HOW TO WIN AT RETAIL
OPPORTUNITIES
IN TRAVEL
Franchising www.franchise.net.au
Your essential guide to
5
TAX TIPS FOR NEW BUSINESS
Nov/Dec 2013 VOL.26/No.6
buying a franchise
How to spot a money-making franchise
WHY CASUAL DINING is a tasty alternative
Getting value from your franchise fees
WHAT
RFG AUS $6.95 NZ $7.95
DID NEXT
PLUS: HAIRHOUSE WAREHOUSE, GRILL’D, STEP INTO LIFE, BIG4
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Service is our Success
Contents NOV/DEC 2013 | YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE 58
Book in for business Options in the accommodation and travel sector
66
Working with numbers The flexibility of the financial services industry
28
Issues 74
12 ways to get closer to financial success
52
Inspire 10 16
A fresh start Hairhouse Warehouse turned these franchisees’ fortunes around
18
94
78
Cover story Retail Food Group Interview
An active opportunity
22
84
88
Editorial
6
News
106 Legal
32
Not every business will offer the same fee structure
Successful siblings at Grill’d
How to...
Foreign investment
94
A smokin’ success The healthy food franchise
114 Viewpoint
Opportunities
116 Glossary
40
130 Advertisers’ index
99
What to do when it all goes wrong How to handle business failure
103 5 tax tips for new business What you need to know to minimise your tax payments
106
A tasty alternative Casual dining is on the menu
117 Checklist 118 A-Z Listings
Find the right franchisor How can you best research the opportunities?
A new option: Extreme Pita
110 Sketch 112 People
Shaping up Melburnians
Food trucks and US style BBQ
36
Getting value from your franchise fees
Award-winning franchisees, brothers Matt and Brad Walker
Step into Life franchisee Donna Douglas shares her story
REGULARS
What it takes to win at retail Shane Flynn talks retail do’s and dont’s
A South African couple’s journey
28
What makes a great operations manual? Every franchisee needs one
We take a look at BM Sports
26
5
How to spot a moneymaking franchise
52
In good times and in bad How three retail franchises are trading up WWW.FRANCHISE.NET.AU
NOV/DEC 2013 FRANCHISING | 3
OVER 500 FRANCHISE CONVENIENCE STORES AND GROWING! You may not be aware that Caltex Australia operates one of the largest convenience retail networks across the country, with both company and franchised stores operating predominantly under the ‘Caltex Star Mart’ brand. Caltex is a well-recognised and reputable brand with outstanding systems and tools to enable operational success. New franchisees entering the business will be provided structured training and support on all key operational elements to set them up for success in their venture. The franchise community is strong and supportive with organised franchise councils and regular communication meetings, to ensure franchisees contribute to the brand success. Caltex has also held international conferences every 2 years with significant franchisee attendance, in locations such as China, Mauritius, Vegas and the most recent event was held in Dubai. This conference rewards high performers and is a highly anticipated event on any franchisees calendar. To find out more about our Franchise Opportunities, visit www.caltex.com.au and click on ‘Franchising at Caltex’.
Welcome
Franchising Publisher Martin Sinclair P: 02 8484 0607 martin.sinclair@cirrusmedia.com.au Editor Sarah Stowe P: 02 8484 0900 sarah.stowe@cirrusmedia.com.au Journalist Brea Carter P: 02 8484 0661 brea.carter@cirrusmedia.com.au
What’s on your Christmas list?
Contributing Journalists Domini Stuart
A
Columnists Joanna Bairimidis Karli Furmage Andrew Terry Greg Nathan Graphic Designer Rizwan Nawaz P: 02 8484 0622 rizwan.nawaz@cirrusmedia.com.au National Sales and Marketing Manager David Strong P: 02 8484 0905 david.strong@cirrusmedia.com.au Production Co-ordinator Laura Panameno P: 02 8484 0772 laura.panameno@cirrusmedia.com.au Managing Director Jeremy Knibbs jeremy.knibbs@cirrusmedia.com.au For subscription enquiries call customer service: 1300 360 126 ISSN: 1321-408X
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SARAH STOWE Editor
re you feeling festive yet? While the major stores are committed to getting us into a Christmas spirit the sight of cards and puddings lining the aisles in October can send some of us into a bah-humbug mood. The ongoing challenge for retailers to persuade all of us to part with our hard-earned wages in their stores continues but while everyone will have some festive twist to their December trading, there are some businesses that are a less seasonallydriven than others. Check out our retail opportunities feature and read about three such retailers. So what’s on your Christmas list? If you’re eyeing up a franchise or just thinking about a new lifestyle and business focus then now is a great time to consider your options. And there are a host of diverse businesses available, from casual dining outlets to financial services to accommodation providers – all sectors we review in this issue. Any potential investor needs to conduct thorough research and top of mind will probably be sourcing a financially viable business that will deliver return on investment. In this edition we look at some of the key issues: what to consider when you look for a money-making franchise, how to research franchisors, what value for money looks like in franchise fees, and the components of a good operations manual.
Why not take time between now and the New Year to review your investment options There are five practical tax tips for new businesses and an in-depth legal look at understanding your franchise agreement. In our columns this month we have relationship guru Greg Nathan sharing his learnings about franchising, and regular contributor Professor Andrew Terry observing a positive trend for franchising. So why not take time between now and the New Year to review your investment options? Look out for the Franchising Yearbook and Directory 2014, a fantastic guide to business advice and a source of franchise and licensed opportunities. It’s in your newsagency now. It still seems a little early, but... Merry Christmas from the Franchising magazine team. Until 2014....
All Franchising material is copyright. Reproduction in whole or in part is not allowed without written permission from the Editor. © 2013. Opinions expressed in Franchising are not necessarily those of Franchising or Cirrus Media.
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NOV/DEC 2013 FRANCHISING | 5
News ONLINE NEWS | WWW.FRANCHISE.NET.AU
EYEWEAR group Luxottica has sold its Bright Eyes brand back to two businessmen who owned the sunglass business for eight years. Ralph Edwards and Geoff Harbert were part of a local consortium that had bought Bright Eyes Sunglasses in 2000 and they expanded the business from 80 to 140 franchisees. In 2007 the sunglass business was sold to Oakley Inc, which later joined the Luxottica portfolio that includes OPSM, Budget Eyewear and Laubman & Pank. Now Edwards and Harbert have negotiated an agreement with Luxottica to buy back the business of 50 retail stores in Australia. Edwards said “Bright Eyes is a great business F R 1 1with 1 3 a_bright 0 0 0future _ S A and L there 1 2 has not been a day that we have not
Image: Thinkstock
Luxottica’s Bright Eyes sunglass brand sold
regretted selling it. Geoff and I are very very good company but this was the right passionate about the business. We have opportunity and the right time. They’re been a winning combination before and still very much a part of it through have joined forces to do it again. There are no plans for immedi0 1 3 - 1 0 - 1 7 T 1 4 : 2 2 : 4 1 + 1 1 : supplies.” 0 0 He told Franchising “Luxottica is a ate expansion, Edwards said.
NOW FRANCHISING Salty Rooster Founder
Jimmy Sagiotis 6| FRANCHISING NOV/DEC 2013
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3 LOCATION PER YEAR The World Has Never Tasted So Good®
M. 0437972728 W. 02 99777373 jimmy@saltyrooster.com.au | www.saltyrooster.com.au
News WWW.FRANCHISE.NET.AU | ONLINE NEWS
Coffee Club marks 25th year TO CELEBRATE a quarter of a century in business, the Coffee Club has introduced a number of changes to its menu offering and will update elements of its store design. Stores will be fit-out with new crockery and coffee and cabinet options, and staff will receive new uniforms. Food-wise, The Coffee Club director John Lazarou said the new look menu, which includes a daytime and ‘after 5pm’ element, takes its inspiration from contemporary cafes situated in both Australia and abroad. “Our main focus was on elevating the quality of our menu while also offering our customers a more contemporary experience. “We had a specialised team who was responsible for bringing new inspiration and ideas which could be adopted for The
Consolidated Foods Pty Ltd, the company owned by former Hungry Jacks CEO Tim Tighe and business partner Sean Tomlinson, has recently acquired WA based cafébakery chain Croissant Express.
Image: The Coffee Club
Coffee Club,” he said. The ‘after 5pm’ menu will be available at selected cafe-bar-restaurants and includes a range of savoury items as well as sweet dishes for dessert.
Precious Cargo childcare to franchise nationally A SOUTH AUSTRALIAN based childcare business is opening up to franchisees and has appointed the Sherpa Group to help with its growth strategy. Precious Cargo, a Montessori childcare centre chain of four company owned outlets, has plans to grow nationally and then internationally. Founder Cheryl Shigrov opened her first centre seven years ago and has just been awarded the 2013 Telstra South Australian Business Woman Award. Vicki Prout heads up the Sherpa Group consultancy and told Franchising “Everywhere you go a successful franchise has longevity and constant need. Every child care centre and after school care centre can’t keep up with demand. “Montessori is a bit special. Precious Cargo is looking for a fairly aggressive but controlled growth.” The plan is for 57 franchise outlets to open over five years.
IN BRIEF
Image: Precious Cargo
The first Sydney-based Harvest Market store, the new fruit, vegetable and fresh retailing concept from Metcash, has opened in the suburb of Rouse Hill. Anytime Fitness Australia has installed virtual group exercise platform Fitness On Request in its gyms. Australian bakery-café chain Pie Face has signed an agreement to open 100 outlets in the Middle East over the next 10 years. Swimart has introduced the Swimart Academy, a new training system that caters to both new and existing franchisees. The Michel’s Patisserie chain has opened its first ‘store of the future’ in Lilydale, Victoria and the result has been an initial boost in sales. Cleaning franchise Keen to Clean has appointed a business development manager for Victoria and New South Wales. Real estate franchise Changing Places has enlisted the assistance of a professional designer to fine tune its website.
“This is a very strong brand in South Australia, and we are about to sign up three franchisees in South Australia. In Adelaide there are waiting lists for services, and before we opened the first site it was at 75 percent occupancy.” Training in the Montessori method is available for prospective franchisees. WWW.FRANCHISE.NET.AU
Elite Carpet Dry Cleaning has gone mobile and in just six weeks has reduced response time from at least four hours to four minutes. Coffee franchise Gloria Jean’s has opened its first ever drive-thru outlet at North Lakes. NOV/DEC 2013 FRANCHISING | 7
News ONLINE NEWS | WWW.FRANCHISE.NET.AU
GFC proves a winner for fast food franchises THE GLOBAL FINANCIAL CRISIS (GFC) has seen Australians opt for fast food outlets over their independent counterparts, and BIS Foodservice’s Fast Food 2013 Report Series has found they are most popular with mid-to-high income earning women. According to the report series, over the past 12 months Australians spent $15 billion dollars worth of their hard-earned cash on the fast food industry, around $11 billion of which was on food, and $4 billion on beverages. Hamburgers and hot chips are the most popular form of fast food - 141 million servings of hamburgers and 193 million servings of hot potato chips were consumed in the past year. Outlets that offer fast food yet do not fall under the brand of a fast food chain, such as Chinese takeaways, fish and
chips shops and pizza outlets have struggled during the GFC. In 2005, 8,969 independent fast food outlets were in operation across Australia, meanwhile in 2009 this dropped to 8,498. In contrast, fast food franchises have increased in outlet numbers by an average 5.3 percent annually over the same period, and snack food chains have increased by 10.8 percent on average per annum in this period. The report series points to the fact that the entire foodservice industry, which encompasses restaurants, cafés and clubs, could struggle over the next six to 12 months. There have been fewer visits to fast food restaurants in the past six months, with a net decline of 41 percent reported, and consumers are expected to decrease their visits by a further 26 percent over the next six months.
Image: Thinkstock
Franchised Food Co acquires gelato chain
Image: Trampoline
8| FRANCHISING NOV/DEC 2013
CEO STAN GORDON has added another food brand to the Franchised Food Company (FFCo) portfolio, Australian gelato chain Trampoline. The latest acquisition forms part of Gordon’s expansion plans for FFCo, which already encompasses Cold Rock Ice Creamery, Pretzel World, Nutshack and the Mr Whippy brands. The gelato chain currently has 13 sites in Victoria and the Northern Territory, and Gordon is looking to increase its nationwide presence. A number of other brand take overs are also in the works, which according to the company, if completed will see aggressive national expansion in the franchising sector. Gordon said he couldn’t be more excited or thrilled to add Trampoline to the FFCo family, and believes it complements the company’s existing brands perfectly. “One of the most important things we WWW.FRANCHISE.NET.AU
look for in an acquisition is that the brand fits well into our existing vision. “Like all of our brands, Trampoline encourages people to take a moment to enjoy life’s simple pleasures and like all of our brands; it must bring a smile to the customer’s face. I am confident that Trampoline will,” Gordon said. He added FFCo is constantly on the lookout for new ways to grow and expand. “The tasty treats market is filled with opportunity for growth and future success and there is much more in the pipeline for FFCo. “We always have our sights set on new exciting ventures and opportunities that will benefit all stakeholders. Trampoline is an important part of our continued growth, with many more big things to come.” While Trampoline will be owned and operated by FFCo, Gordon said it will enjoy an ongoing relationship with Burra Foods.
All images: RFG
Inspire | Cover story
WHAT THE RETAIL FOOD GROUP DID NEXT
A revitalised focus for the brands in RFG has been unveiled and it includes cricketing legend Matthew Hayden.
A
GARY ALFORD Director of franchise at Retail Food Group
s the new Brumby’s Bread ambassador Matthew Hayden says “Since retiring from cricket, I’ve dedicated my life to encouraging everyone to enjoy the benefits of an active and healthy lifestyle. “I’ve grown up with Brumby’s, just like most Aussies have. After almost 40 years in the baking business, they still bake all their bread fresh in store daily using traditional scratch baking methods, and they only use wheat grown and produced by Australian farmers. “In the past few weeks I’ve spent a weekend on the farm with one of Brumby’s wheat farmers and a shift in store with one of Brumby’s bakers, so I have seen first hand where the wheat comes from and what goes into each loaf of fresh bread. “Making good food choices is just one aspect of living a healthy lifestyle, but one of the most important.” The bakery business has also introduced a new range of breads with colour-coded packaging and nutritional information. The five products in the Get Active range have been endorsed by Hayden. “Brumby’s wants their customers to know exactly what is in each loaf of bread and is making it easier to understand just why things like high fibre and low GI are great health benefits.” But Brumby’s is not the only brand to have a fresh take on business. Retail Food Group’s director of franchise Gary Alford explains the strategy for the portfolio of brands. “As a business we can’t stay still and unless
10| FRANCHISING NOV/DEC 2013
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we evolve and ensure our brands are right to market particulars,” he says.
We’re always open to change and new ideas, we don’t rule out anything PROJECT EVOLUTION Retail research around the world has highlighted trends that the company is now picking up on and a number of major projects are delivering change for RFG brands. One of these is Project QSR400 which addresses the pizza brands, another is Project Evolution which has an impact across the portfolio. For instance the move to new channels of distribution: a Donut King drive-through concept, and the trialling of pizza slices at Esquires Coffee drive-through stores. Could this involve further brand collaboration? “Where a landlord can accommodate a one-stopshop with five or six different brands, that would fit our needs, yes,” says Alford. “In some cases this has been taken up. We’re always open to change and new ideas, we don’t rule out anything.” So what is lined up for the other bakery and coffee brands? »
Inspire | Cover story
DONUT KING AND MICHEL’S PATISSERIE There’s a strong focus on coffee and the quality of products. Donut King has a solid coffee offer, with a product and speed of service that suits drivethrough, says Alford. Coffee is a popular addition to food service drive-through outlets overseas, he adds. But even in these quick service sites an in-dining area will prove an important element. Michel’s Patisserie has a new look with a dual focus on barista-made coffee and the French patisserie heritage of the brand. “Out of all our brands the coffee is strongest at Michel’s, in terms of reputation and turnover. We’re trying to leverage that. The supply chain set-up is quite a complicated model and the new system allows for personalised cakes [to be created on-site] if need be, but also simplifies the set-up.” The design was unveiled at the conference and the first new-look store has opened with further outlets lined up for the fresh livery. “Instead of a refurbishment we’re replacing with a brand renewal,” says Alford. “We’ve worked to ensure we bring it in at about the same costs to a franchisee.” efficiencies F R 0 9 1 3 _ 0 4 5 _ Cost AUS 1 are 2 important 0 1 3 - 0for 8 -a network 1 9 T 1 and 1 : RFG 3 8 : is reviewing its options now when it comes to ownership
The barista is part of the new look at Michel’s
of baking supply facilities. The Michel’s National Bakery Solution is about ensuring bakeries can be in each state where needed. The acquired Yatala factory north of the Gold Coast fits in with this plan. “It will have the capacity to do fresh daily baking, freeze, and dispatch for consolidation of all our products,” Alford adds. For New South Wales two full-scale facilities bake from scratch. These are separate entities and thirdpart-owned, on contract until 2015. look 1 9“We + 1 will 0 : 0 0 to see which system works best,” says Alford. »
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Inspire | Cover story
We’re always being door-knocked but it has to sit well with us. We’re looking for active businesses BB’S, ESQUIRES COFFEE HOUSES AND THE COFFEE GUY
it’s a competitive market but it all comes down to who does it best.”
CRUST GOURMET PIZZA AND PIZZA CAPERS The company’s foray into quick service restaurants [QSR] with the gourmet pizza brands Crust Gourmet Pizza and Pizza Capers has brought 270 outlets into the network. Expansion plans for 130 new sites will bring the total to 400 by end of calendar year 2014. Crust is already in the US, Singapore and New Zealand; Pizza Capers has opened in Singapore. “There will be a focus on overseas expansion,” says Alford. “We’ve had a number of approaches to take a number of brands to the US but we’ve declined. We have a master franchisee in California for Crust with one outlet already established and in the process of securing more. “We see the QSR as two important acquisitions that have been good for RFG, and it enhances our ability to trade and allows us to move away from reliance on shopping centres.” Acquisition remains a key component of the RFG plan for QSR growth, with pizza chains of five to 10 stores a particular focus, says Alford. “We’ve brought in some pretty big chains and we have the capacity to do these acquisitions again. “We’re always being door-knocked but it has to sit well with us. We haven’t seen many distressed assets for sale, and some take too much focus away from our core. We’re looking for active businesses.” F
Trading successfully in this competitive sector is down to education and training, he says. Franchisees spend up to six weeks at the Southport training facility. “Training is fairly substantial in coffee production and there is further embellishing with barista training.” The three levels of certification will be boosted with a fourth, a barista qualification, which the company is working on now. “It’s about making people proud,” says Alford. RFG views baristas as key to the offer in Donut King, bbs, The Coffee Guy and Esquires. Mobile business The Coffee Guy is reliant on the performance of the vans and RFG is developing a new concept. “Vans run on noisy compressors, we’re doing something different, it will be quiet and odour free.” The bb’s brand is being migrated to Esquires Coffee Houses with a rebrand set to start at the end of this year. “The heritage of Esquires for us is New Zealand, we want to leverage bb’s off that. It’s very similar to store refurbishment, after five years, that’s when changes occur. that2through the conference, view this video by using F R 0 9 1 3 _ 0 0 0 _ “We M O Nbelieve 1 0 1 3 - branding 0 8 - 1 6we T 1can 0 :grow 4 4 : 2For 6 a+ flavour 1 0 : of 0 0 Esquires to be the pre-eminent coffee outlet. Yes the link: http://bit.ly/1c8qA2M
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FRANCHISORS Are you looking for top talent for your management team? Please connect with Steve Bianchini at Mondo Direct – The Number 1 Specialists in Franchise Executive Search and Recruitment Tel: 0403 840 996 | Email: steve@mondodirect.com.au 14| FRANCHISING NOV/DEC 2013
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Inspire | Franchisee
A FRESH START F
ollowing an unfortunate experience with their previous franchise, Jim and Anne Marshall were unsure what the future held, until by chance they came across Hairhouse Warehouse. The husband and wife team invested in the brand in 2002, and they haven’t looked back. They have successfully turned a struggling store around and won a handful of awards in the process, including Most Improved Store and the Franchisee of the Year title for one to two stores.
THE PAIR RECOUNTS THEIR JOURNEY…
STORE PERFORMANCE
In the time prior to November 2010 we had been through a particularly difficult period with another franchise and suffered considerable personal losses. We were disillusioned with the idea of franchising; although we felt that the problems we encountered were out of our control and that we were ultimately good business people who made a couple of bad decisions. As we were entering our senior years we were wondering where life would take us. Chances of meaningful employment were slim and the future looked a bit bleak.
THE BIG CHALLENGE A chance meeting with Arthur Mitroulas, the general manager of Hairhouse Warehouse changed everything for us. Arthur, on behalf of Hairhouse Warehouse, offered us the opportunity to purchase a store that was in serious trouble and unless suitable new owners were found it would probably close. 16| FRANCHISING NOV/DEC 2013
Our first reaction was definitely ‘no, we would not go there again,’ but then we realised it was an opportunity for us to redeem ourselves and so with some trepidation we decided to go ahead. Getting there wasn’t easy and when we entered the store as owners for the first time we realised it was in worse shape than we imagined. The assistance, support and encouragement we received from Hairhouse Warehouse helped us in bringing about significant changes to the culture of the business. We sourced good staff and worked every day to rebuild the reputation of the brand and the store.
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During our first year of operation we were able to increase the turnover of the store by $400,000 over the previous year. Our second year saw an increase of another $300,000 resulting in our first National Most Improved Store award. Last year we achieved another $200,000 increase and won our second Most Improved Store Award as well as the award for Franchisee of the Year for one to two stores.
A WEALTH OF SKILLS Being a husband and wife team with different skill sets, we have been able to bring many years of experience in customer service, retailing and salon services to the day-to-day operations of the business, and we have financial and business management skills to back it all up. Our goals are to continue to grow the business with the help of Hairhouse Warehouse and to provide members of our team with the tools they require to one day become a franchisee themselves. F
Image: Hairhouse Warehouse
A Hairhouse Warehouse franchise turned Jim and Anne Marshall’s lives around.
Inspire | Franchise story
AN ACTIVE
OPPORTUNITY Kids fitness franchise BM Sports is great for people with a combined passion for sport and children.
E
Children are encouraged to get involved in a range of sports. All images: BM Sports 18| FRANCHISING NOV/DEC 2013
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stablished in 2008, the Melbourne-based franchise aims to bring communities together by educating children about their health and providing them with the opportunity to take part in a range of different physical activities. “Sporting organisations are a nexus for the building of relationships that bind suburbs together, through interactions and conversations based on mutual belief in the promotion of healthy lifestyles. “Through physical education and team orientated sport, children learn valuable life skills such as acceptance, tolerance, self-discipline and self-belief,” says founder Bobbie Evans. Rather than feel as though they are just another number, Evans explains children receive one-on-one attention, and parents are invited to take part. “Each child that attends a BM Sports clinic can be individually assessed to uncover their strengths and areas that may require improvement. We encourage all families to enjoy each others company and reap the benefits of living an active lifestyle.” If a franchisee were to invest in BM Sports, Evans explains they would initially spend their days making phone calls, attending meetings and really getting their business out there in the local community. “Once the business is up and running, franchisees will be required to provide staff with the appropriate uniform, customer details and equipment to complete booked sessions. “They will also be responsible for basic bookkeeping, and more hands-on coaches will be required to run the sessions and deal with employee and customer feedback.” At the end of each day, franchisees will also follow up on each session and settle any problems or customer complaints that may have arisen.
story | Inspire
Evans looks for franchisees that embody eight key qualities: • A sporting background • Accountability • Leadership skills • A strong work ethic • A willingness to learn • Good communication skills • Financial management skills • The ability to be a team player When a new franchisee joins the brand, Evans says they will be required to attend an initial planning meeting. “It is held to build the franchisee’s individual franchise marketing and business plan, which is designed to help them better understand the administration aspect of their franchise.” Initial training will begin once the plan is completed, and the focus will be on teaching franchisees all the skills they need to run their business successfully. BM Sports also offers franchisees ongoing training that covers a range of different topics, from first aid through to business management. “ItDprovides learning A _ F R O franchisees U T 2 J A Nwith _ 1 professional 3 . pdf Pa ge opportunities so they can continuously improve their
2
6 / 1 2 / 1 2 , 3 : 0 2 Lessons are delivered by trained coaches.
