Franchise Buyer Vol 4. Issue 1, 2016

46
FRANCHISE BUYER www.franchisebuyer.com.au January- February 2016 Vol. 4 Issue 1 Buy, Grow, Sell! Includes Franchise for Sale Classifieds ALSO INSIDE: INSPIRED READING • APP CHAT • WEBSITES WE LOVE ChemDry: Delivering Globally as a Low Entry Cost, Home-Based Mobile Business How to Spot a Great Franchise Does Your Product Fit Your Location? Sydney Expo Kicks Off the Year March 18–20, 2016 www.franchisingexpo.com.au (FREE Ticket = Enter Code: FRANBUYER)

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An information rich publication for anybody involved in, or looking to buy, sell or grow a franchise...

Transcript of Franchise Buyer Vol 4. Issue 1, 2016

Page 1: Franchise Buyer Vol 4. Issue 1, 2016

FRANCHISEBUYER

www.franchisebuyer.com.auJanuary- February 2016 Vol. 4 Issue 1

Buy, Grow, Sell!

Includes Franchise for Sale Classifieds ALSO INSIDE: INSPIRED READING • APP CHAT • WEBSITES WE LOVE

ChemDry:Delivering Globally

as a Low Entry Cost, Home-Based

Mobile Business

How to Spot a Great Franchise

Does Your Product Fit Your Location?

Sydney Expo Kicks Off the YearMarch 18–20, 2016

www.franchisingexpo.com.au(FREE Ticket = Enter Code: FRANBUYER)

Page 2: Franchise Buyer Vol 4. Issue 1, 2016

Why spend your hard earned capital

Apply online now at or call our customer service team on 1300 659 676.

or traditional leasing solutions tailored just for you. Cash�ow It are the franchise �nance experts. Rental

With terms from just 12 months to 5 years, you have the option to:

Buying a new or existing franchise?

Refurbishing your store?

Need new equipment?

Purchase the equipment at any time.Return your equipment at the end of the term.Own your equipment over your preferred term.

Additional bene�ts for Accredited Franchise Systems. Call us today!

Advertisement_275x205_20120913 1 18/09/12 10:23 AM

Page 3: Franchise Buyer Vol 4. Issue 1, 2016

Why spend your hard earned capital

Apply online now at or call our customer service team on 1300 659 676.

or traditional leasing solutions tailored just for you. Cash�ow It are the franchise �nance experts. Rental

With terms from just 12 months to 5 years, you have the option to:

Buying a new or existing franchise?

Refurbishing your store?

Need new equipment?

Purchase the equipment at any time.Return your equipment at the end of the term.Own your equipment over your preferred term.

Additional bene�ts for Accredited Franchise Systems. Call us today!

Advertisement_275x205_20120913 1 18/09/12 10:23 AM

6 Price Alerts & Latest Listings

10 SeriousOffers& Other Sales Terms

PUBLISHED BYFranchise Media Group Pty Ltd

EditorGlenn [email protected]

Content & Production EditorAnnaliza [email protected]

DesignKatherine Bercasio

ContributorsPeter BuckinghamLeona DavazLen FergusonBrian KeenDr. Michael Schaper

Opinions expressed in Franchise Buyer are not necessarily those of Franchise Buyer or the Publisher. Persons entering into a franchise agreement are strongly urged to seek their own independent advice. All material is copyright and reproduction in whole or in part is not allowable unless specific permission from the Editor is provided.

Contents January-February 2016Vol. 4 Issue 1

Highlights• Chem-Dry celebrates 30 years in

Australia• “How to spot a great franchise” by

Glenn Walford• “Franchise brands, you are being judged

24/7” by Len Ferguson• “Does your product fit your exact

location?” by Peter Buckingham• “How to franchise your business simply,

successfully and cost-effectively” by Brian Keen

• “ACCC update: New protections from unfair contract terms apply to some franchising agreements” as reported by Dr. Michael Schaper• Sydney Franchising & Business Opportunities Expo 2016• Retail Doctor Group’s “Fit for Business” Breakfast with Guy Russo, CEO of Kmart

• Brands in Action: Xpresso Mobile Café, Egnatium, Kleenit, First Class Capital, CXpresso, Boost Juice and Snap

• eBooks, online resource and mobile/web apps

All the best,Glenn Walford

founder and editor of Franchise Buyer www.franchisebuyer.com.au

04 Cover Story Chem-Dry celebrates 30 years in

Australia: Delivering globally as a low entry cost, home-based mobile business

11 Market Happenings •Strength of the Australian

franchising sector on show •Croatia’s oldest bakery to open

franchise in Australia •Grill’d founder picks up chocolate

chain Koko Black

13 Special Feature Glenn Walford: “How to spot a

great franchise”

16 Brands in Action Xpresso Mobile Café

18 Business Broker Len Ferguson: “Franchise brands,

you are being judged 24/7”

20 Brands in Action Egnatium

24 Store Location Peter Buckingham: “Does your

product fit your exact location?”

Brands in Action26 Kleenit28 First Class Capital32 CXpresso34 Boost Juice36 Snap

31 Franchise Your Business Brian Keen: “How to franchise

your business simply, successfully and cost-effectively”

38 Event Sydney Franchising &

Business Opportunities Expo 2016

41 Retail Retail Doctor Group’s “Fit for

Business” breakfast featuring Guy Russo, CEO of Kmart

42 Franchise Code ACCC update: New

protections from unfair contract terms apply to some franchising agreements

43 Events44 Inspired Reading45 App Chat

Grab a FREE copy of Franchise Buyer Special

Edition 2015 #3 print magazine at Qantas airline

lounges across the country.

www.FranchiseBuyer.com.au • Janaury-February 2016 • FRANCHISE BUYER 3

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Cover Story

This year, Chem-Dry celebrates its 30th year in Australia — a significant milestone for the world’s largest carpet cleaning franchise, which entered Australia’s sunny shores in 1986. With 140 franchisees nationally and

3,500 franchise partners around the world, newly appointed Chem-Dry Australia CEO Alan Biddle said that this brings a lot of confidence to the marketplace. “It didn’t start yesterday and it is going to be around for a long time. We’ve got that strength in the brand name.”

Currently the market leader in carpet cleaning franchises, the quality of the products and equipment is central to Chem-Dry’s success. The business wholeheartedly believes that “it’s impossible to find a better cleaning franchise opportunity”, and Biddle attributes this is to the innovation Chem-Dry invests in.

Founded in 1977 by Robert Harris, the

Chem-Dry Celebrates 30 Years in Australia:

A Business Well Beyond Cleaning Carpets AloneBy Leona Devaz

company started in America, with its head office originally based in California and now in Utah. Extensive research formed an integral part of Harris’s venture. As a result, their organic hot water carbonated extraction method (“The Natural”) has also been successfully used to clean Australian homes and businesses.

“Essentially where we get all our products comes out of Harris’ research back in the late 1970s. We develop products every year and put money into the research and development landscape,” Biddle said. A full-time chemist concentrating on healthy and green alternatives, Biddle explains, “Change rewards those businesses that innovate, adapt, and remain ahead of the curve.”

Where competitors try to compete with major brands and keep cutting corners with products to make it them cost-effective, the actual carpet cleaning component of Chem-

4 FRANCHISE BUYER • Janaury-February 2016 • www.FranchiseBuyer.com.au

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Cover StoryDry means that “there are very few that can actually compete with us” due to their different cleaning methods.

The technicians are trained in the process of hot water carbon extraction instead of traditional steam cleaning or spray-on additives. These techniques “use a lot of water in the carpet, so ours dries in hours, not days. We don’t use a lot of cleaning solutions or chemicals that are unsafe,” added Biddle.

With best-in-class equipment and products, Chem-Dry has created a “really simple business model that anyone can run. There’s not a lot of moving parts. It is home-based and territory based, allowing the franchise partner to run as hard as they can.” Biddle says that most franchise partners do a minimum turnover of three jobs a day — “generally five days a week and some guys work half a day on Saturdays and Sundays.”

With a stronger support network in place for the future franchise market in Australia, Director Lachlan Mitchell (son of Bruce and Elva Mitchell who brought Chem-Dry to Australia) said bringing Biddle in was a purposeful move, as he’s the first senior manager from outside the Mitchell family.

staff; it is a very scalable business”.

The low start-up costs mean that entrepreneurial franchisees still have a great degree of flexibility to choose their own hours, work outside of their own premises, and still be provided with a high level of support and training.

Biddle said that, in his years of working in franchise networks, a system is important “if you want to do extremely well. Those who go looking for silver bullets take their eye off and sacrifice sales.”

The turnkey franchise includes a fully branded Chem-Dry vehicle as well as all the equipment and cleaning solutions franchisees need to get started in their own carpet cleaning business. Entry costs include franchisee induction training at the National Office, a five-year franchise agreement with additional five-year options, a franchise territory, and a marketing pack that includes uniforms, flyers, business cards, and personalized website.

Biddle adds, “The best thing about being part of a global company is that U.S. companies are great at creating Intranets — franchisees can tap into advertising, marketing campaigns, and the resources behind it. Access to information all over the world: templates, advice, online training, is something most don’t offer.”

Find out more at www.chemdryfranchise.com.au.

“It is a fresh approach, [with] new ideas and a new drive to the organisation.”

Biddle’s background at a largely successful mobile coffee franchise network, in addition to his other diverse franchising roles, means that he knows first-hand how to build franchises from the ground up and take them to the next level.

Prospective franchisees looking to secure a lifestyle business or be their own boss are recommended not to view Chem-Dray as “just a carpet cleaning business”. Biddle explains, “We’ve got all sorts of services, including tile and grout cleaning. What we are also looking at now is not just focusing on owner operators but [on] people who are looking to establish businesses, put it under management and have several businesses up and running.”

