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Inside Franchising Newsletters 2012

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2012

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May 2012 - Newsletter 197  - Latest edition

April 2012 - Newsletter 196

March 2012 - Newsletter 195

February 2012 - Newsletter 194

January 2012 - Newsletter 193

2011

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2012 MAY

Michael Cavanagh

Inside Franchising Pty Ltd

What do you get when you buy a Franchise?

When someone takes that very first step to buy a business, they often make assumptions about what they are in fact buying.

A stand-alone business may consist of premises, plant and equipment, goodwill, trademarks and brands, stock and intellectual property. When the business is sold – all or part of the business may be sold and care must be taken to understand what is included in the sale – and more importantly how each of those parts of the business are valued.

But a franchise is not a stand-alone business. It is distinct within the Australian business landscape and prospective franchisees should take the time to understand quite clearly what it is that they are buying.

In essence, Franchises are licenses to operate a business inside a brand and operating structure. The implications of this can be easily understood when you consider that when a franchise business is sold without the benefit of its franchise image or name then the sale would really only consist of its stock, plant and assets as little goodwill would be likely to remain.

So when you buy a franchise what in fact are you buying?

While there can be no universal answer to such a broad ranging question – there are some elements that tend to be common to many franchise systems. These elements can include:

• The use of the Brand – and its place in the marketplace.

• Training and support.

• Operating systems – financial, reporting, procurement, staff recruitment and training, marketing and sales.

• Consistent market presentation.

• Marketing.

• Type of premises – sometimes leased, but can also be home-based

• Product sourcing and buying.

So when you are looking to buy a franchise become familiar with what you are in fact buying. Only when the Franchisee and the Franchisor are both clear about what is being bought and sold can they be assured that their relationship has begun on a sound footing.

Michael Cavanagh

Inside Franchising Pty Ltd

Licensed Business Broker

License Number:  3539811

Michael Cavanagh is executive Director of Inside Franchising Pty Ltd, a franchised business advertising and broking company.  His advice here is intended as guidance only.

If you have a question for Michael Cavanagh, email it to michael@insidefranchising.com.au

 

 

Enjoy the benefits of the Outside Concepts franchise program

There are many benefits in being a franchisee compared with owning and running your own business and you can increase these benefits if you buy into the right franchise.

For example, not all franchises can be based from home. This is a key benefit if you’re looking to keep your start-up and running costs down as offices and buildings can be expensive to purchase, lease and maintain.

Outside Concepts’ franchisees don’t need to maintain expensive offices or showrooms. You can work from your home and meet customers where you’ll do the bulk of your work – at customers’ homes. Another advantage of being able to run your Outside Concepts franchise from home is that you don’t need to staff an office or showroom. As well as further reducing overheads, this will also free you up and enable you to work the hours you want.

Right now, Outside Concepts has franchise opportunities available in Melbourne, Canberra, Sydney, Brisbane, Adelaide and Perth, so if you’re looking for a franchise, Outside Concepts could be looking for you.

As well being your own boss, enjoying the advantages of a home-based business and working the hours you want, Outside Concepts provides many other key benefits for franchisees:

• Low start-up and running costs

• A unique, proven franchise program that has been running for more than 20 years

• The training and support you’d expect from a nationally successful franchise

• Excellent earning potential in a secure and stable industry

• No previous industry experience is required

Do you have what it takes to help more Australians improve their homes and outside lifestyle?

Click here for more information about Outside Concepts Franchise Opportunities

 

 

Are you in need of a technical writer to assist in the development of your Franchise Operations Manual?

As any franchisor knows, a substantial part of any franchising program is the work done to ensure it becomes a ‘replicable unit’ – that is, a business whose operation can be can practically and effectively transplanted.

The cornerstone of this process is the development of a franchise Operations Manual. Having an inaccurate or incomplete Operations Manual will almost certainly doom a franchise to failure and that’s not what you want for your business, is it?

SR Group’s team of highly qualified professionals listen to the needs of your business and apply their diverse expertise ensuring you receive a quality Operations Manual to allow the effective setup and support of your business.

To discuss your business requirements further, please contact Glenise Anderson on 0418 482 450 or glenise.anderson@srgroup.net.au

 

Clark Rubber Shellharbour named 'National Best Practice Franchise of the Year'

Clark Rubber Shellharbour has been recognised as the brand’s best store in Australia, taking out the ‘National Best Practice Franchise of the Year’ at the 2012 Clark Rubber Annual Conference held in Darwin last month.

The annual conference brought together Clark Rubber’s national network of franchisees to celebrate and recognise excellence across the business, with Clark Rubber's Shellharbour store victorious over 78 other stores to take home the top accolade.

Owners Joanne and David Matthews were surprised when their store was awarded this year’s top prize.

"We were extremely shocked to have picked up the top gong. This is the first time we've won the National Award – it’s incredibly exciting and I think we're all still a bit overwhelmed," Joanne said.

2012 marks the thirteenth year that Joanne has been the franchise owner of the Shellharbour Clark Rubber and in that time Joanne has helped grow and establish the business into one of the most successful within the Clark Rubber network.

"While this is a great achievement, none of it would have been possible without the ongoing support of our wonderful staff, our franchisor and the community. It's been so rewarding growing our franchise into what it is today."

"This award is a real credit to our dedicated staff for their ongoing hard work and contribution to the success of our store. We wouldn't have been able to achieve what we have over the years without them," Joanne continued.

Stores nominated for both the State based and National awards were judged across a number of key areas including year-on-year sales increases, participation in staff training, compliance with the Clark Rubber model and store merchandising standards among others.

Joanne and David, along with the network’s other regional award winners, were presented their awards at the conference’s Gala Dinner in the company of 300 of their peers, suppliers, and Clark Rubber associates.

“The Conference in Darwin was an opportunity for our network to reflect on the success of the past year and to recognise our members’ ongoing commitment to quality retailing and serving their local community with helpful service and advice,” said Gary Nye, Chief Operating Officer, Clark Rubber Franchising.

“We are fortunate to have a group of members who are passionate about independent retailing and are committed to the Clark Rubber brand. The National Award along with our five Region Awards
are our opportunity to recognise the excellence across our store network and I’d personally like to congratulate this year’s winners,” said Gary.

The annual conference also recognised Clark Rubber’s key suppliers, with a number of awards dedicated to the recognition of the importance and value of the relationship between suppliers and Clark Rubber.

Beating a number of other suppliers including Dunlop Foams, Zodiac and Hunter Products, Roadgear was recognised as Clark Rubber’s best supplier by winning the ‘Supplier of the Year’ award at the annual conference.

Shane Davies, Roadgear’s National Account Manager for Clark Rubber was thrilled to have won the award.

“Winning this award serves as recognition and validation of the flourishing business relationship between Roadgear and Clark Rubber. This award proves to us at Roadgear that not only are we a quality supplier, but our ongoing support of the Clark Rubber brand is clearly working,” said Shane.

“As a long term supplier to Clark Rubber it’s always been our goal to provide a consistently high level of service, and with that in mind we’re hoping we can up the ante and win this award again next year!” Shane continued.

Clark Rubber is a proud 65-year-old Australian brand that has established itself as an icon of the Australian retail landscape. Clark Rubber is a leader in the foam, rubber and modular swimming pool retail market.

Clark Rubber National and State Franchise of the Year Winners:

• National Clark Rubber Franchise of the Year Clark Rubber Shellharbour, NSW – Joanne and David Matthews
  
• QLD & Northern NSW Clark Rubber Franchise of the Year Clark Rubber Rockhampton, QLD – Roly and Heidi Humphries
  
• NSW & ACT Clark Rubber Franchise of the Year Clark Rubber Shellharbour, NSW – Joanne and David Matthews
  
• VIC EAST Clark Rubber Franchise of the Year Clark Rubber Narre Warren, VIC – Mike and Andrea Smith
  
• VIC WEST & SA Clark Rubber Franchise of the Year Clark Rubber Horsham, VIC – Graham and Joanne Keay
  
• WA & NT Clark Rubber Franchise of the Year Clark Rubber Midland, WA – Mike and Debbie Safet
  
• Clark Rubber’s Supplier of the Year Roadgear, VIC – Rubber products supplier

Click here for more information about Clark Rubber Franchising Opportunities

 

Meet the Franchisor of Aussie Skip Bags

Earle Garrett

Aussie Skip Bags is a franchise on the move. Having grown to now boast 20 franchisees, we thought that it was time that our readers met the man behind the franchise, Earle Garrett.

