Inside

The Shop 1300 139 557

Brisbane Expo

•10 questions to ask yourself before buying a franchise•5 week franchise research plan•Look at the many franchising opportunities available

What’s New in The Shop

Inside this edition

And what are they seeking in their potential franchise owners?

Passion. Simple – buckets loads of it.

Passion for outstanding customer service. Passion for following the system. Passion for caring for and training their staff. Passion for excelling at every part of the business.

My first memory of my career in franchising is now 25 years old but still burns bright in my mind. I had just started with a

new and emerging Home Delivery Pizza business that two and half years later would be sold to Pizza Hut for many millions in goodwill. It was called Dial a Dino’s.

At the first franchise owners meeting I attended the owner of the business presented a great deal negotiated with Pepsi. He presented his case well, carefully highlighting the strong points of the deal he had negotiated over many weeks.

The franchise owners would not consider the merits of the case at all. They argued with great passion for a deal with Coke. They knew then that their customers wanted to buy Coke. To them it was a ‘no brainer’.

The Head Office people clashed heatedly with the franchise owners who wouldn’t budge, and the franchise owners eventually carried the day.

I have seen this scene repeated many times in the 25 years since, and I believe strongly that the franchise model is a very strong one, combining the systems, strength, know-how and desire of the franchisor with the passion, hard work and enthusiasm of their franchise owners.

Done well franchising is very hard to beat.

And our new and emerging franchisor clients are all trying to harness this energy and passion for their brands.

(Continued over...)

We have some great new franchises under development at The Franchise Shop at the moment. The businesses are all very different, and come from all corners of Australia and New Zealand. However, they all have one thing in common. Their owners are utterly committed to their business. They exhibit great passion for doing what they do very well, for delivering excellence to their customers.

Active Air + ElectricalActive Air and Electrical install split system air-conditioners. Their franchise owners do not need to be electricians and an excellent business can be built combining the franchisor Gerard Phegan’s career long knowledge of the industry with – you guessed it - the franchise owners passion and hard work.

ORA Health and FitnessAt ORA Health and Fitness qualified personal trainers can develop their business around the unique Ora programs, specialising in post natal training with new mums and their babies. Founders Pauline Blackman and Madeline Vartan care very deeply about the programs they have developed. Becoming a franchise owner with Ora could be the best decision a personal trainer could make.

Ooga BoogaOoga Booga is a strange brand name but memorable. Ooga Booga design and sell all the items which help create their customers image. Corporate clothing signage, websites and much more. Ooga Booga Designs takes the time to understand the customers’ needs before proceeding with their products. Ooga Booga franchise owners will create a first class final product that encapsulates the clients business’s needs, goals and character, bringing them and your clients that one step closer. A truly unique business model.

UK CentralThe next of the new brands I’d like to highlight in this issue is UK Central. ‘The Govna’ is Phil Warner. UK Central sell all manner of goods imported from the UK. With over 2000 product lines in-store, UK CENTRAL is the largest dedicated British shop in Australia. As Phil says “we sell memories”. All your old favourites at everyday prices including groceries & drinks, sweets & crisps, household goods & laundry, an excellent range of clothing inc daywear, nightwear & underwear from High Street brands including M & S. Plus football memorabilia, a great range of book titles and more. With such a huge range of products, combined with good old fashioned, quality customer service, UK CENTRAL has created a true destination shopping experience the whole family can enjoy.

CashmartCashmart is a leading Australian Pawnbroker and unsecured cash loan service provider with a rich 3 generation, 40 year history. Cashmart was born in 1971 in Hobart Tasmania trading as the Bellerive Swap Shop. From that small beginning Cashmart has grown and diversified beyond the traditional areas of pawn broking and second-hand dealing and enjoys great success today. Principal Simon Akie is totally committed to assisting his franchise owners to build a great business leveraging his lifetime of experience in the industry.

The industry delivers strong gross margins, excellent long term growth prospects, and repeat business. It’s really four businesses in one – personal loans, buying and selling goods, loans secured by goods, and buying and selling gold.