People who are driven to be “more than just a franchise partner” will be suited to Chem-Dry’s dedicated support network, on-road support and training, innovative cleaning solutions, and state-of-the-art cleaning equipment. There’s capacity to put “four, five, six of these on the road and manage

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National Franchise Price Alerts & New ListingsAuSTRALIAN CAPITAL TERRITORy

SLEEPy’SFyshwick, ACT

Call: (04) 1926 3014$102,000 + SAV

NEW SOuTH WALES

GRANITE TRANSfORmATIONSCanberra, ACT

Call: (04) 1926 3014

$700,000

THE COffEE CLuBSouth City Wagga Wagga, NSW

Call: (04) 1926 3014$475,000

SumO SALADTop Ryde, NSW

Call: (04) 0236 4591$80,000

muffIN BREAkGladesville, NSW

Call: (04) 0236 4591$170,000

HOmE INSTEAD SENIOR CARELower North Shore Sydney, NSW

Call: (04) 0236 4591$749,000

SuB SANDWICHRockdale Plaza, NSWCall: (04) 4727 3287

$360,000 + SAV

BEAumONT TILESWarners Bay, NSW

Call: (04) 4727 3287$849,000 + SAV

BEDS R uSHunter Valley and NSW Central Coast

Stores, NSW, Call: (04) 4727 3287$800,000 + SAV

DOmINO’SPenrith Area, NSW

Call: (04) 0482 4085$649,000

SIGNWAVEPenrith Area, NSW

Call: (04) 0482 4085$375,000 + SAV

DONuT kINGPark Beach Plaza, Coffs Harbour, NSW

Call: (04) 1777 8587$590,000 + SAV

SuBmARINE SANDWICH CAfEBallina, NSW

Call: (04) 1777 8587$99,000 + SAV

BOOST JuICEDubbo Centro, NSWCall: (04) 1777 8587

$160,000 + SAV

Price Alerts & New Listings

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Page 7: Franchise Buyer Vol 4. Issue 1, 2016

National Franchise Price Alerts & New ListingsPrice Alerts & New Listings

QuEENSLAND LIfESTyLE PATIOS

Birkdale, QLDCall: (04) 1755 1445

$450,000

BOOST JuICEMobeel, Brisbane, QLDCall: (04) 1755 1445

$390,000 + SAV

PIzzA CAPERSKenmore, QLD

Call: (04) 6705 1735$339,500

(negotiable; includes vehicle)

SALSA’S fRESH mExChermside, QLD

Call: (04) 6705 1735$490,000

STEPz fITNESSAshgrove, Brisbane North, QLD

Call: (04) 6705 1735$279,000

SLEEPy’SHelensvale, QLD

Call: (04) 0882 2544$180,000 + SAV

uLTRA TuNEBurleigh, QLD

Call: (04) 0882 2544$250,000 + SAV

NORTHERN TERRITORy

THE SHED COmPANyDarwin, NT

Call: (04) 1301 3367$249,000

muffIN BREAkCasuarina Square, NTCall: (04) 1301 3367

$399,000 + SAV

RED ROOSTERKatherine, NT

Call: (04) 1301 3367$479,000 + SAV

Queensland

PIzzA CAPERSMount Gravatt, QLDCall: 0417 778 587

$199,000 + SAV

LENARD’SThe Ridge Toowoomba, QLD

Call: 0417 778 587$150,000 + SAV

BuCkING BuLLLogan Hyperdome, QLD

Call: 0417 778 587$99,000 + SAV

JETTS fITNESSDarra, QLD

Call: (04) 1755 1445$399,000 + SAV

Whilst all care is taken to present correct information, please also refer to the most current website listing (click MORE INFO) and/or contact the broker.

www.FranchiseBuyer.com.au • Janaury-February 2016 • FRANCHISE BUYER 7

Page 8: Franchise Buyer Vol 4. Issue 1, 2016

National Franchise Price Alerts & New Listings(continued)

RED ROOSTERRunaway Bay, QLD

Call: (04) 0882 2544$475,000 + SAV

AuSTRALIA POST LPOFreshwater, Cairns, QLD

Call: (04) 1554 3469$119,000 + $50,000 SAV

DOmINO’SBiloela, QLD

Call: (04) 1554 3469$256,000 + SAV

JAmAICA BLuEChinchilla, QLD

Call: (04) 1554 3469$320,000

WESTERN AuSTRALIA

POOLWERxMindarie, WA

Call: (04) 2772 0752$269,000 + SAV

PRICE ATTACkPerth CBD (Murray St Mall), WA

Call: (04) 2772 0752$299,000 + SAV

mAD mEx fRESH mExICAN GRILL

Hillarys, WA, Call: (04) 2772 0752$299,000

CHIPmuNkS PLAyLAND AND CAfE (mASTER fRANCHISE)

South Perth, WA, Call: (04) 1675 8156$549,000 + SAV

SumO SALADRockingham, WA

Call: (04) 1675 8156$399,000 + SAV

muffIN BREAkMaddington, WA

Call: (04) 1675 8156$369,000 + SAV

JESTERSBunbury The Parks Centre, WA

Call: (04) 1919 8584$395,000

SuB SANDWICHBroome, WA

Call: (04) 1919 8584$399,000 + SAV

BARBEQuES GALORE & SOLAHARTGeraldton, WA

Call: (04) 1919 8584$675,000 + SAV

Whilst all care is taken to present correct information,

please also refer to the most current website listing

(click MORE INFO) and/or contact the broker.

Price Alerts & New Listings

8 FRANCHISE BUYER • Janaury-February 2016 • www.FranchiseBuyer.com.au

Page 9: Franchise Buyer Vol 4. Issue 1, 2016

Want to make a clean break?

Chem-Dry is the world’s largest carpet cleaning franchise, and has been helping Australian’s realise their dream of business ownership since 1986.

Our unique, hot-carbonated water extraction method, combined with best in-class products and services, and unparalleled training and support, make it impossible to find a better cleaning franchise opportunity. No experience is necessary, as Chem-Dry provide comprehensive training on all aspects of the business. Our on-going marketing and operational support will ensure that you are able to enjoy the flexibility and lifestyle benefits that owning your own successful business can provide.

If you’re ready to make a clean break with your own Chem-Dry franchise, simply fill out the information form on our website, or call our franchise business info line on 1800 243 637.

Franchises available in all capital cities & regional centres

1800 243 637 chemdry.com.au

Build your future with Chem-Dry

franchise1511p080.indd 80 12/3/15 12:35 PM

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Australian Capital Territory

OuTBACk JACkSBelconnen, ACT

Call: (04) 1926 3014$300,000 (urgent Sale)

RED ROOSTERWollongong (Mt. Ousley), ACT

Call: (04) 1926 3014$320,000 (urgent Sale)

New South Wales

NEWSPOWERCampbelltown, NSWCall: (04) 0482 4085

$265,000 + SAV (urgent Sale)

BLAxLAND EAST NEWSAGENCyBlaxland East, NSWCall: (04) 0482 4085

$97,500 + SAV (urgent Sale)

mICHEL’S PATISSERIEBonnyrigg Plaza, NSWCall: (04) 0482 4085

$195,000 + SAV (urgent Sale)

PIzzA CAPERSEdgeworth (Newcastle), NSW

Call: (04) 4727 3287$100,000 + SAV (urgent Sale)

PIzzA HuTBalgowlah, NSW

Call: (04) 0236 4591$50,000

(Quick Sale/Offers Invited)

Serious Offers • Price Reductions • Quick Sales • Offers Invited

Serious Offers & Other Sales Terms

Queensland

THE COffEE CLuBNoosa Civic, QLD

Call: (04) 1554 3469$359,000 (urgent Sale)

EAGLE BOySFairfield Waters, QLDCall: (04) 1554 3469

$205,000 (urgent Sale)

LOCAL APPLIANCE RENTALSSouth Burnett, QLD

Call: (04) 1554 3469$449,000 (urgent Sale)

EAGLE BOySOrmeau, QLD

Call: (04) 0882 2544$80,000 (urgent Sale)

EAGLE BOySBrisbane North, QLDCall: (04) 6705 1735

$149,000(Quick Sale/Offers Invited)

BOOkS AND GIfTS DIRECT

Brisbane, QLDCall: (04) 6705 1735

$49,000 (Quick Sale/Offers Invited)

SuBmARINE SANDWICH RESTAuRANT AND TAkEAWAy

Brisbane North, QLDCall: (04) 6705 1735

$87,500 (Quick Sale/Offers Invited)

Whilst all care is taken to present correct information, please also refer to the most current website listing (click the price indicator) and/or contact the broker.

10 FRANCHISE BUYER • Janaury-February 2016 • www.FranchiseBuyer.com.au

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Market HappeningsFind out what the movers and shakers in the Australian

franchise sector have been up to.

Strength of the Australian franchising sector on show

Croatia’s oldest bakery to open franchise in Australia

Croatia’s oldest and largest bakery chain is set to open franchise outlets in Australia and Saudi Arabia in May this year.

Mlinar has over 190 bakeries in Croatia, Slovenia, Hungary and Germany. The bakeries, which will open in Sydney, Australia, and in Riyadh, Saudi Arabia, will be branded and set out to be exactly the same as they are in Croatia but will be run by franchise partners there.

Mlinar currently operates two franchise models: the model that the Australian and Saudi Arabia stores will operate under and a model that allows outlets to sell Mlinar products but not in Mlinar-branded stores.

Mlinar bakery products, such as bureks and other pastries, are already sold in cities across Australia, but this will be the first Mlinar bakery to open in the country.

With Mlinar’s big expansion plans, recently it opened in Munich, Germany, and plans to open a further 150 bakeries in Germany in the next 5 years. Mlinar manages the more than 190 bakeries from their base in

Zagreb. Read more here.

Two Australian franchises have been announced as winners of The International Franchise Association’s (IFA) NextGen in Franchising Global Competition, a high honour and further proof of the calibre

and ongoing strength of the Australian franchising sector.Representing Australia, the winners — Jai Hobbs, Co-Founder

Paleo Café, and Jacob Foster, Managing Director FCF Fire and Electrical — were 2 out of 20 global winners of the NextGen in Franchising Competition for 2015.

Applications were open to young entrepreneurs in business for between 1 and 5 years with a company that could scale through franchising and that bought forward innovative ideas for existing franchise companies. The competition rewards these entrepreneurs with incredible access to the most successful entrepreneurs, executives, experts and financiers in the franchise industry.

Amongst many major prizes, the two Australian winners will receive a trip to the 2016 IFA Annual Convention in San Antonio, TX, USA, to attend the NextGen Summit with the Franchise Council of Australia (FCA) funding travel and accommodation costs for this major event.

FCA Chairman Michael Paul congratulated the two Australian winners

and said that the representation and participation of the many businesses that entered is proof that the franchising sector is booming here in Australia.

“The competition is a fantastic initiative, which has been brought about as a result of the partnership between the franchising peak bodies, the FCA in Australia and the USA’s IFA and succeeds in engaging young entrepreneurs to bring new ideas and thinking into this great industry,” Michael said. “The competition has proven a huge success and allows winners to discuss new concepts and innovative ways of thinking to take franchising into the future and ensure the sector in Australia continues to flourish. Winners also get the opportunity to learn about the latest trends in the industry and to grow both on a personal and professional level,” he added.

The FCA’s very close involvement in the campaign demonstrates Australia’s commitment to further strengthening the industry and to encouraging Australians to experience the many opportunities and benefits that are associated with being involved in the franchising industry.

News

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The man behind the Grill’d premium burger brand has emerged as the new owner of troubled chocolate chain Koko Black amid expectations up to three stores may close under the new ownership.

Koko Black administrator Deloitte wrote to the chain’s employees this week to let them know Grill’d Managing Director Simon Crowe had bought the business and planned to appoint a new chief executive in the “near term”.

Crowe would not reveal how much he paid for the Koko Black business, but Deloitte in its letter to staff said it “expected that only two to three salons would not be transferred to the new owners”.

Deloitte said Crowe was working through a “transition plan” to ensure a smooth journey out of administration and a final decision on the sites slated for closure would be made by 22 January.

