Edition One Hundred and Fifty Two of The Insider
Delivering franchising news and opportunities since 2005 |
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Hello and welcome to this week's edition of The Insider.
BREAKING NEWS BREAKING NEWS BREAKING NEWS
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The Australian Retailers Association (ARA) met today after receiving and accepting the resignation of Executive Director Richard Evans.
ARA President Roger Gillespie thanked Richard Evans for his service and announced ARA Councillor Russell Zimmerman is stepping in as Executive Director. |
In news this week -
~ A must read for all employers: Don't fire or hire any staff without getting legal advice first
~ Find out which franchise has just unveiled its new look after a marketing makeover
~ Delicious treats to add to the menu of your next econo-dinner party!
~ The release of a new franchise distribution model delivers clearer direction for one franchise
~ The pizza pie challenge - who gets the biggest slice in a taste test?
Plus -
~ Takeovers, staff cuts, complaints and appointments ~
These stories plus many many more in this edition of The Insider.
Join us again next week for more news and updates from around the globe.
All the best,
Leesa and the Team at Inside Franchising
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| RAMS announces extension plans |
The Australian specialist lender said the move to expand in South Australia was necessary to cater for increased demand amongst its target market of first home buyers, self-employed people and property investors.
RAMS Head of Franchising, Clive Kirkpatrick said that despite the challenging market conditions, RAMS has grown its customer base to more than 15,000 and is performing well beyond original targets set when it was acquired by the Westpac Group in January 2008.
“In the past three months, RAMS home loan settlements have reached the highest amount in its 14-year history, with last month achieving the biggest settlement month ever experienced by the RAMS franchise distribution channel,” Mr Kirkpatrick said.
“RAMS customer call volumes from South Australia have doubled since October 2008 when the First Home Owners’ Grant boost was first introduced.
“While customers can access RAMS Home Loans over the telephone, we are keen to establish a local South Australian brand presence with mobile loan writers and dedicated service centres to provide face-to-face assistance.”
Currently, RAMS is recruiting several new franchisees in South Australia. Initially, the plan is for mobile franchisees and these will expand into local RAMS Home Loan Centres offering personalised, expert home loan advice and high level customer service supported by a wide range of simple, competitive products.
Mr Kirkpatrick said he was excited about the opportunities this would bring for small business and the community in terms of greater competition and jobs.
“We have created realistic expansion plans to achieve our targets and we look forward to playing a much more direct and active role in servicing the South Australian market,” he said. |
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RAMS recently introduced a new franchise distribution model, which replaced the original franchise business implemented more than six years ago. The new, more flexible model had a more competitive, performance-based commission structure and improved scalability.
Mr Kirkpatrick said: “Overall, a new franchise model, broad home loan range and clearer direction has brought greater stability to our RAMS franchise network and business.”
Click here for more information and current opportunities available with RAMS Home Loans |
Humble Aussie Meat Pie Invited to econo-chic dinner parties |
As Australians tighten their purse strings in response to the current economic climate, a new breed of ‘econo-chic’ dinner party throwers are turning to affordable, ready-to-go meal options to satisfy the hunger of their guests.
High on the list of new dinner party menu items is Australia’s humble meat pie, because of its robust flavours, generous proportions, convenience and affordable price tag.
Each year, Australians devour 260 million meat pies, averaging around 14 meat pies per person, and this number is expected to grow significantly over the next 12 months.
Michel’s Patisserie Marketing Manager Pia Harrison said in response to the emerging “econo-chic” trend, Michel’s launched a new Family-sized Meat Pie on 26 June.
“Michel’s Patisserie’s hearty, home-style Family Meat Pies are made with quality cuts of chunky beef, filled with our secret gravy and wrapped in a flaky pastry bowl.”
“In the current economic climate, more and more people are entertaining at home. Econo-chic parties are on the rise as friends realise that bringing a plate is a convenient, cheap and relaxing way to catch up with family or friends.
“That’s why we released a Family Meat Pie; they’re exceptional value, quality and convenience make them the perfect meal solution for a get together with friends or a family meal.
“As part of our winter promotion we’ve launched a Family Meat Pie and Apple Pie Combo for just $19.90*. And with the brisk, cooler months settling in, this combination is perfect for an ‘econo-chic dinner party’, because it’s cheap, cheerful, delicious and so easy!”
The patisserie is expecting to sell over a tonne of Family Meat Pies this winter season – literally using over 120,000 kilograms of quality chunky beef, 120,000 litres of gravy and 320 kilometres of pastry to keep up with the demand.
The new family meat pie joins Michel’s winter menu, which also includes a new Family Apple Pie ($7.90), and Tomato & Basil Soup and Pumpkin Soup with a bread roll ($6.90 each).
* Available until 30 July 2009
There are more than 335 Michel’s Patisserie stores operating across Australia, employing about 3,100 staff and serving around 26 million cups of coffee and 9.5 million slices of cake each year. The Michel’s Patisserie franchise network is owned and managed by Retail Food Group (RFG), a leading Australian retail food brand manager and franchisor. RFG is the franchisor and intellectual property owner of the Donut King, bb’s café, Brumby’s and Michel’s Patisseries systems.
