep the fresh options), Trim It (featuring low calorie / low fat options), Gluten Free It (remove the bun, remove the glutens) or Low Carb It (lose the bun for a lettuce wrap).
“Since opening day we’ve been experiencing continuous foot traffic and ongoing success, which has surpassed our projections. Aussies have fully embraced the brand so much so that our restaurant ranks in the top five of all CKE restaurant openings based on the first 30 day sales – we couldn’t be more pleased by all of this success!
What’s the point of difference for the brand? “Our value proposition for consumers is based on offering authentic, premium quality chargrilled burgers at a price that consumers are willing to pay for better quality, better service and better hospitality in a premium QSR environment,” he says. It isn’t just the premium Angus beef and freshly baked buns that suit Australians’ taste for better quality, he says. First class service with products that are made-toMAY/JUN 2016 | 78 | WWW.FRANCHISEBUSINESS.COM.AU
“We approached the opening on both a local and global level. First, we understood that the brand had solid global awareness thanks to its high quality food and highly popular advertising campaigns. So to ensure that our opening would be a success on a local level as well, we worked with a local celebrity to re-create one of the brand’s famous commercials, which helped to further drive awareness here in Australia.” That has certainly got the franchise up
FR0316_000_INX
-
1
2016-02-19T16:08:10+11:00
UNLOCK YOUR POTENTIAL WITH THE INXPRESS FRANCHISE MODEL
InXpress delivers customers with international and national freight advantages to gain a competitive edge. As an authorised sales partner for world class carrier DHL and domestic partner for TNT, Startrack and Toll, InXpress offers customers a complete suite of courier and freight solutions which deliver outstanding value and savings. This coupled with local personalised services from local InXpress franchise owners, makes InXpress the clear choice for leading import and export business customers.
AS AN INXPRESS FRANCHISEE YOU CAN GROW YOUR BUSINESS WITH International InXpress Network operating for over 16 years Proven Business Model Intensive and ongoing training and support Low entry costs A business designed to suit your lifestyle Own your own business, generate residual income and secure your financial future with an InXpress Franchise.
For more information on joining the InXpress Franchising Team call David on 0412 692 052
OPERATING FOR OVER
16 YEARS in 13 countries
NATIONAL AFFILIATIONS
OUR AWARDS
Shaun Birley, Franchisee Sydney
G L O B A L
R E A C H
Phone: 1300 469 773
W I T H
A
P E R S O N A L
email: sales.au@inxpress.com
T O U C H
www.inxpress.com.au
FR0316_000_COFF
-
4
2016-02-23T08:19:23+11:00
THE COFFEE CLUB IS ONE OF AUSTRALIA’S LEADING FRANCHISE BUSINESSES, WITH OVER 25 YEARS EXPERIENCE IN DELIVERING HIGH
INDUSTRY STANDARDS FOR OUR FRANCHISEES AND CUSTOMERS. We have more than 200 franchisees who own and operate over 300 stores across Australia. An opportunity to “Join The Club” provides not only a robust business opportunity, but also a chance to own a piece of a strong brand entity within a supportive network. With a solid pipeline of new stores, The Coffee Club is always on the lookout for the right franchisees to work with us as we pursue our Vision. In addition to our new franchisees, we are proud to have some of the longest standing franchisees in the industry with many of our Franchise Business Partners celebrating 10, 15 and even 18 years with our brand. The best part about The Coffee Club franchising model is our stores are locally owned and operated by passionate people who are determined to cater to the needs of their community. Once your store opens, you’ll also have a personal Business Development Manager to guide you through your business venture. As both mentor and coach, your Business Development Manager will work with you to develop a business plan to help you achieve growth and success.
To find out more contact Matt Vidler on 0417 639 837 or email matt.vidler@coffeeclub.com.au
FR1605_081
- 72
2016-04-18T19:01:53+10:00
OPORTO'S NEW SMALL FORMAT STORE
and running, but how important is brand awareness in a new market? Lyerly believes brand awareness plays a pivotal role in creating and maintaining success in a new market. “We are fortunate that Carl’s Jr. already has strong global recognition thanks to our bold, edgy and youthful advertising and marketing." Over time the brand has garnered 100,000 social shares and almost 100 million views. As Carl’s Jr. finds its niche in the competitive fast food sector, market share will come from both existing brands, and from growing the customer base. “We will generate market share from already existing quick service restaurants (QSRs) in the market thanks to our key competitive differentiators noted above. And at the same time, we will generate market share by growing the bigger, better burger category.” Franchisees investing in this business can expect best-in-class franchise support that includes localised training, and access to a supply chain and distribution system for maximum efficiency, he says. “We work closely with our franchisees on developing marketing programs that generate awareness and attention for our celebrated brand, while also ensuring that they resonate locally.”
SKINNYS GRILL There’s another new name in the burger scene but this one is home-grown. And the key to its focus is in the name. Skinnys Grill has bounced into the casual dining business with a big appetite for expansion. Boasting a low carb concept with flavour, this is a casual dining licensed eatery. The brand is aimed at a broad market with its selection of burgers, pasta, pizza, and grilled meals. There are also gluten free, vegan and vegetarian options available. James McGovern, CEO and founder, says that Skinnys Grill is looking to boost franchise numbers to “at least 20 sites around Sydney in the next 12 months”. Long term it hopes to expand in Queensland (Brisbane and the Gold Coast), and Melbourne. “We’re targeting a mass market,” said McGovern. “Young families, mums and bubs, and the health (conscious) market as well.” Skinnys Grill also owns the intellectual property for its low carb recipes, which drives price point and allows for higher margins. It also means that competitors are not able to replicate the product. The buy-in cost for a franchise is from $200,000 to $400,000, with eight percent royalty fees. Restaurants are typically 250 MAY/JUN 2016 | 81 | WWW.FRANCHISEBUSINESS.COM.AU
sq m, and are ideally located on high street restaurant strips. The franchise model includes full support from the brand’s head office for operations, financial, and marketing assistance. Fund assistance is available, as well as a four week training period. Skinnys Grill also works with the state government to offer franchisees an independent advisor for general business counsel. McGovern has worked as a franchisee in the past, and he’s brought this experience to the franchise model he developed alongside fellow executives at Skinnys Grill.
A TASTE FOR CHICKEN Looking to buy a food franchise but want to invest in a small scale business? Franchise chicken chain Oporto has unveiled its first ‘pequino’ (Portuguese for small) format store. This is the first of many to be rolled out in inner city locations across the country, and marks a big step forward in the modernisation of the brand. Craig Tozer, Oporto CEO, says “This is an extremely exciting time for Oporto. This design is fresh and modern, and is exactly where we need to be. To bring the kitchen front and centre for customers to view was critical in the design as we want to highlight our use of fresh produce and cooking methods. “This new small format paves the way
FR1605_082
-
72
2016-04-18T19:01:53+10:00
for future restaurants to open in inner city locations where real estate is limited. Exciting times indeed.” The restaurant in Sydney, Oporto Surry Hills, is just 50sqm and laid out using environmentally friendly materials. Working together the construction and operations teams have integrated the fully functioning open kitchen with grill, oven and fryers along with refrigeration, counter space and seating for 10 people. Anthony Shina, general manager design and construction for Oporto, was integral in bringing the project to life. “Working with such a small space had its challenges however with an amazing team we have achieved all we set out to do. Fresh modern design with an open kitchen to showcase freshly prepared food. The result is a distinctive shift from the traditional QSR fast food design to a more modern, warm, premium and urban environment.” The menu has also been streamlined, focused on what Oporto is best-known
for including flame grilled Portugeuse chickens and the famous Bondi Burger.
TOP 5 THINGS TO CONSIDER IN A FAST FOOD DRIVE-THROUGH LOCATION
As part of its brand refresh, the decision by Oporto to return to the Original Chilli Sauce developed by founder Antonio Cerqueira has been well received.
One sign of today's fast food scene is the diversity of models within one brand, including drive-throughs. More and more QSR brands are choosing to add this to their franchise offer.
Cerqueira was invited back to help realign the brand. “We started a bit cheeky and lost it. We need to be ourselves and not change just because the business is growing,” he says.
When you buy a fast food drive through franchise you need to be sure the location is just right. So what should you be looking for? Peter Buckingham of Spectrum Analysis, has some suggestions:
The flashback to the early days of this popular chicken brand has reignited the sense of culture and pride. Among the actions taken by the new management, a slick design for the restaurants and a relaxed, funky uniform reflecting a more youthful, less corporate attitude.
The free standing with drive through (FSDT) model is the very high investment made by major brands such as McDonalds, KFC and Hungry Jacks; their aim to achieve more than 50 percent of their turnover through the drive through operation.
Authenticity has been at the heart of the new-look Oporto as the brand celebrates its 30th year.
1. TRAFFIC Tozer says the business also has an eye on simplifying processes, and importantly, improving franchisee returns.
How many vehicles pass the store each day? Traffic measurement can be done in many
• Community and Aged are is a MULTI-BILLION DOLLAR INDUSTRY • Gov reforms have created unprecedented FOR-PROFIT OPPORTUNITIES WHAT YOU NEED TO KNOW
85+ POPULATION
• Australia is growing faster than at any other time in history and the population is living longer. Demographics support 50 years of future industry growth. • 3.5m persons are currently aged over 65 in Australia, circa 14% of total population however, this number is set to exceed 20% of the population by 2045. One in ten persons over 65 will have been diagnosed with dementia.
1984 120,862
• The number of people aged over 85 is predicted to increase by 30% in the next 10 years. 85% of these persons will require some level of care and three in ten of these persons will have been diagnosed with dementia and require long-term care.
FRANCHISING NOW!
www.justbettercare.com/franchise-opportunities (02) 9934 9950 MAY/JUN 2016 | 82 | WWW.FRANCHISEBUSINESS.COM.AU
TODAY 455,390 4x as many
2044 1,655,997 14x as many
2024 601,815 5x as many
FR1605_083
- 72
2016-04-18T19:01:53+10:00
ways, using information from the State Roads department, from local councils or standing outside with a counter.
counter length, outside seating, drivethrough windows and queueing, access and parking.
We also suggest looking at www. zenithtraffic.com.au, a new website set up to give consistent measurement or estimates in all five major capital cities. The normal measurement you are looking for is 24 hour, both directions, weekday traffic counts.
4. DEMOGRAPHICS
variables to see which areas are best for what you are selling. This is a service provided by companies with geographic information systems. 5. COMPETITION
It is no good having a store selling one product range without customers in the area. While companies like ours can provide detailed demographic information, you can always look up any area in Australia yourself on the ABS website, www.abs.gov.au and then look for Census Data, and then Quikstats. You can put in a postcode or suburb, and find out from the Census 2011 about that area.
2. VISIBILITY You can have a great store with plenty of passing traffic, but the outlet still needs to be seen, preferably from far enough away so the drivers can make a decision to turn in. Visibility of signage and the building both contribute to a highly visible FSDT.
Think in terms of what your franchise is selling, the pricing point and who you are selling to. If your average meal price point is very high, then selling into low socio economic areas is probably less attractive than high socio economic areas. If you are selling kids’ meals and ice cream, then young families would be the best target audience.
3. SITE SUITABILITY What physical items can the site offer? There can be huge variation from small stores with 20 seats to the more modern 100 seat restaurant. If leasing an existing store, consider the number of tables,
A target market index is one way of putting together two or three demographic
In quick service restaurants we have seen the advent of what we call a cluster: a group of three or four QSRs that may share common access and parking, and their success is partly due to the variety on offer for the consumer. The average rental may be slightly lower than a pure standalone too, as the site efficiency is better with shared parking and multiple access points. Our view is that it is a “friend and foe” situation, where the others in the cluster actually work for each other to bring in a greater amount of business than the sum of the individuals would bring in. On the other hand being a single store, say 1km away from a strong cluster is detrimental, as a single store does not have the attraction of a cluster. In dollar terms, we estimate each additional store in the cluster adds about $800 in weekly sales.
FRANCHISE OPPORTUNITY Join the world’s largest car rental company and create a local business with a global presence. Redspot is currently offering to eligible, committed individuals an exciting business opportunity. We are seeking the right people to become Redspot franchisees – offering the Redspot, Enterprise, National and Alamo brands in all states and territories across Australia.
FOR MORE INFORMATION Redspot & Enterprise group have 9,000 global locations, running 1.7 million vehicles with a turnover of US$19 billion.