In the letter to staff, Crowe said he was a long-time admirer of Koko Black. “Its culture is founded on product quality, creativity and design. This does not need to change — rather, it needs to be adequately supported by improved systems, processes, reporting and analytics,” Crowe said. He said the ultimate plan was to invest in the chocolate chain and take it to the “next level of growth”.

Retail consultant Brian Walker said food had been one of the key drivers of retail in the past few years. “When you look at the retail trade figures, a lot of that growth has been in food and hospitality,” Walker said. He said the Koko Black chain was nice complementary

business for Grill’d, and Crowe had the skills and experience to make the operation’s cost base more efficient. “And if it’s in administration, he clearly would have bought it at the right price,” Walker said.

Koko Black, which was put into administration in November, will be owned separately to Grill’d and Crowe is analysing the chain and in negotiations with its landlords for a number of its outlets. At the appointment of administrators, Deloitte Restructuring Services’ Sal Algeri said the luxury chocolate chain was a victim of its own ambitious expansion plans. Algeri said the business grew too quickly and embarked on a number of major projects beyond its resources.

Shane Hills founded Koko Black from a single store in Melbourne’s Royal Arcade in 2003, but it now trades through a network of 14 stores around Australia. It has recently expanded into New Zealand, but these stores are not affected by the collapse. Koko Black employs about 300 people, including its production team in the Melbourne suburb of Coburg, and it received a $3 million Victorian state government grant last year for its $10.9 million Alchemy Hall Project, which was to include a manufacturing centre of excellence as well as a visitor centre.

Under the new ownership, Koko Black staff will be offered new employment by 25 January on terms and conditions similar to their existing agreements, and Deloitte said all employee entitlements,

including years of service, would be transferred to the new owners. Read more here.

Grill’d founder picks up chocolate chain Koko Black

Market Happenings(Continued)

12 FRANCHISE BUYER • Janaury-February 2016 • www.FranchiseBuyer.com.au

News

Page 13: Franchise Buyer Vol 4. Issue 1, 2016

How to Spot a Great FranchiseThinking to buy a franchise? Like many Australians perusing the vast landscape of businesses on offer, knowing which franchise to buy can seem like an exciting yet truly overwhelming task. By Leona Devaz

IBISWorld’s franchising market research report (October 2015)1 states that the sector currently employees 570,000

people with revenue of $172 billion. That is nothing to sneeze at, and the upward trend is set to continue through to 2020.

With over 13 years in franchising, across marketing, field support and senior management, editor and founder of Franchise Buyer, Glenn Walford, has connected many sellers and buyers to franchise brands. The one question he still gets asked over and over, “What’s the best franchise to buy?”

Family, close friends, acquaintances and people he meets almost daily in the course of running the business continually implore him for the golden answer.

Here is the secret — it is never as simple as many would expect. The most important thing is you really need to enjoy what you end up doing. “My belief is that this makes ‘work’ much easier if it is enjoyable.”

Speaking frankly, Mr. Walford says, “Owning and running a business for many, in my view, is a very personal thing. Some claim that they see it purely as an investment — but that’s not me, so I can’t really relate to that thinking and approach.”

1 www.ibisworld.com.au/industry/default.aspx?indid=1902.

Armed with this question, we spoke to several experts in the franchising industry to find out how you can spot a great franchise. Some of the answers will no doubt shine some light on the way you approach searching for the best business for you.

Set-up costs, industry-specific lender (finance)

In our interview with First Class Capital National Franchise Recruitment Manager, Greg Prussia, he states that the level of investment is a key deciding factor

(see page 52). Prospective franchise partners want to know if it is affordable to get in and exactly what the business is.

Spectrum Analysis Managing Director, Peter Buckingham, reinforces this key point, “If you want to impress potential franchisees, it costs money — and that is

Glenn Walford, Franchise Buyer

www.FranchiseBuyer.com.au • Janaury-February 2016 • FRANCHISE BUYER 13

Special Feature

Page 14: Franchise Buyer Vol 4. Issue 1, 2016

why God invented banks. [I’m] Very sick of hearing from undercapitalised Franchisors with a great idea, and looking start a business on the smell of an oily rag — and their first couple of Franchisees’ money.”

Knowing the set-up costs is crucial to help you make an informed decision. Depending on your budget and lending capabilities, it is well worth planning out your current budget, financial and contractual arrangements. If a low-barrier business is viable for you, GroutPro franchisor, Geoff Biddle, recommends reviewing franchises with “low entry cost, low overhead, low competition, low or fixed fees and high earning potential.”

For others, discussions with industry-specific lenders may help you narrow down your focus — if affordability is a primary concern for you. FRANdata Australia CEO, Darryn McAuliffe, explains, “Smart brands recognise the importance of good relationships with lenders to help prospective franchisees buy a franchise. A growing number of franchises now provide independent reports to make life easier for both lenders and franchisees. Snap Fitness, Chocolateria San Churro, Zambrero, Mr Rental, Lenard’s and Pandora are all good example of quality brands making life easier for their franchisees obtaining finance.”

Not sure which industry is for you? Mr. Buckingham has further sound advice. “A good franchise is something you like doing. If you like the outdoors, think pool cleaning, lawn mowing and gardening — if these appeal the most. If you are a computer nerd, think indoors, computers and social media. If you are an animal whisperer, think dog wash and grooming. I believe it definitely helps to align your business to your passion or at least something you like doing. Funny why it is always hard selling franchises for rubbish bin cleaning!”

Walford believes a valuable lesson learnt from a fellow senior manager of a franchise brand also ties into knowing where your genuine motivation lies. While looking to purchase a business for his wife, his colleague shared,

“I’ve been looking for ages for a good business, and we just can’t seem to find one at the moment.” The conversation remains a vivid reminder, as it indicates why going about your search the wrong way can lead you nowhere in a hurry. “My thinking on an approach to finding a business has always been to focus your search on a business that does something that you actually like to do — something that interests you.”

Rules and regulationsFor those concerned more

about the rules and regulations of the franchise world — i.e. breakout clauses, can you sell it on if it does

not work, clarity around contractual arrangements and with compliance do you have to adhere to the Franchisor’s rules (for example, purchasing your own brand of coffee beans if you are a mobile coffee van) — Mr. McAuliffe’s industry insights will help put things into perspective: “The Australian franchise sector is very well regulated, operating under a Franchising Code of Conduct overseen by the Australian Competition and Consumer Commission (ACCC). This code has recently been updated and many quality franchise brands have assisted prospective franchisees to quickly confirm their documents are up to date through the Australian Franchise Registry.”

The ACCC replaced the old Franchising Code on 1 January 2015 and prospective franchise partners can subscribe to the Franchising information network2 to receive emails on developments, changes, resources, events and enforcement action. McAuliffe adds, “Great franchise brands care about reputations, not just their own but the whole franchise sector and every franchisee operating under their brand. Franchise Council of Australia membership and registration with the Australian Franchise Registry are two excellent indicators that brands are serious about their reputation and that of the franchise sector.”

Support networkWhile the maintenance of brand image and the

franchise industry is crucial for growth and integrity, many people chose a franchise for the after-sales service and support network. Being left to fend for yourself can be a daunting prospect. A franchise with strong systems, infrastructure and people management can help alleviate initial reservations.

With extensive experience in supplying services to

2 www.accc.gov.au/media/subscriptions/franchising-information-network.

“Rule One: Research is mandatory. Rule Two: Research is mandatory. Don’t just accept what is presented do your own research and ensure all your questions are satisfied.”

“Remember, you don’t get what you DESERVE — you get what you NEGOTIATE!”

“your shop lease is like a mARRIAGE CERTIfICATE that just happens to have the DIVORCE already packaged in!”

“If you don’t understand the Critical Path of the Lease for the business you are buying, STOP and get advice!”

“What is not measured cannot be managed. How does the business you are buying measure up?”

“understanding how the real estate your business leases performs can be the difference between the lease being an anchor and not an asset.”

Geoff Biddle, GroutPro

14 FRANCHISE BUYER • Janaury-February 2016 • www.FranchiseBuyer.com.au

Special Feature

Page 15: Franchise Buyer Vol 4. Issue 1, 2016

mark Wood, kleenit (franchisor)“The opportunity to grow your territory by adding extra income streams and not being limited to just the main core business is a great benefit to those who are entrepreneurs. That way they can soon earn extra income, put on extra staff, etc., and their business becomes stronger and safer, as it isn’t so reliant on one income stream.”

Peter Buckingham, mD,Spectrum Analysis“I listen to Phil Ruthven [founder of IBISWorld] who has been preaching for 30+ years that we should do what we do best and outsource what we either do not want to do or don’t like doing. This has generated a huge number of opportunities in the service sector, many which have become franchises. Whether it be lawn mowing, gardening, car or dog wash, there is potential for someone to make a business out of it and offload what they don’t like doing to someone else. Seems to me the service businesses are the biggest growth sector we are currently seeing.”

Darryn mcAuliffe, CEO fRANdata Australia “Great franchise brands provide strong initial training to ensure the success of new franchisees and effective ongoing support to keep them and the overall brand successful. It is worth asking them to outline exactly what they do and then validate that with some existing franchisees.”

Expert industry insights

Jonathan Payne, mD,xpresso mobile Café(franchisor)“Look for franchises that have won industry awards — i.e. aim for a franchise system that has the balls to ask their franchisees for anonymous feedback and ask tough questions about the system they are a part of. If the system has won awards, it’s because the system works and the franchisees are happy. Simple as that really.”

Steve finn, Co-founder, finn franchiseBrokers“I think a great franchise has a strong and proven customer acquisition program. If you’ve got more customers than you can handle, you’ll probably have a great business.”

Grant Garraway, Director, The franchise Shop “It’s only a great franchise if you can do successfully what the franchise does — don’t like raw fish, don’t buy a sushi bar! It is a great franchise when the existing franchise owners tell you they would buy it now, knowing what they now know. A great franchise is one which is tomorrow’s trend, not yesterday’s. Don’t buy a wagon wheel manufacturing business; buy a personal hovercraft business.”

Phillip Chapman, Director, Lease1“Quite often, the due diligence on the lease is overlooked, particularly where the Franchisor holds the head lease. An independent review and audit of the lease is critical!”

franchises on location and site analysis, Buckingham’s perspective is all about leadership in the franchise sector. When you are looking to choose a franchise, review what the CEO or principal has achieved, specifically “whether you want to hitch your wagon to their horse. Good franchise systems invest in proper systems, be that in site selection, territory planning or strategic network planning — a good franchise system has a plan. The poor systems we see start out on a low budget, and the initial work is often not done.”

A well-structured and systemised franchise business will ensure you can hit the ground running. As Walford has experienced, “all the rest of the fundamentals of the

business, of course, need to follow that.” Therefore, whether you start looking for a franchise or any business based on cost, industry, brand, systems or support network, knowing what gets you up every morning is a good first step.

To help start your search, McAuliffe’s suggestion will help you quickly separate the wheat from the chaff: “Quality franchise brands have nothing to hide and are generally willing to share detailed information packs to help prospective franchisees quickly determine the suitability of the brand.”