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grill? your own bar & g in n ow of d e m rea Have you ever d over business? rn tu gh hi a in opportunity perience Do you seek an g an amazing ex
Contact: Head Office 07 5532 7071 franchising@outbackjacks.com.au www.outbackjacks.com.au
ovidin ted the art of pr Talk to us We have perfec dining market. ily m fa g in ow the gr specialising in chisee. ming a new fran co be t ou ab ort y toda & ongoing supp ng ni ai tr ll A s aurant Full turnkey rest provided quired No experience re $ 300,000 er w po ng si ha rc pu nt $ ca ifi gn Si to 600,000 approx. E L ITES AVAILAB
HOT NEW S ALIA! ACROSS AUSTR
WWW.FRANCHISE.NET.AU
depending on location
NOV/DEC 2013 FRANCHISING | 19
Inspire | Franchise story
Children receive one-onone attention.
skills and become better professionals,” says Evans. “BM Sports also has an annual general franchisee meeting that goes across two days, where franchisees discuss any issues and changes that they plan to implement in the coming year.” BM Sports has recently achieved registered childcare provider status, which means franchisees
Through physical education and team orientated sport, children learn valuable life skills will be able to run what Evans has coined ‘Be Active Vacation Care’ programs, or vacation care programs, for children. “These programs aim to keep children involved and active, and local community sporting clubs are invited to take part, as this will enhance enrolment in local sports. “We are also in the middle of creating our own specialist academy that will allow students in years 20| FRANCHISING NOV/DEC 2013
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10, 11 and 12 to complete certificates and qualifications that will enable them to obtain a position in the sporting industry.” Evans stresses franchisees are not required to pay any upfront fees for a BM Sports franchise. “I know how hard it is to get a new business off the ground, which is why with greenfield sites (and current BM Sports sites) there are no compulsory upfront costs. “BM Sports covers the cost of the franchise agreement and sets up a fair payment scheme for the franchisee. They have the option of paying upfront start-up costs, which includes $1,200 for marketing, a website and uniforms, and $5,000 for equipment, whereas in some cases equipment and the full marketing material are not purchased until required.” The cost of a franchise will depend on location and size, and a greenfield site may cost anywhere between $5,000 and $15,000 plus start-up costs and equipment. “There is an eight percent quarterly fee of gross earnings, with six percent of that going to the franchisor and two percent for website updating, however it does not get charged until the business is earning,” says Evans. The initial term of a BM Sports franchise is five years with options to renew. F
All images: Grill’d
Inspire | Franchisee
SUCCESSFUL
SIBLINGS AT
GRILL’D Matt Walker and his brother Brad have made some incredible leaps and bounds since they invested in their first Grill’d franchise in 2005.
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Franchisee | Inspire
B
y 2010 they had expanded their portfolio to include sites in the Melbourne suburbs of Knox, Camberwell and Southland, and the pair recently took out the Multi-Unit award at the 2013 NAB FCA Excellence in Franchising Awards for the VIC/TAS region. Matt and Brad opted for franchising as they knew first hand the struggles associated with starting up a new business from scratch. “We had both worked for other people in various roles and had both been involved in start up businesses. Having gained this experience we realised the challenges that we would face if we were to start up a new business ourselves - especially with speed to market,” explains Matt. “We chose the franchise path as we realised the potential for growth and engagement with a well known brand that had established operations systems. The ability for a franchisor to have specialists in different areas such as site selection, brand, training, HR, operations and so forth, was also very appealing.” Matt and Brad took the due diligence process very seriously, devoting a significant amount of time to uncovering all there was to know about both Grill’d and investing. F other R 0 9 brands 1 3 _ 0prior 2 4 to _ O BJ 1 2 0 1 3 - 0 “We researched a few different brands via several
different avenues and decided on Grill’d as the one we would like to be involved with.” Matt and Brad’s research covered three key areas: • Direct questioning of senior staff within Grill’d • Engagement and discussion with various employees and associates of Grill’d • Most importantly, understanding and engaging with the brand. “We made sure that we intimately understood the business model and where it was heading over the next five years,” Matt says. While they chose for Grill’d for a number of reasons; there was one thing that really stood out. “We truly believed in the brand message - if we were going to live and breathe Grill’d we needed to ensure we engaged with every component of what the brand stood for,” he explains. »
We chose the franchise path as we realised the potential for growth and engagement with a well known brand 8 - 1 3 T0 9 : 5 1 : 1 0 + 1 0 : 0 0
It’s all about the bread! We roll it, we eat it, we earn it And we’re successful at it. We have got nearly 300 stores in North America and we are now ready to offer franchises in Australia!
WHY EXTREME PITA? A lot of restaurants out there offer items that are fried within an inch of their lives. Extreme Pita has the right concept at the right time, because more and more consumers are looking for a fresh, fast, healthy alternative, something we have been doing since we opened our doors. Extreme Pita offers a fantastic range of healthy great tasting food
for busy, active individuals and families who want to live life to the fullest (extreme) from a company that doesn’t believe healthy has to taste bad or be boring. Cooked to order with no oil, only fresh veg and salad Menus for breakfast, lunch, dinner plus separate kids menu Extreme Pita | Gary Blyton
0414 55 32 32
info@extremepita.com.au | www.extremepita.com.au
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NOV/DEC 2013 FRANCHISING | 23
Inspire | Franchisee
We made sure that we intimately understood the business model The importance Matt and Brad place on both representing and embodying the Grill’d brand has only increased over time. “We already knew how important it was to not rely on the brand to do the work for you nor to solely represent the brand in your territory however this is certainly a critical component of being a franchisee. You need to be the brand,” says Matt. Despite their success, Matt and Brad, as is the case for almost every franchisee and business owner, have faced some challenges over the course of their franchising journey. “For us the biggest challenge has been to realise we cannot solely guide our own destiny within Grill’d. Brad and I are ambitious people and have had to recognise that we are not the only ones on9our F Y 2 0 1 4 _ 0 0 0making _ A U Tdecisions 1 that 2 0impact 1 3 - 0 - 1growth 9 T 0 9and : 0 9 : expansion,” Matt explains.
He offers a number of tips for people looking to invest in a franchise: • Research, research, research • Understand the brand and relate to it • Talk to people that work in the business • Look for a franchise that is not in the business of selling franchises only • 3 3Understand + 1 0 : 0 0that there is a lot of personal time and effort in making the business work F
Motor into your next adventure
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• Automotive retail market continually growing • Established in 1985 and the largest independently owned automotive parts and accessory retailer in Australia • 100 Plus stores providing strong brand recognition • Great buying power, exclusive products & centralised distribution centre • Extensive franchise system training and support • SEVERAL NEW STORE FRANCHISE
OPPORTUNITIES AVAILABLE NOW!
For further information call now
1300 550 155
or go to autobarn.com.au
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Inspire | Franchisee
FOREIGN
INVESTMENT A South African couple’s franchising journey
W
hen they migrated to Australia from South Africa in 2007, Wayne and Maria Varkevisser brought a wealth of experience in starting up and running a successful business with them. The pair was involved in their own mobile technology business from 1994, a time when Maria says the industry really began to boom.
ARE VISAS AN ISSUE? The pair weighed up the benefits of starting a new business versus investing in a franchise, and agreed on the latter. “The visa had time and financial constraints attached to it that we needed to fulfil within a four year period. If we did not meet the criteria we would be required to return back to South Africa. This was one of the most important things we had to keep in mind,” says Maria.
FROM BATTERY WORLD TO PACK & SEND The pair initially purchased a Battery World franchise, however luck was not on their side. “As we were in the process of finding retail space for the business the floods hit Brisbane and the territory we had purchased was affected. After many months we were unable to find retail space so we proceeded to terminate the franchise.” Once the termination was finalised, in October 2011 they opted to invest in a Pack & Send franchise in the Brisbane suburb of Chermside. “Pack & Send was very accommodating of our situation and understood the urgency we had in moving forward. Within two months we had purchased the franchise, completed our training and started trading in our own business,” Maria says.
SKILLS TRANSCEND NATIONAL BOUNDARIES Wayne and Maria brought a number of the skills they acquired during their time in South Africa to
Image: Pack & Send 26| FRANCHISING NOV/DEC 2013
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Franchisee | Inspire
Pack & Send Chermside. “Multitasking and time management skills have allowed us to manage our time and get the most benefit and profit out of the day. “The customer service skills we have built up over the years allow us to identify the type of person we are serving and communicate with them accordingly,” Maria says. “Our project management skills enable us to plan and execute the more complex jobs, ensuring they are delivered successfully.”
• Settling in with new suppliers and understanding the service levels delivered to us and in turn the customer • Trusting the system • Learning to manage customer requirements • Maintaining the philosophy of the business ‘we send anything anywhere’
TRAINING AND SUPPORT: SECOND TO NONE
“There is a wonderful team at the Pack & Send head office and knowledge and assistance from the franchisor and existing franchise channel is just a phone CHALLENGES call away,” Maria says. Being new to franchising in Australia, Wayne and The support head office provided when the pair Maria faced a number of challenges along the way: had to relocate their business after just six months is • Understanding the new country and challenges particularly noteworthy. we would have to face “We had to move the business from its existing position, where it had been for five years, into a new prime position. The move was driven by Pack & Send’s desire for greater exposure, which would tie in with the future growth plans for the business.” Wayne and Maria are incredibly grateful to be given the opportunity to live and work in Australia, and they have learned a lot from their franchise. 0 1 7 1 3 _ 0 0 2 0 7 _ T WA T 6 - 3 1“The 9 T business 1 : 5 1 has 9 : made 2 6 9 +us F R1 OP 1 2 0 1 3 - 0 9 0 1 6 7 0 1 realise 0 : 0 0we have no limits. We can assist a customer anywhere, anytime.” F
Knowledge and assistance from the franchisor ... is just a phone call away
Picturing a career change? Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you. Property photography is an exciting and diverse industry, where no two days are the same. Each day you’ll be out and about photographing different properties and meeting lots of new SHRSOH DORQJ WKH ZD\ 7KLV LV GHÀQLWHO\ QRW D GHVN MRE Here’s some other reasons why you might choose Top Snap: No need for an expensive retail presence. All you need is your photography gear, vehicle and computer and you’re set to go. We work in a growth industry. Our services are in high demand with the residential and commercial real estate industry. We’ll help you succeed. You’ll get the usual intensive training, plus dedicated support with sales and marketing, that you’d expect from a high quality, established franchise system. “As a Top Snap franchisee I now have a great work/life balance. I work from home and see more of my family, and going to work and meeting lots of great people is fun and different every day. This has given me the career change and lifestyle I was looking for. I love it!” John Woolley, Mornington Peninsula, Victoria
Territories are available across Australia, please contact Rob Watkin on 14 217 019 or email sales@topsnap.com today for more details. www.topsnap.com
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SHAPING UP
MELBURNIANS Step into Life franchisee Donna Douglas transforms lives for the better.
DONNA DOUGLAS Step into Life Cheltenham franchisee.
W
hile she has always had a passion for fitness and personal training, Donna never thought she could make a full-time career out of it, until she found Step into Life (SiL).
DECIDING ON THE BRAND: AN EASY DECISION When she came across SiL, Donna realised it may just be possible to enjoy the best of both worlds. “It seemed a good way to be able to do what I loved and earn an income. I have always been a person who follows systems and rules so owning a franchise is a really good option for me,” she says. »
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It seemed a good way to be able to do what I loved and earn an income
Images: Thinkstock & Starshots Brighton.
Inspire | Franchisee
UNHEARD Of Flexibility and Semi-Passive Income Introducing Xpresso Delights 1, 2 or 3 day a Week Business Solution At Xpresso Delight we are in the BOOMING Workplace Coffee Business
We put Coffee Machines like this…
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Then, all week long your coffee machines automatically make professional cappuccinos and lattes at a fraction of café prices. Once a week you drop by and give them a clean and service, stock them up and invoice for a whole week of coffees. WOW, now that’s what you call real semi-passive income.
This is me running my business
And so is this…
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Now you have flexible time to do the important things you need to do but still have a business and only work 1, 2 or maybe 3 days a week. What a typical franchisee’s calendar may look like below... Monday School Function
Tuesday
Wednesday
Thursday
Catch up with Friends
Friday Go Shopping
Join the Xpresso Delight Team now and experience real Business Flexibility
HURRY Limited Offer: Your COFFEE Machines come with Locations ready for you to earn almost immediate income. www.xpressodelight.com.au
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Winner FCA Emerging Franchisor of the Year 2011
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appliancetaggingservices.com.au or contact Steve Wren 0401 655 655 steve@ats.com.au
Franchisee | Inspire
A CLOSE KNIT ORGANISATION Even after nine years, the sense of community at SiL Cheltenham and the camaraderie between the franchise’s members continues to surprise Donna “There is a real sense of care between members and their families. We say that we are group outdoor personal trainers but we are so much more than that. We create this environment we call Step into Life and members turn it into a beautiful community that I love being a part of,” she says.
NEVER AN AVERAGE DAY Donna’s days vary according to the number of training sessions she has scheduled, and early starts are often the norm. “Four days of the week it’s an early start - with three of them being a 5am start. Four nights of the week are busy with sessions, and every day I do two to three hours of administration, which covers all sorts of things,” she says. “Every week I carry out three to four hours of self-promotion and usually there is a catch up coffee with current or returning members or other franchisees.” Donna runs the business on her own, however she has enlisted a little extra help in recent times. “Two years ago I took on a permanent assistant trainer who covers most Saturday mornings. His full time job is pretty busy so I have a break some Saturdays and work the ones he can’t.”
ONGOING TRAINING: THE NORM She says SiL offers training long after franchisees complete their initial induction program. “There is always A D _ Ftraining R A L S on 2 Moffer A R _and 1 3franchisees . pdf Pcan a ge choose to make use of it or not. It’s one thing I
really love about the industry and the franchise - I am constantly learning and never bored!”
SELF PROMOTION Donna engages with a number of local community groups and organisations. “I love to be involved in global, national and local communities. I donate a lot of sessions to schools, kindergartens, charity organisations and clubs. “It not only gets our brand recognised, but helps raise much needed funds for different community groups,” she says.
I used to hate my job and after nine years I still get up at 5am with a sense of excitement about the sessions THE FUTURE: WHAT HAS DONNA GOT PLANNED? Donna has two primary goals for the business. “I want to continue to be the market leader in group outdoor personal training in the Cheltenham area and to inspire the community to be fitter and healthier.”
A POSITIVE EXPERIENCE “[Franchising has] changed my life in so many ways but mostly in that I love what I do. I used to hate my job and after nine years I still get up at 5am sessions and 1with 7 a / sense 0 2 / of 1 excitement 3 , 1 1 : about 0 8 the AM the day ahead. Nothing beats that feeling!” F
IF YOU’RE INTERESTED IN 20% ROI, WE’RE INTERESTED IN YOU. See our full-page ad on page 67 xx for more details, or visit speedqueen.com.au/invest to get started. 1300WASHER (927 437)
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A SMOKIN’ SUCCESS
N
ow that Smokin’ Barrys has a proven business model, founder and slowcooked meat lover Jim White is ready to tackle franchising. White believes franchisees will reap the benefits of owning their own slice of the Smokin’ Barrys pie, because the business is built upon two current trends. “We have proven the market here in Melbourne by having multiple trucks, and we know the possibilities are virtually endless because this kind of American style barbeque will continue to grow in popularity - there is no sign of it stopping when you look at what is happening overseas. 32| FRANCHISING NOV/DEC 2013
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The franchise that combines two key trends: food trucks and American style BBQ
“Food trucks are also on the rise, so when you combine these two trends they are almost unstoppable.” White explains two key factors prompted him to establish the brand. “I realised the food stalls at most festivals and events offer relatively stock standard food, and I also have a fairly big passion for long meat cooking processes such as spit roast and barbeque.” Smokin’ Barrys food trucks have become a regular fixture on the festival and event circuit in Melbourne, which is just how White likes it. “We really work hard to get involved with them,” he says. The business is in fact split in two - there is the food truck, which is mobile and serves up food items
All images: Smokin’ Barrys
Inspire | Franchise story
Energy Passion Innovation
Digital Domination
At D At Domino’s omin om min ino’ o’s we ep pride ride ri de o ourselves urse ur selv lves es on nb being eing ei ng th tthe he m he market arke ark ar rke ket le lleader, ead der er,r, no not on not only onl nly ly in p in pizza izza iz ab but utt b byy be bein bei being ein ing th the he mo m most ostt ssophisticated so oph phis phi his isti tica cate ted digital ted digi di gita t l retailer tal rreta ret re eta tailler er in in Australia A st Au stra stra ralilia rali lia and an nd Ne New N ew Ze Z Zealand. eal alan and nd. d. W With ith mo it more m ore re tthan han ha 50% our delivered 5 50 0% off o urr ssales ales al es d eliv el iver ered d tthrough h ou hrou hr ugh h sseven se eve ven di ven d digital igi gita tal or ordering rde deri ringg p platforms, latf la tfor for orms ms, ou our ur c com co competitive omp mpet etit e eti tit itiv ive ad a advantage dva vant vant ntagge is ntag is sstronger tron tr nge gger er ever. than th han ne ver.r. ver. ve Domino’s believes Dom Domi D Do mino mi no’s ’s b elie el ieve ves es in in iinvesting nves nv esttiingg iin es n th the e ffuture, fu utu tu urre ure re, th re, tthat’s that hatt’ss why why w we e are arre fo ffocused ocu use sed on n driving cutting d dri driv dr riv ivin ing ne new in new iinnovations nno nova vvat ati tion ons ns an and nd cu utt ttin tti ing ed edge dge ge technology ttech te ech hno nolo logy gy to to give g ve gi ve our ourr franchisees fra ranc ranc nchi hise sees es the the he smartest manage business sm mar arte rte ttest estt ttools o ls ool ools oo ls tto o ma mana m ana nage nage g ttheir heir heir he ir b usin usi us ines es s and an nd en e ensu ensure nsu ure eo our ur c ur customers usto ust us tome mers mers rs c can an nc connect on nne nectt w wi with ith u uss ho h how ow th theyy w they want. ant. an nt. t. Your competitive advantage starts with Domino’s. Contact franchise recruitment: 1300 131 888 or visit Australia: dominos.com.au/franchising NZ: dominospizza.co.nz/franchising
Inspire | Franchise story
Smokin’ Barrys operates with a rather simple philosophy in mind, where the customer is at the forefront. “We aim to provide great tasting, excellent quality food without being ridiculously over priced,” White says. To ensure they are confident running their new business, franchisees receive extensive on-the-job training when they join the brand. “We provide a huge amount of one-on-one training, franchisees don’t need to know anything about what we do - we teach them everything. “They will spend a good amount of time in the food truck and learn how to serve customers, as well as gain an understanding about who our clientele and target market are,” he explains. including pork rolls, beef brisket rolls, pork ribs and White is looking for franchisees who have a simibarbeque nachos, as well as a catering arm. lar passion for, and interest in, slow-cooked meats. “The catering aspect is totally separate as far as “They don’t need to have a background in cooking the type of food and the way it is served goes - that but they would certainly need to be enthusiastic lends us to things like parties and sporting club about cooking meats in some capacity, and they need events and we do quite a lot of weddings now. to be highly organised.” “While our catering menu contains the pulled While Smokin’ Barrys does not yet have any franpork and beef brisket rolls and the ribs, people are chisees; White has firm plans for the future. “We are also able to order things like slow cooked chicken on the lookout for suitable franchisees at the moment pieces or whole chickens, and we have salads and F R1 1 1 3 _ 0 0 0 _ T CC 1 2 0 1 3 - 1 0 - 1 4 T 1 4 : 2 9 : 2and 2 +would 1 1 : like 0 0to open 10 franchises across Australia corn on the cob, too.” within the next two to three years,” he says. F
This kind of American style barbeque will continue to grow in popularity
“Dollar for dollar The Concrete Cutter offers great value among the ‘man & van’ franchises”
It’s Simple
No costly fitouts, no staffing problems, no real-estate leases.
It’s Fair
Franchise royalties are $150 p.w + gst. You keep the profits from extra effort.
It’s Effective
Advertising royalties are $60 p.w + gst. They are pooled for maximum buying power.
It’s Affordable
$45,000 + gst includes equipment, sign writing, uniforms, stationery & training. You supply a vehicle, it need not be new.
It’s Proven
Eight of our nine franchisees have been operating for between six and eleven years.
It’s Profitable
Most of these established franchisees frequently take above $2,500 p.w (conservative).
It’s Your Move
If you’d like to learn more please telephone Bruce Miskin.
“Only leaves one box to tick” 34| FRANCHISING NOV/DEC 2013
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www.theconcretecutter.com.au Bruce Miskin 0499 399 355 Email: bruce@theconcretecutter.com.au
Inspire | Franchise story
THE
HEALTHY FOOD FRANCHISE Extreme Pita proves that pita bread can be used in more ways than one.
A
At y A l l pica im l Ex ag e t r e s: E me xtr P em ita s e P t or ita e.
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ustralia’s quick service retail (QSR) market is overflowing with food franchises claiming they offer something a little different, however Extreme Pita could be the real deal. The Canadian based brand’s Australian master franchisor has secured four sites, all of which are scheduled to open before the end of the year. “We are going to open four company-owned stores in Sydney and we are taking expressions of interest for franchised locations, because WWW.FRANCHISE.NET.AU
AS A KID YOU WORLD’S LARGEST ICE CREAM BRAND Brand heritage - 67 years young New restaurants delivered as a turnkey operation ANZ accredited - finance now available Comprehensive training & ongoing field support Restaurant opening marketing package Operational simplicity Product innovation Global exposure
Sites now available across Australia Call Michael 0417 077 633 www.baskinrobbins.com.au
Inspire | Franchise story
obviously that is our model going forward,” says master franchisor Gary Blyton. As its names suggests, pita bread forms the basis of the brand’s food offerings, which are designed to be both healthy and flavoursome. “Extreme Pita is about pita bread, so it is not to be confused with wraps, kebabs or sandwiches; rather it is a pocket style pita bread,” Blyton explains. The pockets are designed to be filled with a range of different ingredients, and they can also be used as pizza bases. “We put grilled lean protein, fresh salad and sautéed and grilled vegetables Pita bread wrap. inside the pockets, so they are more than just a sandwich; they are a little hot meal in a pocket.” Health is high on the agenda at Extreme Pita, and even the separate kids menu favours nutritious espresso coffee and other beverages, including its items. “Nutrition, calories and fat counts are all a “pure all natural smoothies” range, Purblendz. big part of the business and that is all on display When he was first introduced to the brand five - customers can go to the nutritional board and years ago, Blyton was amazed Australia did not have actually see what they are going to eat before they anything remotely similar. consume it. “My sister-in-law, who was working at an Extreme “Our kids menu averages 250 calories per item, Pita at the time, took me down there for lunch and it which when compared to a lot of other QSR kids just got me straight away - I started questioning why options is quite impressive,” he explains. we didn’t already have it in Australia. The menu is globally inspired, and Extreme Pita F R0 9 1 3 _ 0 3 9 _ CAF 2 2 0 1 3 - 0 8 - 1 5 T 1 5 : 0 5 : 2 0“I+ could 1 0 : see 0 0it fitting with the Australian market offers breakfast, lunch and dinner items, as well as very well, and a couple of years ago I started the wheels
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Franchise story | Inspire
turning to bring Extreme Pita to Australia,” he says. For the moment, Extreme Pita’s first four stores will remain company-owned, and franchisees will take on greenfield sites. “We will take care of all the site sourcing, selection, lease negotiation and fit-out for franchisees. “Obviously everything takes time but we want to be Australia wide and will also be taking the concept to New Zealand in the first quarter to middle of next year.” Franchisees are in good hands when it comes to training, and Extreme Pita offers a tried and tested program which has been established by its Canadian founders. “The training is delivered by operational support staff who have been to the full training induction program at the head office in Canada. “For the first two and a half weeks training will take place at one of our company-owned stores in Sydney, and then franchisees will undergo another two weeks of training in their own store, wherever that may be. It is fairly intensive and very comprehensive.” Now that he and his team know the brand inside-out, Blyton says they are keen to get franchising. “We have got the brand and the systems
ingrained in our blood now and we are ready to pass it on,” he says. The cost of an Extreme Pita franchise will start from $250,000 depending on the location, and the initial franchise term is five years with five year renewal options after that. F
Catering solutions.
Nutrition, calories and fat counts are all a big part of the business
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Opportunities | Casual dining
A TASTY
E V I T A N R E ALT The casual dining market offers a wealth of opportunity for people that are looking to invest in a food franchise yet steer clear of fast food brands, writes Brea Carter.
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Casual dining | Opportunities
I
t seems there has never been a better time to invest in a franchise that offers customers a casual dining experience, as the industry is on the rise following a rather tumultuous five years. IBISWorld’s Restaurants in Australia industry report (which refers to low-cost, middle-range and premium venues) reads “The industry is forecast to record strong growth over the five years through 2013-14 as it recovers from its lows in 2008-09. “The industry’s performance will be lifted by the positive flow-on effects from the success of popular reality TV cooking shows that reconnect people with the pleasures of fine dining and eating out.” The report goes on to state the industry will cash in on consumers’ demand for healthier alternatives and convenient mealtime options that complement their busy lifestyles. “These factors combined are expected to result in annualised growth of 3.4 percent over the past five years to total $14.3 billion, with growth of 3.1 percent expected in 2013-14.