MAY/JUN 2016 | 83 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_084
- 84
2016-04-18T19:21:37+10:00
Q&A with
ELLA BACHÉ
E
stablished in Paris in 1938, Ella Baché is one of the leading skincare and beauty franchises in Australia.
Franchise Business spoke to two brand new Ella Baché franchisees about to open up shop; Janice Liu (Emporium Melbourne, Victoria), and Jenny Gibson (Springfield, Queensland).
JANICE LIU, ELLA BACHÉ EMPORIUM Q. WHAT ARE THE BEST THINGS ABOUT BECOMING AN ELLA BACHÉ FRANCHISEE? A. Ella Baché has established and proven itself to be the leading beauty franchise in Australia with great brand awareness and a good franchisee support system. Q. HOW IMPORTANT IS DEVELOPING CLIENT RELATIONSHIPS IN BEING A FRANCHISEE? A. I believe business success is derived from building a loyal client base and continuously developing client satisfaction.
Q. WHAT ADVICE WOULD YOU GIVE TO A POTENTIAL FRANCHISEE? A. Do your research and find what industry you are very passionate about. Once you decide what to do, be prepared to take whatever action is required to achieve success.
JENNY GIBSON, ELLA BACHÉ SPRINGFIELD Q. WHAT ARE THE BEST THINGS ABOUT BECOMING AN ELLA BACHÉ FRANCHISEE? The support and advice that comes with being part of a larger family – this hasn’t just been limited to assistance from head office staff, but also includes other franchisees that have been willing to share their own experiences to help with the running of your own franchise.
Q. WHAT ARE SOME CHALLENGES YOU FACE AS A FRANCHISEE?
Q. HOW IMPORTANT IS DEVELOPING CLIENT RELATIONSHIPS IN BEING A FRANCHISEE?
A. My greatest challenge with taking up an Ella Baché franchise is that I have never worked in beauty industry. I have a lot to learn about the products and industry.
A. It is extremely important. Just because you have a known brand doesn’t mean the foot traffic will automatically follow. Building client relationships and rapport
MAY/JUN 2016 | 84 | WWW.FRANCHISEBUSINESS.COM.AU
within your local community is going to be the single most important factor in your own success. Q. WHAT ARE SOME CHALLENGES YOU FACE AS A FRANCHISEE? A. Unlike an independent business, there is another interested party that needs to be accommodated. This includes reporting to the franchisor and meeting with them regularly to ensure you are representing the brand appropriately. So in addition to the time spent running your own business, there needs to be time spent meeting the requirements of the franchisor. Q. WHAT ADVICE WOULD YOU GIVE TO A POTENTIAL FRANCHISEE? A. Do your research, as not all franchises are the same. Look at the costs you are required to pay the franchisor and the support you’ll receive. Ensure you are able to work within the standards they set for their brand and the existing processes they have in place across their franchise network. And finally, talk to other franchisees about their experiences before you sign up.
FR0316_000_MIL
-
1
2016-02-19T16:20:10+11:00
RUN Milestone Mobile AND WITNESS ANY MOMENT WHEREVER YOU ARE
POSSIBLE STARTS HERE
Instant access to your video surveillance from your smartphone or tablet Compatible with all XProtectŽ video management software (VMS) and the Milestone Husky™ NVR series, the free Milestone Mobile app gives you secure access to your video surveillance system anytime, anywhere. Available in 27 languages, the app lets you conveniently view live video, as well as playback and export footage from your smart device. Discover how to expand your surveillance and security system capabilities with XProtect video management software at milestonesys.com
Milestone Systems Australia Tel: +61 3 9016 7877
Milestone_Turnkey_A4_ad.indd 1
17-04-2015 12:57:43
FR0114_000_ATS
-
1
2013-11-28T16:00:44+11:00
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
FR1605_087
- 87
2016-04-18T18:33:56+10:00
On the flight path
H
ow many times would you imagine that regulations have brought a new business into being? Itâ&#x20AC;&#x2122;s certainly the case for newbie franchise concept National Drones.
Drones are the new technical gadget that has got everyone talking â&#x20AC;&#x201C; you could even buy one from Aldi for just $99. From property owners wanting to get an aerial shot of their estate or coastal home to building and solar panel inspectors keen to be operate more safely and efficiently or for farmers needing a land survey, the remotely operated drone offers seemingly endless opportunities to improve work practices.
KEVIN SCRIMSHAW AND BRAD AYLETT
FR1605_088
- 87
2016-04-18T18:33:56+10:00
Some of these business owners, including building inspector and National Drones co-founder, Brad Aylett, have looked at equipping themselves with the relevant certification and licenses. Each business entity (company, sole trader, partnership etc) requires an Unmanned Aerial Vehicle (UAV) Operator’s Certificate and, in addition, each ‘pilot’ needs a UAV Controller’s Certificate and Aeronautical Radio Operator’s Certificate (AROC). But, as co-founder Kevin Scrimshaw explains “A lot of businesses are not using drones every day and the cost and time it takes for certification makes it untenable.” That’s when the pair had the idea of developing a business that could provide a drone service for any business that
needed an aerial camera. Not the first such firm, the concept however was to build a countrywide service. And how better to develop a national profile than through a franchising set-up? As of 30 March 2016 there were only 500 licensed drone operators in Australia, so there is plenty of potential for the sector to develop, says Scrimshaw.
HOW DOES IT WORK? “Drones have been largely considered toys, but what has tipped the scales has been recent battery technology,” Scrimshaw explains. Lithium polymer (lipo) batteries which provide a lower weight to power ratio allow for extended flight times, making commercial operations more feasible. And developments in digital technology mean a high reso-
lution camera can fit in a small space. The tools of the trade are important – the 4KHD camera in use is lightweight and compact but capable of producing still photography and cinematic quality video. A separate thermal imaging camera can also be used to detect heat loss and moisture retention when inspecting solar panels and heating, ventilation and cooling systems installed on roofs – without the need for scaffolding, safety harnesses or elevated work platforms. However current regulations do require a drone operator to keep the unmanned aerial vehicle in visual line of sight – for obvious reasons: while there are height restrictions for drones (not above 400ft) and for light aircraft and helicopters (not below 1,000 ft), police and other emergency service helicopters can fly as low
Drones have been largely considered toys but what has tipped the scales has been recent battery technology
BECOME A QUEST FRANCHISEE A PROVEN AND SUCCESSFUL BUSINESS FORMULA As Australasia’s largest apartment hotel operator, Quest is a brand business travellers have come to rely on for more than 25 years. We’ve created a business format franchise model that takes away some of the challenges to achieving success in small business, with the support of one of Australia’s most recognisable brands.
Visit questfranchise.com.au or call 1800 809 913.
MAY/JUN 2016 | 88 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_089
- 87
2016-04-18T18:33:56+10:00
as they need to, and the drone operator has to be alert to any possible collisions. Scrimshaw is confident that an incoming franchisee can undergo three weeks of intensive training and walk away with the basics of the drone operation, business principles and practice, and the relevant certification issued by the Civil Aviation Safety Authority. Franchisees will learn everything from taking the drone out of its box to auto piloting and manual control, photo editing, thermal imaging, agricultural application, 3D mapping and the science of making measurements from photographs (photogrammetry). Then there is ongoing education around these applications, with franchisees adopting “self-paced learning to become specialists relevant
to their territory and a niche,” says Scrimshaw. National Drones has partnered with a registered training organisation to provide the theoretical training and exams required to attain a UAV Controller’s Certificate and AROC, and to assess practical flying capability. Franchised drone operators will be able to service practically any commercial or government operation within their own territory but the franchisee in Bondi is unlikely to provide the same services as a regional, rural based franchisee.
BUYING INTO THE FUTURE National Drones is targeting expansion state by state. “We want enough coverage in each state, a geographical spread in New South Wales –
Sydney, regional, coastal – to go to a real estate chain and propose our services.” The launch of the brand into the franchising sector at the Sydney Franchising & Business Opportunities Expo went well, Scrimshaw says. The business appeals to individuals who have some business and life experience, are not deterred by the need for technical learning and exams, and who are comfortable dealing with business customers. Franchise buyers can expect to invest between $50,000 and $75,000 dependent on both the size of the territory and the equipment options chosen. At this point franchisees need to be risk takers. “We’re in the establishment phase but we’re in an industry that’s getting a lot of media attention.”
MAY/JUN 2016 | 89 | WWW.FRANCHISEBUSINESS.COM.AU
To ensure a new business in a new market had gravitas, the founders approached franchising expert Brian Keen to advise on the business model, took their territory allocation to geodemographic and sales prediction modelling company Spectrum Analysis, and have signed up to membership of the Franchise Council of Australia and the Franchise Registry run by FranData. “We’ve done everything right to make sure the model is compliant,” says Scrimshaw. The model is based on the man and a van principle, but Scrimshaw, who is an admirer of the Poolwerx hub and spoke system, sees a future extending beyond the simple sole operator model. As the company’s tagline says, the sky’s the limit.
FR1605_090
- 90
2016-04-18T16:24:37+10:00
JUMP! SWIM SCHOOLS splashes into 2016
S
pecialising in teaching babies and infants critical first skills water, Jump! Swim Schools began as a single outlet in Grafton NSW in mid-2011. Since then, it has slowly peppered throughout the country. The franchise runs competency based learn-to-swim programs starting with infants, and extending to stroke correction for older children.
“Jump! has a turnkey model incorporating three months training. Each franchisee averages 300 to 350 students per location.
In partnership with AustSwim, Jump! Swim Schools boast low class numbers, 32 degree indoor heated pools, clean and private facilities, detailed teaching curricula and ongoing personal attention for their clients.
“As a parent and a swim teacher I noticed the swim schools in Australia were designed for volume and were very intimidating for young children, which is not ideal since swimming is a confidence based skill,” explained Campbell.
It’s a niche franchise that enables children to learn away from the pressures of crowds and with minimal distractions. Founder and managing director Ian Campbell said Jump!’s tailored approach is key to its success. “I believe our point of difference is the key to our success and the reason 70 percent of our operating franchisees own more than one location,” says Campbell.
Franchisee James Rice said Jump! creates an intimate experience for families with purpose built facilities. “The pools are up to six degrees warmer than other centres, we clean our pools twice as often and we operate classes year round,’ says Rice. “Our classes are much smaller and our kids start younger at just three months of age.”
Jump! Swim Schools is Australia’s only national swim school, with an annual turnover exceeding $6m. The initial investment price tag sits at $135,000 + GST, as well as a seven percent royalty fee and three percent advertising fund contribution. The turnkey franchise model boasts access to the brand’s proven system, marketing, support, the network’s booking in advance payment system. Franchisees also manage exclusive territories. Ideal franchisees at Jump! Swim Schools have customer service experience, strong communication skills, are financially stable, and enjoy working with children. Jump! Swim Schools is set to expand from 22 franchised locations to more than 90 scheduled to open across Australia by the end of the year. Although there has been extensive growth across the country, the brand is currently taking requests for opportunities in Adelaide.
MAY/JUN 2016 | 90 | WWW.FRANCHISEBUSINESS.COM.AU
IAN CAMPBELL, FOUNDER AND MANAGING DIRECTOR
I believe our point of difference is the key to our success
FR0316_000_SNO
-
1
2016-02-19T16:30:22+11:00
JOIN THE
TEAM AT SNOOZE
Wake up to a fresh new career with Snooze. If you’ve always dreamed about owning your own business, becoming a Snooze Franchise Partner might be just what you’re looking for. Snooze is proudly owned by Steinhoff International, this means if you become a Snooze Franchise Partner you won’t just be joining one of Australia’s most successful bedding specialist retailers, you’ll enjoy the backing of a global organisation. Our tried and tested business model has seen our business grow to 78 stores nationally, combined with our training program, support and your winning attitude this could be the start of an exciting and new career path. Stop dreaming and enquire now about becoming a Snooze Franchise Partner.
Vendor Finance Available to Approved Applicants
It’s amazing what a little snooze can do. snooze.com.au
For more details visit snooze.com.au Or email Bettina Davis, Network Development Manager - bettina.davis@snooze.com.au
FR1605_092
-
92
2016-04-18T18:31:46+10:00
FAMOUS FISH
jumps
F
rom its humble beginnings as a fish shop in Lakemba almost 60 years ago, Steve Costiâ&#x20AC;&#x2122;s Famous Fish brand has jumped into the spotlight as a seafood casual dining space.
