The Profiler Jan 2011 Issue

volume 3 | issue 1 | jan 2011

Business opportunities

inside

The benefits of a franchise network

Snap-on Australia has introducedthe Snap-on Gateway Programme.For qualifying prospective fran-chisees Snap-on will finance the

franchise fee, consign the inventory aswell as finance a percentage of the neces-sary working capital, together with rent-ing them the mobile store. If we feel thatan individual has all the makings ofbecoming an outstanding franchisee thenwe will get them into business.

Why do we do this? Well, Snap-on hasaccreditation under the franchise-specificfinance programs offered by all of themajor banks, yet some prospective fran-chisees still struggle to obtain finance.There can be a variety of reasons for this:typically insufficient equity in the familyhome when valued by the banks is a verycommon one. Also of concern is thelength of time it takes to go through thebanks’ processes before funds are avail-able to be drawn down.

We have some vacant territories inNSW and Victoria where we are unable toservice our customers and there is nothingworse than customers who want to buyour products but are unable to purchasethem. So if we have the right franchisee inthese territories but finance is a hurdlethen it makes sense for us to help them.

The potential franchisee does have toaccess to about $30,000, but if we feel theyare the right person for our business andthey are passionate about joining the Snap-on network we will arrange the balance.

Elsewhere in the world Snap-on sub-sidiaries have access to Snap-on’s ownfinance company Snap-on Credit for thefinance of franchisees. We have not hadaccess to this in Australia and NewZealand but it is coming… the corporation

is actively working to meeting all the localcriteria so that we hope to be able to offerSnap-on credit towards the middle of 2011.

Money isn’t everythingThat’s why we have the GatewayProgramme. And because some potentialfranchisees perceive that a Snap-on fran-chise is a very expensive system to join,any number of them can disqualify them-selves without even making an enquiry.The truth is it’s a great value franchisesystem with no royalties or advertisinglevies payable. It is a departure from the

more conventional franchise fee structuredue to Snap-on being the product manu-facturer; we sell the products to fran-chisees who in turn sell to the customers.

All the training, plus the associatedcosts, including air fares, transfers, mealsand accommodation are covered by theinitial franchise fee.

So we want anyone who thinks thatSnap-on may be the right business forthem to contact us, come in and talkabout the options and possibilities.

Snap-on – getting outstandingfranchisees into businessSnap-on is providing a gateway to finance

4 : January 2011

SNAP ON

Snap-on vans are mobile retail outlets

If we feel that an individual has allthe makings of becoming an out-standing franchisee then we will getthem into business

FRANCHISE INFORMATIONContact: Nick HudsonPhone: 1800 762 766Email: [email protected]: www.snapontools.com.au

FRANCHISE INFORMATIONi

So, what does

think of us?2009 Best Value Franchise in Australia2008 #1 Franchise in our category2006 1 of Top 7 Franchise Systems

Working nine to fiveMonday to Friday doesnot work for everyone,and can be known to

stop people from enjoying their everydaylifestyle. Cafe2U, the world’s biggestmobile coffee franchise, allows its fran-chisee owners the freedom to choose theirown destiny and work the hours that suitthem best.

Andy Lynch, who is the owner ofCafe2U franchise in the Kenwick andMaddington territories in WA, can’t stressenough how satisfying his life has becomesince purchasing into the franchise.

Working as a chef for more than 20years, Andy migrated to Perth fromEngland in 1997, but not before cookingfor a host of British celebrities.

“When working in London, I cookedfor a number of TV personalities withSylvester McCoy, who played DoctorWho, and Todd Carty of East Enders andThe Bill probably being the mostfamous,” he said.

“Living the life of a chef had alwaysbeen a dream of mine when I was young;however the hectic lifestyle started to takea toll on my marriage and my social life.The 12 hour days always left me feelingexhausted and never gave me the time todo the things I love most, such as spend-ing quality time with my wife, enjoying arefreshing drink by the pool and cyclingaround at the weekend.”

“Since purchasing into the Cafe2Ufranchise, I have been able to set up aworking schedule which works aroundmy social schedule, while still managingto maintain a fulfilling income. I now

only work from 6.30am to 1.30pm,Monday to Friday, leaving me to spendthe afternoon however I please.”

Another Cafe2U success story is also afamily man. Mark Andrews is based inthe Campbellfield, Victoria region. After11 years of working behind a desk at acomputer software company, he decidedthat it was time for a career change.

Mark chose the Cafe2U system for itsflexibility and recently celebrated his oneyear anniversary in business. There’s nodoubt that he loves his new life.

“Since purchasing the franchise, I havehad so much more time to spend with my

wife and two teenage daughters. Everyoneis really happy to give a helping hand so itfeels somewhat like a family business.

