Franchising nov dec 2014

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FRANCHISING

Franchising YOUR ESSENTIAL GUIDE TO BUYING A FRANCHISE | WWW.FRANCHISEBUSINESS.COM.AU NOV/DEC 2014 VOL.27/NO.6

Grab your

CHOPSTICKS NOV/DEC 2014

Asian food franchises spice up the sector

AUS $6.95|NZ $7.95

PR I N T P O S T A PPR OV E D 10 0 0 0 8121

WWW.FRANCHISEBUSINESS.COM.AU

10 TIPS FOR SECURING A SMALL BUSINESS LOAN

NICHE OR NOVELTY

THE STATE OF THE INDUSTRY

p.16

p.56

How to tell if the market has legs

The latest report on the $144 billion franchising sector

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CONTENTS

COV E R STORY

60

12 UNRAVELLING FRANCHISING 48 PRIVATE EQUITY, Which is the ideal sector for you?

14 THE STATE OF FRANCHISING The latest survey on the $144bn industry

14

ACQUISITIONS AND THE FRANCHISEE

What are the advantages and disadvantages of equity investment?

54

YOUR FRANCHISOR’S MARKETING STRATEGY Marketing expert Paola Tanner considers how a franchise network can stay ahead

56 SIX WAYS TO MINIMISE FRANCHISE RISK

Lower your helpful tips

22 NICHE OR NOVELTY

REGULARS

WELCOME INSIGHTS OPINION

32

LEGALESE THE SKETCH LEADERSHIP

CHECKLIST ADVERTISERS INDEX

70 THE RISE OF THE VITAMIN

76 DELIVERING A NET PROFIT

A banker's guide to preparing for a loan application

WHAT TO DO WHEN

these

28

10 TIPS FOR SECURING APPETITE FOR ASIAN A32SMALL BUSINESS LOAN

GLOSSARY

with

Health conscious consumers are driving this market segment

The Victorian Small Businesses Commissioner explains how to prevent disputes arising

RESOURCES

levels

How to tell if the market has legs

TIPS FOR A SUCCESSFUL FRANCHISE RELATIONSHIP

5 6 130 132 136 138 140 142 144 145 158

risk

36

FRANCHISEES AND SMART BUSINESS SELECTION Seven ways to evaluate a franchise system and its network

42 SELL, SELL, SELL

When is the best time to sell on your franchise?

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Digital is driving the courier and logistics business

84 THE PAMPERED POOCH

What are the trends in petcare retail and services?

88 RE-IMAGINING TRAVEL

A new model for online discount travel business BYOJet

88

110 A MULTI-UNIT FRANCHISEE Cafe2U franchisee Louis Tu tells his story

122 100 AND BEYOND

Two cafe and fitness brands reach the 100 unit milestone

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OVER 500 FRANCHISE CONVENIENCE STORES AND GROWING! You may not be aware that Caltex Australia operates one of the largest convenience retail networks across the country, with both company and franchised stores operating predominantly under the ‘Caltex Star Mart’ brand.

Caltex is a well-recognised and reputable brand with outstanding systems and tools to enable operational success. New franchisees entering the business will be provided structured training and support on all key operational elements to set them up for success in their venture.

The franchise community is strong and supportive with organised franchise councils and regular communication meetings, to ensure franchisees contribute to the brand success.

Caltex has also held international conferences every 2 years with significant franchisee attendance, in locations such as China, Mauritius, Vegas and the most recent event was held in Dubai.

This conference rewards high performers and is a highly anticipated event on any franchisees calendar.

To find out more about our Franchise Opportunities, visit www.caltex.com.au and click on ‘Franchising at Caltex’.

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( WELCOME )

T

here’s an air of excitement as we go to press with this edition.

We’ve got a particular reason to be thrilled: Franchising now has a new home online: www.franchisebusiness.com.au. We’ve pulled together the total franchise buyer’s package: the best of Franchising magazine’s expert and independent editorial housed in a knowledge centre for easy navigation, and an in-depth directory with comprehensive information about brands, opportunities and service providers that will help you on the journey to find the right franchise for you.

But there’s more good news in the franchising world.

Every two years a survey is released on the state of the industry. The latest report indicates that franchising is faring better than other businesses, and the success of the sector is something to celebrate. So in this edition we bring you the key findings of the Franchising Australia 2014 report, produced by the Asia-Pacific Centre for Franchising Excellence at Griffith University.

Here’s a sneak peek: the total industry (including fuel and vehicle sales) now brings in $144 billion of revenue, with 1160 business format franchise systems operating 6000 franchise units. For the full story, turn to page 14.

That’s not to say that investing in a franchise is a foolproof step to success. As any business person knows there are challenges every day in building and sustaining a business. But you can certainly miminise the risks, as Professor Lorelle Frazer points out in our feature on page 56.

On page 28, Geoff Browne, the Victorian

PUBLISHER Raffael Fernandes P: 02 8484 0754 raffael.fernandes@cirrusmedia.com.au EDITOR Sarah Stowe P: 02 8484 0900 sarah.stowe@cirrusmedia.com.au JOURNALIST Brea Carter P: 02 8484 0661 brea.carter@cirrusmedia.com.au ART DIRECTOR Justine Dunn P: 02 8484 0757 designer2@cirrusmedia.com.au

SARAH STOWE EDITOR

Small Business Commissioner, shares his thoughts on creating and maintaining a successful franchise relationship.

Selecting the right franchise is important, but let’s be honest, so is getting access to funds. On page 32, Westpac’s Small Business general manager Julie Rynski offers some advice on how to approach the loan application process.

Whether your franchise of choice is a niche, family owed operation or part of a conglomerate of brands, marketing is important – so what will your franchisor offer as a marketing strategy? Turn to page 54 for ways a franchise network can stay ahead.

We’ve pulled together the total franchise buyer’s package: Franchising now has a new home online

And finally, we're excited because good things come in threes: the third piece of good news is that the mandatory regulation, the Franchising Code of Conduct, has just been revised and will take effect from 1 January 2015. We’ll update you on the relevant details in time, but if you want to get the latest on this Code in the meantime…. go online to www.franchisebusiness.com.au!

NATIONAL SALES AND MARKETING MANAGER David Strong P: 02 8484 0905 david.strong@cirrusmedia.com.au CLIENT SUCCESS MANAGER My Do P: 02 8484 0927 my.do@cirrusmedia.com.au PRODUCTION CO-ORDINATOR Tracy Engle P: 02 8484 0707 tracy.engle@cirrusmedia.com.au For subscription enquiries call customer service: 1300 360 126 ISSN: 1321-408X

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Average Net Distribution Period ending Mar ‘14 - 7,142

NOV/DEC 2014 | 5 | WWW.FRANCHISEBUSINESS.COM.AU

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ALL FRANCHISING MATERIAL IS COPYRIGHT. REPRODUCTION IN WHOLE OR IN PART IS NOT ALLOWED WITHOUT WRITTEN PERMISSION FROM THE EDITOR. OPINIONS EXPRESSED IN FRANCHISING ARE NOT NECESSARILY THOSE OF FRANCHISING OR CIRRUS MEDIA. © COPYRIGHT CIRRUS MEDIA, 2014

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INSIGHTS

HOW YOU CHOOSE YOUR FRANCHISE Our latest poll reveals profit and budgeting are prominent in your choice of franchise.

You haven’t yet decided to buy a franchise – 26% You will invest in what makes the best profit – 25% Your budget is the driver – 21% You know the brand you want – 16.2% You've chosen the sector – 11.97%

WHAT’S THE REACH OF YOUR FRANCHISE OF CHOICE? The Asia Pacific Centre for Franchising Excellence's latest report shows 30% of Aussie franchises operate overseas; 59% have expansion rights.

Which countries play in?

do

New Zealand = 74% Singapore = 24% US = 24% UK = 21% China/Hong Kong = 20% Middle East = 18% Malaysia = 15% Europe = 15% Find out more on p14.

they

2014: The year Retail Food Group snapped up three big brands Gold Coast-based business, Retail Food Group (RFG) is the umbrella company of franchised brands including Brumby’s Bakery, Crust Gourmet Pizza, Michel’s Patisserie and Donut King, and in recent months it announced the planned acquisition of another three franchises – Gloria Jean’s, La Porchetta and Cafe2U. In October it was revealed that RFG was in the process of acquiring the Gloria Jean’s Coffees’ business for $163.5m. The purchase includes the global intellectual property rights for Gloria Jean’s and US brand It’s A Grind, operational management of Australian and US regions, the franchisor of 40 licences international territories, and coffee roasting facilities.

Earlier this year GJC was set for acquisition by Singapore based firm but the deal collapsed.

The RFG transaction December completion.

is

set

for

a

In September the company announced its entry into Share Purchase Agreements (SPAs) to acquire the 236 outlet Cafe2U mobile coffee franchise and 70 outlet La Porchetta casual dining franchised system.

CEO Tony Alford noted that, “these transactions represent the culmination of significant and wide-ranging acquisitive opportunity investigation and due diligence activity undertaken over the course of the past 18 months, and demonstrate RFG’s commitment to supplementing organic growth via acquisition of quality complementary brand systems capable of generating enhanced earnings and increased scale.”

The Cafe2U acquisition includes the overseas businesses, and it complements the company’s November 2012 acquisition of The Coffee Guy system.

La Porchetta’s acquisition represents a further strategic expansion by RFG into the casual dining segment; Pizza Capers and Crust Gourmet Pizza joined RFG in 2012.

NOV/DEC 2014 | 6 | WWW.FRANCHISEBUSINESS.COM.AU

LA PORCHETTA IS SET TO JOIN RFG

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INSIGHTS

WEST COAST FOCUS A number of brands with a strong presence along the country’s east coast are setting their sights on Western Australia.

If you need help, pick up the phone!

That’s what the franchisor is there for Stratton franchisee, James De Ruiter

7-Eleven has recently opened its first outlet in the Perth suburb of Fremantle, and it is headed up by franchisee Bilaal Khan and his brother-in-law Kashif Asheem.

NO SURPRISES IN THE CODE

HAVE YOU SEEN OUR NEW WEBSITE?

Solid ground and sure-footedness will mark the new Franchising Code of Conduct says the Hon Bruce Billson, Minister for Small Business, who attended the National Franchise Convention in October.

We’ve recently unveiled our new digital home, franchisebusiness.com.au, and we would love you to take a look. Merging Franchising magazine's market leading content with the official directory of the FCA in one website gives you the best of both worlds. It enables us to better serve your needs as you navigate the challenges of understanding the category and engaging with a franchise network.

“The good faith burden rests on both parties,” the Minister said in an interview with Franchising.

The new site helps you find your way through all FRANCHISE B Uof S I Nunderstanding ESS FRANCHISE the stages and buying a franchise, BUSINESS provides advice from experts within the sector, and makes it easy to source franchise opportunities..

Visit: www.franchisebusiness.com.au

FRANCHISE BUSINESS

The petrol and convenience store chain plans to open another four WA outlets before Christmas, and a total of 75 new sites there over the next five years.

Gourmet pizza chain, Pizza Capers opted for a regional site for its first WA outlet – opening for business in South Headland at the end of September.

Outlets in Albany and Kalgoorlie are also set to open before the end of the year.

FRANCHISE BUSINESS

WWW.YOUTUBE.COM/FRANCHISEAU

The final version of the revised Code was unveiled on 3 November after it was formally ratified by the Governor General, Sir Peter Cosgrove.

While Baker’s Delight already operates in the state; it is looking to open 12 new sites across the metro, southwest, northwest and Goldfields regions.

The new regulation will take effect on January 1 2015.

The bakery business’s decision was prompted by recent figures that highlight a significant portion of Western Australians are seeking a career change.

To see the interview in full, as well as all our on-screen interviews and advice, visit www.franchisebusiness.com.au NOV/DEC 2014 | 8 | WWW.FRANCHISEBUSINESS.COM.AU

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INSIGHTS

MCDONALD’S OFFERS CUSTOMERS INSIGHT INTO ITS FUTURE McDonald’s has recently opened a purpose-built Customer Learning Lab restaurant in Sydney’s Castle Hill.

The restaurant includes a customisable burger menu known as ‘Create Your Taste,’ where customers use digital kiosks to build their own burgers, and it offers table service.

Both initiatives are scheduled to be rolled out across the fast

food chain’s network over the next six to nine months.

Macca’s restaurants of the future are what Aussies ordered.”

The chain also plans to roll out the following initiatives over the next three years:

Three more Customer Learning Labs are set to open this year, and 10 are set to open their doors in 2015.

✱ Self-service digital kiosks ✱ Mobile ordering app ✱ Digital menu boards ✱ Home delivery ✱ McCafé barista made coffee in drive-thru McDonald’s Australia CEO, Andrew Gregory said: “McDonald's is innovating and changing again to meet the needs of our customers.

"What we're really doing here is just what our customers have asked us to do.

"We take customers along the journey with us and get their feedback - we want to make sure

THE WORLD’S TOP 200 FRANCHISES REVEALED US-based publication, Franchise Times released its annual top 200 franchises list in October.

The list measures the performance of franchised companies based on their total worldwide system sales.

Franchise Times recognised international growth as a key factor driving company success – its research revealed the average franchise system operates 36.3 percent of its locations outside of the US, an increase from 34.4 percent in 2012.

In many cases overseas growth counteracted decreasing outlet numbers in the US. The number of international locations operated or franchised by companies on the list increased by 10.3 percent, meanwhile locally the figure was 1.3 percent. In 2013 companies on the list reported $590 billion in sales, a four percent increase on the 2012 figure of $567 billion.

THE TOP 10: 1. McDonald’s 2. 7-Eleven 3. KFC 4. Subway 5. Burger King 6. Hertz 7. Ace Hardware 8. Circle K 9. Pizza Hut 10. Wendy’s

FISH N’ CHIP BUSINESS TO FRANCHISE The Famous Fish Co by Costi business is set to bring fresh seafood to more Australians than ever, with Steve Costi announcing the brand’s foray into franchising.

If you speak to enough people you start to realise what makes a good franchisee Nutrition Station CEO, James McGovern

The business has teamed up with Menzies Partners on the development of its franchise strategy, who have become shareholders in the company.

They have produced a plan for the Fish Co by Costi business, which encompasses everything from franchise recruitment and store design to marketing and financial models.

Menzies Partners director, Jon Sully has a proven track record in franchising, having grown the Michel’s network to over 360 stores throughout Australia.

There are plans to open 250 dine-in/ take-away restaurants, which serve both seafood and salads, across the country.

There are six stores currently in the franchise program and a number of new stores are under development in Sydney, Newcastle, Wollongong, on the NSW Central Coast and in Melbourne.

NOV/DEC 2014 | 10 | WWW.FRANCHISEBUSINESS.COM.AU

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GLOBAL

TREAT

YOURSELF

TO SUCCESS!

BRAND LOCAL OPPORTUNITIES FOR OVER 69 YEARS BASKIN-ROBBINS™ HAS BEEN CREATING IRRESISTIBLE TREATS TO MAKE YOU SMILE AND FEEL GOOD INSIDE AND OUT. WE’VE PERFECTED THE COMBINATION OF DELICIOUS TREATS AND A FUN ATMOSPHERE.

Baskin-Robbins™ is looking for people with drive, creativity and passion. We believe that people are the most important ingredient in a successful business. Ideal key qualities for prospective Franchisees include: • The ability to make people smile • Excited to be a part of a team and the Baskin-Robbins™ system • Ambition to succeed and grow your business • Outstanding guest service focus • Passion for the Baskin-Robbins™ brand We’re confident that once you get to know our product you’ll be in love with Baskin-Robbins™, just like we are.

For further information, please contact Michael Payne on 0417 077 633 or michael@palmoasisventures.com or visit www.baskinrobbins.com.au

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UNRAVELLING franchising

$

Pick a starting thread and explore your options

Home-based

UNDER $100,000

Mobile

Education

Professional business services

IT

Mortgage & finance Vending Find the right franchise Do you see yourself as a people person? Are you desperate to use your technical skills in business? Perhaps you see retailing as your main strength? For a quick and easy way to highlight the type of business that might suit you and meet your needs, choose a starting point in our mindmap and wind your way through the options to a franchise opportunity.

Domestic services

Coffee Healthy eating

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00

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$$

$$$

$100,000 to $400,000

People focus

$400,000 & OVER

Technical focus

Wellbeing

Aged care

Outdoors

Hair & beauty

Building & construction Gyms Print & signage Retail Food

Auto NOV/DEC 2014 | 13 | www.franchisebusiness.com.au

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The

STATE of FRANCHISING 2014

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W

hat does it take to outperform the general business sector? The franchising model has done just that.

And retail is the surprise winner.

Business format franchising contributes $65 billion to the Australian economy and now comprises 1160 systems. That’s a little down on the highpoint in 2012 when there were 1180 systems recorded by Griffith University’s Asia Pacific Centre for Franchising Excellence biannual report.

The slight shrinkage in the sector is good news, the Franchising Australia 2014 report authors suggest.

Australia has been highly franchised (per capita) for some years with an inevitability that some of the smaller, less viable models would disappear. The authors expect to see more contraction among franchisors but this is qualified by stronger internal growth in the individual franchise systems.

The 79,000 units operating in franchise business systems account for almost four percent of all Australian businesses. This figure doesn’t include the estimated 6120 fuel retail and 4598 vehicle retail outlets around the country. When you add the estimated vehicle and fuel sales, the total revenue for the whole franchise sector equates to $144 billion, up significantly from the figure of $131 billion revealed in 2012.

In the last two years the number of franchise units has grown by about 6000 or just over eight percent. The report highlights this is in contrast to the 2.9 percent decrease in Australian businesses reported by the ABS from 2012 to 2013.

Employment is up from 2012 but down from the heights of 2010; most significant is the increase of casual workers across the sector.

Retail has been the surprise performer across the industry. The report indicates retail franchise systems have grown overall more than other franchise models, showing a median of 49 units this year, up from 45 units in 2013.

Perhaps surprisingly new entrants into the franchise sector have come predominantly from retail; it has been the service sector that has seen brands move out of the franchise model or cease operations.

THE FRANCHISORS There are now 1124 franchisors and, good news for franchise buyers, they are increasingly mature and experienced. Respondents have been operating for a median of 21 years and they have been franchising for 14 years.

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“As the sector matures we would expect to observe a decline in the number of franchise systems and for individual franchise networks to expand in size,” the report reads.

THE BIG PICTURE

While nearly 25 percent of survey respondents had begun their business prior to 1980 before turning to the franchise model, there were a handful who had clocked up more than three decades as franchisors.

Just over half of the respondents to the survey have been franchising their operations since 2000; 25 percent began franchising the same year as their start-ups, a further nine percent within 12 months of starting their business.

The great majority of franchisors (67.2%) have been franchising for more than 10 years. A young system is one that has been franchising for between one and five years (13.1% of respondents) while emerging systems span the six to 10 year period (19.7% of respondents).

“Multiple-unit franchising remains a popular and pervasive growth strategy in Australia,” the report reads. Almost three quarters of franchisors (74%) incorporate some form of multi-unit franchising; on average however each network contains only three multipleunit franchisees. The multi-unit model is most prevalent in retail trade, accommodation and food services sectors.

One quarter of franchisors have adopted a master franchise strategy – most of these franchisors had been established for more than 10 years, and most were systems with more than 50 units.

Nearly one fifth of the franchisors reported total annual sales of more than $100 million in 2014, and the same number is expected for 2015. There are expected to be more franchisors in the $5 million to $20 million sector (from 17.6% this year to 20.6% in 2015) and in the $1 million to $5 million bracket (predicted to rise from 35.3 to 38.2 percent).

Improved franchisee performance was listed by 39 percent of the franchisors as the main reason for their revenue increases; the same percentage highlighted strategic direction as the key driver.

SO HOW ARE FRANCHISEES FARING? According to the franchisor respondents, 72 percent indicated franchisees had seen a boost in their revenue, with 21

Total revenue = $144 billion

Business format franchise revenue = $65 billion

1160 business format systems

Franchise units + 6000 = + 8.2%

COMPANY OWNED OUTLETS IN 2014

Have 1 company unit

18.7%

Have 0 company owned units

38.2% 19.5% Have 5+ company units

23.6%

PREDICTED 2015

Have 2-5 company units Expect 1 company unit

Expect 0 company owned units

17.9%

35.8% 21.1% Expect 5+ company units

25.2%

Expect 2-5 company units

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percent suggesting a decline. Profitability in the franchisee network had increased according to 64 percent of franchisors, with 500,000 17 percent listing franchisee profit levels500000 consistent with the previous financial year.

KEY STATISTICS 461,000

400,000 While 19 percent of franchisors believed400000 profitability had dropped among their franchisees, there’s a positive mood among 300,000 franchisors too, as this number declines300000 for 2015. Next year is set to be bigger and better: 83 percent are expecting greater 200,000 income for franchisees, and 80 percent are200000 predicting better profits.

181,000 155,000 125,000

100,000 Setting up as a franchisee can be daunting100000 for anyone new to running their own business, and on occasions franchisors may step in to help. The report reveals 00 26 percent of franchisors offered help in preparing financial applications, while 17 percent assisted with the provision of franchisee finance. Just 13 percent of franchise systems actually hold a bank accreditation.

70,000 9000

Rental, hire and real estate Education and training

Other services

Financial and professional services, recreation, construction, IT, manufacturing, wholesale, telco, transport and health care

TROUBLE IN THE NETWORK?

7%

6%

11% 12% 15% Admin and support services

Small systems tend to be undersized because of their youth. “They will either transition to larger systems over time or will exit franchising if they are unable to achieve economies of scale,” the report reads.

Franchising disputes have remained quite steady over the years, the latest figures in line with previous survey results. Disputes that have been referred to an external advisor were reported by less than a quarter

Company owned units

There’s growth predicted for next year in the number of company owned units franchisors will include in their networks, with 21 percent of franchisors expecting to have more than five company-run outlets.

Business format franchise units

The authors write “Given current economic conditions and based on past trends, this prediction is considered to be optimistic.

Nevertheless, it indicates that franchisors are confident about business conditions over the next 12 months.”

Part time employees

THE SECTOR

SECTOR OPTIMISM There’s a positive outlook among franchisors who have seen their networks expand. Over the last year the median number of franchise units – and this includes company owned outlets – has risen from 31 to 34 yet the expectations are for 41 total units next year.

Full time employees

Casual employees

Total employees

However, just over half (56%) of the respondent franchisors offer none of this assistance.

Retail

27% 18% Food and accommodation

SIZE OF SYSTEMS

40% Large franchise systems (50+ units)

27%

33%

Medium franchise systems (21-50 units)

Small franchise systems (-20 units)

NOV/DEC 2014 | 18 | WWW.FRANCHISEBUSINESS.COM.AU

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FINANCIAL PERFORMANCE 2014

FINANCIAL PREDICTIONS 2015 [according to franchisors]

FRANCHISOR

Franchisor revenue +9% in 2013-14 financial year

Franchisor profits +10.5%

Franchisor profits +7%

Franchisee profits +10%

FRANCHISEE

FINANCIAL ASSISTANCE

[according to franchisors]

Preparation of financial applications

26%

Franchisee revenue +9%

Provision of franchisee funding

17% Franchisee profits +5%

Hold bank accreditation

13%

MINORITY GROUPS Recruit Aboriginal or Torres Strait Islanders

7% Franchisors intend to recruit migrants

12%

16% Franchisors recruit migrant franchisees

Would be interested in a program to boost Indigenous franchisee ownership

51%

of franchisors (21%); the disputes were on average with two franchisees. That equates to just 1.5% of franchisees who are at serious loggerheads with their franchisors.

authors. “The Franchising Australia 2014 survey provides evidence of strong performance in the franchise sector across all segments, but particularly in retailing.”

And there was no change from previous reports over the content of disputes; the common threads of concern were system compliance and communication problems in the franchising relationship.

ABOUT THE SURVEY THE FRANCHISING AUSTRALIA 2014 SURVEY WAS CONDUCTED ONLINE FROM JULY TO SEPTEMBER 2014; 1109 FRANCHISORS PARTICIPATED IN THE SAMPLE; THE RESULTS ARE BASED ON 123 USABLE RESPONSES AND DO NOT INFER RESULTS FOR THE WHOLE FRANCHISOR POPULATION. AUTHORS: PROFESSOR LORELLE FRAZER, ASSOCIATE PROFESSOR SCOTT WEAVEN AND ANTHONY GRACE

“Despite ongoing fiscal restraint in the Australian economy, the franchise sector has performed strongly,” write the report

NOV/DEC 2014 | 20 | WWW.FRANCHISEBUSINESS.COM.AU

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ificial flavour s art

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taste the

SWEET REWARDS of becoming a Gelatissimo franchisee To change your lifestyle through investing in a business that is fun, flexible and rewarding contact Karen at Gelatissimo on (02) 8845 0100 or email franchise@gelatissimo.com.au.

gelatissimo.com.au

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NICHE OR NOVELTY: how to tell if the market has legs

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I

t’s the stuff entrepreneurial dreams are made of - stumbling upon a niche market opportunity and creating a new, lucrative business as a result, writes John Di Natale. You will often hear someone telling wide-eyed tales of the endless money just waiting to be made if you invest in the niche they have discovered.

They may well be right. There may be a gap in the market. As a potential franchisee, an important part of your job is to determine is there a market in the gap? Can a profitable, sustainable business be built to service the needs of that niche market in the medium and long term?

Franchising has long been established in a broad range of sectors – food (from ice cream to sushi), specialty retail (knives, curtains and blinds to safety equipment) health and fitness, service businesses and mobile services. Its important to remember as you explore opportunities, that many of today’s successful businesses were considered ‘niche’ when they began and have since become part of the mainstream as they built and met demand.

WHAT IS A NICHE – AND WHAT IS A NICHE BUSINESS? A niche is a small space. In a business sense it’s a distinct segment of a market. By definition, a small segment – you’re not going after the whole market, just a particular part of it. The alternate interpretation though is to look at niche from a product point of view. The finance industry for example is huge, but a number of businesses have carved out a space for themselves with a specialist offer – invoice factoring or finance tailored specifically for restaurant equipment for instance.

In many respects, going after a niche market is less risky now than it was 20 years ago. If you chose to produce hand-made jewellery for instance and operated from a retail store in your town, you were probably lucky to survive. If one percent of the town’s population is interested in your product at any one time, sales are not likely to “go through the roof”. Given the changes in technology and shopping habits, easy access to information and buyers’ comfort level with shopping online means that now, you may still be catering to one percent of the market, but if your market is worldwide you can have a very successful business.

Promoting your product to its niche market all around the world has never been easier – or cheaper. You can target more effectively and build a following in ways that early marketers only dreamed of with social media, websites, landing pages events and promoNOV/DEC 2014 | 23 | WWW.FRANCHISEBUSINESS.COM.AU

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tions. And by doing so, you can establish yourself as the expert in your field; the business that understands, relates to and can meet all the needs of its target market.

If the business you’re considering is truly unique and targeting a previously un-tapped market, the potential may be higher, but the risks will be too

From handmade stationery to scented wedding candles, small business owners are finding that being recognised as a specialist, building solid brand value and creating a unique customer experience are catalysts of success for niche operators.

Broader trends are driving substantial changes to buying preferences. Awareness of what constitutes good, healthy food for instance, is higher than ever. If the middle-aged man next to you in the supermarket analyses the contents of the muesli he is buying for 10 minutes, it hardly raises an eyebrow.

There is a much higher awareness of what constitutes good food and a healthy diet.

There are very profitable operations that focus specifically on gluten free foods for instance, for which demand seems to have grown rapidly over the past few years.

Partially perhaps because gluten intolerance has been better diagnosed but also because some people consider eating gluten free a healthier choice.

The desire to live a healthier, more active life is another broad trend that has hit the

mainstream and become a bit of a business freight train in the process. All kinds of businesses are now aligning themselves with this driving desire; 24/7 health clubs, personal trainers, dieticians, counsellors and gurus of every description have established successful business on the momentum this trend has created.

So, there are niche opportunities worth pursuing. If the franchise you are considering claims to be in a niche market, there are some important things to consider however, before diving into a franchised tub of frozen paleo bio-dynamic gluten free ethical yoghurt!

IS YOUR NICHE BUSINESS NEW, OR JUST NEW TO THIS MARKET? If the business you’re considering is truly unique and targeting a previously un-tapped market, the potential may be higher, but the risks will be too. Look for relevant market research for the demographic you are appealing to: professionals, business owners, stay-at-home mums‌ to see what trends could potentially affect your business. If the business is brand new, you may have to take a leap of faith and jump in. This is where you need to pay attention to your intuition or gut feel.