MAY/JUN 2016 | 92 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_093
- 93
2016-04-18T19:06:11+10:00
Originating from the family owned Costi’s Seafood brand operating since 1958, the brand opened stores throughout New South Wales in the 1980s. Differentiating the brand from fierce competition has helped Famous Fish weather challenging markets and strict fishing laws. The brand implemented a focus on supplying quality products, satisfying the customer dining experience, and giving back to the community. Franchisees support local community causes ranging from local charities for schools, sporting clubs, and disadvantaged groups. In 2014, Steve Costi partnered with Jon Sully (formerly co-owner of Michel’s Patisserie) and a group of partners to evolve the brand, the menu and the business model to the casual dining model that is Famous Fish. The development opened the brand to the
franchise model for exposure on the national stage.
and regional New South Wales and Victoria.
Together with directors Sully and Vaughn McGuinness, Costi remains an active founder of the franchised brand.
“We anticipate five new stores this year, and are on the lookout for sites and franchisees,” says El-Houli.
Although the casual dining space is a competitive one, Famous Fish offers seafood casual dining opportunities and options for fast food, backed by the renowned Costi brand.
The initial investment cost for a franchise typically starts at $200,000 (depending on fit out and site conditions), and comes with a fully integrated human resources rostering support, payroll systems, digital menu solutions, and marketing support.
Steve Costi’s Famous Fish franchise has plans for five new stores to open this year, with a primary focus on New South Wales and Victoria. Sal El-Houli, general manager at Steve Costi’s Famous Fish, says that there is a “massive gap in the market” for seafood casual dining, which is why the brand has aggressive growth plans for metropolitan
“There’s been a complete evolution of the brand (from the Steve Costi model),” explains El-Houli. With a new look and feel to the franchise model, and a menu in place, El-Houli says that the brand is “constantly evolving” with new product developments underway.
MAY/JUN 2016 | 93 | WWW.FRANCHISEBUSINESS.COM.AU
There’s been a complete evolution of the brand from the Steve Costi model
FR1605_094
- 94
2016-04-18T18:26:46+10:00
WOMEN H
otondo Homes, one of Australia’s largest building networks, has just welcomed its third female business owner within the franchise network. Lesleigh Davis, Fiona Petterson, and Alyssa Pepper head up Hotondo Homes Noosa, Port Macquarie and Caloundra respectively.
While women only represent 17.5 percent of the building and construction industry, they continue to emerge in trades, operations and management roles. We caught up with Lesleigh Davis and new addition to the tribe, Alyssa Pepper, to find out more about their experiences working within a male-dominated industry.
MEET LESLEIGH DAVIS: HOTONDO HOMES NOOSA Davis worked in her own building company for almost 10 years before taking over the Noosa franchise in January last year. In her view, franchising was the best move for her due to the industry’s market presence. Working with a national brand is also a perk, as well as the support available in the network for sales, and advertising. Although Davis hasn’t faced any major challenges in franchising, she highlights the importance of potential franchisees doing their homework
and researching the business and its expectations. “Franchises aren’t for everybody,” explains Davis. She admits that sometimes clients expect her to be male, considering the culture of the building industry. Her advice for other women considering taking up franchises in male-dominated industries is to do research, pursue a passion, and be proactive about developing a client base, even though support is available in the network. She also believes that an understanding of business is a plus. However, she advises potential franchisees to pursue their interests and “deal with the hurdles as they come up.”
MEET ALYSSA PEPPER: HOTONDO HOMES CALOUNDRA Pepper, who joined the network in late January, will operate in Caloundra on the Sunshine Coast in April. After spending more than a decade as a project manager
with a range of builders, she decided it was time for a change by focusing on her growth and professional development. “I worked with a lot of builders on a lot of projects including medium density and commercial builds,” she says. Pepper loves the building sector, and wanted to see what possibilities the franchise network could offer, including marketing and business support. “It came to a point where I decided it was time for a change and time to focus on myself so I went and got my Builder Licence and here I am.” Despite the no-woman-in-sight stereotype about the maledominated building industry, Pepper says there is no scarcity of women in the business. In her experience, women are involved, albeit not in the front line of building, but certainly in the project management side. She believes that the key skills needed to franchise are common sense, a broad understanding of the industry, and good management and communication skills. “Equal opportunity there,” says Pepper.
is
out
Her advice for other women considering opening up a franchise in a largely maledominated industry is to have attention to detail, to be skilled in the job, love the job, and have trust in others.
MAY/JUN 2016 | 94 | WWW.FRANCHISEBUSINESS.COM.AU
TOP: LESLEIGH DAVIS BOTTOM: ALYSSA PEPPER
FR1115_000_RED
-
1
2015-11-09T10:45:34+11:00
FR1605_000_MAR
-
3
2016-04-05T15:31:23+10:00
AUSTRALIA IS OPEN FOR BUSINESS AND IS ATTRACTIVE TO OVERSEAS COMPANIES
Another busy year in the Franchise Sector COMPLIANCE ISSUES Robert, Marianne and Natassja in our franchise group have been extremely busy with new and overseas Franchisors upgrading their agreements to comply with the Code. Overseas Franchisors coming into the Australian market require their franchise documents to be updated to comply with the Code and also meet their financial disclosure obligations under the Code. NEW FRANCHISORS We are acting for a number of new and exciting Franchise systems in a wide range of areas such as Retail, Food and Hospitality, Childcare, Fitness and Health, Online sales and other Business to Business Service Industries. We love being part of such a dynamic industry and acting for Local and International clients. DISPUTE RESOLUTION There have been a number of recent high profile franchise failures. We have been advising a number of Franchisees in these systems as to their rights and obligations including their options in dealing with shopping centre landlords and Administrators. We have also been involved in a number of mediations under the Code acting for both Franchisors and Franchisees aimed to resolve disputes so the parties can get on with business or negotiate an exit. We provide a full range of services to our business clients in the areas of Leasing, Employment Law, Intellectual Property, Contract law, Australian Consumer Laws and Dispute Resolution. We also provide the full suite of franchise services to our franchise clients which include Franchisors, Master Franchisors and Franchisees.
Marsh & Maher are members of: • The Franchise Council of Australia (FCA). • International Franchise Lawyers Association (IFLA) being a network of specialist franchise and licensing lawyers worldwide. We can therefore refer Australian Franchisors to reputable and experienced advisors worldwide. • US Commercial Service – assisting US companies to establish business in Australia; and • Themislink European Lawyers Network. We also have a network of experienced consultants who are FCA members to assist our new franchisor clients to ensure the success of their franchise system, this includes accountants, feasibility, site selection, territory planning and developing operations, manuals and franchisor systems. Our recent experience includes: • Acting for overseas companies from Germany, France, Sri Lanka, Thailand, Greece, Hong Kong, New Zealand and the US to establish their business operations and franchise system. • Assisting multiple Franchisees to renegotiate their franchise agreements with their franchisor and in mediation. • Preparation, review and renegotiation of Master Franchise Agreements. • Advice on corporate structures for Licencing and Distribution systems. • Acting for multiple Franchisees in dispute with a Franchisor. • Upgrade of Franchise documents to comply with the Franchise Code 2015. • Advice to Franchisees for a fixed fee. • Applying for Third Line Forcing exemption from the ACCC. • Strategic advice to Franchisors and Franchisees. Robert and Marianne have over 35 years of industry knowledge and experience. We provide clients with fixed fees based on the scope of services where possible so our clients can monitor and budget for their legal costs. Please contact Robert or Marianne
FRANCHISE LICENSING AND RETAIL GROUP
Robert Toth Partner (03) 9604 9405 rxt@marshmaher.com.au
Marianne Marchesi Senior Associate (03) 9604 9413 mim@marshmaher.com.au
FR1605_097
- 97
2016-04-18T22:08:38+10:00
LEADING THE
BATTERY
WORLD CHARGE I
f Townsville franchisee Greg Leslie thought seven was his lucky number, he’s quickly having a rethink.
Leslie has just chalked up eight consecutive years as the most successful store in the national network of 89 Battery World outlets. Leslie is no slouch when it comes to breaking Battery World records but eight in a row has to be something of a national franchising feat.
More than 200 Battery World franchisees, management and suppliers attended the national conference in Hobart in February where Leslie was lauded. Not only did he scoop the pool with record-breaking five awards, he also broke the all-time sales record and took home the granddaddy of them all, Franchisee of the Year.
The company’s general manager Rowan Hodge has worked with some of the country’s biggest franchise groups. “People can try and explain away Greg’s success but what it comes down to is he takes enormous responsibility for his business and keeping customers happy,” Hodge says.
FR1605_098
- 97
2016-04-18T18:14:36+10:00
So the results achieved are not from a recipe I can write down and replicate. It's living a philosophy every day and influencing those around me
“It’s no secret Townsville’s economy has had its trials but for Greg to stand up and be Franchisee of the Year is truly something to behold. He’s a team player who shares his abilities, secrets and work ethic with the network. If a store anywhere is under pressure he will gladly volunteer to spend a few days scrutinising their operating procedures and mentoring the franchisee to help get things back on track. “And his impact in the network doesn’t end there: he also takes an active leadership role in the Battery World franchise council. This is time spent away from his own business and he does that because he’s passionate about mentoring others in the small business world. “Two of the awards we gave Greg this year are not even awarded every year – the Network Leadership Award and entry into the
Battery World Hall of Fame.” A former auto electrician, Leslie took the Townsville business from a lagging store, when he took control in 2005, to the consistently top-ranked outlet in Australia. His secret is looking after customers and mostly letting sales take care of themselves. There’s a free service for everything from cleaning battery terminals to sending a staff member to an elderly person’s home to go up the ladder to change their smoke alarm battery. Leslie honours guarantees and warranties pulling out all stops to keep customers happy. “You do things like that often enough, sooner or later it comes back and pays you back tenfold,” he says. “Everyone spends, on average, a bit over $3000 for batteries in
their lifetime. If I reject a transaction and throw away $3000, I would be an idiot.” Leslie made the decision to win the Franchisee of the Year on the plane flight home from the 2015 Conference on the Gold Coast. “We were given a notebook by one of the suppliers and I wrote #1 on the first page,” he says, “on page two I listed what winning would mean to me and why I wanted to win. “I then listed areas under our control and the actions and disciplines required to improve them. There were numerous ways to improve the store’s performance. Two obvious ones were with inventory control and minimising expenses, but there’s a limit to how low you can go with those, whereas sales have no ceiling,” he says. “Purchases occur when value
Own a Slice of La Porchetta! Join the largest Italian restaurant chain in Australia and New Zealand. You will love taking part of serving our guests quality Italian food, to order, using fresh ingredients. We are looking for passionate food lovers with a strong work ethic and drive to join our family. You bring the drive and commitment and La Porchetta will provide the proven systems, training and support to achieve success. WHY LA PORCHETTA?
“
La Porchetta’s not run like a corporation, but like a family business and you really feel you are part of the group.
“
Vito Ramondetta Franchisee
t
A proven profitable operation.
t
We are a much loved and recognisable national brand.
t
We have strong local area marketing support and advice.
t
Be part our dynamic and engaged family of restaurants that love people.
t
Join our team of restaurant owners who love getting together and share ideas.
t
We offer a flat fee structure that allows you to build your business faster.
Minimum Investment: Dependent on Site Conditions $300k+
Opportunities now available Australia-wide in key metropolitan and regional areas. Visit: http://www.laporchetta.com.au/franchising email: franchising@laporchetta.com.au OR call (03) 9460 6700.
Download our iPhone or Android App
Follow us on Social Media /LaPorchetta /LaPorchettaOfficial
Enquire Now
www.laporchetta.com MAY/JUN 2016 | 98 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_099
- 99
2016-04-18T19:06:29+10:00
GREG LESLIE
exceeds price. If I didn’t want to drop our price I had to increase the value we delivered. Our focus became pushing the limits on how far we could take customer service without exceeding an acceptable level of service for the industry we’re in (it is possible to go too far and make the customer uncomfortable). “This had become engrained in our DNA. Staff had to continually deliver a great customer experience no matter how they felt on the day. Every function of business existed solely to
cleaning is one thing: to then not charge a cent for this builds enormous trust with someone you’ve just met,” he says.
serve the customer. I decided to stop comparing our level of service to other businesses: we had to march to our own drum. “The cycle time for the majority of our sales is quick, two to three minutes, so it’s critical the greeting, diagnosis, prescription and farewell are choreographed to seamlessly occur over and over again. “The diagnosis and prescription is where trust is solidified. Discovering the battery is fine and the terminals only needed
“So the results achieved are not from a recipe I can write down and replicate. It’s living a philosophy every day and influencing those around me to live that same philosophy of dispensing trust. When you walk though my door I’ve got your back.” Leslie believes whether you are in a franchise or an independent small business you’re better off taking the initiative to improve your trade rather than waiting for something to happen. “Anyone can be accommodating when the customer is handing over money but going over and above when a problem occurs is a talent worth honing,” he says. “When times are tough, too
many businesses will open less, deliver less and appreciate less. We have strived to be more available, more accommodating and more appreciative. “Customers can live long and happy lives without me, I cannot hope to survive without them.”