GRILL’D
A typical Grill’d store. Image: Grill’d
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While the humble burger forms the basis of its business model, the product offering at Grill’d is vastly different from fast food chains that specialise in the much-loved menu item. The Grill’d philosophy is simple: ‘burgers made good,’ and the brand prides itself on serving up healthy yet equally flavoursome burgers. Founder Simon Crowe explains he came up with Grill’d as a means of diversifying the Australian burger market. “Before Grill’d, in almost every other country bar Australia, the burger landscape was shared across many different sub-segments, whereas in Australia the category was dominated by multinationals. “It was very evident that in every other food category in Australia – be it Thai, Indian or Italian there was a full spectrum of offerings, from low, to mid to high-end.” Crowe wants to prove to the Australian public NOV/DEC 2013 FRANCHISING | 41
Opportunities | Casual dining
that burgers can be both healthy and tasty, and recognises it as an ongoing challenge. “At Grill’d we want to reposition the burger in the consumer’s mind so it is perceived as contemporary, nutritious and healthy – that challenge was born 10 years ago and is still very relevant today,” he says. The brand offers beef, chicken and lamb burgers that contain lean cuts of meat, as well as steak sandwiches comprising grass fed scotch fillet an a selection of veggie burgers. The burgers contain fresh salad, and each item on the menu is accompanied by a kilojoule rating so customers can better manage their daily intake. The brand aims to provide its customers with what Grill’d burger. Crowe terms the ‘Grill’d experience,’ which is produced Image: Grill’d when a range of elements of the store come together. “It is the layering effect of sound, smell, theatre, ambience, temperature, lighting, music and service. It can be really powerful in the way it draws customers in,” he explains. Grill’d aims to avoid being perceived by locals as just another large business, and the company goes that extra mile to look after its franchisees and staff. “The brand is genuinely local - we try to integrate into F R 0 9 1 3 _ 0 0 0 _ Ythe O Ucommunity NG 1as opposed 2 0 1 3 to - being 0 8 - perceived 1 4 T1 5 : 3 2 : 2 4 + 1 0 : 0 0 as an imposter in that community. »
We want to reposition the burger in the consumer’s mind so it is perceived as... nutritious and healthy
Once in a lifetime opportunity Franchises offered for the first time
You?
You?
You?
4,000 property millionaires and counting The Property Club is wholly dedicated to providing Australians with the opportunity of a better life through property investment. To celebrate 20 years in property, we are offering a limited number of Property Club franchises. This is a unique, first-time offer to be part of an organisation that has over 80,000 members, plus we have made more property millionaires than all the rest combined, with 4,000 property millionaires and counting! Take advantage of this exclusive opportunity by contacting us today. — Kevin Young Founder and CEO of Property Club
Visit propertyclub.com.au Call 1300 663 282 42| FRANCHISING NOV/DEC 2013
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Have You Ever Dreamed of a Passive Income Business? The Kooler Ice machine is a fully integrated ice manufacturing, storage and vending system, designed to service the rapidly expanding ice vending industry in Australia. Kooler Ice provides the machines under a simple franchise agreement, which provides a sophisticated level of support that enables our operators to earn passive income without being a slave to their business. Kooler Ice vending machines offer the latest in vending technology with outstanding style and the back-up and support of a sound franchise system. Our machines are precision engineered with corrosion resistant materials, incorporate plug-and-play components, and offer an environmentally friendly way to get one of societyâ&#x20AC;&#x2122;s staple products to market! And the return on investment potential for our franchisees is just amazing!
HACCP Accreditation Machines are manufactured from a corrosion resistant aluminium alloy, and all ice contact surfaces are food grade polymer or stainless steel. The ice is never touched by human hands, and all food bearing surfaces are designed to be cleaned and sanitised on a regular basis - in line with our industry leading HACCP accreditation. Both models come standard with our back-end data management system, which enables our franchise operators to log sales and monitor machine performance and alarm conditions remotely from their computer or smart phone.
Opportunities for the Kooler Ice business are available right across Australia. Be the first in your area to own and operate this exciting new business format.
www.koolerice.com.au
Opportunities | Casual dining
“Unquestionably we have a very good business model that delivers a really strong bottom line, but to focus on the output makes no sense to us, we want to focus on the input. We feel the bottom line profit will look after itself if we look after our people and by default they look after the customer,” he says. In keeping in line with this approach, Grill’d stores vary according to location, however they typically feature indoor and outdoor seating options and tables of varying shapes and sizes, from smaller varieties with brightly coloured chairs to large, wooden tables for congregations of people or a series of smaller groups.
ROZZI’S ITALIAN CANTEEN
Rozzi’s stores complement the food. Image: Rozzi’s Italian Canteen 44| FRANCHISING NOV/DEC 2013
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As its name suggests, Rozzi’s Italian Canteen specialises in Italian food at breakfast, lunch and dinner, however co-founder Dean Salomone explains it is more authentic and traditional than most. “I don’t believe there is a chain out there that is playing in the same space as us - no one has really taken true Italian food and tried to bring it to the masses like we have,” he says. “Our lunch range includes 12 inch napolitana style pizzas which are all made using Italian tipo flour, and we use gourmet toppings such as gorgonzola cheese, truffle oil and porcini mushrooms. The premise about our pizzas is less is more, and they are cooked in Italian stone based ovens. “When it comes to our pastas you won’t find any creamy sauces such as Carbonara, and we don’t do Bolognese because it is not traditionally Italian. We do a lot of premium olive oil and garlic based pastas, so they’re a lot lighter.” Rozzi’s also offers a vast selection of alcoholic beverages, a move that differentiates it from fast food outlets. “We have local and imported Italian beer and wine in our establishments – we offer bottles of wine ranging between $20 and $50 and avoid selling more expensive bottles because we don’t want to be high end players,” he says. Rozzi’s operates around a canteen model, where customers can find a seat; peruse the menu and then head up to the counter to place their order, or they can alternatively order their meal to take-away. “We built this model because we don’t want to be in the same position as restaurants that offer full table service. If we did, we wouldn’t be able to keep our prices so reasonable. “We want to provide a great product, but we want great value and the way we achieve that is around the canteen model – it helps to keep labour costs down for our franchisees,” adds Salomone. In a bid to evoke a true Italian dining experience, the décor of each Rozzi’s venue is designed to complement
Casual dining | Opportunities
the food. “We want the venues to make customers feel as though they are entering a little Nonna’s kitchen, in the sense that we have European tiles on the floor and Italian quotes line the walls,” Salomone says. Venues provide a number of different seating options for guests, which sees them attract a broad range of different people. “They are popular with young families as parents can get in and out very quickly, and then we get younger groups who spend hours chatting over meals and a couple of drinks. “The stores have big tables for large groups, booths, smaller, more intimate tables and a bar so customers have a whole bunch of options to choose from – it is all about flexibility.”
An Italian-style salad. Image: Rozzi’s Italian Canteen
COCO CUBANO The founder of Coco Cubano, Tony Melham explains the bar-restaurant franchise is open around the clock, and it offers an extensive range of alcoholic beverages - something most fast food outlets do not do. “We are open early for breakfast, we do lunch and dinner and late night tapas and desserts, and we transform into a bar that offers over 50 cocktails and an extensive rum list. We want people to be able to order F R 1 whatever 1 1 3 _ 0they 0 0 like _ B and r i accompany a n 1 it with 2 0 a1 3 - 1 0 - 1 8 T 1 4 : 3 2 : 5 3 + 1 1 : 0 0 wine or a cocktail.” »
We want to provide a great product, but we want great value and the way we achieve that is around the canteen model
Delivered
Potential
To achieve your corporate, professional and personal goals, contact Brian Tracy Training now.
Call Toll Free 1800 634 227 | www.briantracytraining.com.au | Franchises Available WWW.FRANCHISE.NET.AU
NOV/DEC 2013 FRANCHISING | 45
Opportunities | Casual dining
Coco Cubano aims to capture the real essence of Cuba, from its food and beverage offerings right through to the décor of each venue. “We roast our own coffee which is a Cuban blend; we have Cuban cocktails, Cuban cigars and Cuban single origin chocolate. The décor includes big comfortable leather chesterfield chairs and the photos within each store are of family and Cuba itself,” says Melham. Ensuring customers are treated to a warm, Cubaninspired dining experience is also high on the agenda. “We are definitely a casual dining franchise; we are not a grab-and-go venue. We are about people enjoying the full Coco Cubano experience when they dine with us. Our whole culture is about treating customers like friends and family so they feel welcome and as though they have walked into someone’s home,” he adds. This is markedly different from fast food outlets, which are heralded by many for their drive-thru facilities and restaurants that facilitate quick dining options. Coco Cubano offers a range of seating options to accommodate the different needs of its guests, another reflection of its desire to provide a memorable customer experience. “Our stores are quite large - anywhere between 150 and 300 square metres - which allow us to have a full kitchen and bar and enough space for people to lounge in. “They can choose to sit at the bar, one of the communal tables, which are great for large groups, or one of the individual dining tables,” adds Melham. He believes Coco Cubano is different in that franchisees will thoroughly enjoy their time with the brand. “Running a Coco Cubano café-bar is the most fun a franchisee can have while working on or owning a business.
We are about people enjoying the full Coco Cubano experience when they dine with us “They are providing an experience to people who really want to be there - they are out for a bit of fun and don’t want to simply grab a burger and run off. They would rather sit down and enjoy the experience, which is really what the concept is about: getting to know our community and our guests.” He adds the experience can be incredibly rewarding as franchisees play host to customers celebrating momentous and special occasions. “You get to see people coming in and enjoying themselves - many
Cuban-inspired cocktails at Coco Cubano. Image: Coco Cubano 46| FRANCHISING NOV/DEC 2013
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come in to celebrate birthdays and engagements, and a lot of people book events and functions with us, which means we get to share those great times with them.”
WHAT’S THE BEST THING YOU CAN REMEMBER ABOUT YOUR FRANCHISE’S LAST EVENT?
BROTZEIT Brotzeit has a strong presence in Asia; with locations in countries including China, Thailand, Malaysia and Singapore, and now it has its sights set on Australia. CEO Aidan Hay explains the brand offers a unique franchising opportunity. “Unlike most other segments in the multi-unit food and beverage franchising industry, Brotzeit has no organised competition. “It does not sell single-unit franchises in a new market. Rather, it has chosen to develop by selling market areas, which require the franchise developer to open a number of units, typically three to six over a period of six years.” He says Brotzeit is a family friendly, casual dining restaurant concept, and its food and beverage offerings are German-inspired. “It offers a twist on culinary specialties from the southern region of Bavaria and Central Germany to the North Atlantic Sea - it seeks to reignite traditional German fare in bold new ways.” Authentic German beer sourced from the nation’s best breweries is also a drawcard for the brand. “Only the finest quality German-imported beers are offered at our restaurants, and the drinks menu is constantly expanding to include new lagers, pilsners, wheat beers and dark beers,” Hay explains. Unlike fast food brands where people tend to opt for their own individual meal, Brotzeit encourages a shared style of dining. “The focus of the meal is all about sharing, communal dining in big groups and celebrating festive occasions. In addition, we
If it takes more than a few seconds to think of something you need to speak to us.
A German-inspired dish. Image: Brotzeit
We are the only events company in Australia that specialises in the franchise industry. Contact us now then watch your next event blast off and send your business soaring. Suite 703 6a Glen St Milsons Point 2061 Call Brian Pretorius on 0433102005 or email brianp@launchpadfce.com.au www.launchpadfce.com.au
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Casual dining | Opportunities
offer a variety of affordable lunch options and specials, catering to working professionals seeking lighter meals during the day.” Brotzeit venues capture the German culture in a way that separates it from its competitors, says Hay. “It offers a refreshing departure from traditional German restaurants. It has shied away from old fashioned dark wood interiors and instead opts for a contemporary, chic and comfortable ambience. “Venues feature oak tables, leather benches and unique glass bottles displays, and each is fit-out with a contemporary beer bar,” he adds. Hay explains Brotzeit takes the training and support side of things very seriously. “We have pulled A Brotzeit restaurant. all the stops to give our franchisees strong and extenImage: Brotzeit sive support in all areas - from marketing and promotional materials to recipes, proprietary spices, site selection, restaurant decor and even local supplies. “Brotzeit employs the best practices in the industry. Franchisees can expect the company to be fair and transparent in all aspects of its relationship, and it has been careful to avoid the typical conflicts that arise in the franchisee/franchisor relationship,” he says. “Franchisees have full access to the Brotzeit’s Franchise F R 0 9 Resource 1 3 _ 0 8Centre, 5 _ R where E D -they1can2download 0 1 3 - 0 8 - 1 3 T1 0 : 2 7 : 0 7 + 1 0 : 0 0 manuals, marketing materials and R&D items.” F
The focus of the meal is all about sharing, communal dining in big groups and celebrating festive occasions
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REASONS TO CONTACT THE FRANCHISE SHOP TODAY:
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1300 139 557
Anything Baby
$220k
Taste of Europe - European Bakery, Patisserie and Cafe. Australian owned, simple yet rewarding franchise opportunity. Artisan breads and pastries baked daily on site, yet no baking experience required. Enquire now!
Corporate Cars
$30k+
$38k
With 20 years of experience in the industry The Concrete Cutter is Australia’s premier franchise when it comes to cutting concrete. Can join this successful franchise as a unit or a master franchise.
Offering an Executive Limousine franchise that caters for the top end of the market in the Sydney metro area. All admin and back of house bookings, dispatch and invoicing done, enjoy the driving!
IN2IT Nutrition & Fitness
FIFO Capital
$50k
$35k $350k+
Croc’s Playcentre
Exceptional integration of branding, centre design , marketing & management skills. Brand leader of children’s indoor play in Melbourne. Great cashflow and profits, now franchising Australia wide.
Taste of Europe
Concrete Cutter
The Ironing Elf
The modern world is all about convenience. Ironing Elf provides a pickup and delivery ironing service. Franchise Owners do not iron themselves but rather market, manage, pick up and deliver. Excellent new business. opportunity.
Baby equipment hire for our customers home & travel needs. Anything Baby offer short & long term hire of high quality baby equipment selected from leading manufacturers and retailers. Simple to learn & operate working from home.
Providing Invoice Finance Services to its customers. Invoice Finance is a financing facility provided to businesses who have outstanding invoices but they can’t wait for those invoices to be paid
$POA
The ultimate infusion – retail and take away tea. Our retail stores sell up to 300 teas and a huge range of teaware. The tea expresso concept brews hot, fresh, loose leaf tea in seconds. Take away tea – made with real tea, real fast.
$40k
$120k
Adore Tea
One of the first franchise opportunities that features nutrition products and a full complement gym – all under one roof! Offering a revolutionary serviceoriented nutrition and individualized professional fitness programs.
Stufflers
Wholesale savings conveniently delivered. Fairdinks provides its customers the savings of big box retail with the convenience of home or office delivery.
$50k
$60k
Fairdinks
World’s largest bear and stuffing franchise. Great part-time work from home business for mums to add to the family income & still have plenty of time for the family. No weekends. 80,000 bears sold last year.
Note: All prices are approximate and subject to change
$300k+
made by you Sergios Cake Shop
Sydney’s Premier Cake Shop chain now available for franchising. Exceptional profit opportunity. Simple to run with all products delivered fresh into your store so no baking experience or equipment required.
+ indicates prices starting from
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AND EXPERTISE
LEADING FULL SERVICE CONSULTANCY
A Shihlin Taiwan Street Snacks franchise offers an excellent business model in the retail food industry. Established and loved by many in Singapore, Malaysia & Indonesia now available in Australia.
Rent4Keeps is a locally based furniture and household appliance rental franchise. Franchisees arrange the rental contracts with the customer and then purchase the products and deliver to the customer directly.
Denny’s
Master franchise for Australia now available. Denny’s is ranked as one of the top 10 US franchises in the US by ‘Entrepreneur’ magazine. A 10 unit licence available with several styles of restaurant format available.
S.V.A Vending
Espresso Lane Drive Thru Coffee
Espresso Lane franchisee’s find a great location for a great. Stir in some marketing support and training and you quickly see that Espresso Lane is the fast lane to creating a successful and smart business. .
Rita’s
$500k+
$500k+
$55k
A sports program for children. As a Jungle Sports franchise owner, you’ll be entering this growing market under an established brand, a tried and tested business model and a comprehensive training programme.
Founded in 2002, BrightStar® Care is a high growth U.S. franchise, providing a full range of medical staffing services, home licensed nursing care, and non-medical care by trained caregivers. #21 in Entrepreneur Magazine’s “Fastest Growing” Franchises.
S.V.A Vending is a provider of Vending Machines Services to businesses all over Australia. Benefit from our vast experience, the right machines in the right locations with the right products at the right price.
ZONE
BrightStar Jungle Sports
Domestic, Commercial, & Carpet cleaners since 2003. Different investment levels to suit everyone. Guaranteed Income. Keen to Clean were Listed Top 5 BRW fastest growing franchise and BRW fast starters 2012.
Rent4Keeps
Master Franchise
Shihlin Taiwan Street Snacks
$29k+
Kleenit is a leading specialist in cleaning, maintaining and protecting assets. With A wide range of services means a wide range of incomes sources for you the franchisee.
$35k
Unscratch the Surface are the glass scratch removal specialists. Fantastic opportunities Australia wide, providing cost effective repair over glass replacement.
Keen to Clean
Kleenit
POA
$250k+
$50k
Unscratch the Surface
$90k+
BK’s Takeaway is a retail food outlet specialising in hot and tasty ready to go food. Traditional Australian fare. Low rent, Highway locations. Outstanding proven business model returning excellent profits.
$140k
BK’s Takeaway
$5m
$165k+
Let us complete the next piece of your puzzle...
The largest Italian Ice franchise in the USA is now available for master franchising in Australia and NZ. Started 1984, now with 560 stores in 4 countries. #1 Specialty Ice Franchise in the USA: ‘Entrepreneur’ Magazine.
www.thefranchiseshop.com.au
Image: Thinkstock
Opportunities | Retail
IN GOOD
TIMES AND IN BAD
Brea Carter looks at three retail franchises that prove profitability is possible despite unsettling economic conditions.
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Retail | Opportunities
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hile consumer spending typically declines during times of economic uncertainty, there are a number of clothing and retail accessories brands that continue to perform as their products are perceived as essential rather than luxury items. At the opposite end of the scale franchises that offer products not considered a necessity can also prove successful in dismal times. IBISWorld’s Personal Accessory Retailing in Australia industry report reads “Luxury products performed well over the five-year period [through 2012-13], driven by continued consumer demand for unique branded merchandise. The revenue and profit of retailers selling luxury accessory items has grown steadily over the past five years.” All in all, the economy is on the up as the threat of the global economic crisis weakens, which means people are more willing to spend their hard earned cash - an overall positive sign for the retail industry. In the aforementioned report, IBISWorld predicts industry revenue will increase to $2.76 billion by 201718 at an annualised 1.8 percent over the next five years. “Retail demand for personal accessory products will stem from continued income growth and a recovery in consumer sentiment, which will boost the spending power of consumers. “Real household disposable income will increase over 2012-13, boosting the spending power of consumers and enabling them to better afford the higher price-tag attached to genuine leather products,” the report states. “Consumer sentiment will increase over 2012-13 due to prevailing low interest rates and an overall upturn in the domestic economy.”
LAUBMAN & PANK Optometry business Laubman & Pank specialises in a product that is no doubt a necessity for those with poor eyesight - glasses, and according to national sales director Ian Taunton the brand specialises in assisting vision impaired Australians. “We have qualified optometrists and qualified dispensers in all of our stores. We look at peoples eyes and understand how we can help them see better,” he says. The team at Laubman & Pank prides itself on its ability to deliver both excellent customer service and an extensive product range. “We have amazing brands of sunglasses and optical glasses. We stock the world leading brands and a huge range within those brands such as Ray Ban, Oakley, Prada and Tiffany,” explains Taunton. “We are also passionate about our customer and tailor the needs of each individual to what we give them as a vision correction - whether that is contact lenses, sunglasses or eyewear, and we take their
geographical location into account.” The brand has developed a range of initiatives to ensure franchisees and their staff embody this philosophy and in turn deliver high quality customer service. “We talk about the Laubman & Pank experience, which is the experience we want to give to our A Laubman & Pank store. Image: Laubman & Pank
customers and our people. It forms a very robust culture within the business, which transfers across to our customers,” Taunton says. New franchisees take part in the Newstart Program, which covers everything they need to know to run their business successfully. “There is ongoing education by way of an annual conference, where we get all of our franchisees together for a few days, and we have meetings on a state by state basis. “We provide specialised education for our optometrists through The Institute of Learning, which ensures they continue to offer our customers state of the art services,” adds Peter Baily, the brand’s director of franchising and acquisitions. Laubman & Pank offers extensive ongoing training and support in the form of an online communications hub and operations team. “All of the resources a franchise partner needs are available online through Magnify, and franchisees can communicate with one another via online forums,” says Baily. “Our operations team also provides a great deal of support - we have regional sales managers who liaise with and visit franchised stores on a regular basis, we have a weekly newsletter and provide marketing support to help franchisees promote their businesses effectively.” While only about 10 percent of Laubman & Pank’s stores are currently franchised, Taunton explains the brand has big plans for the future. “We are reasonably new on the journey but WWW.FRANCHISE.NET.AU
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| Retail Opportunities A D _ F R WI S J A N _ 1 2 . p d f
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FRANCHISE SPECIALISTS WITH Industry Knowledge Call for a complimentary guide to Franchising: Dispute Resolution, Mediation/Solutions & Strategies Franchisee reports and assessments Master Franchisee agreements
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absolutely believe it [franchising] is the strategy moving forward for Laubman & Pank. “We are currently looking to franchise some of our corporate stores and are also actively looking for network growth - we are very keen to grow and expand our network distribution within the markets that we play.” Taunton believes Laubman & Pank is a worthwhile investment because the brand has secured relationships with both Medicare and a number of the country’s largest employers. “We are part of the Medicare system and are actively involved in business to business work, for example, we go out to mining communities and service the needs of employers who are required to provide their employees with eye care and eye protection services,” says Taunton. Taunton and Baily agree Laumban & Pank offers franchisees a number of benefits that food franchises do not. “We provide great products with good margins and the hours are reasonable - you don’t have to get up at 2am to bake bread,” says Baily. Taunton, who has a background in food franchising, noticed a number of differences between the two industries when he joined the brand. “Franchisees don’t have to manufacture a pizza or a loaf of bread on site, which means they can focus their entire energy into delivering solutions for the customer as opposed to manufacturing and developing the product in store,” he says.
PANDORA
International Franchising Employment Law & Workplace Relations
Fixed fee service to Franchisors and Franchisees based on scope of work
While jewellery is not considered a necessity as such, it has a sentimental value and more often than not consumers purchase these items in a bid to temporarily escape bleak times. Denmark-based global jewellery company Pandora is perhaps best known for its mix-and-match charm bracelets; however the brand’s offering also includes rings, earrings, Charm bracelets. Image: Pandora
FCA Member IFLA Member
(International Franchise Lawyers Association)
FANZ Member
(Franchise Association of New Zealand)
Accredited Business Law Specialists Contact: Robert Toth t: +61 3 9612 7297 e: robert.toth@wisemah.com.au
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A Pandora franchise is not just a store, it is an ideology… franchisees are in business for themselves, but never alone WWW.FRANCHISE.NET.AU
Retail | Opportunities necklaces, pendants and Swiss-made watches. In keeping in-line with its philosophy ‘to offer women across the world a universe of high quality, hand-finished, modern and genuine jewellery at affordable prices,’ Pandora’s product range varies rather dramatically in price and items are made of a vast array of different materials. “Pandora’s charm bracelet includes more than 600 charms and clips that you can combine on the bracelet. All pieces are hand finished in solid sterling silver, 14 carat gold, 18 carat white gold, leather or textile,” explains Brien Winther, VP, sales and business services at Pandora. “Pandora’s ring selection includes stackable rings made in silver and gold with gemstones and cultured pearls. Prices start from $49, making this a truly affordable luxury. There are endless possibilities to mix and match rings to fit any occasion.” From the product offering through to its approach to branding, Winther believes there are a number of things that set Pandora apart from other players in the jewellery franchise market. “We offer a strongly branded store concept developed in line with our global brand image. Our collections are the focal point of the franchise package. We always seek to design attractive collections that appeal to our customers [and] our franchise partners have top priority in the event of product shortage,” he says. “To improve the customer service in the stores, Pandora enlists mystery shoppers who evaluate the service provided in store, and loyalty program The Pandora Club helps to retain customers by offering them club memberships and benefits.” When it comes to initial training, it seems Pandora has all avenues covered, and ongoing training is facilitated on a regular basis. “Our extensive support material covers the whole concept from the store layout, induction of new employees and financial planning to ongoing performance assessment, merchandise selection and business development. “Pandora also offers comprehensive initial and ongoing training in sales, customer service, visual merchandising, store marketing and personnel management,” adds Winther. Regional sales managers support franchisees in the smooth running of their store, and the brand is heavily involved in the marketing process. “[They] support the shop in recruiting and training new shop managers, re-fittings, local events, campaigns and assortment selection,” he says. “Pandora provides extensive marketing support to the store - both in terms of executing marketing campaigns as well as supporting franchisees in their own local marketing activities. Each campaign is supported in store with strong visual merchandising, which ensures a universal customer experience.” Winther says the brand has plans to expand both
its presence and product range in Australia in the coming months. “Pandora will sharpen its focus on branded retail store environments and increase the number of retail concept stores in 2014. This strategy is in line with the A typical Pandora shopfront. Image: Pandora
brand’s global direction and reflects the high expectation among our customers that they receive the full brand experience when they buy Pandora jewellery. “We will continue to deliver multiple drops of product each year to excite our consumers and back this with both above and below the line marketing that drives them into our retail partners’ stores,” Winther explains. He believes Pandora is a worthwhile investment because it offers franchisees much more than a bricks-and-mortar store. “A Pandora franchise is not just a store, it is an ideology. Just as every one of our products has endless combination possibilities, a Pandora franchise opportunity is much more than just sales. Pandora franchisees are in business for themselves, but never alone.” Winther adds Pandora prefers franchisees that possess a number of key qualities. “We want to partner with passionate people who want to embrace our concept. They do not need to come from the jewellery industry, but ideally they would be business minded people who want to engage as a true partner in our brand.”