To give you a bit more of a competitive searching edge, our industry experts share their sought-after insights.

www.FranchiseBuyer.com.au • Janaury-February 2016 • FRANCHISE BUYER 15

Special Feature

Page 16: Franchise Buyer Vol 4. Issue 1, 2016

Western Australia has welcomed a new kid on the caffeine block in 2016. On Monday, 11 January, Xpresso Mobile Café launched its

first coffee van on the sunny shores of the port city of Fremantle, the same locale where they have an exclusive license with premium partner Di Bella Coffee Roasting Warehouse.

Talking about the brand’s first WA franchisee, Managing Director Jonathan Payne said, “He is pumped and ready to go, a real go-getter. We will work with him to give him a good launch”.

From a career in the Armed Forces to the inaugural venture for Xpresso Mobile Café into WA, this ex-military franchisee marks a new wave of partners jumping on-board the mobile coffee van trend. The pioneer WA franchisee doesn’t seem to be slowing down anytime soon.

Payne is confident that Perth will be a good market and jokingly added, “The slowdown in the resources sector means people can trade in their jet skis and buy a coffee van!”

2016 Launches Monday 1 February, Noosa, QLDMonday 15 February, Dandenong

South, VICMonday 29 February, Port Botany

(Mascot), NSWTBC — March, Melbourne, VICTBC — March, Wollongong, NSW

With a fairly even spread across NSW and QLD, including three franchisees in VIC (two in Melbourne and one in Ballarat) and three in Adelaide, the launches will see the business hit 32 vans by March 2016. With a goal to reach 40-something by the end of the leap year, Xpresso is right on track with its nationwide recruitment.

“Melbourne, in general, and Western Sydney [markets]

Xpresso Mobile CaféBy Leona Devaz

have been a cracker. A lot of people made money on their properties, have the capital to do it and are pretty entrepreneurial,” said Payne.

This trait is a defining characteristic that many of the franchisees hold. Payne explained it as having the guts to step away from a 9-5 job “and the guaranteed money that arrives every week. There is a tremendous amount of fear that prevents people from taking that first step”.

Helping people deal with fear is 90% of his role. “It’s the fear of failure, the unknown. It is a $130,000 buy and fear is normal. We are all human,” explained Payne.

Part of being the Managing Director is identifying with franchisees and recognising the emotions they are going through. “All franchisees on day 1 of their launch are s**tting themselves and going, ‘What have I done?’ Ask them again in two weeks and they are having a great time!”

The level of transparency Payne and the Xpresso

16 FRANCHISE BUYER • Janaury-February 2016 • www.FranchiseBuyer.com.au

Brands In Action

Page 17: Franchise Buyer Vol 4. Issue 1, 2016

Mobile Café business offer to prospective and existing franchisees is one of the things that have led to their growth. “Everyone wants honesty. When people ask me, ‘What happens when it rains?’ I answer, ‘Well, you are gonna get wet!’”

Franchisees are provided with wet weather uniforms and the rear of the van can fit two to three people comfortably. “But if it is coming down horizontally like in Adelaide, you better pack your bags and go home to watch

The Morning Show!”This laid-back humour and

friendly attitude have seen the private business win people over, gain trust, and collect two Top Franchise 2015 awards:Top 10 Top Franchise Awards LifestyleTop 10 Top Franchise Awards Passion

“Top Franchise Awards” is an anonymous survey, and Payne said that these results reflect how much the franchisees love what they do. Dive into their YouTube channel and you will find a suite of testimonial videos supporting the “lifestyle” component: “They are on the road at 6:30 am and finish up at 2:00 pm”. Comments from franchisees will echo this

sentiment: “Love it — being out in the open everyday, working for ourselves, and the freedom.”

“Passion and lifestyle are intertwined. If you love what you do, your lifestyle will be improved. Many of our guys would not be working more than 40 hours a week.” As a comparative point, Payne said that 99% of fast food franchise owners “are working more than 40 hours per week because wages are so high”.

The training systems for franchisees are designed to teach them about every part of the process. First, they complete an e-learning course and then fly out to Brisbane, “not just to froth milk for three days but to learn the science behind coffee and get a full tour of the roasting house”. Payne spends two weeks with the franchisees in their van, getting them familiar with their territory and generating business.

“The goal is to give away 1000 cups of coffee and see a 10% return on this.” With loyalty apps, beacon technology (pushes out a message to customers who have the app on their phone), and solid communications in place, Xpresso Mobile Café is ensuring their customers that they continually experience end-to-end high-quality coffee.

Find out more at www.xpressocoffee.com.au.

www.FranchiseBuyer.com.au • Janaury-February 2016 • FRANCHISE BUYER 17

Brands In Action

Page 18: Franchise Buyer Vol 4. Issue 1, 2016

Franchise Brands, You Are Being Judged 24/7

As the co-founder of Finn Franchise Brokers, I have been selling franchises for more than a decade now. I have been personally

involved in hundreds of sales and spoken to thousands of buyers. And as I write this, I can tell you the way buyers find you and make decisions on what franchises they like has changed dramatically.

By Len Ferguson

The funny thing is that most franchisors have not noticed, let alone reacted to their declining interest from potential franchisees. In the “good old days”, well, pre-Internet

domination and prior to websites becoming so strong, franchise recruitment personnel were able to run ads in Saturday’s newspapers and enjoy their weekend knowing on Monday the phone would be ringing with people looking to purchase their franchises. Now, potential

buyers call whenever they feel like it, and they are looking for opportunities 24/7 and this is where the problem for marketing your franchises is.

You need to consider this buyer search pattern and understand how competitive it is now for buyers. There are so many more franchises and general businesses to choose from than there was just 10 years ago. Therefore, one of the first questions you need to ask yourself about your franchise offer is “Why is our business more attractive

18 FRANCHISE BUYER • Janaury-February 2016 • www.FranchiseBuyer.com.au

Business Broker

Page 19: Franchise Buyer Vol 4. Issue 1, 2016

Len Ferguson is the co-founder of The Finn Group. Having originally established itself as the leading and by far the largest franchise brokerage firm in the country, The Finn Group is continuing to expand rapidly across the marketplace. www.joinfinn.com.au

than the others?” because the buyers are asking themselves “Is this franchise brand attractive and worth investing in it or should I move on and look at something else?”

Once you have examined these questions, how do you then show buyers that your franchise is the right one for them? The answer is a simple one but a complicated one to implement. Here is the answer.

Building relationships with potential buyers before they contact you

Today’s buyers are looking and researching what interests them all the time, 24/7. It is just so easy now with the ability to research as deep as they wish via various sources online. It is now clear that this is happening, so how are you using this knowledge to inspire people to join your franchise system? Are you using modern marketing methods?

Modern marketing methods such as video, social media and other online platforms to grow your presence are crucial to stand out and make sure buyers take notice. At last count in our business at the Finn Group, we have made over 500 videos now as part of “telling our story” to the market place and beyond. We recognised that video is that important going forward to what we do, that we have built a video studio at our head office.

But that is not all you need to do. The content needs to be inspiring and skewed towards building a relationship with your potential buyers so they trust you and your brand. Do this well and your website traffic will increase, and this is the next thing that you need to ensure is right.

It is crucial that you know what is driving potential buyers to your website, as there is a risk that, if you do not

know what that is, you could cut out marketing that is already working well for you in the bigger picture.

Building a relationship with buyers and your brand

Brand relationships with potential buyers do not happen overnight, as building trust and awareness of what your offer is takes time. You will need to build a consistent and systemised approach with this type of marketing program. Just remember, you want to be on their screens and in front of them on multiple occasions, and that is best done across multiple marketing platform types. These could and would include a combination of buyer directory websites, banner adverts, AdWords, SEO, some targeted printed, face-to-face at franchise recruitment-type expos and so on.

Success is achieved via your “pot” of marketing spend, and it is important to not become “blinkered” by a very narrow approach to your presence in the opportunity seeker marketplace. Spread informative content about your brand and what you do far and wide.

Keep interacting with your potential franchisees and building trust that you are reputable and trustworthy via constantly “telling your story” at every opportunity. Do this well and you will have more well-researched, qualified buyers calling you interested in your franchise opportunities. I know this first hand, as it has worked very well for us in our business.

www.FranchiseBuyer.com.au • Janaury-February 2016 • FRANCHISE BUYER 19

Business Broker

Page 20: Franchise Buyer Vol 4. Issue 1, 2016

EgnatiumBy Leona Devaz

Egnatium is conducting a national recruitment drive for 25 franchisees to head up their business-to-business franchise system in Australia (across QLD, NSW, VIC, SA, and WA markets).

Seminars are being held in capital cities and one-on-one meetings are under way until the end of March 2016. This laser-focused “headhunting” strategy is a decisive approach according to the CEO of Egnitus Franchising, Karen Prescott.

Prescott explains, “We are looking for people that have at least 10 years [of ] specialist experience in five key areas: strategy, competency, appraisal, learning, or experience management.” These areas form the franchise packages offered by the global brand Egnatium and are “extremely attractive for a lot of people. Franchisees are leaving their careers to do something different. It’s not always about coffee. Some people in human resources or a management space are looking for the next step, still want to learn, and take their career to the next level.”

Egnatium first started out as Insights Matrix, a company founded by Ali Kasa, who has been operating in Malaysia for more than 10 years. The model, based on learning, development, and competency needs, grew to a number of different solutions “each doing a separate thing”. Prescott said,

“We recognised it needed to be all under one umbrella.” This took effect a few years. “Australia had the best opportunities and best franchising platform. We did that in September 2014, and I started with Egnatium in February 2015, setting up head office, the company, and getting it going in Australia”.

Prescott is no stranger to business, having operated in QLD for well over two decades. She said, however, “The franchising part requires a whole new heap of support and experts looking at the SME landscape, which is where I step in!” She explained the reason why Egnatium is divided into five key areas is that “no one person can be an expert at everything, and it’s too much to take into consideration”.

The model works to support larger businesses. Prescott added, “We go into companies that have 50+ staff and $1.5M turnover and service them locally. Ignatia (the management company who launched Egnatium) looks after businesses with $5M turnover or more and services them nationally.” Egnatium clients are well-established companies that are making a profit but may be stagnant in one area or another, i.e. slow profit vs. increasing expenses or disconnecting within areas of the business.

“We do a health check. Often, the company will have an idea on what area is failing and which of the five areas need attention,” said Prescott.

Brands In Action

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Page 21: Franchise Buyer Vol 4. Issue 1, 2016

Digital Marketing

STRATEGy: We look at the business plan and make it into a living, breathing document. Franchise partners consult with clients, build their framework and use proprietary software (specialised software written internally), train staff, and deliver “train the trainer”. We come in with a practical hands-on approach, help them build their own strategy, and say, “Let’s get it done, let’s get it moving”.