5 TOP TIPS ON BEING THE BEST FRANCHISEE 1. When you’re at work be at work. Ban yourself from Facebook , YouTube and constant emails. 2. There are numerous alternatives for what you deliver, appreciate it’s an honour for the customer to choose you. 3. Everything matters: nothing is neutral. It’s either enhancing or depleting the customer’s experience. 4. Trust takes a lifetime to build and a microsecond to destroy. 5. Protect the brand no matter what the cost.
Like to work smarter not harder? Mail Boxes
Colour Printing
Express Couriers
Pack & Ship
Design & Web
@
Mailing Solutions
Copy & Finishing
Then take advantage of this opportunity to speak to one of the world’s leading franchise brands! At our free franchise information evening, you will hear from industry specialists on: Q Couriers, shipping & packaging Q Digital printing Q SEO & online marketing... plus more Register your interest now for our informative, obligation free open night
Monday 16 May, 2016 - Osborne Park, WA To register, please follow the link at www.mbebusinessfranchise.com.au or call Paul Kasper on 0457 677 986 Seats are strictly limited
MAY/JUN 2016 | 99 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_100
- 100
2016-04-18T22:13:32+10:00
THE
FAST FOOD FRANCHISE WITH A
HEART T
he competitive fast food industry makes creating a niche brand a challenge, but not for Lord of the Fries Australia (LOTF) which prides itself on tapping into a consumer favourite, but with a twist. That is, a focus on sustainability as well as catering for various dietary requirements.
house gases were equivalent to carbon emissions in the 2000s.
We all know about greenhouse gas emissions contributing to global warming and the negative repercussions of our carbon footprint on the natural world. Although the common perception of emissions attributes the phenomenon with fossil fuels and deforestation, a report by The Conversation reads:
“The human emissions of these gases are largely associated with food production. Methane is produced by ruminants (livestock), rice cultivation, landfills and manure, among others.”
“LOTF’s mission to minimise its eco footprint and generally make the world a better place is demonstrated throughout each level of the business,” says Mark Koronczyk, co-founder of Lord of the Fries
A study by Nature Communications states that these sources of green-
So what does this mean for the franchisee? Is the environment-friendly brand worth
LOTF, which offers a completely vegetarian menu, with vegan options as well as halal, Kosher, and low gluten choices, say that operating sustainably is a core value of the brand.
MAY/JUN 2016 | 100 | WWW.FRANCHISEBUSINESS.COM.AU
FR_Subs_JanFeb_FP
F R0 9 1 5 _ 0 0 1
-
1
-
1
2015-12-17T14:58:49+11:00
2 0 1 5 - 0 9 - 1 5 T1 6 : 4 6 : 5 5 + 1 0 : 0 0
F R1 1 1 5 _ 0 0 1
-
1
2 0 1 5 - 1 1 - 1 0 T1 6 : 4 2 : 1 1 + 1 1 : 0 0
F R0 7 1 5 _ 0 0 1
-
1
2 0 1 5 - 0 6 - 3 0 T1 1 : 5 2 : 0 0 + 1 0 : 0 0
YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE | WWW.FRANCHISEBUSINESS.COM.AU SEP/OCT 2015 VOL.28/NO.5
YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE | WWW.FRANCHISEBUSINESS.COM.AU NOV/DEC 2015 VOL.28/NO.6
FRANCHISING
FRANCHISING
FRANCHISING
Franchising Franchising Franchising YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE | WWW.FRANCHISEBUSINESS.COM.AU JUL/AUG 2015 VOL.28/NO.4
WHAT'S
BREWING?
FLASH
Stirring up the coffee market
FORWARD
P.16
P.24
P.12
Why you need to research before you buy
How to spot an undervalued business
9 ways to spot a winning franchise
AUS $6.95|NZ $7.95
WATER WORKS: DIVE INTO THE POOL BUSINESS
RISK STRATEGY: WILL YOU PUT YOUR HOME ON THE LINE?
GOING BUST: WHAT TO DO IF YOUR FRANCHISOR FAILS
P.68
P.52
P.60
TURNING JAPANESE
Rice bars come to town AUS $6.95|NZ $7.95
PR I N T P O S T A PPR OV E D 10 0 0 0 8121
SIGNS OF SUCCESS
WWW.FRANCHISEBUSINESS.COM.AU
A BARGAIN BUY?
SO YOU WANT TO BE A FRANCHISEE? WHAT OTHER FRANCHISEES WILL TELL YOU.
PR I N T P O S T A PPR OV E D 10 0 0 0 8121
DUE DILIGENCE
WWW.FRANCHISEBUSINESS.COM.AU
PR I N T P O S T A PPR OV E D 10 0 0 0 8121
WWW.FRANCHISEBUSINESS.COM.AU
AUS $6.95|NZ $7.95
JUL/AUG 2015
NOV/DEC 2015
SEP/OCT 2015
FIND OUT ABOUT LEGALS, LEASING, TERRITORY AND ROYALTIES
The beauty business moving at the speed of light
FRANCHISE FUNDING
CAPED CRUSADERS
REVIVAL OF FORTUNE
p.52
p.36
p.12
Can you access the finance you need?
Spot the superhero franchisors
What happened at Pie Face, and what’s next?
AUSTRALIA’S MOST TRUSTED TITLE IN FRANCHISING Ensure you get every copy! The leading publication for those looking to buy into the $144 billion franchising sector. Each issue you’ll receive: • Independent and essential financial, legal and business advice • Market sector and industry reviews • Inspirational success stories
SUBSCRIBE for just
$45
and take the first step towards becoming your own boss
Call us on 1300 360 126 or visit www.FranchiseBusiness.com.au
FR1605_102
- 100
2016-04-18T22:13:32+10:00
investing in? Does it stand its ground in a competitive fast food market? “Everyone loves fries... We combine that with making our entire menu vegetarian and ethically conscious, which may draw in a certain crowd that cares for the environment, living beings and the planet. Hopefully that’s not too niche,” he says. The brand focuses on high foot traffic areas, with a broad demographic of 15-45 year olds. So the market exists, but is there ample network support available for this relatively new brand? “We negotiate all aspects of the lease, take on the head lease and organise the design and fit out. After receiving three quotes, the franchisee can accept or reject any site offered to them,” explains Koronczyk. The franchisor takes on the major investment risk to arrange a financially appro-
priate deal for the franchisee. However, the perks of a proven model and franchisee support does not magically remove challenges from the business. Franchisees should familiarise themselves with “unique busy times and customer profiles” which will continue to evolve throughout the investment. Not to mention the costs of sustainability. It can be costly to maintain the targeted dietary requirements and invest in quality products free of animal parts. “This definitely increases costs as we cannot, and refuse to, use cheap products such as cheeses, buns and sour creams, for example, like our competitors do,” says Koronczyk. And it doesn’t stop there. “We also use local Victorian and Sydneygrown potatoes for our staple chips and deliveries to the LOTF shops are in trucks
fuelled by the recycled oil used to fry the fries,” he adds. So who is an ideal franchisee? “We are looking for owner-operators who are hardworking and realise the many hours it takes to build a successful business,” says Koronczyk. And a passion for sustainability is a plus. “We tend to find that like attracts like and are proud to have a team of franchisees and staff who are equally as compassionate and empathetic as we are for the people, the planet and the animals.” LOTF Australia’s advice for potential franchisees is to: ✱ be open minded, creative, and set realistic expectations without complacency ✱ put in the hours and be involved in all aspects of the business ✱ take pride in the product
MAY/JUN 2016 | 102 | WWW.FRANCHISEBUSINESS.COM.AU
FR0316_000_EGN
-
3
2016-02-19T16:03:45+11:00
Shorten The Time to Your Success with World`S Fastest Franchise System
There is an opportunity here which is extremely lucrative to the right kind of person.
Strategy Management Competency Management Appraisal Management Learning Management Experience Management We are looking to partner with a person who has high expertise in one of the 5 traits all successful organisations exhibit.
Egnatium Franchisee Advantage:
Lead Time
Franchisee Comprehensive Model Builds on Franchisee your strengths Support and experience
Continuity and Revenue Assurance
CALL NOW TO GET A FREE FRANCHISE REPORT (07 3036 1152)
+61 7 3036 1152
Simple Model to Follow
FR1605_104
- 104
2016-04-18T19:09:48+10:00
LEGALESE
DO YOU NEED TO RAYNIA THEODORE is a principal at MST Lawyers and has extensive experience in corporate, franchising and leasing law.
READ THE FRANCHISE AGREEMENT?
B
uying a franchise business is a significant undertaking - one that requires thorough research of the franchise system, speaking to existing and past franchisees and most importantly understanding the franchise agreement you will be asked to sign. The franchise agreement is the document that will govern the relationship between you as a franchisee and the franchisor. It is critical that you understand the essential elements of the agreement and your obligations as a franchisee. The agreement is governed by the Franchising Code of Conduct which dictates the documents that must be provided to a franchisee by the franchisor, the time lines that need to be observed and the processes that must be followed by both the franchisee and the franchisor throughout the life of the relationship between the parties. Some of the key terms of the agreement that should be noted and understood are:
1. THE TERRITORY Some agreements will specify a territory in which the franchised business must operate. The territory can be defined in a number of ways including a geographical description outlining certain physical boundaries, a postcode or a particular shopping district. It is important that the territory is defined accurately and that you consider any possible future changes, for example, changes to a postcode boundary or the location of a shopping district. Other considerations to note in regards to the territory are: ✱ the franchisor’s territory selection policy or process; ✱ the scope of the territory and whether the franchised business can be operated successfully or profitably within its bounds;
✱ whether you have been granted exclusivity for the territory or whether the franchisor is able to grant other franchises to other franchisees or run similar businesses within your territory; ✱ whether the territory can be unilaterally changed by the franchisor; and ✱ whether the exclusivity granted to you for your territory can be lost as a result of a breach of the terms of the agreement or a failure to meet minimum performance obligations.
2. THE FEES The agreement will provide for the payment of both one-off and recurring fees. It is important that you are aware of your financial obligations under the agreement and the payments you will be expected to make. The one-off fees payable under the agreement can include the following: ✱ franchise fee – for the grant of the franchise; ✱ training fee – for the initial training provided by the franchisor; ✱ renewal fee – payable upon the renewal of the agreement if there is a renewal option; and ✱ transfer or assignment fee – payable by the franchisee upon the sale of the franchised business to a purchaser. The calculation of this fee will vary between systems, and may sometimes be a flat fee or a percentage of the sale price. The possible ongoing fees payable under the agreement include: 1. Royalties – payable by you to the franchisor for the right to utilise their intellectual property or business system for the term of the agreement. This can be a flat fee or alternatively a percentage of the sales generated by the franchised business. You should also note when the payment is due - monthly or weekly. 2. Advertising/marketing fund contribution – where the franchisor has established and maintained a marketing fund, contributions are sought
MAR/APR 2016 | 104 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_105
- 104
2016-04-18T19:09:48+10:00
LEGALESE
from franchisees. The funds obtained are used to advertise the franchise system as a whole. The contribution can be a flat fee or a percentage of the sales generated by the franchised business and may be payable monthly or weekly. 3. Technology fees – are payable for the right to use the franchisor’s technology systems, software, hardware, intranet and/or point of sale system which has been developed for the franchise network. 4. Ongoing training fees - where the franchisor provides ongoing training during the term of the agreement, these costs will usually be paid by you and could be significant, especially if the franchisor is interstate and travel and accommodation is required.
3. THE FRANCHISE TERM The agreement will usually outline the length of the term and any renewal conditions. You should also be aware of any option to renew and the conditions of renewal. These conditions may include providing notice within a specified time frame, satisfying minimum performance standards, upgrading the fitout of the premises, signing a new franchise agreement and the payment of a renewal fee.