If it makes sense to you in terms of what

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All across Australia people are becoming increasingly conscious of their health and lifestyle and are making better food choices for themselves and their families.

While food trends come and go the desire to embrace a healthy diet and active lifestyle are here to stay.

These well-educated consumers are creating huge demand for fresh, good quality food and juices and this will only increase over time.

Raw Energy is the perfect healthy business and an integral part of people’s healthy lifestyle.

If you’re interested in: • Creating a healthy lifestyle • Building a healthy business • Joining a winning franchise system Please give our CEO (Chief Energy Officer) Matthew Hope a call on (07) 5444 1099.

Matt will be more than happy to answer any questions and discuss the franchising system in further detail.

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A niche business is not the same as a fad or a novelty, in which interest will wear off over time. Niche businesses have the ability to connect in a deeper, more meaningful way with their customers and as a result, become successful sustainable enterprises

you know about the market and your customers preferences, well and good. If on the other hand, it looks too good to be true, as the saying goes, it probably is.

Use some comparative analysis to assess how the business might fare here. Does it exist in the US for example? If it does, look closely at the market it serves. How big is that market, what are the characteristics? If those same characteristics exist here, you may be able to draw some conclusions about the potential of your business to succeed. Has the business shown a continuous growth curve or have the past couple of years looked like it might be going backwards? Check to see whether this is reflected in similar businesses, which might suggest the market is in decline, or whether other businesses are still growing, which might reflect a poorly run operation.

WHAT’S YOUR PASSION? It’s all very well to talk about the niche opportunity, but if the business you’re buying doesn’t excite you, my straightforward advice is, don’t buy it. It may appear to be a great opportunity but it’s going to wear thin, usually very quickly, if ultimately you don’t look forward to going to work because you don’t have the passion for your product, your people, and your customers. So, find something you really believe in and enjoy. Here’s a little exercise you can use as a litmus test; imagine telling your best friend about the business you’ve just bought and how excited you are about it. If you can’t do it convincingly, I suggest you look for something else.

There is a huge amount of information at our fingertips – more than we could possibly absorb in fact, so in between watching funny cat videos, put the net to some good use and do some solid research.

WHAT IS THE BROADER SECTOR DOING? What are the emerging trends that have the potential to foster businesses that grow significantly over the next 10 years? Talk to your friends, business colleagues and to other franchisees. All sectors start by emerging, progressing toward maturity, and then into decline and there are substantial financial opportunities at every stage of this cycle. The question is how long this process takes. If your product or service is a fad, then this happens very quickly. We’ve seen many business concepts that have emerged, had a run of popularity, then disappeared as fast as they got here.

If your niche is in a sector that is ultimately on the decline, it may not have the longevity you hope for. Sectors that have enjoyed longer-term positive trends are health and wellbeing, aged care, children’s products and services, food, hair and beauty, leisure and fitness. Spend the necessary time in your due diligence process understanding the trends that your business will be affected by.

A niche business is not the same as a fad or a novelty, in which interest will wear off over time. Niche businesses have the ability to connect in a deeper, more meaningful way with their customers and as a result, become successful sustainable enterprises. Your passion might be for building custom letterboxes or providing drug-free therapies for stress relief. If you successfully align your passion to a niche that hits the market sweet spot, you’re well on your way to success!

JOHN DI NATALE IS MANAGING DIRECTOR OF AXIS ADVISORY, A BOUTIQUE CONSULTANCY HELPING FRANCHISORS AND FRANCHISEES GROW MORE EXCITING, MORE PROFITABLE AND MORE REWARDING BUSINESSES. CONTACT: JD@AXISADVISORY.COM.AU

NOV/DEC 2014 | 26 | WWW.FRANCHISEBUSINESS.COM.AU

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JOIN THE TOP SNAP® TEAM THE PROPERTY PHOTOGRAPY PROFESSIONALS

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Tips for a

SUCCESSFUL

FRANCHISE RELATIONSHIP

A

ll businesses experience commercial disputes with other businesses from time to time, and franchises are no exception.

Geoff Browne, Victorian Small Business Commissioner suggests the key to a successful business relationship is to prevent disputes arising in the first place, and deal with them appropriately when they do arise.

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WAYS TO PREVENTING COMMERCIAL DISPUTES ARISING Commercial disputes often occur when each party’s understanding of their ‘agreement’ is different. This may arise if the agreement is oral, not written; if there is ambiguity or uncertainty in a written agreement; or if a party’s expectations of the agreement entered into are not in accord with the contracted terms.

Franchise agreements in Australia are governed by the Franchising Code of Conduct. Franchise agreements must be in writing, and address a broad range of rights and obligations of each party.

Disclosure of key elements of the franchise agreement must be provided. Nonetheless, disputes arise.

Common causes of disputes in franchise (and other) agreements are: THE NEW FRANCHISEE DOES NOT READ, OR UNDERSTAND, THE CONTRACT BEFORE SIGNING FR 0 7 1 4 _ that 0 0 before 0 _ X Pyou R Esign - any 1 It is imperative

commercial contract, you read the contract and ensure you understand it. Make sure that you understand all elements of the agreement. What are your financial obligations to the franchisor, and on what basis do they occur? What training, assistance, and other support is the franchisor committing to provide? What service standards or business outcomes must you achieve? What parts of the business operation does the franchisor provide and what parts must you provide – for example, financial systems, marketing, supplies, uniforms, website, etc. Make sure you check the termination provisions of the agreement. Many franchise agreements are for specified durations, and there are no obligations on the franchisor to offer a further term to the franchisee, no matter how successful. Further, if you want to exit the franchise during the term, there are usually costs you will incur to do so.

The franchisor will also need to approve any other party willing to purchase your business.

advice is a wise investment that can assist you to fully understand the terms of the contract, and make an informed decision on whether to proceed with the purchase.

THE NEW FRANCHISEE THINKS THE PURCHASE OF A FRANCHISE IS THE PURCHASE OF A JOB Buying a franchise is buying a business, not a job. The responsibility for making the franchise successful is yours, within the terms set by the franchise agreement.

This means that all parts of the business need to be managed effectively: finances, cash flow, customer service, marketing, procurement, and so on. In contrast, as an employee you can do your job well and get paid, but the success of the business depends on the business owner.

You may be very good at customer service, but not at accounting or cash flow management. As a franchisee, you need to understand what skills you have and what skills you need to The cost of purchasing a franchise can source, whether by employing someone 2be0 1 substantial.

4 - 0 6 - 1 8Seeking T 1 0 : 3professional 1 : 4 7 + 1 0or : outsourcing.

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Xpresso.com.au facebook.com/XpressoMobileCafe NOV/DEC 2014 | 29 | WWW.FRANCHISEBUSINESS.COM.AU

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It is important that you anticipate the possibility that your expectations may not be realised your revenues may be lower than expected, and your costs higher

THE FRANCHISE IS NOT AS SUCCESSFUL AS EXPECTED

GET PROFESSIONAL HELP

A franchise provides the potential for business success, but you need to make it happen. Expectations of certain income will not magically occur, particularly in the early stages of a franchise when you are ‘learning the ropes’. It is important that you anticipate the possibility that your expectations may not be realised – your revenues may be lower than expected, and your costs higher. You need to ensure you have adequate working capital or other sources of finance to address any shortfalls in profitability, particularly in the early stages of a business.

Small Business Commissioners in Victoria, NSW, WA and SA are independent statutory entities formed to help businesses resolve their disputes with other businesses quickly, effectively and at low cost, avoiding litigation and enabling both companies to ‘get back to business’.

Many businesses fail through lack of access to working capital, when all monies have been used to purchase the business leaving no spare funds to cover difficult times. Unfortunately, costs do not stop when revenue does: rent, supplies, royalties, marketing and other costs will continue, regardless of your business performance.

Professional financial advice on the business venture can assist you to identify the financial risks that need to be understood and planned for.

COMMUNICATION IS KEY During the term of your franchise, communication between the franchisor and franchisee is key. When communication breaks down, disputes can arise. When this occurs, make sure you put your concerns clearly in writing to the other party, as this can assist in crystallising the issues. Be willing to participate in alternative dispute resolution (eg. mediation) to resolve your dispute and let both franchisee and franchisor get back to business.

The Australian Small Business Commissioner can also provide information and assistance on franchise and other commercial disputes.

Dealing with thousands of commercial disputes annually gives Commissioners unique insight into the common causes of business disputes.

Contact the Small Business Commissioners in Victoria, NSW, WA and SA for information and assistance with any commercial dispute, including franchising disputes. Franchising disputes can also be referred to the Office of the Franchising Mediation Adviser.

You can contact Small Business Commissioners: Victoria: www.vsbc.vic.gov.au/ph 13 8722 NSW: www.smallbusiness.nsw.gov.au/ ph 1300 795 534 WA: www.smallbusiness.wa.gov.au/ ph 13 12 49 SA: www.sasbc.sa.gov.au/ph 1800 072 7222 Australia Small Business Commissioner: www.asbc.gov.au/ph 1300 650 460 Office of the Franchising Mediation Adviser: www.franchisingmediationadviser.com.au/ ph 1800 150 667

NOV/DEC 2014 | 30 | WWW.FRANCHISEBUSINESS.COM.AU

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Get that equipment for your business without affecting your cash flow Join more than 25,000 other Australian businesses who have secured their equipment through us.

PRE-APPROVED FINANCE

Our Rent-Try-Buy® Solution is perfect for franchisees who want to keep their options open. You won’t be locked into a long term contract.

Instead, Silver Chef offers a simple 12 month term, so you have the flexibility to: • Buy equipment at any time during the first 12 months and receive a 75% rental rebate.

• Return equipment at the end of the 12 month agreement if you don’t need it anymore.

• Keep renting and we’ll continue to reduce the purchase price.

• Upgrade if you decide your franchise has outgrown the original equipment.

Contact Silver Chef today on 1800 337 153 for fast, easy approval or visit www.silverchef.com.au/franchising

J002058

If you belong to a Silver Chef Accredited Franchise, you are already pre-approved for finance and you can access other great benefits. Speak to your franchisor today or call the Silver Chef Approval Centre on 1800 337 153 for further information.

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S

etting up a franchise and securing a small business loan can sometimes be daunting. Banks are here to help and some have a dedicated team of professionals who are available to help both new and existing franchisees with their unique financial requirements, no matter how big or small.

JULIE RYNSKI The following tips are a guide to assist you with your loan application, to ensure you have the best lending solution for your business.

1. PREPARATION IS KEY It is best to arrange an appointment with a small business banker or specialist to discuss your financial situation and business loan requirements.

To ensure you have a great meeting with your banker, it is recommended to bring the following: ✱ Supporting documents – bring along records of your current financial situation and borrowing history. This includes: bank statements, superannuation statements, previous loan documents and any other information you think will be relevant. It is also advisable to bring along a draft copy of your franchise agreement to talk through. ✱ Security – some franchise systems have arrangements in place with lenders to accept the new business as partial security. Ask your franchise contact about the options in place so you can discuss with your lender.

2. KNOW WHAT YOU NEED Be prepared to talk to your lender about the amount you think you require and how long you think you might need it for, to ensure the lender can help you find the best loan for your business. Some things to consider:

✱ How much money do you think you will need during the start-up phase? ✱ Do you require the money in advance, or do you have some savings set aside? ✱ How long do you think it will take you to pay back your business loan? ✱ What security do you have available to support the loan?

This can be a combination of cash, real estate or even the franchise business.

General manager, Westpac Small Business

3. SPEND TIME ON YOUR BUSINESS PLAN The more confident you are with your business plan, the better the lender will be able to understand your business needs. The business plan should be clear and succinct, regardless of length; a longer business plan doesn’t necessarily mean a better one. You need to make sure that you have all of the relevant information in the plan, presented in an easy to understand format.

Ensure you have: ✱ Thoroughly reviewed your existing business plan - make sure that it demonstrates up to date and accurate information that is relevant to your franchise. ✱ Included a clear financial plan - be prepared to talk through how you intend to grow the business within the franchise model in order to meet your personal and business financial goals.

You should consider: 1. Adding a PEST and SWOT NOV/DEC 2014 | 32 | WWW.FRANCHISEBUSINESS.COM.AU

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TOP TIPS FOR SECURING A SMALL

BUSINESS LOAN

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The more confident you are with your business plan, the better the lender will be able to understand your business needs

analysis to your business plan:

4. KNOW THE MARKET

✱ The PEST (Political, Economic, Sociological and Technological) analysis will show that you have a good understanding of the environment that you are operating within, including any benefits and potential barriers that you could experience. ✱ The SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis will show that you have a realistic understanding of how your business is positioned within the market to capture the value that you hope to gain from the lending.

As a current or future franchise owner, you will have access to a broader network of advice and learnings. It’s important to not only know your competitors, but also review the activities and performance of other stores in your franchise network. You can use this information to assess what has worked, and what hasn’t, and adjust your business plan accordingly.

2. Adding performance metrics to your plan: ✱ Historical data - showing the past trends of business activity. ✱ Projected future outcomes - showing the minimum standards for success that you have for the business moving forward.

The business plan should include enough information to show that you understand what the opportunities and threats are within your industry, and what might be a barrier to success. Ensure you have a good understanding of who your competitors are, their customer value proposition, their target market and how they communicate to their customers.

5. FIND A LENDER The franchise buyer should consider many things when seeking a lender: ✱ Does the lender have an existing policy for the franchise you are with, or are buying into? ✱ Does the lender offer a preferential interest rate or ongoing fee due to an existing relationship with the franchise? ✱ Will the lender offer you a relationship banker with an understanding of your industry? ✱ Does your lender offer ongoing support via forums, networking events, access to industry specialists and data?

6. RESEARCH YOUR OPTIONS While your lender will be wellplaced to work with you on your finance options based on your

NOV/DEC 2014 | 34 | WWW.FRANCHISEBUSINESS.COM.AU

situation, it is worth coming to the initial meeting prepared with research, and your own ideas on which type of loan will be the best for your current situation and day-to-day business activity. For example, Westpac offers three types of loans for small business, which suit a range of businesses in different stages of growth: ✱ Business Overdraft – helps cover invoices and wages, pending receipt of cash flow ✱ Business Loan – longer term finance to purchase or grow your business ✱ Business Equity Loan – a variable rate with flexible line of credit

7. FINAL PREPARATION Practice confidently talking through your business plan ahead of time so that you can remember the key points, and explain them clearly and concisely. Try to identify issues or gaps in the plan, and practice responding to the most likely questions you will be asked.

The more knowledge of and confidence in your business plan, the more likely the lender will be able to identify the right financial solutions for you and your business. *The information provided does not take your financial position into consideration and should only be used as a guide.

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Domino's is not just Australia and New Zealand's leading pizza brand – it's also one of the world's most advanced digital retailers. So if you're looking for a franchise that delivers on your goals you can't go past Domino's.

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Ongoing training and support for franchisees and their teams.

A proven and trusted brand that's passionate about pizza and people.

Call 1300 131 888 or visit: dominos.com.au/franchising

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FRANCHISEES

and smart business selection

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W

ith more than 1180 different franchised businesses operating in Australia potential franchisees face the task of sifting through the array of choices to find just what suits. Ian Krawitz advises that general research alone will not reveal the key information a potential franchisee needs to make the most informed decision.

A potential franchisee may spend months assessing their options and the level of information they will receive in the process can be daunting, especially once they reach the full due diligence process. A recent study by topfranchise.com.au shows a successful franchise is one that enjoys the right combination of seven key business categories: support, marketing, passion, lifestyle, brand, opportunities for expansion and financial. The perfect balance of these elements creates a franchise system that is buoyed by a network of satisfied franchises willing to renew and recommend the business to others.

Based on these categories a potential new franchisee can examine a business opportunity more thoroughly to gain insight into the model and assess its suitability not only from the initial stages but up to the point disclosure documents and the franchise agreement are signed. The entire process is an opportunity for both the potential franchisee and franchisor to gain important information that may determine whether negotiations will proceed any further, so the more questions the better.

1. SUPPORT WHAT STRUCTURE IS IN PLACE TO ENSURE I RECEIVE THE SUPPORT I NEED TO SUCCEED? The old adage in franchising is that you are in business for yourself but not by yourself because support and structure are at the core of the franchise model.

Key things to investigate include; length and content of the initial training period, what management support is available, whether the franchise has business coaches, what business management training is provided on a regular basis, what systems are in place to track performance, whether there is a proven performance structure to follow.

Ferguson Plarre Bakehouse is a prime

example of a business providing a wellstructured, fully supported pathway to success. In the topfranchise.com.au study the company scored highly in the support category largely due to the implementation of a 10 star excellence program providing the steps necessary for franchisees to extract maximum value from the business. Covering 10 key aspects of business management from product selection to marketing and human resources, the program provides franchisees with clear indicators of best practice and provides them with a tangible way to assess their success at every level of operation. It was implemented to make running the business simpler and is monitored by business coaches who work directly with franchisees to achieve each of the steps.

Every company will have a different system it applies but support is an important aspect of success for any franchise; a franchisor needs to be able to show a prospective franchisee how that will be provided throughout the journey at a local and national level.

Other key indicators of a well-supported franchise include a structured process for business planning and monitoring of success and regular reviews with the franchisor or state manager, all of which you can request examples of for review.

2. MARKET WHAT ASSISTANCE IS PROVIDED TO MARKET THE BUSINESS? Marketing in any business is necessary for growth but it is also one of the elements of running a franchise that most people are the least confident about and find most difficult to execute.

A franchise generally includes a marketing fee as part of its structure to provide a pool of funds that enables the brand to provide marketing for its franchisees, as well as satisfy general brand awareness. Apart from finding out the fee, a prospective franchisee needs to determine the key tools and training

NOV/DEC 2014 | 37 | WWW.FRANCHISEBUSINESS.COM.AU

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provided to help the business engage at a local level. Key things to enquire about include the overall brand promotion provided, assistance available to help launch the new franchise location, the long-term local area marketing activity and support provided, and what training is available to increase marketing skills through to the actual physical tools provided such as marketing plans, product releases, public relations and advertising templates. Marketing is critical to success so it will literally pay dividends to find out what a potential franchise offers.

Mister Minit, a brand with over 247 locations with 126 franchisees across Australia, has a strong local area marketing program that performed well above industry standard in this segment of the topfranchise. com.au research. It provides a F R 0 9 1 3 _and 0 3 hands 9 _ CA well-resourced onF

A franchisor needs to be able to show a prospective franchisee how support will be provided throughout the journey at a local and national level

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2

local area marketing campaign and training package to franchisees to maximise uptake and execution. It provides tools to allow franchisees to establish partnerships with others retailers, exploit in-centre advertising opportunities, as well as targeted national promotions and innovative product that focus directly on its customers.

Research shows a franchise needs to ensure its brand message is marketed in a clear and consistent manner to engender franchisee satisfaction and that it empowers and trains franchisees to maximise marketing tools provided.

Googling a brand is a good start to see what natural searches reveal. In today’s landscape digital marketing is very important so it will be helpful to ask about how this works for the franchise in generating customer enquiries. The same 2 0 1 3 - 0 8 - 1 5 T 1 goes 5 : 0 : 2 0media: + 1 0you : 0should 0 for5social

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question the company’s policy and how it is used to engage with potential customers.

3. PASSION WILL I BE PASSIONATE ABOUT THIS BUSINESS? As most small business owners will attest, without passion it is hard to find the motivation to maintain a business when times get tough and this is no different in franchising. Part of the franchise buyer’s decision making process needs to be assessing their true belief in the product. Will he or she feel proud to sell and represent it, would they be happy to tell everyone you know about their line of work, do the company values align with their own?

If a prospective franchisee can answer yes to those questions, the next step is to consider if family and friends would also

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support the choice. There are a lot of hours and hard work put into business and the topfranchise.com.au survey revealed a clear link between strong family belief in the type of business and its values and a franchisees motivation to succeed. In other words a person’s passion for their business is correlated to their family’s passion and support for the business.

Mrs Fields ranked highly in this category with a brand redevelopment at the centre of rekindling franchisees' passion for their business. The overhaul of the brand including new store designs helped franchisees to reconnect to their business by making the proposition for customers clearer. The exercise clarified what the brand stood for, sparking the passion and providing a clear framework for what the business is about.

The overall effect was that a greater number of franchisees

endeavoured to achieve more in their businesses once again because their pride and belief in the brand was ignited and aligned. This in turn lifted financial success and resulted in a better work life balance, fuelling the perception of success with family and friends which according to the research is tightly linked to a franchisee’s overall satisfaction in a business.

4. LIFESTYLE WHAT TYPE OF LIFESTYLE BALANCE IS POSSIBLE? There is no denying owning a business is hard work and even in franchising where franchisor support can be at a high level, success is still linked to input. Depending on the style of business the lifestyle benefits will vary but at the core of any satisfied franchisee is a good work life balance. Key things to enquire about include the

average working hours of the most successful franchisees, flexibility of the model in regards to management hours, whether the model lends itself to hiring managers and staff to allow greater freedom of hours for the owner. The best way to get a glimpse of a typical franchisee lifestyle is to speak with other franchisees and, depending on the stage of research, spend at least a day with one of them.

Hard work is inescapable as a business owner but it is important to choose a model that enhances your lifestyle goals.

5. BRAND IS THE BRAND WELL KNOWN AND PROMOTED? In franchising the popularity of a brand is certainly a key factor in attracting potential franchisees and the more highly recognised it is the

NOV/DEC 2014 | 39 | WWW.FRANCHISEBUSINESS.COM.AU

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The potential growth of a business is closely aligned to earnings potential so it is important to know if a franchise has a predetermined path for expansion

more perceived value is attributed to this business asset.

How the brand is promoted is at the core of this satisfaction for a franchisee and key things to investigate include how the brand is promoted throug out the year: what regular advertising is undertaken, consider the quality of the website and content provided, is there public relations to help enhance credibility, does the brand story excite, how many friends have heard of it, what does an internet search on the founder and brand reveal, does it have a strong presence on social media?

Many companies will conduct brand research to determine the awareness and popularity of their brand against competitors so asking to see this can give a prospective franchisee a good idea of public perception. Snooze for example, has strong TV and digital advertising throughout the year and prove and track brand recognition both on and offline via regular research.

For most potential franchisees the strength of the brand is recognised as one of the first things that attracts; it is important to be certain the franchisor is committed to maintaining its brand presence as this will help when it comes to selling your business.

6. EXPANSION WHAT ARE THE OPPORTUNITIES FOR EXPANSION? The potential growth of a business is closely aligned to earnings potential so it is important to know if a

franchise has a predetermined path for expansion. Depending on the model the options will be different but key questions to uncover the possibilities include: are there different levels within the business that make it easy for you to grow and gain confidence, is it easy to expand to multiple sites, what range of products are available, are there expansion opportunities for additional franchises, how many multi-site operators are within the network?

The number of locations or territories available and the potential of the market are also important factors to reveal.

Some franchises will have a competitive market synopsis they can share. It’s all about working out the scope of the business and how that aligns with your business goals and how big you want to dream.

Asking to speak with a multiunit owner will help to reveal the path to growth and possible expected timings.

7. FINANCIAL WILL THE MONETARY REWARDS MEET MY EXPECTATIONS? Money doesn’t buy happiness, so they say, but research has revealed it is certainly connected to a person’s satisfaction in their lifestyle. Every business model will vary in earning potential and level of investment required but some of the key things to ask as part of the decision making process include: what is the average return on investment timing, what is a typical franchisee’s earning potential, what are the different avenues for gener-

ating turnover, what is the success rate of resales?

Satisfaction in earnings is very individual but franchisees in the topfranchise research based their answers on whether they drew a larger salary than they could receive elsewhere and the balance of what they earn versus what they think they could be earning.

Smartline Personal Mortgage Advisers, who ranked the highest in this category, achieved this by ensuring consistent income and multiple levels of income generation through new products ensuring further avenues for income generation regardless of market conditions.

While earnings are a direct correlation to the amount of input, key considerations are what are the pretax net profits of existing operations, what are typical sales patterns, what are typical high and low sales periods, how long will it take to draw the target salary and what is the expected return on investment?

The definition of success is indeed individual and the decision to go into business should be thoroughly researched to ensure the highest possible potential for satisfaction in all areas of life. Franchise buyers should not be afraid to ask questions as this will help determine if the franchise has the conditions required for achieving personal goals.

IAN KRAWITZ IS THE FOUNDER OF RESEARCH FIRM 10 THOUSAND FEET AND TOPFRANCHISE.COM.AU.

NOV/DEC 2014 | 40 | WWW.FRANCHISEBUSINESS.COM.AU

FR0914_000_DODO

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Dodo Connect is on a nationwide search for franchise partners Help us grow the hundreds of thousands of existing Dodo customers already enjoying our great value products and services.

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SELL, SELL, SELL noV/dec 2014 | 42 | www.franchisebusiness.com.au

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W

hen is the best time to sell your franchise? If you’re making money should you sell your business before the first term of the franchise agreement expires?

Going into business for yourself as a franchisee is exciting. Once you have decided to commit yourself, and your family, to the all-encompassing job of running your own business, although it might seem odd, it really is worth considering your exit strategy.

Why? Well, going into the franchise with a clear idea of how and when you will exit the business, gives a shape to your franchise journey, will help you steer the business and will allow you to prepare in plenty of time for the sale.

For some people there is a clear path towards the exit sign; for others the signposts are a little blurred and need further clarification.

Franchisees purchase their businesses for a myriad reasons but there are two major issues around selling that should be considered: 1. How long will it take you to recover costs and make the ROI you want?

2. Will there be an opportunity to renew your agreement?

1. WHAT WILL YOUR BUSINESS BE WORTH? A basic principle of franchising is that the good will built over time by the franchisee is really that of the franchisor, as the franchisee is trading on the franchisor’s brand and system, lawyer Robert Toth at Wisewould Mahony explains.

“The franchisee is granted a licence (a contractual right) to operate the business under that brand and system. The good will at the end of the franchise term remains that of the franchisor.”

Toth says any good will you can recoup when you sell the business is dependant on three aspects: ✱ Whether the value of the franchise system as a whole has increased over time ✱ Whether the individual business itself is profitable ✱ The vendor may ask for a multiple of its profit which may vary from the previous years net profit, the average of the last two or three years net profit, or a multiple of three to five years “There are other valuation models that can also be used. At the end of the franchise term, if there is no further option, the licence ends. The franchisee is required to de-brand. In that event the only obligation on the franchisor is to pay the franchisee the depreNOV/DEC 2014 | 43 | WWW.FRANCHISEBUSINESS.COM.AU

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ciated or written down value of the franchisees plant and equipment and stock,” he says.

before the end of the first term actually becomes should you sell your franchise in the first couple of years?

“There is no obligation on the franchisor to buy back the business from the franchisee or recognise any good will that may have been built by the franchisee over time.”

Toth is quite adamant on this. “Selling a franchise within the first two or three years is not an opportune time to sell and is likely to crystallise a loss to a franchisee,” he says.

2. RENEWALS The Franchising Code of Conduct which governs the sector has no requirement for a franchisor to grant a further term or option to the franchisee.

What it does provide for though is in any franchise agreement with a term of six months or longer, the franchisor must notify the franchisee at least six months before the end of the term of its decision on whether or not to enter into a new franchise agreement.

“Many updated disclosure documents now meet that requirement by simply indicating that there is ‘no right to renew’ the franchise agreement at the end of the term without any further notice being provided by the franchisor,” warns Toth.

As there is no typical franchise term (rights can be granted for 12 months, three years, 20 years – and anywhere in between) the question of whether to exit your franchise

“Most business plans provide for a return on investment (ROI) to a franchisee after three or four years. The upfront capital costs of entering into the franchise are generally amortised over the first two to three years.

“It is unlikely that a franchisee will be able to ask for any good will or be able to obtain a return on their capital costs if they sell in this period, although that will depend on the nature of the franchise. A franchisee with a trading history and financial statements that are up to date and provide for a reasonable wage to the operator – and a profit – will have something to offer a prospective purchaser,” he says.

“The best time to sell your franchise business is shortly after renewing the franchise agreement, while you may still have a reasonable term left,” he suggests.

“However if you only have two years left of your franchise term without knowing the franchisor’s position on

renewing the agreement then you have little to offer a buyer.”

THINGS TO CONSIDER ✱ If you are in default, you cannot expect a co-operative franchisor when it comes to sale time ✱ If you hold the lease, the time left on this may be different to the franchise term As you get closer to your deadline date there will be costs aligned to the selling process so it’s vital to understand the cost and exit fees so that those can be calculated into your negotiations with a prospective buyer.