COmPETENCy: The assessment is available online — customers and clients use it for a range of things. The most common is the new entrant into the workforce; we improve the success rate of people starting by 85%. Succession planning is crucial, a lot of people are retiring, management has greater flexibility needs, and the younger mixture of experience has not been tested yet. This identifies weaknesses and natural strengths.

appraisal: Aligning your employees KPIs with the business KPIs. Sometimes, employees are working hard doing one thing and management is doing another, so the business is heading in two different places. It’s such a simple solution and makes big leaps and jumps in profitability.

learning: We provide digital learning to HR. Online learning can be given to team members in 15-minute slots. It’s small doses of intensive training focusing on employee gaps in knowledge. It’s targeted, unique, and very cost-effective.

ExPERIENCE: Only the top 5% of companies are listening to the customer. This is due to constraints of SME budgets. We run surveys on our website and on Facebook continuously in areas we are working on (Malaysia and Australia). This “experience” platform helps compare brand to brand, company to company, and product to product and is invaluable date for clients. The general public is incentivised through points (the highest in the world), tradable for cash and products.

SCALE (strategy, Competency, appraisal, learning, experience)

The rollout of new partners post-March will be “pretty fast”. “There is no inventory to set up,” and franchisees will undergo 160 hours of competency-based training to fill in any gaps. “Some will be missing small business acumen; some won’t have any idea of project management.” Once out in the field, partners are supplied with two leads per day and spend the rest of the day on project management. Each of the five state-based franchisees will operate out of serviced offices with a marketing person (can hire a salesperson or administrator) to “bounce ideas off each other.”

“We have a global network and great IT team keeping us up-to-date with global trends. In terms of innovation, no other business in the world is doing what we are doing. Just as Starbucks started as a one-coffee shop, we will be exactly the same thing. It’s very niche,” said Prescott.

Find out more at www.egnatium.com.au.

PLAY VIDEO: Ali Kasa, Founding Director, Egnatium talking with Glenn Walford of Franchise Buyer.

www.FranchiseBuyer.com.au • Janaury-February 2016 • FRANCHISE BUYER 21

Page 22: Franchise Buyer Vol 4. Issue 1, 2016
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So you are thinking of opening a new business, probably as a Franchisee (as you are reading this magazine). If the business is already operating, then the past sales are a fairly good indication for

the future sales.On the other hand, if the business is a new business,

how do you estimate what your revenue is likely to be? Whether it is a large franchised brand, your own independent coffee and/or cake shop, an ice cream or yoghurt store or any other retail business, the same basic questions need to be addressed.

How do you realistically estimate the sales in dollar terms that your new business will do?

If you are joining an established franchise chain, the Franchisor may offer to provide some information, such as the demographics of the area, and maybe a listing of phone numbers of other Franchisees for you to talk to. The final word from the Franchisor is along the lines of “Do your own due diligence, as I cannot say what sales revenues you will generate” (and you will probably be asked to sign a document confirming this).

Forecast Profits & LossesIn most businesses, you think in terms of forecast profit,

and you are relying on this to live, pay back your debts and

Does Your Product Fit Your Exact Location?

This should be the biggest question asked in selecting and opening a new business. By Peter Buckingham CFE

basically secure your future. The simplest way in my view of looking at a forecast profit & loss (P&L) is as follows:

Sales Revenues — Very hard to predict Less Cost of Good Sold (factor of sales revenue) Rent — Fairly predictable cost Wages — Fairly predictable cost (with some variable component) Other (power, phone, all fairly small) = PROFIT/(LOSS)

If the Sales Revenue is out by a fair percentage, say +/- 50%, then the effect on the bottom line is either fantastic or catastrophic.

How we do a good estimate of future sales is the “$64,000 question”!

We canLook for similar businesses and try and ascertain their

sales — the “Analogue” method.Have confidence in your Franchisor that they are

overseeing the site selection process and have some form of model or process to indicate to them the sales will be adequate.

24 FRANCHISE BUYER • Janaury-February 2016 • www.FranchiseBuyer.com.au

Store Location

Page 25: Franchise Buyer Vol 4. Issue 1, 2016

Your sales estimate is the crucial number you will be building your business plans around, and the better the logic and the process that generates this, the higher are the chances of your business meeting your expectations.

Having confidence in your Franchisor that they have a proper site selection process is essential, as it is your money that is being spent. If the site is a “dud”, it is your money that will be lost, and unless you are prepared to run a very costly legal battle with your Franchisor, there is very little comeback.

The recent Gelare International case, where the Franchisor has been found guilty of misrepresentation, provides an indication of the inadequacy of some and, quite possibly, many Franchisors and the site selection processes they adopt.

It is critical that you treat sales predictions as a very important part of your decision to buy your new venture, and good luck with your new business.

Peter Buckingham is the Managing Director of Spectrum Analysis Australia Pty Ltd, which specialises in assisting clients with decisions relating to store and site location using various scientific and statistical techniques. To contact Peter, email [email protected] or visit www.spectrumanalysis.com.au.

Page 26: Franchise Buyer Vol 4. Issue 1, 2016

Kleenit, the NSW market is ripe for franchisees who want to hit the ground running.

Wood said, to take away the “fear and trepidation associated with taking on a new business”, there is a $75,000 income guarantee in the first year. This was introduced during the acquisition of GRS and helped alleviate the two questions he is asked the most: “How much will I earn?” and “How much does it cost?”

To answer the first question, “Everyone so far has smashed the $75K mark.” With council contracts “easy to come by” and a large portfolio of government-, commercial-, and industrial-based work, Kleenit needs “sensational people. We don’t want them to just take clients or do one job. We want to form a relationship and have successful people.”

The start-up costs are approximately $110K, which includes franchise fee, equipment, vehicle (franchisees need a white tray back), and stock. Different income streams exist, from high-pressure cleaning and graffiti removal to protective coating and sealing services.

Typically, franchisees will find a service and specialise or will offer multiple services. He explained, “If graffiti is quiet one day or if the weather is bad, then they can do floor coverings. We are not limited at all. We have so much more to offer and people can make a really heathy income.”

Find out more at www.kleenitfranchise.com.au.

Kleenit’s “Multi-Income Stream” Business Is on the Move

By Leona Devaz

2016 has kicked off, and WA-based Kleenit cleaning franchise is expanding nationally, particularly

on the eastern seaboard. With 46 franchises nationally and 27 in WA, Director Mark Wood said, “We are ‘seriously’ looking for franchisees in Melbourne and Sydney. The business has grown so much. We are getting more enquiries than they (franchisees) can handle.” After acquiring the Graffiti Removal Services (GRS) business in September 2014, the company has grown from strength to strength, but as Wood emphasised, “The guys can only do what they can do in the day”.

Having more customers than franchisees is a “good problem” to have and showcases the demand for this service, which covers outdoors, interior floors, and car detailing. It is an ideal offering for people looking for freedom in owning their own business, especially those who love the outdoor life.

For prospective franchisees in Victoria, there is “fairly limited coverage”, and Kleenit is looking to enhance their presence in Melbourne. Territories exist from Williamstown to Richmond, and in NSW, the “tyranny of distance is huge” and currently five franchisees are in operation. “The Bondi franchisee is actually looking after Campbelltown. It’s one hour each way in peak traffic”. As contract work and repeat business are major staples for

Brands In Action

26 FRANCHISE BUYER • Janaury-February 2016 • www.FranchiseBuyer.com.au

Page 27: Franchise Buyer Vol 4. Issue 1, 2016

Kleenit FullPg 230x295 Franchise Ad Nov15.indd 2 27/11/2015 9:45 am

Page 28: Franchise Buyer Vol 4. Issue 1, 2016

First decision. Is it going to be affordable for me to get into?

Second decision. What is the return for me?Prospective franchisees ask, “What is it going to cost

me and what is it going to do for me?” Helping people understand what they have to do and what outlays are in it for them is a key part of Mr. Prussia’s role.

With First Class Capital having “no rent to pay, no lease to bind yourself into, no staff to pay, it becomes a very cost-effective business model to get into,” Prussia explains.

Where traditional franchise models have a shopfront that may go through quiet seasons, Prussia says, “Ours is not seasonal whatsoever. If you decide to take a backseat, you don’t have those recurring costs.”

As an independent, Australian-owned financial services company, First Class Capital is focused on delivering working capital solutions to small- to medium-sized businesses.

Being independent and not backed by major finance companies, Prussia advises, “We have the flexibility to move with what the market requires.”

Prussia looks for franchise networks or SMEs needing cash-flow funding solutions. “Every small business has

First Class CapitalThere are two fundamental decisions First Class Capital National Franchise Recruitment Manager, Greg Prussia, sees when people

are looking at a franchise business.By Leona Devaz

cash-flow issues at some stage,” says Prussia. First Class Capital specialises in five core products to answer cash-flow issues. “We don’t have an ideal SME business that suits our products. Everyone will use one or a multitude of products.”

Prussia explains, “As a small business owner, do you have trouble paying for invoices at times? Well, First Class Capital will pay that invoice for you, giving you 6 months to pay it back in equal monthly instalments.”

With summer upon us, this enables business owners to go ahead and buy lots of stock, give the invoice to First Class Capital and get summer and autumn to pay it off. Other solutions are 6-month trading terms for businesses needing more flexibility than 30-day trading terms and business overdrafts to help cash flow when using EFTPOS facilities.

Prussia says the innovation lies in being completely automated. “There is no paperwork to sign, you just complete it online and it is done for you.” Prussia says having a seamless process, with instantaneous approval mechanisms, helps alleviate having customers waiting on the other end of the phone.

www.firstclasscapital.com.au

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Brands In Action

Page 29: Franchise Buyer Vol 4. Issue 1, 2016

A No Bricks & Mortar Franchisethat continually earns you money...

even when you’re not working!

If this sounds like you then you should be First Class Capital’s

next Franchise Partner.

As a sales person are you ready to truly reap the rewards of your efforts?

Looking for a business opportunity in a rapidly growing market?

Do you aspire to run your own business?

First Class Capital is one of Australia’s most innovativelenders, specialising in the delivery of trade finance and working capital solutions to small business. We are on the lookout for business savvy sales professionals to join our already established national network of Franchise Partners to build their ownsuccessful business in the lucrative trade finance sector.

provide comprehensive training, state of the art online systems, regular regional and national advertising campaigns, as well as on-going mentoring and support. This ensures that you have all the tools you need to build your own successful business.

Having a background in finance is not required, as we

Become part of the successful First Class Capital team today!

Call: 1800 307 903 or visit www.firstclasscapital.com.au

No Rent,No Staff,No Overheads!

Page 30: Franchise Buyer Vol 4. Issue 1, 2016

Egnatium Franchisee Advantage:- Short lead time to get started with your franchise. It takes 30 days working days to get started with your Egnatium franchise business.- End-to-End Support Egnatium provides sales, marketing and operations support by providing continuous prospecting leads.- Simplify your business by only hiring one employee to help you in your business.- Increase your Return on Effort (ROE), as 50% of your revenue will be generated from software subscription.- Reduce your operating expenses with no inventory and you can work from home or virtual office.