Ironing ElfHow many times have you wished for an Ironing Elf? Someone to take away your ironing and bring it back ironed and on the hangers! Well Ironing Elf franchise owners will provide that service. Ironing Elf offers home delivery for their customer’s convenience. Franchise Owners will use contractors to do the ironing and will focus themselves on building relationships with their customers through great customer service and growing their customer base long term.

Pro PitPro Pit is a highly successful quality storm water concrete pit construction business. No experience is necessary; they can teach you all you need. At ProPit you will enjoy the comfort of a strong and tested business model. Leadership and teamwork will give you confidence. Pro Pit founder Rowan White understands it takes courage to go into business for yourself, and that it takes solid experience to assist you into a sustained growth phase.

Australia has had a long period of growth in the construction industry, opening up excellent opportunities for quality operators. The huge building firms responsible for most freeway, highway and street building projects want competent, honest, tradespeople – and frequently cannot find them when they need them. Pro Pit can open those doors of opportunity for you. With Pro Pit, you’re always in business for yourself, but well supported and never alone.

EnsaladaEveryone knows we all need to eat healthier food options (me of all people!) So when to opportunity came to work with Auckland based EnSalada salad stores we jumped at the chance. Then we met principals Simi and Arup Mukherjee and quickly understood why their business was growing so strongly. Their commitment to high quality products and innovative healthy food options came through at every meeting. They love doing what they do, and it shows in every aspect of their business, EnSalada have individual stores for sale in New Zealand and Master franchises available in Australia.

So there are some new options for you to consider in addition to the 25 plus brands The Franchise Shop already represents. All with one thing in common and that is a desire and passion to work with you to help you build great business for you and your family.

AIR + ELECTRICALHealth & Fitness

C

M

Y

CM

MY

CY

CMY

K

UK Central Text Logo.pdf 19/7/11 3:06:51 PM

What’s New in The Shop (continued...)

Sergio’s Cake Shop Sydney’s Premier Cake Shop chain now available for franchising. Sergio’s Cake Shop offer exceptional profit opportunity. Simple to run, no baking required.

Active Air and ElectricalOur franchise owners install split system air-conditioning units on behalf of major retailers and individual customers. Active Air and Electrical franchise owners are not required to be qualified electricians.

StufflersWorlds first and largest bear and stuffing franchise. Stufflers offers a great part time opportunity for mums to get back into the workforce and still have plenty of time for the family.

Brave SecurityAs a national leader in security, Brave Security has created a model that will arm you with all the right resources and backup you need. Franchises available now for those with either technical (electrical, cabling or security) or sales backgrounds.

Eureka MultimediaNumber 1 selling Australian educational software brand with a vast range of award winning products. Eureka Multimedia Franchises available NOW with an exclusive territory to sell to schools, retailers and direct to parents.

EnSaladaEnSalada offers exciting, healthy mouth watering salads and home made Greek flavoured yoghurts designed by our Head Chef. Kiosks and cafes available in Australia and New Zealand.

MagiKatsAre you interested in helping children to improve their Maths and English whilst they also learn study skills? Then MagiKats could be for you.

Pro Pit ServicesProfessional drainage pit building business within the construction industry. No experience required, full training provided, outstanding profit opportunities.

AIR + ELECTRICAL

Yoga Bugs We offer fun and creative yoga for children by intertwining well known children’s stories into an imagination driven yoga class. To be a successful Yoga Bugs franchise owner you need a love of yoga and children.

Grasshopper Soccer Here’s your chance to be your own boss, have a handsome income and a meaningful venture with a Grasshopper Soccer franchise. No soccer experience required. All you need is dedication, business acumen and the ability to follow a system.

ORA ORA Health & Fitness is passionate about life, exercise and inspiring people to live a healthier lifestyle. A great business for qualified personal trainers.

SnoreproThe patented Snorepro snore relief device allows clients to stop snoring and have the best night sleep. Master Franchise Available for ALL Australian States and throughout Asia.

Las Olas Fresh Mex Grill is Australia’s number one Californian-style Mexican take away franchise. Las Olas combines traditional Mexican flavour with the distinctive Californian flair.

CashmartHigh margin Pawnbroking business seeking mature, confident business executives to operate franchises in this constantly changing industry.

The Concrete CutterA mobile concrete cutting service with outstanding income potential. The Concrete Cutter are offering franchises available in Melbourne. Master Franchises available nationally.