LOOKSMART ALTERATIONS As its name suggests, LookSmart Alterations specialises in altering customers clothing to ensure it fits, feels and/or looks better – a service which tends to be sought after around the clock, particularly by those who cannot sew. In prosperous times the brand’s services may be utilised by customers looking to alter an intricately designed dress that is made of high quality material, meanwhile they may opt to up-cycle, or alter rather than completely replace an item of clothing WWW.FRANCHISE.NET.AU
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Opportunities | Retail
when money is not as readily available. The brand’s national marketing manager, Shari Mitchell explains LookSmart is actively encouraging customers to adopt the practice. “We are keen to further educate our customers about up-cycling, which is where consumers take something old and have it tailored to be on-trend or
Image: LookSmart
new again. It is incredibly popular overseas and is growing in Australia.” She explains LookSmart is different from its competitors in that it guarantees customers a speedy service. “We provide a one hour pant hemming service to our customers, and if the pants are not ready within one hour, the alterations are free. While they wait for their pant hemming, we buy customers a coffee at a local café. “We take great pride in delivering quality alterations in a timely manner. Our customers are time poor and our research shows that 91.42 percent of them rate speed of service as an important/ extremely important factor in choosing a clothing alterations company,” she adds. It is clear the company values customer service, and its day-to-day operation is governed by a rather simple philosophy: ‘Think global. Work local. Support many.’ Mitchell elaborates: “We are a small group of individuals working together within a franchise network to provide a service that benefits and supports over 100 local markets across Australia and New Zealand.” LookSmart values its franchisees, and is of the belief that they will embody this philosophy if the brand treats them well. “The national support office team believes that our franchisees are our customers and if we take diligent care of them, they will provide excellent quality services and take diligent care of their customers,” says Mitchell. Moving forward, she says LookSmart intends to focus on educating both its franchisees and customers. 56| FRANCHISING NOV/DEC 2013
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“Our franchisees are hard-working people and they are loyal to our brand. By dedicating our time and collective efforts we will continue to build a more profitable business for our franchisees, while creating a supportive retail offering to their customers. “Consumers are more value conscious and savvy with their spending, and we want them to look at what is in their existing wardrobes to see how they can make them better without spending a fortune,” Mitchell adds. She explains a LookSmart franchise offers countless benefits, including access to great locations and an extensive customer base. “There are low set-up costs, high profit margins and cash flow, and there is no stock or perishable items. “We have a stable of national accounts with wellknown fashion labels, department stores and corporates that deliver customers to our franchisees, and every LookSmart is located within a large shopping centre,” she says. Training and ongoing support is the norm at LookSmart, as is communication between all levels of the business. “All of our franchisees and/or their managers spend time working in one of our established shops so they understand the business from top to bottom. We encourage open, honest dialogue between our existing franchisees, the team at national support office and potential franchisees to ensure a cohesive understanding of our business,” Mitchell explains. “Our national support office provides ongoing and active assistance – we are available to answer questions, assist with marketing, IT and offer accounting support.” A background in the art of sewing or alterations is not essential; however franchises do need to be passionate and have a vision for their LookSmart franchise. “We look for someone that has a plan for their new
There are low set-up costs, high profit margins and cash flow, and there is no stock or perishable items business, personal goals and business succession. They do not necessarily need to be written plans, but the person needs to know where they are and where they want to be in five years,” says Mitchell. “We also look for someone that has a strong support network around them outside of the business world to ensure a strong work life balance.” F
Proven business in a booming industry Quality high margin products targeting a broad customer base Highly experienced franchisor offering high level support Fast tracked branding delivered through cheeky advertising Franchise offerings to suit franchisee from small kiosk to cafĂŠ with investment in the $150K to $250K
FOR FRANCHISE ENQUIRIES CONTACT:
Robert Hueston Mobile: 0432 455 444 Email: bossdog@5dogs.com.au
www.5dogs.com.au
Get a dog in yah!
Opportunities | Travel and tourism
BOOK IN FOR
BUSINESS Check out how the travel trade is keeping ahead and embracing technology to benefit guests and franchisees
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ravellers, whether they are on the move for business purposes or enjoying a holiday, have choice about where they stay and how they book. Potential investors have choice too. From a multi-brand hotel chain to a network of holiday parks, tourism franchises are opting for technology to help grow their business.
ACCOR Three ownership structures exist in the Accor chain of hotels: a franchise group, a distribution agreement, and a marketing agreement. Dino Mezzatesta, general manager hotel integration at Accor Asia Pacific, says “Our company is one third owned – we own the assets – one third under management contract where we run the hotel on behalf of the owner, and one third franchised, and we provide support. “The more successful franchisees have the possibility to take on a management contract,” he adds. Most independent hotels are regional, and it’s hard for them to distribute and sell their brands, he says. While a hotel might have its own online inventory, to get a hotel on the first page of a website such as Expedia is hard. “We’ll always have preferential relationships,” Mezzatesta says. So there are advantages to joining a franchise network: a large hotel group can offer procurement, public relations and advertising support. Franchisees pay a franchise fee, a reservations 58| FRANCHISING NOV/DEC 2013
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fee for bookings acquired through the Accor system only, and a technical fee. Accor is also a global business which includes international brands Pullman, Sebel, Mercure, Novotel, Ibis Styles as well as the MGallery boutique name. “When you join the brand, that means a commitment to delivering standards,” says Mezzatesta. Franchisees are provided with guidance and tools to manage the brand, “We have the luxury of being branded, all global.” In Australia the latest development is a serviced apartment concept under the Sebel name, which is tapping into a niche market; the first property will be in Melbourne.
BIG4 “We’re not the traditional one size fits all franchise,” says Big4’s Ray Schleibs. The holiday parks business conducts research every two years and has achieved 70 percent brand awareness in the Australian population among hotel brands, with a 46 percent rate of recognition without any prompting. “Holding a brand to a truth is important,” says Schleibs. “There are strengths and weaknesses in being a market leader. Everyone watches you and you have to keep driving the brand. Everyone else gets halo marketing,” he explains. The power of a brand is to deliver, to reach customer expectations.
Travel and tourism | Opportunities
Image: Thinkstock
“If you can’t do that your brand is broken.” The foundations of the Big4 promise are excellence in customer service delivery, in cleanliness and safety, in facilities and park presentation, and in delivering a unique holiday experience. “They seem fairly simple points but research shows these are trigger points for our customers.” So how does the company ensure consistency in the group? Through measuring and managing, says Schleibs. And he’s proud of the company’s complaints record – about 100 out of 50-60,000 visits. It is the result of a rigorous approach which includes marketing and branding as well as the delivery of the brand promise at park level. The latest is the first TV campaign for seven years for Big4. It will run on social media and mobiles sites too, and links directly to the holiday parks. The branding allows for Big4 to remain in the top five slot among branded accommodation on the web, says Schleibs. Technology drives “Each park has its own microsite they can manage at park level too. Some we manage, some they manage, with photos for instance.” The technological improvements are paying off. Live booking direct to the park has been a great innovation, with bookings worth $25 million taken online. A fully bookable mobile system has been rolled out for nearly two years and accounts for 40 percent
Travel statistics In 2012 domestic tourism resulted in 282 million nights spent away from home, according to the National Visitors Survey conducted by Tourism Australia. And when it comes to overseas figures, the statistics reveal there were 6.1 million arrivals in 2012. While government body Tourism Research Australia expects the trend to continue for more Australians to holiday overseas than foreign visitors will make the trip here, it still forecasts visitor increases of 3.3 percent on average each year until 2021. Growth in domestic travel is expected to stay steady [Tourism Industry Facts & Figures At A Glance September 2012].
of the bookings with tablets proving significant booking tools channels too. “This puts our parks ahead of the curve,” says Schleibs. And it means franchisees don’t have to build their own mobile versions of the website. “Technology really drives everything. We have portals for our parks to communicate with us,” he adds. In addition to guidance and tools for marketing, pr and social media which are available as online resources, there is educational support which the business development team manages online. » WWW.FRANCHISE.NET.AU
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Opportunities | Travel and tourism
A Big4 holiday park. Image: Big4
The company also has its own reservations system, Park Accommodation Manager, which was introduced five years ago. The idiosynchrocies of park management have been incorporated into this tailor made program which Schleibs says has been “incredibly successful”. So what’s next? “We’re about to go into strategic planning in March for the three years ahead. Our objective is to stay the brand of choice, first of mind – for the right reasons.”
Research has always been critical to follow the evolving needs of customers
TRENT FRASER CEO of Choice Hotels Australia
A significant national footprint is on the list, and there is still plenty of potential for existing holiday parks to re-badge he says. In the two and a half thousand to four thousand holiday parks that operate across Australia there are only 180 in the Big4 chain. But, he admits, “we have the lion’s share of the best parks in the country”. The best quality parks in the best locations with the best operators – that is the aim, maybe a final portfolio of 200 parks nationwide, he says. “We need a national footprint so someone can stay at a Big4 on their way to a destination anywhere in Australia.”
CHOICE HOTELS Choice Hotels Australasia is a pure franchise organisation, explains CEO Trent Fraser. The system has 6200 hotels worldwide and 280 in Australia. Economy Lodge, Clarion and Quality are all three star hotels, the Fine Hotel Collection introduced in January this year is a 4-4.5 star business.
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“There was an opportunity for niche, upmarket, boutique, heritage properties that are difficult to put into a core brand. “Every property asks how do I get to the next level? What can you offer that we don’t have access to? What we offer is exposure to the global market,” says Fraser. Properties in the chain overseas can cross-sell, as can the Australian and New Zealand hotels. “Franchisees are not just buying into the domestic market. Business coming through our channels to properties is delivering 20 percent of properties’ turnover. “The [cloud-based] property management system Choice Advantage is available to nearly 40 percent of the portfolio, we hope 50 percent by the end of the year. To do it properly we were reluctant to do too many at the same time; we want to plan around the deployment so we can control it in an orderly fashion.” Fraser is mindful too of franchisee investment in front office hardware and wants to give these franchisees the chance to use up their commitment. The majority of franchisees are expected to have adopted the new system by the end of 2014. While about 10 percent of the growth is through new builds, the remaining 90 percent is existing hotel businesses joining the system and re-branding. Access to training The Choice value proposition has four key elements: marketing on a global scale; a sales team; a reservations contact centre in Melbourne; and field support and training. Staff at a new hotel will undertake online initiation then group training in a classroom. Webinars are a successful development, last year 100 were conducted from head office, says Fraser. “Individual hotel owners don’t generally have the resources or don’t have access to these things.” And the benefits add up, he believes. In addition there is a heavy focus on service around the front desk. A new initiative aims to spread the knowledge about the service functions and the daily challenges faced by hotel staff. “What we’re doing to support them is for our team to work in a hotel for a day. Some people have come from hotels but some have not, and it’s important to get people back in, or for those without the background to see what it’s all about. “I’ll be the first one out. There will be 80 people in total doing a full shift. The ideas is for us to share some learnings and identify areas for improvement. We’ll probably make this an annual exercise. “We want customers forming a relationship at the hotel. We need to make sure we are delivering on the service level when they get there, and that they come back. “There is no second chance at first impressions.” »
Opportunities | Travel and tourism
QUEST SERVICED APARTMENTS
PAUL CONSTANTINOU Chairman of Quest Serviced Apartments
Quest Serviced Apartments founder Paul Constantinou welcomes the addition of healthy competition such as Accor’s Sebel apartments, he says. “What it does is provide another brand in the market. Competition shows you are not a lone pioneer and it challenges you to maintain a relevant proposition to the customer.” But he adds, “the biggest competition comes from ourselves. There’s a continual focus on what we do.” For Quest its niche in the market for serviced apartments is in extended business stay. While travelling for business individuals might like the idea of a five star room with frills, what they really need is to be able to do their work efficiently so they can go home, says Constantinou. Research has always been critical to allow Quest to follow the evolving needs of customers, and define the products they really need. “We’re dealing with a new generation and they have different needs,” says Constantinou.
A typical Quest reception area. Image: Quest Serviced Apartments
infrastructure spend,” explains Constantinou. The speed of technological change has meant Quest has focused on specific business gains when introducing new systems. For instance, franchisees gain significant operational benefits in running back office admin and accounts with the use of a cloud-based system. Looking ahead On the guest front, what’s important is how they It’s important to understand what accommodation pay their bill, and how internet access is provided. demands will be in five to 10 years, and where custom“Good fast broadband provides enormous effiers will be moving for business in 10 to 15 years. ciency for a guest,” says Constantinou. “Younger It takes up to five years for a new property to be travellers carry their news and videos and music on built and opened for business. their own devices and want to know how to put their “We go to the top 500 corporations and try and content on our TV. We need to be facilitating this. build relationships where they are developing and “We’ve put the customer in control – they can eat growing,” he says. out, eat in, cook for themselves. If they are a nonWhere once businesses were happy to be in a city discretionary traveler they just want to get the job centre the trend has been for some time to invest in done and get home.” sites in industrial parks. A steady growth of regional and suburban demand F R 1 1 1 3 _ 0 0 0 _ Population v e r v e growth 1 and 2 0business 1 3 - 1are 0 -good 0 9 T 1 1 : 1 6is :good 2 8 news + 1 1for : the 0 0accommodation sector, and supply indices for accommodation: “we follow government now needs to catch up, says Constantinou. F
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Become a key ingredient in our success McDonald’s has always been a franchising operation and has relied on its Franchisees to play a major role in the success of the business. The organisation has grown from one restaurant in 1971 to 909 restaurants across the country in just over 40 years, with almost 80 percent of McDonald’s restaurants owned or operated by Franchisees, from which over 1.7 million Australians are served every day. Having dynamic individuals that are able to create high performance environments locally in their restaurants is crucial. Tony Aichinger, the McDonald’s Franchisee in the Wagga Wagga area in regional NSW, is one of these individuals, here’s his story.
Tony’s Story Tony Aichinger, along with his wife Luita and four children, is the Licensee of four McDonald’s restaurants. Before entering the McDonald’s franchising system in 1996, Tony worked with the NSW Police Force for 10 years. “I loved being a police officer but after years in the service felt that there would be additional growth and progression opportunities elsewhere. I came home one day, opened the paper and saw that McDonald’s was opening a restaurant in Gundagai, very close to where we were living at the time. I knew next to nothing about McDonald’s, I called the owner of an existing restaurant, Ken Tagg, that I had met previously. He told me in McDonalds “You get out what you put in” and he was right!” It was the tried and trusted franchising formula of McDonald’s that really appealed to Tony. “Being a Licensee with McDonald’s comes with the same opportunities and responsibilities of running your own business, but with McDonald''s added support. The benefits it provides over franchising with other businesses are unrivalled.” Tony initially took on a new restaurant on the Hume Highway at Gundagai. Then moved to Wagga Wagga in 2000 and has grown the market from two to four restaurants with staff numbers exceeding 300. “I am fortunate enough to be part of a company that allows me to dovetail my interests into my own business. We facilitated the building and opening of the local Wagga Wagga Ronald McDonald House seven years ago and have also participated in several other fundraising initiatives over the years, including the development of the Herds of Hope, a national initiative which brings together the rural and business communities; and the Southern NSW Ride for Sick Kids.” “To raise much needed funds for Ronald McDonald House Charities, I established ‘Herds of Hope’ with other members of the Australian Beef industry. It was a natural fit when you consider that McDonald’s buys over 100 thousand tonnes of Australian beef per annum. By placing Herds of Hope ear tags on cattle, and donating the proceeds of sale, the rural community of Australia have a great opportunity to give back to children from the bush through Ronald McDonald House Charities.” In April last year, Tony and Luita were awarded the Golden Arch Award, for delivering a superior customer experience across their restaurants, organising local community initiatives, and enhancing the reputation of the McDonald’s brand. The award is only presented to the top one percent of McDonald’s operators across the globe every two years, and is only the 14th time that an Australian McDonald’s Licensee has been recognised. Tony has illustrated through his achievements how to bring together a great sense of community involvement with fantastic business results.
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Opportunities | Financial services
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NUMB3R$ Low cost entry, flexible working conditions and business support - what’s not to like about investing in a financial services franchise? Domini Stuart reports.
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any would-be franchisees are drawn to the range of benefits offered by financial services brands. The most obvious is a relatively low cost of entry, with a typical purchase price of between $30,000 and $40,000. There’s often an option of working from home so you can avoid office rental and fit-out costs. Many require little or no previous experience in the area. And, while there’s often enough flexibility to attract people with a family or other commitments, there are opportunities for growing a seriously large business. »
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“I CHOSE A 20% RETURN ON MY INVESTMENT.” When Phillip V. chose to invest in Speed Queen laundry, it was to bank on the proven performance of an industry leader. Sure, he likes the average 20%* ROI in a nearly recession-proof industry and the fact that he will likely break even in less than a year. But, what does he like most? Being backed by the world’s largest distributor network and the freedom to do business his way. Visit speedqueen.com.au/invest or call 1300WASHER (927 437) to get started. *According to the Coin Laundry Association.
Opportunities | Financial services
FIFO CAPITAL
IMAD MAATOUK Fifo Capital franchisee
Imad Maatouk has owned businesses for more than 20 years so he’s very familiar with the challenges that can bring. “The most pressing is generally cash flow,” he says. “This can be particularly difficult when your business is growing. If you don’t have the resources to service new clients it can be almost impossible to expand efficiently. It’s also hard to focus on day-today business activities when you’re spending most of your time chasing money.” Fifo Capital franchisees help their clients to smooth out their cash flow with what is known as single invoice financing. They purchase individual invoices from their clients and immediately advance 80 percent of the value then pay the balance, less a fee, when the client’s customer pays them. “I was looking around for a new venture and, as soon as I saw Fifo, I loved the concept,” says Maatouk. “Single invoice financing was very appealing to me because I know how much businesses need this kind of service.” Matouk is an experienced franchisee – he has owned three different franchises in the past – and he was impressed by Fifo’s business model. » “I could see right away that this is a very fair and reasonable franchise,” he says. “The model hasn’t been developed solely for the benefit of the franchisor.” When he bought his franchise in April this year he had no experience in financial services. “The training provided all the skills and information I need,” he says. “All franchisees get three days’ training at head office, three months with a business coach and then a manager who provides ongoing help, advice and support.” Like Matouk, other Fifo franchisees have found a background in business useful in that it helps them to relate to clients. A sound understanding of financial markets and the ability to quantify risk can also be valuable. Franchisees can run the business from home and, depending on their goals, have the flexibility to work around family commitments and other interests. When the business is established, much of the franchisee’s work involves repeat transactions for regular clients so they can work anywhere there is an internet connection. For the future, Maatouk is committed to Fifo and
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continuing growth. “My plan is to bring on staff so I can work fewer hours but still enjoy a good income and the benefits of running my own business,” he says.
JIM’S FINANCE PROFESSIONALS When Jim Simos decided on a Jim’s Finance Professionals franchise he was also attracted by the brand. “Jim’s is an iconic name in Australia,” he says. “Almost everyone you speak to has used Jim’s services in one way or another and I was excited to be part of that. At the time, Jim’s Finance Professionals was quite new to the group and I also liked the idea of being in with a franchise from the beginning so I could be part of its growth.” Whether it’s to buy a home, start a business or purchase a car, most people need finance more than once in their lives. Simos helps his clients to sift through a potentially bewildering range of options so that they can feel confident they’ve made the right choice. He can also help clients to structure and finance an investment strategy. “A background in finance isn’t essential but I was a bank manager before I bought the franchise and I’ve found that this experience has been a tremendous help,” he says. Since a few rogue operators infiltrated the area some years ago the whole sector has been subject to very tight regulation. “Now everyone in the industry must be accredited and have the appropriate qualifications,” says Simos. “Every Jim’s Finance Professionals franchisee is given specific industry training before going out into the workforce. And, as mortgage brokers, we also receive consistent and regular training through a number of channels including seminars and webinars to ensure that we’re always on top of any changes. »
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“Every franchisee that comes on board also has to go through three to four days of training at Jim’s head office where they get to know all about the brand and what it stands for.” Simos started out working from home and, as with any new business, the early days were challenging. “There’s no escaping the fact that the first few months will be tough as you get used to working on your own,” he says. “But, if you’re 100 percent committed to the process and stick with it, it will come good. The Jim’s Group is always there to help but you do have to remember that you’re the owner of the business so you’re only going to get out what you put into it.”
I’ve got to the point where I’m working full time hours plus, so I’m ready to start employing other people Recently, Simos reached the stage where he needed to take the franchise to a new level. “Moving into a brand new office was the next logical step,” he says. “It’s exciting and shows just how much growth we’ve achieved in a relatively short time frame of just over three years.” Having the support of his family was important, particularly at the outset, but now they’re starting to enjoy seeing more of each other. “I worked from 8am to 7pm most days at the bank so I really appreciate the flexibility I have now,” he says. “My two sons are aged five and nine and I’m able to be much more active in their lives than I would have as an employee.”
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FIRST CLASS ACCOUNTS Michelle Timperley enjoyed working in an accounting firm and knew she wanted to be a bookkeeper. The question was should she buy a franchise or go it alone? “I did a lot of research and, in the end, the promise of ongoing training and support convinced me that a franchise would be the better option,” she says. “I then did due diligence on a number of brands and chose First Class Accounts because I felt they were particularly strong in this area. The biggest influence for me was their intensive eight-week training program and the opportunity to attend quarterly regional training sessions and a national conference every year. The support is outstanding and there’s lots of knowledge to be gained.” Fellow First Class Accounts franchisee Ann King was also attracted by the quality of the training and the strength of the brand. “The franchisor won’t certify you or let you start trading until you’ve been through their training, which is a really good thing as it protects the brand.” she says. “There are some bookkeepers out there who shouldn’t be doing the job because their knowledge and skills aren’t up to scratch so it’s good to know that everyone under the First Class Accounts name really is top notch.” King has worked in accounting for her entire career so she found the fi nancial aspects of training easy but was still surprised by how much she was able to learn. “I had been using MYOB for about eight years, working for a company with an $8 million turnover,” she says. “I thought I knew everything there was to know about MYOB but I found there were quite a few helpful things I didn’t.” However, it was training in sales and marketing that she found most valuable. “I don’t have a sales or marketing bone in my body so this was my biggest fear,” she says. “In the initial training sessions, they were talking about ways of growing a business I’d never
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Financial services | Opportunities
thought of or even heard of. I could never have done it on my own.” She was clearly paying attention. After just 12 months with First Class Accounts she received the network’ award for the Best Emerging Franchisee and, 12 months later, was named Franchisee of the Year. Counting the costs “Given the calibre of the other franchisees I was thrilled and honoured to be recognised in this way,” she says. When King was originally considering a franchise she spoke at length to her accountant, a man who had chosen to travel a different path. “He had taken a redundancy package from one of the big five firms and then started his own suburban practice,” she says. “At first, he was concerned about the amount of money that I was going to spend on purchasing the franchise but, by the end of our meeting, he realised that he had spent about the same in setting up his own business. “He’d also had to work a lot harder because he was doing everything from scratch. Everything I needed was provided – a brand, logos, stationery, templates, manuals and procedures. All I had to do was run the business according to the guidelines and provide services to my clients.” King also disagrees with the people who consider royalties to be an unnecessary ongoing cost. “Things are changing rapidly in this industry and it’s easy to get left behind but, if you don’t get things absolutely right, you could be breaking the law or, at the very least, making life difficult for your clients,” she says. “First Class Accounts keep me up to date with everything from changes in legislation and software products to the latest developments in cloud accounting. If they didn’t, I’d have to employ a really top operator to do the same job for me so I consider
that my royalties are very well spent on a valuable support team.” Now into her fifth year of business, King has started to increase her billable hours by hiring part time contractors. She is also moving closer to her goal of opening a commercial office on a main road. “I started out working at home in the fourth bedroom then moved the office downstairs where there was enough space to accommodate more desks, chairs and computers,” she says. “But I do believe that street exposure will help me to grow the business to the level I’m aiming for and, at the moment, I’m learning how to be a more effective manager in preparation for taking on more staff. One franchisee in our group has something like 20 contractors, so I know that there’s a lot of scope for growth.” Timperley, who bought her franchise in 2010, is also keen to grow her business. “I’ve got to the point where I’m working full time hours plus, so I’m ready to start employing other people” she says. “In a few years’ time I’d like to step back from the bookkeeping to run and manage the business, still having face-to-face contact with clients but having someone else behind the computer doing the data entry.” Asking the right questions Despite her own success, Timperley can see that a franchise isn’t right for everyone. “While you’re making the decision you can’t ask too many questions,” she says. “When I did my due diligence I wanted to speak to a franchisee who was new, someone who had been in the business for two years and someone else who had been in it for five years so I could get an idea of how it might develop. It was really important to me that the feedback I got from all of them was positive.” King believes that the secret of success is to love what you do. “I often talk to prospective franchisees and I’m really concerned for those who simply want to buy a job,” she says. “All business owners will
MICHELLE TIMPERLEY First Class Accounts franchisee
ANN KING First Class Accounts franchisee
The training provided all the skills and information I need periodically come up against hurdles and there will be times when you have to work very hard for extended periods. If you’re not passionate about accounts, what you do and the services you provide to your clients, I think it will be a lot harder to overcome those challenges.” F WWW.FRANCHISE.NET.AU
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All images: Thinksrtock
Issues | Franchise success
HOW TO SPOT A
MONEY MAKING FRANCHISE ProямБt counts when it comes to business success.