Learning Management

Experience Management

Competency ManagementAppraisal Management

Strategy Management

SHORTEN THE TIME TO YOUR SUCCESS WITH WORLD’S FASTEST FRANCHISE SYSTEM

Take your own experience and business skills to the next level by becoming a one- stop shop for businesses looking fro sustainable growth.

Egnatium is in the business of growing businesses

CALL NOW TO GET A FREE FRANCHISE REPORT

+61 07 3036 1152

Page 31: Franchise Buyer Vol 4. Issue 1, 2016

Egnatium Franchisee Advantage:- Short lead time to get started with your franchise. It takes 30 days working days to get started with your Egnatium franchise business.- End-to-End Support Egnatium provides sales, marketing and operations support by providing continuous prospecting leads.- Simplify your business by only hiring one employee to help you in your business.- Increase your Return on Effort (ROE), as 50% of your revenue will be generated from software subscription.- Reduce your operating expenses with no inventory and you can work from home or virtual office.

Learning Management

Experience Management

Competency ManagementAppraisal Management

Strategy Management

SHORTEN THE TIME TO YOUR SUCCESS WITH WORLD’S FASTEST FRANCHISE SYSTEM

Take your own experience and business skills to the next level by becoming a one- stop shop for businesses looking fro sustainable growth.

Egnatium is in the business of growing businesses

CALL NOW TO GET A FREE FRANCHISE REPORT

+61 07 3036 1152

How to Franchise Your Business Simply, Successfully and Cost Effectively

A re you an experienced business owner with drive and ambition and a desire to grow your business into a valuableasset and take it to the stage where you can leverage yourself out of the day to day?

Have you heard franchising could be a way to achieve this but that it can be a complicated and costly process and one which can fail – sometimes horribly?

I have been involved in the franchise world for well over 30 years now and have experienced every aspect of this sector as a business man, owning my own franchise outlets, starting and running my own franchise groups and, through the consultancy I founded, The Franchise Alliance, helping many big name groups such as Jim’s Mowing, UltraTune and Donut King and many start-ups to grow. So I know it takes much more than a set of documents to get a franchise up and running.

I know you will be creating at least two businesses, one for you, the franchisor to look after your group and one for your franchisees to look after your customers.

I also know that the process of converting your business into a franchise, taking all these issues on board, need not be complex. So I’ve created a system, my Franchise Success Path, which takes you through four simple steps, each with clear actions, so you can create your franchised business simply, cost effectively and successfully. And you do not have to do this on your own because I work with a team of experts, each person being specialised not only in their own field but also in how to apply it to a franchised business.

The team at Franchise Simply makes it incredibly easy to grow your business by duplication, with a simple system to follow and expert guidance to show you how. Get the business you love by partnering with the right people to make it happen.

• Marketing structures need to look after both selling to a customer and recruiting a franchise partner

• Budgets are critical so you can set your fees and monitor what is going on in the whole group,

• Your corporate structures need to be carefully considered to give you a level of security and some flexibility so you can easily sell your businesses in the future

• Many of you will need to establish an equitable territory system

• Then this information needs to be put into your legal and operations systems • Finally, you will need to know how to recruit and train the best franchise business partners you can to do the job you are now doing

• And support and lead these business partners of yours into a happy and profitable future

And to deal with this tiered business structure, everything has a tendency to become more complex:

Brian KeenOwner, Franchise Simplywww.franchiseSimply.com.au

or 1300 960 136

Franchise Your Business

www.FranchiseBuyer.com.au • Janaury-February 2016 • FRANCHISE BUYER 31

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Soares said, “The benefit of a good trading history, good recognition in the market, has given people a modernised take of their favourites. Consumers are much better travelled now. They want artisan breads, are more conscious of spice and global flavours, and really want to eat well.”

New CXpresso franchisees undergo four weeks of training to learn the background of the brand and operations. “In QLD and WA, we have support teams on the ground — dedicated personnel” who take partners through all the training processes from running the store, marketing, training staff, and equipment skills.

Soares added, “The feedback is that we almost overservice!” A dedicated trainer is allocated afterwards for another two weeks at no cost to the franchisee. This ensures that partners are “confident and completely capable”. CXpresso’s marketing agency also provides end-to-end marketing, including local store marketing opportunities, artwork, brand materials, and social media. This is a significant element of the rebrand. “It’s a unique part of our business, more about being nimble.”

Expansion planned outside of CBD markets in WA and QLD

n Resale stores and new sites available

n Franchisees can choose a CXpresso or a Croissant Express; all stores will be rebranded in the next 12 to 18 months

n In the next 6 months, three stores will be rebranded; Central Park (WA) is next

n Refurbishment plan under way in QLD and WA; new markets (VIC

and NSW) will be reviewed as strategy is developed

Find out more at www.cxpresso.com.au.

It’s lunchtime in Perth, a 36-degree-Celsius summer day, and customers are thronging in to purchase baguettes jammed with fresh salads and

ice-cold smoothies and take a seat to enjoy Reuben-style gourmet sandwiches. Welcome to CXpresso, the sister brand of Croissant Express and the new addition to one of Australia’s favourite bakery café chains.

Established in 1987, Croissant Express will be celebrating its 30 birthday in Western Australia next year — a heritage “very well recognised in Perth” according to CEO Neil Soares. An imminent need to modernise the brand from a takeaway sandwich shop and provide “better ambience for customers and a wider range” has seen the humble croissant brand grow to now serving award-winning coffee.

“The company that roasts our beans, “The Big Brew”, won in a barista competition held in Newcastle,” Soares explained. “A good bean is central for café culture; it helps CXpresso leverage the consumer experience. Instantly people aligned themselves with the brand, especially because we hired good baristas.” Good baristas combined with beans have now seen continuous growth in Strathpine, Logan Hyperdome, and Queen St Mall (QLD).

The new brand, a brainchild of Soares and internal stakeholders, involved new stores being built in QLD. “It was an untapped, virgin market and helped us to test things in isolation,” said Soares. A unique grab-and-go offer, bistro menu, and seating has created a contemporary feel and smooth execution of their menu.

CXpressoFinely balancing the concept of grad-and-go with seating in a relaxing contemporary space. By Leona Devaz

32 FRANCHISE BUYER • Janaury-February 2016 • www.FranchiseBuyer.com.au

Brands In Action

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Caring In-Home CompanionsSenior Helpers® was started in 2001 in the USA as the answer for seniors wanting to age in their homes independently and safely. From a single franchise in 2005, Senior Helpers® has boomed to over 300, including 13 in Australia.

In this rapidly expanding industry, Senior Helpers® franchisees connect trained staff with aged clients needing in-home help.

For an investment from $75,000 Senior Helpers® displays an unwavering commitment to the success of all its franchises. Comprehensive training and support is provided both prior to and ongoing after you start trading.

The demand for aged care services in the future will be huge. By 2030, one out of every five Australians, almost 7 million people, will be over the age of 65.

89% of seniors want to grow older without having to move from their homes. More than half are concerned about their ability to remain at home.

With a commitment as strong as Senior Helpers®, it is no wonder the average annual sales for a franchise open over a year continues to grow! Enquire NOW!

Looking to purchase a franchise & need some help with your due diligence?The Franchise Shop can assist you. Our fixed price - $495 including GST- franchise buyers assistance pack is just what you need and great value. Expert assistance from our very experienced franchise consulting team. It gives you access to a consultant to work one on one with you for up to 2 hours using Skype so no time is wasted in travel, and it can be at a mutually convenient time including outside normal office hours. Call 1300 139 557 to arrange your consult now.

The Franchise Shop can turn your business into a franchise in 4 easy steps:1. A free no obligation meeting to help us understand your business.2. A feasibility study.3. A development phase including legal document preparation.4. A marketing and sales phase.

With over 35 franchisees across the country, Kleenit it now a market leader. Servicing a number of markets including graffiti removal, with a wide range of services and therefore a variety of ways to create income for our franchise owners. Purchase from $100k.

Tile & grout restoration is a billion dollar industry in the USA. Become your own boss, increase your income & improve work/life balance! Buy a GroutPro franchise from $40k.

Wheel Change U is a mobile tyre fitting service that was founded in Newcastle in 2012 and franchising commenced in 2015. We service fleet customers, trade customers and the public. Great training and support. Purchase from $30k to $150k.

Rent The Roo rents furniture, technology, and home and kitchen appliance rentals. Established in 1976, this is a well-run, experienced franchisor. Purchase from $350k.

Croc’s Playcentre is successful because of its integration of branding, design of centres, marketing of the business, and management skills. From $650k.

Fibrenew is a mobile franchised service for restoration of leather, plastic and vinyl. With 230+ franchisees worldwide & total Investment around $80,000 Fibrenew is a great franchise.

Since 1991, Cavalier Homes has built quality homes and a reputation for excellence. Since franchising in 2002 we link-up with local builders looking to grow their business, provide competitive pricing & solid business practices. Purchase from $50k plus GST.

If you are a qualified accountant or hold tax qualifications, then running your very own TaxAssist Accountants practice can offer you the challenge you have been looking for with the support you need. Franchise Fee is $70k plus GST.

Sunspot Skin Cancer Clinics are a great franchise for medical practitioners, or experienced medical practice managers. Franchises to add to existing clinics from $55k plus equipment.

THE FRANCHISE SHOP IS PROUD TO OFFER YOU THESE EXCITING

FRANCHISE OPPORTUNITIES

Phone: 1300 139 557Email: [email protected]: www.thefranchiseshop.com.auFacebook: facebook.com/TFranchiseShopTwitter: twitter.com/TFranchiseShop

FEATURED FRANCHISE

The Time For You business provides domestic cleaning to people who need a bit of extra help around the house but our franchisee don’t do the cleaning. The Time For You franchise is a sales and management franchise Purchase from $39k plus GST.

Experience and expertiseLeading full service consultancyPremium quality at competitive priceCompetitive, Affordable, Secure, Responsive

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Boost JuiceGrowing Global

By Leona Devaz

“Love Life” is the philosophy of the Boost Juice brand, and a bumper 2015 has seen the iconic juice bar opened its 500th store in Novena, Singapore. At the helm of Retail Zoo CEO,

Scott Meneilly, the brand is laser focused on growth this year. Global franchise partners span through countries including South Africa, the UK, Estonia, and Chile and the Southeast Asian market (Boost is trading in Malaysia, Singapore, India, Thailand, and Cambodia).

While “huge opportunities” exist for Boost International, back on home turf, the brand has not really plateaued or started to slow. From a strong inception in Adelaide (the brand started in 2000), their fun and quirky aspects have kept them ahead of new competitors. With a lot of new juice bars cropping up in Australia, this is one market where being loud, different, and cheeky has paid dividends.

As one of the countries most loved brands, Meneilly said, “A lot of work was done in the early days of Boost to create strong systems and processes that could support national and international expansion, but it was the sheer speed of growth at that time, which gave the systems a trial by fire and tested every link in the chain.” A large part of their rapid expansion is also attributed to existing partners feeling confident in the brand, with over 40% of the Boost network owning more than one store.