Earle is a qualified JP and spent fifteen years in the building and construction industry as a workplace trainer and assessor for delivering work place health and safety before deciding to start Aussie Skip Bags.

Based on the Sunshine Coast, Earle assists Aussie Skip Bags' franchisees to build successful franchised businesses. To make sure that the business runs smoothly, Earle and his team have developed innovative IT systems which includes a website that acts as a portal for customers to order bags and pickups as well as scheduling jobs and making payments. All this means that franchisees have complete control of the cash flowing into their business.

Earle is also keen to link the franchise with worthwhile causes and has recently aligned Aussie Skip Bags with the Glen McGrath foundation with $1 per bag being donated to the charity.

Well done Earle!

Click here for more information about Aussie Skip Bags Franchising Opportunities

 

If you are interested in Health and Safety - this will interest you!

Under Australian and New Zealand Occupational Health & Safety (OH&S) requirements, employers now have a duty of care to implement procedures for the safety inspection and testing of low voltage single phase and poly phase, (eg 240V and 415V) electrical equipment. Electrical testing and tagging has become the hot new business opportunity to be a part of.

Once you generate a client you have created an on-going income and not just a one off sale and every 3, 6 or 12 months most of the clients will require re-testing of their equipment.

SafePower Test & Tag Systems are looking for people are focused on building a successful home based business.

Click here for more information about SafePower Test & Tag Systems Franchising Opportunities

 

Successful Retail Franchise for Private Sale

A Great Opportunity

 

Industry	Workplace Safety Retail Sales and Distribution
Suited to	The ideal fit for this business would be a mature age husband and wife or dynamic team with a combination of Sales and Administrative abilities, who have the time, money and enthusiasm to drive the business forward.
Price	$229,000 + SAVs (approx. $90,000)
Location	Gold Coast
Territory	Gold Coast - Northern New South Wales
Staffing	Currently 1 full time internal, 1 full time Sales Representative and 1 full time Business Manager/Sales Manager
Details of business	Established 2007.  A successful retail store with additional business to business sales using display van.  Large established customer base, with growth and expansion opportunities throughout southern Gold Coast / Northern NSW areas.

 Click here to request more information about this business opportunity

 

APRIL

        Michael Cavanagh

        Inside Franchising

Why you shouldn't let your reason for selling a business determine the sale price

 

People sell their business for many reasons. Usually, there is no single reason, but often many reasons converge together to convince the business owner to take the step of putting their business on the market. However, at the end of the day, every seller should try to maximize the sale price of their business to ensure that they are adequately compensated for all of their years of hard work and dedication.

Some of the most often heard reasons given for the sale of a business include the need:

• to release capital or funds invested in the business;

• to find a larger partner to grow the business;

• to reward a loyal management team by allowing it to participate in the ownership of the business;

Other reasons may include:

• The business may have become too big for the existing owners to manage;

• Retirement may be looming;

• The next generation may be unwilling to become involved in the business;

• Family concerns may be forcing the owner to sell; or

• There may be conflict between the franchisee and the franchisor.

Given these situations, sales that result from an emergency situation should, if at all possible, be handled with as much care and diligence as that involving a planned retirement. In particular, business plans, strategies, marketing plans, customer records, core financials, supplier details as well as the physical look and feel of the business should be prepared with due consideration to the impression that these documents and appearances will create in the mind of the buyer. A well-presented business, like a well-presented house will always attract a higher sale price than one that is poorly or inadequately presented.

The time you take to get your business for sale will determine your sale price. Don't let your need for a sale determine the price that someone will pay.

Michael Cavanagh

Inside Franchising Pty Ltd

 

Australian Franchise Inducted into EmbroidMe Hall of Fame

 

The franchisees of EmbroidMe Ringwood were inducted into the EmbroidMe Hall of Fame at the group’s recent World Expo in Las Vegas.

The team of Andrew Leong and Frank & Nancy Conte became just the fourth Australian franchisees to be voted by their peers to join the illustrious Hall of Fame club at the US-based franchise’s annual convention at the Rio Hotel in Las Vegas.

The partnership opened their first location in Ringwood, Vic in 2005 and soon thereafter purchased a second location in Dandenong.  They have since centralised production into the Dandenong facility and this has allowed them to streamline their businesses and allow them to continue to grow both stores.

Each partner has their own specific role in the business; Leong manages the sales department at Dandenong, Nancy Conte manages sales at Ringwood whilst Frank controls the production back of house, allowing each to stay clear of the others’ responsibility and focus on satisfying customers.

In 2011, both of their locations were in the Top 10 for overall sales volume in Australia and both were in the Top 20 globally. 

The team at Ringwood join franchisees from North Sydney (NSW), Malaga (WA) and Frankston (VIC) in the Hall of Fame club.

EmbroidMe is the world’s largest promotional marketing franchise with over 300 locations worldwide and almost 40 in Australia. 

Click here for more information about Embroidme Franchising

 

Successful Retail Franchise for Private Sale

A Great Opportunity

 

Industry	Workplace Safety Retail Sales and Distribution
Suited to	The ideal fit for this business would be a mature age husband and wife or dynamic team with a combination of Sales and Administrative abilities, who have the time, money and enthusiasm to drive the business forward.
Price	$229,000 + SAVs (approx. $90,000)
Location	Gold Coast
Territory	Gold Coast - Northern New South Wales
Staffing	Currently 1 full time internal, 1 full time Sales Representative and 1 full time Business Manager/Sales Manager
Details of business	Established 2007.  A successful retail store with additional business to business sales using display van.  Large established customer base, with growth and expansion opportunities throughout southern Gold Coast / Northern NSW areas.

 Click here to request more information about this business opportunity

 

 

Night Owl Convenience

 

 

Click here for more information about Night Owl Convenience

 

 

Australian Food Service joins forces for supply chain

Australasia’s foodservice players have joined together to improve supply chain processes and standards in the foodservice sector; and are now calling on industry participants to get actively involved.

 

Key suppliers, manufacturers and distributors from the foodservice sector have formed the GS1 Australasian Foodservice Industry Steering Group (FISG), with the aim to drive improvements in cost efficiencies, methodologies and traceability in the foodservice supply chain.

A group as diverse as the industry itself, the FISG members include PFD Food Services, GS1 Australia, McCain, Bidvest, Snap Fresh, NAFDA, Food SA, Countrywide Australasia, Simplot, Foodservice Suppliers Association of Australia, National Foods and Nestlé Australia. Mr Mandeep Sodhi, B2B and Supply Chain Technology Manager for Nestlé, has been formally appointed to the role of Chairman of the FISG.

GS1 Australia is a not-for-profit organisation that brings industry communities together to solve supply chain challenges and improve efficiencies through the voluntary adoption and implementation of GS1 Standards, including product identification, tracking and data sharing. More than 16,000 businesses across a wide range of industries rely on GS1 Australia for maximizing the efficiency, visibility and security of their business processes.

Ms Maria Palazzolo, CEO of GS1 Australia, said forming the FISG is a momentous step forward for the foodservice sector.

The FISG has set up two working groups to deliver results to all participants: Numbering & Bar Coding and eCom. Richard Cohen, CIO of PFD Food Services, was elected as head of the eCom working group. Steve Johnson, IT Project Manager at Bidvest, also joined the eCom working group The FISG will also focus on traceability for the foodservice industry.

 

SIGNARAMA Dandenong wins yet another award

 

Ross Wade, owner of SIGNARAMA Dandenong wins the President’s Award for the third time in recognition of his services to SIGNARAMA’s Marketing Fund Board.

SIGNARAMA, a leading franchise organisation and part of the United Franchise Group recently held its annual World Expo in Las Vegas, bringing together franchisees from around the world to learn more about their craft, exchange ideas, meet new owners and establish new relationships. This year, Ross Wade, owner of SIGNARAMA Dandenong was proud to receive the President’s Award from SIGNARAMA President Jim Tatem for the third time, one of only two recipients from around the world. The awardees are specially selected by the President in recognition of their services to SIGNARAMA’s community of franchisees. Ross Wade was honoured for his dedication to the brand and his selfless service on SIGNARAMA’s Marketing Fund Board for its franchisees.

Ross and Pam Wade have been running the largest SIGNARAMA store in Victoria for the past 14 years and provide tailored signage and branding services to businesses large and small. After setting up the business with his brother Peter in 1998, Ross assumed full ownership in 2007, specialising in large sign engineering, re-branding services and management systems. One of his major achievements was the establishment of the Australian Advertising Fund of which he was President for two terms, stepping down from the role in October 2011. In addition to being an inductee in the SIGNARAMA Hall of Fame he was also a recipient of the Most Valuable Player (MVP) award. Wade is also an active SIGNARAMA mentor, helping other franchisees establish themselves in the signage business.