Toth highlights some of the costs involved: ✱ Business agents fees and advertising; ✱ Landlords costs to approve the incoming franchisee; ✱ The franchisors costs which can be a fixed fee or a percentage of the sale price; ✱ Capital Gains Tax on eventual sale Preparation is key to maximising your business sale.

“Plan to sell your business, do your homework, get expert advice from a franchise lawyer and your accountant and identify the issues, costs and process,” he advises.

NOV/DEC 2014 | 44 | WWW.FRANCHISEBUSINESS.COM.AU

FR1113_000_SUB

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2013-09-19T14:58:54+10:00

FR0914_000_TFS_P1

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2014-08-28T08:24:47+10:00

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PRIVATE EQUITY,

ACQUISITIONS AND THE

FRANCHISEE

A

ny franchise buyer is investing in a business for the brand, the processes and of course income potential. But there might be other investors too: increasingly there are acquisitions among the industry and a string of private equity buy-ins that reflect confidence in the sector and in particular brands.

NOV/DEC 2014 | 48 | www.franchisebusiness.com.au

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Mid-size businesses partnering with private equity firms are shown to be accelerating growth plans.

Private equity investments in the franchise sector include two US based firms honing in on the global potential of juice – first the Riverside Company partnering with the Boost Juice parent group, Retail Zoo, before selling its 70 percent stake to another private equity firm, Bain Capital.

The top 10 Australian deals include Archer Capital’s investment in Quick Service Restaurant Holdings, parent company of Red Rooster, Oporto and Chicken Treat. Archer bought the business from Quadrant Private Equity which had grown the chicken chains from 460 to 620 stores in four years.

Quadrant went on to acquire pet supplies chain City Farmers F R1 1 1 4 0 0 0 _ REV Retail, based in _Perth.

SO WHAT ARE THE BENEFITS FOR FRANCHISEES? Corinne Attard, a partner at Holman Webb Lawyers, highlights that a system that has been acquired by a public company or been the subject of investment by private equity will have been through a due diligence process by the buyer.

that the franchise system is a fly by night business.

“On the other hand a franchisor which is a public company or is controlled by an investment house may not have that passion for the brand that usually characterises the original founder and which attracts the loyalty of the staff and the franchisees. Decisions will be made on an objective basis with a view to the bottom line rather than for emotional or other reasons,” she says.

“For a franchisee this means that an objective assessment of the systems and its processes and compliance will have been made. A decision has presum- This might affect existing franably been made that there is chisees more than incoming some long term viability in the franchise buyers however. concept making the investment “Sometimes longstanding franworthwhile. These systems chisees cannot accept the new usually have a board of directors style of management. There may which will include those who also be a cut back in head office are not directly involved in staff if the intention of the acquimanagement. This should take sition is to join several brands away any fear that a franchisor together and share resources.” founder is running the system - his1 or her 2 0personal 1 4 - 1 fiefdom 1 - 0 4orT 0 Tony 9 : 1Arena 5 : 0 from 6 + 1BCI 1 : Business 0 0 as

Brokers says there’s a distinct difference between investing in a founder/owner business and a company driven by private equity or shareholders.

“Two questions I would be asking would be: how long is private equity in the business for and where do I rank in the stakeholder list?”

There are three key stakeholders (not including the staff): the shareholders, the franchisees and the customers. Arena says the question to consider is, does anyone get sacrificed?

“If the business is still under the founder’s management this might be more personal and sharing, but that is not always the case. An owner who set up the franchise and may even have been a franchisee has grown up in the business and has an affinity with the franchisees. That may not be

“sales have increased significantly” “I wouldn't hesitate to recommend Revel” “made it easier for us to manage our business” “a surprisingly simple affair” “beautiful and sophisticated” “their support and service is second to none” “delivered everything they promised and more” “a breath of fresh air”

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Whether their business is a multinational enterprise, or even a pop up store, Revel offers the tools a business needs to succeed and grow.

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To find out how Revel can help your business and see the full testimonials head over to revelsystems.com.au/franchise Or give us a call on 02 8417 2668 today.

Upgrade your business today.

NOV/DEC 2014 | 49 | WWW.FRANCHISEBUSINESS.COM.AU

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there in a private equity or listed company set up,” he says.

However there is also the question of perspective among business owners. A large, privately owned franchise chain can still have the trappings of a small business because the owners think like small business owners.

It’s important to consider the profit equation, he says.

“If the business gets tight and is owned by a large company which has a number of brands, there could be more pressure if there is underperformance, the franchise could be cut free,” he warns.

But there are benefits to a more distanced ownership when it’s accompanied by deep pockets.

“Every business is going to struggle at some stage, and if it’s in the hands of investors they might be able to weather the storm a bit better.”

Companies with external investors can enjoy economies of scale, and that means decent training and access to a supply chain. “A good big guy will, 85 percent of the time, beat a good small guy,” suggests Arena.

The other 15 percent of small business success comes down to agility, and nimbleness is an important consideration says Warren Billett, managing director at Retail Growth.

“What’s the culture? Sometimes having a board can slow down processes,” he says. “It’s a question of maturity. If the franchise is emerging, or a bit staid, investment can be a good thing. It could give existing franchisees a lift, give more stability and brand profile, more marketing, it may enable product development.”

Billett says it’s important to do your homework about the ownership when you are conducting due diligence.

FRANCHISEES IN ACQUISITION MODE A KFC franchisee, Collins Foods acquired the Competitive Foods 44-strong KFC franchisee business to boost its expansion into both Western Australia and Northern Territory. This consolidates Collins Foods as the largest KFC franchisee in Australia, CEO and managing director Kevin Perkins said at the time of the announcement.

“We like the business and we think we’re good at it. We can add some synergies to it,” Perkins told Franchising.

Collins Foods now has 122 KFC outlets in Queensland and two in New South Wales. The business also operates 27 Sizzler restaurants in Australia, is the franchisor of more than 50 Sizzler outlets in Asia and owns the Sizzler trademark globally (except in the US, Guatemala and Puerto Rico).

If it’s a large company, why has it looked for investment? Perhaps the business structure needed a shift; perhaps it was a private company and one partner has to sell. Finding out why a business has an investor is an important part of the process, he says.

RETAIL ZOO Janine Allis, Boost Juice co-founder and executive director at Retail Zoo, is quite clear about the benefit of private equity – it’s the investment it brings. “Private equity has a place in the marketplace because it’s money coming into businesses,” she says.

At the time of Riverside’s investment Allis described Riverside as an ideal investor, bringing a strong franchise background through its stake in other franchised businesses including the Dwyer Group in the US, a multifranchise business similar to the Jim’s Group.

According to the Grant Thornton Retail Dealtracker Report Checkout: Shopping for Growth, the new majority owner, Bain Capital, has investment in a Japanese restaurant chain operating about 3,500 outlets across 48 brand names and has backed global big name fast food brands such as Domino’s Pizza, Burger King and Dunkin’ Brands. It has also invested in accounting software

group MYOB. Craig Boyce, a managing director at Bain Capital, says “Retail Zoo is highly aligned with our Australian investment strategy – leveraging our global QSR experience and a platform for international expansion.

"It participates in attractive QSR categories with leading market positions, very strong brands, solid customer relationships and numerous opportunities for further growth. We plan to work with the founders and management to build on their superb record of achievement.”

So what will Bain add to the Retail Zoo operation? According to Boyce, the investment will allow for further product innovation and expansion.

“We see an exciting opportunity to build on Boost’s strength as the leader in the Australian food and beverage market, with further health-oriented product innovation and site expansion beyond the traditional mall locations into universities, train stations, airports and petrol stations,” he says.

LASER CLINICS AUSTRALIA The Australian based Archer Capital looks to an active

NOV/DEC 2014 | 50 | WWW.FRANCHISEBUSINESS.COM.AU

Every business is going to struggle at some stage, and if it’s in the hands of investors they might be able to weather the storm a bit better

FR1114_000_HAIR

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partnership with management, acquiring companies in equity partnership.

It’s a question of maturity.

If the franchise is emerging, or a bit staid, investment can be a good thing

One of its two funds, the Archer Capital Growth Fund, targets firms with an enterprise value of between $20m to $100m. It has seen the light in laser, recently signing up to a partnership with franchise chain Laser Clinics Australia (LCA) which operates 30 clinics around Australia.

LCA’s business model has made cosmetic treatments such as Botox injections convenient and affordable for consumers and is underpinned by three key pillars of success, says general manager Ian Houlton.

1. an industry leading approach to product innovation and clinical safety 2. providing an unrivalled customer experience and 3. a pricing strategy that guarantees consumers the best possible value for money.

Archer Growth will be providing strategic advice, financial support and operational guidance.

Houlton says “We felt Archer Growth was the right partner for us as it has a proven track record of helping Australian businesses drive strategic and successful growth. It has come at the perfect time as we are primed for expansion operationally and trading conditions are favourable, with the service industry doing well despite the relatively subdued retail environment.

“The partnership will specifically allow for further investment in training and development, ensuring LCA therapists, nurses and doctors remain the most experienced and qualified in the industry, a point of difference that will continue to give the business a key competitive advantage,” he says.

LCA is positioned to grow its network to over 50 clinics in 2015 and has expanded from NSW into ACT, QLD, VIC and SA, with the first WA store to open at the end of the year as potential franchisees continue to be attracted by the company’s success.

Houlton says, “The business recognises that partnering with like-minded franchisees is crucial to its ongoing success and the business model has

demonstrated it can deliver tangible returns to its franchisee partners.”

An increased level of strategic advice, financial support and operational guidance is the benefit for LCA, says Houlton.

Investments and acquisitions There is plenty of acquisition in the franchise marketplace away from the private equity model.

The publicly listed Retail Food Group in particular has been in acquisitive mood, adding to its bakery focused brands which include big hitters Michel’s Patisserie, Donut King and Brumby’s, with niche acquisitions.

Both the Crust Gourmet Pizza and Pizza Capers businesses have joined the portfolio; and since these acquisitions there has been a focus on coffee, with the biggest news in the sector the recent announcement of the aim to add Gloria Jean’s Coffees to the group.

This Australian-owned business has been in a state of uncertainty for some time with an earlier proposed purchase

by Singapore firm Global Yellow Pages dissipating some months ago.

RFG CEO Tony Alford described the opportunity to bring the Gloria Jean’s business into the company fold as “compelling” for reasons of network reach and new revenue platforms.

When the deal is finalised an international presence in the US, a number of coffee roasting businesses and an in-home capsule coffee system will be added to the revenue opportunities for the Queensland-based multibrand group.

While expanding a business into new regions can benefit the overall company’s coffers, any logistical and revenue synergies between existing and acquired brands can provide more efficient and cost-conscious processes that benefit franchisees.

Mobile coffee chain Cafe2U is now also in the RFG line-up alongside fellow on-theroad business The Coffee Guy, and the Esquires Coffee chain, and Italian casual dining brand La Porchetta is ready to settle under the group umbrella.

NOV/DEC 2014 | 52 | www.franchisebusiness.com.au

FR0514_000_WAT2

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P

ractical and affordable multi-channel marketing campaigns can help a franchisee’s business. Paola Tanner, director at Fuse Franchise Partners, offers some tips on how a franchise network can stay ahead with message delivery.

The communications landscape is not changing…it has already changed.

Twenty years ago families would crowd around the television with undivided attention to watch their favourite broadcast. Today, people will be watching their favourite reality TV show, while interacting through a text message voting system, engaging in a discussion about it via their smartphone on social media and shopping for the shows’ promoted products online through an augmented reality catalogue.

In order to not only survive but to thrive and cut through to a target audience in today’s highly competitive market place, you cannot rely on a single channel alone. A good franchise marketing manager now executes a successful multichannel strategy.

A multi-channel marketing strategy is simply about using many different platforms to reach potential or existing customers with the same messages.

There are ways to automate this process with the help of a platform that can help manage multiple channels. This way the franchise marketing team can focus on ensuring there are relevant offers and messages available for each channel so that franchisees can execute autonomously.

Here are some examples of how franchisees can get help from franchisors to apply multi-channel marketing techniques.

GO SOCIAL More than 75 percent of Australians are engaged in some form of social media; there are 13.4 million Australian Facebook users, YouTube has 13 million unique audience users, WordPress.com has 6.1 million Australian users, Tumblr 4.6 million and LinkedIn 3.9 million users.

Does your franchisor understand the target market and the social media platforms customers use? Have these platforms been integrated into the marketing mix? Having a good set of guidelines for social media activities really helps franchisees.

GET LOCAL: Does the franchisor make it easy for franchisees to collaborate with other businesses or franchises in their local area with a similar customer base by providing them with ideas, contacts and collateral? Local letterbox advertising campaigns are a proven way to reach your local audience and bring in new

NOV/DEC 2014 | 54 | WWW.FRANCHISEBUSINESS.COM.AU

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What to look for

IN YOUR FRANCHISOR’S

MARKETING STRATEGY customers; your franchisor could supply content specifically designed to fit through the letterbox.

way to get the brand out there in each local community, particularly in a peak promotional time for your business.

COMBINE ONLINE AND OFFLINE:

GET MOBILE:

Will your franchisor combine digital and traditional channels to maximise your reach? For example, you could promote a sale using a local press advertisement combined with local letterbox drop, including a QR code to link to your website or social page to capture basic contact information. The franchisor could send out an email and SMS campaign as a reminder closer to the sale end date, linking everything back to you.

Australia has the second highest smartphone penetration in the world with 7.5 million Australians using the internet via their mobile phone during the day. As a franchisee you will want the tools to include mobile marketing into your multi-channel strategy, whether it’s search or SMS marketing, an app or a mobile optimised website. If you’re not mobile, you are losing customers.

SPONSOR THE LOCAL SCHOOL OR CHARITY EVENT:

Email marketing remains the most effective and profitable way to turn potential customers into customers so it is critical your franchisor provides tthe right tools for this. Does the franchisor offer an intuitive interface that ensures franchisees can manage their own database and have

Does the franchise provide franchisees with the content needed to connect and participate in their local community by sponsoring a local event? This is a great

EMAIL MARKETING:

access to pre-approved email templates?

This empowers you with the flexibility to easily communicate and engage with your customers, while ensuring brand compliance and messaging.

THE BEST FRANCHISORS: ✱ Encourage franchisees to think multichannel, hitting their target market numerous times with the same message ✱ Make it easy for them to access execution tools and consider investing in a multi-channel platform to reduce costs and administration ✱ Try to keep a consistent theme for brand and offer recall ✱ Synchronise marketing channels and adapt content to each channel You can’t just use different channels sporadically and expect results. The best return on investment comes from a synchronised strategy, with consistent messaging and branding.

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6

WayS to mInImISe fRanchISe RISk

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ometimes when a franchisee is unhappy they’ll generate bad publicity for the franchisor to get revenge. However this can lead to devaluing the franchise and adversely affecting the other franchisees in the system. So what happens if you’re one of the other franchisees in the system?

Depending how unhappy the franchisee is, and how much noise they make, the bad publicity may pass quickly and only have a minor impact on the franchise brand.

However, if the bad publicity continues the impacts can be quite detrimental, right across the franchise network.

expressing their frustration with the franchisor.

Also as a group, you may want to investigate positive publicity opportunities to help counteractive any negative publicity.

You may also want to contact the franchisor or franchise head office and request that they undertake mediation with the franchisee or at least try to address the issues the franchisee is concerned about.

from the franchisor or are being heard, and the issue is addressed they may go back to being a positive member of the franchise community.

However if the franchisee has been unhappy for an extended period, or is under serious financial or other stress, it may be that there is nothing the franchisor or other franchisees can say or do, to resolve the issue.

IMPACT OF NEGATIVE PUBLICITY Even if your franchise unit is highly profitable and it comes time to sell, you may find it challenging to sell your franchise if there has been extended bad publicity surrounding the franchise brand.

You may want to investigate positive publicity opportunities to help counteract any negative publicity

If one of the franchisees in your network is generating bad publicity for the brand, you may want to request with the other franchisees in the system, Depending how disgruntled Also if there are a number of for the unhappy franchisee the franchisee is, once they unhappy franchisees in the R 1 an 1 1alternative 4 _ 0 0 0 way _ I NofX P feel R Ethey S S are- getting 1 2a 0response 1 4 - 1 0 system, - 2 0 T 1 when 6 : 1 1 prospective : 4 6 + 1 1 : 0 0 to Ffind

Unique global express freight business Low entry costs

Massive passive residual income No Inventory / Warehousing Minimal employee base

sales.au@inxpress.com NOV/DEC 2014 | 57 | WWW.FRANCHISEBUSINESS.COM.AU

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buyers speak with other franchisees as part of their due diligence of buying a franchise, they may be scared off.

While a change in franchisor may be positive, this may not always be the case and is something franchisees need to consider prior to buying a franchise, particularly as more acquisitions are predicted across the sector in coming years. Is that a risk you’re willing to take?

If this is the case, unfortunately there is little you can do.

RISKS OF FRANCHISING As a franchisee you’re bound by the rules and restrictions of the franchise. You buy into the brand, and the strength of the brand can change over time – that’s just one of the risks of business.

One risk of franchising, which I’ve seen in recent years, is that sometimes franchises don’t evolve as quickly as the market trends, so again your investment could be diminished despite all your hard work.

Another risk is the franchisor may change. For example Retail Food Group recently bought Café2U, La Porchetta and has recently announced Gloria Jeans, adding to a number of franchise acquisitions in recent years.

You need to assess all opportunities, weigh up the pros and cons of each, and seek professional advice before making a decision to invest

TIPS TO HELP MINIMISE FRANCHISING RISKS 1. Be as involved in the franchise as possible – there are often opportunities to participate in a franchisee advisory group, which may allow you to have some input into the direction and/or marketing of the franchise.

2. Follow the system and engage with head office – you’ll have more chance of your suggestions being heard if you’re a good ‘franchise citizen’.

3. Track and measure your business performance to ensure you’re running as effectively and efficiently as possible, and to identify early warning signs the market

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may be beginning to change.

4. Be a good corporate citizen – engage with your local community and always speak positively of your business as you may find a suitable buyer through your network.

5. Operate your business ready to sell – that way when you do need or decide to sell, you’ll be well-prepared and your business will be operating at maximum profitability.

6. Buying into a franchise can accelerate business success due to proven systems and a recognised brand, however being in business (any business) still has its risks, so you need to assess all opportunities, weigh up the pros and cons of each, and seek professional advice before making a decision to invest.

Be aware, that while franchising can mitigate some risks in business there are still risks in franchising.

PROFESSOR LORELLE FRAZER IS THE DIRECTOR OF THE ASIA-PACIFIC CENTRE FOR FRANCHISING EXCELLENCE AT GRIFFITH UNIVERSITY

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AUSTRALIA’S growing appetite for

ASIAN

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ustralians are increasingly interested in international cuisine, and Asian food franchises are hearing them loud and clear.

A number of Australian-owned Asian food brands have emerged in recent years; meanwhile businesses hailing from nations including Malaysia and Thailand are similarly looking to cash in on the trend.

The Restaurants in Australia industry report (August 2014) by IBISWorld, as well as Euromonitor International’s Consumer Foodservice in Australia report (November 2013) highlight that people are broadening their horizons when it comes to food.

The IBISWorld report states: “The industry has benefited from a rising food culture. Consumers are increasingly viewing eating out as a cultural experience. Awareness of fashionable restaurants is strong, with consumers keeping up with new venues via review websites such as Urbanspoon.

“This increased popularity, and the rising prevalence of foodies, has played a significant role in driving demand for fashionable restaurants and new cuisines.

This has also supported a trend towards higher quality gourmet food.”

According to Euromonitor: “A major trend that emerged in 2012 was the diversification of the Australian palate, in a continued willingness for consumers to experiment with new taste sensations and culinary experiences.

“While this echoed a trend which emerged over much of the review period, it continued unabated in 2012 as the average Australian consumer became savvier with regard to food preparation and more exotic international menus.”

Both reports attribute the growing trend in part to reality television shows such as MasterChef and My Restaurant Rules, as well as the fact that international travel is more prevalent than ever.

Overall the restaurant industry is tracking well, and IBISWorld states a number of social trends including busier lifestyles, increased health consciousness and an enhanced interest in quality food are responsible for its growth.

The industry posted an annualised growth of 3.6 percent over the five years through 2014-15, and its forecast to grow at an annualised 2.3 percent over the five years through 2019-20, to reach $13.1 billion.

WOK IN A BOX At South-Australian based business, Wokinabox the focus is on authentic Asian-style dishes that hail from countries across South East Asia.

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BOTTOM: A DISH BY WOK INABOX

People are embracing non-western foods and new cuisines

People have busier healthier lifestyles and a need for nutritious food on-the-go

“We take our inspiration from China to Malaysia and everywhere in between.

Products range from satay chicken, the nation’s favourite, to seasonal specials,” says national marketing manager, Andrew Pearce.

He explains dishes showcase fresh, high quality ingredients and they can be enjoyed either in-store or on-the-go.

“We offer various dining options from fast casual in-store dining to the takeaway convenience of our iconic packaging and online ordering.”

Pearce has noticed high-end Asian fusion restaurants are on the rise in Australia, and predicts they will continue to gain traction.

“As the popularity of Asian food increases over the coming year, so will its share of the market. I feel this could potentially push the big players in the QSR market to offer Asian-style products to meet this new demand,” he adds.

He believes people’s propensity for healthy food in particular is driving the trend. “With the much publicised obesity epidemic hitting Australia, Asian cuisine is a step ahead of the pack – it is a healthier option when compared to other food retailers.”

Wokinabox subsequently plans to focus on further improving the nutritional value of its products in 2015. “Wokinabox is planning to conduct an in-depth review of all ingredients that are used in every product, from salt and sugar content in our sauces, to purchasing quality chicken breast,” says Pearce.

“The end result is clear, and that is to stay ahead of the pack and in turn to put Wokinabox at the forefront of consumers’ minds.”

He explains Wokinabox looks for franchisees that are people-oriented, positive and enthusiastic, and passionate about good food and hospitality.

“Wokinabox franchisees come from a range of backgrounds with diverse knowledge and experience. Previous experience with food and hospitality is not vital – we provide extensive training on the nuts and bolts of running a Wokinabox franchise,” Pearce adds.

BING BOY Bing Boy specialises in Chinese cuisine, namely a form of street food known as 'bings' – traditional thin wheat omelette wraps that can be combined with various different fillings.

“Bings have been enjoyed in China for centuries, but the popular concept is only now catching on in Australia as a healthy and convenient lunch or dinner option on-the-go,” says the brand’s managing director, Ming Ma. “Bings are a unique product that no other retailer in Australia offers, so it’s this point of difference that helps set Bing Boy apart,” he adds.

He recognises Asian food has always been well received by Australians, and predicts the market will continue to grow as people seek healthier options.

“We think the Asian food market in Australia has only seen the tip of the iceberg. The Asian culture continues to be embraced across the country, particularly among young people, so we

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think there’s plenty of upside and look forward to significantly increasing the number of Bing Boy stores across Australia in the months and years to come,” says Ma.

TOP: BING BOY'S SPECIALITY, THE 'BING' BOTTOM: NOODLE DISHES ARE A FOCUS AT RED ROCK NOODLE BAR

“We may be a little biased, but we think street food style is the next big trend in Asian cuisine in Australia.”

There are currently 33 Bing Boy stores in operation across Victoria, Queensland and South Australia with more to come.

“We think there’s enormous potential for Bing Boy to expand our number of stores across Australia, including into new markets which remain untapped,” says Ma. Bing Boy seeks committed, responsible franchisees that are passionate about both the brand and customer service, and he explains the business provides initial training and extensive ongoing support.

“Franchisee training incorporates an e-learning program that focuses on four chapters… and our in-store training includes an experienced store manager training franchisees and their staff in the day-to-day operations of running a Bing Boy store.

“Our support does not cease after the signing of a new store contract, but is always available to franchisees,” adds Ma.

RED ROCK NOODLE BAR Noodle and rice based options, as well as yum cha comprise the menu at Red Rock Noodle Bar, explains managing director, Phil Colburn. “Our dishes are filled with fresh vegetables/meats and mixed with customers’ favourite flavours.

“There’s also a great range of yum cha options such as spring rolls, pork buns and grilled chicken skewers,” he adds.

Colburn believes growth within the sector is a result of two key factors. “Australians are striving for healthy, flavoursome options and given our close ties with Asia it is natural that we have embraced Asian cuisine.

“Australians are also travelling more, and Asia is one of our preferred destinations,” he adds.

He expects the market will continue to prosper, and that convenient Asianstyle menu items in particular could fuel the trend.

“As more and more people embrace Asian food menus will expand to reflect our growing tastes.

“I see expansion in Asian street style food – sides and finger foods that are easier to eat and prepare.”

Colburn is open to change, and plans to update the brand in line with emerging trends.

“Our strategies are to keep the brand and menu fresh, to stay true to our brand and make sure we are always looking at ways to deliver our great 97 percent fat free products to new markets throughout Australia.

“We have some key people working with us to ensure we bring on great franchisees who are passionate about the brand,” he adds.

Both theoretical and hands-on training is the norm at Red Rock, Colburn explains.

“Franchisees receive four weeks of hands-on training in our dedicated training store and two weeks in their new store.

“Our food can be found on the streets of Vietnam and on the humble dining tables of Vietnamese families,” says managing director Bao Hoang.

“There are also monthly visits with continued ongoing training and support, of which business and marketing play an important role. We continue to invest in training tools as they become available,” he adds.

“Our range includes Rolld soldiers a.k.a rice paper rolls (Cuốn), French-Vietnamese baguettes (Bánh Mì), traditional salads (Gỏi), noodle salads (Bún) and the national staple, Phở.”

ROLL’D Fresh Vietnamese cuisine comprises the menu at Melbourne-based business Roll’d, where there is a strong focus on authenticity.

Hoang believes demand for healthy fast food options is on the rise, and explains the Roll’d brand caters to this growing trend.

“I think in any multi-site business there will be a push for more and more options

NOV/DEC 2014 | 64 | WWW.FRANCHISEBUSINESS.COM.AU

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RIGHT: LIGHT AND HEALTHY ASIAN DISHES

BY ROLL'D OPPOSITE PAGE: NOODLE BOX INCLUDES FRESH FOODS IN ITS MEALS

that are healthy, affordable and convenient.

“We believe fast food can still be good food, and see our food as a great option – it is healthy, fresh and affordable and served fast and friendly in a form suitable for dining-in, or it can be conveniently packaged to enjoy on-the-go.”

He recognises the media has played a part in Australians’ willingness to try non-western cuisine. “With all the food and lifestyle shows available, people are becoming more knowledgeable and more adventurous, so there’s room for foods other than the usual burger and sandwich,” Hoang says.

He has witnessed Vietnamese fare gain traction in Australia, and much more than a passing trend, Hoang believes it is here to stay.

“Roll’d and the numerous others now popping up in the market are fast establishing the cuisine as a mainstay in the food scene – eventually I think it will become a staple like Japanese and Chinese.

“Concepts featuring Korean, Malaysian and Indonesian food also have room for development and growth,” he adds.

Roll’d is focused on what Hoang refers to as ‘a people culture’, and the business subsequently seeks franchisees who are great leaders.

“We’re looking for a certain degree of management and business acumen and great interpersonal skills. Essential is a respect and adherence to our group policies and procedures, a positive attitude and drive to deliver exceptional food and dining experiences, and a willingness to be present and work hard,” he explains.

NOODLE BOX Noodle Box CEO, Ian Martin agrees the sector is booming, and believes it’s being driven in part by Australians’ openess to new foods.

“The Asian food market, after decades of being viewed largely as Chinese take-away regardless of the province the food hailed from, has exploded.

“Mainstream Australia is now open to the subtleties and complexities of different flavours as the variety of tastes from Malaysia, Thailand and Vietnam become more widely available. This trend will continue and provides a significant opportunity for further growth,” he adds.

Looking to the future, Martin predicts people’s penchant for Asian cuisine will develop even further. “Australia is only just beginning to experience the many exciting taste profiles that Asia has to offer.

“As Australian palates continue to be exposed to these and as tastes mature

we will see many more traditional dishes from countries who’s cuisine is currently readily available in Australia together with dishes from countries that remain relatively under represented,” he explains.

As its name suggests, Noodle Box’s focus is around noodle-based dishes such as pad Thai, satay chicken and BBQ sesame pork, however it’s also expanding its offering to include a broader range of products – a reflection of people’s changing tastes.

“Noodle Box has a clear strategy of providing authentic, high quality, fresh and healthy noodle based meals served by well trained and friendly team members in an inviting and relaxed restaurant environment,” says Martin.

“We continue to evolve our menu offering to ensure our guests are provided with a choice of meal options from our Classics and Favourites ranges to our limited time speciality offers and recently introduced yum cha range.”