“By feeling all the more satisfied withinmy day job, I have had the energy to planfun-fuelled days out with my family in myspare time. Whether it is 4WD or camp-ing I ensure we all have something to lookforward to over the weekend.”

To find out more about achieving thelifestyle you want with Australian bornCafe2U, visit www.cafe2U.com.au

Cafe2U – an everyday lifestyleThe world’s biggest mobile coffee franchise that works around your socialschedule

Franchise informationContact: Alan BiddlePhone: 1300 223 328Email: [email protected]: www.cafe2u.com.au

FRANCHISE INFORMATION

6 : January 2011

Cafe2U

I now only work from 6.30am to1.30pm, Monday to Friday, leavingme to spend the afternoon however I please

i

Mark Andrews

Ryde resident Kosnen Kwee is thelatest excited franchisee to openthe doors of his Signwave signand graphics centre, with the busi-

ness set up for a pre-Christmas launch.“It’s a wonderful feeling to finally be

opening this centre,” says Kwee. Thisindustrial design graduate was drawn toSignwave by the dynamic nature of theindustry but also the potential for profit inwhat is traditionally a high margin industrywith a very low cost of goods.

“I know that our services will be a greatasset to local businesses and I think ourcustomers will be very pleased with thelevel of customer service we are here toprovide,” he says.

With a focus on delivering customersatisfaction, Kwee has hired AndriasSuryadinata to join the Ryde Signwaveoutlet as the centre’s new customer servicerepresentative.

Green credentialsTogether, the young entrepreneurs arelooking for ways to run the centre in aneco-friendly manner and they will beseeking accreditation from a leadingenvironmental certification company.

“Employing green business practices is acause that is very important to us,”explains Kwee. “We want to ensure that wenot only offer the best product possible, butalso the most environmentally consciousproduct we can.”

The Signwave group is looking to partner with Greenbizcheck, which provides an internationally acclaimed environmental certification program thathelps companies implement

sustainable environmental practices. Franchise development manager Helen

Spencer explains. “We will begin the certifi-cation process for all Signwave stores in2011 and continue to focus on substraterecycling and sourcing sustainable productsfor our customers where possible. Signwavestores use eco-solvent inks and/or uv curedinks now and a number of owners alreadyhave processes and systems in place whichencourage sustainability and have a focuson waste reduction.

“We can see the benefit of sharing all ofthis information and building on it, notonly from a philosophical point of view butalso because conservation of resources andminimizing waste will save every Signwaveowner money.”

Kwee also has designs on building astrong presence for the Ryde Signwave storein the local area, with plans to hold anopen house where community members willbe invited to stop by, learn more about theproducts the centre supplies and get a tourto see the equipment the team uses.

“We are excited to be part of the busi-ness community,” says Kwee. “I want topersonally invite anyone who is interested

to come in, meet the team and let us showyou the products and services we have tooffer.”

Located in Victoria Street, Gladesville,the centre supplies a full range of sign andgraphics solutions to area businesses,organisations and events, including banners,site and architectural signs, window andfloor graphics, point-of-purchase signs,safety and identification signage, tradeshow displays, exterior signage and vehiclewraps.

With the opening of the Ryde store, thereare now 20 Signwave stores acrossAustralia; 2010 has been an exciting yearfor Signwave with five new owners joiningthe group and a number of new businessesplanned for 2011.

“We really believe in theFastsigns/Signwave model,” says Australianmanaging director Andrew McKay. “Themarketing infrastructure and support isworld class, but we also believe in the prod-uct and service that we sell at Signwave.Today, we are speaking with a muchyounger demographic than ever before.This is a vibrant industry that requiresenergy and enthusiasm – coupled with asmart business plan and a respected fran-chisor and excellent support will translateinto an exciting and profitable businessfuture,” McKay says.

Signwave – a service business going greenEnvironmentally aware Kosnen Kwee is excited to be opening up his owncentre in the dynamic sign and graphics industry

8 : January 2011

Signwave

Kosnen Kwee

Franchise informationContact: Helen SpencerPhone: 1800 622 693Email: [email protected]: www.signwave.com.au


Every day more and more people go into business

for themselves. In addition to the energy and passion

it takes to succeed, each of these new businesses

will need to let the world know they exist, which

explains why the sign business has grown into

a multi billion dollar industry.

visit: www.signwave.com.au for further information or contact [email protected]

5 day operation - business trading hours

No signage experience required

Prime locations available Over 500 centres worldwide

Business to Business

franchise opportunities available 1300-SIGNWAVE

There are many benefits to an indi-vidual running a Lifetime franchisewhich include:

Low risk: All of our products are sup-plied on consignment and there are noadditional fees.