Click here for more information and current opportunities available with Michel's Patisserie |
Mortgage Choice Makes the Right Move
Marketing overhaul results in new direction
Australia’s largest independently-owned mortgage broker, Mortgage Choice is excited about the brand re-launch it is embarking upon over July and August. The refreshed look and feel, based on extensive consumer research and staff workshops, is designed to reflect the company’s brand essence – the key values of empowering borrower decision and providing credible guidance.
At the centre of the campaign is a new tagline ‘Let’s make the right move’, which is aimed at a number of redefined target audiences including potential and existing customers, franchise owners and business affiliates.
The new look will inject a sense of friendliness and liveliness into the personality of the award-winning company and engender a more contemporary feel.
Mortgage Choice senior corporate affairs manager, Kristy Sheppard said the nationwide franchisor’s brand rejuvenation is the result of a lengthy review process and comes at a time when Mortgage Choice is taking a fresh approach in many ways.
“In early 2009 we conducted a strategic marketing review that included a thorough analysis of recent marketing activities as well as consumer focus groups concentrating on brand perception. This was followed by a two-day strategy session attended by Group and State Office staff, franchisees and external consultants. Both convinced us of the need to reinvigorate our brand.” |
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“The review included the development of detailed key target audience profiles, including first home buyers and up-graders, which will guide the ongoing development of marketing initiatives. We are really keen to get our franchise network more involved in the process so we have set up a National Marketing Committee consisting of franchisee representatives from each state, all of whom are meeting with us regularly to collaborate on marketing strategy and implementation. The new look and feel will also be incorporated across all departments in our corporate offices.
“We are excited about the direction Mortgage Choice is taking. Our brand re-launch is only the first step.”
Managing Director of Red Ark, Mortgage Choice’s creative and online agency, Liz Rowell, said, "We are thrilled to be handling the re-launch, having worked intimately with the business in the digital space over the last two years.”
“This campaign is all about empowering homebuyers and investors; giving them the knowledge and support to make the right choice in what is often the biggest purchasing decision they'll ever make. We’re relishing the opportunity to develop a truly integrated campaign through the media, outdoor, in-store, online and pretty much every touch-point Mortgage Choice has with customers and prospects. The marketing team has invited us into the fold of the organisation – through working with brokers, state managers, field marketing managers and head office - so we have real insight into the business.”
“The way Mortgage Choice went about researching this refresh meant we could develop a campaign that clearly positions and differentiates the company, one that resonates strongly with consumers. We are excited about this new direction.”
The campaign will be launched across a range of marketing materials and mediums such as television, online and radio, flyers, posters and billboards in July and August.
Click here for information and current opportunities available with Mortgage Choice |
Advertising Opportunities |
30% of new franchisees recruited online
Results from a Franchisor Expansion Study by 10 Thousand Feet into the Australian franchising industry reports the following:
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Just 10 per cent of Australian franchisors reported negative growth in 2008
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Despite this, the $40 million plus franchisors spend on marketing each year to attract new franchisees will be significantly cut in 2009
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Newspaper ad revenues will be one of the areas to suffer most, with just 11 per cent of new franchise leads generated through this medium in 2008 – down from 18 per cent in 2007.
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In contrast, online and word of mouth recruitment strategies are set to grow with 29 per cent of new franchisees were recruited via word of mouth in 2008, and 30 per cent of new franchisees recruited
via online avenues!
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> To read the full story on these recent news items
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Bucking Bull Opens 29th Store
The 29th Bucking Bull store commenced trade recently in Westfield Helensvale Shopping Centre, located on Queensland’s Gold Coast.
According to new Franchisees, Michael and Stephanie Gaskell the new store has “exceeded expectations”. While the initial few weeks of operating have been long and tiring, the Gaskell’s hard work looks to be paying off. The store is enjoying a great deal of repeat business from local customers and has already secured a strong following from local business including the local bus depot, firemen and ambulance officers. “I’m really looking forward to driving takeaway business to these customers and once things quieten down, I hope to pursue marketing opportunities in these areas.” says Michael.
As for Michael’s plans for the rest of 2009, “I aim to get into the top 10 stores and eventually the top 5. I’d also love a weekend off!” he says.
Click here for more information about
Bucking Bull Franchise Opportunities
Warning for Small Business
Small business groups have issued a blunt warning to small business owners just days out from the start of Rudd Government's new Fair Work industrial relations rules: don't fire or hire any staff without getting legal advice first.
Click here for more about this story
Retail Sales Up
Retail sales in Australia increased by one percent in May supported by a record 5.5 percent gain in turnover for department stores, according to the Australian Bureau of Statistics.
Click here for more about this story
Helping hand for Small Business
The Fair Work Ombudsman is developing a best practice guide specifically aimed at helping small business. The guide - “Preparing Small Business for the Fair Work Act” – is currently being circulated to key stakeholders for comment.