Martin explains that there is an emphasis on ensuring each and every one of the company’s customers enjoy the 'Noodle Box Experience.'

As such the brand provides franchisees with extensive training and business support tools. “Noodle Box provides both initial and ongoing training via multiple platforms, whether it be in a restaurant,

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at our dedicated training facility or our customised online training and communications platform – Noodle U.

“Our restaurants aren’t just about Thai food, they are cool, hip places to go and we select really classy locations – they have to have that ‘wow’ factor."

“Most importantly consistent and ongoing business support is provided by our team of business support managers located within each region of operation,” he says.

He stresses that food-wise, the menu takes Thai cuisine to a whole new level. “We do things like lobster, specially marinated lamb and slow roasted lamb shank with different Thai ingredients.

INTEREST FROM OVERSEAS The increasing popularity of Asian cuisine in Australia has prompted a number of Asian food franchises based overseas to explore the local market.

“We serve classical kinds of dishes in a much more modern way.”

MANGO TREE

Mango Tree employs a three-tiered approach, which includes its flagship brand, as well as bistro and kitchen concepts.

Established in 1994 by Coco Holding International, global restaurant chain Mango Tree began its international expansion in London in 2001, and it also operates in destinations such as Tokyo, Dubai, Manila, Hong Kong and Jakarta.

The company has identified five locations for Mango Tree flagships within Australia.

“We are looking at Sydney, Melbourne and Brisbane, we’ve just heard about a new casino going in Cairns, and then there’s also Perth.

Managing director Trevor MacKenzie, who recently visited Australia to scope out the potential here, says Mango Tree is different FR 0 traditional 7 1 4 _ 0 Thai 0 0 _restaurant.

DRB 1 2 from the

“We also want to roll-out between three and four or however many each city can sustain, of the bistro or kitchen concepts,” 0MacKenzie 1 4 - 0 6 says.

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Mango Tree is actively seeking partners in Australia, and the first site is expected to open in the near future.

“Anytime that we go to a country and start exploring it’s anywhere from 12 to 18 months that we actually open the doors,” he said.

Location-wise, he believes Sydney is the best place to start. “It’s important that we find that ‘wow’ location, which I think is Barangaroo.”

THE CHICKEN RICE SHOP Malaysian-based food business, The Chicken Rice Shop specialises in Hainanese

chicken – a steamed chicken that is served with rice.

“We also have barbeque chicken, roast chicken and soy chicken. All of the products are baked or roasted so it is a much healthier option than the fried chicken that you get elsewhere,” says the company’s international business development head of international franchising, Richard Backstrom.

“We also have items on our menu such as Nyonya Pai Tee, which is a Malaysian appetiser, and Rojak, a vegetable dish served with rice.”

The Chicken Rice Shop will initially TOP: THAI INSPIRED DISHES BY MANGO TREE LEFT: THE CHICKEN RICE SHOP SERVES UP MALAYSIAN STYLE CHICKEN DISHES

focus on opening stores in Melbourne with the eventual aim of establishing a national presence.

“We are looking for master franchisees – people who can open between eight and 10 stores over a 10 year period.

“We will be recruiting partners by state, unless we meet someone who wants to specifically look at Melbourne for example, and only grow Melbourne. We will consider that and do city by city however we do prefer state by state,” Backstrom explains.

There aren’t plans to open an outlet on every corner – The Chicken Rice Shop strives to set its franchisees achievable expansion goals.

“We are looking at a minimum of 10 stores over the next 10 years, so that’s one store a year. We don’t have a huge growth plan because we are new to the market here in Australia,” he says.

“We don’t want to over commit to our franchisees too much, and we figure one store per year would be attainable.”

The Chicken Rice Shop is a family-owned company, and devotes much of its time to recruiting the right people.

“The system of us finding the right match takes time – there are a lot of interviews and there is a lot of talking and visiting," Backstrom adds.

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The rise of the

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he vitamins and supplements industry is faring well thanks to a more health conscious society.

Australians’ increased desire to lead healthy lifestyles has influenced the success of a number of industries, and leading the way is the vitamins and supplements sector.

According to Euromonitor International’s Vitamins and Dietary Supplements in Australia (April 2014) report the sector grew by 19 percent to reach $2 billion in 2013, and in the same year the vitamins market specifically grew by five percent in current retail value terms to reach $551 million.

Looking to the future, the market research company predicts vitamins and supplements will grow at a constant value CAGR of seven percent over the forecast period (2013-2018).

Euromonitor identifies the industry is tracking well due to the prevalence of low nutrient diets, as well as increased health consciousness.

“Australian consumers continue to struggle to acquire the recommended daily intake of nutrients through diet alone and are increasingly turning to supplements.

“An increased focus on health and wellness across the community over the forecast period, driven by the media and government, will be the main driver of demand of complementary medicines,” the report reads.

IBISWorld’s Vitamin and Supplements Stores in Australia report (July 2014), which focuses on the sale of vitamins and supplements reveals industry revenue

has improved post GFC. Uncertain economic times saw Australians opt for generic vitamin and suppl ments products from retailers including supermarkets, however an increase in consumer confidence since 2010-11 has seen them return to specialist vitamin and supplements stores.

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Wisewould

Wisewould Mahony Mahony Lawyers Lawyers Lawyers in love...... with Franchising

The report states: “As the Australian economy has strengthened, consumers have allocated more of their spending towards discretionary goods, largely due to the rise of discretionary income over the past five years.”

Overall industry growth in the five years through 2014-15 is expected to grow at an annualised 4.1 percent to total $471.2 million, and the trend is set to continue – in the five years through 2019-20 revenue is forecast to grow 2.8 percent to total $540.2 million.

Aside from improved consumer confidence, the IBISWorld report identifies a range of other factors contributing to the industry’s growth, and it seems health consciousness and convenience are at the forefront.

HEALTH CONSCIOUSNESS People are expected to exercise more in 2014-15 than they did five years ago, which means they will be more likely to seek vitamins and supplements to support their exercise regimes.

The importance of eating a balanced diet is also at the forefront, and so people seek vitamins and supplements to increase their intake of nutrients.

CONVENIENCE Vitamin and supplement stores are convenient for consumers – they typically stock a large range of not only vitamins and supplements, but health foods.

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NOV/DEC 2014 | 71 | WWW.FRANCHISEBUSINESS.COM.AU

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Products and services segmentation

8%

Health and wellbeing

18%

Key trend

Major market segmentation

Traditional community pharmacies continue under strain due to the rise of large discount pharmacies

Aged 55+

15% Aged 15-34

Sport nutrition

Aged 35-54

30%

55%

25%

Fitness and weight-loss

What’s driving growth?

Health consciousness A rise in real household discretionary income - more money to spend on quality vitamins and supplements rather than generic supermarket/chemist options Convenience – these stores tend to have an extensive selection, and specialists on hand to provide advice

49%

Health foods

Market share Top four players in the industry account for less than 40% of market share

Moving forward, it predicts vitamin and supplements stores will employ more in-store health professionals such as nutritionists, dieticians and fitness trainers to meet customer demand.

#1 SUCCESS FACTOR According to the report, the key factor contributing to business success within the sector is around the ability to franchise operations.

They also employ trained staff who provide specialist advice to help customers achieve their health and fitness goals.

IBISWorld identifies this service in particular as a main competitive advantage for vitamin and supplement stores – while supermarkets and grocery stores offer low-cost generic products, they do not deliver tailored advice to customers.

ABOVE: THE CHEMIST CHAIN STOCKS AN EXTENSIVE RANGE OF PRODUCTS

“The ability to franchise industry operations is crucial for independent stores to benefit off the established trading names of major vitamin and supplement stores,” it reads.

Franchised brands that play in the space include: ✱ Mass Nutrition ✱ Muscle Beach ✱ GNC Live Well ✱ The Natural Way The aforementioned Euromonitor report highlights another key trend within vitamins/ NOV/DEC 2014 | 72 | WWW.FRANCHISEBUSINESS.COM.AU

Top four

40%

SOURCE: IBISWORLD’S VITAMIN AND SUPPLEMENTS STORES IN AUSTRALIA REPORT (JULY 2014) AND EUROMONITOR INTERNATIONAL’S VITAMINS AND DIETARY SUPPLEMENTS IN AUSTRALIA (APRIL 2014)

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supplements sector is the rise of discount pharmacies.

It states: “Traditional community pharmacies continue to be put under strain as more consumers shop at large discount pharmacies.

“These stores are able to offer greater discounts through economies of scale and have been the main cause for growth in the pharmacy sector.”

The trend is in play at chemist franchise Good Price Pharmacy Warehouse, which stocks an extensive range of vitamins and supplements.

“We have one of the largest ranges of vitamins and nutritional supplements available in this channel,” says founder and director, Anthony Yap. “As Good Price Pharmacy Warehouse is a large format retailer we can allocate a larger space to this category hence being able to carry a more extensive range of brands and products.”

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EACH GOOD PRICE STORE HAS TRAINED PROFESSIONALS ON HAND TO ASSIST CUSTOMERS

IBISWorld recognises vitamin and supplement stores that employ specialist staff have a competitive advantage over those that do not, an approach Yap has employed within his pharmacy business.

“We stock an extensive range of practitioner vitamins which our naturopaths and pharmacist consult and match according to the needs of our customers, which is a unique offer for our style of business,” he explains.

“We have trained professio als in each store to ensure that customers receive the very best advice and very best price every time.”

In an effort to ensure customers’ needs are met, Good Price Pharmacy Warehouse has developed its own training academy.

“The academy dedicates modules for training our natu opaths, vitamin consultants and pharmacy assistants on vitamins, supplements, weight loss and sports nutrition.

“We also work very closely with all the major brands to utilise their in-house trainers and collateral,” he explains.

Yap says there is a lot of innovation in the category, and Good Price Pharmacy Warehouse is constantly updating its offering so that customers have access to the latest products.

“We see a lot of product deve opment changes to do with combination doses and varying strengths. Since our inception over 10 years ago the range of vitamin and nutritional suppl ments would have almost doubled in size,” he adds.

Yap attributes the industry’s growth in part to people’s changing attitudes towards natural medicine.

“The customer demand, expectation and culture around natural medicine is changing in Australia and across the world.

“In recent years people have placed a greater emphasis on health and nutrition which has really had a major impact on this sector. We recently conducted research that revealed 50 percent of people surveyed believed consum tion of vitamin and mineral supplements was enough to maintain a healthy lifestyle,” he explains.

Yap is confident the sector will continue to grow, and sees Australians’ increasing

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awareness of the importance of health and nutrition as the key driver.

“We’ve seen the category expand into new areas over the past few years including moving into products such as super foods, whole foods and health foods which haven’t been traditionally available within a pharmacy.

“By introducing products such as super foods into our stores we have been able to offer customers a well-rounded approach to help them live a healthy life,” he explains.

At the end of the day, Good Price Pharmacy Warehouse will change its offering in line with customer demand.

“We pride ourselves on being able to adapt quickly to changes within all areas of health and beauty. It’s crucial to have the products available that customers are seeking and that are being supported with national advertising campaigns.

“Last year we rolled out super food stands across our network of stores which we are now looking to expand into a destination in store in response to the changing category," Yap says.

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DELIVERING a net profit

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Y

ou’ve surfed the net, researched the product, purchased the merchandise…now what? Despite the prevalence of all things digital, when it comes to delivery nothing yet has replaced the old-fashioned task of getting an item from one place to another. Whether by courier or by post, a package has to be moved to its destination to complete the whole transaction.

And that’s good news for those in the courier and logistics business, as IbisWorld report Courier Pick-up and Delivery Services in Australia November 2013 identifies.

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This industry has typically been a business to business arena but the onset of online retail and its burgeoning delivery demands is broadening the service.

According to IbisWorld, Australian online spending increased at a compound annual rate of 26 percent in the five years to 2013 and online is predicted to support the sector’s expansion through to 2018-19.

“Overall industry revenue is expected to increase at a compound annual rate of 3.5 percent to reach $8.2 billion in 2018-19,” the report reads.

External influences on this sector include B2B services dependent on communication and information, demand from general warehousing and cold storage, the motor vehicle price index, household consumption expenditure and demand from online shopping.

According to the report, “Many industry players have moved to fill this need, heightening the level of competition within the industry as new entrants and competitive players have sought to cater to the emerging demand.”

Australian retailers have been slow to respond to the online trend but the overseas shopping trend has more than made up for this when it comes to globalised parcel delivery.

Now the home-grown retailers have stepped up.

“For online retailers, the industry is the crucial last step in the sale process, with online stores relying on couriers to deliver purchases to customers.

The goods sent by these markets are often small in size but high value, introducing a new set of service requirements for the industry to fulfil.

“While the industry has faced strong competition from Australia Post in the parcel market, it has still benefited

SPOTLIGHT on FASTWAY “We identified industry segments where we could provide a difference and do a really good job, and then went and chased specific customers where we felt there was a great fit between their business and the service that we could provide,” says Australian CEO Richard Thame.

“Over the last 12 months we’ve achieved double digit sales and profit growth by partnering with online retailers to offer innovative solutions to help these businesses save money and grow.”

Thame believes Fastway is in a unique position to capitalise on the growth of online shopping as a result of its franchise structure and technologies.

There’s also an opportunity for growth as independent businesses with their own online presence increasingly look for a viable low cost alternative to traditional post options, he says.

“Our integration with online retail shopping carts and our innovative track and trace applications will be key driving factors over the next five years.

A great example of this is our recent partnership with eBay.” Earlier this year the company partnered with eBay to provide courier franchisees with an online portal that allows them to track customer information and delivery performance.

There are obstacles of course, but Thame prefers to see them as opportunities. One of these is the chance to transform the consumer’s perception of the courier sector through the development of tailored services and new technologies.

He cites Parcel Connect as a recent example of this: a new service that allows consumers to send, collect and return parcels from local businesses such as newsagencies, petrol stations and convenience stores that trade extended hours.

Over the next five years Thame expects the dynamic and growing courier industry to remain highly competitive. “At Fastway, we continue to be one step ahead of our competitors through our unique franchise system and innovative technologies and services. There’s a lot of talk about market disruption and there will always be new players in the industry, however the growing B2C market is demanding more.

“The barriers to entry for parcel delivery may appear low, yet to provide the services which buyers and senders require, the barriers are high. As market trends develop, we’re committed to adapting and tailoring our services to meet the needs of those consumers."

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New players in the courier business have come from existing operators in parallel transport industries, and these firms have added IT and supply chain capabilities that have boosted profitability

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Customers use the internet to organise/track parcel delivery

To grow to a large interstate or international business, good freight forwarding skills or access to international transport networks are required

Collecting and delivering of parcels

from the rising demand for parcel delivery, with depotto-point delivery the fastest growing industry service.”

Developing delivery networks remains one of the biggest challenges. “Australia Post has a mandate to provide letter services to even remote Australia and has the largest retail network in Australia,” the report reads.

What stands in the way of the courier business expansion is the postal service, which also has a

subsidiary, Star Track Express.

As competition hot ups, the ability for courier firms to deliver door-to-door will be favourable.

Innovation in customer interaction, and increasing the size of the scale of operations will help the industry be more competitive with Australia Post, the report suggests.

IbisWorld is tipping greater competition from the postal giant in the parcel market but relying on there being no other significant changes in the

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InFOgRAPHIC: MATT nORRIs

Customers drop off packages at retail service centres

organisation’s regulations for its five-year forecast. If there is any deregulation of the postal service, however, it is likely to benefit the courier trade.

New players in the courier business have come from existing operators in parallel transport industries, and these firms have added IT and supply chain capabilities that have boosted profitability.

This is an industry with low barriers to entry but considerable technological investment is

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required to keep a service in line with client expectations through the use of automated systems.

“To grow to a large interstate or international business, good freight forwarding skills or access to international transport networks are required,” the report suggests.

There is a low level of globalisation but this is increasing.

Just under 12 percent of the market share is held by two key players: DHL and Toll Holdings. The remaining 88.2 percent is divided between the two major supermarket chains offering increased online and delivery options across their retail portfolios, the overseas companies United Parcel Services, TNT, and Federal Express, the wholly-owned Australia Post subsidiary Star Track Express, franchised chains and indeF R 1 businesses.

1 1 4 _ 0 0 0 _ HEA pendent

FRAnCHIsE PlAyERs In THIs sECTOR InCludE: Australia Post [retail] Couriers Please [metropolitan express parcel delivery] Fastway Couriers [hub and spoke system for domestic parcel delivery, electronic freight] InXpress [international and domestic express services, freight services, import express, dangerous goods] Mailplus [mail collection and delivery, banking services, interoffice document exchanges] Pack & Send [logistics solutions, excess baggage, unpacked and fragile goods, parcels and freight] Star Couriers [hub and spoke non-express parcel distribu1 2 0 1 4 - 1 0 - 2 7 T1 5 : 0 6 : 2 1 + 1 1 : 0 0 tion]

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THE PAMPERED POOCH [SOURCE:EUROMONITOR PET CARE IN AUSTRALIA, JULY 2014; IBISWORLD ONLINE PET FOOD AND PET SUPPLY SALES IN AUSTRALIA INDUSTRY REPORT NOVEMBER 2013] ILLUSTRATION: MATT NORRIS

F

orget the spoilt child, today’s indulgent customer is spending on their pet: it could be grooming, dog walking, daycare or premium items purchased online.

The growing focus on digital access is creating an opportunity for specialty retailers to grow market share if they are developing an online trade.

While the trend is pointing towards customers happy to pay premium prices for more upmarket items and services for their pets, it is the reverse for the basics. Competition here is price led and the challenge for any operator is that pet food and supplies are increasingly purchased alongside groceries.

Anyone in this sector needs to build brand recognition.

So what will it take? Extensive stock levels, logistics plans, marketing budgets and user friendly websites. The differentiation has to be on product quality, not price.

Success factors: speedy adoption of new technology, superior after-sales service, stock control, loyal customer base Who’s in the retail market? This is predominantly big box retailing: Wesfarmers has a 9.4 percent market share including Coles and accessories through Bunnings,

Target, KMart and Officeworks; Woolworths has an 8.5 percent market share. Other retailers include Petbarn, which is part of the Greencross pet care specialty retail group; the RSPCA superstore World for Pets; and the online delivery business Pet Circle.

When it comes to franchised chains, there are several retail systems operating online: the family owned and operated Petstock business, which also has more than 100 bricks and mortar stores, and Pet Goods Direct, which is affiliated with Pets Paradise stores. There’s also a national buying group of locally owned independent pet stores across Australia, Just for Pets.

Some businesses are honing in on the grooming and premium products trend, such as Dogue, a retail boutique and spa brand that has recently started franchising.

Franchise brands have been involved in the petcare arena for some time on a more modest scale with mobile business models particularly popular. Dogwashing, dog walking and grooming are well recognised services.

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WHAT ARE THE TRENDS?

Cat ownership is increasing

A trend for humanisation and premium products and services for smaller pets

dog ownership is declining

Grooming and daycare for pets looks likely to become mainstream

NOV/DEC 2014 | 85 | www.franchisebusiness.com.au

An emphasis on health and wellness

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Re-imagining

TRAVEL O

nline discount travel company BYOjet has expanded beyond the virtual realm, opening up four bricks-andmortar kiosks in recent months.

The company has two additional fully-fledged walk-in stores; however the focus is firmly on expanding the kiosk model, as well as recruiting franchisees to head them up.

chief marketing officer, Maria Kirkpatrick.

around a book-your-own model with a manned kiosk, so there is an agent on site that can assist with the booking process and also with any travel enquiries – customers can grab a brochure and have that sit down experience if they choose to,” she says.

“It meant we had to find a way to keep the overheads and staffing costs down in order to keep revenue up."

The existing stores are company-owned, and the plan is to franchise now that the model is proven.

“We’ve found there is still room in the market for that face-to-face contact – people really want the discount offering but they don’t want to sacrifice on service," says

BYOjet opened its first kiosk in Chadstone, Melbourne in May, and it’s since rolled out another three in Queensland.

“We wanted to make sure that the kiosks were a viable option and that they could be profitable. Now that we know they are, we are franchising all of the existing kiosks.

“Essentially

they

operate

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“We can open in essentially any shopping centre around Australia, and we’d like to have at least 20 kiosks in 12 months, then sky is the limit really,” says Kirkpatrick.

Before it decided to franchise, BYOjet opted to join forces with Helloworld, which includes franchised travel brands such as Harvey World Travel and Jetset Travel.

THE HELLOWORLD PARTNERSHIP

“We are experts in travel technology; we don’t pretend to be experts in something we are not so when we looked at

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BYOJET IS LOOKING TO EXPAND ITS KIOSK MODEL

franchising we went straight to who we thought were the big guys – Helloworld has over 1200 franchisees,” says Kirkpatrick.

She explains BYOjet is an associated member of Helloworld, however it is also independent in its own right.

“We license the software and essentially it is us that manages the technology – we hold onto the Helloworld brand for customer security because obviously we are very new to the market and

Helloworld holds a lot of weight with customers.

necessarily need a background in travel.

“It’s also about having access to their suppliers, agreements and networking capabilities.

They’ve really come on board and supported us,” she adds.

“I have hired staff for all of our stores with a wide range of skill sets, and we’ve found that the most successful managers are people who are passionate about travel and have that drive to succeed – they are excited about something new, and that’s contagious,” she says.

THE IDEAL FRANCHISEE According to Kirkpatrick, as of July 1 it is no longer a requirement that people possess a travel agency licence in order to own a travel agency, which means franchisees don’t

“Essentially it is about having a very basic business understanding, because we provide a great deal of training and ongoing support.”

BUDGET PRICES, EXTENSIVE RANGE Kirkpatrick says BYOjet is very price competitive, and it strives to provide customers with the largest selection of travel options available.

“We are very much discount, we actually bring our online prices into the retail market which is essentially why we want to stick with the kiosk model – there are lower rental costs and only one staff member is needed for up to six customers.”

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cruises (an arm of the business the company has recently launched), travel insurance and ‘tours and attractions,’ which includes everything from a transfer to the purchase of a Disneyworld ticket.

“We can supply just about every airline on the planet through our website, so customers are getting choice – it’s not about what the agency is making the most commission on as far as the supplier goes, its full choice and control back to the customer,” Kirkpatrick adds.

THE TECHNOLOGY She says the company’s technology is purpose built for the travel agency, and that franchisees have access to a wealth of front and back-end resources.

“They not only receive the front-end search engines and all of the marketing and training support, they also get the back-end admin.

“This means franchisees have full control to mark up or down their flights, booking fees and ticketing fees, so we can be quite specific to each individual area that the kiosks are located.”

FR0914_000_YOUNG

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A family e f FAVOURITE

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C

hris Caldwell believes the local chicken shop can offer something more than the traditional menu and he has backed himself with the Melbourne launch of Love Pollo. The former Bakers Delight general manager has established two outlets and is now poised to franchise the business.

WHY CHICKEN?

a high proportion of the stores.

“I’ve always been a massive eater of chicken. My Mum always used to cook a roast chicken for the family every Sunday. I have fond memories of those times – Love Pollo you could say is the modern version of Mum’s roast.

“There are some good stores out there, and 95 percent make good chicken or do good burgers, but don’t have a contemporary menu and environment.”

“That combined with my time spent looking at bakeries in retail strips and I was just amazed how many chicken shops there are, about 9000, F how R 1 1poor 1 4 standards _ 0 0 0 _ are B EinG and

A FRESH LOOK FOR THE STORES

Love Pollo was created to meet the more discerning needs of consumers, he says.

That means catering for different tastes and menu requirements – plenty of salads for the healthy eater, and 1 2 strict 0 1 4 processes - 1 0 - 2 and 9 T1 5 : 2 4 : 4 1 + 1 1 : 0 0 affirming

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FAR RIGHT: THE BRAND'S OFFERING INCLUDES FRESH SALADS RIGHT: LOVE POLLO FOUNDER, CHRIS CALDWELL BELOW,: THE INTERIOR AND EXTERIOR OF A LOVE POLLO STORE

A constant dialogue with franchisees is the lynchpin of good business.

It’s us together growing the brand and the business

gaining credibility through membership of the Coeliac Society in Victoria, for instance.

Love Pollo is recognised as a premium healthy, free-range, roam free, chemical free, gluten free, halal certified chicken.

And all chickens are rotisserie roasted fresh that day.

The premium products puts the menu pricing at a fraction less than some more contemporary high end franchise food outlets, but more expensive than the average chicken shop, he says.

Love Pollo's store design harks back to the idea of farmyard chickens with a barn feel, big doors and a nice bright light.

“The environment is something we’ve designed to be more upmarket, making it more conducive to dine in.”

For now the sites are firmly suburban strips: Camberwell is 120 sq m including the back of house, Brighton is 90 sq m.

Caldwell believes there are plenty of opportunities on strip sites and there’s no need to

risk locating in shopping centres just yet. “Our stores are strategically positioned in high foot-traffic locations tapping into lunchtime stripshop trade and in the vicinity of train stations and new condensed housing development, for convenient pick-up on the way home," he says.

Both stores are heavily engaged in local junior sport clubs.

“It’s a quick way to make kids and families aware of the brand,” he adds. Sponsorship of local charities, letterbox drops and promotions through school newsletters are also helping to boost brand awareness.

“We’ve got quite a bit of interest in franchising. One staff member is opening a franchise before Christmas,” he says. In 2015 he hopes to take the brand to Sydney and to have 20 stores within four years.

“What I learned at Bakers Delight was that having a very constant dialogue with franchisees is the lynchpin of good business. It’s us together growing the brand and the business.”

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To find out more please download our Franchise Information Pack from wildcardsandgifts.com/franchising You will not be disappointed...

“When we commenced working with Wild neither of us had any retail experience.

The support and advice from management and other franchisees is a major reason for the success of our business” Owners, Wild Cards & Gifts Toowoomba

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Riding the

HEALTH WAVE T

hey’ve been franchising just six months, however the team at Nutrition Station have plans to leverage the franchise model to rapidly grow the brand.

Established in 2012, the healthy food and beverage franchise has 13 stores situated across Sydney’s north, west and south, as well as Queensland – namely Brisbane and the Gold Coast.

“We have another 12 shops locked in and are looking to be at 150 shops by the end of 2015, so we’ve got quite a rapid growth strategy,” says CEO James McGovern.

He says the figure will include both company-owned and franchised stores.

“We’ll put company-owned stores in key locations, for example we’ll open two in Western Australia by the end of the year.”

EQUIPPED FOR CHANGE While 13 to 150 seems like a significant jump in a short period, McGovern says the

business has been built with large-scale growth in mind.

“We’ve hired our operations and marketing teams with scope in mind – I’ve got a head office team of 14 staff, which for the amount of shops I have is quite large, however its been built with the framework to grow over the next 12 months.

“Support, transparency and good communication are all incredibly important, and you can’t do that if you’re under resourced with your people.”

He is confident the business will reach its expansion goal, and says people are already demonstrating immense interest in the brand.

“We are in a boom market – health and

fitness at the moment is very big. We take around 50 enquiries a week through the website as it is.

“In terms of leads, we get plenty, we’ve got a good product, we’ve got good systems in place so I know we can sell stores and we’ll get the right people in the business,” he adds.

WHAT’S ON THE MENU? Healthy food and beverages that don’t compromise on taste are the focus at Nutrition Station, and all menu items are designed by nutritionist Moodi Dennaoui, who is also a partner in the company.

“He does the meal plans for a lot of elite athletes as well as sporting teams, and

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Dream Doors – Don’t let anyone steal your dream…

Hi, my name is Derek Lilly and I am the worldwide co-founder of Dream Doors, an internationally proven franchise system with a 14 year history of success. I am now expanding into Australia via a network of Franchisees and I am looking for Marketers, Business Innovators, Go-Getters and Entrepreneurs to develop the brand in Australia with me. Dream Doors is different from other kitchen, bathroom, and bedroom renovation companies. By simply replacing the doors, drawer fronts, and bench tops, we save the customers $1,000’s on their own renovation and therein is the secret to our international success.

History of success: • 50 Franchises in the UK where I co-founded the business • In 2007 I moved to New Zealand to start the Dream Doors business • I have an extremely happy network of Franchisees in NZ and Australia (Just ask them) • I am now sharing my success and winning formula throughout Australia • Australian Master Franchise sold • Queensland Regional Master sold • 3 x Australian Franchise areas sold (South Adelaide, Northern Beaches Sydney and Dandenong/ North Casey Melbourne) • The question “does this business work or not” is no longer open for debate

What does it cost: • Territory Franchise areas available with initial costs: • From $65,000 + GST + operating capital • I look forward to sharing more of my story with you...