Training: Each of our master fran-chisees provides training as well asinduction courses and covers everythingfrom door-to-door canvassing, to salessupport, IT and product knowledge.

Marketing: Support of the franchisorand master franchises, which in the eyesof a small business owner is a real benefit.

Affordability: It’s not going to cost youa fortune to purchase a franchise.

Expansion opportunities: Franchiseescan expand by recruiting sub-contractorsand part-time workers to increase theirearnings capacity.

An Australian owned business, LifetimeDistributors creates the convenience ofshopping in the workplace for thousandsof individuals. The company offers a hugerange of products all at discounted pricesdelivered FREE of charge direct to thecustomer’s desk.

Lifetime Distributors has been creatingthe convenience of work place shoppingfor 20 years and prides itself on customerservice and reliability of product supply,whilst maintaining its core promise byproviding quality books and products atdiscounts of up to 70 percent.

General manager Kevin Lagden says,“Our franchisees sell to over 45,000 busi-nesses every two weeks and that makes usunique”.

“Our customers see us as reliable andaffordable, our franchisees are always at acustomer’s place of work at an allocatedtime and are able to fulfil orders right

there and then.“It really is a fantastic convenience for

the busy worker.” It’s low risk and the product supplied is

on a consignment basis. The franchiseeonly ever pays for what they sell. Stockthat does not sell through simply getsreturned to the master franchise.

With no marketing or ongoing fees,there are plenty of repeat business oppor-tunities and everyone has the same oppor-tunity to earn a high uncapped income.

EnhancementsLifetime Distributors has also recentlyinvested in a brand new website, with anenhanced shopping experience. ”Wehave also integrated into the system afranchise content management systemfor all franchisees, where they can accessall relevant documentation pertaining toagreements, marketing and company

guidelines and a lot more, 24 hours aday,” says Kevin. “It’s all part of ourcommitment to franchisees,” he adds.

Lifetime Distributors is also a greatbeliever in giving back to the communityand to date has donated over $2.1m tocharity.

“The feeling of knowing that fromevery product purchased something isgiven back to the local community giveseveryone a warm feeling,” concludesKevin.

For more information visitwww.lifetimedistributors.com

Lifetime Distributors - 20 years of value shopping

10 : January 2011

Lifetime Distributors

Franchise informationContact: Joe SultanaPhone: (02) 9899 9655Email: [email protected]: www.lifetimedistributors.com


Convenience for the franchisee and the customer

RP Vending Systems is Australia’slargest and longest establishedvending machines supplier andmanufacturer, with more than

40,000 vending machines locatedthroughout Australia serviced by over1000 operators. These machines can befound in locations including The Hilton,The Westin, The Sofitel, Sheraton on thePark, Meyers, ANZ, Ikea and Armaguard.

All of RP’s operators are supported byRP’s complete ‘Business start-upSystem™’ accelerating operators into themulti-million dollar vending industry fullytrained and ready.

RP provides both initial and ongoingtraining, with operators trained in allaspects of running a successful vendingmachine business. This includes trainingin the areas of product stocking, site selec-tion and machine maintenance.

The benefits of starting a business withRP Vending are unmatched. Membersreceive access to RP’s exclusive buyingnetwork, which gives operators access tothe benefits of RP’s long establishedwholesale partnerships with companiessuch as Smiths, Cadbury, Schweppes,Coca-Cola and Nestle.

This allows operators to purchasestock at discounted prices only availableto RP members and will result in yousaving thousands of dollars a year.

Members will also receive around theclock support seven days a week with RPVending’s office and technicians ready tohelp at any time with our over-the-phoneassistance hotline.

No extra costsOperating with RP Vending provides you

with excellent support and training withoutany extra fees, charges or royalties. Onceyou have purchased your vendingmachines from RP Vending there are noadditional costs. It is your very ownbusiness that you may run as you wish,backed with the security of knowing RPVending will always be there for support.

A vending business is a great way foryou to supplement a regular income from aprimary job or run as a full time business,the decision is yours. What’s great aboutan RP Vending business is its flexibility;because you are your own boss, youdecide when you work.

RP operators love the freedom they getfrom having such a flexible lifestyle; they

no longer have to work the typical nineto five but can work when they want,allowing them to spend more time doingthe things they love.

For 15 years RP Vending has beenhelping people realise success in thevending industry; the good news is youtoo can be a part of Australia’s greatestvending success story, RP Vending!