4. BREACHES AND TERMINATION
administered body corporate; ✱ the franchisee is a company and it becomes deregistered by the Australian Securities and Investments Commission; ✱ the franchisee voluntarily abandons the franchised business or the franchise relationship; ✱ the franchisee is convicted of a serious offence as defined in the Code; ✱ the franchisee operates the franchise business in a way that endangers public health or safety; or ✱ the franchisee acts fraudulently in connection with the operation of the franchise business. If the franchisee has breached the agreement on grounds other than those listed above, before the franchisor can terminate the agreement it must issue a breach notice. This outlines the breach or breaches, indicates what the franchisee must do to remedy them and sets out the timeframe for the franchisee to take remedial action (which must be reasonable). It also highlights that the agreement may be terminated if the franchisee fails to comply in the manner and within the time specified in the breach notice.
5. SPECIAL CONDITIONS If you have negotiated special conditions with the franchisor, they will need to be specified in the agreement.
The circumstances in which the agreement can be terminated will be set out in the document. They are also governed by the Code. You must be aware of the situations that could lead to the breach and/or termination of your agreement so that you can avoid them or, if necessary, rectify any issues as soon as they are identified.
These terms of the agreement listed above are only some of the standard key clauses that you should be aware of.
Under the Code, the franchisor can only immediately terminate the agreement on the following grounds:
It is therefore essential that you obtain advice both professional financial and legal advice from experts in franchising.
✱ the franchisee no longer holds any licence or authority required to carry on the franchised business; ✱ the franchisee becomes bankrupt, insolvent under administration or an externally-
Franchise agreements are usually complex lengthy documents and buying a franchised business is usually a long term proposition.
However, such advice is not a substitute for you reading the agreement carefully. It is very important to fully read the agreement yourself and truly understand all your rights obligations and rights under it.
MAR/APR 2016 | 105 | WWW.FRANCHISEBUSINESS.COM.AU
It is important that you are aware of your financial obligations under the agreement and the payments you will be expected to make
FR1605_106
- 106
2016-04-18T16:26:23+10:00
LEADERSHIP
Can the franchise relationship ever be
ANDREW TERRY Professor of Business Regulation, The University of Sydney Business School
truly balanced? L ord Evershed was not referring to a franchise agreement when he stated that “This contract is so one-sided that I am astonished to find it written on both sides of the paper”. Nor was Lord Denning when he referred to a clause which “would need to be printed in red ink with a red hand pointing to it” before sufficient notice of it could be said to have been given. But they could have been. Let’s face facts and be realistic. Balance in the sense of “evenness” or “equality” is not a characteristic of franchising. The typical franchising relationship is indeed characterised by the control of the franchisor and the commensurate dependency of the franchisee.
The 2008 Opportunity not Opportunism report clearly identified the reality of the franchising model in these terms:
which recognises and acknowledges the realities of the weaker party in a relationship.
The franchising model is necessarily predicated on strict franchisor control over the use of their brand, allowing them to impose strict terms and conditions on the way franchisees operate their franchise business. Because the franchisor’s model needs to be implemented uniformly across the franchise network, franchise agreements are typically underpinned by standard form contracts drafted by the franchisor… In practice franchisors are able to dictate business operations and procedures to franchisees and are able to change these at will.
Consumers are obviously disadvantaged in the contemporary marketplace and were the original recipients of legislative intervention but today there is recognition that contractual disadvantage exists in business to business contexts as well as business to consumer contexts.
ONE SIDED BUT VALUABLE The typical franchising relationship is one-sided but it would nevertheless be a mistake to assume that this reality somehow diminishes its integrity. The franchisor’s power in the relationship is an inevitable by-product of the nature of the relationship. And is also a necessary part of it.
Franchisees of course have a further layer of protection beyond that given by the underlying law under the Franchising Code of Conduct which addresses worst excesses of opportunistic conduct. These provisions restore some balance to the franchising relationship. While the normal meaning of balance is evenness there is another meaning, harmony of design and proportion, and in this sense the aspiration of a truly balanced franchise relationship is not unrealistic.
The franchisor needs the contractual power - ultimately the power to terminate - to deal with noncomplying franchisees whose practices are damaging the system. It is not only the franchisor’s goodwill in the system which is damaged by non-conforming franchisees but also the investments of individual franchisees in their businesses. Franchisors must have the contractual power to protect their investment and those of their franchisees.
Rather than seek an unrealistic equality between the parties which does not exist and cannot exist and doesn’t need to exist the priority should be that of exploiting the unique synergies and interdependencies that flow from franchising. Successful franchisors understand that while their contractual power gives them the right to enforce compliance it is ultimately the quality of the system and the franchisees’ respect for it which better commands compliance.
Today the weaker party in a relationship is protected from the stronger party abusing its contractual power. The traditional approach of the doctrine of freedom of contract – that the courts will not reopen the contracts made by the parties – that is reflected in the maxim caveat emptor, let the buyer beware, has been replaced by a more interventionist approach
The franchisor’s power and control is real and necessary part of a franchising relationship. Regulation can prevent the worst excesses of opportunistic behaviour. But good systems and commercial solutions which exploit the unique synergies and the interdependencies within franchising provide the most effective solutions.
MAY/JUN 2016 | 106 | WWW.FRANCHISEBUSINESS.COM.AU
FR1116_000_ZOO
-
1
2015-12-04T09:40:01+11:00
YOUR FRANCHISE. YOUR MUSIC.
Zoo Music brings you the very latest in custom branded background music perfect for your franchise. With a Zoo Music digital media player, you can stream thousands of quality tracks relevant to your business style. Simply choose from our pre-programmed playlists, or work with our music team to design a format that is right for you. With options to play branded ID's or messages in between songs, you'll have your very own music channel. So relax and let the experts at Zoo Music develop a program for your business and experience the effect great music has on your customers.
ive Inclus CA of PP ce Licen Fees
zbm.com.au
THE ZOO BUSINESS MEDIA GROUP
FR1605_108
- 108
2016-04-18T17:19:23+10:00
LEADERSHIP
How will you know
you’re ready? KARLI FURMAGE is a trainer, coach and writer. Contact karli@goglobal. consulting
Y
ou will have heard how important it is for potential franchisees to understand the risks and have realistic expectations entering an agreement. Due diligence is the process of sourcing facts and data to analyse and then make an informed decision about the franchise system, the franchisor and the opportunity.
That process can be overwhelming. But when you start your business based on an informed decision, you are far more likely to succeed.
BE CLEAR ON YOUR GOAL The decision to buy a franchise can be motivated by any number of factors. Understanding why you are doing this and your motivations, and knowing the outcome you want, will give you a list of criteria to help make the decision. It will also help identify any biases and emotion that may influence a decision or prevent clarity. You’re ready if: you know exactly why you are doing this and you can explain it clearly to anyone who asks. You are fully aware [and have dealt with] any unrealistic expectations or emotions surrounding the business. You have a list of what you want out of the franchise.
RELIABLE AND ACCURATE INFORMATION As you work through the due diligence process there are lots of sources of information. It’s not all created equal. Emotions will colour facts presented by an ex-franchisee for example, or an over-zealous franchisor recruiter may put a certain spin on the facts. Reliable and accurate information is key to making informed decisions.
You’re ready if: you are confident you have sourced facts from a broad and deep range of sources to build an accurate picture of the reality of the opportunity. You have checked all the information you’ve been given, looked into the intentions of the person sharing information with you, and sorted out hard data from opinion.
ANALYSING THE FACTS AND DATA UNCOVERED Once you have all the information it’s time to make sense of what it all means. Listing the pros and cons, comparing the information to your criteria or building models to explore different scenarios are all ways to analyse the information you have. You’re ready if: you are intimately acquainted with how all the facts you’ve gathered fit together. What does all that information mean for your chances of running a successful franchise? What are the main risks? The best opportunities? What are the trade-offs? What happens if the market slows? Interest rates rise? Laws change?
EXPERT ADVICE Accountants, lawyers and business professionals experienced and skilled in franchising can provide advice and expert opinion on the data you
MAY/JUN 2016 | 108 | WWW.FRANCHISEBUSINESS.COM.AU
have collected and any assumptions you’ve made based on that data. They can also provide an impartial view on subjects you are unfamiliar with. Looking at the decision with a fresh, objective perspective is extremely valuable to gain new insights. You’re ready if: you know the important bits of what they know. Have they armed you with more questions to ask the franchisor? Shared useful insights into franchising generally and the chosen system specifically? Given you useful tools to analyse the information, explained decisions and consequences?
INPUT FROM TRUSTED ADVISORS A trusted advisor is someone who has your best interest at heart and can remain objective. A discussion with a trusted advisor, especially one who knows you well will challenge you with their concerns, pick holes in your logic and test your conviction. You’re ready if: you can answer any question put to you by a trusted advisor with ‘I thought of that and this is what it means / the answer is / how I know…’
GOOD INVESTIGATION TAKES TIME Your due diligence process should continue until you’re in a position to make an informed decision – it can be a long and complex process. You must be prepared to make the commitment necessary and work through the steps properly if you want to feel the ‘deep in your stomach’ conviction of this being the right decision for you.
FR_Journey_JanFeb
-
1
2015-12-17T14:59:03+11:00
START YOUR JOURNEY Thinking about buying a franchise? Leverage our countless years of knowledge and industry expertise to help find the right franchise for you!
Download our FREE 6 step “Buying a Franchise” education journey at FranchiseBusiness.com.au/subscribe
FR1605_110
- 110
2016-04-18T17:03:28+10:00
GLOSSARY
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 granted for trading under the franchise agreement. Most franchise terms are on a renewable three or five year term but they can vary from one year to perpetuity. GREENFIELD new site.
SITE: a brand
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. LOCAL AREA MARKETING: [LAM] this is marketing the franchisee is responsible for conducting in the franchise territory or designated marketing area. MARKETING AND ADVERTISING LEVY: a regular flat or percentage based fee paid into a centralised advertising or marketing fund. MASTER FRANCHISEE: a franchisee who is responsible for a large territory, appointing other franchisees within the territory with direct agreements, and ensuring that the franchisor’s systems and methods are applied. 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. OPERATIONS MANUAL: the franchisee’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. REGIONAL FRANCHISEE: similar to master franchisees, regional franchisees operate a large territory and appoints franchisees within the area. 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. 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. 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. 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). 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. 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. 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.
MAY/JUN 2016 | 110 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_111
- 110
2016-04-18T17:03:28+10:00
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:
Are you confident in the franchisor?
What are the franchisee and franchisor obligations?
Have you seen a disclosure document?
What training is available and who pays for it?
Have you evaluated the financial returns?
Who owns the intellectual property and what is licensed to the franchisee?
Do you know all the expenses franchisees are required to pay?
What marketing will the franchisor implement?
Have you worked out your operating costs?
Who pays for the marketing?
Do you know the term of the agreement?
What is the dispute resolution process?
Is the business operating from fixed or mobile premises?
Do you know what it is like to be a franchisee?
Are you working within a territory? If so, is the area exclusive?
Can you assign the franchised business?
Are you restricted in your product purchase?
How can the franchisor or franchisee terminate the Franchise Agreement?
Are you required to reach a minimum performance level?
What restrictions are there on the franchisee and guarantor operating a similar business?
MAY/JUN 2016 | 111 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_112
- 110
2016-04-18T17:03:28+10:00
DIRECTORY
ASIA-PACIFIC CENTRE FOR FRANCHISING EXCELLENCE A pre-entry franchise education program is available for free and online through this centre. Funded by the ACCC this course aims to help franchisees understand the process of due diligence and have realistic expectations of what it means to be a franchisee. The Centre was launched by Griffith University in 2008 and undertakes research on franchising best practice. The research helps inform policy and team members regularly engage with government bodies and franchise associations across the Asia-Pacific. VISIT: WWW.FRANCHISE.EDU.AU
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION (ACCC) The ACCC is an independent Commonwealth statutory authority that is responsible for enforcing the Competition and Consumer Act 2010 as well as legislation, promoting competition, fair trading and regulating national infrastructure.
directory of government and business associations, planning templates, business videos, and business checklists. Business topics include emergency management and recovery, finance, recruitment, environmental management, fair trading, taxation, online business, franchising, importing and exporting, intellectual property and training. VISIT: WWW.BUSINESS.GOV.AU
FRANCHISE COUNCIL OF AUSTRALIA (FCA) The FCA is the main body for representing franchisees, franchisors and service providers in the $131 billion franchise sector in Australia. Becoming a member of the FCA is voluntary and is available for any organisation or anyone involved in the franchise industry including franchisees. VISIT: WWW.FRANCHISE.ORG.AU
FRANCHISE BUSINESS
Its role is to protect, strengthen and improve the way competition works in Australian markets and industries. The ACCC also regulates the Franchising Code of Conduct (Code) which is a mandatory industry code that applies to parties involved in a franchise agreement, namely the franchisor and franchisee. The purpose of the Code is to regulate the conduct of the parties involved and if allegedly breached prompts investigations by the ACCC.