About SIGNARAMA: SIGNARAMA, a part of United Franchise Group, is the world’s largest sign and graphics franchise spread across 50 countries with an award-winning network of signage centres in over 850 locations. The franchise has been serving communities with quality products and customer service through its network of franchisees to help businesses build their brand image for over 25 years. SIGNARAMA provides franchisees with training, consulting, equipment, and support required to run successful signage stores.

Click here for more information about Sign*A*Rama Franchising

 

Great business opportunities at the UFG North Queensland Roadshow

United Franchise Group, one of the world’s leading business services franchisors, to host the North Queensland Franchise Roadshow to spread awareness of its unprecedented leadership and solid business opportunities for entrepreneurs.

United Franchise Group, the world’s leading franchise development service and award-winning business-to-business brands that include SIGNARAMA, EmbroidMe, Billboard Connection, and Plan Ahead Events are all set to bring the world of franchising to north Queensland. The North Queensland Franchise Roadshow is a part of the group’s effort to promote awareness about the myriad opportunities available to budding entrepreneurs as franchisees. For many, this could be an excellent chance to be a part of a $500 million industry with great potential for growth.

Joe Melhem and Patrick Ryan, Regional Sales Managers for the United Franchise Group will hold a series of meetings with people in Bundaberg, Gladstone, Rockhampton, Mackay, Townsville and Cairns between May 14th and 25th. For further details and pre-registration click here

Entrepreneurs looking to profit from the signage industry can become a part of SIGNARAMA, the world’s largest signage franchise. EmbroidMe, with over 400 outlets around the globe is another excellent franchise opportunity in the embroidery and promotional marketing industry. In a business world where brand identity is essential for growth, promotional products are in great demand. Many EmbroidMe franchisees have seized this chance to be a part of UFG’s success story.

Billboard Connection allows franchisees to become outdoor advertising specialists and offer a full range of services from location analysis and account service to graphic design and printing. To be an integral part of corporate event planning there are franchisees available in Plan Ahead Events, an excellent home-based business opportunity. So, if you are looking start your own business, it is time to register for the North Queensland Franchise Roadshow.

About United Franchise Group – UFG is a successful business services franchise system that specialises in signage systems, embroidery and promotional products, outdoor advertising, and event planning. The company has over 25 years of experience with more than 1400 franchisees worldwide.

Click here for more information about United Franchise Group Franchising

 

ACCC takes action against Safety Compliance Pty Ltd

 

The Australian Competition and Consumer Commission has instituted proceedings against Safety Compliance Pty Ltd and three individuals related to the company.

The ACCC alleges false and misleading conduct and coercion by Safety Compliance in relation to sales of workplace safety materials to small businesses.

Safety Compliance operates its business from Tweed Heads, NSW.

The ACCC alleges that from about June 2010, Safety Compliance represented during unsolicited telemarketing sales calls to small businesses that:

• state and territory workplace health and safety laws required businesses to maintain information and materials of the same nature as the workplace safety materials offered for sale by Safety Compliance, when in fact such laws did not;

• Safety Compliance was a state or territory workplace health and safety agency, or was affiliated with the relevant state or territory workplace health and safety agency, when in either case it was not; and

• certain persons had agreed to purchase the workplace safety materials when those persons had not agreed to do so.

The ACCC also alleges that when making the telemarketing sales calls and in subsequent communications with potential small business customers, Safety Compliance coerced those businesses to purchase materials sold by Safety Compliance.

The ACCC is seeking declarations that Safety Compliance contravened the Trade Practices Act 1974 and the Australian Consumer Law (contained in Schedule 2 to the Competition and Consumer Act 2010) and that its shadow director, general manager and director were involved in certain of the alleged contraventions by Safety Compliance.

The ACCC is further seeking orders that the three individuals be disqualified from managing a corporation.

The ACCC is also seeking:

• injunctions

• pecuniary penalties

• a disclosure order

• an adverse publicity order, and

• costs.

A directions hearing is listed for 18 June 2012 in the Federal Court, Sydney.

 

2012 MARCH

 

Is Your Franchise Ready for the Growth to Come?

In a radio interview on the ABC earlier this week, Stuart Grimshaw, CEO of the Bank of Queensland spelt out the reasons behind the banks intention to raise more than $400 million in additional capital. In an honest assessment he confirmed that the bank was forced to do this as a result of declining property values on the Gold Coast, the Sunshine Coast in Queensland and other localities across Australia.

In writing down the value of loans made against Residential property, Grimshaw was confirming what most people in Small Business already know: that they cannot rely absolutely on the perceived equity of their family home to fund their business venture. If they do this and the value of their family home declines then they may have to source other funds to support their business loans or risk going out of business.

This also partly explains why banks are becoming more and more reluctant to lend against "the value of the business" with the shortfall made up from equity in the family home. While the business may be solid, the value of the family home may not.

When asked how long this situation would last, Grimshaw commented that he could not see residential property values increasing much over the coming 12 months. After that, we might see some movement.

So what does that mean for Franchised businesses? At the very least, it means that finding qualified Franchisees –that is those with the necessary capital will remain difficult for at least the next 12 months. After that though, if real estate values increase then there could be an increasing number of people who may be able to borrow the funds necessary to but a franchise from the larger banks using the increasing equity in their family home as collateral. Once this happens then Franchisors who are positioned for growth will be the ones that can most effectively take advantage of the changed economic conditions. The question is, "Is your Franchised business ready to take advantage of the economic upturn when it starts or are you watching and waiting?"

Michael Cavanagh

 

Bedshed's, Gavin Culmsee Surprised by the Demise of Sleep City

Gavin Culmsee, Chief Operating Officer of specialist bedding franchise, Bedshed, said he is unsurprised by their competitor Sleep City’s appointment of administrators recently.

“We are experiencing the toughest retail market in a decade and it is clear from Sleep City’s collapse that not all retailers are in a position to weather the storm.  When times are tough, having a network of franchisees driving their own business, combined with the buying power of a large group and a business model that, in our case, has stood the test of time, arms retailers with the weapons they need for what is shaping up to be the greatest fight of their lives. While the news is disappointing for the prevailing retail market in Australia, Bedshed has never been stronger. We’re currently growing on the east coast of Australia and as we prepare to enter our 30th year of franchising, our franchisees are enjoying the prospect of a very bright future.

Our understanding is that 450 Sleep City and Everyday Living jobs are now precariously balanced and we imagine many of those employees will be looking for more stable employment. Bedshed is seeking experienced industry people to grow our franchisee network and we would be keen to talk to any Sleep City or Everyday Living employee about the Bedshed franchise opportunity that would offer them control over their employment, the strength of a well-established brand and support from an experienced network of franchisees and staff.

The Bedshed Franchise Calculator, a new online tool to assess the profitability of a franchise, demonstrates just how strong the Bedshed offering can be and I would urge anyone considering taking that step to see how the numbers stack up.”

Click here for more information about Bedshed Franchise Opportunities

 

Making Dough in the Margaret River, the Brumby's Way

In 2003, Daniel and Sian Hockridge moved to from the hustle bustle of Perth to the perfect escape of Margaret River. Daniel, a Depot Manager and Sian, a Secretary were then looking to buy a small business. For the past 9 years they have been the successful owners of the local Brumby’s Bakery. As Margaret River is small town Daniel and Sian knew the previous owner quite well, so after making initial enquiries they sent the figures to their accountant for assessment. Brumby’s was the first business that the accountant actually got excited about and thought had potential!

Sian said “we were inexperienced in small business, so we wanted the security and training that comes with a proven business model, such as a franchise”. After speaking to other Brumby’s franchisees, they made the decision to purchase the business based on positive feedback from Brumby’s franchisees and the advice of their accountant. Finance was arranged by borrowing against the business and contributing collateral for the balance, then they were up and baking, making dough!

As with every business, there have been challenges. “The main issue for us has always been staffing, especially finding bakers. About 4 years ago we decided to sponsor our first overseas baker on a 457 Visa.  Since then, we have employed 4 Vietnamese bakers. Although this has not been without its frustrations, we have had the security of reliable staff since then” said Sian.