Keen to Clean Domestic, Commercial, & Carpet cleaners since 2003. Keen to Clean offer different investment levels to suit everyone. Guaranteed Income.

Health & Fitness

Shop in almost any town or suburb in Australia today, you will find a very large number of franchised businesses. Australia has been referred to as the franchise capital of the world. There are over 1000 franchise systems in Australia, with over 60,000 individual franchises employing 600,000+ people, and sales of over $128 billion. There are many examples of successful franchises. McDonalds, KFC, Harvey Norman and even Australia Post, are all well known, highly successful franchises. But buying a franchise is no guarantee of success. Every year there are failures of Franchisors and Franchisees.

Questions to ask yourself before buying a franchise...

Before buying a franchise, here are 10 important questions that need to be carefully answered:

Are you the type of person who is willing and able to take on the responsibilities of managing your own business?

You owe yourself and your family a very careful self analysis before buying a franchise. While the franchise system will give the start up training and offer ongoing support, you, the franchisee, must be prepared to manage the business. YOU have to accept the responsibility of managing the business yourself.

Will you enjoy the work of the particular franchise?

Some people who buy a franchise they think will make them a lot of money, without thinking whether or not they will enjoy the actual work they will do in the business. You should buy a franchise that centres in an area that you will enjoy. Determine your interests and types of businesses you might really enjoy.

Are you willing to completely follow the franchise system?

The key to franchising success is the consistency of the product & service customers find from one franchise to another. There is no point in purchasing a McDonalds franchise and then deciding you did not wish to sell a core product such as French Fries!

Do you have a strong personal history of success in dealing with people?

Most franchised businesses are based on human interaction. Your personal ability to interact well with your franchisor, other Franchise Owners, your employees and your customers cannot be emphasised enough. A negative, critical, carping Franchise Owner can be a detriment to the entire franchise system.

Can you fund the franchise without stretching your resources too far?

One of the major causes of business failure is lack of capital. You will need enough money to not only open your franchise, but to run it until as it’s profitable.

Have you carefully studied the legal documents?

Franchisors are required to prepare a Disclosure Document under Australia’s compulsory Franchise Code of Conduct. This document will give you pertinent information about the franchise. Read it yourself. Do not rely solely on your legal advisor.

Does the franchise you are considering have a track record of success?

From the Disclosure Document you should obtain information about how profitable their franchise has been. For new Franchisors this information is harder to find, so you have to balance the lower cost to purchase from a new Franchisor, with the higher risk of failure.

Are the Franchise Owners generally happy and successful?

The Disclosure Document will contain a listing of all the Franchise Owners. You should talk with at least 10 of them or 10% of established franchise owners..

Do you like the franchise’s staff with whom you will be working on a regular basis?

One of the most important elements of a franchise is the ongoing support and contact you will have with the Franchisors main office. For this reason, you need to feel comfortable with the people you will interact with.

Do you have your family’s genuine support?

Managing a franchise is a full-time job and sometimes your new business will make demands on your time that your family might resent. It requires sacrifices of personal and family time. Your family should understand and accept that you will have tremendous demands on your time.

A complete version of this article can be read on The Franchise Shop web site:

www.thefranchiseshop.com.au

1

6

2

7

3

8

4

9

5

10

10

WEEK 4

Visit the Head Office of the Franchisor

Arrange to visit the head office of the Franchisor. Keep you mobile phone off. Concentrate on what you are doing.

Have your contact person at the proposed Franchisor arrange appointments for you with the Franchisors key players.

WEEK 3

Arrange to visit Franchise Owners

Plan to complete three or more visits with Franchise Owners in their place of business. Make a list of what you want to learn before you go. Do not expect more than 30-60 minutes of their time and you MUST make an appointment.

The unspoken questions for you are: “Can I see myself doing this business for the next few years?” “Will I enjoy it?” “Is this the business I have been looking for?”

Obtain professional advice from a qualified advisor

Hire a Solicitor with experience in franchising. First, ask the Solicitor what their fee is to review the Franchise Disclosure Document and the Franchise Agreement. You should also hire a qualified Accountant to review the financial strength of the Franchisor, and advise you of the economics of the opportunity.