Contact details Derek Lilly (Managing Director) Dream Doors Australia Pty Ltd Address: Suite 3, 203-205 Henley Beach Rd, Torrensville, SA 5031, Australia Tel: 1-800-373-263 Email: del@dreamdoors.com.au

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FAR LEFT: A FRUIT BASED SMOOTHIE LEFT: THE BRAND'S FAMOUS PROTEIN PANCAKES

he helped Hugh Jackman prepare for the Wolverine,” says McGovern.

“This gives us integrity, there is a face to our brand in terms of where our products come from, which none of our competitors really have.”

He explains the menu includes healthy versions of more indulgent food items.

“We do things like our protein pancakes – people love pancakes but if you’re on a low carbohydrate, low calorie diet you can’t normally eat them so we make them healthy and bring them to the mainstream.

“We are very conscious of where we sit in the market – our products are certified and ticked off by our nutritionist however they also need to taste good – we create products that people want.”

SOMETHING FOR EVERYONE

“They’ve got lot of members going through the doors daily and a lot of capital behind them so we know our leases are secure when we go into those gyms. That’s our lowest entry model, it costs $100,000 plus GST,” he adds.

DO YOU HAVE WHAT IT TAKES? While a business background is highly regarded, Nutrition Station recruits its franchisees predominantly around personality traits.

DUE DILIGENCE: ADVICE FOR FRANCHISEES McGovern’s franchising experience is extensive, and he has a wealth of due diligence advice to share – he was involved with the Red Rooster brand as franchisee for five years, and he’s also worked as Harvey Norman’s national franchise manager.

“I’ve been on both ends, I’ve been a franchisee and a franchisor and I know what a franchisee wants,” he says.

“There is an initial application, and if an individual looks like they are passionate about health and they are a team player then we move onto the next stage,” says McGovern.

He advises people speak with as many franchisees as they can – in fact if he had his time again he would call every franchisee listed on the disclosure document.

“Obviously finances are important too, we need to make sure that they have enough capital behind them.”

“Think about what you want to ask them – things like the support that’s offered, the return on investment (ROI) and the struggles they faced when they first entered the business.

Nutrition Station offers franchisees three different models – a new cafe option, a kiosk and a pop-up.

Its also important franchisees understand they will need to work in their business, at least in the early stages of operation.

“Our cafes offer a full hot menu comprising healthy cafe-style options and a seating area – they cost $250,000 plus GST, and then we’ve got our kiosks, which are in shopping centres and cost $175,000 plus GST,” says McGovern.

“We definitely prefer a hands-on franchisee, but in saying that a lot of our existing franchisees are already going multi-site and with that comes time out of the shop.

“Try to get as much information around the challenges you’ll face out of current franchisees. Not only does it help you assess whether you want to purchase that franchise, it gives you a heads up as to what to look out for if you do choose to purchase the franchise,” McGovern adds.

“In these instances I would still rather franchisees start off in their first shop hands-on to develop a grassroots understanding of the business,” he explains.

He says opt for a brand’s top performers, as well as their less successful ones. “If you speak to enough people you start to realise what makes a good franchisee – it helps you either way.”

Nutrition Station has partnered with Fitness First and Good Life to introduce its most affordable option – pop-up outlets within the gyms.

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Want to be in the drivers seat? …err easy chair?

Do you want to really take control? The Leather Doctor franchise is Australia’s largest mobile leather care company and part of a larger group that specialise in mobile furniture repair.

Leather Doctors have been the respected name in mobile leather repair for around 20 years. Established throughout Australia and now overseas we have a proven system mostly servicing the furniture market which is a huge, $7Billion p.a. (IBISWorld’s Furniture

• 50 Franchisees in Australia, 5 in Dubai • 20 year history • Contracts with Australia’s leading furniture retailers • Proven system ensure success Give us a call and we can help you take the drivers seat in your future… or in our case the easy chair.

Retailing market research 2012)

The Leather Doctor offers a proven system that ensures success. We have a national customer base of major furniture retailers and manufacturers as well as a well recognised brand within the private market.

This is backed up by the fact that our growth has continued each year despite economic conditions.

1300 453 284 Email: info@theleatherdoctor.net.au

www.myleatherdoctor.com.au

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BELIEVE IN THE

BRAND AND WORK HARD: Stratton franchisee James De Ruiter

J

ames De Ruiter was employed as a finance broker at Stratton when he made the decision to join the brand as a franchisee.

“I loved working for the company and really believed in the brand, its culture and values," he explains.

“I knew from the start that they had a good thing going and I wanted to become a part of the company’s journey to success, so I decided to buy my own franchise."

James adds a number of other factors prompted the investment. “The company has an excellent reputation in the market and offers its franchisees exclusive access to a complete range of premium, high-quality finance products.

When consumers know and trust a brand, it’s less challenging to sell the product.”

KNOW YOUR BRAND James advises potential franchisees get to know the brand they are interested in prior to investing. "They need to make sure they understand the brand and agree with the culture of the business before they sign the dotted line,” he says.

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While James found this process less arduous given his prior experience with the brand he was met by surprises, albeit positive ones.

“I was pleasantly surprised at how easily accessible the team at Stratton headquarters are and the amount of support and training they provide.

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“Having them in my corner from the beginning of my franchise journey has really helped make Stratton Norwest a huge success," he explains.

James also advises potential franchisees:

Employing the right people and ensuring they share the same business goals and vision is really important

✱ Believe and trust in the brand and work hard to grow the business ✱ Stick with it – it is challenging at first but as time goes on, franchisees will reap the benefits of looking after their clients.

BUILDING A POSITIVE WORKPLACE James says the key challenge he’s faced in the business is around workplace culture, which he values highly.

F R0 9 1 3 _ 0 8 5 _ RED

is really important to making a franchise successful.”

James explains he encourages employees to adopt a proactive approach to business.

“Employing the right people “I try and lead by example. I’ve and ensuring they share the always worked exceptionally 1business 2 0 1 goals 3 - 0and 8 - vision 1 3 T 1 hard, 0 : 2 especially 7 : 0 7 + when 1 0 : it0comes 0 same

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to getting applications in, and it’s this type of work ethic I encourage my team to adopt.

“It’s so easy to sit in an office and wait for leads to be handed to you, but I believe that if you want to grow the franchise, you need to work hard. I

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always look for new leads and prospects, and this is what I’d expect from my team as well.”

THE FRANCHISEE/ FRANCHISOR RELATIONSHIP James says he’s got a great relationship with Stratton, and explains the business offers excellent training and ongoing support.

“I am fortunate to have a franchisor that’s always accessible and great to work with.

“Stratton has comprehensive training and ongoing support in place, as well as reliable business systems and processes, which means I can spend most of my time building my customer base and ensuring all of my clients are well looked after.

“If I ever have an IT or admin F R0 1 4 always _ 0 0 0 _ UNI issue I 1can contact

someone at Stratton at any time of day. When you’re running a business they are the small but important things you don’t want to spend too much time worrying about,” he adds.

James advises other franchisees develop an open and honest relationship with their franchisor.

“If you’re stuck or don’t know the answer to something, just ask. Always ask questions if you’re unsure. Don’t try and wing it. If you need help, pick up the phone! That’s what the franchisor is there for.”

A CUSTOMER-CENTRIC APPROACH

he’s great with numbers and rebates. On the other side of the coin I am very hands on and love networking and looking after our customers,” James says.

It's great being my own boss, because it means I can call the shots on a career I absolutely love

James owns the business in partnership with Matt Seale, and the two perform tasks that highlight their expertise.

“We complement each other.

1 is 2 very 0 1 3 analytical - 1 1 - 1 5soT 1 2 : 0 9 : 5 6 + 1 1 : 0 0 Matt

Fuel your future with a

CANSTAR WINNER “MOST SATISFIED CUSTOMERS” FOR 3 YEARS IN A ROW! Be your own boss Tenure: 12 years (2 x 6 years) ROI: Generous Fuel Commissions Support: National promotional program Training: 4 week induction Contact details – 03 9413 1400 franchiseinfo@unitedpetroleum.com.au | www.unitedpetroleum.com.au

2012

“I receive a number of new email enquiries and business leads overnight, so the first thing I do when I get in the office is pick-up the phone and respond to my clients,” James explains.

“The phone calls and email enquiries don’t stop throughout the day, so I’m always liaising with my customers.

As soon as it hits five o’clock it starts to slow down and that gives me a bit of time to catch up on admin work.”

Franchise

When you decide to become a United Franchisee you are choosing one of Australia’s largest independent petrol and convenience retails.

2011

Unsurprisingly, his days tend to revolve around servicing the client. “There is no such thing as a typical working day, but looking after our customers is always my top priority.

2013

NOV/DEC 2014 | 104 | WWW.FRANCHISEBUSINESS.COM.AU

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STRATTON'S JAMES DE RUITER

TRAITS OF A SUCCESSFUL FRANCHISEE James believes an individual’s attitude and personality traits are the key to success in franchising. “There are many professional and personal skills a franchisee needs in order to be successful, but I believe having self-confidence and people skills are the most important.

“It’s easy to learn systems and processes, but having interpersonal and people skills are attributes that takes years and years of practice,” he adds.

SUCCESS WITH STRATTON

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James says investing in a Stratton franchise is the best career decision he’s ever made.

“Being a part of the Stratton 2 0 1 4 - 0 2 - 2 1 T 0 team 9 : 2 has 1 : changed 3 7 + 1 1my : 0life 0 in

a positive way.

“Operating my own franchise allows me to strike a healthy work-life balance. It’s great being my own boss, because it means I can call the shots on a career I absolutely love, and it also means I don’t miss out on important family events like dance practice and concerts for my daughters.”

Benefits aside, he adds heading up a franchise isn’t necessarily easy. “It’s not for everyone, you need to be prepared to work hard!”

Looking to the future, James plans to grow the business and recruit additional brokers. “This helps increase the volume and makes the brand more powerful. The more loans we settle, the stronger we become as a business.”

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Love your work NOV/DEC 2014 | 105 | WWW.FRANCHISEBUSINESS.COM.AU

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FRANCHISING: IT’S IMPORTANT TO UNDERSTAND WHAT YOU’RE GETTING YOURSELF INTO

J

o Buchanan and her partner Michael joined the Jetts brand in August 2009, when they opened a club in the Sydney suburb of Alexandria.

NOV/DEC 2014 | 106 | WWW.FRANCHISEBUSINESS.COM.AU

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They invested in a second Sydney-based gym in December of the same year, this time in Miranda.

She says both clubs have very different demographics however they are equally successful.

“Alexandria is close to the Sydney CBD and located on a busy street, surrounded by businesses and apartments.

It’s a very transient and colourful community.

“Miranda is located in the Sutherland Shire. It is a more stable community, full of families and people who don’t move very often,” Jo explains.

WHY JETTS? “For many years we had been working closely with one of the original franchisors on a number of separate projects,” FR says Jo.1 1 1 3 _ 0 0 0 _ T C C

“We knew about the Jetts model, developed an interest in the concept and slowly grew to love the idea of owning our own franchises in Sydney.”

She explains the brand provides solutions to common problems typical of full service gyms. “The Jetts model includes a small staff infrastructure and the model has removed all of the frustrations members typically experience in what we call the big box clubs.

“These include lock-in contracts and members having to pay for facilities that they don’t use, such as saunas, crèche facilities and classes.”

PREPARE TO WORK HARD

When we first opened, there was so much to do and learn. I spent around 30 hours a week in each club, while still managing another business

Jo adds Jetts offers a wealth of assistance. “Support office teams are very helpful and they maintain standards and consistency which helps the owners, - team 1 2and 0 1our 3 -members.”

1 0 - 1 4 T1 4 : 2 9 : 2 2 + 1 1 : 0 0 our

Jo and Michael spent much of their time in both clubs early on. “When we first opened, there was so much to do and learn. I spent around 30 hours a week in each club, while still managing another business.

“Now, I spend 10 to 15 hours in each club per week, and we have two other businesses.”

They each work 100 hours a week – Jo arrives at the office between 7-8am each day and typically leaves around 8.30pm-9pm.

“We both work very hard and couldn’t do what we do without each other. We communicate well and manage issues and tensions swiftly. We support each other and know when we need a break.”

“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”

www.theconcretecutter.com.au Bruce Miskin 0499 399 355 Email: bruce@theconcretecutter.com.au

NOV/DEC 2014 | 107 | WWW.FRANCHISEBUSINESS.COM.AU

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RIGHT: JETTS OFFERS PERSONAL TRAINING SERVICES FAR RIGHT: JO BUCHANAN BOTTOM RIGHT: A TYPICAL JETTS GYM

Make sure you clearly understand the physical, financial, time and emotional pressures involved

While the pair have clearly defined responsibilities, they also work together on a number of aspects of the business.

“I answer e-mails, pay bills, process payroll, order stock, update the bookkeeping and chat with suppliers if required. I also update our Facebook pages, respond to member queries and requests, make phone calls, contact clubs and visit and meet with the team regularly,” Jo explains.

“Michael is a specialist in business strategy, finance, negotiations and legal aspects.

He’s on top of business news and issues and understands all industries.

“We work together at managing and dealing with risk, compliance governance and planning,” she adds.

LOCAL AREA MARKETING The pair are actively involved in the marketing of both gyms through: ✱ Advertising ✱ Flyers ✱ Open weeks ✱ Event nights ✱ Bring a Buddy events ✱ Meeting with local businesses (HR managers and directors) ✱ Sponsoring local sporting

teams and schools ✱ Supporting and sponsoring individuals in their efforts ✱ Facebook and Twitter

TIPS FOR RECRUITING THE RIGHT STAFF After five years in business, Jo has developed an understanding of what does and doesn’t work when it comes to recruiting new employees.

“I’ve learned hiring a loyal and trustworthy manager is the most important aspect of running a successful club.

“I prefer referrals for the team positions and I have been promoting managers from personal trainers and they spend some time as assistant managers as well.”

The system seems to work on a managerial level in particular. “Fingers crossed, we have not had a high turnover of club managers or assistant managers. We do, however, have a high turnover of

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personal trainers,” Jo says.

IS A FRANCHISE INVESTMENT ON YOUR RADAR? Jo encourages potential franchsiees to invest in Jetts, yet stresses that they understand what they are getting themselves into.

“Make sure you clearly understand the physical, financial, time and emotional pressures involved. Don’t expect other people to take responsibility for your club, your risks or your poor decisions,” she says.

Once their business is up-andrunning, Jo advises new franchisees: ✱ Pay attention to what is going on ✱ Watch their cash flow ✱ Try to learn something new about Jetts or the fitness industry every day ✱ Respect the support office ✱ Treat their members well ✱ Look after their team

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Louis Tu multi-unit franchisee at 25

l

ouis Tu first leased a Cafe2U van at the age of 21, and three years ago the 25-year old purchased his own franchise.

He came across the brand by luck – Louis’s older brother was involved with the company, however he later exited the business, enabling Louis to step up.

He takes the Franchising Q&A…

Why did you decide to buy a franchise over an independent business?

You have the backing of an established brand that people trust, and you always have the support from head office while still maintaining your independence as a business owner.

Investing in the franchise has been well worth it. When I was working for someone

NOV/DEC 2014 | 110 | www.fraNChisEbusiNEss.COm.au

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FOR SALE!

s r e h t o r B n a i d n I Restaurant NOW Franchises available NOW

LATEST NEWS!

Welcome to our news panel. Indian Brothers continues to expand across Queensland and now into the southern states. Three new stores are due to open over the coming months in Morningside, Waterford West and Munno Para in South Australia.

New opportunities ‌

Want to open an Indian Brothers in Mission Beach, Cooparoo, Ayr or Ipswich? Call now.

And if you have relatives down south, Interstate opportunities include Melbourne, Adelaide and Sydney. Great locations on offer.

Not all food franchises are the same.

The Indian Brothers system has been built from the ground up to comply with the Franchising Code of Conduct in Australia.

Complying with the code is mandatory and provides protection for both the franchisor and franchisee. There’s safety in a system!

Is your food franchise compliant?

If you are thinking about buying a franchise, speak to the team at Indian brothers. As members of the Franchising Council of Australia we have a reliable system you can trust.

Email: franchising@ indianbrothers.com.au or call now for details

Mike on 0488 777 277

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Mission Beach, Cooparoo, Ayr and Ipswich!

30/10/2014 7:48 pm

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else the profits were going straight to that person. When you own your own business, it’s all yours.

CAFE2U FRACHISEE LOUIS TU

HOW DID YOU COME TO DECIDE ON THIS BRAND? We’ve got the help of head office and there’s always the opportunity to do weekend work and earn more money.

My advice is to never give up – if you have a small lull in business, be tenacious and keen

Cafe2U has done all of the legwork to get the brand out there, and to help establish its franchisees. I have been very impressed with the support from head office.

They’ve been there whenever I’ve needed assistance.

HOW DID YOU GO ABOUT DUE DILIGENCE? I had the opportunity to test drive the business before purchasing [Louis leased his own vehicle for 12 months prior to investing], so I had a good understanding of what I was signing up for.

I would recommend that any potential franchisee get out there and get their hands dirty.

For me, it was going for rides in the coffee van, seeing what a typical day was like and serving up coffee.

Go out for a day or two, get experience and see if you enjoy it. That’s the most important thing – it’s how you’ll be spending your day.

WHAT SURPRISED YOU ABOUT THE BUSINESS? I guess how much money you can make with the amount of work you put in.

I don’t find it too hard to work under pressure for six hours and as a result I make good coin.

If you want to do more you can work on weekends. The money is going to you, rather than a boss.

I’ve got friends who are still in university with huge fees, and friends who are working hard for companies and not getting remunerated appropriately. It surprised me just how easy it is to have a successful, profitable business.

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WHAT CHALLENGES HAVE YOU FACED IN THE BUSINESS? Losing stops on my run has been difficult. You can get business but you have to maintain it, and there is competition.

It’s hard when suddenly there are gaps in your day where you were once making money – you’re sitting there scratching your head and wondering what went wrong.

My advice is to never give up – if you have a small lull in business, be tenacious and keen. Things will work out and become good again. You’ve got to be mentally strong and get through those lean times.

WHAT ADVICE WOULD YOU OFFER POTENTIAL FRANCHISEES? ✱ Look for a business that’s close to home. Saving travel time will make

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Australia’s premier 7HVW DQG 7DJ IUDQFKLVH KDV RSSRUWXQLWLHV IRU SDVVLRQDWH IUDQFKLVHHV $XVWUDOLD ZLGH

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Low entry costs

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Top Franchisor 2010

BRW Fast Franchises 2009, 2010, 2011, 2012, 2013

For further information visit

appliancetaggingservices.com.au or contact Steve Wren 0401 655 655 steve@ats.com.au

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you a happier person. ✱ Choose something you’re going to enjoy doing, because that’s how you’ll fill your hours from day to day. ✱ Give it a go. Don’t be overcome by fear when you’re embarking on your business because it’s doable.

There will be scary moments but it’s achievable. ✱ Set up a strong support network so you don’t feel like you’re doing it alone.

HOW DO YOU SPEND AN AVERAGE WORKING DAY? I get up at 4.45am and my first stop is at 5.30am. My run then goes until 12.30pm.

I have no break time because I’d rather get in, do the work and be home early to enjoy the rest of the day.

WHAT KIND OF TRAINING AND SUPPORT DOES THE FRANCHISOR PROVIDE? Cafe2U provides great advice.

I’ve been to franchise meetings and you can tell the more

successful people follow the suggestions of head office.

It’s good to take on those learnings.

Choose something you're going to enjoy doing, because that's how you'll fill your hours from day to day

I had four weeks of handover training on how to run the business. It was a lot to take in and it was quite overwhelming to be honest, but as the days passed, I became more confident.

It’s just experience – as soon as you get that on the job you know you can do it. I made plenty of mistakes in the beginning but I have learned from them.

WHAT IS YOUR RELATIONSHIP LIKE WITH YOUR FRANCHISOR? My relationship with Cafe2U is really good. I can call them any time or text and they are always quick to get back to me. They know that I work hard and they never miss a beat.

HOW DO YOU RAISE YOUR BRAND’S PROFILE IN THE COMMUNITY? I’ve put speakers in the van and NOV/DEC 2014 | 114 | WWW.FRANCHISEBUSINESS.COM.AU

extra lights for a bit of atmosphere. I ensure I am always wellpresented and friendly. I enjoy the time with my customers.

This leads to more referrals and more runs, and in turn, more visibility in the community.

WHAT ARE YOUR GOALS FOR THE BUSINESS? I have goals to grow the business in the future but I take it year by year. It’s important to keep my current business healthy before I start looking to expand further. I think slow and steady is the way for me.

HOW HAS FRANCHISING CHANGED YOUR LIFE? Franchising has changed every aspect of my life. Financially it has set me up, it’s helped me get out of old debts, I’ve purchased a property, I’m my own boss while maintaining a support network and most importantly I enjoy my work life.

It seems too good to be true.

I’m happy; I’ve got money, a work life balance and my own business.

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FR1114_000_REFRESH1

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ADVERTORIAL

Multi-Award Winning Franchise Launching in Australia Refresh’s awards to date include: • 2014 Deloitte Fast50 Award Winner (New Zealand)

• 2013 Interactive Media Award Winner: Best in Class (New York)

• 2012 NZ Franchise Association Business Service Provider of the Year Finalist 2012

• 2012 Summit International Marketing Effectiveness Platinum Award Winner • 2012 NZ Marketing Awards Emerging Business Award Finalist

• 2012 NZ Marketing Awards Judges Choice Award Finalist • 2011 Summit International Creative Silver Award Winner

Huge opportunity in a massive market Every year Australians spend around $30 billion on renovating their homes. Refresh Renovations is providing an opportunity for you to gain a foothold in this huge market.

A professional operation for business-oriented franchisees Refresh’s business model is sales, marketing and businessoriented. We’re looking for franchisees skilled in these areas.

You don’t need to be a builder to join Refresh. Successful renovation projects require clear expectation management and excellent communication throughout the process; from initial consultation, through the design stages, through the build, and right through to the handover of the completed project.

‘ You don’t need to be a builder to join Refresh’ To be awarded a Refresh franchise, you will be: • Inspired by building a company that delivers a better renovation experience • Driven to build a multi-million dollar business • Sales and marketing oriented • A great people manager

• Professional and well presented • Customer service focused

• Enthusiastic and eager to learn

‘Refresh is the established market leader in New Zealand, and is now launching in Australia’

Some of the benefits of owning a Refresh franchise include:

We currently have 35 franchisees operating nationwide across New Zealand and are still growing fast.

• A unique position in the market

As a Refresh Renovations franchisee, you will gain access to best-practice IP and systems, which you can use and leverage to build a significant income and business asset.

The revenue potential is huge, and being service based, the establishment costs for a Refresh franchise are far lower than most retail-oriented franchises. You will have a revenue target to build a $3-5 million business within 3-5 years of starting your franchise.

Refresh’s core target market for renovation projects is 35-65 year old mid-upper income female homeowners. The offer revolves around a professional sales process. Refresh franchise ownership is equally suited to males and females.

Refresh was established and is owned by Traffic (www. traffic.net.nz). Traffic is New Zealand’s leading business growth and strategy provider to the building industry. Traffic is a marketing specialist, and has over 20 staff involved in supporting the Refresh franchise system model. This is the kind of substance that you should look for in any franchise you’re considering. www.refreshrenovations.com.au

• An opportunity to build a significant business asset

• Differentiated by Refresh’s strong offer and customer service • Access to a huge market with enormous potential

• Low start-up costs (no up-front premises or fit-out costs)

• Full initial training and well-structured ongoing support

• Fully integrated, custom designed, cloud-based IT system • Very strong branding and marketing

• Be part of the innovative, market leading Refresh network

What are the building industry requirements?

If you purchased a café or restaurant you would employ a chef. With Refresh, you will be required to employ at least one licenced builder. In Victoria, that licenced builder must also be a director of your company, so if you’re based in Victoria, you might like to consider partnering up with a builder.

Contact Refresh Renovations: Does this sound like a franchise that you’d like to be involved with? If you’d like to find out more email Jon Bridge; jon.bridge@refreshrenovations.com.au or visit Refresh’s website; www.refreshrenovations.com.au.

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$30 billion renovation market WESTERN AUSTRALIA $4 billion

NORTHERN TERRITORY $0.3 billion

QUEENSLAND $7.2 billion

ACT $0.4 billion SOUTH AUSTRALIA $2 billion

NEW SOUTH WALES $8.9 billion

VICTORIA $6.7 billion TASMANIA $0.8 billion

Do you want a share of this?

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BUYING A FRANCHISE

HAS MANY BENEFITS D

avid Wood is a former cabinet maker turned Jimâ&#x20AC;&#x2122;s Mowing franchisee. He sought a career change after specialising in chair building for many years.

S

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David tells Franchising about his journey…

A BACKGROUND IN BUILDING I worked alongside a close friend for a little over 20 years and together we built chairs, front doors and furniture for a small group of boutique builders and interior designers.

After many years of leaning over a work bench my interest in furniture started to fade and I found myself looking for a career change that would bring fun and passion back into my working life.

advantages over starting from scratch in my opinion.

These include brand recognition, support from those who have knowledge within the industry and of the brand, and the ability to buy a business with an established client base.

I’ve always been hands on and I love building and making or changing things to provide great visual impact, so I chose Jim’s Mowing.

A CUSTOMER-CENTRIC APPROACH

expectations and perceptions of who and what you are.

My greatest challenge and greatest joy has been learning Discovering ways to deal with to deal with the general public. all kinds of people and staying WHY FRANCHISING? There are so many different in control at all times has F R 1 a1 franchise 1 4 _ 0 0had 0 _ many N O O kinds 1 of 2people 0 1 4 with - 1 0different - 2 0 T 1 been 2 : 0fascinating.

0 : 3 9 + 1 1 : 0 0 Buying

WANTED! NEW FRANCHISE PARTNERS AUSTRALIA WIDE

JIM’S MOWING: THE BENEFITS Jim's allowed me to move into a business with an existing revenue stream and sculpt it into something which fit with

DO YOU FIT THE BOX?

WHAT CAN WE OFFER YOU? Australia’s largest noodle based franchise chain Dedicated Franchise Support Centre team with focus on profitable development National & local area marketing campaign support Full training in-restaurant & in our purpose built training centre Innovative & exciting new restaurant design Australian owned Competitive capital entry level Successful business model for sustainable growth International expansion

Visit noodlebox.com.au/franchise & fill out enquiry form to receive an Information Kit. Or contact our Network Development Manager - Michael Standley on (03) 8851 4200 or 0416 256 338.

NOV/DEC 2014 | 119 | WWW.FRANCHISEBUSINESS.COM.AU

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LAND SCAPING ACTIVITIES ARE A KEY PART OF THE JOB

Jim's allowed me to move into a business with an existing revenue stream and sculpt it into something which fit with my interests and needs

F R1 1 1 4 _ 0 0 0 _ DI S

my interests and needs.

GOALS

cially in the early days.

There is so much to learn in a short period of time and knowing that the answers to all of your questions are only a phone call away gives a good level of comfort and eases the stress levels.

The current plan for my business is to allow organic growth. I’m happy with the way it is tracking – it gives me the income and life balance my family needs today.

The ongoing training and sense of community that a good franchisor provides allows franchisees to step forward where they would FRANCHISOR SUPPORT otherwise stop.

Bringing AND TRAINING all the franchisees together My franchisor has been inval- allows us to draw on a huge 1 to 2 my 0 1 business, 4 - 1 0 - espe2 7 T 1 knowledge 5 : 1 9 : 0base.

7 + 1 1 : 0 0 uable

In a few years I’d like to see how large I can grow the business. Perhaps way down the track I will just be an old man with a mower trying to keep out of my wife’s hair. I think the business will have many shapes and sizes before I sell it on many years from now.

It was just about changing the balance between gardening and landscaping to give variety while still allowing me to be creative. I like the structure of Jim’s Mowing and believe the fees and start-up costs are very reasonable considering the strength of the brand.

w w w.displaydesign.com.au

sales@d isplaydesign.com.au

1 7 9 G e r t r u d e S t r e e t , F i t z rNOV/DEC o y , V I2014 C 3 0 6|5WWW.FRANCHISEBUSINESS.COM.AU | 120 Te l 0 3 9 4 1 7 5 0 0 0 F a x 0 3 9 4 1 9 0 9 3 7 sales@d isplaydesign.com.au

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JOIN THE

DREAM TEAM

Vendor finance now available* *Available to approved applicants.

We are looking for dynamic people who love dealing with others and are passionate about retailing.