Cross-branding opportunities exist for Retail Zoo franchise partners across the network, with Cibo and Salsa’s based on the same operating systems that made Boost so successful. Meneilly sited this as a crucial part of the national and global experience, “No matter where in the world they encounter your brand, customers need to feel that sense of familiarity and comfort that comes from walking in the door when you get home”. He added, “That kind of consistency and brand integrity can only be delivered when you have really good systems in place across the network”.

Consistency ensures that confidence remains high. The level of business intelligence provided means that store partners could drill down into specifics, i.e. sales per hour, wastage, and how many bananas have been used at a particular outlet. This transparency enables partners to log into the system, see what others are doing in the network, gain ideas, and share group power.

Having “healthy competition” fosters camaraderie. Meneilly explained, “This year, we expect to see even more store openings across our entire stable of brands. We’re forecasting about 80 new stores across the Boost, Salsa’s Fresh Mex, and Cibo Espresso networks, and we’ll be doing significant refurbishment works in existing stores as well.”

Sites AvailableCibo: Newton, Mt Barker, and Murray Bridge (all SA)

Boost: Wanneroo (WA), Grafton (NSW), Salamander Bay (NSW), Bundaberg (QLD), and Gladstone (QLD)

Salsas: Mt Gravatt (QLD), Eastgardens (NSW), and The Glen (VIC)

For more information, go to www.retailzoo.com.au.

34 FRANCHISE BUYER • Janaury-February 2016 • www.FranchiseBuyer.com.au

Brands In Action

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Keeping up with new trends and technologies is a continuing focus for Snap, which is aware that they are in a fast-changing

industry. This print, design, and website franchise network (the most successful of its kind in the Southern Hemisphere) is undergoing a major rebrand that will see them centralise on their mobile offering, while opportunities for bricks and mortar stores are still available nationally.

Snap’s Marketing Manager Cindy Haylen is enthused about the new direction, “We’re moving to a new image. It’s exciting times. The new logo, look and feel, is rolling out now. By October this year, we’ll finalise all the centres being on board.” She said that, while the business recognises print’s decline, innovation is not only coming from their digital offer but also reducing their environment footprint and being a one-stop shop.

Haylen added, “People want one solution. They don’t want a graphic designer in one place and printing in another.” The Snap model eliminates the need for separate design, print, and website offerings. “There is no switching of hands. People who do design can do the finish rather than going to a third party and getting it different from what is envisioned by the client.” From semi-gloss paper to Scodix (raised finish) and ePublications, Snap franchisees have comprehensive and high-quality solutions available to service client needs.

mobile Offering“It’s a low-cost start-up not requiring much capital

and generates an income with view to moving to a store. It gets franchisees established,” Haylen explained. “This is a huge benefit rather than having a $300K to 400K outlay.” Mobile partners operate from a van and typically “have an office somewhere and outsource the work they get to another Snap for printing”. There is no “physical store with physical equipment”, and being on the road offers a great deal of flexibility.

“Not being tied to an office appeals to people, even though it is still a Monday-Friday job,” added Haylen.

Brands In Action

Where food franchises are open seven days a week, the aspect of “not being locked down or working weekends” is attractive to mobile franchise partners, especially knowing that “when their clients are open, they are open as well”. In the last six months (since the launch), already two successful franchise owners have moved from a mobile to a physical location.

Haylen said, “Anyone can startup a Snap franchise. We’ve had people work in banks, bakeries, and a range of different industries. They don’t have to know anything about print.” One week of vigorous training is given at the North Ryde, NSW Head Office, and also, franchisees are provided with extensive resources and marketing advice. With a track record of over 100 years, the Snap brand just keeps on building.

For more information, go to www.snap.com.au.

Snap Is on the MoveBy Leona Devaz

36 FRANCHISE BUYER • Janaury-February 2016 • www.FranchiseBuyer.com.au

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So, what’s new?

Snap has always been an innovator and, again, we’re one step ahead with our New Model Centres. There’s a fresh new look and exciting products like new online services, such as websites and apps, and many other affordable ideas to help promote and grow our loyal client’s businesses faster.

What about you?

A New Model Centre is the ideal way to secure your future:

New, lower cost entry point for client’s

Less machinery to maintain

Full support & training from Snap

Huge national, loyal customer base

Work five days a week in a clean, enjoyable environment

Freedom to create your own life/work balance

Realise your potential with a Snap New Model Centre

www.snap.com.au

For more information contact Snap Franchising P : E : [email protected]

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SydneytoKickOffa Big Year for Expo

Registrations are open for the Sydney Franchising & Business Opportunities Expo on 18–20 March 2016 at the Royal Hall of Industries at Moore Park.

Visitors enjoy meeting face-to-face with the

team from Cafe2U at the Melbourne Franchising &

Business Opportunities Expo last August.

“It promises to be a very exciting event, with even more exhibitors than last year,” says Exhibition Manager Fiona Stacey.

As always, a wide range of industries will be represented at the show, including home and garden services, cafés and restaurants, mobile coffee, retail, training, financial services, entertainment and many, many more.

“We have been very happy with the response to last year’s shows, and we are thrilled that this year we are adding to our calendar an expo in Perth in May,” says Stacey.

Stacey adds that the Melbourne show in August 2015 wrapped up a huge year. “We were thrilled with the crowds of visitors who genuinely found it useful to meet face-to-face with representatives from companies they were interested in and to dig deeper into why franchising is such a successful business model,” she says.

“Many walked away with clear ideas of businesses they would like to invest in, and it is so exciting to see someone’s dream become reality.”

Stacey says both visitors and exhibitors find it beneficial to meet in person rather than confining their vital research to online and email contact.

“I think it is really worthwhile for visitors to look

through the list of exhibitors first and do some preliminary research and maybe even set up some appointments at the show. Then you can make the most of your time on the day.

Stacey adds, “The entry cost is discounted if you pre-purchase online, and there is an abundance of information available on every aspect of being your own boss. It is really time to stop dreaming and start doing.”

For more information, go to www.franchisingexpo.com.au.

Franchising & Business Opportunities Expo 2016:

SYDNEY: 18–20 March, Royal Hall of Industries, Moore Park

PERTH: 15 May, Perth Convention & Exhibition Centre

BRISBANE: 23–24 July, Brisbane Convention & Exhibition Centre, South Bank

MELBOURNE: 26–28 August, Melbourne Exhibition Centre, South Wharf

38 FRANCHISE BUYER • Janaury-February 2016 • www.FranchiseBuyer.com.au

Event

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Retail Doctor Group launches“Fit for Business” breakfast featuring

Guy Russo, CEO of Kmart:One of Australia’s Biggest Retail

Transformations

Guy Russo, CEO of Kmart, will join Brian Walker, CEO and Founder of Retail Doctor

Group, for an exclusive discussion on the transformation of Kmart into one of the most profitable department store chains in Australia.

Retail Doctor Group, with event partner CitiXsys, will host the breakfast conferences on 3rd March 2016 in Melbourne and 17th March 2016 in Sydney.

Whether you’re the CEO of a large multinational supermarket chain or the owner of an independent boutique, 2016 will no doubt bring new challenges, as the pace of change accelerates and competition from global giants heats up. So how do you transform your business to ensure you’re the “fittest” retailer in the field?

Find out from one of the industry’s leading transformers, Guy Russo, at Retail Doctor Group’s “Fit for Business” breakfasts this March.

From the brink of bankruptcy to a billion-dollar business, Russo will share his unique story on how he transformed Kmart into one of the most profitable listed department store chains in Australia, with sales of $4.5 billion in 2014–2015. Joined on stage by Brian Walker, CEO and Founder of Retail Doctor Group, audiences will leave inspired with actionable business fitness™ tips and insights to implement within their own retail business.

With Russo recently announcing plans to double the size of his department store business and drive revenue to $10 billion, these events will reveal exclusive insights into the inner workings of this transformative retail store.

“We are delighted to feature Guy Russo, CEO of Kmart, as our keynote speaker. The transformation of Kmart under his leadership in a period of great sector change is a wonderful lesson in transformational retail building business fitness. Join us to learn in this rich and informative presentation from one of the industry’s most successful leaders,” said Walker.

Described by The Australian Retailers Association as “inspiring” and “insightful”, the Retail Doctor Group “Fit for Business” breakfast series has successfully run for over six years. A well-respected and high-profile event in the retail calendar, the Retail Doctor Group “Fit for Business” breakfasts have previously hosted high-profile guest speakers such as Bernie Brookes (former CEO) of Myer, Peter Birtles of Super Retail Group, and Stuart Machin of Target.

Retail Doctor Group, with event partner CitiXsys, will host this “Fit For Business” Breakfast with Russo in Melbourne on 3rd March 2016 from 7:30 am (venue TBC) followed by the Sydney breakfast on 17th March 2016 at 7:30 am at Dockside, Darling Harbour. Early-bird tickets are available now for a limited time only at http://retaildoctorgroup.eventbrite.com/.

The event proudly supports the charity Half the Sky Foundation Australia, with the goal of enhancing the lives and prospects of orphaned children in China through development and aid projects.

www.FranchiseBuyer.com.au • Janaury-February 2016 • FRANCHISE BUYER 41

Retail Event

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Franchise Code

Dr. Michael Schaper is the Deputy Chair of the Australian Competition and Consumer Commission. www.accc.gov.au

ACCC Update:New Protections From Unfair

Contract Terms Apply to Some Franchising Agreements

By Dr. Michael Schaper

Franchisors may need to adjust terms in franchise agreements, as new laws protecting small businesses from unfair terms in standard form contracts come into play in November 2016.

Standard form contracts are offered on a “take it or leave it” basis. Often, one side to the contract will prepare the terms, leaving the other side with little or no opportunity to negotiate.

The new law will apply to standard form contracts where one of the parties has less than 20 employees and where the upfront price payable is less than $300,000 (or $1 million for multi-year contracts). This means the protections will cover some franchise agreements.

What’s unfair and who decides?The Government extended the Australian Consumer

Law to allow a court or tribunal to void unfair terms in standard form small business contracts.

The judge can find a contract term unfair if three conditions are met: Would the term cause a significant imbalance? Is it reasonably necessary? Would it cause detriment to one of the businesses concerned?

In deciding if a contract term is unfair, the judge may consider whether the term is clear and presented in plain language. The judge will also assess the term in light of

the whole contract, as there may be counterbalancing terms that limit “unfairness”.

If the court or tribunal finds a term unfair, the term will be void and treated as if it never existed. However, the rest of the contract will continue to bind the parties.

The new laws cover most terms in a standard form contract. However, terms that set out the upfront price and define the main subject and terms required or permitted by other laws or codes (such as the mandatory national Franchising Code of Conduct) are exempt from the new rules.

Possible franchising concernsThere is a 12-month transition before the law applies.