Sian describes her typical day: “If I am working a shift in the bakery, I start at 5.30am, have a coffee and chat with the bakers about the day’s production, set up shop and open at 6.30am.  I generally work through until 3pm.  I try and devote 2 half-days a week to book-work and general day to day admin. It has been extremely hard work, but the rewards are there. Yes, we are tied to the business, but it is our choice to work the number of hours that we do. Luckily, we are now at the stage that if we want to take the day off, we can afford to do so.”

The decision to become a small business owner is usually focused around lifestyle and family, it is a decision that will change your life. “We believe owning a franchise has allowed us to become more financially independent, and quicker than if we had continued working for somebody else.” Would they do it again? “Yes, definitely!” In fact Daniel and Sian have plans to set up a second Brumby’s or Brumby’s GO!  store and their goal “is to bring that one up to the same level of turnover and efficiency as our existing store.”

Some words of advice from Sian and Daniel to anyone thinking of buying their first franchise:

“We believe franchising is the best option for someonewho has never had their own business as the business model is already in place and obviously working well.  Issues such as finding reliable suppliers, advertising, pricing and the like are already worked out for you, leaving you to concentrate on working on your business. Make sure you spend the time training staff to your standards.  Again, there are many resources available from RFG.  It is important to remember that your staff are only as good as the training you provide them with. “

It’s a great way to make some dough!

Brumby’s Bakery is part of Retail Food Group - Australia’s largest multi food brand franchisor with over 1130 outlets including Donut King, Esquires Coffee Houses, Brumby’s Bakery, Michel’s Patisserie, bb’s café and Big Dads Pie’s brands.

Click here for more information about Brumby's Franchise Opportunities

Click here for more information about the Retail Food Group Franchise Opportunities

 

Happy Birthday to The Interface Financial Group

On a Thursday, late in April 1972, The Interface Financial Group was born when John Sheehy bought his first single invoice. Since that day Interface has grown from a one-location invoice discounter to an international organisation.

Along the way Interface changed their business model to make growth more attainable on an international level. This was achieved through the creation of a unique franchise model.  John Sheehy, the Interface founder, was innovative from day one when he created a transactional approach that allowed his client to sell just one invoice to cover an immediate cash need.

That innovative streak has been inherent in their approach to business over the past four decades.  They have created a business approach that is specifically geared to helping small business owners accelerate their cash flow, and doing so in a financial climate when other more established funders are exiting from the SME marketplace.

This in-demand service has been crafted into an innovative franchise offering that allows individuals to enter the financial service market with an established and well-proven model. It has been purposefully designed as a home-based business with a substantial emphasis on client service. To this end transactions are often concluded in a matter of 2 or 3 days as opposed to the more traditional 2 to 3 weeks, or more.

Interface is securely established in seven countries, including an Australian base in New South Wales and another serving Western Australia in Perth.  The Interface innovation was again prevalent as they crafted their Australian operation along the lines of a ‘spot factoring’ approach in order to re-enforce their commitment to the SME marketplace. Invoice Discounting in Australia is often a service geared to companies with substantial turnovers and large financing requirements.

In celebrating 40 years in business Interface continues to expand their Australian operation and they are currently looking for seasoned executives that are seeking the challenge of self-employment and entrepreneurship, in a growth environment.

Click here for more information about The Interface Financial Group Opportunities

   

United Franchise Group Supports Young Entrepreneurs

The United Franchise Group (UFG), The Global Leader for Entrepreneurs, today announced the winners of its J.J’s Entrepreneurs Business Plan competition in partnership with Palm Beach Atlantic University. Jared Stresen-Reuter, a senior majoring in marketing, was awarded the grand prize of $10,000 for his idea of a social media site, named Toodol, which allows its users to post local events telling, explaining and even showing details about events going on in their area.

The competition was developed to encourage and teach young students about the benefits of entrepreneurship and owning their own business and involved creating a business plan. The second-place recipient, freshman Jude Abeler, was awarded $5,000 for Thoughtstream, described as a structured new millennium journaling technique for today’s thinkers.

“I’m very excited and honored to be the recipient of the first J.J.’s Entrepreneurs award,” said Stressen-Reuter. “The money is great, but the partnership with J.J. Prendamano and Ray Titus is worth everything,”

Students participating in the competition were mentored by business leaders Ray Titus, CEO of UFG and J.J. Prendamano, who together have more than 75 years of experience in business and franchise industries. A panel of judges representing members of the business community as well as University faculty and administrators reviewed the plans and chose the winners.

“We are thrilled to honor Jared Stresen-Reuter for his innovative idea and it was very inspiring working with all the students involved in the competition,” said Ray Titus, CEO of UFG. “We hope to continue supporting our future entrepreneurs to accomplish their dreams.”

The J.J.’s Entrepreneur competition is part of a five-year $75,000 commitment to Palm Beach Atlantic University made by UFG. UFG is made up of five industry-leading franchise brands including SIGNARAMA, the world’s largest full-service sign business; EmbroidMe, the world’s largest embroidery franchise; Billboard Connection, a home-based advertising agency; Plan Ahead Events, a home-based event planning business; and TransWorld Business Advisors, a business brokerage and franchise development services firm. In 2010, UFG developed nearly 200 new franchises and projects its growth trend to continue in 2011 with a goal of adding up to 300 new franchise locations around the world.

Click here for more information about the United Franchise Group Franchise Opportunities

 

 

Brett Sloane Explains How Owning an RP Vending Business Improved His Life

 

 

Brett first heard about RPV from his Bookkeeper who had been in to see Patricia Giordano in North Ryde to become familiar with the business model.   They researched many opportunities.  Brett and his wife Michelle went to discover RP Vending at the Franchising Expo in Darling Harbour in 2010, followed by an Information Evening at the North Ryde Head Office and Showroom.  At the time, they were looking at investing in other small, flexible ventures but decided that the RP Vending model gave them independence but with support if required.   “My book keeper saw this as an opportunity for me to get out of the pressured position I was in as it was something I may enjoy doing at my own pace and time, while dealing with people. The timing was right as the business world was heading quickly into the GFC.”

Purchasing the initial 6 Vending Machines in May 2010 was pretty straight forward and soon Brett was into the swing of ordering product and servicing the machines: all the while maintaining his Golf handicap and holiday schedule in his country retreat.

"The only thing I can say here for new operators is to have fun, enjoy your customers and keep talking with them. Your customers will give you ideas and they will buy more from you knowing you are trying your hardest to supply what they want.  I have had a few funny experiences while I running a vending business, one in particular occurred while I was at a nursing home site, a little frail lady came up to me and advised me politely that  she had put money in the machine and she could not get the KIT KAT out . I found this odd as I noticed this machine did not stock or offer Kit Kats, yet I looked at her innocent face and gently told her it must be a mistake but would she accept a Tim Tam instead which was eagerly accepted. Another happy customer!  A nurse and some others were watching with intent and unwittingly I just made a bundle of fans all 90 +. He built that site up so well that now, the machine needs filling twice a week. The moral is a little promotion goes a long way. “I have mentioned to other people that if they are considering this type of venture RP Vending would be the best to contact.”

 Click here for more information about RP Vending Opportunities

 

ACCC : Small business must be alert to scams

False billing scams targeting small businesses have reportedly cost the sector in excess of $600,000 the Australian Competition and Consumer Commission's 2011 Targeting Scams report has revealed.

"The good news is that small businesses are becoming more aware of the threat of scams, with the amount lost way down from almost $1 million in 2010," ACCC deputy chair Dr Michael Schaper said.

"But the ACCC is still very concerned that around one in six small businesses that report this activity have lost money to scammers."

False billing scams target small businesses to trick them into paying for unwanted or unauthorised listings or advertisements in magazines, journals, business registers or directories. Common scam tactics are to send a business a subscription form disguised as an outstanding invoice to get the business to sign up for unwanted ongoing advertising services.

"In a wired world of smart phones and apps, it is easy to overlook low tech methods of scamming. But often the simplest scams can be the most effective. A false invoice that is not checked can end up being very damaging," Dr Schaper said.

The ACCC has taken action against a number of traders allegedly involved in misleading and deceptive, or scam-like conduct targeting Australian small businesses. Following ACCC action, in April 2011 the Federal Court imposed penalties totalling $2.7 million against two overseas companies, Yellow Page Marketing BV and Yellow Publishing Limited, for sending thousands of Australian businesses misleading faxes and invoices.

"The ACCC's case sends a warning to Australian and overseas companies that the ACCC will not tolerate this type of conduct," Dr Schaper said.

"If you get an offer that is too good to be true, or doesn't seem quite right, slam it! Hang up the phone, delete the email or tear up the fax."