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Franchise success | Issues
E
veryone wants the same thing in franchising: a business that turns a good profit. It doesn’t matter whether the investment is less than $30,000 or in excess of $500,000, there’s no point investing in a business that doesn’t bring in the revenue required. But finding one isn’t always as easy as it sounds. So just how do you go about sourcing financially rewarding franchised opportunities? Here are 12 ways to identify a successful franchise:
money. Ensure you really understand the finances and the fees. A Greenfield site doesn’t have any history to consider, and while outlets in similar locations can offer a guideline to what business can be achieved, each business will differ. There can be no guarantees to turnover or profit.
Analyse the incomings and outgoings to see where cuts can be sensibly made to increase profit
1. WHAT’S FOR SALE? First up do your research on existing outlets. Find out how many units are for sale in the network; too many and it’s not a good sign, too many closures or terminated franchises on the list is a negative too. Find out from the franchisees why they are selling up.
2. LOOK AT THE FIGURES If you plan on purchasing an existing store its trading history will allow you to track the finances, and the greater the transparency the easier it is to have confidence in the business. It’s always worth getting an accountant to look over the figures to ensure there areFno R hidden 0 9 1 3 traps _ 0 9and 2 _that U Nyour I -rental 1 payments 2 0 1 3 - 0 for instance are reasonable and allow you to make
3. BE VIGILANT OVER COSTS Analyse the incomings and outgoings to see where cuts can be sensibly made to increase profit, and ensure all the extras like tax, superannuation, insurance, commercial rents and interest payments are all accounted for. Check whether there will be refurbishment costs when you take over an existing 8business, - 2 2 T 1or6whether : 0 8 : there 1 3 +is1new 0 : livery 0 0 and branding in the pipeline. »
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Issues | Franchise success
4. PROFIT POTENTIAL Look for a business that still has plenty of room to grow. Investing in an existing franchise makes sense if there is evidence of future profits to garner, whether that’s through turning around a poorly performing business or untapped potential in the market.
Pay over the odds upfront and it will be hard to recoup your investment 5. DOES IT HAVE LEGS? Pick a franchise with longterm prospects. It might be exciting to be part of a new concept but if the idea has limits and looks like a fad, it’s not a great investment when you have to sign up to a three or five year term. And remember that even if you make money from the venture, it has to have potential to have a good re-sale value.
6. IS THERE A VISION F R 1 1 1 3 _ 0 0 0FOR _ M I THE X - BUSINESS? 1 2 0 1 3 -
from selling franchises or from ongoing fees? You want to be linked to a franchisor with a vision for the business, and the ability to support the franchise network as it grows. Find out too if the franchisor wants to extend the business overseas and whether they have the capacity to manage and support the domestic franchisees while attending to global growth.
7. DOES THIS SUIT YOUR PERSONALITY? Ensure that the business you have chosen is one that you can see yourself working in for the term of the agreement. Match your skills and what you enjoy with the franchise, don’t just pick a money-making prospect for the financial gain. You’ll be doing the job day in, day out. And if you don’t enjoy the experience your work will suffer, staff and customers will pick up the negative vibes and what started out as a promising business will soon show signs of decline.
8. CHECK OUT FRANCHISEE EXPERIENCE
Speak to other franchisees, both current and former, 1 0 - 2 1 T 1 4 : 4 4 : 1to8gauge + 1 1what : 0 0they think of the franchisor and the Identify how the franchisor makes money. Is it brand. If they wouldn’t invest in the company again,
is now G FRANCHISIN Why buy a Mix&Go FroYo Franchise
Contact Matthew Shaw
Franchise Manager Mix and Go Froyo Franchising PTY LTD P: 0413 805 728 E: franchise@mixandgofroyo.com.au www.frozenyogurtfranchises.com.au www.mixandgofroyo.com.au
76| FRANCHISING NOV/DEC 2013
• Join an existing froyo brand • Self Serve Concept means low wage costs • Simple and very easy to Manage • Open multiple stores • Extensive Training and ongoing support for Franchisees • Low Franchise fee and Royalties • Be your own boss • Starting from $124,000
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Franchise success | Issues
find out why. Not everyone is happy in a franchise system but too many discontented voices should raise alarm bells.
9. MULTI-UNIT GROWTH Not all systems encourage multi-unit franchising, but if the one in your sights does, then how many franchisees have been able to take on a second or third business thanks to their financial success and business skills? How have they managed the transition from single unit ownership to running multiple sites? Find out what assistance they received from the franchisor in the process.
10. LOOK FOR SIGNS OF HAPPY FRANCHISEES Some franchisees are content to keep their business ticking over rather than build up an empire, but it would be a rare individual who is happy to see their investment not making a good return. And are the goals and achievements of the existing franchisees similar to yours?
stay focused on the business and to resist complacency once the business has reached an acceptable level. Some franchisors regularly benchmark their franchisees and keep lifting the bar but in franchise systems where driving the business is left entirely up to the franchisee, it can be easy to let success slide 11. CONSIDER THE RETURN simply through lack of focus. ON INVESTMENT If there are two sites where the financials are in Pay over the odds upfront and it will be hard to order but there is a different approach from the franrecoup your investment when you come to sell; the chisee, it will not be the disgruntled franchisee who next buyer will want value too. So it is vital to under- leaves running the business to others who becomes stand how you will meet your financial goals: will successful but the positive, goal-focused franchisee it be through a high income as you trade, or from a who works in their business and inspires their team. capital gain when you sell? A potential franchisee has to make a judgement about the proposed business opportunity; there is 12. CHECK YOUR ATTITUDE no guarantee of success though, however good the Youâ&#x20AC;&#x2122;ll need to be driving the business, and whether numbers might be. youâ&#x20AC;&#x2122;re doing thorough and A D a_ one-person F R E C O Jdynamo A N _ 1 or 3 leading . p d f a small P a gteam e 1 4 It / is 1 worth 2 / 1 2 , 1 1 : 1 4 due A diligence M of employees, it all comes down to you. It helps to taking expert advice before making the decision. F
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Issues | Operations manuals
WHAT MAKES A
GOOD OPERATIONS MANUAL? Itâ&#x20AC;&#x2122;s the bible of any franchise network so franchisors need to get their operations manual right.
PETER BAILY OPSM director of development Asia-Pacific
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Operations manuals | Issues
P
eter Baily, director of development AsiaPacific for OPSM, explains how an oldschool operations manual was given a new lease of life. When Baily started at the Luxottica business which includes the OPSM brand the operations manual was “pretty useless” he says, and “quite legal in structure”. Alongside building a franchise set-up he spent three to four months re-invigorating this operations document. “It needs to be engaging, with good graphics and have smart IP with legal protection,” he says. He makes the point that it was important to shift the focus away from providing optometry guidance to include information that will help franchisees run their business. “We assume optometrists know how to do this [optometry] but some useful business information was missing.”
One of the really good tests of an operations manual is whether you use it to train new franchisees A practical approach Getting the format right was important, Baily says, highlighting the importance of design and consistency of content. Each module is divided into six sections which follow a set format: an overview, an introduction to the concept, expectations of what franchisees will need to abide by and how they can utilise the information, the OPSM way, support tools, and learning links to extra training modules. “One of the really good tests of an operations manual is whether you use it to train new franchisees. We bring it in for training and induction and work WWW.FRANCHISE.NET.AU
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Operations manuals | Issues
through the manual, workshopping some elements.” OPSM’s operations manual is a fully indexed, searchable online publication. “I absolutely believe in delivering it online. It makes it easy to update, and we don’t have to rely on franchisees substituting new pages, we can make changes easily. “We do two reviews a year, one a quick look, one more thorough. As things change, it’s a live document,” says Baily. “The trap can be for franchisors to build a manual, and put a lot of effort into it, then it sits on a shelf for a long time and then it’s a massive job to update it,” he adds. Baily says it’s important that the document does contain legal elements. “There is obviously a legal piece to it that underpins standards in the business, but it’s important to do it not like a legal agreement.” He has found that occasional testing of possible scenarios also helps to keep the manual relevant. “You can ask, what happens if there is a breach in OH&S legislation for instance to test if we can take action.” So how do franchisees use the OPSM manual? “They know 80 percent of what they need to know to run their business, but they might have a question and can find the answer in the manual. If they ring us, it’s our first question, ‘have you looked in the manual?’”
FROM MCDONALDS TO NARELLAN POOLS With experience spanning McDonald’s, Krispy Kreme, the Franchise Relationship Institute and now strategic advisor at Narellan Pools, Debb Meyer has seen the value to a franchise system of a good operations manual.
To do a good job the manual needs to be focused on more than how to operate the business “The operations manual is the bible for the system; at McDonald’s we lived and breathed it.” Meyer admits though that a small system might simply be documents here and there, but as the system grows, she says, all this information needs to be brought together to form a fully functioning operations manual. To do a good job the manual needs to be focused on more than how to operate the business, she says. »
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Issues | Operations manuals
How easy is it to use? On top of content, the style and presentation needs to be considered. “If someone is online at 10pm on a Saturday night after a full day at work, how the manual is written is really important.” Meyer believes in employing a professional to write the content. “It is fundamental to the general development of a franchise system. “It’s hard to tell all franchisees to do something and so this is a critical investment to document the system. It’s critical to follow systems. If it’s not clear and concise it’s hard to manage.” Of course the practical elements of the business need to be recorded with team members able to access information such as how you install a pool. While Meyer is convinced manuals should be online she admits it can be a challenge. “The average age of our franchisees is about 50 and moving from hard copy to online isn’t easy. But it is more accessible and more cost effective. Franchisees can’t ignore technology these days.” Even though emerging franchisors don’t invest they do see the necessity for online, she says. Updates are easy so there are no excuses.
Image: Narellan Pools
The focus for Meyer is people, sales, profit, leadership. Even multi-unit models are a focus with a succession planning section included in Narellan Pools’ operations manual. But the power of the manual is dependent not just on the franchisee network but on the franchisor team embracing it as a tool. The franchise team needs to be passionate about directing them to the manual, says Meyer. F 82| FRANCHISING NOV/DEC 2013
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Evaluate a manual Image: Thinkstock
Valuable back office information such as how to hire a team and recruit top talent is vital. “How do you manage cashflow, how do you work out your accounts? This is important because back of house is where franchisees will fail.”
Greg Nathan, the founder of Franchise Relationships Institute, explains what to look for in an operations manual. Six questions to ask 1. Is it culture friendly? A good manual captures the values, culture, language and feel of a franchise. It’s like part of the family furniture, reflecting the character of the business. Does the manual fit comfortably with the people who are supposed to use it? 2. Is it up to date? The contents should contain everything needed to guide and support franchisees to success. Have the contents of the manual kept up to date with the evolution of the business model? 3. Is it brand aligned? Every sentence in the manual should align with the brand, which is the reputation you are wanting to create in the mind of your customers. Do all elements of this manual clearly link to and support the ideal customer experience? 4. Is it a connection point? An effective manual connects every element of a franchise system together. Does the manual connect to your operational checklists, templates, learning resources and training programs? 5. Is there online version control? The franchisor and franchisees need to have easy, online access with user friendly navigation. Can the franchisor conveniently create updates and can franchisees conveniently find what they need to know? 6. Is it an accepted go-to-guide? Ultimately it’s not the manual but how it’s used that makes the difference. Do your franchisees habitually consult the manual before calling field consultants or support office for help?
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Issues | Retail
WHAT IT TAKES TO
WIN AT RETAIL Is choice the key to retail success? Shane Flynn believes so.
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Retail | Issues
S
hane Flynn was a significant player in the Flight Centre business. Now he’s brought his experience to bear at retail franchise, Sleepy’s. “You need to look at everything from the customer’s point of view. If you think something is a great idea, but it isn’t for the customer, it’s irrelevant. “For example, the Sleepy’s Forest range of beds was biodegradable, it was launched with lots of marketing, it was all about saving the planet; it sounded great but the customer just didn’t want it. “It’s a matter of timing; it was looked on as a failure, but in five years time we could relaunch it if the public is ready. “Product and the relationship with the customer are critical. This is based on how many ways you can touch the customer. “The traditional way is through bricks and mortar, but customers are increasingly mobile, constantly on the move, so you have to be not just about beautiful shops, although that helps. “The customer has already done their research and is aware of what they want, but one thing I’ve learned is there is no particular way to work out when the customer is ready to buy a new bed. We sellAfrom toNpeople D _ Fplaza R V Istores PJ A _ 1 3 with . p dmilk f and P a bread ge 1 in their trolleys.
GET ON THE CUSTOMER FREEWAY “I refer to it as customer freeways. Customers gather information, check information and transact, and there are so many lanes. I look at this as a bridge where they have to pay.
Retail is all about making a sale and... giving the customer a great experience “The internet lane has got to be a great experience, then they change lanes to the telephone, then change back to the internet, then go to a bricks and mortar store and pay the toll. But if there are potholes in the lanes, they go to another freeway. “We’ve got customers who buy beds 100 percent over the phone, through the internet and in stores. “Retail is all about making a sale, and it all gets down to giving the customer a great experience. “The more lanes on the freeway the more likely they are to enter because they have choice; choice of product 1 0 / 1and 2 / choice 1 2 , of channel. 6 : 1 3 PM “Choice is a driver to purchase.” F
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Issues | Franchise fees
GETTING VALUE
OUT OF YOUR FRANCHISE FEES
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Love the opportunity, excited about the brand, can’t wait to get started... just not sure about the fees you’ll be paying?
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Franchise fees | Issues
W
hen anyone invests in a franchise business, an upfront franchise fee and ongoing royalty payments are an expected part of the contract between franchisee and franchisor. However not every business will offer the same fee structure, and there can be wildly differing payments from franchise to franchise. So how do franchisors ensure their offer adds up in the value for money equation, what support and brand building should be included, and what should franchisees look for?
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Franchise fees | Issues
Franchisees pay twice for what the franchisor provides (leadership) is one of the core reasons for franchisee failure and dissatisfaction with franchise fees. “As a prospective franchisee therefore, I would be significantly more attracted to a franchise system that clearly understands its market place and is proactive in supporting individual franchisees to deliver the promise and succeed - regardless of their location, size or resources. “I think a more genuine and tailored approach delivers stronger franchisees and therefore stronger networks and brands. “The alternative is generally a cyclical, process driven audit mentality which makes the franchisor and their staff feel they have done their job, upheld the brand and provided value for money. However, in my experience, likely F R 0 7 1its3more _ 0 0 0 _ to T lead C H to-lip-service 1 2 0compli1 3 - 0 ance from franchisees and ultimately, dissatisfaction
with fees, charges, quality of support etc. “Obviously, all this is predicated on the fact that the franchisor has recruited the right franchisees based upon their financial, commercial and emotional capacity. “Similarly, they have a proven and successful brand and their field support teams are suitably qualified and motivated to deliver support. Without these elements in place, even the best support processes will probably fail anyway.”
FRANCHISOR OBLIGATIONS Tony Arena, BCI Business Brokers “Franchisees pay twice for what the franchisor provides. Firstly they pay an upfront franchise fee which strictly should be amortised over the term of the franchise. For example if you pay $40,000 franchise fee for a five year term with a five year option, then you are actually paying $4,000 per year for the right to trade under the brand. The franchisor has to justify this price by showing value for the investment. “The second payment is the franchise royalty. This is for actual support in the field and other services that the franchisor supplies to the franchisee. The franchisor is also entitled to a percentage profit the 6of- this 1 3 as T1 4 : in 2 6return : 0 0for + 1 0 risk : 0 undertaken. 0 “When a franchisor is greedy, you will see them
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Issues | Franchise fees
charging the upfront franchise fee whenever a franchise changes hands, whether the outgoing franchisee has had one year or 10 years worth of their $40,000 payment. This is clearly a money grab. “Franchisors have a responsibility to see their franchisees succeed. If a franchisee is struggling and the blame can’t be sheeted home to the franchisee, then the franchisor is under an obligation to forego some of the franchise fee to ensure the franchise survives and thrives. “When more than 20 percent of franchisees are not getting what was promised when they entered the franchise, and it is not their fault, the franchisor needs to act.”
THE INVESTMENT POTENTIAL Callum Floyd, director, Franchize Consultants “In my opinion potential franchisees and their advisers would be wise to focus early attention more on the investment potential of a given franchise, than the level of franchise fees (e.g. initial and on-going fees). That is because a franchise opportunity with higher fees than a direct competitor may still provide a better overall return on investment. A D _ F R J U S S E P “Important _ 1 2 . p d factors f P arelated g e 1to the 1 4business / 0 8 / that 1 2 , might contribute to this seeming mismatch include
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a more compelling product (such as a burger) that attracts more customers, better margins (through better purchasing / pricing power), more efficient operating processes, and lower relative total investment requirements (outside of the upfront initial franchise premium). “Related to the franchise system are important factors like the quality of franchise recruitment, franchisee manuals and training, start-up and on-going field support, management systems and franchisor leadership. “So rather than focusing on the size of the franchise fees, some of the first questions I would want answered include the following: • The total investment made by existing franchisees in the system • The total returns generated in relation to the total investments made • Whether existing franchisees, knowing what they now know, would make the same investment, retrospectively, and • Whether existing franchisees intend to remain and grow within the franchise system over the long-term fees are a factor, but not the most impor9 : “Sure 4 1 the AM tant factor.” F
How to... | Search for a franchisor
THE RIGHT
FRANCHISOR OR THE RIGHT
BUSINESS?
How can you best research the franchisor and their business opportunity? Mike Padden, Franchise Systems Group, has some advice.
All images: Thinkstock 94| FRANCHISING NOV/DEC 2013
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Search for a franchisor | How to...
A
fter over 30 years working in the franchising sector, I have often been asked by prospective franchisees “How do I know if this is the right franchise for me?” It is hard to answer this question satisfactorily as so much depends on the prospective franchisees individual motivation and aspirations. People’s abilities and attitudes change over time as indeed do franchise systems. Both can grow and evolve in response to changes in management style, changing tastes and consumers attitudes. There are ways in which a potential franchisee can lessen the possible negative outcomes. The most obvious resource to start your research is a company’s website. Many companies’ websites include recent press releases, product data, organisational charts and background on their key staff. If you have difficulty locating a company’s site, try a business directory such as Dun and Bradstreet and Hoover’s Online for company facts and figures and credit ratings. The initial questions prospective franchisees need to ask themselves when selecting a franchise are: • Does this franchise suit my abilities? • Does this franchise give me the proposed financial returns I require? • Does this franchise suit my family situation? • Does this franchise offer challenges to keep me interested longterm? • Does this franchise offer me a “complete business package”? • Does this franchise offer me a satisfactory longterm view?
FRANCHISOR MOTIVATIONS Once the franchisee has selected a franchise they feel may suit, contact with the franchisor begins. This can be where the parties become so enamoured with the potential relationship that reality flies out the window. Despite sophisticated franchisee profiling tools being used in the franchisor’s selection process one or both parties may not be able to help unconsciously “gilding the lily”. If this happens both parties may overlook shortcomings of the other in WWW.FRANCHISE.NET.AU
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How to... | Search for a franchisor
order to move forward with the process. If facts are not checked by both parties and the process not seen through a clinical eye it can, like many marriages, ultimately end up in a messy divorce. The franchisor’s disclosure documentation (mandatory under the Franchising Code of Conduct) does provide potential franchisees with worthwhile information about the intricacies of the franchise system but it is critical that before deciding on investing to get independent professional advice from an accountant, lawyer or franchise consultant. It is well worth the cost, especially when you consider the long term nature of the contract and the financial involvement.
ESTABLISHED FRANCHISOR If you are considering joining an established franchise system, you can obtain information from existing franchisees in the system. It is imperative to seek out and interview in depth as many as possible current franchisees but even more importantly to interview previous owners no longer part of the franchise system you are interested in joining. Questions to ask: • Why did they leave? • Were they successful? • Did the franchisor satisfy their expectations? • Would you buy this franchise again? If practicable, create your own survey of the quality, cost of product or services and the efficiency of the franchise systems staff and compare this with their direct competitors.
NEW AND EMERGING FRANCHISORS Getting in on the ground level with a new or emerging franchisor can be a mixed blessing, on one hand the franchisor may offer you a great deal to get you on board, on the other hand it may be harder to ascertain the viability of the franchise. If you are considering becoming one of the first franchisees in a new franchise system you will rely heavily on the franchisor for your information. Check how the concept has worked for the franchisor. Questions to ask: • What business background do they have? • What is the return on capital? • Do they know the market well? • What marketing will they undertake to help establish your business? • What ongoing support do they offer? • Do they have a franchisee operations manual? Get documented answers and be suspicious if you can’t!
FRANCHISEE SUPPORT The initial and ongoing training and support of a franchisee is crucial for their long term success. The existence of a comprehensive operations manual is critical as the franchisee will need to be capable of replicating how the business operates. For a franchisee to be successful, the franchisor must exert a tight control over the system and the new franchisee must follow the operations manual in the day-to-day operation of the franchised business. Prospective franchisees and their advisors should insist upon examining and critiquing the manuals prior to signing the franchise agreement. If it is the first time the franchisee has been in business for themselves it is important to check what is included in the initial training. Most franchisors have dedicated staff or include the services of an external business coach or mentor in the first months to ensure that franchisees are assisted in maximising their effectiveness, smoothly running their business and organising their priorities. The prospective franchisee must ask what support and training are they going to be given initially and ongoing. Questions to ask: • What initial training will I receive? • How long does the training take? • Where is the training done? • What ongoing support will I get? More and more franchisors are including accounting software packages as part of the initial setup costs. The prospective franchisee needs to know what software they will be using and what training will they receive. Many franchisors train the franchisees in the software at the franchisee’s place of business; this includes
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Search for a franchisor | How to...
how to set up the accounts and ensures that the reporting structure is common throughout the system. This will also give franchisees an understanding of the importance of cash flow. It is important to understand how the franchisor markets the business and whether any of the marketing is to be done by the franchisee. Questions to ask: • What “start up” marketing is done? • Who does the start up marketing? • What ongoing marketing is done? • Who does the ongoing marketing? These questions will need to be answered to be able to make an informed decision as to the suitability of the franchise. The advantage of buying a franchise is that the franchisor has usually spent many years of trial and error in developing the ideal marketing plan. The franchisor should have a very good idea of what works in their particular business and what doesn’t. Be sure to ask them. The franchisor may also include a variety of support services for a franchisee. The cost of these services varies reflected franchise A Dand _ F isRnormally VANJ A N _ 1 3in. the pd f P aservice ge 1 fees charged. Each franchise system is different and
the disclosure document will detail what payments are made to the franchisor both initially and ongoing. Some fees are based on turnover and some fees are a fixed payment. Expect to pay a higher percentage of turnover if the franchisor offers in depth support such as order taking, work scheduling, debt collection, administra-
If facts are not checked by both parties and the process not seen through a clinical eye it can, like many marriages, ultimately end up in a messy divorce tion, etc. Fixed fees are calculated either on a straight cash per week/month basis, or on the cost of a set number of services per week/month. In conclusion, the franchising sector is very diverse, there is a franchise out there to suit most budgets and aspirations. As the market will attest, buying a franchise can be a very rewarding experience. So if you are thinking remember - the more 4 / 1 2 about / 1 2buying , 3 a: franchise 5 5 PM research you do the better the outcome. F
Due to eXtremely high demand, coffee retailing is widely regarded as one of the more attractive franchising options available. With your drive, our system and our collective belief in delivering an eXceptional coffee eXperience, you can eXpect an eXcellent return on investment. Plus you get WR EH \RXU RZQ ERVV DQG ZRUN ÁHXible hours, how eXquisite! We’ll supply you with our eXclusive ‘hit the ground running’ pack including free start up stock, marketing materials and eXpert training. For more info on a Cappuccino Xpress mobile coffee franchise, contact Carrick Robinson on 0421 048 716 or email carrick@capx.com.au and get on the road to success today.