As the online arm of Franchising magazine, this website is focused on providing essential advice and information for anyone looking to invest in a franchise - short and snappy business tips and news, video interviews, industry commentary and market reports.
VISIT: WWW.ACCC.GOV.AU
Franchise Business is also the official directory of the FCA and lists franchising opportunities available in Australia and New Zealand. Potential franchisees looking to move into the franchising sphere can explore by location opportunities that currently exist in the market and enquire about the franchisor or brand.
BUSINESS.GOV.AU This website is an online government resource for the Australian business community which gives the public access to government information, forms and services for all things business. It is aimed at assisting individuals or a group of people to plan, start and grow their business. New business owners can access the advice finder, events calendar, grants and assistance finder, a
Financial, legal and business guidance are key components of the independent, authorative editorial that helps potential franchisees make their purchasing decision.
Users also have access to franchise consultants and advisors who can assist prospective or existing franchisees or franchisors with any legal, financial, education and training, IT and other services. VISIT: WWW.FRANCHISEBUSINESS.COM.AU
MAY/JUN 2016 | 112 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_113
- 113
2016-04-18T15:45:30+10:00
A-Z LISTINGS
Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren steve@ats.com.au www.appliancetaggingservices.com.au
Phone: 1800 634 227 Contact: Andrew info@briantracyglobal.com www.briantracyglobal.com
Start up costs from: $47,000 + GST
Start up costs from: $79,950 + GST Includes inventory for fast ROI.
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 45 franchisees grow profitable and successful businesses.
PROFILE: The name Brian Tracy is synonymous with personal and professional success. Our excellent reputation and highly-regarded programs are unrivalled and will give you brand credibility, prestige and trust in your business community. We are searching for high-calibre individuals who are self-motivated thinkers, looking for a business opportunity beyond the generic franchise. If you are an innovative leader with a knack for business and you want to build a solid financial future, take the next step and find about more about the Brian Tracy International.
No prior electrical experience is required - just a passion for safety and a commitment to growing your business. With low entry fees and minimal franchisee administration, an ATS franchise may just be the opportunity for you.
Phone: 1300 Cafe2U (1300 223 328) Fax: 02 9451 2105 Contact: Os Castaneda, Sales & Franchising Manager franchises@cafe2u.com.au www.cafe2u.com
Phone: 1300 659 676 Fax: 1300 659 675 Contact: Dan Toms customerservice@cashflowit.com.au www.cashflowit.com.au
Start up costs: $130,000 PROFILE: Cafe2U is Australia’s first and most successful mobile Café system. With over 250 franchises worldwide the business is rapidly growing due to a simple and proven business model. Cafe2U franchisees now have access to the unique “Acceleration Package” which fast-tracks success. This includes an experienced Franchise Development Manager to launch the business alongside the new franchisee in their own exclusive territory. Cafe2U builds a customer run that delivers a minimum of $500.00 a day before the Franchisee operates solo. The business is HACCP certified and has a ‘no compromise’ attitude when it comes to quality. This includes the Mercedes vehicle, commercial equipment and fitout, branding and marketing strategies and dedicated events co-ordinator. If you are ready to take control and enjoy working with people, a Cafe2U franchise provides you the perfect system to create your own destiny.
Phone: 1800 243 637 Fax: (02) 4587 8733 Contact: Alan Biddle alanbiddle@chemdry.com.au www.chemdry.com.au Start up costs from $39,950 + GST
PROFILE: Chem-Dry is Australia’s largest and most successful carpet and upholstery cleaning franchise. Established in 1986 as a healthy and green carpet cleaning alternative, today Chem-Dry cleans more carpet and surfaces than any other company. Using the company’s patented cleaning solutions and over 35 years of experience, our franchise partners are able to build successful businesses by making their customers’ homes and workplaces cleaner and healthier. Our franchise partners are passionate about providing their customers with the cleanest and healthiest homes. A Chem-Dry franchise is not just about residential and commercial carpet cleaning. Our franchise partners also clean upholstery, leather, tiles and grout, and are specialists in water damage restoration.
PROFILE: Cashflow It are the franchise finance experts. With competitive rates and flexible terms from 12 months to 5 years, Cashflow It can provide the funding that franchisors and franchisees need today. We offer flexible rental solutions, traditional leasing and business loans tailored to your requirements. What can we Fund - New equipment / Used equipment / Fit-outs / Store refurbishments / Re-financing from other lenders / Buying an existing franchise / National equipment roll-outs Franchise Accreditation - If you belong to a Cashflow It Accredited Franchise system, you can enjoy pre-approval and other exclusive benefits.
Phone: 03 9508 4465 Fax: 03 9508 4499 Contact: Sally Nathan Sally.Nathan@retailzoo.com.au www.cibo.com.au Start up costs: $220k - $300k + GST (Hole in the Wall model) $400k - $500k + GST (Kiosk model) $450k - $600k + GST (Street site location) PROFILE: CIBO Espresso was born from a passion to share the simple pleasures of the Italian lifestyle - wonderful coffee and quality food in a modern, stylish bar setting. Share an “Italian moment” whenever you choose, just by stepping through the door. We use 100 percent Premium Arabica coffee beans, roasted and blended to our own special recipe. Our baristas are trained to ensure a great shot every time. Adelaide has always had a passion for really good coffee and after identifying a gap in the market, the first ‘CIBO Espresso Bar’ opened in Rundle Street in 2000. It was such a hit, that the phenomenon has expanded across the country fast and is continuing to grow Australia-wide!
MAY/JUN 2016 | 113 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_114
- 113
2016-04-18T15:45:30+10:00
A-Z LISTINGS
Phone: 0407 059 603 Contact: Duncan Powell duncan@cocolat.com.au www.cocolat.com.au
Phone: +61 02 9207 8877 Contact: Rod Laycock rodl@civicms.com.au www.civicmanagedservices.com.au PROFILE: Civic Managed Services (CMS) is a professional service provider and experienced franchisor offering tailored solutions for small to medium sized businesses on a short or long term basis. CMS offers a full suite of business services, including Operations, IT Support, Online and Offline Marketing, Purchasing, Warehousing and Distribution, Finance and Management Reporting, Franchising and Strategic Management and Planning. CMS is ideally suited to provide infrastructure to businesses wishing to launch or expand their business, without the need to invest in costly staff recruitment. We have expertise and experience in a range of industries including retail, franchising, food, technology and education. CMS could be the cost effective solution to provide you with an experienced team to grow your business.
Start up costs: $200,000 +
PROFILE: “Now Franchising” At Cocolat we pride ourselves in our handmade artisan Products – Deserts, Chocolate Truffles, Gelato and Coffee. Our Team of Chocolatiers and Bakers use only the finest of ingredients in our full production kitchen based in the beautiful Adelaide Hills. Cocolat is a popular South Australia Icon which has just opened up their first store in St. Ives, Sydney. Now Franchising throughout NSW, VIC, SA, QLD, WA, NT and TAS.
Call us for an obligation free discussion.
Phone: 03 9923 3514 Contact: Ross Malcomson franchise@dodo.com www.dodo.com/franchise
Phone: 1300 720 622 Contact: Rian Bell supply@constructionsupplyservice.com.au
PROFILE: Construction Supply & Service (CSS) was established in 2003 with a view to providing a one stop solution for businesses in the QSR & restaurant industry. We can locate, design, build, equip and maintain your business. With 24 hour a day on call service techs we can make sure you are always operational. With over 500 builds completed we have the expertise to ensure that it is done right the first time. From custom one of a kind build and equipment supply through to franchisee stores we have the team and contacts to take care of all your needs.
PROFILE: Dodo Connect is a fun, vibrant and energetic technology and home utilities driven business. Core to Dodo’s success has been the provision of extremely competitively priced products, along with superior customer service. A Dodo Connect franchise provides you with low-cost entry, a simple business format, a wide range of products and services (including: internet, home phone, mobile phone and mobile wireless broadband, electricity and gas, plus vehicle, home and contents insurance. Dodo is backed by an ASX listed powerhouse the M2 Group, in a dynamic and growing sector.
Phone: 1300 131 888 Contact: Ashleigh Williams Franchise.recruitment@dominos.com.au www.dominosfranchise.com.au
Phone: +61 7 3036 1152 Contact: Karen Prescott karen.prescott@egnatium.com www.egnatium.com Start up costs: $100,000
Start up costs: $250,000 PROFILE: Looking for a new career path and want to be your own boss? Join the success of the Number One Pizza Company in Australia- Domino’s! Our objective is to ensure every franchisee in the network is successful by offering; • Proven Systems and procedures for single unit and multi-unit operators • Clear growth & development strategies • Un-Paralleled Support from a dedicated team • Comprehensive training programs • Constant innovation • Leading Marketing Strategies • Support through all stages of the store building process • Local franchise consultant to help with ongoing store operations Our stores generally cost between $300,000-$600,000 + GST we require you to have approximately 40% of the total investment in cash and/or available equity.
PROFILE: We are one of the first ever companies providing a franchise opportunity for a combined set of sustainable growth solutions including software, consulting, coaching implementation and training. Aiming to become a global player in B2B sustainable growth solutions and to ensure that our clients can benefit from a global network with a local presence. Through a suite of packages on: • Strategy management • Competency management • Appraisal management
• •
Learning management Experience management
Egnatium is a trademark designed by Egnitus Holdings Pty Ltd. Egnitus Holdings Pty Ltd is a leading B2B franchisor that has established a reliable network of franchisees within Australia, South East Asia and the Middle East.
Live your Dream and apply now.
MAY/JUN 2016 | 114 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_115
- 113
2016-04-18T15:45:30+10:00
A-Z LISTINGS
Phone: 1300 FASTWAY Fax: 02 9264 4966 fastway.com.au
Phone: 03 5975 8614 Contact: Sal El-Houli franchising@famousfish.com.au www.famousfish.com.au
Start up costs from: $25,000 Start up costs: Minimum $200,000 (Dependent on Site Conditions & Fitout Contributions) PROFILE: The Costi family have been retailers of premium-quality seafood since 1958. Our sumptuous menu remains true to its heritage of providing good old fashioned fish & chips, whilst also being continuously refined over the years to maintain a modern touch that is relevant to the ever changing food landscape. With seafood consumption in Australia having increased by 27% per capita since 1997 and remaining the #1 take-away food item sold by independent take-away shops, and with no multi-unit, integrated seafood operations currently in operation, this represents an exciting opportunity for you to capitalize on this significant gap in the market.
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: t Guaranteed income package* t Low start up costs t No weekend work t Ongoing business support & training t Exclusive territories t Perpetual franchise agreement with no ongoing fees 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: 02 8845 0100 Fax: 02 8845 0199 Contact: Karen Pollard franchise@gelatissimo.com.au www.gelatissimo.com.au
Phone: 03 9336 3200 Email: franchising@ fergusonplarre.com.au Website: www.fergusonplarre.com.au
Start up costs from: $350,000 Start up costs from: 250K PROFILE: Ferguson Plarre Bakehouses is a 5th generation bakery-café franchise and is ranked in the top ten franchise systems in Australia and in the top two for food in the Topfranchise Awards. We’re very proud to be able to offer you a full range bakery-cafe business model with no royalties and without the late nights and chocolate stained uniforms! With fresh product delivered to you daily, you get all the perks of owning a bakery (without the late nights or very early mornings) as well as the perks of owning a café.
A-Z
PROFILE: Australia’s leading gelato franchise is looking for outstanding franchisees. Prior food experience is not necessary however franchisees must have passion for the system and brand, leadership skills, and enthusiasm for delivering quality products through excellent customer service. Multi award winning Gelatissimo provides full training and on-going support from dedicated operational, marketing and development teams enabling them to produce artisan gelato fresh in store using a simple and proven system.
Fergsuon Plarre is the change you have been looking for.