The Snooze brand has a strong history of over 30 years in retailing and has built a very solid franchise system.

We provide franchise partners with a stable platform to start their business and offer support across the entire business including: • Marketing and Promotional Support • Product Development and Buying Power • Proven operating system that includes comprehensive product and sales training • Business Management support from our on the ground field team • Assistance in site selection and property negotiations • Business finance available to approved applicants

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

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

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100

and

beyond

T

ipping the 100 mark is always a significant moment in the life of a business, as cafĂŠ chain Jamaica Blue and all-hours gym network Plus Fitness 24/7 can attest.

JAMAICA BLUE Jamaica Blue has celebrated the opening of its 100th store in Australia, bringing the total number of outlets internationally to 134.

The company was in a reflective mood at the official opening with the latest franchisee who is taking up the reins of the milestone store (Mirandaâ&#x20AC;&#x2122;s second Jamaica NOV/DEC 2014 | 122 | WWW.FRANCHISEBUSINESS.COM.AU

Blue outlet) joining the incumbent Miranda franchisee and the very first Miranda Jamaica Blue franchisee over a cup of tea in the original pineapple-painted crockery.

It's not just the tableware that has changed: today's menu features dishes such as pulled pork sliders with morello cherry and raisin chutney, pickled cabbage and mayonnaise.

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Australian-owned and operated

by The Foodco Group, the Jamaica Blue franchise brand started out in October 1992, when the Westfield Group approached Foodco to secure a sophisticated café offering to suit the fashion and lifestyle retail precincts of the Miranda (NSW) shopping centre.

The latest outlet is showcasing the newest interpretation of the Jamaica Blue coffee heritage which has driven the brand’s evolution over the years.

National brand manager Drew Eide says “It’s critical to stay relevant to changing customer tastes and food trends. We are seeing changes in eating habits, with customers looking for healthier choices.”

are plans for a UK opening in the university city of Cambridge pre-Christmas.

The striking blue and white elements have been overtaken by a more subtle imagining of the Caribbean inspiration.

“It’s about staying true to the essence of the brand, using the colours within the palette to create a connection with the Jamaican coffee heritage,” says Eide.

Celebrating the milestone is important for the network he adds; “franchisees can see the growth of the brand, see we are resonating with customers and building more brand awareness.”

Further growth is expected across the country next year.

PLUS FITNESS 24/7

Franchisees can see the growth of the brand, see we are resonating with customers and building more brand awareness

There are six New Zealand cafes, 21 in China, seven in These trends are reflected in the United Arab Emirates, the menu with extensions such three outlets in Singapore and as the Light Blue range but also most recently the café chain F Rstore 0 7 1design.

4 _ 0 0 0 _ T O W extended 1 2into 0 1 Malaysia.

4 - 0 6 - There 2 6 T1 6 : 4 6 : 1 5 + 1 0 : 0 0 in the

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Three years and 100 outlets: the Plus Fitness 24/7 model has just celebrated the launch of its milestone gym with franchisees Richard Borradale and Dean Edwards.

What started out as the Big Box Health Clubs chain, first established 18 years ago by founding CEO John Fuller, became a scalable franchise model in 2011 led by Fuller and business partner Nigel Miller.

Fuller believes the multi-unit model is aiding the brand’s success.

“Multi-unit franchisees now represent a high percentage of our network which is something we are very proud of and we are seeing more and more franchisees

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drive exceptional results from multi-site ownership.”

Miller says the emphasis on relevant franchise support has been an essential element of the gym’s expansion. “As we have continued to grow we have constantly revisited how we deliver this to ensure that we are providing all franchisees access to the support and tools they need to succeed.

Lately we have turned more to technology to assist us here with the launch of both an online training platform and an online print management system,” he says.

The online training with its interactive workshops has particularly helped interstate franchisees, Miller says.

Newbie franchisees Richard Borrodale and Dean Edwards are at the helm of the 100th gym, located in the Mountain High Shopping Centre in Bayswater, Victoria. About 10 percent of Plus Fitness gyms are shopping centre based.

ABOVE: CELEBRATING 100 JAMAICA BLUE STORES RIGHT: FRANCHISEES RICHARD BORRODALE (LEFT) AND DEAN EDWARDS (RIGHT) WITH STAFF MEMBERS KELLY AND SARAH, AND VICTORIAN FIELD MANAGER STUART MALTESE

Gyms are now open across the country which gives Plus Fitness members reciprocal rights access interstate. Low cost memberships with no lock in contracts, no access card fees and no hidden administration fees, have proved appealing points of difference for customers, says Miller.

Functional training, based on the NOV/DEC 2014 | 124 | WWW.FRANCHISEBUSINESS.COM.AU

CrossFit style of fitness training, is the latest development at the chain. “It’s had good reactions from franchisees and customers,” says Fuller.

The gym chain was named FCA Emerging Franchisor of the Year 2013 and has 52 further franchises lined up for opening within the next 12 months.

FR1114_000_NFIB

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YOU NEVER STOP

BEING AN AMBASSADOR

FOR YOUR BRAND: Fastway franchisee

A

lbury-based Luke Arcus and his wife Elisa joined the Fastway Couriers brand as regional franchisees two years ago, and Luke says running the business is a team effort.

While Luke takes care of the majority of the operations with his staff, Elise is responsible for some of the accounting and she takes care of the couple’s three young children.

WHY DID YOU DECIDE TO BUY A FRANCHISE OVER AN INDEPENDENT BUSINESS? Buying an existing business can be difficult; however I assessed 0 1 1 4 brand _ 0 0 0 and _ L I itsS theF R Fastway

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1

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Thinking of becoming a Franchisor or Franchisee?

Franchising is an exciting business opportunity but requires specialist legal advice.

MST Lawyers is widely recognised as one of Australia’s leading franchising law firms. We advise franchisors, franchisees and suppliers to the franchising sector throughout Australia and internationally on all aspects of franchising. Our dedicated team practices exclusively in franchise law. We offer fixed fees for a variety of franchise work.

MST Lawyers 315 Ferntree Gully Road, Mount Waverley Victoria 3149 Australia Tel: 1300 MST LAW or +61 3 8540 0200 Email: mst@mst.com.au www.mst.com.au

Contact our franchising specialist team: John Sier, Philip Colman & Raynia Theodore

NOV/DEC 2014 | 126 | WWW.FRANCHISEBUSINESS.COM.AU

FR1114_000_FIB

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The Experts in Leather & Plastic Restoration

Why Fibrenew?

The ever-growing consumer-driven need for the repair and restoration of leather, plastics and vinyl represents a huge opportunity for all franchise owners.

Seeking franchise partners throughout Australia Single Operator or Fleet A Fibrenew franchise can operate as a single operator or as a fleet. Our flat-fee franchise model and low overhead make it a great fit for budding entrepreneurs.

First-Rate Support & Products Fibrenew scored a 99% satisfaction rate with existing franchisees regarding the ongoing support, products and service that are provided.

An Eco-Friendly Business Fibrenew offers a business solution to a serious environmental problem. Our products and services help preserve mother nature.

Fibrenew-Franchising.com.au Visit our website to learn more about the opportunity to start your franchise. Fibrenew is a proud member of the IFA.

www.fibrenew-franchising.com.au

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current position in the marketplace as well as the credentials of the business on its own merits.

always manage to come out the other end.

Both stacked up well and I found Fastway had a good vision for future growth.

We always take something away from any challenges we face to ensure we’re better equipped to deal with similar situations in the future.

HOW DID YOU COME TO DECIDE ON THIS BRAND?

WHAT ADVICE WOULD YOU OFFER POTENTIAL FRANCHISEES?

The brand is well known in the courier industry and it has a unique system. It allows for growth from many angles, both locally and nationally. Having run customer service related businesses in the past, it suited my strengths.

Through my involvement with both Fastway and other franchises, I’ve learned it’s always important to carry out due diligence on the business and the franchise model.

HOW DID YOU GO ABOUT DUE DILIGENCE? I engaged the services of an accountant and took ample time to analyse both the financial viability and the potential of the business.

I also spent time visiting other Fastway depots to gain further insight into the full operation of the business.

WHAT SURPRISED YOU ABOUT THE BUSINESS? I never envisaged how rewarding it would be. Fastway Couriers’ franchise system is well thought out and rewards hard work on all levels.

WHAT CHALLENGES HAVE YOU FACED IN THE BUSINESS, AND WHAT STRATEGIES DID YOU DEVELOP TO OVERCOME THEM? No two days are the same in the courier industry. I’ve been thrown nearly every type of curve ball possible, from staff and couriers falling ill during peak times to moving business premises due to the expiry of our lease.

My wife and I use our common sense to approach challenging situations and somehow

If the franchise model is solid, look for an existing business that suits your knowledge and personality.

For those entering the world of franchising, it’s important to remember that you never stop being an ambassador for your brand – you are involved with it every day of the week.

HOW DO YOU SPEND AN AVERAGE WORKING DAY? I usually get to work early to ensure the smooth operation of our depot from start to finish.

I generally respond to many enquiries before the phone starts ringing.

Once I’ve organised the day for our couriers and staff I spend time working on the business – in the freight game it can change daily.

With three young children, getting home in time to have dinner with the family is important to me. Although it’s sometimes difficult, I always encourage my team to maintain a work-life balance.

WHAT KIND OF TRAINING AND SUPPORT DOES FASTWAY PROVIDE? When I first took over the franchise I had to complete a two week regional franchisee course, which included criteria that I was required to pass.

I've learned it's always important to carry out due dilligence on the business and the franchise model

Offering support to everyone on the ground is a big part of my day, from jumping in a van for a few hours or answering phones in peak periods to assisting my wife with accounts at home after dinner.

I find it important to keep fit.

We spend a lot of the day on our feet in this industry, so if time permits, I’ll get to the gym at some stage during the day.

NOV/DEC 2014 | 128 | WWW.FRANCHISEBUSINESS.COM.AU

That was backed up with monthly liaison visits by franchise business managers who have assisted me with daily operations and compliance requirements.

This process, as well as the support has been essential to the successful running of our franchise.

FROM YOUR EXPERIENCE, WHAT SKILLS ARE REQUIRED TO BE A SUCCESSFUL FRANCHISEE? ✱ Common sense ✱ An understanding of what customers need ✱ The ability to maintain an open mind ✱ The ability to ask for assistance when necessary ✱ Employing a good accountant and/or bookkeeper who you can trust Most business owners would understand that to be successful, you need to have a willingness to work through any challenge.

WHAT IS YOUR RELATIONSHIP LIKE WITH YOUR FRANCHISOR? Through previous franchise experiences I learned that it’s beneficial to work closely with the franchisor. They can provide a wealth of business knowledge and insights into the industry.

FR1114_000_RPS

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Fis h, Ch ips & Go urm et

Eats

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OPINION

People, passion and performance

F

ranchising as a business model is so successful around the world because people are brand driven – they trust brands and will be loyal to a product or service, if the customer service experience is consistent all the time.

MICHAEL PAUL Chairman of the Franchise Council of Australia and CEO and founder of Pack & Send

And the franchise model with its quality business systems is the platform for delivering that consistency of customer service.

But underpinning it all, the brand and its operating systems, is people. Franchising relies on people with a passion for their company, their brand and their products and services.

Within the franchise community (franchisees, franchisors and suppliers) you get a very strong sense of brand passion. Franchisees and franchisors are people who are proud to wear their brand on their uniforms, and proud to talk and share their successes and experiences in building their businesses with others across the franchising sector.

Whether or not we work in a mobile business, fast food, financial services, education, fitness or aged care, we all experience common challenges in our daily business lives. It is always a tremendous learning experience to hear how others are navigating the ever changing business landscape.

Learning experiences with our peers play a critical role in the performance of the sector, and without question I can say it’s played a role in Pack & Send’s development over the last 20 years.

And that’s the value I always take away from any event within the sector, such as the recent National Franchise Convention held in Sydney: the opportunity to hear from my peers. People passionate about their brands.

I urge any new franchisees to make the most of the learning opportunities that come their way, and to tap into the enormous knowledge base that exists both within individual franchise networks, and the wider franchising community.

This type of learning results in best practice standards and that ultimately translates to profitable growth for franchisees and franchisors.

The findings just released from the Griffith University [turn to page 14 to see highlights] show that yet again the franchising sector continues to outperform the broader economy.

STRONG AND VIABLE SECTOR The Franchising Australia 2014 survey provides evidence of strong performance in the franchise sector across all segments.

And the survey has quantified that both franchisors and franchisees were reported to be experiencing increases in revenue and profits.

This of course is extremely positive news. Whereas Australia’s economic growth has been below trend over the past two years, the franchise sector has demonstrated strong growth.

The total sales turnover for the entire franchising sector is now estimated to be $144 billion (compared with $131 billion in the 2012 survey). This is quite remarkable growth, given the fiscal restraint in the Australian economy.

And the outlook ahead is even more positive. Franchisors express high levels of confidence in the future performance of their franchise brands, predicting even stronger growth in 2015.

In the Franchise Council of Australia we have seen the benefits of ground work, strategic planning and consolidation which have been a high priority for us this year. There has been a noticeable upswing in member engagement, participation at franchising expos, increased collaboration with Federal politicians and other stakeholders and the establishment of partnerships with some of Australia’s best known brands.

The FCA is indeed committed and passionate about its ongoing mission of developing a vital, strong and financially viable franchising sector.

We are ending the year with a buoyant energy, looking forward to changes to the Code of Conduct finally being implemented on 1 January 2015 so we can move forward with a clear understanding of how our sector will look.

As the economy gradually continues to strengthen, we can only expect that our sector with its strong business systems and underpinned by people with a passion for their brands will continue to outperform the broader small business market.

NOV/DEC 2014 | 130 | WWW.FRANCHISEBUSINESS.COM.AU

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LEGALESE

How to renew your franchise ESTHER GUTNICK Senior associate, MST Lawyers

R

enewing a franchise agreement is a process which is often overlooked or forgotten by both franchisors and franchisees until the expiry date of the franchise agreement is imminent or has already passed. This can create uncertainty regarding the contractual terms that govern the franchising relationship and can place the franchisee in a position where he or she is technically no longer entitled to exercise the renewal right, and disputes often follow. Before signing up to an agreement, a franchise buyer should be cognisant of the renewal rights and process (if any) and once the business is up and running should ensure the necessary steps towards renewal are taken well in advance.

IS THERE A RENEWAL RIGHT? Not all franchise agreements include an option for the franchisee to renew the franchise for a further term, in which case the franchisor will have no obligation to renew the franchise agreement when the initial term expires. Franchise buyers should check this before entering into a franchise agreement. If there are no further terms specified, franchisees should approach the franchisor well in advance of the franchise agreementâ&#x20AC;&#x2122;s expiry date to ascertain whether the franchisor is amenable to granting a new franchise after the initial term ends.

For all franchise agreements entered into after 1 July 2010 that have a term greater than six months, the Franchising Code of Conduct requires franchisors, at least six months before the end of the franchise agreement, to notify the franchisee of the franchisorâ&#x20AC;&#x2122;s decision to renew or not renew the franchise agreement or to enter into a new franchise agreement.

Franchisees should diarise the date that is six months prior to the expiry of their franchise agreement and prompt the franchisor to provide the relevant notice if it has not been received by that date.

THE LEGAL REQUIREMENTS In the case of a franchise agreement that provides for one or more renewal options, the franchise agreement ordinarily sets out the pre-requisites that the fran-

chisee must meet in order for the franchise agreement to be renewed.

COMMON RENEWAL CONDITIONS INCLUDE: 1. The franchisee exercising the option to renew within a specific timeframe, for example, by no later than six months before the expiry date 2. The payment of a renewal fee 3. The franchisee ensuring that tenancy rights to any premises have been secured for the further term 4. If the franchise is conducted from retail premises, the franchisee may be required to upgrade the premises at their own cost 5. The franchisee having complied with the franchise agreement during the initial term, and/or remedying any current breaches of the franchise agreement, including paying all moneys owed to the franchisor and creditors 6. The franchisee and key employees undergoing refresher or further training 7. The franchisee signing a new franchise agreement, usually in the form of the franchisorâ&#x20AC;&#x2122;s franchise agreement current at the time of the renewal.

If the requirements set out in the franchise agreement are met, then the franchisor is obliged to renew the franchise agreement.

The franchisor is legally obliged to provide the franchisee with its current disclosure document, a copy of

NOV/DEC 2014 | 132 | WWW.FRANCHISEBUSINESS.COM.AU

FR0114_000_JIM

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“Take Control Of Your Life & Build a Future for Yourself”

8 weeks paid training ($1000 per week) Ongoing Training and support Plentiful Work Leads As a former furniture/cabinet maker, Danny was confident ‘on the tools’ and found the transition to fencing quite easy.

However as he had never owned his own business before, he knew he would find the administration and sales side a challenge, so the 8 Week Paid training program was definitely an influencing factor in his decision to buy.

“The time was right and I wanted to work for myself,” Danny said.

“During the training period as well as learning the practical, hands on side of it, I learned I needed to know to set up the business and develop my sales skills before I went out in the field.”

“From a hands-on point of view, learning the different techniques used when building different types and styles of fences was very important. The trainer I had was extremely supportive, knowledgeable and very helpful.”

Danny Frood – Jim’s Fencing (Blackburn)

Find out about becoming a Jim’s Fencing business owner today

131 546

www.jimsfencing.net

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LEGALESE

the Code and the franchise agreement in the form in which it is to be executed, at least 14 days prior to the renewal or extension of the franchise agreement.

THE RENEWAL PROCESS In addition to any pre-conditions set out in the franchise agreement, franchisors may have more comprehensive policies or procedures that apply in relation to the renewal of a franchise.

Franchisees should review the operations or policy manuals and speak to the franchisor in advance to confirm what, if any, additional steps they may be expected to undertake.

There may be additional obligations such as to: ✱ prepare new budgets or business plans for the renewal term ✱ provide financial reports or other documents to the franchisor ✱ upgrade or purchase new equipment, software, signage or stock What if renewal is not possible? If: ✱ there is no renewal right in the franchise agreement; or ✱ the franchisee fails to satisfy the criteria for renewal; or ✱ one or both parties do not wish to renew the franchise; then the franchisee must take action before the franchise comes to an end.

If there is sufficient time, the franchisee may put the business on the market for sale. Franchisees following this course of action must ensure they comply with the necessary transfer process set out in the franchise agreement in order for the franchisor to consent to the sale and grant a new franchise to the purchaser.

Alternately, the franchisee may negotiate with a view to having the franchisor buy back the business or at least some of the assets used in the business. The franchise agreement may also give the franchisor a right to require the franchisee to sell the business or its assets to the franchisor at a pre-agreed price or formula whether or not the franchisee wishes to do so.

The franchisee may also seek the franchisor’s consent to allow it to de-brand the franchised business and continue carrying on the same or similar business independently of the franchise network; however franchisors may be reluctant to agree to this other than in exceptional circumstances.

If the above options are not available, the franchisee will simply need to take steps to wind up the business, including selling off existing stock, paying out all creditors, notifying suppliers and customers and terminating and paying out employees.

TIPS FOR ENSURING A SMOOTH RENEWAL In order to ensure a smooth renewal process and minimal interruption to their business, franchisees should: ✱ review the franchise agreement and all relevant policies and manuals at the outset, ensuring they are familiar with the renewal options, process and pre-conditions ✱ record critical dates, including the expiry date and the last date for exercising any renewal option ✱ set up reminder systems to warn of pending critical dates so that deadlines are not missed ✱ seek advice in respect of the renewal franchise documents and arrange the finance required to fund the renewal (including any upgrade costs and renewal fees) in a timely manner ✱ not leave the renewal process to the last minute - communicate with the franchisor as early as possible regarding renewal or a further franchise and commence making arrangements (whether for renewal or an exit from the franchise system) as early as possible.

If a clear process is in place and discussions between the parties begin early, disappointment and disputes can often be avoided, as can the uncertainty created for both parties when a franchise agreement expires with no agreement having been reached.

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The franchise agreement may also give the franchisor a right to require the franchisee to sell the business or its assets to the franchisor at a preagreed price or formula whether or not the franchisee wishes to do so

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Visit the new home of Franchising magazine online at FranchiseBusiness.com.au

nload Plus dow guide: E E R F r u yo the Choosing chise right fran • Access information and resources in our new Knowledge Centre • Research new franchise opportunities • Filter opportunities by location, category and investment level • Get mobile! Our new mobile compatible site makes it easy to enquire wherever you are

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TRENDS

What is the greatest danger to the growth of the franchise sector?

ANDREW TERRY Professor of Business Regulation, The University of Sydney Business School

R

ecent well publicised reports of the disappointing performance of McDonald’s over the last 12 months (a marked fall in US and global same-store sales and profits down 30 percent) do not signal the end of franchising. Alan Bennett expressed it this way – although not in the franchising context: “I saw someone peeing in Jermyn Street the other day. I thought, is this the end of civilisation as we know it? Or is it simply someone peeing in Jermyn Street?” Given that McDonald’s woes are attributed to more agile competitors, perhaps better attuned to changing consumer demands and better placed to respond to them, it would seem to be the McDonald’s model rather than the franchise model itself which is under pressure.

Franchising fortunately does not face any dangers in the Herman Wouk “run around in circles, scream and shout” sense. Griffith University’s Franchising Australia 2014 Survey indeed records the very healthy state of the Australian franchising sector which is in a better shape than two years ago despite the economy operating at below full capacity over this period. Franchising is without any shadow of doubt a significant, proven, effective and efficient business expansion strategy which is practised in Australia by over 1100 franchises systems through almost 80,000 outlets for the benefit of franchisors, franchisees and consumers as well as the economy more generally. Over its short life franchising has seen off a number of real and potential dangers, including bad practices, bad press, under-regulation, over-regulation, lack of understanding, awareness and education, and has emerged as a strong and viable business model.

There is nevertheless a more subtle danger, although that is too strong a word, which I believe confronts the franchise sector. The Chinese word for crisis is a combination of the characters for danger and opportunity, and it is the opportunity end of the equation that interests me. And no doubt McDonald’s CEO Don Thompson.

Franchising is a cookie cutter model. The McDonald’s experience simply reinforces that the cookie cutter must be constantly re-assessed and tweaked to accommodate the dreams and aspirations of a changing consumer demographic. The proposition that all businesses, nonfranchised as well as franchised, need to provide what their customers want is of course not rocket science.

Changing direction for a franchise system, especially a system of the sheer weight and size of McDonald’s, is nevertheless not without complications. Thomson has already outlined fundamental changes to the business model to better accommodate the personalised and localised experience its customers are seeking, a demand which has been more effectively exploited by newer competitors. A recent article in the Financial Times (Neil Munshi, Eating their lunch, 25 October 2014) asks “Can McDonald’s reinvent itself

by abandoning a 60 year old formula?”

It is perhaps ironic that standardisation and uniformity, the basis on which franchising has been built, provide a real challenge to its ongoing march. Gen X and Gen Y, the increasingly significant market segments, are demanding personalised experience, both as consumers and as entrepreneurs. The McDonald’s experience highlights the demands of today’s Gen X and Gen Y consumers and the difficulties of balancing standardisation with customisation and localisation. Less well documented is the challenge that today’s Gen X and Gen Y entrepreneurs pose for franchisee recruitment: the demand for much greater autonomy and freedom and the opportunity to express their individuality within the confines of the franchise system.

The McDonald’s experience highlights the demands of today’s Gen X and Gen Y consumers and the difficulties of balancing standardisation with customisation and localisation

The short history of franchising has been characterised by innovation. Its capacity to reinvent itself to accommodate changing circumstances and market conditions is a major factor in its increasing influence. The recognition by an icon such as McDonald’s that it needs to redevelop its model is simply an example of franchising’s ongoing development. Changing demographics provide exciting opportunities for those systems able to embrace them.

The manner in which they work through the challenge of balancing standardisation with customisation and localisation will be massively interesting.

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LEADERSHIP

7 ways love can transform the franchise relationship KARLI FURMAGE is a trainer, coach and writer.

Contact hello@ karlifurmage.com

I meant it as a circuit breaker to the conversation. A jolt to get them thinking differently.

After the initial shocked looks and nervous laughs, wow, did we ever go to a good place.

Here’s a summary of what the group came up with.

Love would...

W

e don’t talk about love much in the workplace.

Some would argue such discussion has no place in a professional environment. Phooey to them! They don’t know franchising.

Because the franchising sector is full of love.

There are lots of family businesses, friends in partnerships, franchisees who have worked with a franchisor for years and franchisor staff who stay in the sector for their entire career. We are a group of people with long and layered connections… we’re a small, tight, love filled community.

If you want proof, our sector is the only one I know where conferences and meetings are like family gatherings. We greet each other with kisses on the cheek, hugs and genuine interest in each other.

Sometimes we forget how powerful love can be. This week I got a potent reminder.

I was working with a management team and we were discussing a franchisee in a particularly tough situation. The franchisor group was struggling. It had tried numerous things, and the situation was further complicated by their relationships and

the franchisee’s tenure with the business. The conversation had gone around in circles for a while.

When I asked them, ‘What would love do?’

Love would expect honest, open communication… knowing that information would be treated sensitively, with compassion

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1. Love would motivate the franchisor to meet the commitments they have made and hold the franchisee accountable to their commitments.

2. Love would do what’s in the best interest of the group.

Park self-interested, ego driven behaviour and find mutually beneficial solutions.

3. Love would deal with every situation with respect and kindness and expect the same from franchisors.

4. Love wouldn’t put up with any BS. Love would expect honest, open communication… knowing that information would be treated sensitively, with compassion.

5. Love wouldn’t hold grudges, sulk, manipulate, gossip, get caught up in politics or be a push over.

6. Love would respectfully challenge and hold everyone to account for their actions.

7. Love would find a way.

Regardless of the situation, the odds, the history, love would dig in and work it out.

8. The question became a calibration to what’s really important in dealing with franchisees. Being respectful, being determined, being responsible.

I saw the mood in the room lift. The perception changed and in 10 minutes we nailed five different ways of managing the situation.

If you face a tricky situation with your franchisor or even a colleague, ask yourself... What would love do?

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DIRECTORY

ASIA-PACIFIC CENTRE FOR FRANCHISING EXCELLENCE A pre-entry franchise education program is available for free and online through this centre. Funded by the ACCC this course aims to help franchisees understand the process of due diligence and have realistic expectations of what it means to be a franchisee.

The Centre was launched by Griffith University in 2008 and undertakes research on franchising best practice. The research helps inform policy and team members regularly engage with government bodies and franchise associations across the Asia-Pacific.

VISIT: WWW.FRANCHISE.EDU.AU

AUSTRALIAN COMPETITION AND CONSUMER COMMISSION (ACCC) The ACCC is an independent Commonwealth statutory authority that is responsible for enforcing the Competition and Consumer Act 2010 as well as legislation, promoting competition, fair trading and regulating national infrastructure.

directory of government and business associations, planning templates, business videos, and business checklists.

Business topics include emergency management and recovery, finance, recruitment, environmental management, fair trading, taxation, online business, franchising, importing and exporting, intellectual property and training.

VISIT: WWW.BUSINESS.GOV.AU

FRANCHISE COUNCIL OF AUSTRALIA (FCA) The FCA is the main body for representing franchisees, franchisors and service providers in the $131 billion franchise sector in Australia.

Becoming a member of the FCA is voluntary and is available for any organisation or anyone involved in the franchise industry including franchisees.

VISIT: WWW.FRANCHISE.ORG.AU

FRANCHISE BUSINESS

Its role is to protect, strengthen and improve the way competition works in Australian markets and industries. The ACCC also regulates the Franchising Code of Conduct (Code) which is a mandatory industry code that applies to parties involved in a franchise agreement, namely the franchisor and franchisee. The purpose of the Code is to regulate the conduct of the parties involved and if allegedly breached prompts investigations by the ACCC.

As the online arm of Franchising magazine, this website is focused on providing essential advice and information for anyone looking to invest in a franchise - short and snappy business tips and news, video interviews, industry commentary and market reports.

VISIT: WWW.ACCC.GOV.AU

Franchise Business is also the official directory of the FCA and lists franchising opportunities available in Australia and New Zealand. Potential franchisees looking to move into the franchising sphere can explore by location opportunities that currently exist in the market and enquire about the franchisor or brand.

BUSINESS.GOV.AU This website is an online government resource for the Australian business community which gives the public access to government information, forms and services for all things business. It is aimed at assisting individuals or a group of people to plan, start and grow their business.

New business owners can access the advice finder, events calendar, grants and assistance finder, a

Financial, legal and business guidance are key components of the independent, authorative editorial that helps potential franchisees make their purchasing decision.