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Handle business failure | How to...
WHAT TO DO
WHEN IT ALL GOES WRONG How to make the best of a business disappointment. By Ilya Furman and Jane Garber
D
espite everyone’s best intentions, thorough due diligence, preparation and hard work, businesses can and do fail. We, as lawyers are trained to be sceptical and to look at the dark side and that is not necessarily a bad thing for our clients. Really, what we offer to our clients (whether before, during, or after the franchise business has ended) is “preparing for the worst” which allows the
ILYA FURMAN Solicitor at Franchise Legal
JANE GARBER Solicitor at Franchise Legal
Take stock of the magnitude of your position. What are your current assets and liabilities? All images: Thinkstock WWW.FRANCHISE.NET.AU
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How to... | Handle business failure
client to focus and work on the “hoping for the best” part of the equation. We recently gave advice to a client investing in a sushi franchise in a shopping centre. The franchisor was applying a lot of pressure on the potential franchisee to start trading even before the documents had been finalised. On balance, we could not recommend our client go ahead with the business. The client listened to our advice and then bought the business anyway. Four weeks later we heard that queues in his new sushi kiosk were never ending and that he was making an absolute killing in sales. The lesson is not to ignore the advice of your lawyer, but to take the advice, weigh it up, and make an informed commercial decision about the risk you are undertaking. No risk – no return. However, if things do go wrong, lawyers can often see light at the end of the tunnel. Here are a few tips to consider if your franchise business is beyond hope:
1. REFER BACK TO YOUR ORIGINAL STRATEGY F R1 1 1 3 _ 1 0 0 _ L e wr a p
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1
If you received good advice before buying the 2 0 1 3 - 1 0 - 2 2 T 1 5 : 1franchise, 5 : 2 2 +your 1 1 lawyer : 0 0 should have explained to you the commitments you are making, to whom,
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for how long, and for how much. If so, you may have made special arrangements with the franchisor about the very predicament you currently find yourself. Now is the time to put into play those arrangements. In the absence of other unforeseen circumstances, you should be able to cut your losses and run.
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2. WHAT EXIT STRATEGY? If you are caught off guard and have not planned for your current state, a good franchise lawyer should be able to assist. First, it is important to take stock of the magnitude of your position. What are your current assets and liabilities? To whom are you committed – franchisor, suppliers, landlord? Your accountant should be able to assist with the numbers.
3. NEGOTIATE YOUR WAY OUT Dale Carnegie said that you can stop worrying and start living if you just imagine the worst case scenario, accept it as if it has already happened, and then work on improving the situation. Ideally, you should be able to negotiate a way out of the commitments you are in – franchise agreement, licence agreement or lease, bank loans, etc. If you are in dispute with your franchisor, negotiation or mediation can be cost and time effective ways to bring about the desired result. In rare instances, you may have to start legal proceedings.
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4. TOO LITTLE TOO LATE If none of the above work, you are losing money, cannot exit the business, and are not able to negotiate a way out, you have to consider the risks associated with insolvent trading. If your accountant cannot see a way to trade out of the position you are in, you may have to consider the options of administration or liquidation.
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Take the advice, weigh it up, and make an informed commercial decision At this stage, a good insolvency practitioner can provide immense benefit by minimising the harm and the effects of insolvency. It is one thing to fail once in business, but quite another to be prevented from further attempts for years to come.
REMEMBER: 1. 2. 3. 4.
Training
Get advice early (but it’s never too late to get advice) Devise an exit strategy before entering Keep on top of your financial commitments Failing to plan is planning to fail! F
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Ilya Furman and Jane Garber are solicitors of Franchise Legal with offices in Melbourne, Sydney, Brisbane and Adelaide WWW.FRANCHISE.NET.AU
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Tax | How to...
5
TAX TIPS
FOR NEW BUSINESS What you need to know to minimise your tax payments. By Tim Kilham
TIM KILHAM Director of Lanyon Partners
W
e all want to pay as little tax as we legitimately can. A little bit of planning and a little bit of forethought can go a long way towards minimising your taxes when you start a new business. The tax planning and forethought should actually start before you buy a business, when you are choosing what business structure to use. Your choice of structure – sole proprietor, trust, company, partnership, or some mixture of these – will have a huge impact on the amount of income tax you pay on the profits of the business each year and on the capital gains tax you pay when the business is sold. This article, however, focuses not on business structure, but on some tips and advice concerning tax when you start operating your new franchise business. Here are five tips to get you started.
1. PAY YOURSELF TAX-EFFECTIVELY Depending on your business structure, it may be tax-effective for you to be remunerated in the form of a salary, drawings, distribution, loan repayment or some other method. It may be effective to split your income with family members. Some of these forms of payment will be far more tax-effective than others. The day you start your new business you should be sitting down with your accountant and working out how you will pay yourself and how you will distribute business profits in a tax effective manner.
2. KEEP PROPER RECORDS
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You will not be able to claim a tax deduction for an expense if you don’t have a proper record of it! You should put in place a proper record-keeping system from day one. To claim an income tax deduction or an input tax credit for GST purposes, there is a requirement that you need to have an invoice for the claim you are making. No record, no claim! It is also important to know that if you incur an expense to earn business income, the expense is tax deductible no matter who pays it. So whether you pay it, a family member pays it, or the business entity pays it, the expense is deductible – provided you have a proper record of the expense. » NOV/DEC 2013 FRANCHISING | 103
Tax | How to...
3. BE SENSIBLE
5. KEEP A LOG BOOK
A lot of people get carried away when they enter into a new business and incur unnecessary expenses – they spend some money to save tax. This rarely makes sense. Similarly, some people spend too much money, for example buying an expensive car, because most of the expenses are tax deductible. The expenses may be tax-deductible, but the highest rate of tax you can pay is about 47 percent. So if you spend an unnecessary dollar to save tax, you will always be at least 53 cents out of pocket after the tax saving.
If you use a vehicle extensively in your business, then you will naturally wish to maximise the tax deductions you claim for vehicle expenses. When you have high business use, your claim will be maximised if you use the log book method – that is, if you keep a log book that records the business use of the vehicle, and then claim that business percentage of your expenses as a deduction.
4. PUT MONEY ASIDE FOR TAX This tip might not save you tax but it might save your business. I have seen businesses fail because they have not put money aside to pay income tax and other taxes. It may well be, depending on your business structure and method of remuneration, that when you go into a new business, you may not pay any tax on the business profit for up to two years after you commence the business. This is because tax returns for business may not have to be lodged until about 11 months after the end of its first financial year - that is, 23 months after the business started. Some businesses therefore find they have an apparent cash surplus (money in the bank) but do not realise they have a significant income tax liability. This is another reason to sit down with your accountant on your first day in business and make sure you know how to calculate the tax liability for the business and when the tax will need to be paid. Once you know this, you can put the necessary cash aside FR 1 1 each 1 3 _month 0 0 0 into _ N aOspecial O - account 1 2 0that 1 3is- 0 used only to pay income tax.
I have seen businesses fail because they have not put money aside to pay income tax and other taxes However, you cannot use the log book method unless you have a log book that complies with the Tax Office requirements. Even if your business use of the vehicle is 100 percent or close to that percentage, your claim will be limited to a deduction of, at most, one third of expenses, and possibly to nil, if you do not have a valid log book. F Tim Kilham is a director of Lanyon Partners Chartered Accountants and heads up the franchising division. Tim has provided advice to, and acted for, many franchisees and franchisors, and is particularly active in advising on the purchase and set up of franchise businesses. 9Contact - 1 7 TTim: 0 9email: : 5 7timk@lanyonpartners.com.au; : 3 8 + 1 0 : 0 0
www.lanyonpartners.com.au
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NOV/DEC 2013 FRANCHISING | 105
Advice LEGIT | LEGALISE MADE EASY
Understanding
your franchise
JOANNA BAIRAMIDIS
agreement
Lawyer, corporate advisory and franchising, Mason Sier Turnbull
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 are signing. The Franchise Agreement is the document that will govern the relationship between you as a franchisee and the franchisor and it is critical that you understand the essential elements of, and your obligations under, the Agreement. 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 franchise 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: a. the franchisorâ&#x20AC;&#x2122;s territory selection policy or process; b. the scope of the territory and whether the franchise business can be operated successfully or profitably within its bounds; c. 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; d. whether the territory can be unilaterally changed by the franchisor; and e. 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. FEES The Agreement will provide for the payment of both one-off and reccurring fees. It is important that you are aware of your financial obligations under the Agreement and the payments you will be expected to make.
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Advice LEGALISE MADE EASY | LEGIT The one-off fees payable under the Agreement can include the following: a. Franchise fee – for the grant of the franchise; b. Training fee – for the initial training provided by the franchisor; c. Renewal fee – payable upon the renewal of the Agreement if there is a renewal option; and d. Transfer or assignment fee – payable by the franchisee upon the sale of the franchise business to a purchaser. The calculation of this fee will vary between systems, and may sometimes be a flat fee or calculated as a percentage of the sale price.
– where the franchisor has established and maintained a marketing fund, contributions are sought 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 franchise business and may be payable monthly or weekly; b. 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; and c. Ongoing training fees – where the franchisor provides ongoing training during the term of the Agreement, these costs will usually be paid
The possible ongoing fees payable under the Agreement include: a. 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 franchise business. You should also note when the payment is due: Fmonthly R 2 8 0or4 weekly. _ Mo b i l e _ H P H . p d f Pa ge ii. Advertising/marketing fund contribution
1
You should also be aware of any option to renew and the conditions of renewal 1 9 / 0 2 / 1 3 ,
2 : 0 2
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by you and could be significant especially if the franchisor is interstate and travel and accommodation is required.
3. TERM The term of the Agreement and renewal conditions will usually be set out in the Agreement. 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 The circumstances in which the Agreement can be terminated will be set out in the Agreement and are also governed by the Code. You must be aware of the situations that could lead to the breach and/or
It is important to truly understand your obligations and rights termination of your Agreement so that you can avoid them or alternatively rectify any issues as soon as they are identified. Under the Code, the franchisor can only immediately terminate the Agreement on the following grounds: a. where the franchisee no longer holds any licence or authority required to carry on the franchised business; b. where the franchisee enters into any form of 108| FRANCHISING NOV/DEC 2013
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insolvency administration, such as voluntary administration, receivership, liquidation or bankruptcy; c. where the franchisee voluntarily abandons the franchised business or the franchise relationship; d. where the franchisee is convicted of a serious offence; e. where the franchisee operates the franchise business in a way that endangers public health or safety; or f. where the franchisee is fraudulent in connection with the operation of the franchise business. In situations where 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. These terms of the Agreement listed above are only some of the standard clauses under an Agreement that you should be aware of. It is important to fully read the Agreement and truly understand your obligations and rights under it. Franchise agreements are usually complex lengthy documents and buying a franchised business is a serious undertaking. It is therefore essential that you obtain both professional financial and legal advice from experts in franchising. F
Opinion sKetCh | TreNds aNd deVeLopMeNTs
Tradition: 2014 and Australian franchising
andrew terrY professor of Business regulation in the University of sydney Business school
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much into this statistic which applies to only one sub-sector of the food service market. Coffee outlets for example are dominated by independents with chains operating only about 2000 of the 13,000 coffee outlets across Australia. But, the development is nevertheless significant. It is, as the BIS Shrapnel Report notes, the first time in Australian history that chains now dominate the landscape in any subsector of the foodservice market.
The growth of franchised business is not surprising The trend to franchised operations is not, at least to this writer, surprising. The BIS Shrapnel report refers to factors of cost and quality as impacting on the ascendancy of chains in the fast food sector but there are other significant factors at play as well which are driving the growth of franchising in other industry sectors. Regulatory compliance issues in some sectors make life increasingly onerous and expensive and time consuming for the independent operator. The rapidly increasing reliance on fast-developing information and communication technology also pose significant challenges to the independent operator. These factors, and higher consumer expectations across all aspects of a business, are driving the growth of franchised business. For businesses beyond the micro level there is an increasing need for back office systems as well as for more sophisticated marketing. When such factors are combined with the traditional underlying advantages of franchising – the provision of proven concepts and systems, the training, the ongoing support, the networking and the economies of scale – the growth of franchised business is not surprising. The trend to franchised business is accelerating and is one that both franchisors and franchisees will welcome. F
Image: Thinkstock
S
amuel Goldwyn’s advice never to make forecasts, especially about the future, should counsel caution in predicting what 2014 holds for Australian franchising. I nevertheless feel confident in suggesting that it’s going to be a very good year despite the regulatory uncertainty that will no doubt continue into the new year as to the fate of the Wein Report recommendations for amendments to the Franchising Code of Conduct. The recommendations, the most prominent of which is for a standalone obligation of good faith, were generally supported by the former government but are currently in no man’s land until the new government decides to accept, reject or modify them. The impressive performance of the Australian franchising sector over the last two decades – in bad as well as in good economic environments – makes a prediction of another good year relatively uncontroversial. Franchising is of course well entrenched as an integral part of the Australian commercial landscape. It has critical mass as a business entry and expansion strategy and its future is secure. Next year will, in my opinion, see a strengthening of its already prominent role in the Australian marketplace. Support for this proposition is found in a recent BIS Shrapnel Report which notes that “fast food chains are on the increase and are now the dominant force in the fast food market for the first time in Australia’s history, which goes against the notion that we are a country that loves its independents”. (News release: www.bis.com.au). The report records that over 500 independent fast food outlets closed during the global financial crisis between 2005 and 2009 while fast food chains have increased by more than five percent annually, and snack food chains by almost 11 percent, over the same period. Given that Australia has been traditionally known for its rugged individualism rather than for its love of chains this is a very significant development. It is perhaps unwise to read too
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With Kwik Kopy you get a tried and tested system that removes the usual start up headaches and helps you establish your business sooner. As part of the Kwik Kopy network, you tap into a highly established and recognised brand, giving you plenty of leverage in the market. What’s more you’ll have an extensive support network all focused on your success.
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Opinion PEOPLE | LEADERSHIP
School’s out! Tips to help you train for success
KARLI FURMAGE CEO of The Franchise Relationships Institute, a research and training organisation that has been helping franchisors and franchisees create profitable partnerships for 24 years
FOUR STEPS TO LEARNING Step 1: Make peace with the past In spite of what happened at school, you are hard wired to learn new knowledge and skills. When franchisors tell you about the training you will experience as a franchisee, don’t think about being in a classroom being taught by teachers. Think about experienced people giving you knowledge, skills and tools relevant to you being successful. You’re on a new journey now. Thank the past and be a different student.
Image: Thinkstock
O
nce upon a time, we all loved learning. As babies, we learned by exploring the world with curiosity and delight, celebrating achievement and having no fear of failing. Unfortunately for many of us, that love of learning was destroyed by our formal schooling. Research by learning scientists shows the way children have traditionally been taught at school doesn’t work very well. We learn best by doing. We learn best when we are in control of what we’re learning and why we’re learning it. On your journey to being a successful franchisee there is much to learn. And the learning never stops. But there are no teachers in the school of franchise investigation, so you will need to navigate the learning landscape yourself. You set the curriculum, you set the timetable and you set the exams. To help you on your journey, here are four steps to being a lean, keen franchisee learning machine.
To become a great franchisee, you must fall back in love with learning ourselves before we try something, getting it right in our head first. To max out your learning, ask yourself “What do I need to learn, why do I need to learn it and how am I going to learn it?” Then find a way that works for you. This brings us to my last tip.
Step 2: Face up to the fact that you don’t – and won’t – know it all It’s impossible to know it all, so relax. All you have to do is find out the things you need to know and master. And then get on with it. Ask questions, get help from experienced people and read relevant material. If you bounce around telling people, “I know, I know, I know” when you don’t, that’s your ego speaking. Perhaps you are not being honest with yourself and are more focused on impressing others than learning what you need to know.
Step 4: Look after your learning You are going to need support from a range of people from the franchisor’s office such as trainers and field managers. They are not teachers, they are guides, coaches and cheerleaders, helping you develop your skills, giving you feedback and assessing your progress. Their job is to help you move smoothly and quickly from uncertainty to habit. Form good relationships with your supporters. Another way to look after your learning is to refresh those skills that have gone rusty and get coaching on skills you are yet to master.
Step 3: Max out your learning We all learn differently. Some watch others perform tasks and look at diagrams and videos; some of us learn best by talking about how to do things and asking for instructions, some by rolling up our sleeves and jumping straight in; some of us learn best by having a quiet conversation with
To become a great franchisee, you must fall back in love with learning. You are now responsible. Take control of what you need to know because there are no more teachers looking over your shoulder and you can’t blame the dog for eating your homework. In the immortal words of Alice Cooper, “No more pencils, no more books, no more teacher’s dirty looks. School’s out for summer. School’s out forever!” F
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Opinion VIEWPOINT | IN MY SECTOR...
What I have learned about franchising
GREG NATHAN Psychologist, managing director of the Franchise Relationships institute, public speaker and author of Profitable Partnerships
PASSIONATE PEOPLE What I have learned since my young friend’s encounter with that angry franchisee, is that the franchising sector is full of passionate people with strong opinions. In the case of franchisees, these people have often invested their life’s savings in the business and generally work long hours under significant emotional pressure to ensure their business is a success. On reflection, this is why I love franchising so much. I love that we deal with real people, often husbands and wives, who genuinely care about what they do and the impact they have on their staff and their local community. I love the honesty, that people speak their minds and don’t play petty politics. And that everyone, franchisees and franchisor staff included, is held accountable for the value they deliver. I have also learned how leadership - particularly by franchisor CEOs - makes all the difference to a company’s culture and performance. For instance, how the behaviour and values of the leader either creates a network full of people with brand passion, or a
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self-serving culture characterised by individualism, mistrust and power struggles.
COLLABORATION AND SUCCESS Through our work with hundreds of companies, it has been particularly fascinating to see how an effective franchisor CEO can quickly create a culture of collaboration and success. These people respect their franchisees and what they have at stake, they tell the truth about what’s going on in the company or the market, even if it is unpalatable, and they make sure their team adds genuine value in how they support their franchisees.
Franchising smashes the myth about business not being personal We have also discovered through our research with thousands of franchisees, that those who nurture positive relationships with their staff, their customers, their family, their suppliers and their franchisor are the ones that achieve the highest levels of success. We call this behaviour “building supporters”, and its power comes from the realisation that no-one succeeds on their own in life, especially in the interdependent world of franchising. I feel lucky to have stumbled onto and into the franchising sector those many years ago, and am grateful to the people who have allowed me into their businesses and their lives. Because, what I have most learned about franchising, and what makes it such a special part of our economy, is the people in this sector genuinely care about what they do. Franchising smashes the myth about business not being personal. It is precisely because it is personal, that gives franchising its power. We all need to remember this. F
Image: Thinkstock
O
ne afternoon, many years ago, when I was still at uni and living in a shared house, one of my housemates came home early from work looking dejected. He had recently got a job as a field manager with a franchise network and had just been kicked out of a franchisee’s business for something he said. This was my first encounter with the nitty gritty of franchising and I remember thinking “Wow, this sounds like a tough job”. Because I was studying psychology I also remember being very curious about what had happened to upset the franchisee so much. Little did I know that 34 years later I would be sitting in a plane writing this article. In fact I am returning from training field managers in some of the USA’s leading franchise companies on how to handle these types of tough situations.
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If you’re tired of working long hours on the tools or in an office for someone else why not build your own successful retail & service business working on pools...with a Swimart Pool & Spa Services franchise. Swimart Pool & Spa Services are the premium operators in the pool & spa industry with more than 25 years industry experience & over 67 stores across Australia & New Zealand. We provide all the needs of pool & spa owners from spare parts & accessories to new filtration equipment & total pool & spa maintenance. As a Swimart franchisee you’ll benefit from our comprehensive training programs, exclusive range of quality products, high consumer brand awareness & successful marketing strategies as well as professional business & technical support from the best in the business. Our franchise system provides the tools for you to build a high turnover & highly profitable lifestyle business in which boredom doesn’t exist! So, if you love the outdoors & have a passion for customer service why not speak to Swimart now & find out how a Swimart Pool & Spa Services franchise could help secure your family’s future.
Call Chris Fitzmaurice on
02 9898 8608 swimartfranchise.com.au Phone
SWI2243
Glossary HELP GUIDE | KEY TERMS
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 site: a brand new site.
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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 franchisorâ&#x20AC;&#x2122;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 franchiseeâ&#x20AC;&#x2122;s guide to operating the franchise business. The franchisor may produce several manuals for different areas of the business, and should regularly update the information. 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.
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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.
Checklist TO DO LIST | HELP GUIDE
20 things to check before you invest Before you purchase your franchise you need to tick off all the must-do items. Check the following: 1. Are you confident in the franchisor
11. What are the franchisee and franchisor obligations?
2. Have you seen a disclosure document?
12. What training is available and who pays for it?
3. Have you evaluated the financial returns?
13. Who owns the intellectual property and what is licensed to the franchisee?
4. Do you know all the expenses franchisees are required to pay?
14. What marketing will the franchisor implement?
5. Have you worked out your operating costs?
15. Who pays for the marketing?
6. Do you know the term of the agreement?
16. What is the dispute resolution process?
7. Is the business operating from fixed or mobile premises?
17. Do you know what it is like to be a franchisee?
8. Are you working within a territory? If so, is the area exclusive?
18. Can you assign the franchised business?
9. Are you restricted in your product purchase?
19. How can the franchisor or franchisee terminate the Franchise Agreement?
10. Are you required to reach a minimum performance level?
20. What restrictions are there on the franchisee and guarantor operating a similar business?
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[with thanks to Mason Sier Turnbull]
A-Z listings Searching for a particular franchise? Use this showcase of franchise systems to find out some key details about the business opportunities available, all in alphabetical order for easy referencing
To be part of the A-Z listings: Contact David Strong: E: david.strong@cirrusmedia.com.au P: 02 8484 0905 M: 0411 366 656
Phone: 0404 824 085 Contact: Andrew Wilcox Email: Andrew@5dogs.com.au Website: www.5dogs.com.au
Phone: +61 439 222 422 (AUS) +64 21 917 148 (NZ) Contact: Glenn Dobson Email: glenn.dobson@tadda.com.au Website: www.tadda.com.au
Start up costs from: $150 - 250K
Start up costs from: $125,000
PROFILE: The Fast Food Revolution! 5 Dogs are offering an exciting business opportunity for motivated and food loving individuals with all the training, tools, marketing and support necessary to run a successful franchise. 5 Dogs uses local and Australian made products. Our 5 Dogs gourmet hotdogs are full of flavour, incorporating fresh ingredients and great quality meat. There are vegan options available as well as the gluten and dairy intolerant being catered for. With this high quality product and our brand culture, 5 Dogs has hit cult status as we see with our regulars, interstate regulars and international regulars. With low running costs, a 5 Dogs franchise can operate in small or large areas. No experience necessary. All we require is a love of food, joyous customer service and passion for Hot Dogs!
PROFILE: The Australian Drug Detection Agency (ADDA) is rapidly establishing itself as the largest and most dominant provider of workplace drug detection services in Australia & New Zealand, with a fast growing list of major corporate clients. With workplace drug screening becoming a necessity for most businesses for safety, legal and productivity reasons, the opportunities are endless to win contracts with Local, State and National businesses. You will also benefit from State Office support and large-scale clients that need services in your area. ADDA wants highly motivated and business oriented individuals to join the team to share in the success of this proven business model. If you are seeking a next generation business opportunity with huge potential then contact us now to find out more.
Phone: 1300 287 669 Fax: 1300 795 287 Contact: Steve Wren Email: steve@ats.com.au Website: www.appliancetaggingservices.com.au
Phone: 08 9306 5588 Fax: 08 9306 5522 Contact: Lloyd Gaunt Email: lloyd@aussieoutdoor.com.au Website: www.aussieoutdoor.com.au
Start up costs from: $47,000 + GST
Start up costs from: $220,000 - $240,000
PROFILE: Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started?
PROFILE: Established in 2004, Aussie Outdoor has become the biggest and the best outdoor blind franchise with 14 outlets and a goal of 20 by 2015.
ATS are Australia-wide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its 39 franchisees grow profitable and successful businesses.
Offering exclusive patented products to the market Aussie Outdoor franchiseeâ&#x20AC;&#x2122;s and team members pride themselves on providing quality products and services with honesty and integrity at all times.
No prior electrical experience is required - just a passion for safety and a commitment to growing your business. With low entry fees and minimal franchisee administration, an ATS franchise may just be the opportunity for you.