Other common scams targeting small business include:

• Banking and online phishing scams

• Job and employment scams including business opportunities

• Online retail lease scams.

Top tips for businesses

• Make sure that the staff who process invoices or answer telephone calls are aware of these scams. They will most often be the point of contact for the scammers.

• Always check that goods or services were both ordered and delivered before paying an invoice.

• Never give out or clarify any information about your business unless you know what the information will be used for.

• Don't agree to a business proposal over the phone—always ask for an offer in writing.

• Limit the number of people in your business that have access to funds and have the authority to approve purchases.

• Effective management procedures can go a long way towards preventing these scams from succeeding. Having clearly defined procedures for the verification, payment and management of accounts and invoices is an effective defence against these types of scams.

• Become scam aware by visiting www.scamwatch.gov.au or following @scamwatch_gov on twitter

Most popular small business scams

False Billing Scam

False billing scams target small businesses to trick them into paying for unwanted or unauthorised listings or advertisements in magazines, journals, business registers or directories. The can also be for office supplies. If you have registered a domain name, be sure to carefully check any domain name renewal notices or invoices that you receive. While the notice could be genuine, it could also be from another company trying to sign you up, or it could be from a scammer.

Business Directory Scam

A directory entry or unauthorised advertising scam tries to bill a business for a listing or advertisement in a magazine, journal or business register/directory. The scam might come as a proposal for a subscription disguised as an invoice for an entry in a fake international fax, telex or trade directory.

Faxback Scam

A faxback scam can offer you anything from amazing diets to fantastic deals, business directory entries and competition entries—all you have to do is send a fax back to a premium rate number (usually starting with 19). Premium rate faxes can be charged at more than $6.00 per minute. The scammers make sure your fax takes several minutes to get through, resulting in a high phone bill.

Office Supply Scam

An office supply scam involves you receiving and being charged for goods that you did not order. These scams often involve goods or services that you regularly order—for example, paper, printing supplies, maintenance supplies or advertising.

 

Understanding Sales Psychology  (From Andrew Phillips – Brian Tracy (ANZ))

Understanding the psychology of sales is crucial to any business wanting to remain competitive in the 21st century. For a salesperson, superior selling skills are the difference between earning a good income and struggling to pay the bills each month. The sales force of any organisation is its backbone. A company may have the best product or service in the world, but if they don’t know how to sell their offering, the majority will never know about it or get to experience it.

Despite the crucial role that sales plays in the success of a business, most salespeople are trained ‘on the job’ and do not receive any formal or ongoing training in their field. They believe they are trying hard to sell their company’s product and when they don’t achieve a sale, they chalk it up to ‘bad luck’. These salespeople do not understand sales techniques or the psychology of selling. In fact, the majority of salespeople are in this group. It is a well-known statistic that in professions where sales is the key to revenue, 5% of the salespeople earn 95% of the money. How do they do this?

Click here to read this article in full

Click here for more information about Brian Tracy Franchising

She Loves Me, She Loves Me Not ...

Franchising has often been referred to as a ‘marriage’ – a marriage between the Franchisor and the Franchisee. However, there is a new spin on the ‘marriage’ concept; married couples looking to become business partners in a franchise. Married couples across the country who constantly struggle to balance the responsibilities of working long hours, trying to spend time with each other and possibly caring for their children, too; are eager to find a solution.

 

More couples are turning to franchise ownership as a way to gain control of their work/home life - and still bring home the bacon. Franchising gives husband-and-wife teams the opportunity to capitalize on a turnkey business model, recognized branding, training and more, all the while allowing couples to be their own bosses.

 

Such opportunities provide greater flexibility than a traditional corporate job, freeing up more time to spend with the family - and each other. It's also a great way for former stay-at-home moms to re-enter the workforce in an industry about which they feel passionately.

Husband and wife franchisee teams working together can bring a sense of security. They are their most trusted advisors.

 

But don't be mistaken; similar to marriage, owning a business has its growing pains and challenges. Knowing when to work together is just as important as knowing when to stay out of each other's way!

Good clear honest communication, is the key as many little ‘misunderstandings’ have the potential to explode both at work and on the home front. Some key considerations are:

• Who gets paid the most and why?

• Can you fire your spouse if they are bad for the business?

• You have a vested interest in the spouse, first, before work.

• How hard is it to separate business and leisure?

• How do you tell your spouse they made a bad business decision?

• If you have an argument at work, do you bring it home?

• You have no chance to escape talking about the job or company, it follows you home. Is this ok?

• Even if you say it's work-related, it's always personal.

• If you divorce, how do you divide the company?

• What if one ends up doing all the work?

• Your personal issues, what happens when they carry over into the business.

• Who will make most of the big decisions and why?

• Who is the ‘numbers’ person in the organisation?

• How will the marketing be determined?

• Do we take holidays together – do we even get holidays?

Family friendly franchises provide a wonderful opportunity for business minded people who wear many hats. As a mother, a father, a wife, or a husband, finding a franchise with flexible work hours is a must. In order to have a successful franchise, it is imperative that you invest in a franchise system that can accommodate the responsibilities you have at home.

If you're considering going into franchising with your ‘other half’, ensure it's a business match made in heaven.

 Please click here to contact Mark Fernandez, Director of Business Development Alliance

for more on Family Friendly Franchising

 

2012 FEBRUARY

 

Racecentre ... A new way to experience motor sport

The way fans interact with motorsport is set to dramatically change thanks to a unique concept that has just announced plans for a national presence.

Racecentre is Australia’s Most Advanced Racing Simulation Centre that was created in 2010. There are only a handful of professional race simulation centres open to the public around the world, so the concept is new, exhilarating and has enormous potential. This month Racecentre has revealed plans to expand nationally – creating an exciting opportunity for franchisees.

   

Racecentre is designed to give drivers, as individuals or as groups, the most realistic racing experience possible. Drivers race against each other in the car model of their choice including F1, V8, Rally, Drift, Lamborghini, Ferrari and Porsche just to name a few.

These are the same simulators that professional racing drivers use for training and practice, so they are as close to the real experience as you can get... without the risk of damage or injury. The reality TV hit Supercar Showdown sponsored by Shannons recently used these same simulators with the contestants with much success.

Although new, Racecentre has already attracted professional V8 Supercar Drivers including Jamie Whincup, Shane Van Gisbergen, Alex Davison, Andrew Thompson, Lee Holdsworth, Michael Caruso and Fabian Coulthard to experience the facility, and had positive endorsements from TV programs such as RPM and The Great South East.

These simulators are high performance machines with accurate and authentic features:

• Multi-axis full motion movements, allowing the driver to feel acceleration, braking, cornering, even ripple strips and bumper barriers

• Dolby Surround Sound that reverberates within the chassis and the drivers seat

• Triple screen HD display modules wrapped around the visual field of the drivers – making the experience realistic for each individual driver

Real-world variables such as fuel usage, damage, tyre wear, grip and suspension settings etc

Please click here for more information about the Racecentre franchise opportunity

 

Residential Garage Doors sell, install and service garage doors across Western Australia. Enjoy the freedom of being your own boss while experiencing the benefits of being part of an established and successful network.

Please click here for information about Residential Garage Doors Franchise Opportunities

 

hey dee ho music moves into China

Franchisor, Jenny Wilkinson is currently in Chong Qing, located in the middle of China, where is using the hey dee ho music program to teach English to children aged 3 – 8 years. She says that it is absolutely amazing. Jenny said that she is combining music, Auslan signs and images to provide a complete English curriculum. We will have Australian teachers in China for the next 12 months at least to make sure everything is set and working properly. Our aim is to licence the program once we have everything set.

Jenny is also delighted to announce that hey dee ho music has started a new franchisee, Emily Holler on the Gold Coast.

On 26th of Feb we provided the entertainment and children’s work shops at Cruden farm – Dame Elizabeth Murdoch’s property in Melbourne. This event raised money for Diabetes. On the same day we performed at the Teddy Bear’s Picnic in Frankston which is a fundraiser for the local toy library. Our hey dee ho character Melody made appearances at these event.

Click here for information about hey dee ho music franchise opportunities

ACQUISITION OF PIZZA CAPERS

Retail Food Group Limited has announced that it has entered into a conditional Share Sale & Purchase Agreement, subject to the usual and customary terms, to acquire the Pizza Capers Gourmet Kitchen franchise system.

The Pizza Capers system specialises in the sale of gourmet pizza and related products made using fresh restaurant quality and wholesome ingredients.