Click here for more about the Guide
Postal Service Competitor
NZ: New Zealand Post will find itself with a competitor when stationery manufacturer Croxley launches its service shortly. It is aiming for 10% of NZ’s postal market within 3 years and has already set about securing retailers to swap to the new service.
Click here for more about this story
Charitable Donation
To mark its 150th anniversary this year, Danks Holdings Ltd, Australia’s leading hardware and garden centre group, has announced the donation of $1 million to charitable groups across Australia.
Click here to request more information
about Danks
Franchising Code of Condution Options Paper - Submissions Closing
As the next step in its response to the report of the Parliamentary Joint Committee on Corporations and Financial Services inquiry into franchising, the Government has released an options paper inviting final comment from relevant parties and the broader community.
The purpose of the options paper is to seek written comment on the amendments to the Franchising Code of Conduct discussed in the Joint Committee’s report.
The options paper builds on the consultation process undertaken to date and seeks new or additional information to that already provided in submissions to the Joint Committee.
This options paper requests comment against a series of very specific questions which clarify and fine tune the feedback we have received to date.
The Government is particularly interested in any potential change to the code that may affect costs and risks faced by franchisors and franchisees.
In order to keep the consultation process moving forward, any parties wishing to provide comment on some or all of the questions contained in the options paper are requested to do so by no later than close of business on 10 July 2009.
Click here to view the options paper and for information on how to submit comments
ACCC News Centre
Interested in all the latest news from the ACCC?
> Click here to visit the ACCC News Centre.
ACCC Seminars and Events
Click here to visit the ACCC website list of events
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A piece of the pizza pie

Australia’s third largest pizza maker Eagle Boys Pizza has released controversial results from an independent study that proves once and for all that Australians prefer the taste of Eagle Boys’ pizzas over those of pizza multinationals Domino’s and Pizza Hut.
The random blind taste test research, conducted across Australia by an independent company, found that almost one in two Australians preferred the taste of Eagle Boys pizzas over comparable pizzas from both Domino’s and Pizza Hut combined.
Click here to request more information
about Eagle Boys
Terry White Symbion Takeover
Terry White and a group of fellow pharmacists have negotiated a takeover of the national Terry White franchised pharmacy operation and plan to offer equity in it to its 150 odd franchisees in 12 to 18 months.
Click here for more about this story
Kleenmaid Update
The liquidators of Kleenmaid have sold two businesses associated with the failed whitegoods company, with the sales securing the jobs of 16 employees and ensuring that 30 service franchisees can stay in business.
Click here for more about this story
Concerns about sales = staff cuts
The Australian this week reported that after a survey of 1200 firms over the past 3 months 30% of businesses are expected to lay off more staff in the September quarter.
Click here for more about this story
Complaints about music franchise
The Courier-Mail reported that it has obtained documents showing that Forte School of Music Franchisees complained to the ACCC about losses, including one franchise who says he was forced to sell his business for $1. ACCC complaints against the music school franchise were still being assessed, with no action being taken to date.
Click here for more about this story
Appointment
Souvlakihut, is bucking the trend of the global financial crisis by expanding into new markets and appointing a new senior operations resource to help manage further expansion.
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John Portarianos has a strong track record which includes stints at Red Rooster and Coles Myer and by all accounts, he has already made a big impact on the business. |
Click here to request more information
about Souvlakihut
Odd Spot News
Some in Spain are feeling the strain ...
Spanish police have arrested a man whom they suspect hired a contract killer to murder his boss in a desperate bid to avoid being laid off. In other news, a builder kidnapped his bank manager at gunpoint; and in yet another strange story, a construction business owner threatened to set himself on fire unless debts owed to him were paid.
Click here for more about this story
What's On ...
Events and Seminars:
“Before Buying A Franchise”
Melbourne, 10 August
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Franchising & Business Opportunities Expo
Melbourne, 14-16 August
Click here for more information
Franchising & Business Opportunities Expo
Brisbane - 12 & 13 September
Click here for more information
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MailPost - Postie Agent Operator Business Model a World First
MailPost Australia Limited
"We Walk The Talk"
The Postie Agent Owner Operator business model of MailPost is proving to be a boon in the print and distribution industry when it comes to the delivery of catelogues and promotional mail. The unique business model - a world first - operates in four states and will eventually be national.
All businesses from small through to corporate welcome the unique 99% distribution guarantee offered by MaiPost, something competitors cannot match. The result is peace of mind for advertisers because the Postie Agents own their own business, unlike the casual contractor model employed by other companies and which has proved most unsatisfactory.
MailPost's system ensures that each distribution is recorded accurately - incorporating the route and the time taken to complete the delivery - via the GPS Satellite Tracking Technology, whereby the data is uploaded for the customer for verification purposes.
Click here to request more information about the MailPost Australia Opportunity
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newsletter edition 152 first published 9.7.09
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