L I S T I NGS
FOR A-Z LISTINGS ENQUIRIES CONTACT:
NATIONAL SALES & MARKETING MANAGER DAVID STRONG ON 02 8484 0905 DAVID.STRONG@CIRRUSMEDIA.COM.AU
Phone: 1800 689 550 Fax: 07 5591 9021 Contact: Maria Taylor Maria.taylor@rfg.com.au www.gloriajeanscoffees.com.au Start up costs: $320,000 - $450,000
PROFILE: Gloria Jean’s Coffees is tireless in the pursuit to serve the highest quality coffee, while making each and every guest feel like they are returning home when they step into any of the brand’s coffee houses. After opening the first coffee house in Australia, the business model was perfected for international growth. Gloria Jean’s Coffees footprint has grown to over 800 coffee houses in 40 markets worldwide. Gloria Jean’s Coffees vision is to be the most loved and respected coffee company worldwide, and with the biggest international footprint of any of RFG’s Brand Systems the brand is well on its way to making this vision a reality.
MAY/JUN 2016 | 115 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_116
- 113
2016-04-18T15:45:30+10:00
A-Z LISTINGS
Phone: 07 5515 0118 Fax: 07 5500 3716 Contact: Geoff Biddle mail@groutpro.com.au www.groutpro.com.au
Phone: 0412 692 052 Contact: David Wilkinson sales.au@inxpress.com inxpress.com inxpress.com.au/franchising Start up costs from: $64,950 +GST
Start up costs from: $39,950 + 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.
Phone: 02 9527 5444 0439 130 499 Contact: Luke Manning Luke@justcuts.com Justcuts.com
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 12 countries with over 300 franchisees globally, InXpress is now accepting applications to grow the Australian business. Benefits to franchisees include: • Low entry costs • Low risk • No inventory/warehousing
For more information about becoming an InXpress franchisee contact us now.
IN- HOME , S OCIAL & L IF E S T YL E S UP P ORT
Start up costs: $85,000 - $120,000 (Kiosk) $160,000 - $240,000 (Salon) PROFILE: We believe in making this easy and convenient for all our Franchisees. That’s why we offer a fixed franchising fee, flexible finance options and ongoing business, operational and marketing support to all our Owners. It’s no wonder almost half of our Franchisees own two or more salons each! Our business model has been tried, tested and refined over 25 years, helping us become the largest hairdressing company in the Southern hemisphere. And, did you know, you don’t have to be a hairdresser to own a Just Cuts™ salon? Our latest innovation, the Just Cuts™ Kiosk Salon, also allows you to buy into a new lifestyle from just $85,000. Designed to function as a smaller, compact, satellite site within high traffic shopping centres, they’re a great opportunity for those looking to take the first step into franchising or a fantastic way for existing owners to expand.
• Minimal employee base • High income potential • Ongoing training and support
Phone: 0459 654 146 Contact: Franchise Manager franchise@justbettercare.com http://justbettercare.com/ franchise-opportunities/ Start up costs: $80,000 - $150,000+
PROFILE: Just Better Care is Australia’s largest franchised provider of in-home care and support services predominantly in aged and disability care. The Community Care sector is estimated to generate over $43b in revenue during 2016 and with a projected growth rate of 6.4% per annum over the next 5 years. Australia is growing faster than at any other time in history and the population is living longer. The number of people aged over 85 years is predicted to increase by 30% in the next 10 years. This is a high demand industry with serious long term business growth potential.
Find out what Just Cuts™ can do for you – give Luke Manning a call today.
Phone: 03 9460 6700 Fax: 03 9460 3099 Contact: Brendan Flanagan franchising@laporchetta.com.au www.laporchetta.com
Phone: 0404 755 759 Contact: Simon O’Brien sobrien@lavacoffee.com.au lavacoffee.com.au
Start up costs: $300k + (site dependant)
Start up costs from: $95K
PROFILE: Join the largest Italian restaurant chain in Australia and New Zealand. You will love taking part of serving our guests quality Italian food, to order, using fresh ingredients. We are looking for passionate food lovers with a strong work ethic and drive to join our family. You bring the drive and commitment and La Porchetta will provide the proven systems, training and support to achieve success. WHY LA PORCHETTA? • A proven profitable operation. • We are a much loved and recognisable national brand. • We have strong local area marketing support and advice. • Be part our dynamic and engaged family of restaurants that love people. Join our team of restaurant owners who love getting together and share ideas.
PROFILE: Warming to the dream idea of owning a HOT new Lava Coffee franchise? Our awesome Coffee ensures that we have both very happy customers and franchise partners. Our Franchise Partners are able to enjoy a great business, whilst avoiding the high set up costs associated with other leading brands. Our concept includes the latest in design innovation. With modern and functional retail kiosks, placed in appealing locations, our winning formula means our turnkey franchise package and ongoing costs are a fraction of our competitors, with no compromises on quality. Discover the substance behind our brand and enquire about joining a winning team and owning your dream coffee franchise today.
We offer a flat fee structure that allows you to build your business faster. Minimum Investment: Dependent on Site Conditions $300k+
MAY/JUN 2016 | 116 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_117
- 113
2016-04-18T15:45:30+10:00
A-Z LISTINGS
Phone: 1300 453 284 Fax: 07 5564 9045 Contact: Casey Reid recruitment@theleatherdoctor.net.au www.myleatherdoctor.com.au
Phone: 1800 068 111 Fax: (07) 3100 7888 Contact: Aroha Leigh Email: opportunities@lenards.com.au Website: http://franchise.lenards.com.au/
Start up costs from: $55,000 plus GST
Start up costs: $350k-$400k turnkey
PROFILE:
PROFILE:
The Leather Doctor is the leading international brand in Australia for mobile leather repairs. With over 60 franchisees in Australia and teams in New Zealand and Dubai, this is truly a turn-key business with proven success. No previous experience required. All training included. For a unique business opportunity with little competition, great income and amazing support, call today for an information pack.
Lenard’s Chicken is Australia’s favourite chicken shop and a leading brand among Australia’s fresh food retailers. Our unique concept of value-adding amazing ingredients and flavours to fresh chicken has established our offer as the leader in the marketplace.
Phone: 0457 677 986 Contact: Paul Kasper franchising@mbe.com.au Start up costs from: $185K
Since the first store opened in Queensland, Lenard’s has sold more than 500 million chickens, served more than 200 million customers and injected more than $2 billion into the Australian poultry market. Today, Lenard’s employs more than 2,000 staff in nearly 300 franchises, supermarkets and butchers across Australia and remains one of the great success stories of Australian retailing.
Phone: 02 8197 3080 Contact: Michael Savvas Michael.savvas@madmex.com.au www.madmex.com.au Start up costs: $400-$600K PROFILE: Healthy, fresh, authentic and high-quality Mexican food in a fast casual environment.
PROFILE: Looking for more than just a print and design company? Mail Boxes Etc. is part of the world’s largest Business Services franchise system, with over 1,500 MBE Centres world-wide and growing. We offer a multi-income stream of printing, shipping and mailing services, just to name a few. Working Monday to Friday, 8am to 5:30pm, with no spoilage, is one of the many benefits of owning your own Centre. No experience is necessary, as we partner with our suppliers to provide comprehensive and on-going training. Our National Marketing Program will help you identify and find your clients, and our National Supplier Agreements, will ensure you’re always purchasing as cost effectively as possible. With MBE, it’s an investment in your future. Visit us on www.mbebusinessfranchise.com.au
Phone: 03 9604 9400 Fax: 03 9600 3313 rxt@marshmaher.com.au mim@marshmaher.com.au www.marshmaher.com.au
Voted the best Mexican restaurant nationwide in the Lifestyle Food Awards, Australia’s best fresh Mexican restaurant, Mad Mex is expanding and looking for passionate and enthusiastic franchisees. Serving gourmet, restaurant quality food in a fast paced environment, Mad Mex is ideally positioned neatly between high end restaurants and food court operators. Mad Mex enjoys the best of both worlds! Fast enough to create a high volume takeaway business but a unique and high quality product offer that is sufficient to command a premium price point. Mad Mex believes in creating a complete Mexican dining experience, so our locations are typically licensed and we provide a range of Mexican beers, tequilas, and our famous $8 margaritas. Our target market is at the high end of the fast food market; and we want our customers to feel good about eating at Mad Mex every day, both in terms of value and quality.
Phone: 03 9016 7877 Contact: Danielle Joynson milestoneaustralia@milestone.dk www.milestonesys.com
PROFILE: Robert Toth and Marianne Marchesi Well recognised and published franchise specialists with over 30 years combined industry knowledge and experience. Providing advice in: 1. International Franchisors and Franchising. 2. Master Franchising. 3. Dispute Resolutions – solutions and strategies. 4. Franchisee Advice and fixed fee reports. 5. Sale/Purchase of franchise systems. 6. IP/Trademark advice. 7. Company structures and tax advice. 8. ACCC and Consumer Law advice.
PROFILE: Milestone Systems is a global industry leader in open platform IP video management software, founded in 1998 and now operating as a stand-alone company in the Canon Group. Milestone technology is easy to manage, reliable and proven in thousands of customer installations, providing flexible choices in network hardware and integrations with other systems. Sold through partners in more than 100 countries, Milestone solutions help organizations to manage risks, protect people and assets, optimize processes and reduce costs.
Fixed fee to upgrade franchise documents for 2015 Code Compliance.
MAY/JUN 2016 | 117 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_118
- 113
2016-04-18T15:45:30+10:00
A-Z LISTINGS
Phone: 1300 961 588 Contact: Luxottica Franchising Team franchising@luxottica.com.au luxottica.com.au/franchising
Phone: 1300 650 330 Fax: (02) 9922 6738 Contact: franchising@mortgagechoice.com.au www.mortgagechoice.com.au/ join-mortgage-choice.aspx
PROFILE: Since 1992 Mortgage Choice has revolutionised Australia’s home loan market. Today we are a fully-fledged financial services business, offering a broad product suite including financial planning, car loans, business loans, insurances and credit cards. Are you ready to become part of our success story? With Mortgage Choice, you’ll receive unrivalled training, valuable qualifications and personal coaching to set you on the path to success. You’ll have the backing of Australia’s leading financial services provider and our well-known brand, and the rewards of our generous commission structures and incentive-based bonuses. If you’re driven to build your own successful financial services business, please contact us at 1300 650 330 or email franchising@mortgagechoice.com.au
Start up costs from: $250,000
PROFILE: OPSM is a highly respected and market-leading franchise brand with nationwide opportunities available to both business professionals and optometrists. From a single store in Sydney to over 400 OPSM stores across Australia and New Zealand, our passion has remained constant. We love eyes. When you partner with OPSM you’ll benefit from award winning systems, support, training and business development programs; and be part of an innovative, professional network. An OPSM franchise makes great business sense. You can benefit from scalable and multi-site scenarios, backed by proven business systems and the reassurance that you’re working with world-leading technology and products.
Phone: 1300 977 988 Fax: 1300 977 988 Contact: Robin Lau robinlau@postnet.com.au postnet.com.au
Phone: 02 8905 8401 Contact: Gary Glen Gary.glen@qsrh.com.au www.oporto.com.au From approx.: $500K
Start up costs: $150,000
PROFILE: Oporto was Australia’s first Portuguese-style chicken restaurant and is renowned for its fresh-not-frozen, grilled-not-fried delicious tender chicken and fresh vibrant chilli sauce. From tantalising the taste buds of local Bondi residents with its first store in 1986, Oporto now satisfies over 13 million customers per year across 140 stores, and that number is forever growing.
PROFILE: PostNet offers full-service digital printing and finishing services. We provide everything from wedding invitations and graduation announcements to business cards, brochures, flyers, catalogues, posters, banners and vehicle graphics. We also offer marketing solutions including direct mail, email marketing, graphic design, website creation, business services and private mailboxes rental services.
Oporto® has come a long way over the last 29 years, however it has maintained the heritage of high quality, great tasting, authentic fresh-grilled chicken and burgers. With new store fitouts, a new customer rewards program and its amazing food, Oporto® is an exciting business opportunity.
PostNet Neighbourhood Business Centre helps our customers to pack and ship anything to anywhere using the major courier carriers — FedEx, DHL, TNT and E-Go.
A-Z
So many services, one stop solutions provider, that’s PostNet ! We’re The Business Behind Your Business. Create I Print I Ship I Support I Grow
Phone: 07 3456 4255 Fax: 07 3456 4299 Contact: Phil Hill phil.hill@propertyclub.com.au www.propertyclub.com.au Start up costs from: $49,000
PROFILE: Property Club was estalished in 1994 as The Investors Club, and has grown to become one of Australia’s most successful property investing organisations. By educating and assisting members to purchase carefully selected investment properties in Australia, Property Club has worked together with investors and property vendors with over 19,000 properties purchased to date. Success of the Club is evident through the 4,700+ members of our Property Millionaires Club. Property Club now offers an opportunity to join our existing 21 Franchisees. Full training, supported by a dedicated team of head office staff and property researchers will be provided to successful applicants.