Established by founders Anthony Russo and Scott Geiszler in the Brisbane suburb of Kenmore in 1996, the Pizza Capers system achieved a population of 12 outlets before embarking on a franchising program in 2005.

That program has witnessed consistent new store growth, with the Pizza Capers system now represented by 110 outlets predominantly based in South East Queensland (77) as well as regional Queensland (16), Victoria (7), NSW (3), ACT (2), South Australia (3), Tasmania (1) and Singapore (1).

Whilst presently Queensland centric with approximately 85% of outlets situated in that State, Pizza Capers has demonstrated its potential for significant pepetration amongst regions outside of Queensland and represents a tremendous opportunity to bolster organic growth amongst RFG's existing systems.

A further twenty (20) Pizza Capers outlets are programmed for commissioning during the balance of 2012.

Importantly, the aquisition also positions RFG, for the first time, within the traditional Australian QSR segment and is consistent with the Company's strategy of multiple retail food franchise system ownership embodied in RFG's mantra of "strength in brands".

RFG CEO Tony Alford said, "the transaction represents the culmination of an 18 month engagement during which each party has become well acquainted with the others' business and operational philosophy".

"During this period it has become clear to RFG that Pizza Capers has distinguished itself within a highly competitive QSR segment and represts a brand that will both complement and enhance those franchise systems already under RFG stewardship".

"Pleasingly, the Vendors have also come to appreciate that RFG has the expertise to foster sustainable network growth outside of Pizza Capers' traditional Queensland base whilst also providing the infrastructure necessary to service and support franchisees during challenging economic times", Mr Alford said.

Pizza Capers co-founders Anthony Russo and Scott Geiszler will remain with the business post settlement.  Mr Russo said, "We are excited by the opportunities that will be created for the system and its franchisees when incorporated within the infrastructure and sophistication that RFG offers and are committed to ensuring the system continues to flourish under RFG's ownership".

"I am extremely excited by the opportunities this transaction brings to Pizza Capers, particularly to our franchisees, existing and future.  The systems, processes and support structures to be brought to the business by RFG will supercharge our growth and operations.  We are looking forward to working with RFG and continuing the Pizza Capers success story", Mr Russo said.

The company advises that:

- consideration for the transaction is based on a multiple of 7 times Pizza Capers' anticipated contribution (of $4.3m) to RFG FY13 EBIT;

- consistent with acquisition metrics previously advised to the Market, the transaction will be immediately Earnings Per Share (EPS) accretive;

- the consideration payable will be settled from existing cash reserves and available debt facilities;

- settlement is anticipated in or about April 2012.

Further information concerning the acquisition will be provided at the conclusion of the due diligence period as prescribed under the agreement.

 Please click here for more information about the Retail Food Group franchise opportunities

 

Australia Leading the World for Sign Franchise

Australian franchisees are leading the way for global sign franchise SIGNARAMA.  Recently finalised 2011 sales revenues showed that no less then 9 stores in the Top 20 of SIGNARAMA’s global network were from Australasia.

This was a trend even before the GFC put a brake on the US economy, according to Evan Foster, National Director of United Franchise Group, SIGNARAMA’s parent franchisor.  “Even before the US economy hit some tough times in back in 2008/09, we had as many as 8 of our franchisees in the Global Top 20,” explained Foster.  “Given that the franchise commenced in the US in 1986 and here in 1998, we’re doing pretty well given that we gave our colleagues a 12 year head-start!”

Foster explained that the Australian division has always been a strong performer with a strong franchising culture, strong network growth and a strong system.  “The signage industry is as recession-proof as any other franchise industry.  Every business needs and uses signs every day so we’re more isolated from macro-economic conditions.”

It’s not just in sales revenue that the Australian division is leading the rest of the SIGNARAMA world; many of the innovations in marketing and strategy formulated here have been adopted in the United States where SIGNARAMA originated more than 25 years ago.

 

“The brand is stronger here in Australia than almost anywhere in the world,” explains Foster.  “We’ve got the great combination of a great group of franchisees, favourable market conditions and some really innovative marketing ideas for the sign industry – many of which are being adopted by our colleagues in the US office.  One of our driving forces is to remain as one of, if not THE best region for the brand globally – it’s what drives us!”

Please click here for more information about the Sign*a*Rama franchise opportunity

Raising money for charity is only a click away for like-minded dog lovers

Helping charity has never been easier for dog lovers. In fact, it really is only a click away and you won't even have to reach into your wallet.

To celebrate Aussie Pooch Mobile turning 21 this year, for the entire month of March they are donating 21c for each 'LIKE' they receive on their Facebook to the RSPCA.

Aussie Pooch Mobile has a long standing affiliation with the RSPCA, participating in the Million Paws Walk every year and other RSPCA events, but this is the first in a string of charity events Aussie Pooch Mobile has planned to celebrate their 21st year, where their motto is giving back to the community for the entire year.  

And the best thing is that it's really easy. Just log on to your computer, iPhone, iPad or other device, go to http://www.facebook.com/aussiepoochmobile and hit LIKE! Easy, you will have donated 21c. And all those LIKES will add up, with the money raised by the end of the month helping abandoned animals.  

"This is an exciting year for us," says Aussie pooch Mobile Founder, Christine Taylor. "Turning 21 is a real milestone and not something a lot of businesses achieve. But because dogs really are our best friends, and always will be, Aussie Pooch isn't going anywhere soon. In fact, demand for services is continually increasing as so many people are so bogged down with other things in their lives. So to celebrate our 21st year we are dedicated to giving back to our wonderful community and what better way that to start off with something so simple, that both dog owners and the general public can help out with and make a real difference. 

"So please take a minute out of your time, LIKE us on Facebook and know that in some way you may just be saving a dog's life."

Click here for information about Aussie Pooch Mobile franchise opportunities

 

 

What Scratch? Mobile Automotive franchisees wanted in Melbourne NOW !

What Scratch? is new to Victoria and have 10 large territories in Melbourne that they wish to sell to franchisees passionate about cars and doing a good job.

After two years, all of the car dealerships in Victoria have been assessed and the territories have been outlined based on dealership hubs and including surrounding commercial precincts plus residential suburbs.

“There is a real advantage for the first franchisees in Melbourne to have their pick of the territories as well as being able to choose a location close to home. We market ourselves to our car dealership customers that our technicians are local and are always in the vicinity to be able to provide the high level of customer service that we pride ourselves on.” said founder Matt Burke.

What Scratch? has a unique franchise system in that they provide demonstrations to potential customers and begin servicing customers before the franchisee begins their four week intensive one on one training. Franchisees are then introduced to their customers and trained on their customers cars at their dealerships.

As new franchisees learn the system and becomemore proficient the What Scratch? Franchise Development Managers can then approach new customers to help franchisees grow their business if that is what they wish to do.

At the end of 2011 What Scratch? started approaching fleet customers as well as dealerships and that is progressing well with car hire companies, local councils and not for profit organisations also taking advantage of the value adding services that What Scratch? provides to organisations at their fleet vehicles resale point.

2011 also saw a massive 178% increase in traffic to their website resulting in record numbers of private customers enquiring about car paint repairs. The highest months for enquiries received in 2011 directly related to advertising campaigns in both WA and NSW. Surprisingly, however, in January 2012 the second highest number of phone calls to 1300 BUFFED was recorded and also the second highest number of email enquiries received without any media advertising at all!

“Our brand has been around in WA now for three years and we are seeing a lot of repeat customers and word of mouth referrals coming in from the general public. In NSW the brand is over one year old and these enquiries recently surpassed the numbers from WA. We continually work on our social media campaigns and website to ensure that customers with irritating minor car paint issues can find us,” said Tammy George, What Scratch? Marketing and Communications Manager

What Scratch? has dealerships and hire car companies in Melbourne wanting them to do the work and email enquiries are regularly received through the website from private customers wanting the high end paint rejuvenation service.

“I hate having to apologise to potential customers that we don’t have a technician in Victoria as yet to service them but at the same time we know it is just so important to choose the right person as our very first What Scratch? technician in Victoria. Anyone who understands the importance of exceptional customers service, has an eye for detail and a passion for great looking cars can be trained on our simple to learn system and we are looking for that person right now!” said Dale Burke founder of What Scratch?

Click here for information about what scratch? franchise opportunities

 

Snap On Tools: The business of taking on the banks.

Multi-million dollar private business - Snap-on Tools Australia - defies traditional lenders, successfully establishing direct lending to franchisees

While the Big Four Australian banks tighten their lending credit and increase rates in light of the Reserve Bank’s instructions to hold them static, Snap-on Tools Australia has been monitoring the success of their private funding offering for potential franchisees.