Users also have access to franchise consultants and advisors who can assist prospective or existing franchisees or franchisors with any legal, financial, education and training, IT and other services.

VISIT: WWW.FRANCHISEBUSINESS.COM.AU

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GLOSSARY

DISCLOSURE DOCUMENT: this document provides information about a franchise system, the franchisor and the franchised business.

It must be supplied to a prospective franchisee, in accordance with the Franchising Code of Conduct.

DUE DILIGENCE: a thorough examination of the franchise business before purchase.

FRANCHISE: a business model with four criteria – a franchise agreement, a trademark or symbol, payment of a fee, and a system or marketing plan. A franchise business falls under the jurisdiction of the Franchising Code of Conduct and franchisors have certain obligations to fulfil.

FRANCHISE AGREEMENT: the business contract between the franchisor and franchisee.

FRANCHISEE: an individual who runs the franchised business using the intellectual property of the franchisor.

FRANCHISE FEE: this is an up-front cost paid to the franchisor and covers the use of the brand name and operating system required to operate the business.

FRANCHISOR: grants permission to the franchisee to conduct business using its intellectual property; brand name, methods of operation and marketing.

FRANCHISE TERM: this is the period granted for trading under the franchise agreement. Most franchise terms are on a renewable three or five year term but they can vary from one year to perpetuity.

GREENFIELD new site.

SITE: a brand

LICENSE: the right to use intellectual property in business, such as sales rights in a territory, manufacturing technology or access to a trademark. A license is not the same as a franchise.

LOCAL AREA MARKETING: [LAM] this is marketing the franchisee is responsible for conducting in the franchise territory or designated marketing area.

MARKETING AND ADVERTISING LEVY: a regular flat or percentage based fee paid into a centralised advertising or marketing fund.

MASTER FRANCHISEE: a franchisee who is responsible for a large territory, appointing other franchisees within the territory with direct agreements, and ensuring that the franchisor’s systems and methods are applied.

MULTI-UNIT FRANCHISEE: a franchisee granted the rights to operate more than one franchise outlet. Not every franchise system allows for franchisees to be multiple operators.

OPERATIONS MANUAL: the franchisee’s guide to operating the franchise business. The franchisor may produce several manuals for different areas of the business, and should regularly update the information.

REGIONAL FRANCHISEE: similar to master franchisees, regional franchisees operate a large territory and appoints franchisees within the area.

RENEWAL: once a franchise term nears its end, franchisees may or may not be given a right to renew their agreement for a further

term. This process is bound by the Franchising Code of Conduct and there is no automatic right of renewal.

ROYALTY: fee paid by the franchisee to the franchisor for the ongoing use of the brand and systems, management and technical support. It may be a flat fee or a percentage of sales or profit.

TERMINATION: the ending of the franchise contract between franchisee and franchisor, usually for breach of contract. Some franchise agreements allow the franchisor to terminate the agreement even if the franchisee has not breached the agreement.

THE FRANCHISING CODE OF CONDUCT: a mandatory Code that governs franchising in Australia and is designed to guide the behaviour of franchisors and provide certain protections to franchisees. It is administered through the Australian Competition and Consumer Commission (ACCC).

TOTAL INVESTMENT: the total amount of money a franchisee requires to set up in business.

This includes the franchise fee, working capital and any equipment purchases required.

TURNKEY FRANCHISE: a franchise package that includes all the equipment, information and systems required for a franchisee to open up the business and start trading.

WORKING CAPITAL: the funds required by any business to pay its costs before it starts making a profit, and as ongoing cash flow to counter any dips in business activity.

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EVERYONE LOVES A WINNER MYOB FCA EXCELLENCE IN FRANCHISING AWARDS 2014 WINNERS Australian Established Franchisor of the Year Wendy’s Supa Sundaes Sponsored by 7-Eleven Australia

Australian Emerging Franchisor of the Year Shingle Inn Sponsored by 7-Eleven Australia

International Franchisor of the Year Specsavers Sponsored by LeaseEagle

Franchise Woman of the Year Sharon Jurd, HydroKleen Australia Field Manager of the Year Danika Heslop, Jamaica Blue Supplier of the Year Shift8 Excellence in Marketing OPSM Sponsored by American Express

Multi-Unit Franchisee of the Year Brad and Matt Walker, Grill’d Camberwell, Knox and Southland

Franchisor Social Responsibility Specsavers

Franchisee of the Year, two or more staff April and Tony Carnie, Nicki Nesbitt and Wiesiek Lewandowski, Shingle Inn Mt Ommaney

Franchisee Community Responsibility and Contribution David Price, Grill’d Cairns

Sponsored by Battery World

Franchisee of the Year, less than two staff Rowan Prendergast, OPSM Waurn Ponds

Sponsored by Battery World

Sponsored by Crea Legal

Franchise Hall of Fame Inductee 2014 Greg Nathan, Franchise Relationships Institute

DON’T MISS YOUR CHANCE TO ENTER THE 2015 AWARDS REGIONAL AWARDS ARE OPEN FOR ENTRIES NATIONAL AWARDS ARE OPEN FOR ENTRIES

19 JANUARY – 16 MARCH 2015 13 APRIL – 8 JUNE 2015

For more information, call 1300 669 030 or go to franchise.org.au

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CHECKLIST

20

THINGS TO CHECK BEFORE YOU INVEST BEFORE YOU PURCHASE YOUR FRANCHISE YOU NEED TO TICK OFF ALL THE MUST-DO ITEMS. CHECK THE FOLLOWING:

Are you confident in the franchisor?

What are the franchisee and franchisor obligations?

Have you seen a disclosure document?

What training is available and who pays for it?

Have you evaluated the financial returns?

Who owns the intellectual property and what is licensed to the franchisee?

Do you know all the expenses franchisees are required to pay?

What marketing will the franchisor implement?

Have you worked out your operating costs?

Who pays for the marketing?

Do you know the term of the agreement?

What is the dispute resolution process?

Is the business operating from fixed or mobile premises?

Do you know what it is like to be a franchisee?

Are you working within a territory?

If so, is the area exclusive?

Can you assign the franchised business?

Are you restricted in your product purchase?

How can the franchisor or franchisee terminate the Franchise Agreement?

Are you required to reach a minimum performance level?

What restrictions are there on the franchisee and guarantor operating a similar business?

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CHECKLIST

24

STEPS TO OPENING YOUR FRANCHISE WHAT ARE THE PRACTICAL STEPS YOU NEED TO TAKE TO SET UP YOUR FRANCHISE? HERE IS A CALENDAR GUIDELINE TO OPEN DAY:

1-3 MONTHS AHEAD

3

Book franchisee training

3

Sign the lease or licence agreement

3

Research your market

3

Lease vehicle

3

Conduct due diligence on your franchisor

Organise fit-out for your store or office

3

3 3

Speak to franchisees

3

Read the disclosure document

3

3

Research the location

Clarify what support the franchisor will provide for opening and the first few days of trading

3

Do a business plan

3

3

Check what insurance policies you need to protect your business

Get legal and accounting advice

3

3

Organise finance and working capital

Check any relevant regulations or local by-laws

3

Decide on and set up your business structure

3

Understand your tax liabilities

3

Purchase a telecoms package and organise installation

3 3

Open a business bank account

3

Start planning your local area marketing strategy

1-4 WEEKS AHEAD

3

Sign the franchise agreement

3

Register your business (Business Name, ABN, GST etc )

Order and check the delivery of any stationery, uniform and vehicle wrap required

If you will be an employee, start the staff recruitment process

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A-Z LISTINGS

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

Phone: 0417 077 633 Contact: Michael Payne michael@palmoasisventures.com www.baskinrobbins.com.au Start up costs from: $190,000

Start up costs from: $47,000 + GST PROFILE: Looking for a franchise with on-going repeat business, large territories and access to an existing client base to get you started?

ATS are Australia-wide specialists in Electrical Testing and Tagging in accordance with AS/NZS 3760:2010. Providing expert technical, admin, business and sales support, access to our National client base and comprehensive on and off-site training, ATS are committed to helping its 45 franchisees grow profitable and successful businesses.

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.

PROFILE: At Baskin-Robbins, we love ice cream. Everything we do is for the fun, indulgence and enjoyment that ice cream provides to our beloved guests around the world in over 7,500 locations – with our 1,000 unique and much-loved ice cream flavours, frozen drinks and famous range of ice-cream cakes, there’s a delicious treat for everyone.

Our world class training program will prepare you, our national marketing platforms and comprehensive Local Store Marketing programs will generate the brand awareness and our operations team are there to support and assist you.

If you love to have fun & put a smile on people’s faces and are as passionate about ice cream and the Baskin-Robbins brand as we are, then we want to hear from you.

Phone: 07 3373 1760 Fax: 07 3373 1770 Contact: Delena Farmer admin@batteryworld.com.au www.batteryworld.com.au/franchising

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

Start up costs from: $250,000 + GST

Start up costs: $500k plus

PROFILE: Australia’s leading battery retailer Battery World is offering 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 82 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 tap into an ever-growing market.

Franchises are currently available throughout Australia for motivated individuals with strong communication skills and a love for retail.

PROFILE: Bedshed is one of Australia’s most successful and profitable bedding retailers.

Bedshed will assist with financing the right person to secure the right store where they will use our accredited franchise model. Our highly profitable franchise model has been tried, tested and perfected during our 30 plus years history and accredited with both Westpac and Bankwest, so you can rest easy.

We have over 30 stores nationally and are currently expanding our franchise network on the east coast of Australia. We are committed to securing the future of our franchisee partners by growing our network of stores and increasing our customer base. As Bedshed continues to expand, we gain marketing share and buying power for our franchisee partners.

Owning a Bedshed franchise enables you to secure your financial future and helps you choose your desired lifestyle.

®

School readiness and primary tutoring centre franchise

Phone: 03 9508 4465 Fax: 03 9508 4499 Contact: Sally Nathan sally.nathan@boostjuice.com.au www.boostjuice.com.au/ franchising

Phone: 0406 626 074 Contact: Mat Tower franchise@beginbright.com.au www.beginbright.com.au Start up costs: $60,000 - $70,000

Start up costs: $260k - $320k + GST

PROFILE: Here at Begin Bright, we strive to give franchise owner’s financial freedom and success by making children happier, more confident and smarter.

You will gain a new lease on life by working fewer hours so you can re-discover your passions in life.

You receive a 4 day initial training followed by a weekly catch up while on your 12 week launch plan. There’s also monthly webinars, quarterly field visits in your first year and conference. We use software for timetables and accounting that you are also fully trained in.

Begin Bright has a very extensive and researched marketing plan. This is implemented in a combined effort between both franchisor and franchisee.

PROFILE: Boost Juice is the largest juice and smoothie bar in the southern hemisphere.

With over 300 stores globally, we put our successes down to the strength of our franchise strategy, marketing & brand activities and the supporting systems we have in place. At Boost we have a passion for health, mind and body.

We’re always interested in talking to like-minded people who have a zest for life and take the view that making smoothies and having fun can also be very financially rewarding.

Every centre has 4 pages on the Begin Brightwebsite which is heavily promoted by Head Office as well as receiving marketing materials and campaign support.

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A-Z LISTINGS

Phone: 1800 634 227 Contact: Andrew info@briantracyglobal.com www.briantracyglobal.com Start up costs from: $79,950 + GST Includes inventory for fast ROI. PROFILE: The name Brian Tracy is synonymous with personal and professional success.

Our excellent reputation and highly-regarded programs are unrivalled and will give you brand credibility, prestige and trust in your business community.

We are searching for high-calibre individuals who are self-motivated thinkers, looking for a business opportunity beyond the generic franchise. If you are an innovative leader with a knack for business and you want to build a solid financial future, take the next step and find about more about the Brian Tracy International.

www.Franchise. buyaustralianproperties.com.au Start up costs: $50,000 $110,000 plus GST PROFILE: Buy Australian Properties is the first professional franchised property investment company in Australia. We are leading the industry with safe, ethical and proven ways of investing in residential property with integrity. We supply quality approved direct property investments in brand new full turn key house and land packages, apartments, townhouses, units and row houses Australia wide.

We have created a simple yet very effective 4 step client engagement process incorporating proven systems and procedures designed to produce outstanding results and highly satisfied clients every time we use them.

Franchisees have the opportunity to operate a very unique, first of its kind property investment business in Australia.

• great work-life balance • work from your home office • a team of highly motivated and dedicated professionals • excellent company culture

It’s the smart way to finance the equipment you need in your business.

Cashflow It can get you pre-approved for finance so that you can find the best deal on the equipment you need from any supplier in Australia.

You can choose terms starting from just 12 months up to 5 years. At the end of the term you have the option to Continue Renting, Purchase Equipment, Rent To Own or Return Equipment.

If you belong to a Cashflow It Accredited Franchise then you will enjoy additional products, benefits and cost savings.

Apply online today in less than 10 minutes.

We are franchise specialists, and we can help you achieve success by providing you with a tailored flexible package including: • Strategic Direction and Planning • Marketing and Digital Marketing • Accounting, Finance and Management Reporting • IT Support and Infrastructure • Franchise Support, Documentation and Compliance • Purchasing and Procurement • Warehousing and Distribution

Phone: 03 9417 5000 Fax: 03 9419 0937 Contact: Sarah Le Breton sales@displaydesign.com.au www.displaydesign.com.au

Start up costs from: $295,500-$455,000 $295,500 - $455,000++working workingcapital capital

Cocolat franchises can exist either as a café with seating or shopping centre kiosk preferably also with seating. Cocolat’s unique offering consists of award winning desserts, Cocolat’s own gelato, handmade chocolates and a range of savoury ciabatta rolls and pastries.

Our products are all made using only the finest quality ingredients and each product is as visually appealing as it is delicious.

Are you a fit and are you ready to experience the difference?

PROFILE: We are an Australian owned and operated company with a passion for entrepreneurial business building. We are dynamic, innovative, forward thinking and ooze an energetic and creative culture as well as maintaining the traditional values of honesty, transparency and accountability.

Phone: 0401 805 096 Contact: Josh Lawson Email: franchise@cocolat.com.au franchise@cocolat.com.au Website: www.cocolat.com.au/ www.cocolat.com.au/ franchise-opportunities

PROFILE: The Cocolat concept was established in 1992 and during this time has attracted a growing and loyal following to become an icon in South Australia and winning many national and local food awards along the way.

• unlimited growth and earnings potential

Phone: 02 9206 8877 Fax: 02 9206 8811 Contact: Rod Laycock rodl@civicms.com.au www.civicmanagedservices.com.au

Phone: 1300 659 676 Fax: 1300 659 675 Contact: James Scurr customerservice@cashflowit.com.au www.cashflowit.com.au PROFILE: Cashflow It specialises in equipment financing solutions for the franchise sector.

• comprehensive initial and ongoing training

PROFILE: For over 25 years, Display Design has been helping businesses both large and small with their retail merchandising and display requirements. Specialising in the manufacture and supply of a vast range of products suitable for use in any retail, commercial or corporate environment, Display Design’s range includes: Wall display systems, freestanding merchandising units and racks, light boxes, showcases and counters, graphic display products, metal and acrylic accessories, suspended cable and rod display systems and sign connection components. In addition, the business also encompasses areas such as design, custom manufacture, project management, installation & fit out.

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A-Z LISTINGS

Phone: 1300 131 888 Contact: Ashleigh Williams Franchise.recruitment@dominos.com.au www.dominosfranchise.com.au

Phone: 03 9923 3514 Contact: Ross Malcomson franchise@dodo.com www.dodo.com/franchise

Start up costs: $250,000 PROFILE: Dodo Connect is a fun, vibrant and energetic technology and home utilities driven business. Core to Dodo’s success has been the provision of extremely competitively priced products, along with superior customer service.

A Dodo Connect franchise provides you with low-cost entry, a simple business format, a wide range of products and services (including: internet, home phone, mobile phone and mobile wireless broadband, electricity and gas, plus vehicle, home and contents insurance.

Dodo is backed by an ASX listed powerhouse the M2 Group, in a dynamic and growing sector.

PROFILE: Looking for a new career path and want to be your own boss?

Join the success of the Number One Pizza Company in Australia- Domino’s!

Our objective is to ensure every franchisee in the network is successful by offering; • Proven Systems and procedures for single unit and multi-unit operators • Clear growth & development strategies • Un-Paralleled Support from a dedicated team • Comprehensive training programs • Constant innovation • Leading Marketing Strategies • Support through all stages of the store building process • Local franchise consultant to help with ongoing store operations Our stores generally cost between $300,000-$600,000 + GST for we require you to have approximately 40% of the total investment in cash and/or available equity.

Live your Dream and apply now.

Phone: 0408 444 734 Fax: 02 4321 0286 Contact: Jack Zervos jack@execucon.com.au www.drboom.com.au

Phone: 1800 373263 Contact: Cam Hadlow cam@dreamdoors.com.au www.dreamdoorskitchens.com Start up costs from: $65,000 + GST + operating capital

Start up costs on application PROFILE: Dr Boom Communications pride themselves on being one of the longest established and most innovative mobile phone and tablet accessories and repairs specialists in Australia having commenced trading from a single kiosk site in 1987.

With eight well established stores in premium locations across Sydney, a modern central distribution, training and service centre and a secure exclusive supply chain including premium global brands we invite entrepreneurial, hardworking and committed people to leverage our experience, share in our success and build our future.

PROFILE: Dream Doors is different from other kitchen, bathroom and bedroom renovation companies. By simply replacing the doors, drawer fronts and benchtops we save the customers $1000’s on their renovation and there in lies the secret to our universal success. We will give you 14 years worth of International experience and knowledge and help you run your local Dream Doors Franchise.

Working together is crucial to any new undertaking in the business arena and working with the company co-founder and the Australian Master Franchisee to set up and develop your own Franchise Territory will be a major advantage to the growth of your business. Long term this relationship will flourish because it is absolutely in the interest of both parties to make this business work together.

Our joint incomes depend on it.

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

Phone: 029332 93322824 2824 Phone: 02 Contact: DavidBoal Hundt Contact: Holly Email: holly@enviefitness.com.au dave@enviefitness.com.au Website: enviefitness.com.au enviefitness.com.au Start up + monthly leases Start upcosts costsfrom: from:$100,000 $100,000 + monthly leases PROFILE: PROFILE: Don’t buy a fitness franchise without exploring this exciting opportunity. EnVie is the Don’t buy a fitness franchise without exploring this exciting opportunity. EnVie is the innovative new approach to inspirational Women’s Health and Fitness.

innovative new approach to inspirational Women’s Health and Fitness.

With sites ready for opening across the eastern seaboard we are seeking

With sites ready for opening across the eastern seaboard we are seeking enthusiastic and passionate business owners NOW; with a determination to enthusiastic passionate business owners NOW; with a determination to succeed andand a passion for health and fitness. succeed and a passion for health and fitness.

Incorporating the best elements from a range of franchise models an EnVie

Incorporating the best systemised. elements from range of new franchise models anmeans EnVie business is completely An ainnovative franchise model business completely An innovative new franchise model means franchiseeisand franchisorsystemised. have the mutual goal of your SUCCESS. franchisee and franchisor have the mutual goal of your SUCCESS.

The business is further supported by extensive training and ongoing coaching from

The business is further supported extensive marketing training and coaching a team of fitness, business, franchisebyoperations, andongoing sales experts with from aa team of fitness, business, franchise operations, sales experts with combined 127 years of experience in the franchisemarketing and fitnessand industries. a combined 127 years of experience in the franchise and fitness industries.

Start up costs from: $25,000 PROFILE: Run your own rewarding business and take control of your future as a Fastway Courier Franchisee. As a market leader in nationwide courier services, our multi-award winning franchisees enjoy: • Guaranteed income package* • Low start up costs • No weekend work • Ongoing business support & training • Exclusive territories • Perpetual franchise agreement with no ongoing fees No prior business experience is needed, just a great attitude and an ability to talk to people. So, if you’re ready for a positive change, we’d love to hear from you. *Conditions apply

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Phone: 1300 362 994 Contact: Glen Jenkins info@fibrenew.com.au www.fibrenew-franchising.com.au

Phone: 1800 PT for U (783 678) Contact: Scott Hunt franchise@fitnessenhancement.com www.fitnessenhancement.com

Start up costs from: $75,000 + GST

Start up costs: From $29,000 including all equipment, training and advertising

PROFILE: Fibrenew is the industry leader in the restoration of leather, plastic and vinyl.

We are a mobile service that caters to the aviation, automobile, commercial, insurance, marine, medical and residential markets. With the diversity of all these opportunities across so many markets, our company and franchisees have grown and thrived through every rise and fall of the economy. That really speaks to the fact that there is always a need for our services.

Right now, there are franchise territories available throughout Australia. This is your chance at an exceptional business opportunity with potential for great income.

To find out more about joining our franchise team, visit: www.fibrenew-franchising.com.au

PROFILE: A low cost fitness franchise where the average customer spends over $5,000 and many have spent over $30,000! Established in 1999, Fitness Enhancement is Australia’s third largest Personal Training company.

You don’t have to be a Gym junkie to be an amazing Personal Trainer, we can get you qualified with your franchise purchase and teach you our award winning skills that have seen our clients lose up to 100kg. All you need is a passion for a fit and healthy life and helping others change their lives.

Our Mobile and Studio franchises offer unlimited growth and expansion opportunities with unparalleled head office support.

Phone: 02 8845 0100 Fax: 02 8845 0199 Contact: Karen Pollard franchise@gelatissimo.com.au www.gelatissimo.com.au

Phone: 1300 FRANCHISE Fax: 03 8640 0688 Contact: Kevin Bugeja kevin@franchiseselection.com.au 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.

Phone: Phone:07 075515 55150119 0119 Fax: Fax:07 075500 55003716 3716 Contact: Contact:Geoff GeoffBiddle Biddle mail@groutpro.com.au Email: mail@groutpro.com.au www.groutpro.com.au Website: www.groutpro.com.au Start Startup upcosts costsfrom: from:$29,950 $29,950++GST GST&&vehicle vehicle PROFILE: PROFILE: Earn between $50 and $200 per hour and get a high return on investment in the Earn between and $200 per hour with and get a high return on investment in the booming Home$50 Improvement Industry LOW SETUP COSTS & little competition. booming Home Improvement Industry with LOW SETUP COSTS & little competition.

GroutPro specialises in the after-market care of tiles and grout to homeowners and GroutPro specialises the after-market careservices of tiles and homeowners and businesses.

Offering ainrange of professional fromgrout staintoprotection of new tile businesses.

Offering ato range of professional services from stain protection of new tile and grout installations our flagship grout “colourseal” application which rejuvenates and re-colours grout installations tosaving our flagship grout time “colourseal” application and old grout customers and money without which havingrejuvenates to re-tile. and re-colours grout saving customers timeofand money without to re-tile.

Specialists use old GroutPro’s own branded range professional qualityhaving products including cleaners, sealers, tile Anti-Slip treatments and shower glass Specialists use GroutPro’s own branded range of professional qualityrestoration products and sealercleaners, coatings.sealers, This is atile complete to get you up andglass running in your including Anti-Slippackage treatments and shower restoration own business fast. Call us is today for morepackage information. and sealer coatings.

This a complete to get you up and running in your own business fast.price Call increase us todayand for more information.

Avoid the January commit before 31st December

Start up costs from: $350,000 PROFILE: Australia’s leading gelato franchise is looking for outstanding franchisees.

Prior food experience is not necessary however franchisees must have passion for the system and brand, leadership skills, and enthusiasm for delivering quality products through excellent customer service.

Multi award winning Gelatissimo provides full training and on-going support from dedicated operational, marketing and development teams enabling them to produce artisan gelato fresh in store using a simple and proven system.

Phone: 0451 370 060 Contact: Peter Fiasco franchising@hairhousewarehouse.com.au www.hairhousewarehouse.com.au/franchanising Start up costs from: $200,000 - $400,000

PROFILE: Hairhouse Warehouse is Australia’s leader in the hair and beauty industry, with over 140 stores across Australia. A belief in your ability to change your life and courage to do it is all you need. Our culture and business has developed from over 21 years of success and mastery. Hairhouse Warehouse is built on passion and creativity.

• Extensive and ongoing training programs • A proven turnkey operation • A focus on world class service • Multiple revenue streams, including retail, salon, piercing and beauty services • Exclusive stockists of world leading brands with the most lucrative merchandise trading terms worldwide

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Phone: 02 9224 0460 Fax: 02 9224 0469 Contact: Mark Buckland office@healthyhabits.com.au www.healthyhabits.com.au

Phone: 0427 208 462 Contact: Steve Potter franchising@indianbrothers.com.au www.indianbrothers.com.au Start up costs from: $160,000

PROFILE: We are all about feeling good. Feeling good about our bodies, the food we eat, our life and the impact we have on the environment. Everything we do is centred around this approach - maximising the opportunity for bring healthy, feel good products to the market. We could talk about obesity - and it is a problem but ultimately our brand is about positivity. We know that people will make choices that are good for them when they have the choice. Our goal is to provide that choice.

PROFILE: Indian Brothers restaurants began in 2002 with a simple philosophy – to bring the authentic taste of North India to Australia. Our first restaurant became a local institution in Queensland, offering tasty meals cooked to perfection. Using the freshest ingredients, traditional spices and only genuine Tandoor ovens enabled us to offer an Indian experience like few others.

Today, Indian Brothers Restaurants provide opportunities for motivated individuals to own and operate their own Indian take away food business.

Our unique system has been designed from the ground up to meet the increasing demand from time poor customers who are looking for instant, value for money, fresh and tasty food.

Phone: 0418 600 919 Contact: Meredith Ham sales.au@inxpress.com inxpress.com inxpress.com.au/franchising

Phone: 131 546 franchise.sales@jimsfencing.net www.jimsfencing.net Start up costs from: approx $64,000 - $66,000 inc equipment

Start up costs from: $49,000 +GST PROFILE: InXpress provides a revolutionary concept delivering customers with express freight advantages to gain a competitive edge in the marketplace. InXpress is an authorised sales partner for the world class courier company, DHL. Domestically, InXpress partners with companies such as Toll and TNT to offer a complete suite of courier and freight solutions, providing increased value and service, saving valuable time and money.

Operating in 15 countries with over 250 franchisees globally, InXpress is now accepting applications to grow the Australian business. Benefits to franchisees include: • Low entry costs • Low risk • No inventory/warehousing

• Minimal employee base • High income potential • Ongoing training and support

PROFILE: Jim’s Fencing operates Australia wide with currently 160 plus franchise owners and sub-contractors building fences everyday.

Jim’s Fencing has such a huge demand for work in fact; Jim’s Fencing is at a point in which they are actually reluctant to advertise the services as they have to many leads to fill as it is and not enough franchise owners on the ground to do the work.

Can you imagine? A business that has too much work available?

If you yearn to work outdoors and are handy with the tools, then Jim’s Fencing could be for you. Franchises available Australia wide.

For more information about becoming an InXpress franchisee contact us now.

Phone: 1300 989 366 Contact: Drew Davies info@kubarz.com.au www.kubarz.com.au

Phone: 1300 453 284 Fax: 07 5564 9045 Contact: Dean Reid marketing@mobileservices.net.au www.myleatherdoctor.com.au

Start up costs from: $19,990 - $49,990 (ex GST) depending on territory size, location and equipment PROFILE: Kubarz is Australia’s premier and original beverage catering and mobile bar company established in 2003 and we have now limited territories available in this boutique franchise network across Australia.

With everything included from training, operations manuals, equipment, marketing and more – all you have to bring is the right attitude!

We have successfully been servicing clients with our professional and stylish beverage and mobile bar catering services for functions, parties and events for over 10 years and are looking for the right people to take advantage of our clients demand to take our service nationally.

Start up costs: $55,000 (plus GST) PROFILE: The Leather Doctor is the leading international brand in Australia for mobile leather repairs. With over 60 franchisees in Australia and teams in New Zealand and Dubai, this is truly a turn-key business with proven success. No previous experience required.

All training included. For a unique business opportunity with little competition, great income and amazing support, call today for an information pack.

With minimal royalty fees, extensive ongoing head office support and already a handful of territories secured now is the chance to get into this exciting and rewarding industry whilst enjoying a flexible lifestyle.

Contact us today for an obligation chat about our limited opportunities!

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Phone: +61 3 8540 0200 Fax: +61 3 8540 0202 Contact: John Sier john.sier@mst.com.au www.mst.com.au

Phone: 1800 776 747 Fax: 1800 194 525 Contact Name: Brad Dixon info@mynfib.com.au Mynfib.com.au

PROFILE: MST Lawyers is widely recognised as one of Australia’s leading franchising law firms advising participants in the franchising sector, Australia wide, on all aspects of franchising.