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Becoming an Aussie Outdoor franchisee is enjoyable and financially rewarding. No experience is necessary as full training and ongoing support is provided. Your business will be fully systemised making it easy for you and others to operate. Aussie Outdoor is not just a franchise it is a lifestyle
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A-Z listings ONLINE DIRECTORY
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Phone: 03 8878 1111 Fax: 03 8878 1145 Contact: Neville Bruns Email: neville.bruns@automotivebrands.com.au Website: www.autobarn.com.au
Phone: 0417 077 633 Contact: Michael Payne Email: michael.payne@dunkinbrands.com Website: www.baskinrobbins.com.au Start up costs from: $190,000
Start up costs from: $350,000 - $450,000 + stock PROFILE: Established in 1985, Autobarn has a network of 104 stores Nationwide which makes it the largest independently owned automotive parts and accessories retailer in Australia. The business has an enviable track record of success and growth with some stores in the group having traded for over 20 years. The longevity of the business, combined with consistent, high quality marketing activity, means that the brand has become iconic in the Australian market and enjoys enormous consumer goodwill and recognition. Autobarn represents the retail consumer brand within the Automotive Brands Group (ABG), which also includes the trade based Autopro and Carparts groups. Combined ABG represents over 250 outlets, giving ABG considerable buying power, the ability to have ABG exclusive products, substantial management resources and significant marketing and advertising strength.
PROFILE: Baskin-Robbins® is the world’s largest chain of ice cream specialty stores, renowned for high quality, premium ice cream, specialty frozen desserts and beverages with nearly 7,000 restaurants around the globe. Baskin-Robbins® is an exciting “Family” brand featuring the most unique, innovative and indulgent products available. Baskin-Robbins® is looking for outstanding, motivated individuals seeking a fun and rewarding business; as we believe that people are the most important ingredient in making an enterprise successful. We have flexible fit-out concepts – to suit Iconic Locations through to existing businesses wanting to create a second income stream with a truly international brand name.
Phone: 07 3373 1760 Fax: 07 3373 1770 Contact: Delena Farmer Email: admin@batteryworld.com.au Website: www.batteryworld.com.au/franchising
Phone: 1300 131 664 Fax: 02 9450 2844 Contact: Diana Wilson - Franchise Manager Email: dwilson@bebrite.com.au Website: www.bebrite.com.au
Start up costs from: $250,000 + GST
Start up costs from: $17,150
PROFILE: Australia’s leading battery retailer Battery World is offering qualified individuals a unique retail opportunity with a great growth potential. Battery World stores carry batteries for everything from mobile phones and laptops to vehicles and boats. With 80 stores throughout Australia we are the largest and most comprehensive retail franchise network focused on the battery category. If you want to invest your time and money in a powerful franchise, Battery World offers a unique opportunity to top into an every-growing market. A select number of franchises are currently available throughout Australia for motivated individuals with strong communication skills and a background in customer service.
PROFILE: Bebrite presents an opportunity to enter into a Residential/Commercial and Carpet cleaning franchise at a low entry. With 17 years experience in the business, Bebrite provides the perfect business model for success. A Bebrite franchise suits couples or single operators with unique advantages, including generous guaranteed incomes, flat monthly fees (no royalty), no territory restrictions, high level of demand for service, prominent Internet presence and an opportunity for continued growth. Bebrite operates in NSW, ACT and QLD. Expanding nationally into WA and VIC. By providing a high quality service, Bebrite franchisees enjoy a loyal and stable customer base. Three (3) unique websites, continued support, sophisticated marketing and efficient business systems assist franchisees to achieve success.
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A-Z listings Phone: 1800 634 227 / 0418 500 721 Contact: Andrew Email: andrew@briantracytraining.com.au Website: www.briantracytraining.com.au
Phone: +65 6222 6863/+61 0 4 11 265441 Fax: +65 6222 7069 Contact: Dennis Delaney Email: anz.franchise@brotzeit.co Website: www.brotzeit.co
Start up costs from: $49950-$79950 + GST
Start up costs from: US$650,000 PROFILE: As a Licencee, you are welcomed to an exclusive team of business advisors based around the world. You will be well trained in the area of business development, corporate training and coaching. You are then able to grow a substantial and profitable business through purchasing programs from the Brian Tracy International suite on a wholesale basis. The key areas of focus are professional development, sales and leadership development, and these programs are provided on a fee for service or government funded basis. They are delivered primarily in fast-moving interactive workshops or in coaching sessions. Brian Tracy International is recognised as one of the world’s premier training and development companies.
PROFILE: Brotzeit® is a typical Bavarian expression - “Brot” being German for bread and “Zeit” for time, referring to a cosy meal complemented by fresh beer. Brotzeit® is the world’s leading franchised German concept casual dining restaurant, serving authentic German cuisine and premium quality beer imported directly from Munich, in a chic and modern environment. With an expanding regional presence in Singapore, Malaysia, Vietnam, Philippines, Thailand, Hong Kong and China, the company is looking for interested area franchise partners for Australia.
Phone: 02 9451 3260 OR 1300 CAFE2U Fax: 02 9451 2105 Contact: John Stanton Email: jstanton@cafe2u.com Website: www.cafe2u.com
Phone: 0421 048 716 Fax: 08 6162 8820 Contact: Carrick Robinson – Managing Director Email: carrick@capx.com.au Website: www.cappuccinoxpress.com.au
Start up costs from: $129,990 + GST
Start up costs from: $100,0000 + GST
PROFILE: Australian owned Cafe2U is the world’s largest mobile coffee company with over 140 franchises in Australia and 200 worldwide. The business is rapidly expanding due to a simple and proven business model. Cafe2U now includes the unique “Acceleration Package”, designed to create success and profitability sooner. This includes a four week training programme, a personal franchisee coach, revenue guarantee and an initial marketing campaign. Offering a full time events coordinator and strong marketing support, Cafe2U offers a great opportunity for new business owners who are looking to make the most of the added lifestyle benefits. Contact Cafe2U now should you wish to make the change.
PROFILE: Take advantage of the booming coffee market! Founded in 2004, Cappuccino Xpress is now a 43 Franchisee operation with mobile cafes in Western Australia, Queensland and Victoria, all supported by exceptional State Franchisors providing extensive business, product and marketing support. We are passionate about bringing our unique, freshly made coffee experience to workplaces, functions and the events market. Our proven system is delivering impressive business benefits to our Franchisees and our brand profile continues to attract interest. We have ambitious plans to expand our Australian footprint and to take our expertise overseas. Call us today.
Phone: 1300 PLEASE (1300 753 273) Email: enquiries@couriersplease.com.au Website: www.couriersplease.com.au
Phone: +61 459 360 867 / +61 422 077 006 Contact: Remo Stander / Melinda Heron Email: franchising@cravefroyo.com.au / melinda@cravefroyo.com.au Website: www.cravefroyo.com.au/franchising
Start up costs from: $25,000 PROFILE: CouriersPlease is Australia’s leading express parcel delivery business offering nationwide service. With over 550 CouriersPlease franchises nationally using our industry leading EzyTechnology™, allowing the CouriersPlease Team to provide unmatched quality service for small parcel distribution requirements, to our 40,000 customers sending over 10 million parcels per annum. Business continues to grow due to CouriersPlease’ customer valued operations service combined with our successful business model of “working for yourself, but not by yourself”. CouriersPlease franchise opportunities are available nationwide, so if you have the DRIVE attitude contact your local CouriersPlease branch today!
Start up costs from: Below $249,000 PROFILE: The Frozen Yogurt boom is well underway and CRAVE frozen yogurt is one of the fastest growing franchises of it’s kind in the world - Don’t miss this opportunity! • Complete Turn-Key Investment, saving you Time and Money • The Lowest Franchise Fee on the market (6%) • Compact, Intelligent Design that can fit anywhere. • Brilliant colour scheme and branding that people remember - What Do You Crave? • Exclusive rights to the Elvaria 7-Handle Machine, so you get 3 times the flavours your competitors have in the same sized footprint. • Self-Serve Business model which means lower overheads and simpler operations. • Premium, Healthy, Creamy Italian Frozen Yogurt. Nobody can match Crave. Find out why Crave has grown from 0 to 10 sites in under 10wks.
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A-Z listings Phone: 07 3633 3393 Fax: 07 3633 3399 Contact: Jenna Rugers Email: jenna.rugers@dominos.com.au Website: www.dominos.com.au/franchising
Phone: 02 9969 2154 Fax: 02 9960 1041 Contact: Gary Blyton Email: info@extremepita.com.au Website: www.extremepita.com.au
Start up costs from: $100,000
Start up costs from: $250,000 - $350,000
PROFILE: At Domino’s we see ourselves as the Pizza Experts, and focus all our energy and passion into making and delivering the hottest, freshest and tastiest pizzas.
PROFILE: So you want to be a Purveyor of the Pita? Well, you’ve come to the right place. You can rest easy knowing this is a business with staying power.
As a New Franchisee, you are about to embark on a journey to become a Pizza Professional.
It’s all about the bread! We roll it, we eat it, we earn it. And we’re successful at it. We’ve got over 225 locations throughout Canada and the U.S. with continuous strong growth.
We are the market leaders in most neighbourhoods and we need to continue to rise to the occasion of exceeding our customers expectations. If you think you’ve got what it takes, contact us today for more details about becoming part our family.
Why Extreme Pita? A lot of restaurants out there offer items that are fried within an inch of their lives. Extreme Pita has the right concept at the right time, because more and more consumers are looking for a fresh, fast, healthy alternative. Extreme Pita offers a fantastic range of healthy great tasting food for busy, active individuals and families who want to live life to the fullest.
Phone: 1300 FASTWAY Fax: 02 9264 4966 Website: fastway.com.au
Phone: 0421603342 Contact: David Green Email: david@fivehighvending.com.au Website: www.fivehighvending.com.au
Start up costs from: $25,000
Start up costs from: $30,000 - $100,000 PROFILE: Run your own rewarding business and take control of your future as a Fastway Courier Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • Guaranteed income package* • Low start up costs • No weekend work • Ongoing business support & training • Exclusive territories • Perpetual franchise agreement with no ongoing fees
PROFILE: FiveHigh Vending will source locations for you, provide access to the best buying group in the Industry, and provide you with ongoing technical and business support. With 18 years experience in the Industry FiveHigh Vending Systems is Australia’s largest vending company and works closely with approximately 600 full and part time operators across Australia.
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.
Source products from major suppliers such as Schweppes, Coke, Smiths, Snack Brands, Nippys, Frucor and a host of others or tap into our overseas buying group to get the best profit margins in the industry.
*Conditions apply
Phone:02 028845 88450100 0100 Phone: Fax:02 028845 88450199 0199 Fax: Contact:Karen KarenPollard Pollard Contact: Email:franchise@gelatissimo.com.au franchise@gelatissimo.com.au Email: Website:www.gelatissimo.com.au www.gelatissimo.com.au Website:
Level Melbourne, Victoria Level 5, 8, 530 330 Collins Collins Street, St Melbourne Victoria, 3000, 3000, Australia. Australia Phone: 1300 FRANCHISE Fax: 03 8640 0688 Contact: Kevin Bugeja Email: kevin@franchiseselection.com.au Website: www.franchiseselection.com.au
PROFILE: Franchise Selection is the leading franchisee recruitment company in Australia that assists potential franchisees through the interview and selection process. We offer potential franchisees a wide selection of franchises covering all industries including retail, food, automotive, telecommunications, construction and even service franchises. We pride ourselves in being leaders in our industry and our approach is not to sell franchises but to educate and assist buyers in finding the right business opportunity for them and to assist franchisors in selecting the very best franchisees.
Start Startup upcosts costsfrom: from:$350,000 $350,000 PROFILE: PROFILE: Australia’s looking afor outstanding franchisees. Australia’sleading largest gelato franchise is presents unique concept; with over 20 years Gelatissimo, Australia’sisleading gelato franchise is expanding itspassion strong of product development, customer satisfaction and a brand that embodies style Prior food experience not necessary however system franchisees must have brand and is looking for outstanding and sophistication. Our retailing pointfranchise of difference is makingforfulldelivering flavouredquality gelato for the system and brand, leadership skills, andpartners. enthusiasm fresh in-store daily usinggelato a customer system that isfresh simple to run. has an enviable products through excellent service. Our multi award winning is made in store byGelatissimo dedicated Franchisee performance record, with an average store and turnover of $779,000* and recipes. comparative Gelato Artisans, using the finest ingredients authentic Italian family Multi award winning Gelatissimo provides full training and on-going support from store sales growth has averaged a positive 8.29%* over the last two years. dedicated operational, and development them to to Gelatissimo franchiseesmarketing have the benefit of a systemteams that isenabling simple and easy As part of its commitment Gelatissimo charges flat royalty fee produce artisan gelato freshtoinfranchisees, store using a simple proven asystem. run, supported by full training, ongoing support fromand professional operational and instead of teams, a percentage of sales, full training, ongoing support from its marketing extensive brandprovides building activities, product development and operationswith and local marketing team, brand building and local store marketing. assistance store marketing. *Sales figures based on the last 12 months turnover as at April 2012 inc GST. Increases based on comparative moving annual turnover for the last 48 months.
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A-Z listings Phone: 08 9209 2669 Fax: 08 9209 3308 Contact: Justin Everley Email: justin@greenplanetgrass.com.au Website: www.gpgfranchise.com.au
Phone: 07 5515 0119 Fax: 07 5500 3716 Contact: Geoff Biddle Email: mail@groutpro.com.au Website: www.groutpro.com.au
Start up costs from: $275,000 - $320,000
Start up costs from: $29,950 + GST & vehicle
PROFILE: Green Planet Grass is a specialist synthetic grass company servicing residential and commercial customers throughout Australia.
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.
The company has grown its customer base to more than 4000 in Western Australia alone. Timing is now perfect to offer this well-established and proven business to people seeking a unique and growing product offer.
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.
With full training provided, a Green Planet Grass franchise is the perfect opportunity for those looking to build a business, capitalise on an established brand and be a part of servicing a rapidly increasing number of customers.
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: (AUS) 02 8522 1408 Fax: (AUS) 02 9527 5144 Contact: Luke Manning Email: bdm@justcuts.com Website: www.justcuts.com
Phone:1800 247 432 Fax: 02 9544 448 Contact: Gary Cutcliffe Website: www.koolerice.com.au Start up costs from: $39,990 + GST
Start up costs from: $160,000 to $240,000 ProFilE: Don’t just buy yourself a Job! Discover how you can easily run a “Genuine Business System”. Did You Know? Most of our Just Cuts™ Franchise Owners are not Hairdressers. Plus, the average Franchise Owner goes on to own multiple stores. Why? Because proven systems, support and training means your hairdressers become the technicians and easily run the business for you. At Just Cuts™ Franchise Owners have been free to grow to own multiple sites. Just Cuts™ do over 66,000 Style Cuts™ cuts a week! Just Cuts™ operate on a no appointment, no request system, quality Styles Cuts™ cut at an affordable price. Contact us today to find out how. Join the largest Hairdressing Franchise in the Southern Hemisphere.
PROFILE: Kooler Ice provides the machines under a simple franchise agreement, which provides a sophisticated level of support that enables our operators to earn passive income without being a slave to their business. The Kooler Ice franchise system is designed to be fair for all parties, and to provide both the Company and franchisees with the systems, support and standards required to protect their investment and our common brand. The agreement places obligations and responsibilities on both parties, as you’d expect, however we believe a strong and compliant system will help deliver our franchisees the support they need from us, and will protect their investment by maintaining our high standards of machine appearance, serviceability and functionality right across the country.
Phone: 1800 251 680 Fax: 02 9967 5511 Contact: John Post Email: franchise@kwikkopy.com.au Website: www.kwikkopy.com.au/franchise
Phone: 02 9687 7700 Fax: 02 9687 7706 Contact: Peri Celik Email: peri@lewrap.com Website: www.lewrap.com
Start up costs from: $210,000
Start up costs from: $200,000
PROFILE: A Kwik Kopy franchise is your path to a successful new business. And what’s more, you don’t require any print experience to take on a Centre. Kwik Kopy is a B2B print and design provider, focusing on the small to medium business market. A highly established and recognised brand, Kwik Kopy has been operating in Australia for over 25 years and has an extensive network of Centres in regional and metropolitan locations Australia wide. The benefits of becoming a Kwik Kopy franchisee include: • Award winning franchise model • Strong brand and ongoing marketing solutions • Regular working hours Mon-Fri • Extensive training and on-site assistance
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PROFILE: LeWrap is Australia’s new and upcoming healthy fast food alternative. LeWrap was established in 2005 and has undergone great success by promoting healthy, fresh, grilled and tasty foods. LeWrap has grown to 12 stores around Sydney. The franchise is currently expanding its operations interstate to Melbourne and Brisbane and also has projections to move the brand internationally. LeWrap is a unique food offering, capturing the shift toward healthy eating and a healthy lifestyle for all customers. We are looking for passionate, motivated and energetic personnel that share our vision and want to become part of a proven and successful franchise system leading the move toward healthy fast food. If you believe it is time for Australia to embrace healthy, tasty and fresh food, we’d love to hear from you.
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A-Z listings Phone: AU - 1800 333 270 NZ - 0800 333 270 Fax: 03 9824 7154 Contact: James Archer Email: jarcher@lma.biz Website: www.lma.biz
Phone: 02 9875 6005 Contact: National Franchising Manager Email: franchising@au.mcd.com Website: http://mcdonalds.com.au/franchiseopportunities Start up costs from: $700,000 + in equity
Start up costs from: $73,940 PROFILE: LMA has been creating exceptional results through people for over 40 years. Founded by our Executive Chairman Grant Sexton in 1972, and now led by our CEO Andrew Henderson, LMA is an Australian-owned business that works with organisations throughout Australia and New Zealand to improve their bottom line by:
PROFILE: In a little over 40 years, McDonald’s has grown from one restaurant to over 900 restaurants across the country. From its first restaurant in 1971 through to today, the ‘golden arches’ has managed to maintain its position as one of the most popular quick service restaurants in Australia.
• Developing the leadership and management skills of their key people • Improving the performance and productivity of their people.
As a McDonald’s franchisee you’re stepping into one of the world’s most successful brands and all that comes with it.
As a Licensee in the LMA network, you will have access to market-leading products, world-class resources and support, superior quality facilitators, course coaches and venues and everything needed to kick-start your learning and development business.
Think world-class systems and training, the globally acclaimed franchise model, and the kind of stability and returns that will deliver the success you’ve worked hard to enjoy.
Limited opportunities are available across Australia and New Zealand.
Phone: 1300 366 372 Fax: 03 9565 9665 Contact: Tim Long National Fleet Sales Manager Email: tim.long@daimler.com Website: www.mercedes-benz.com.au/vanfleet
Phone: 0413 805 728 Contact: Matthew Shaw Email: franchise@mixandgofroyo.com.au Website: www.frozenyogurtfranchises.com.au Start up costs from: $124,000-$350,000
PROFILE: Want a fit fleet? Your drivers and your bottom line will be in safe hands with a Fit Fleet of Mercedes-Benz Vans. Our award winning vans are recognised for their segment leading safety, quality and reliability. So when combined with lean whole of life considerations and preferential pricing, a fleet of Mercedes-Benz Vans is not only more affordable than you may expect it can help your business perform at its peak day in, day out. Contact us today to organise a tailored fleet proposal for your franchise.
PROFILE: With the frozen yogurt industry continuing to feed the obsession of self-serve froyo to the world and showing no sign of nearing its freezing point, Mix&Go Froyo are now offering frozen yogurt franchise opportunities across Australia. One of Australia’s first frozen yogurt stores, Mix&Go FroYo, welcomes the idea of more restaurants to share their innovative variety of flavours and toppings and to continue providing delicious yet diet-friendly treats to their consumers. Low start-up costs, easy to manage and good margins!
Phone: 1300 737 917 / 0403 840 996 Contact: Steve Bianchini Email: steve@mondodirect.com.au Website: www.mondodirect.com.au
Phone: +61 3 8540 0200 Fax: +61 3 8540 0202 Contact: John Sier Email: john.sier@mst.com.au Website: www.mst.com.au
PROFILE: The Destination for the Best Hidden Franchise Talent. Mondo Direct is a specialist in providing executive search and headhunt services to franchise companies. We support franchise companies in achieving success through their people building robust talent teams. Our enduring relationships with the top passive talent in the APAC region, means you will gain a competitive advantage.
PROFILE: MST Lawyers is widely recognised as one of Australia’s leading franchising law firms having more than 30 years of experience in advising franchisors, franchisees and suppliers to the franchising sector, Australia wide, on all aspects of franchising, including advising franchisors on Franchising Code of Conduct compliance, Competition and Consumer Act compliance, leasing, drafting of franchise agreements and disclosure documents and franchise disputes. We advise franchisees in respect of sales and purchases of franchise businesses, including reviewing and advising on franchise documents and leases. Our international affiliations allow us to stay in touch with global franchising trends and developments. Our dedicated team prides itself on providing cost effective practical and current advice to its franchise clients.
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A-Z listings Phone: 1800 NANOTEK (1800 626 683) Contact: Franchise Recruitment Manager Website: www.nanotekcarcleaning.com.au
Phone: (08) 9201 3400 Fax: (08) 9201 3444 Contact: Brad Dixon Email: info@mynfib.com.au Website: http://mynfib.com.au
Start up costs from: $45,000 + Car Lease PROFILE: Imagine the freedom and lifestyle of having your own mobile business and working from home – being able to clean a car anywhere and offer your clients the highest quality service at their home or office… This is the business reality of a Nanotek franchisee. Nanotek is the global leader in mobile car cleaning and detailing. Using exclusive polymer nanotechnology the Nanotek process encapsulates, lifts and removes dirt without scratching - it also leaves a protective coating which lasts up to 6 weeks. Because the process doesn’t require water, the Nanotek service can be performed anywhere – home, office, on the street, even on the showroom floor!. So whether you are after the independence and lifestyle of operating your own business, or the passive income that a fleet of nano-mobiles can provide, with Nanotek you can tailor your business to suit your goals.
PROFILE: National Franchise Insurance Brokers has been created to meet the Australian demand for a dedicated online provider of insurance cover for franchisees, franchisors and franchised businesses. Our service is fully automated, compliant and provides you with full documentation. Plus, we are underwritten by one of world’s longest established insurance organisations. Put simply, our service is the fastest, most affordable way to get the most appropriate level of cover you need to protect your business.
Phone: 03 8851 4200 Fax: 03 8851 427 Contact: Michael Standley Email: franchise@noodlebox.com.au Website: noodlebox.com.au/franchise
Phone: 1300 961 588 Contact: Luxottica Franchising Team Email: franchising@luxottica.com.au Website: luxottica.com.au/franchising Start up costs from: $250,000
Start up costs from: $250,000 - $280,000 PROFILE: An Australian success story. Noodle Box’s goal is to be the first choice noodle-based restaurant concept in every market in which they operate. Franchise partner relationships are paramount and are built on integrity, respect and trust. The Noodle Box Franchise Support Centre is focused on ongoing Franchise Partner profitability and success.
PROFILE: Your competitive advantage starts with us. When you partner with OPSM, you’ll be investing in a highly respected and market-leading franchise brand. You’ll benefit from award winning systems, support, training and business development programs; and be part of an innovative, professional network. If you’re looking to secure your financial future then call us for an obligation-free, confidential chat.
With a competitive entry level investment and new restaurant design concept, the Noodle Box brand represents excellent value for money. Noodle Box is healthy, fresh and fast and made right in front of guests by friendly, welltrained team members. With a relaxed atmosphere – it doesn’t get tastier than that!
Phone: 1888 883 1004 Fax: 1800 871 8602 Contact: Paul Lewis Email: Plewis@orangeleafyogurt.com Website: www.orangeleafyogurt.com.au
Phone: 1300 667 067 Fax: 1300 667 101 Contact: Clinton Capuzzi Email: sales@ordermate.com.au Website: www.ordermate.com.au
Start up costs from: $250,000 - $400,000 PROFILE: Orange Leaf Frozen Yogurt is a self-serve, choose-your-own-toppings frozen dessert franchise with more than 300 locations in the U.S. and Australia. Ranked one of the fastest growing limited service chains by Technomic and as one of the top three new franchises for 2013 by Entrepreneur, Orange Leaf’s profranchisee culture encourages owners to become a part of their communities and provides them with the necessary ingredients for success. Orange Leaf offers a multitude of delicious, traditional and original flavors, including no-sugar-added, gluten-free and dairy-free alternatives. Customized with a generous selection of do-it-yourself toppings, Orange Leaf provides an innocent indulgence, self-served in a stimulating atmosphere.
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PROFILE: With over 10 years of industry experience – OrderMate is designed and developed in Australia by hospitality people, for hospitality people. We service and support all areas of the Hospitality industry - especially Franchises. So why should you use OrderMate as your Franchise POS solution? • Powerful backend centralised reporting that can drive your business to success and manage your KPI’s from Head Office – Business Central and on Store Level. • Integrations with the latest in reservations, online ordering, accounting and multisite customer loyalty. • Our nationwide network enables us to seamlessly; rollout, service and support large scale operations. OrderMate – the future in Point of Sale. Don’t get left behind.