 

Following in the footsteps of their international parent company, the Snap-on Tools Australia Credit Program was softly launched in mid-2011. Snap-on believes the Program represents the beginning of a trend in successful multinational retail operations cutting out traditional lenders in the franchise market. To date more than ten new franchisees have taken up the offer, representing a third of the business’ yearly franchisee intake.

“We are witnessing a changing economic paradigm in retail, and particularly in franchising internationally,” said Nick Hudson, National Franchise Manager for Snap-on Tools. “Throughout the world there is pressure on the retail model – from a softening in demand for product, right through to a restriction on lending for people interested in investing in a franchise. We decided to circumvent this, and inject much needed funding into the system ourselves.

“We believe this is an important tactic in helping ward off the colder economic climate from Europe and the Americas affecting us here in Australia.”

Entry prices in Australia for many household name franchises are extremely high – ranging from $200,000 right through to $1million – meaning that a potential franchisee naturally looks to a lender to assist them in making the investment. Snap-on Tools Australia recognised that although their franchise investment is at the lower end of the scale securing access to funds was a significant barrier to many who genuinely wished to become part of the franchise network.

With more customers in Australia than they can currently service, and solid territories existing that simply needed a franchisee to service waiting customers, Snap-on Australia considered the creation of the Credit Program a straightforward solution.

“We have accreditation with the major banks,” explains Hudson. “We are a reputable and solid business turning over $67 million last year in Australia alone. It is fortunate we are in the position to provide finance sourced purely from the Snap-on network. In the majority of cases here is no need for a bank to become involved in a franchisee’s decision.

“Prior to the commencement of the Credit Program, our franchisees have typically been at the mercy of bank variable interest rates. The Program provides fixed interest rates, no ongoing fees or additional charges to franchisees, and our credit is unsecured except for a lien against the assets of the franchise itself.”

Snap-on Tools Australia is the only Australian franchise operation to offer this innovative program for franchisees, and it represents a first in the South Pacific region.

Click here for information about Snap On Tools franchise opportunities

 

February 27 2012

The Franchise Council of Australia (FCA) will host a retail issues forum in Sydney this Wednesday 29 February 2012 from 9.30am-12.30pm at the Karstens Conference Room, Level 1, 111 Harrington Street, Sydney 2000 to be attended by major retail associations, Government representatives and relevant stakeholders

 The purpose of the forum is to discuss a range of small business issues, including a proposed Retail Leasing Code of Conduct (Code).

The FCA has made substantial progress on its draft Code, and is now undertaking more formalised industry consultation on the issues that have been identified. However the discussion topics will extend beyond retail leasing to a range of issues including suggestions for a real payroll tax freeze, government assistance for small business and occupational health and safety.

The FCA has taken a lead role in coordinating the event, but important contributions are effected by several industry bodies including the Australian Retailers Association, the Pharmacy Guild and the Australian Sporting Goods Association. Active interest has also been shown by the Victorian and NSW Small Business Commissioners. FCA Executive Director Steve Wright expects the focus of the forum to be very positive. 

"This is about constructive solutions and improvements, and is not intended to be a wailing wall. Those attending represent successful small business, and are looking at ways for small business to be more successful," Mr Wright said.

"The retail tenancy discussion will be very direct, and important issues such as information inequality, excessive rental increases at end of term and other inappropriate conduct will be discussed. However the intent is to have a constructive focus - how can the retail tenancy environment be improved, how can the competitive landscape be equalised, and for the landlords how can the compliance cost of having to comply with different legislation in every state be simplified? We hope landlords will engage constructively with us, as we believe it is possible to improve the regulatory framework for the benefit of everyone."

The discussion about government assistance will centre on the model adopted by the United States Small Business Administration (SBA). Since its founding on July 30, 1953, the SBA has delivered about 20 million loans and loan guarantees to small businesses.

“The FCA is not intending to ask government to be a lender, it is asking it to make use of an unused bank wholesale funding guarantee to provide a guarantee to business start-ups which lack a guarantor and who would otherwise get a bank loan if they had a guarantor,” Mr Wright says.

The concept of a payroll tax freeze will also be discussed at the forum.

“The FCA is not asking for a reduction of payroll tax, it is asking only for a freeze, so that payroll tax bills paid by employers do not get any bigger. A freeze would remove any 'threshold creeps' which can be a disincentive to employ new workers as the new employment may take a business above the threshold, and therefore incur the tax or even be dragged into paying payroll tax simply be granting a pay rise to employees, in order to keep them,” Mr Wright says.

 

What are Key Performance Indicators (KPI's) and  why they are important? Key performance indicators (KPI’s) are simply the predetermined elements of a business which are regarded as the indicators of whether the business is performing satisfactorily or not In the franchise environment this issue can have two sides to it. Firstly - what are the KPI’s set by the Franchisor and what do these mean to Franchisees? Secondly - potential Franchisee and their advisors should set some KPI’s that they will look for which should reveal whether the Franchisor is a good Franchisor and whether the system is working well and suites them as an individual.

Mark Fernandez             Director, Business Development Alliance

The KPI’s of a franchise system are usually subjectively set by the Franchisor based on their experience, the industry they operate in and their franchise system, therefore it is not possible to provide a definitive list of what they should be. In theory, they are the essential elements of the Franchisee’s business which they must perform, to the set standard, if the Franchisee, Franchisor and the system as a whole are to succeed.

Franchisor’s must be careful not to create a “representation” as to performance, turnover, or income if setting minimum performance KPI’s.

Traditionally KPI’s were items you could measure and graph, and mostly financial criteria, but in a more tech savvy world in which we now live in need to cover more critical parts of the business and not just turnover. With data readily available, there is a need to keep pushing the envelope in customer service to stand out from the pack and KPIs have also become more subjective. This means training those who check KPI’s to do so, to the same subjective standard as those who created them are now become more and more critical.

In franchising the dividing line between KPI’s and other elements of compliance sometimes gets blurred as to what is a key element of the franchise outlet and what is a requirement to follow in the manuals and agreements. Potential Franchisees have to understand that what they may regard as non-essential to a successful franchise outlet is in fact essential to the system or perhaps more significantly, the Brand, which is all important to all franchise systems

Franchisors KPI’s for Franchisees are often overlooked by potential franchisees when they are considering buying a franchise. This can be a fatal flaw in the decision making process. Potential Franchisees are often caught up in “having my own business”, “how much money will I make” or simply being part of what they believe is a “failsafe system”.

All potential Franchisees must ascertain what the KPI’s they must achieve are. These, and the way they are dealt with, are perhaps the clearest vision of the culture of the Franchisor and the system.  If a franchisee has picked a system with a culture they don’t, or can’t, fit in with, the situation can become financially and emotionally disastrous.

Just a few examples of the types of Franchisor KPI’s are:

•  the percentage the cost of goods represent to turnover,

•  the percentage wages represent to turnover,

• the minimum number of customers or calls each week,

• the minimum amounts of goods to be purchased,

• the minimum expectations for local area marketing methods,

• promotions in the local area,

• staff requirements

• and many more …

There may be requirements relating to signage, uniforms, cleanliness, telephone scripts, weekly cleaning of the car or van.

The KPI’s will, quite rightly, be a non-negotiable aspect of the system and potential Franchisees must not only ask themselves “can I live with these requirements” but also “how does the Franchisor help me achieve these and how does he manage them?”

The relationships involved in franchising are probably the most important part of a successful, long term, franchise operation both as a Franchisee and Franchisor. This relationship is governed by the culture and the culture is reflected in the Franchisors expectations and how they are supported and managed.

Leaving aside the issue of recruitment, the first step on this journey is comprehensive initial training in all aspects of the system including the operations manual. The second is support given at opening or commencement time, the third should be ongoing support by a franchise business manger and finally management through compliance.

Potential Franchisees should gain a full understanding of how the Franchisor deals with each of these elements.

Click here for more information about Business Development Alliance

 

JANUARY 2012

What do Franchisors Really Want?

It is a big question to ask, and the answer does not come easily. “What do Franchisor’s want?” The best way to answer this question is to separate two key features of what a franchisor wants - what they want out of business and what they want out of a franchisee. Although the results from each may be considered independent; the franchisor will not get what they want out of business if they do not have what they want from the franchisee and visa versa.