We assist both emerging and established franchisors with their franchise strategy and structures, including acting for franchisors acquiring, selling or restructuring franchise networks, drafting franchise documentation, managing franchise transactions, Franchising Code and consumer law compliance, leasing, employment law, intellectual property and dispute resolution.

We also assist many overseas franchisors in entering the Australian market, including reviewing, adapting and drafting necessary franchise documents and advising in relation to Australian legal compliance.

MST Lawyers also act for franchisees providing advice in respect of sales and purchases of franchise businesses, advising on franchise documents and leases and providing advice and services on the full range of commercial and other legal matters relevant to small business owners.

PROFILE: NFIB meets the Australian demand for a dedicated 24/7 online provider of insurance cover for franchisors and their franchisees.

Our service is fully automated, compliant and provides you with full documentation.

Put simply, NFIB is the fastest, most affordable way to get the most appropriate level of cover you need to protect your business.

Our international affiliations allow us to stay in touch with global franchising trends and assist our clients with their international expansion strategies.

Phone: 03 8851 4200 Fax: 03 8851 4277 Contact: Michael Standley franchise@noodlebox.com.au noodlebox.com.au/franchise

Phone: 02 02 9822 9822 5622 / 0423 052 456 Phone: Fax: 02 0423 9822 052 5677456 Contact: Kate Kate Bird Bird Contact: Email: franchise@packsend.com.au franchise@packsend.com.au Website: www.packsend.com.au www.packsend.com.au

Start up costs from: $250,000 - $280,000

Start up up costs costs from: from: $154,450 Start $160,000 -- $166,900 $170,000++ working working capital capital(ex (exGST) GST)

PROFILE: An Australian success story.

Noodle Box’s goal is to be the first choice noodle-based restaurant concept in every market in which they operate.

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.

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!

PROFILE: PROFILE: Servicing one of theaward world’s fastest growing markets, PACK & providing SEND is an award PACK & SEND is an winning Retail Service Centre operation winning, full service logistics operation servicing corporate and small business convenient freight and packaging services to businesses and consumers wanting to clients, as well as householders. send anything, anywhere - plus, we offer online freight solutions for pre-packed parcels!

Established for 20 years with over 100 Australian stores – along with international Utilising our freight technology (GlobalMaster™) to networks in proprietary New Zealand andmanagement the United Kingdom – there is no other franchise perform like the PACK delivery& solution, system SEND! together with our expertise in packaging services, means you can offer a solution for person e-Commerce or business. network, customers With cutting-edge technology andany a thriving can simply send anywhere array of sales channels.

With Established for 20anything, years with a networkthrough of over an 100 Australian stores – along withthe exponential online purchasing, parcel and freight industry is among international growth stores inofNew Zealand and thethe United Kingdom – there is no other the top to benefit. franchise system like PACK & SEND in the world and, best of all, our franchisees Our innovative approach and developed infrastructure creates a future-forward receive assistance and support along the way. franchise platform with ‘no limits’ to success.

Phone: 02 9930 3023 Contact: John Nero au-pizzahut.franchising@yum.com www.pizzahut.com.au/franchise

Phone: 02 4648 2099 Fax: 02 8572 8222 Contact: Nigel Miller franchising@plusfitness.com.au www.plusfitness.com.au

Start up costs from: $300,000 - $350,000

Start up costs from: $249,000

PROFILE: Pizza Hut is the leading global pizza franchise, with over 14,000 restaurants throughout the world and is part of the quick service restaurant, 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, Northern Territory, South Australia and South East/Regional Queensland there has never been a better time to join.

PROFILE: Plus Fitness 24/7 offers a true turnkey, 24 hour gym franchise. A Plus Fitness 24/7 franchise will cost you from as little as $249k including all gym equipment, aesthetic fit-out, signage, access control, marketing, training and franchisee support. The Plus Fitness 24/7 business franchise model offers low staffing, fast break evens and impressive returns in one of the fastest growing industries within the franchising sector. With over 100 gyms open across Australia and a further 50 territories sold, Plus Fitness has a clear goal of establishing over 200 gyms by end 2015.

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Phone: 07 3456 4255 Fax: 07 3456 4299 Contact: Phil Hill phil.hill@tic.com.au propertyclub.com.au

Phone: 07 5370 1200 Fax: 07 5444 0069 Contact: Ben Everingham ben@rawenergy.com.au www.rawenergy.com.au

Start up costs from: $98,000

Start up costs: $45,000 + $220,000 start up costs

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.

PROFILE: Raw Energy is not just about healthy eating, it’s about a healthy lifestyle. Raw Energy has created a niche in the health food franchise market and perfectly suits those interested in creating a healthy lifestyle for themselves, their families and their communities. Raw Energy provides a fantastic range of healthy food, juices and smoothies.

Phone: 1300 4 REDCAT (1300 4 733 228) Fax: 03 9696 1553 info@redcat.com.au www.redcat.com.au

Phone: 1300 4 RED ROCK (1300 473 376) Contact: Phil Colburn admin@redrocknoodlebar.com.au www.redrocknoodlebar.com.au Start up costs from: $180,000

PROFILE: Red Rock Noodle Bar is one of the healthiest food franchises around in this growing fast food industry.

We deliver this by offering an exciting range of Asian 97% Fat Free tastes that appeal to all. Fresh Ingredients handpicked by our customers and “wokked” up right in front of your eyes.

Currently 12 stores all over Brisbane as we expand this healthy option throughout Queensland and Northern NSW.

PROFILE: RedCat provides end-to-end, point of sale, accounting and business management solutions that gives users total control of their business.

RedCat supplies integrated software and hardware solutions that can manage sales, staff, stock, payroll, through to accounts, GST, customer loyalty, and web based multi-site reporting to provide a complete business management system.

Franchised groups can benefit from their flexible centralised management capability that permits multiple levels of control and reporting.

RedCat are also able to provide online ordering systems. Customers order and pay through a uniquely branded app, the order is then automatically integrated into the point of sale system.

Phone: 02 8999 1380 Contact: Josh Franklin apsales@revelsystems.com

Phone: 1300 139 557 Contact: Jon Bridge jonb@traffic.net.nz www.refreshrenovations.com.au/ get-in-touch/franchise-opportunity

PROFILE: Professional design and build renovation service. Refresh provides one point of contact and a clear process for consumers to receive an outstanding renovation experience.

Refresh delivers cost effective, low stress renovations to homeowners. Refresh undertakes all types of renovations, from kitchens and bathrooms, to loft conversions and extensive house renovations. You will leverage the existing trade skills in the market but provide an overarching process which maximises efficiencies and facilitates quality. You don’t need to be a builder to join Refresh.

Our head office infrastructure and support will help you extract maximum value from your operations.

http://revelsystems.com.au Start up costs from: $1000

PROFILE: Get Amazing Control, Stop Money Leakage, Save Time and Increase Your Turnover.

Upgrade Your Business With Revel iPad POS. Revel is a true business solution, developed from the ground up to be the world’s leading fully featured iPad POS. Available for single terminals to Enterprise and Global Franchises, Revel runs from an iPad connecting to the cloud with local back up, delivering incredible reliability that empowers you to access every single feature from anywhere with internet.

Our features are designed to protect & increase your profit margins, automatically reduce mistakes, increase sales and improve efficiency.

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Phone:07 075591 55913242 3242 Phone: Fax:07 075591 55919021 9021 Fax: Contact:Michelle MichelleConnor Connor Contact: Email: michelle.connor@rfg.com.au michelle.connor@rfg.com.au Website: www.rfg.com.au www.rfg.com.au

Fish, Chips & Gourmet Eats

Phone: 0409 631 870 Contact: Hayley hayley@rpsfish.com.au www.rpsfish.com.au Start up costs: $200,000+

PROFILE: PROFILE: RFG is Australia’s largest multi-food franchise operator with more than 105 million RFG is Australia’s largest multi-food franchise operator with more than 105 million customer visits each year across the Donut King, bb’s Café, Brumby’s, Michel’s customer eachCoffee, year across the Donut King, bb’s Café, Brumby’s, Michel’s Patisserie,visits Esquire’s Pizza Capers, Crust Gourmet Pizza and The Coffee Patisserie, Esquire’s Coffee, Pizza Capers, Crust Gourmet Pizza, The Coffee Guy Guy Franchise Systems. and Cafe2U Franchise Systems.

Today, RFG has more than 1,400 outlets across Australia, New Zealand, Papa New Today, hasMalaysia, more than across Australia, New Zealand, Great Guinea,RFG China, the1,600 Middleoutlets East and the USA. Britain, Papa New Guinea, China, Malaysia, the Middle East, South Africa and Our premium product offering combined with our successful franchise systems and the USA. innovative brands are key strengths which have positioned RFG as a leader in the Our product offering combined with our successful franchise systems and retailpremium food franchise industry. innovative brands are key strengths which have positioned RFG as a leader in the retail food franchise industry.

PROFILE: Why not join Australia’s leading fish and chip brand and boost your business success?

Fish and chips have been a staple dish of the western world for centuries.

Just imagine the business potential of a product already so firmly entrenched within the market place, coupled with the power of franchising.

Our innovative approach has seen us develop successful business models for every situation from takeaway stores, to QSR’s, drive thrus, as well as express models designed specifically for events.

You could be in your very own Rock Paper Scissors store for as little as $200,000.

Contact the RPS team today. Rock Paper Scissors - fast, healthy, delicious!

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

Phone: 1800 064 431 Fax: 1800 884 431 franchising@silverchef.com.au www.silverchef.com.au

Start up costs from: $450,000

PROFILE: Silver Chef has been helping businesses to fund their equipment needs for almost 30 years. Silver Chef’s Rent.Try.Buy.® Solution offers a simple 12 month term so that you have the flexibility to: • Keep renting and we will continue to • Purchase the equipment during the reduce the purchase price 12 month period and enjoy a 75% • Upgrade if you decide your franchise net rental rebate has outgrown the original equipment • Return equipment at the end of the 12 months if you don’t need it anymore

PROFILE: As one of Australia’s longest-running, most successful and innovative franchised business, Snooze’s experience in the bedding industry is second to none.

With over 70 stores nationwide and a commitment to continued growth and development, Snooze offers great return on investment.

Snoozes offers a personable, flexible business solution with expertise and support every step of the way, including: • Vendor finance assistance • NAB & ANZ accreditation • Sales and product training

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.

• Business management support • A national marketing program • IT services

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

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Phone: 08 8376 3016 Contact: George Karamalis info@st-louis.com.au www.st-louis.com.au

Phone: NSW/ACT - 02 9250 5000

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Phone: NSW/ACT - 02 9250 5000 VIC/TAS - 039555 9287 9555 VIC/TAS - 03 9287 WA/SA - 08 9430 WA/SA - 082877 9430 2877 QLD/NT 07 3877 7333 QLD/NT - 07 3877 7333 Email: franchdev@caltex.com.au franchdev@caltex.com.au Website: www.caltex.com.au

www.caltex.com.au

Start up costs from: $350,000

PROFILE: St. Louis franchisees will find comfort in the support and guidance they receive once they become part of the St. Louis family and take the first steps into owning their own business.

With full training and on-going assistance franchisees will learn the art to producing the highest quality, premium ice cream and dessert creations, and much more in store, using a simple, user-friendly model.

We are looking for franchisees who are passionate about dessert, have a love for all things sweet and decadent, and who believe in never compromising on quality.

Change your lifestyle. Invest in something that warms you from the inside out.

PROFILE: • Caltex Star Mart is Australia’s number 1 convenience retailer with locations in every State and Territory across the country.

PROFILE: •• The Star Mart network consists of over 630 stores nationally.

Caltex Starconvenience Mart is Australia’s number 1 convenience retailer • Franchisees operate approximately 85% of Caltex’s retail network.

with locations in every State and Territory across the country.

Our world class business model, merchandising and field support has set the • The Star Mart convenience network consists of over 630 stores nationally. benchmark for convenience retailing, making Caltex the number one convenience • Franchisees retailer throughout operate Australia. approximately 85% of Caltex’s retail network.

A select amount of Caltex Star Mart opportunities now exist forand high field calibresupport Our world class business model, merchandising franchisees with a passion for retail and a burning desire to be successful.

has set the benchmark for convenience retailing, making Caltex the number one convenience To discover more about Caltex’s exciting franchise opportunity, please visit retailer throughout Australia. www.caltex.com.au and click on ‘Franchising at Caltex’.

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’.

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Phone: Toll Free Australia - 1800 630 355 New Zealand - 0800 444 618 Fax: 07 3852 4081 Contact: Franchise Administrator ssa@subway.com www.subway.com

Phone: 02 9898 8608 Contact: Chris Fitzmaurice enquiries@swimart.com.au www.swimartfranchise.com.au Start up costs from: Retail - $175,000 - $250,000 Mobile - $85,000 - $90,000

Start up costs from: Varies by site PROFILE: Subway® is the world’s largest restaurant chain with more locations than any other chain. We offer business owners simple operations, ongoing field support and a defined marketing structure, along with providing customers with a variety of freshly made menu options.

PROFILE: Swimart operates in the pool and spa industry providing owners with all their pool and spa needs from filtration equipment and chemicals to pool cleaners, accessories, spare parts and leisure products. We also provide extensive, in home services, such as pool cleaning and maintenance.

For over 47 years, the SUBWAY® brand has been helping individuals build their own independently operated business – run by people just like you! From step one, throughout the entire franchise process, the Subway® system provides training and guidance that aids in the operation of each restaurant.

Established in 1983, Swimart has over 70 retail stores and more than 250 service vehicles across both Australia & New Zealand and is a fully owned subsidiary of Waterco Ltd, a publicly listed Australian company with operations in over eight countries around the globe. We offer both retail and mobile franchises with set up costs starting from as little as $85,000. If you’re looking for either a retail or service business that delivers solid revenues with high margins and low fees, just ask Swimart!

Join the winning team with the #1 Franchise! Register your interest today.

Phone: +61 439 222 422 (AUS) Phone: +61 439 422 (AUS) +64 21 917 148222 (NZ) +64 21 917 148 (NZ) Contact: Glenn Dobson Contact: Glenn Dobson Email: glenn.dobson@tdda.com glenn.dobson@tdda.com Website: www.tdda.com www.tdda.com

Phone: 029723 97231011 1011 Phone: 02 Fax: 02 9727 97276771 6771 Fax: 02 Contact: Nick Contact: NickAvgerinos Avgerinos Email: franchise@cheesecake.com.au franchise@cheesecake.com.au Website: www.cheesecake.com.au www.cheesecake.com.au

PROFILE: The Drug Detection Agency (TDDA) is rapidly establishing itself as the largest and most dominant provider of workplace drug detection services in Australia & New PROFILE: Zealand, with a fast growing list of major corporate clients.

The Drug Detection Agency (TDDA) is rapidly establishing itself as the largest and With workplace drug screening becoming a necessity for most businesses most dominant providerreasons, of workplace drug detection services in Australia & New for safety, legal and productivity the opportunities are endless to win contracts with Local, State growing and National businesses.

Zealand, with a fast list of major corporate clients.

You will also benefit from State Office support and large-scale clients that need

With servicesworkplace in your area. drug screening becoming a necessity for most businesses for safety, legalmotivated and productivity the opportunities TDDA wants highly and businessreasons, oriented individuals to join the teamare endless to win to share in thewith success of thisState provenand business model. businesses. contracts Local, National If you are seeking a next generation business opportunity with huge potential

You will also benefit State Office support and large-scale clients that need then contact us now to findfrom out more. services in your area.

TDDA 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.

Start up costs from: $200,000 - $800,000

Start up costs from: $200,000 - $800,000 PROFILE:

PROFILE: The Cheesecake Shop opened in 1991 and has developed into an Australian The Cheesecake Shopnetwork openedofinalmost 1991200 andstores has developed into an Australian favourite with a massive across Australasia. 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 award winning system makes for oneyou of need the simplest businesses operate.

Our systems guide you on how many cakes to produce each weektoand how systems much of each ingredient to order.

Our guide you on how many cakes you need to produce each week and how muchare of baked each ingredient order. recipes. You don’t need to be a chef or Our cakes from easy to to follow a baker, its so Our cakes areeasy! baked from easy to follow recipes. You don’t need to be a chef or loveitstoso bake cakes for the kids then here is your chance to turn your aIf you baker, easy! passion into profit.

If you love to bake cakes for the kids then here is your chance to turn your passion into profit.

Phone: 0499 399 355 Contact: Bruce Miskin bruce@theconcretecutter.com.au www.theconcretecutter.com.au

Phone: 03 9008 5945 Fax: 03 9876 6612 Contact: Grant grant@thefranchiseshop.com.au 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.

With more than 30 years experience in developing businesses into franchises, conducting feasibility studies, recruiting franchise owners, territory planning and site finding.

At The Franchise Shop our aim is to grow your business. Are you thinking of developing your business? A free initial consultation will provide you with an honest, comprehensive and accurate assessment.

Looking to buy a franchise? We offer an advice service and range of documents which are designed to help you make an informed decision.

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A-Z LISTINGS

Phone: 07 3827 8010 Fax: 07 3803 2320 Contact: Kerry Edwards kerry.edwards@spanbild.com.au www.totalspan.com.au

Phone: 02 9969 5832 Contact: Ralf Barschow ralf.barshow@topsnap.com www.topsnap.com Start up cost: Price on request PROFILE: Top Snap has been servicing the real estate industry for the past 10 years and we are an established, leading, professional property photography franchise in Australia and New Zealand.

We have processed over 900,000 images for over 80,000 property marketing campaigns to date*.

Top Snap Genie Pro - our unique, proprietary online system with in-built CRM, invoicing and marketing features is exclusively available for our franchisees, so that they can efficiently manage their day-to-day photography business.

Top Snap Campus - our interactive, comprehensive training and education platform for photography, sales and marketing, in combination with our personalised Top Snap Mentor program offers you a step by step guide to build, manage and grow a successful property photography business.

Make your passion, your profession with a Top Snap franchise. To become a part of a, successful, professional, photography franchise, enquire today.

Start up costs from: $20,000 + GST PROFILE: Totalspan is part of the Spanbild Group, with over 40 years’ experience in the building industry in Australia and New Zealand. Our franchising structure and systems are tried, tested and proven – just ask any of our 100 franchisees, or 1,000 employees!

Totalspan not only offers you a proven franchise system, but we’re also the designer, engineer and manufacturer of all our products, so you’ll have a unique advantage in the market, by being connected across all aspects of the supply chain.

What’s more, our quality, affordable steel buildings are designed and built for life – we stand behind every one with a 25 year structural guarantee.

Successful people are changing their life with Totalspan - you can too!

Be part of our success story!

Phone: 03 9413 1400 / 0429 811 811 Fax: 03 9413 1401 Contact: Adrian Gallace adrian.gallace@unitedpetroleum.com.au www.unitedpetroleum.com.au/ franchising/welcome

Phone: 0438 011 020 Fax: 03 5243 1476 Contact: Joe Rossi franchise@townandcountrypizza.com.au www.townandcountrypizza.com.au Start up costs from: $200,000-$350,000 PROFILE: Town & Country Pizza & Pasta want to share and help franchisees build a successful business with the development of their effective and profitable business model. They help you manage your team, cultivate your clientele and grow your business to ensure your full potential is reached and maintained.

By using the right business systems, ingredients and recipes, Town & Country Pizza & Pasta’s proven franchise model can help franchisees take-off sooner without the usual headaches when starting up.

Being a Town & Country Pizza & Pasta franchisee is a rewarding opportunity for people who want to thrive in a challenging environment and make a difference in their workplace and communities.

Phone:13 1326261313 Phone: Fax:08 088220 82204588 4588 Fax: Email: info@viphomeservices.com info@viphomeservices.com Website: www.vipfranchisesales.com.au www.viphomeservices.com Start $25,000 Startup upcosts costsfrom: from: $25,000

PROFILE: PROFILE: V.I.P. was the first company to start franchising in home services in 1979. Today V.I.P. was the first company to start franchising in home services in 1979.

V.I.P. has over 1100 franchisees across Australia and New Zealand.

Start up costs from: $400,000 upwards PROFILE: Australian-owned company that has become one of the largest independent fuel retailers with over 320 convenience stores throughout Australia. United Petroleum continues to invest heavily in its stores and systems which has earned the trust of consumers and respect of major competitors.

United franchisees enjoy ongoing support, generous Fuel Commissions, merchandising support, a national promotional program, five week induction program and on-going training.

United is a proud member of the Franchise Council of Australia (FCA) and was awarded Canstar winner for 3 years in a row – Most Satisfied Customers (Service Stations).

Phone: 02 6737 684 Fax: 02 9475 4974 Contact: Janelle Barraclough enquire@westerntradingcompany.com.au www.westerntradingcompany.com.au Start up costs: $50K PROFILE: For quality home décor solutions, Western Trading Company is the leading name that can be trusted by homeowners in Australia and New Zealand.

V.I.P. has over 1100 franchisees across Australia and New Zealand.

Founded in July 2012, Western Trading Company is the exclusive distributor and leading provider for the biggest Mexican and South Western Home Décor and Furniture Supplier in the United States.

V.I.P. has franchise opportunities available in: • Garden Maintenance and Lawn Mowing Home Cleaning • Commercial Cleaning ••Garden Maintenance and Lawn Mowing • Home Cleaning • Commercial Cleaning

We specialise in importing exclusive and unique high quality products that perfectly highlight all of Mexico and the South West USA’s vibrant colours to bring their exceptional touch right into your homes.

V.I.P. the offerlast franchisees training, solid support Over 35 years,comprehensive V.I.P. has helped over a4,000 people system, just like exclusive you become territories and an established base along with the chance to be their own successful business owners customer by providing:

As a family owned and run business based in Australia, our main focus is to outsource exceptional products for all Australian consumers who are searching for home décor and accents that have a Mexican, South Western and Western touch.

V.I.P. has franchise opportunities available in:

boss and choose the hours they want to work.

• Initial and ongoing training, • An established client base Incoaching 2009 & 2010 was declared the Best Franchise System in Australia under andV.I.P. mentoring • Access to a network of franchisees $50,000 by the Financial Review Smart Investor magazine.

• Affordable franchise options • An initial start-up kit so that you are • National and local marketing ready to go

Our extensive collection includes a diverse range of one-of-a-kind items that include gift lines and home décor, which include furniture, home wares, pottery, textiles, saddle blankets, skins, rugs, antlers, hides, mounted longhorns, accessories and so much more.

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A-Z LISTINGS

Phone: 02 8338 0930 Contact: Daniel McDonough franchising@WHSmith.com.au www.wildcardsandgifts.com/franchising Start up costs: $42,000 + GST plus $200,000 to $300,000 capital investment w/ recommended working capital of $80,000 PROFILE: With 40+ stores across the nation, Wild Cards & Gifts is Australia’s largest group of franchised card and gift retailers.

The philosophy of Wild Cards & Gifts is simple - to make our stores #1 for profitability!

We believe that the formula to having outstanding success comes from providing great support and having great relationship with our franchisees. We deliver high quality, high demand cards & gifts in a contemporary, well designed store whilst offering value for money to our customers in a fun and energetic environment.

The card and gift market is highly competitive, worth in excess of $2b annually, and with the backing of UK giant WHSmith we have access to exclusive product not available in Australia through international suppliers creating our point of difference.

Phone: 1300 655 559 Contact: Jonathan Payne jonathan@xpresso.com.au www.xpresso.com.au www.facebook.com XpressoMobileCafe Start up costs: $119, 500 + GST including our FAST TRACK Program which guarantees your income!

PROFILE: Xpresso Mobile Cafés operate in areas nationally where there are little to no fixed location café options for the workforce in commercial and light industrial precincts.

Phone: 03 9612 7297 Fax: 03 9629 4035 Contact: Robert Toth robert.toth@wisemah.com.au www.wisewouldmahony.com.au

Wisewould Mahony Lawyers Lawyers in love...... with Franchising

PROFILE: 30 Years of Specialised Franchise Industry Knowledge Member Franchise Council of Australia (FCA), International Lawyers Association (IFLA), Franchise Association of New Zealand & US Commercial Services.

FIXED COST FEES to Franchisors and Franchisees based on scope of works.

No hourly rate surprises!

Services provided: • Legal and consulting advice to Franchisors & Franchisees.

• Code compliance requirements.

• Dispute resolution – mediation – strategies and solutions

• Sale/Purchase of Franchise Systems • Master Franchising • International Franchising • Business Law Specialists

Call or email for a complementary brochure for Franchisors and Franchisees.

Phone: 0414 669 101 Contact: Stephen Spitz stephen.spitz@xpressodelight.com.au www.xpressodelight.com.au Start up costs from: $64,900 + 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!

We supply premium Di Bella Coffee products – both hot and cold. Frappés, energy drinks, bottles of water and food options such as gourmet cookies that are designed to compliment the enjoyment of an awesome espresso coffee.

This pent up demand for gourmet coffee in the workplace is very poorly met.

An Xpresso Mobile Café is also able to custom grind beans from a dedicated bean display cabinet and then weigh, custom grind, heat seal and retail with Eftpos.

This is the premise of Xpresso Delight - transplanting the cafe into the heart of the workplace at a fraction of the price that people pay normally.

A-Z

Each day, thousands of workers trek to the nearest café to pay as much as $4.00 for their morning and afternoon coffees.

We also stock Di Bella Coffee specialty capsules that fit the ‘Nespresso’ pod machine. Both of these services are unique to Australia!

L I S T I NGS

FOR A-Z LISTINGS ENQUIRIES CONTACT:

NATIONAL SALES & MARKETING MANAGER DAVID STRONG ON 02 8484 0905 DAVID.STRONG@CIRRUSMEDIA.COM.AU

Phone: 1300 139 913 Fax: 07 5587 7223 Contact: Vicki Travers vtravers@zbm.com.au www.zbm.com.au

PROFILE: Zoo Business media is a full service provider of music, video and voice marketing solutions to the Hospitality, Retail and Fitness industries.

We help you create the perfect ambience for your shops, gyms, restaurants, and bars with internet delivered, license fee free music.

We also enable you to make a great first impression with creative on hold messages for your telephone lines. A cost effective service absolutely essential to your marketing plan.

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B2B SPECIALISTS

With 30 years experience, 160,000 postal contacts and 115,000 email contacts, Mardev can can provide you a list for your next direct marketing campaign.

FOR A FREE QUOTE CONTACT TONY CARTER on 02 8484 0719 or email tony.carter@cirrusmedia.com.au

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ADVERTISING INDEX

INCORPORATING FCA NEWS

* INDICATES FCA MEMBER

1800 OnHold Appliance Tagging Services Affinity Business Insurance Platform Baskin-Robbins Battery World Bedshed Begin Bright Brian Tracy Buy Australian Property Cafe2U Caltex Cashflow It Cirrus Media Civic Managed Services Display Design Dodo Dominos Dr Boom Dream Doors Envie Fitness Fastway Couriers Fibre New Franchise Council of Australia Franchise Selection Gelatissimo GroutPro Hairhouse Warehouse Healthy Habits InXpress Indian Brothers Jim’s Fencing MST Lawyers Noodle Box

115* 113* 125 11* 7* 79* 93* 73* 63* 38,39* 4* 59* 135,157 19* 120 41* 35 67 97* 65* 159* 127 143 100,101* 21* 139* 51* 83* 57* 111* 133* 126* 119*

Pack & Send Pizza Hut Raw Energy Red Rock Noodle Bar Redcat Refresh Renovations Retail Food Group Retail Zoo Revel Australia Rich’s Double Bay Rock Paper Scissors Silver Chef Snooze Specialised Events St Louis Subway Swimart The Cheesecake Shop The Concrete Cutter The Drug Detection Agency The Franchise Shop The Leather Doctor The Property Club Top Snap Town & Country Pizza & Pasta United Petroleum VIP Home Services Western Trading Company Wild Retail Wisewould Mahony Lawyers Xpresso Delight Xpresso Mobile Cafe

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2* 9* 25* 103 137* 116,117 80,81 86,87, 89 49 75 129 31* 121* 141* 17 45* 53* 109* 107* 160 46,47* 99 91 27* 123* 104* 105* 131 95 71* 69* 29*

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There’s a lot of money in drugs.

We’ll help you get it!

Workplace and pre-employment drug testing is exploding as a business in every state in Australia.

Be quick to secure one of our exclusive franchise territories. With the right motivation, a bit of hard work and our comprehensive 100-day training program, the financial rewards will follow.

If you’re ready to jump on board as a Franchisee in our proven business model, we want to talk to you. Sooner rather than later.

Email our Franchise Manager glenn.dobson@tdda.com

Take a video tour on our website