WEEK 1

Read the information sent to you

As you read, compile two lists of questions for the Franchisor and existing Franchise Owners respectively. Note sections that you may wish your Solicitor to explain.

Interview existing Franchise Owners

Commit to completing 6 to 8 telephone appointments with existing Franchise Owners.

Write questions for the Franchisor

Write down any questions for the Franchisor. When you complete the first round of interviews, call the Franchisor to get answers to these questions.

The first research week is now complete.

5 WeekFranchise Research Plan...Spread over approximately five weeks, this is a simple but effective approach that will help you make a good decision about which franchise to buy in a reasonable amount of time. You will need to commit a realistic amount of time to the research. At all times take complete notes.

Ask yourself: “Still

interested in this

franchise? Yes? Move on.

WEEK 2

Revise your questions

Amend your list to include any new or more detailed questions that became obvious to you as a result of your previous interviews during week one.

Interview more Franchise Owners

Plan to complete four to six more telephone interviews with existing Franchise Owners.

Have more questions for the Franchisor

Call the Franchisor on Friday with your new list of questions. Explain this is a big investment for you, a major change in your life, and you are simply being careful.

Still interested? Then go on to week 3.

WEEK 5

Research your New Industry

Check the internet and libraries for industry trends which may affect your future.

Prepare a business Plan

Produce (with help from your Accountant if needed) a business plan for your proposed purchase. This will help you decide whether or not to purchase the franchise.

You are prepared to decide: “Is this for me?”

A complete version of this article can be read on The Franchise Shop web site: www.thefranchiseshop.com.au

CONCLUSION: Now you have compiled practical information, and just as critically, your impressions about the franchise. You have also gained the advice of your Solicitor and Accountant.

Ask yourself: “Am I

still interested?” Yes?

Move onto week 4.

If still interested move to the next stage.

Marrs With 32 years in the window furnishing industry Marrs, an industry leader, is now offering Franchise opportunities to like-minded individuals. A great opportunity for individuals to join our network and begin to service their own niche territory.

Ooga Booga! DesignsOur franchise owners provide efficient, innovative marketing and advertising products and services to their clients. Ooga Booga! Designs franchise owners have an exclusive territory to market our services. Sales background a strong advantage.

Duster DolliesDomestic Services Book Agency - The Duster Dollies franchise gives you the opportunity to tak advantage of the huge demand for outsourcing by customers for residential cleaning services. The key to this franchise is that you as the franchisee do NOT do the cleaning.

Accolades and MoreThe only franchise of its kind in Australia. Accolades & More are offering an outstanding business and lifestyle opportunity to be involved in a unique business that offers a range of highly sought after trophies and promotional products to sporting clubs, businesses and individuals within their territory.

Ironing ElfThe modern world is all about convenience. The Ironing Elf provides a pickup and delivery ironing service. Franchise Owners do not iron themselves. Excellent new business.

The e TeamInterested in establishing and maintaining websites and other business marketing solutions? The e Team offer the potential to earn good money and work flexible hours from their own home.

UK CentralWe sell goods from the UK to the large Ex-pat UK population. Food, clothing, books, sporting memorabilia, sweets, biscuits and DVD’s. Our customers love us!

The Trading TutorFinancial trading trainer. The Trading Tutor offers an easy to learn, “Do-It-Yourself”, financial trading, risk analysis and profit-tracking program for its clients. Franchise owners will locate potential clients and train them in how to use the systems. It is a sales, teaching and mentoring role.

C

M

Y

CM

MY

CY

CMY

K

UK Central Text Logo.pdf 19/7/11 3:06:51 PM

You are prepared to decide: “Is this for me?”

The Franchise Shop is Franchising!The Franchise Shop is seeking Franchise Owners for our offices in Perth, Brisbane and Auckland! This role would suit executives with experience in Franchising and/or chain management.

For More InformationCall 1300 139 557

Let our success be

yours!

Useful Links

The Franchise Council of Australia www.franchise.org.au

Australian Franchising Magazine www.franchise.net.au

Business Franchise Magazine www.businessfranchiseaustralia.com.au

ACCC www.accc.gov.au