So in determining what a franchisor actually wants, we will look at it from different viewpoints:

What they want out of Business:

Franchisors can be simplified into two different categories. Franchisors who are motivated by the money from selling more franchises and secondly, franchisors that seek to build long term sustainable business and can see the importance of both franchisor and franchisee needing to succeed.

Consequently a franchisor will generally get the franchisee that he/or she deserves! If you adopt a short-term approach to franchising, and you’ll almost inevitably attract a particular type of franchisee.

The message that needs to be sent is, if you have high expectations from what you want from the business, then you need to work hard in providing the hard evidence to prove that your business is a worthy investment for any franchisee. If it is seen that the business is a positive opportunity and not just an unsupportable sales pitch, then the quality of the business should speak for itself.

What they want in a Franchisee:

A franchise system is only as good as its franchisees. A franchisor can not get what they want from the business if they are not getting the things they need from franchisees. It starts at the franchisee profiling and selection criteria.

  

What do Franchisors look for when selecting franchisees?

•  Good people skills and being financially qualified

• Previous experience in management or business helps

• Attitude - Someone who really wants to jump in and get directly involved in developing a business

• Team building skills and interpersonal skills is usually a good bet.

• A willingness to learn

• Adaptable

• Can follow instructions

 

Mark Fernandez

Director, Business Development Alliance

In my history in franchising, I’ve learned that the two predominant reasons for failure are

under-capitalisation and people who don’t follow the system.

So in adding together all those factors, we repeat the title question – What do franchisors really want? Well in summary of what has been said above, a franchisor should want their business to be a genuine business opportunity that can be of lasting value. They should want their business to be developed for success over the long term. If these factors are taken care of, then the rest should be a lot easier to obtain.

With strong foundations, this should lead to the achievement of the modest wants and needs of a franchisor, like GREAT franchisees, positive future development and the overall success of their franchise.

It all starts with the foundations!

Click here for more information about Business Development Alliance

 

 

Bedshed crunches the numbers

It is estimated there were over 1000 business format franchise systems operating in Australia in 2010 (Franchising Australia 2010 Survey). 

Bedshed recognised it could be a real challenge for industry newcomers to objectively consider the options, which led them to develop Australia’s first easy-to-use franchise calculator tool. 

The tool examines the factors common to most franchises – marketing fee, royalty fee, sales, gross margin and expenses – to provide an initial profit estimate and long term estimated profit projection on up to three franchise models at once.

Bedshed’s Chief Operating Officer, Gavin Culmsee explains they were motivated by a lack of useful tools in this major business sector and wanted to provide a framework for potential franchisees to analyse how various options stack up.

“The calculator is about helping people make more informed decisions about what franchise is right for them.  We developed the Bedshed Franchise Calculator because we saw a real gap in the information available to potential franchisees when it came to a simple online tool to compare the available options,” Mr Culmsee said.

“Of course, this is designed purely as a guide, because the real numbers will depend on a range of variable factors. The Bedshed Franchise Calculator helps people compare apples with apples before they start spending money on accountants and financial advisors.”

“We think Bedshed will compare well to any other franchise people might be considering and we’re willing to put ourselves to the test to make sure potential franchisees do find the right options for them – whether or not that is a Bedshed franchise,” he said.

To try out the Bedshed Franchise Calculator or to watch a clip of Bedshed COO Gavin Culmsee being interviewed on Sky Business News about the calculator, on the Bedshed company website.

Click here for more information about Bedshed Franchising

 

 

SIGNARAMA Launches New Online Design Website!

SIGNARAMA, Australia’s largest full-service sign and graphics franchise, has released Australia’s first state-of-the-art online signage design and ordering tool.

Like many franchisors adopting a successful ‘bricks and clicks’ strategy, SIGNARAMA have created a sign design playground on their company website.

Available 24/7 with a few clicks of the mouse, customers are able to create their own sign design from scratch, or modify any of the thousands of templates available, putting convenience and control in the hands of the customer.

“This groundbreaking online system allows customers to create their own banners, signs, decals, lettering and displays from the convenience of their own computer,” says Jim Tatem, President of SIGNARAMA. “Customers can pick up at their local store, have the order shipped to them, or have it sent out of town to trade shows and other events.”

SIGNARAMA is the first franchised sign company to offer this online capability. Now customers can benefit from the in-store personal service they’ve grown to trust for more than 20 years, as well as the convenience of ordering anytime online.

With more than 900 retail locations worldwide and almost 90 Australia-wide, SIGNARAMA uses cutting-edge industry software programs to provide a full range of comprehensive sign and graphic services to both the private and commercial segments of the business community.

Click here for more information about Sign*A*Rama Franchising

 

 

Other Quickshots:

	What Scratch? Now has 18 Franchisees.  Great work! Click here for information about what scratch? franchise opportunities
	Muzz Buzz' new contact for franchise inquiries is Steve Pynt Click here for information about Muzz Buzz franchise opportunities
	Just Cuts Franchising has appointed  Luke Manning National Business Development Manager Click here for information about Just Cuts franchise opportunities
	Aussie Pooch Mobile has almost 200 Operators across the Globe washing and caring for thousands of dogs each month. Click here for information about Aussie Pooch Mobile franchise opportunities
	Appliance Tagging Services now has 36 Franchisees. Excellent achievement! Click here for information about ATS franchise opportunities
	Spray Pave has a new 'support payment plan'. Click here for information about Spray Pave Australia

 

 

 

2012 Scam Survey now online

Have you been the victim of an online scam or noticed any new or persistent scams over the last year?

The Australasian Consumer Fraud Task Force (ACFT) and the Australian Institute of Criminology (AIC) are gathering the most up-to-date information on fraud and scam trends in Australia through their annual online survey, AIC Principal Criminologist, Dr Russell Smith said today.

“We are seeking as much consumer fraud information as possible, whether it’s about fraudsters ringing from an overseas call centre trying to con money from householders, or email advance fee fraud scams, and even fraudulent requests for money by traditional post.

“If you have come in contact with such a consumer scam, or know someone else who has, please take the opportunity to fill in our short, confidential survey at ttp://aic.gov.au/crime_community/surveys/acft.aspx ,” Dr Smith said.

http://www.accc.gov.au/content/index.phtml/itemId/1026969

 

ACCC accepts Australian Workplace Services’ undertaking over misleading representations

The Australian Competition and Consumer Commission has accepted court enforceable undertakings from Australian Workplace Services Pty Ltd (AWS) and its director, Mr John O’Halloran, regarding misrepresentations made to small businesses concerning the need for AWS’s products.

The ACCC alleged that since at least October 2009 AWS made false or misleading representations to small businesses through the use of prepared scripts in the course of selling or promoting AWS’s safety products.

“Where a business sells products through the use of a sales script, it needs to give careful consideration to the message that the script may convey,” ACCC Deputy Chairman Dr. Michael Schaper said.

These representations claimed that the relevant state workplace safety laws required businesses to maintain workplace safety charts of the same nature as those supplied or offered for supply by AWS, when in fact there was no such requirement.

http://www.accc.gov.au/content/index.phtml/itemId/1026141

 

Furniture Galore pays infringement notices for misleading advertising

Furniture Galore Pty Ltd has paid three infringement notices totalling $19,800 and provided a court enforceable undertaking to the Australian Competition and Consumer Commission for misleading consumers about advertised savings.

"In the midst of the summer sales period this is a very timely reminder to all retailers that they must ensure that any advertised savings are genuine and not misleading or deceptive," ACCC chairman Rod Sims said.

Between July 2010 and September 2011, Furniture Galore represented that certain goods in its catalogues and radio advertisements were 'on sale' at reduced prices or that customers could make 'savings' below the usual selling price. 

Furniture Galore admitted that it had not sold or genuinely offered those goods at the higher usual selling price for a reasonable amount of time immediately prior to making the savings representations or at all during the 16 months that the advertisements were published.

The Australian Consumer Law requires that representations about savings, reductions or discounts must reflect real and true savings for consumers.

"Two-price advertising is a powerful marketing tool designed to encourage consumers to make purchases during a sale period because the goods are cheaper than normal," Mr Sims said.

"Retailers who overstate or misrepresent the value of savings offered to consumers during special sales or promotions risk financial penalties or court action by the ACCC."

Furniture Galore is required to publish various corrective notices in all Furniture Galore stores, on its website, in an industry magazine and in the Herald Sun newspaper. It will also implement a trade practices law compliance program.

The court enforceable undertaking will be available on the Public Register on the ACCC's website at www.accc.gov.au

http://www.accc.gov.au/content/index.phtml/itemId/1026132