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A-Z listings Phone: 07 5532 7071 Fax: 07 5532 5351 Contact: Graeme Diamond Email: franchising@outbackjacks.com.au Website: www.outbackjacks.com.au
Phone: 1300 699 955 Contact: Ken Patterson Email: info@ozzykleen.com.au Website: www.ozzykleen.com.au Start up costs from: $5,800 + GST
Start up costs from: $300,000 PROFILE: Outback Jacks Bar & Grill is an exciting fully licensed, family style steakhouse which has been franchising since 2006. We have perfected the art of providing an amazing experience specialising in the growing family dining market and have now grown to 28 strong franchise restaurants around the country. We can provide full turnkey restaurants along with comprehensive training and support so no experience is required just a passion for great food and customer service. We have new sites available in all states and territories so if you have ever dreamed of owning your own bar & grill give us a call today.
PROFILE: At Ozzy Kleen we believe that going into your own business should be as easy as possible with a minimum outlay. Why should you pay $20,000 - $40,000 for a franchise, when we can get you started from $5,800 + GST and this also includes all backup and support, training, equipment, manuals as well as uniforms, business cards, invoice books etc. We even help with your initial customers. NOW THAT IS A GOOD DEAL!!! So before you make a decision to go into that expensive franchise give us a call. We have opportunities in Home and Office Cleaning as well as Lawn and Garden. We are also looking for Regional Masters these territories start from $16,000 + GST. So what are you waiting for? Give us a call and take control of your new business. Areas available include Sydney, Brisbane, Melbourne, Gold Coast & Newcastle.
Phone: 07 3456 4255 Fax: 07 3456 4299 Contact: Phil Hill Email: phil.hill@tic.com.au Website: propertyclub.com.au
Phone: 02 9930 3023 Contact: Brett Jeffrey Email: au-pizzahut.franchising@yum.com Website: www.pizzahut.com.au/franchise Start up costs from: $250,000-$300,000
Start up costs from: $300,000
PROFILE: Pizza Hut is the leading global pizza franchise, with over 12,000 restaurants throughout the world and is part of the quick service restaurant giant, Yum! Restaurants International. Franchising with Pizza Hut gives you the financial control of owning your own business combined with the support of a historically successful global company. With exciting new store opportunities available throughout Melbourne/Regional Victoria, Perth/Western Australia, Regional New South Wales, and South East/ Regional Queensland there has never been a better time to join.
PROFILE: The Property Club is a division of The Investors Club. Since its establishment in 1994, The Property Club has assisted in the sale of over 17,000 properties throughout Australia and New Zealand and are looking to expand further in these markets. Property Club prides itself on providing investment opportunities and deals and a one-stop-shop to access property related services for its members. The company currently has 18 Franchises and 300 Property Mentors, as well as a head office with 40 staff specialising in all areas of Property Investment.
Phone: 1300 4 REDCAT (1300 4 733 228) Fax: 03 9696 1553 Email: info@redcat.com.au Website: www.redcat.com.au
Phone: 1300 4 RED ROCK (1300 473 376) Contact: Phil Colburn Email: admin@redrocknoodlebar.com.au Website: www.redrocknoodlebar.com.au Start up costs from: $180,000
PROFILE: Red Rock Noodle Bar is one of the healthiest food franchises around in this growing fast food industry. We deliver this by offering an exciting range of Asian 97% Fat Free tastes that appeal to all. Fresh Ingredients handpicked by our customers and â&#x20AC;&#x153;wokkedâ&#x20AC;? up right in front of your eyes. Currently 12 stores all over Brisbane as we expand this healthy option throughout Queensland and Northern NSW.
PROFILE: RedCat provides end-to-end, point of sale, accounting and business management solutions that gives users total control of their business. RedCat supplies integrated software and hardware solutions that can manage sales, staff, stock, payroll, through to accounts, GST, customer loyalty, and web based multi-site reporting to provide a complete business management system. Franchised groups can benefit from their flexible centralised management capability that permits multiple levels of control and reporting. RedCat are also able to provide online ordering systems. Customers order and pay through a uniquely branded app, the order is then automatically integrated into the point of sale system.
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A-Z listings Phone: 02 9977 7373 Contact: Jimmy Sagiotis Email: jimmy@saltyrooster.com.au Website: www.saltyrooster.com.au
Phone: 1800 049 743 Fax: 1800 884 431 Contact: James Scurr Email: jscurr@silverchef.com.au Website: www.silverchef.com.au
Start up costs from: $300,000-$400,000
PROFILE: Salty Rooster has been producing the finest chicken burgers on the Northern Beaches of Sydney since 2005. We are now proud to offer franchises throughout Australia and the world. Seeking motivated people to join our team, Salty Rooster is a growing company within the dynamic fast food industry. The Salty Rooster concept is simple. By cultivating the finest flavours and textures from the closest to the most distant of cultures, our fine burger creations will not be found anywhere else. From feverish Brazil to cool Jamaica and from rampaging Thailand and vibrant Mexico, there’s something to tempt every palate.
PROFILE: Silver Chef has been helping businesses to fund their equipment needs for over two decades. Silver Chef’s Rent. Try. Buy.® Solution offers a simple 12 month term so that you have the flexibility to: • Purchase the equipment and enjoy a 75% rental rebate • Return equipment if you don’t need it anymore • Keep renting and we will continue to reduce the purchase price • Upgrade if you decide your franchise has outgrown the original equipment And if you are part of an accredited franchise, you will enjoy even greater benefits such as reduced rental bonds, rental discounts and pre-approval for all franchisees. Silver Chef Limited is a public company listed on the Australian Stock Exchange.
Phone: 1800 762 766 Fax: 02 9837 9199 Contact: Nick Hudson Email: nicholas.hudson@snapon.com Website: www.snapontools.com.au
Phone: 1300 810 233 Fax: 02 9887 4252 Contact: Franchise Development Team Email: fran.enq@snap.com.au Website: www.snap.com.au/franchiserecruitment-home.html
Start up costs from: $50,000 with financing packages available
Start up costs from: $200,000 PROFILE: Snap is the most successful print, design and website franchise network for small and medium-sized enterprises (SMEs) in the Southern Hemisphere, with 145 Centres in Australia and a further 30 Centres in New Zealand, Ireland and China. Snap was founded in 1899 and is 100% Australian-owned. We’ve adapted, evolved and changed which is why we are as successful today as we were 100 years ago. We believe that’s because the foundations of the Snap brand are timeless - we always deliver outstanding service to our clients. We offer top quality print, design and website products and services and keep upto-date with the very latest trends in printing and online marketing for SMEs.
PROFILE: Snap-on Tools Australia 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 who has established a network of solid franchise operations across the globe. Now after more than 20 years in the Australian market it continues to solidly perform and provide robust financial results for its network of 166 franchisees. Extensive training and ongoing support is provided – no previous mechanical experience required. Snap-on offers an exclusive finance package to assist new franchisees.
Phone: 1300 WASHER / 1300 927 437 Contact: Sales Manager Website: www.speedqueen.com.au/invest
Phone: 0427 401 169 Fax: 03 9888 6327 Contact: Alistair Browne, Snooze Franchise Network Development Manager Email: alistairb@snooze.com.au Website: www.snooze.com.au Start up costs from: $450,000 PROFILE: As one of Australia’s longest-running, most successful and innovative franchised business, Snooze’s experience in the bedding industry is second to none. Boasting more than 70 stores across Australia and a goal to reach 90 stores by 2014, Snooze is looking for ambitious and passionate people to join the business’ exciting future. Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including: • Vendor finance assistance • NAB & ANZ accreditation • Sales and product training • Business management support • A national marketing program • IT services To take the first step towards a prosperous future, contact Snooze Franchise Network Development Manager, Alistair Browne, to find out what Snooze could mean for you.
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Start up costs from: $10,000 - $100,000 PROFILE: Speed Queen offers vended laundry investment opportunities to entrepreneurs all across Australia. With a profound understanding of the laundry industry, we guide investors through every step of the process to help them achieve maximum returns. Through the industry’s largest network of knowledgeable laundry experts, we offer assistance for every aspect of your laundry business, including location selection, pro-forma analysis, store design, market support and factory backed leasing. As part of Alliance Laundry Systems, the world’s largest commercial laundry manufacturer, Speed Queen has the experience, customized capabilities and resources to help you reach your investment goals.
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A-Z listings sparky a3.pdf 1 7/04/2011 12:22:20 PM
Phone: Toll Free Australia - 1800 630 355 New Zealand - 0800 444 618 Fax: 07 3852 4081 Contact: Franchise Administrator Email: ssa@subway.com Website: www.subway.com
Phone: NSW/ACT - 02 9250 5000 VIC/TAS - 03 9287 9555 WA/SA - 08 9430 2877 QLD/NT - 07 3877 7333 Email: franchdev@caltex.com.au Website: www.caltex.com.au
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Start up costs from: Varies by site PROFILE: • Caltex Star Mart is Australia’s number 1 convenience retailer with locations in every State and Territory across the country. • The Star Mart convenience network consists of over 630 stores nationally. • Franchisees operate approximately 85% of Caltex’s retail network. Our world class business model, merchandising and field support has set the benchmark for convenience retailing, making Caltex the number one convenience retailer throughout Australia. A select amount of Caltex Star Mart opportunities now exist for high calibre franchisees with a passion for retail and a burning desire to be successful. To discover more about Caltex’s exciting franchise opportunity, please visit www.caltex.com.au and click on ‘Franchising at Caltex’.
POOL & SPA SE RVICES
Australia’s pool & spa specialists
PROFILE: Subway® is the world’s largest restaurant chain with more locations than any other chain. We offer business owners simple operations, ongoing field support and a defined marketing structure, along with providing customers with a variety of freshly made menu options. For over 47 years, the SUBWAY® brand has been helping individuals build their own independently operated business – run by people just like you! From step one, throughout the entire franchise process, the Subway® system provides training and guidance that aids in the operation of each restaurant. Join the winning team with the #1 Franchise! Register your interest today.
Phone: 02 02 9898 9898 8602 8666 Phone: Fax: 02 02 98983089 98983089 Fax: Contact: Chris Chris Fitzmaurice Fitzmaurice Contact: Email: chris.fitzmaurice@swimart.com.au chris.fitzmaurice@swimart.com.au Email: Website: www.swimart.com.au www.swimart.com.au Website:
Phone: (03) 8699 2555 Fax: (03 8699 2550 Contact: TeleChoice Reception Email: franchise@telechoice.com.au Website: www.telechoice.com.au
Start up up costs costs from: from: $150,000 $150,000 -- $300,000 $220,000 Start
Start up costs from: $200,000
PROFILE: First established in 1983, Swimart has grown to be the largest chain of specialty Pool and Spa shops in both Australia and New Zealand. With over over 65 67 retail retail stores stores across and more than 250 service vehicles across both owners countries With both countries we specialise in providing Swimart is a very successful retail andand service business that with everything they need to maintain enjoy their pool or delivers spa. high turnover and profit margins to franchisees. We specialise in providing pool and spa owners Swimart is a fullythey owned of and Waterco publicly listed Australian with everything needsubsidiary to maintain enjoyLtd, theira pool or spa. company operations in over eight countriesLtd, around the globe! Swimart iswith a fully owned subsidiary of Waterco a publicly listed Australian Waterco Australia’s largest manufacturer and distributor ofglobe! water filtration companyiswith operations in over eight countries around the products with an enviable reputation for innovation and quality.
PROFILE: PROFILE: TeleChoice is Australia’s largest independent mobile phone and telecommunications There has never been a better to become boss. services franchise, operating for time 18 years in more your than own 140 locations. Using the most reputable service providers in Australia, franchisees are in theinbusiness of TeleChoice is a great choice for you if TeleChoice you are looking for a business a saving money for their customers. For example, TeleChoice uses parts of the Telstra dynamic industry. 3G Network to offer the most competitive mobile phone rates that any franchisee in With over 150 stores nationally and a massive support base, you’ll always feel part Australia can offer; and offering Electricity and Gas from Energy Australia delights our of a great team. customers even more. To yourmake own business take control of money. your life,Our callindustry TeleChoice today. Youstart too can money byand saving people their is very dynamic and is only suitable for smart energetic investors. If you have the passion for business and the drive to succeed; we would like you to be part of our team. Call the National Franchise Manager on (03) 8699 2555, or visit www.telechoice. com.au/franchise * conditions
Phone: 02 9723 1011 Fax: 02 9727 6771 Contact: Nick Avgerinos Email: franchise@cheesecake.com.au Website: www.cheesecake.com.au
the chocolate room
Start up costs from: $150,000 - $700,000 PROFILE: The Cheesecake Shop opened in 1991 and has developed into an Australian favourite with a massive network of almost 200 stores across Australasia. Our award winning system makes for one of the simplest businesses to operate. Our systems guide you on how many cakes you need to produce each week and how much of each ingredient to order. Our cakes are baked from easy to follow recipes. You don’t need to be a chef or a baker, its so easy! If you love to bake cakes for the kids then here is your chance to turn your passion into profit.
Phone: 03 5229 6716 Fax: 03 5229 6718 Contact: Jim Richardson Email: info@thechocolateroom.com.au Website: www.thechocolateroom.com.au Start up costs from: $200,000 - $250,000
PROFILE: The chocolate room was established in Australia in 2006, seven years on we have over 50 stores worldwide - Australia, India, UK, and soon to be opening in China, U.A.E., Malaysia, Singapore, Hong Kong, Sri Lanka and Pakistan. Our menu caters for the chocolate lover and boasts 23 flavours of beautiful Italian hot chocolate drinks, a wide range of chocolates and chocolate gifts, refreshing ice cold frappes, waffles with ice cream and strawberries and many other chocolate inspired dishes - we serve spectacular coffee too. Combine all this with site selection assistance, comprehensive modern fit out, an excellent training regime and unparralleled support, the chocolate room has it all.
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A-Z listings Phone: 0499 399 355 Contact: Bruce Miskin Email: bruce@theconcretecutter.com.au Website: www.theconcretecutter.com.au
Phone: 03 9008 5945 Fax: 03 9876 6612 Contact: Richard Email: richard@thefranchiseshop.com.au Website: thefranchiseshop.com.au
Start up costs from: $45,000 + GST + vehicle PROFILE: Established in Melbourne in 2001, The Concrete Cutter has nine long running franchises. We now seek to expand in Melbourne and duplicate the Melbourne success interstate. We invite enquiry from smart ‘hands on people’ in good health who are easily understood on the telephone. Most established franchisees regularly take over $2,500 p.w. The price includes equipment, sign writting, uniforms, stationery, training, and on-going support. You will need to provide a white vehicle such as a one-tonner, van or small truck. A second-hand vehicle is O.K. Please ring for information pack.
PROFILE: The Franchise Shop is the leading franchise consultancy offering both franchise development & recruitment services to the franchising industry throughout Australia and New Zealand. Principals, Grant and Richard Garraway have more than 30 year’s experience between them in developing businesses into franchises, conducting feasibility studies, recruiting franchise owners, territory planning and site finding. At The Franchise Shop our aim is to grow your business. Are you thinking of developing your business? A free initial consultation will provide you with an honest, comprehensive and accurate assessment. Looking to buy a franchise? We offer an advice service and range of documents which are designed to help you make an informed decision.
Phone: 0414 217 019 Contact: Rob Watkin Email: sales@topsnap.com Website: www.topsnap.com
Phone: +61 2 9922 5522 / +61 433 102 005 Contact: Brian Pretorius Email: brianp@launchpadfce.com.au Website: www.launchpadfce.com.au
Start up costs from: $39,950 + GST
PROFILE: The Launch Pad is the only Conference planning and events specialist company to work exclusively in the Franchising sector. We know that you, the Franchisor, have a big commitment to your Franchisees and hosting Conferences and Events make an unhealthy dent into your bottom line. Allow our experienced Franchise Conferencing and Events Team to show you how to make your next event sizzle while we help you to balance these costs. Call us for a introductory and no obligation chat.
PROFILE: Interested in real estate? Passionate or keen to learn about photography? Then a Top Snap property photography franchise could be for you! We are currently looking for positive, enthusiastic, customer-focused individuals to build their own professional photography business, with the support of an established franchise system behind them. As a leading and fast-growing property photography franchise, we have photographers located across the country servicing the real estate industry’s growing demands for professional property photography and marketing tools. In recognition of this outstanding growth, Top Snap was recognised as one of Australia’s top 50 fastest growing SMEs in both the 2012 and 2011 SmartCompany awards.
Phone: 1800 220 039 Fax: 07 5522 0051 Contact: Peter Darnell Email: sales@touchupguys.com.au Website: http://www.touchupguys.com.au Start up costs from: $85,250 + approved vehicle PROFILE: With over 130 van operations across Australia and New Zealand and over 20 years experience, the Touch Up Guys are the market leader in the mobile automotive paint and bumper repair industry. This Aussie-made mobile automotive franchise carries out repairs to bumpers, plastics, paintwork, vinyl upholstery, alloy wheels and much more. Servicing commercial, corporate and consumer markets, our franchisees are equipped with a state of the art mobile workshop, providing a convenient and cost effective alternative to traditional bodyshops. If you are looking for proven business model with low entry cost and low overheads and would enjoy working outdoors with your hands, then Touch Up Guys may well be the perfect career move for you. No prior experience is necessary as full technical and business skills training are provided.
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Phone: 1300 139 913 Fax: 1300 133 338 Contact: Sales Support Email: info@trusonic.com.au Website: www.trusonic.com.au PROFILE: Trusonic is a full service music provider and audio marketing specialist. Trusonic’s digital music library contains more than 3 million tracks in all styles including Top 40, modern jazz, instrumentals and more. Their proprietary media player (the MBOX) receives music updates daily via the internet. With Trusonic you can: • Generate extra revenue and create branding with custom ads and IDs • Eliminate PPCA fees with their directly licensed music library • Play music and messages through your phone system • Control the music (and ads) at all sites from the one online interface To get Trusonic music working for you, contact them today.
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A-Z listings Phone: 03 9413 1400 / 0429 811 811 Fax: 03 9413 1401 Contact: Adrian Gallace Email: adrian.gallace@unitedpetroleum.com.au Website: www.unitedpetroleum.com.au/ franchising/welcome
Phone: 13 26 13 Fax: 08 8220 4588 Email: info@viphomeservices.com Website: www.vipfranchisesales.com.au Start up costs from: $25,000
Start up costs from: $400,000 upwards PROFILE: V.I.P. was the first company to start franchising in home services in 1979. Today V.I.P. has over 1100 franchisees across Australia and New Zealand.
PROFILE: Australian-owned company that has become one of the largest independent fuel retailers with over 290 convenience stores throughout Australia. United Petroleum continues to invest heavily in its stores and systems which has earned the trust of consumers and respect of major competitors.
V.I.P. has franchise opportunities available in: • Garden Maintenance and Lawn Mowing • Home Cleaning • Commercial Cleaning
United franchisees enjoy ongoing support, guaranteed minimum Fuel Commissions, merchandising support, a national promotional program, five week induction program and on-going training.
V.I.P. offer franchisees comprehensive training, a solid support system, exclusive territories and an established customer base along with the chance to be their own boss and choose the hours they want to work.
United is a proud member of the Franchise Council of Australia (FCA) and was awarded Canstar winner for 3 years in a row – Most Satisfied Customers (Service Stations).
In 2009 & 2010 V.I.P. was declared the Best Franchise System in Australia under $50,000 by the Financial Review Smart Investor magazine.
Phone: 03 9612 7297 Fax: 03 9629 4035 Contact: Robert Toth Email: robert.toth@wisemah.com.au Website: www.wisewouldmahony.com.au
Start up costs from: $69,900 + 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.
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PROFILE: Wisewould Mahony is a leading commercial law firm with a 150 year history in Victoria with clients in Australia and worldwide. 25 Years of Industry Knowledge Member Franchise Council of Australia (FCA) International Franchise Lawyers Association (IFLA) Franchise Association of New Zealand (FANZ) Accredited Business Law Employment Specialists Fixed Fee Services to Franchisors & Franchisees based on scope of services Services provided: • Legal and consulting advice to Franchisors & Franchisees • Code compliance requirements • Dispute resolution – mediation – Solutions & Strategies • Sale/Purchase of Franchise Systems • Master Franchising • F Employment R 1 6 8 8Law _ &F Workplace a c e bRelations o o k _Specialist A- Z . p d f Pa g Call or email for a complimentary brochure for Franchisors & Franchisees
Phone: 0414 669 101 Fax: 02 9771 9570 Contact: Stephen Spitz Email: stephen.spitz@xpressodelight.com.au Website: www.xpressodelight.com.au
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5 Dogs 1800 On Hold Alliance Laundry Appliance Tagging Services Aussie Outdoor Autobarn Baskin-Robbins
57
Groutpro
63*
Red Rock Noodle Bar
104
Just Cuts
92*
Salty Rooster
31, 67
Kooler Ice
43
30*
Kwik Kopy
111*
12
Launchpad
24
Leadership Management
37*
48 101
Lewrap
100*
Battery World
47
Luxottica
15*
Brian Tracy
45
Mason Sier Turnbull
35*
Brotzeit
11*
McDonald’s
Cafe2U
38, 39*
Mercedes Benz
61
4*
Mix and Go Froyo
76
Cappuccino Express
97
Mondo Direct
14
107, 117, 130*
Nanotek
77*
Couriers Please
2*
National Franchise Insurance Brokers
113*
Crave
83
Noodle Box
105
Dominos
33
Orange Leaf
109
Extreme Pita
23
Outback Jacks Ozzy Kleen
Fastway Couriers Five High Vend Franchise Selection Gelatissimo
131* 81 86, 87* 25*
6*
Silver Chef
98*
Snap On Tools
9*
Snap
102*
Snooze
69*
Specialised Events
90*
Subway
21*
Swimart
115*
64,65
Caltex
Cirrus Media
49*
Pizza Hut
The Australian Drug Detection Agency
132
The Cheesecake Shop
80*
The Chocolate Room
91
The Concrete Cutter
34 50,51*
The Touch Up Guys
17*
19
Top Snap
27*
89
United Petroleum
75*
VIP Australia
85*
Wisewould Mahony
54*
Xpresso Delight
29*
42
Redcat
70, 71*
The Franchise Shop
13*
Property Club
Telechoice
93*
Franchising ADVERTISING ENQUIRIES • Magazine • A-Z listings • The Profiler
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David Strong National Sales & Marketing Manager P: 02 8484 0905 M: 0411 366 656 E: david.strong@cirrusmedia.com.au Facebook.com/franchisingau Twitter.com/franchisingau
130| FRANCHISING NOV/DEC 2013
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Run your own rewarding business Fastway Couriers has a number of exciting franchise opportunities available • Guaranteed income package*
• Exclusive territories
• Low start up costs
• No weekend work
• Perpetual Franchise Agreement
• Ongoing business support & training
• Recognised brand
• Easy to operate - no experience required
• Award winning system for over 30 years
• Enjoy the freedom of working for yourself
To find out more contact us: p. w.
1300 FASTWAY fastway.com.au
*For a defined period. Conditions apply. Fastway Couriers (Australia) ABN 38 057 389 769. Fastway Couriers is a franchised courier network and its businesses are independently owned.
The Australian Drug Detection Agency
ADDA
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The Australian Drug Detection Agency wants highly motivated and independent people to join the team, as either Master or Regional Franchisees. The Australian Drug Detection Agency wants highly motivated and independent people to join
The ADDA iseither a proven business model will provide excellent financial Thethe Australian Detection wants highlythat motivated and independent people to join rewards for those team, asDrug Master orAgency Regional Franchisees. the team, either Master or Regional who areas prepared to work hardFranchisees. and fit the criteria. The ADDA is a proven business model that will provide excellent financial rewards for those
Thewho ADDA isprepared a proven model willcriteria. provide excellent for those This isare a huge opportunity for individuals who havefinancial strongrewards business-oriented skills, including tobusiness work hard andthat fit the who are prepared to work hard and fit the criteria. those who have served or are currently in law enforcement; the emergency services; or the This is a huge opportunity for business-orientated individuals who have served, or are currently armed forces, to get at the ground level and grow their own enterprise. Thisinislaw a huge opportunity for business-orientated individuals who have or are currently enforcement, thein emergency services or the armed forces, to getserved, in at the ground level in law enforcement, the emergency services or the armed forces, to get in at the ground level
and grow their own enterprise. Are you their ready join our experienced group and secure a lucrative future? and grow owntoenterprise. Areguess you ready to join ourare! experienced group and secure a lucrative future? Our is Yes, you Are you ready to join our experienced group and secure a lucrative future? Our guess is Yes,selling you are!fast Franchises Our guess is Yes, you are!
• sold in QLD and NSW • sMasters Franchises selling fast Sub franchises still available in all States. selling fast •s Franchises s Masters sold in QLD/NSW/VIC s Masters sold in QLD/NSW/VIC
Email: glenn.dobson@tadda.com.au
Email: kirk.hardy@tadda.com.au Email: kirk.hardy@tadda.com.au Website: www.tadda.com.au Website: www.tadda.com.au Website: www.tadda.com.au