L I S T I NGS
FOR A-Z LISTINGS ENQUIRIES CONTACT:
NATIONAL SALES & MARKETING MANAGER DAVID STRONG ON 02 8484 0905 DAVID.STRONG@CIRRUSMEDIA.COM.AU
MAY/JUN 2016 | 118 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_119
- 113
2016-04-18T15:45:30+10:00
A-Z LISTINGS
Phone: 1800 809 913 Fax: 03 8699 1555 Contact: Anna Goncalves franchising@ questapartments.com.au www.questfranchise.com.au
Phone: 07 5591 3242 Fax: 07 5591 9021 Contact: Michael Marr Michael.marr@rfg.com.au www.rfg.com.au
Start up costs: $750,000 upwards PROFILE: Quest Apartment Hotels is the largest and fastest growing apartment hotel operator in Australasia, with a network of 150 franchised properties across Australia, New Zealand and Fiji. For over 25 years, Quest has provided convenient locations, reliable standards and flexible living conditions for extended stay corporate travellers among Australia’s top 500 companies. Quest is now one of the top 15 apartment hotel providers in the world, and widely recognised as the market leader of apartment hotel accommodation in Australia. To become a Quest Franchisee you must be prepared to make a significant investment and commitment to the business, both personally and financially.
PROFILE: Founded in 1989 as the owner and manager of around 50 Donut King and bb’s Café stores, and Listed on the Australian Securities Exchange (ASX) since 2006, Retail Food Group (RFG) now has a strong portfolio of world class franchise systems with an extensive global footprint. RFG is the owner, developer and manager of Donut King, Brumby’s Bakery, Michel’s Patisserie, Gloria Jean’s Coffees, It’s A Grind, The Coffee Guy, Café2U, Pizza Capers Gourmet Kitchen and Crust Gourmet Pizza Bar franchise systems.
Phone: 1300 4 REDCAT (1300 473 322) Fax: 03 9696 1553 info@redcat.com.au www.redcat.com.au
Phone: 02 8905 8401 Contact: Gary Glen Gary.Glen@qsrh.com.au www.redrooster.com.au From approx.: $600K
PROFILE: Red Rooster is Australia’s largest roast chicken quick service restaurant chain. Since opening the first restaurant in 1972, Red Rooster has become an iconic Australian brand. There are currently 360 restaurants across Australia and this number continues to grow. The strength and scale of the network makes Red Rooster a great proposition for franchisees. In addition to its well-known and loved roast chicken and its famous chips, Red Rooster continues to invest in innovation, most recently launching a range of premium chicken burgers and wraps, as well as launching a new home delivery service in selected locations. As one of Australia’s most recognised brands and with a well-established support network, Red Rooster offers exciting business opportunities.
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.
Phone: 1800 762 766 Fax: 02 9837 9199 Contact: Les Coppin les.coppin@snapon.com www.snapontools.com.au
Phone: 02 8303 2224 Contact: Stuart Ratcliffe franchise@redspot.com.au www.redspot.com.au Start up costs from: $140K
Start up costs from: $50,000 PROFILE: What we offer: An opportunity to join the world’s largest car rental group, Enterprise/Alamo/National Car Rental and Australia’s largest independently owned car rental company, Redspot Car Rentals. As part of the Redspot/Enterprise network of locations your business will be represented in all the groups international and domestic marketing activities and on all booking channels worldwide. Are you a good fit? Are you a dynamic person who loves dealing with people and delivering top quality service? Are you active in your local community and have the attitude and dedication to operate in a fiercely competitive market? Do you have access to capital/finance? Are you able to follow a proven business system and generate new business using our local marketing programmes?
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. After more than 25 years in the Australian market, Snap-on continues to solidly perform, providing robust financial results for its network of over 170 franchisees. Extensive training and ongoing support is provided - no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.
MAY/JUN 2016 | 119 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_120
- 113
2016-04-18T15:45:30+10:00
A-Z LISTINGS
Phone: 03 9830 4166 Fax: 03 9888 6327 franchising@snooze.com.au www.snooze.com.au/franchising
Phone: 08 8376 3016 Contact: George Karamalis info@st-louis.com.au www.st-louis.com.au
Start up costs from: $450,000
Start up costs from: $350,000
PROFILE: As one of Australiaâ&#x20AC;&#x2122;s longest-running, successful and innovative franchised business, Snoozeâ&#x20AC;&#x2122;s experience in the bedding industry is second to none. With 78 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: â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘
Vendor finance assistance NAB & ANZ accreditation Sales and product training Business management support
â&#x20AC;˘ A national marketing program â&#x20AC;˘ IT services â&#x20AC;˘ Franchisee Advice and fixed fee reports
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.
Phone: Toll Free Australia - 1800 630 355 New Zealand - 0800 444 618 Fax: 07 3852 4081 Contact: Franchise Administrator ssa@subway.com www.subway.com
Phone: 02 9898 8608 Contact: Chris Fitzmaurice enquiries@swimart.com.au 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: SubwayÂŽ is the worldâ&#x20AC;&#x2122;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 SUBWAYÂŽ brand has been helping individuals build their own independently operated business â&#x20AC;&#x201C; run by people just like you! From step one, throughout the entire franchise process, the SubwayÂŽ 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 youâ&#x20AC;&#x2122;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: 02 9723 1011 Fax: 02 9727 6771 Contact: Nick Avgerinos franchise@cheesecake.com.au www.cheesecake.com.au
Phone: 13 26 13 Fax: 08 8220 4588 info@viphomeservices.com www.viphomeservices.com Start up costs from: $25,000
Start up costs from: $200,000 - $800,000
PROFILE: The Cheesecake Shop opened in 1991 and has developed into an Australian favourite with a massive network of almost 200 stores across Australasia.
PROFILE: V.I.P. was the first company to start franchising in home services in 1979.
Our award winning system makes for one of the simplest businesses to operate.
V.I.P. has franchise opportunities available in: t ( BSEFO . BJOUFOBODF BOE -BXO . PXJOH t )PNF $ MFBOJOH t $ PNNFSDJBM $ MFBOJOH
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 donâ&#x20AC;&#x2122;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.
V.I.P. has over 1100 franchisees across Australia and New Zealand.
Over the last 35 years, V.I.P. has helped over 4,000 people just like you become successful business owners by providing: t *OJUJBM BOE POHPJOH USBJOJOH coaching and mentoring t " GGPSEBCMF GSBODIJTF PQUJPOT t / BUJPOBM BOE MPDBM NBSLFUJOH
MAY/JUN 2016 | 120 | WWW.FRANCHISEBUSINESS.COM.AU
t " O FTUBCMJTIFE DMJFOU CBTF t " DDFTT UP B OFUXPSL PG GSBODIJTFFT t " O JOJUJBM TUBSU VQ LJU TP UIBU ZPV BSF ready to go
FR1605_121
- 113
2016-04-18T15:45:30+10:00
A-Z LISTINGS
Wisewould Mahony Lawyers Lawyers in love...... with Franchising
Phone: 03 9612 7297 Fax: 03 9629 4035 Contact: Melissa Strain melissa.strain@wisemah.com.au www.wisewouldmahony.com.au
Phone: 1300 655 559 Contact: Jonathan Payne joinus@xpresso.com.au www.xpresso.com.au www.facebook.com XpressoMobileCafe Start up costs: $119,500 + GST turn-key!
PROFILE: Experienced Franchise Lawyers. Member Franchise Council of Australia (FCA), International 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: • Drafting & review of Franchise documents • Legal and consulting advice to Franchisors & Franchisees • Dispute resolution – mediation – strategies and solutions
• Code compliance requirements • Sale/Purchase of Franchise Systems & Business • Master Franchising • International Franchising
Call or email for a complimentary brochure for Franchisors and Franchisees.
PROFILE: Xpresso Mobile Cafés operate in large geographical territories nationally where there are limited fixed location café options for the workforce in commercial and light industrial precincts. We supply premium Di Bella Coffee products – both hot and cold including frappés, energy drinks, cold press coffee drinks and bottled water. The average spend from each customer is also increased by providing lunch options such as awesome salads, gourmet wraps, sandwiches, cookies, banana breads and Ben & Jerry’s ice cream products. Franchisees further boost their income by attending weekend community, sporting and school events which do not need to be in their usual territory. Xpresso Mobile Café has recently won 2 awards placing it in the Top 10 Franchises in Australia in the areas of Passion and Lifestyle.
Phone: 0414 669 101 Contact: Stephen Spitz stephen.spitz@xpressodelight.com.au www.xpressodelight.com.au
Phone: 1300 139 913 Fax: 07 5587 7223 info@zbm.com.au www.zbm.com.au
Start up costs from: $59,990 + GST
PROFILE: Invest in an Xpresso Delight franchise and seize the opportunity to profit from one of the fastest growing markets on the planet. As the number of savvy, educated coffee drinkers has boomed, the market has exploded! This pent up demand for gourmet coffee in the workplace is very poorly met. Each day, thousands of workers trek to the nearest café to pay as much as $4.00 for their morning and afternoon coffees. This is the premise of Xpresso Delight - transplanting the cafe into the heart of the workplace at a fraction of the price that people pay normally.
PROFILE: Zoo Business Media is a full service supplier of innovative music, video and voice messaging solutions to hundreds of franchised businesses around Australia. We provide the latest in digital, customisable in-house radio and branded, music video technology. We help you create the perfect ambience for your retail stores, gyms, restaurants or bars with the latest internet-delivered music and messaging services - inclusive of public performance fees. Contact us on 1300 139 313 and find out how we can make your franchised business sound great!
START YOUR JOURNEY Thinking about buying a franchise? www.FranchiseBusiness.com.au
MAY/JUN 2016 | 121 | WWW.FRANCHISEBUSINESS.COM.AU
FR1605_122
- 122
2016-04-18T19:52:31+10:00
ADVERTISING INDEX
INCORPORATING FCA NEWS
* INDICATES FCA MEMBER
Appliance Tagging Services
86*
Marsh & Maher
96*
Brian Tracy
60*
MBE
99*
Cafe2U
38,39*
Milestone
85
CashFlow It
7*
Mortgage Choice
89*
Chem-Dry Australia
11
Oporto
9*
Cibo Espresso
21*
Postnet
4
Cirrus Media
101, 109
Property Club
76
Civic Managed Services
55*
Quest Apartment Hotels
88*
Cocolat
52*
RedCat
95*
Construction Supply & Service
53
Red Rooster
49*
Dodo Services
69*
Redspot
83
Domino’s
31
Retail Food Group
62-63*
Egnitus
103
Snap-on Tools
15*
Famous Fish
70
Snooze
91*
Fastway Couriers
123*
Specialised Events
2
Gelatissimo
35*
St Louis
17
Gloria Jean’s Coffees
75*
Subway
33*
Groutpro
43*
Sumo Salad
47*
InXpress
79*
Swimart
57*
Just Better Care
82
The Cheesecake Shop
25*
La Porchetta
98*
The Coffee Club
80*
Lava Coffee
66*
VIP Franchise
61*
Leather Doctor
29*
Xpresso Delight
51*
Lenards
124*
Xpresso Mobile Café
71*
Mad Mex Fresh Mexican Grill
41*
Zoo Business Media
107
MAR/APR 2016 | 122 | WWW.FRANCHISEBUSINESS.COM.AU
FR0715_000_FAS
-
1
2015-06-23T12:01:31+10:00
FR1605_000_LEN
-
1
2016-04-01T14:45:43+11:00
THE CHICKEN SPECIALISTS In 2016, Lenard’s Chicken embarks on an exciting new chapter in its 28 year history. Our new contemporary store design is already attracting rave reviews from our customers.
NEW STORES NOW OPEN IN:
For years our customers have asked for Lenard’s to create a premium range of Roast Chicken. In 2016 their dreams are answered when an amazing array of infused Roast Chicken flavours will hit the market. The foray into a new hot range will catapult Lenard’s Chicken into the market leading position it aspires to continue to own for the next 30 years.
NEW STORES OPENING SOON IN:
To ensure you are part of this journey with Australia’s favourite fresh chicken retailer, register your interest now with Aroha Leigh at opportunities@lenards.com.au or call 1800 068 111.
Wedndouree VIC, Lucas VIC, Hervey Bay QLD, The Avenues QLD Sugarland QLD, Loganholme QLD, Bondi Junction NSW, Warwick WA, Baldivis WA, Castlemaine VIC, Harrisdale WA