During this time, the ACCC will be working with franchisors to remove or amend unfair terms in their franchise agreements. Terms in franchise agreements likely to raise concerns include:

• Terms that allow the franchisor to unilaterally vary the agreement

• Terms that allow the franchisor to terminate the agreement without cause (i.e. even if the franchisee has not breached the agreement)

• Broad indemnity clauses that limit the franchisor’s liability more than necessary to protect their legitimate interests

• Terms limiting a franchisee’s ability to take action against the franchisor (e.g. a franchisee in WA might only be allowed to start court action in NSW)

• Terms that fine or penalise the franchisee (but not the franchisor) for breaching the agreement.Clearly, there are going to be some issues that all

franchisees and franchisors will need to be aware of, and we will be providing more information and guidance as it becomes available.

To be kept up-to-date with these new laws, sign up to the ACCC’s Franchising Information Network at www.accc.gov.au/franchisingcode or call 1300 302 021.

42 FRANCHISE BUYER • Janaury-February 2016 • www.FranchiseBuyer.com.au

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2016 International FranchiseEvents Calendar

Expos, fairs and exhibitions are great venues to learn tips fromand network with franchisors and franchisees.

Event Calendar

n 11–13 January, Hong Kong, Hong Kong, HK International Licensing Show

n 16–17 January, Montreal, Canada, Franchise Show

n 21 January, Valladolid, Spain, Franquishop

n 6–7 February, Calgary, Canada, Franchise Show

n 10 February, Sevilla, Spain, Franquishop

n 11–13 February, Houston, TX, USA, Franchise Expo South

n 16–17 February, Dubai, UAE, 8th Dubai World Franchise Forum & Expo

n 19–20 February, Birmingham, UK, British Franchise Exhibition

n 20–21 February, Toronto, Canada, Franchise Show

n 20–23 February, San Antonio Convention Center, San Antonio TX, IFA Convention

n 26–27 February, Vigo, Spain, FranquiAtlantico

n 5 March, Mexico City, Mexico, International Franchise Fair FIF

n 9–11 March, Tokyo, Japan, 32nd Tokyo Franchise Show

n 12 March, London/Olympia, UK, British & International Franchise Exhibition

n 11–14 March, Taipei, Taiwan, 2016 Taipei International Chain & Franchise Spring Exhibition

n 17 March, Zaragoza, Spain, Franquishop

n 18–19 March, Lisbon, Portugal, FIF-International Franchise Fair

n 18–21 March, Athens, Greece, KEMEXPO

n 18–20 March, Sydney, Australia, Franchising & Business Opportunity Expo

n 20–21 March, Toronto, Canada, Franchise Show

n 20–23 March, France, Paris, Franchise Expo Paris

n 8–10 April, Johannesburg, South Africa, International Franchise Expo

n 19–21 April, Doha, Qatar, International Exhibition for Franchise & Business Opportunities “FBO”

n 21–23 April, Madrid, Spain, 21st Ed. Expo Franquicia

n 28–30 April, Bologna, Italy, Franchising Retail Expo

n 6–7 May, Perth, Australia, Franchising & Business Opportunity Expo

n 8 May, Kuala Lumpur, Malaysia, Franchise International

n 12 May, Murcia, Spain, Franquishop

n 2 June, Barcelona, Spain, BizBarcelona

n 3–5 June, Jakarta, Indonesia, 14th International Franchise, License & Business Concept Expo & Conference

n 9 June, Malaga, Spain, Franquishop

n 9–10 June, Guadalajara, Mexico, Expo Franquicias EF 2016

n 15–18 June, São Paulo, Brazil, ABF Franchising Expo2016

n 16–18 June, New York City, NY, USA, International Franchise Expo (IFE)

n 17–18 June, Manchester, UK, British Franchise Exhibition

n 20–24 July, Manila, Philippines, Franchise Asia Philippines 2016

n 23–24 July, Brisbane, Australia, Franchising & Business Opportunity Expo

n 26–28 August, Melbourne, Australia, Franchising & Business Opportunity Expo

n 22 September, Madrid, Spain, Franquishop

n 28–30 September, Moscow, Russia, BuyBrand Expo 2016

n 30 September–1 October, Birmingham, UK, British Franchise Exhibition

n 6 October, Barcelona, Spain, Franquishop

n 6–8 October, Denver, CO, USA, West Coast Franchise Expo

n 7–10 October, Taipei, Taiwan, 2016 Taipei International Chain & Franchise Autumn Exhibition

n 13–15 October, Singapore, FLAsia 2016 Trade Fair

n 13–16 October, Istanbul, Turkey, Be My Dealer 2016

n 19–21 November, Cannes, France, MAPIC

n 21–27 November, Jakarta, Indonesia, Franchise Conference

n 1–2 December, Lagos, Nigeria, SME & Franchising Nigeria

www.FranchiseBuyer.com.au • Janaury-February 2016 • FRANCHISE BUYER 43

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Originals: How Non-Conformists move the WorldThe New York Times bestselling author of Give and Take examines how people can champion new ideas and how leaders can encourage originality in their organizations.With Give and Take, Adam Grant not only introduced a landmark new paradigm for success but also established himself as one of his generation’s most compelling and provocative thought leaders. In Originals, he again addresses the challenge of improving the world, but now from the perspective of becoming original: choosing to champion novel ideas and values that go against the grain, battle conformity, and buck outdated traditions. How can we originate new ideas, policies, and practices without risking it all?Using surprising studies and stories spanning business, politics, sports, and entertainment, Grant explores how to recognize a good idea, speak up without getting silenced, build a coalition of allies, choose the right time to act, and manage fear and doubt; how parents and teachers can nurture originality in children; and how leaders can fight groupthink to build cultures that welcome dissent. Learn from an entrepreneur who pitches his start-ups by highlighting the reasons not to invest, a woman at Apple who challenged Steve Jobs from three levels below, an analyst who overturned the rule of secrecy at the CIA, a billionaire financial wizard who fires employees for failing to criticize him, and a TV executive who didn’t even work in comedy but saved Seinfeld from the cutting-room floor. The payoff is a set of groundbreaking insights about rejecting conformity and improving the status quo.DIGITAL: Download on Kindle

Inspired ReadingLet’s start the year with three of the most

anticipated business books of 2016.

Superbosses: How Exceptional Leaders master the flow of TalentWhat do football coach Bill Walsh, restaurateur Alice Waters, television executive Lorne Michaels, technology CEO Larry Ellison, and fashion pioneer Ralph Lauren have in common? On the surface, not much other than consistent success in their fields; below the surface, they share a common approach to finding, nurturing, leading, and even letting go of great people. The way they deal with talent makes them not merely success stories, not merely organization builders, but what Sydney Finkelstein calls superbosses. They’ve all transformed entire industries.After 10 years of research and more than 200 interviews, Finkelstein has concluded that superbosses exist in nearly every industry, from the glamorous to the mundane. If you study the top 50 leaders in any field, as many as one-third will have once worked for a superboss.While superbosses differ in their personal styles, they all focus on identifying promising newcomers, inspiring their best work, and launching them into highly successful careers while also expanding their own networks and building stronger companies. Among the practices that distinguish superbosses: they create master-apprentice relationships, they rely on the cohort effect, and they say good-bye on good terms.By sharing the fascinating stories of superbosses and their protégés, Finkelstein explores a phenomenon that never had a name before, and he shows how each of us can emulate the best tactics of superbosses to create our own powerful networks of extraordinary talent.DIGITAL: Download on Kindle

How to Have a Good Day: Harness the Power of Behavioral Science to Transform your Working LifeIn How to Have a Good Day, economist and former McKinsey partner Caroline Webb shows readers how to use recent findings from behavioral economics, psychology, and neuroscience to transform our approach to everyday working life.Advances in these behavioral sciences are giving us ever better understanding of how our brains work, why we make the choices we do, and what it takes for us to be at our best. But it has not always been easy to see how to apply these insights in the real world—until now.In How to Have a Good Day, Webb explains exactly how to apply this science to our daily tasks and routines. She translates three big scientific ideas into step-by-step guidance that shows us how to set better priorities, make our time go further, ace every interaction, be our smartest selves, strengthen our personal impact, be resilient to setbacks, and boost our energy and enjoyment. Through it all, Webb teaches us how to navigate the typical challenges of modern workplaces—from conflict with colleagues to dull meetings and overflowing inboxes—with skill and ease.Filled with stories of people who have used Webb’s insights to boost their job satisfaction and performance at work, How to Have a Good Day is the book so many people wanted when they finished Nudge, Blink and Thinking Fast and Slow and were looking for practical ways to apply this fascinating science to their own lives and careers.A remarkable and much-needed book, How to Have a Good Day gives us the tools we need to have a lifetime of good days.DIGITAL: Download on Kindle

Reading

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Technology

forge—Visually Brainstorm: Inspire. Organize. Create.By Co InteractiveBrainstorm Visually—Great ideas start with brainstorming inspiration, notes, and sketches. Forge is a visual brainstorming tool for your iPad. Collect inspirations, organize ideas on project walls, and create sketches, storyboards, moodboards, and more. Inspire * Pull In Inspirations * Push Out Solutions. Organize—Keep your workflow fast and fluid: Organize, arrange, and synthesize your images, notes, and concepts at the wall then step back to examine your progress and find patterns to discover the best way forward. Arrange * Group * Pocket. Create—Create and shape your ideas with all the essential tools. Sketch out concepts, put down notes, annotate over images, and crank through drafts to push your ideas ahead. * Sketch & Write * Smart Zoom * Layer & Copy * Fluid Paper. DOWNLOAD

App ChatLet’s start the year with three of the best productivity apps of 2015.

DO Note by IfTTTby IfTTTDO Note is a personalized notepad for the notes you take most frequently. Save time by connecting DO Note to Evernote, Google Drive, Gmail, Facebook, Tumblr, Twitter, Dropbox, Slack, Google Calendar, Pushbullet, and hundreds more apps and devices you use everyday. Add the DO Note widget to your notification center for lightning fast notes. Popular ways to use DO Note: * Create an event on Google Calendar * Save short notes on the fly with Evernote * Post status updates to Facebook, LinkedIn, Twitter, or Tumblr * Set the temperature on your Nest Thermostat * Add to a shopping list on Google Drive or Evernote * Keep a list of potential recruiting leads in Dropbox * Make a packing list on Google Drive * Send a message to a Slack room * Add new tasks to Todoist * Thousand more recipes. DOWNLOAD

fullContact—Contact managerby fullContact Inc.Stay fully connected and master your contacts. FullContact lets you easily access the contact information you need to make connections on the go, add social profiles and photos to your contacts, clean and merge duplicate contacts, and quit wasting time on contact management. * Combine address books * Backup contacts * Keep in sync * Merge duplicates * Add tags and notes * View photos * Add context * See company info. FullContact is free to download and use. FullContact Premium: * Scan business cards * Capture Email signatures * Sync multiple accounts. FullContact Premium is available by subscription and unlocks all of the features above. Two subscription options: FullContact Premium monthly for $9.99 and FullContact Premium annually for $99.99. DOWNLOAD

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