RP Vending – a great success storyRP Vending’s comprehensive business start-up system

12 : January 2011

RP Vending

A vending business is a great way tosupplement a regular income froma primary job or run as a full timebusiness, the decision is yours

Franchise informationContact: David GreenPhone 1800 066 112Email: [email protected]: www.rpvending.com.au


Clockwise from main pic: RP Vending team,vending machine, training.

Right now, Clark Rubber has 76franchise stores throughoutAustralia. We are now in expan-sion mode and have many new

store opportunities throughout Australia.Clark Rubber managing director and

founder of Clark Rubber Franchising,Chris Malcolm, says, “The name of thegame is the fame of the name”.

Malcolm says Clark Rubber has a verystrong brand with a unique, bright colourscheme and look to its businesses. “Wealso have a unique business model for ourmarketing. We spend more than five percent of our annual turnover on advertisingand marketing. This makes us a verystrong and aggressive marketer in ourniche for the size of business that we are.”

A leading retailer in the foam, rubberand pool markets.Clark Rubber’s unique product range ismarketed with slogans such as ‘The Homeof Foam’, ‘The Rubber Experts’ and‘Australia’s Local Pool Shop’. Informativecustomer service in all three product cate-gories sets Clark Rubber apart from manyof its competitors.

Supported every step of the way.Clark Rubber franchisees have a wealth ofsupport at their fingertips through theexperience and knowledge of the nationalsupport office team, who are committedto franchisee success. The Clark Rubberteam recognises that the success of anyfranchise system very much depends onthe success of its franchisees, and so itprovides its franchisees with a toolbox tohelp them succeed. The toolbox includes

an in-house graphics design team, localarea and national market product man-agement, merchandising, IT and financeexpertise, training and business coaches aswell as analysts.

Our mission is to develop and assistfranchisees to reach their full potential inthe management and growth of profitableand successful Clark Rubber retail businesses.

A proven and profitable model.During the 2009/10 financial year. Clark

Rubber experienced fantastic tradingwhich resulted in record sales. At ClarkRubber, we believe franchising provides anew business with a far greater opportunityfor long-term success and prosperity thanan independent small business. This isachieved via a tried and tested system, anationally recognised brand, ongoingsupport from experts in appropriatebusiness fields and group strength inpurchasing and marketing.

Take a look in store today!

What’s in store for you atClark Rubber?Clark Rubber is an iconic Australian retailing brand and has been for morethan 65 years.

14 : January 2011

Clark Rubber

Our mission is to develop andassist franchisees to achieve bestpractice to reach their full potentialto manage and grow a profitableand successful Clark Rubber retailbusiness

Franchise informationContact: network development managerPhone: (03) 8727 9999Email: [email protected]: www.clarkrubber.com.au


Chris Malcolm, founder andmanaging director of ClarkRubber

Clark Rubber’s bright brand colouring is a standout

Strong National BrandClark Rubber is an iconic Australian retailing brand and has been for more than 65 years. We currently have 75 stores across Australia.

Unique Product RangeClark Rubber’s unique product range is marketed with slogans such as ‘The Home of Foam’, ‘The Rubber Experts’ and ‘Australia’s Local Pool Shop’. We are differentiated in the marketplace through the provision of informative customer service in the product categories.

Support Team Clark Rubber franchisees are supported every step of the way in areas such as buying, marketing, merchandising, in-store operations and administrative support, IT and training.

Proven and Profitable ModelDuring the 2009/10 financial year, Clark Rubber experienced fantastic trading which resulted in record sales.

Take a look in store today!We are currently looking to grow and have many new store opportunites for enthusiastic people who want to join a winning team.

‘What’s in store for you?’

You’ll be surprised at what’s in store for you at Clark Rubber! For further information contact our Network Development Manager on (03) 8727 9999

Email: [email protected] Website: www.clarkrubber.com.au

Since launching in Sydney in 2004,Ecowash Mobile has won justabout every award in franchisingand has grown from a two car

business to operations in 15 countries.But not content with this impressive

record, the Ecowash Mobile team has setits sights even higher with the introductionin Australia of its hi-tech new brandNanotek, the contract for Qantas ValetAustralia wide and further internationalexpansion.

“It has been a fantastic six years, but ourbest is yet to come. We have learnt so muchabout the market and really refined ourservice and our franchise support system –now we’re going mass market withNanotek,” says Ecowash Mobile CEO, JimCornish.

The launch of Ecowash Mobile’s brand,Nanotek, focuses on the technologybehind the service and allows for easierconsumer education and understanding ofthe advanced nanotechnology thatEcowash Mobile franchisees employ.

“It really is a paradigm shift going fromtraditional water washing to liquid polymernanotechnology which is waterless, but theresults speak for themselves – this is theway of the future,” says franchisee devel-opment manager, Adam Stone. “From afranchisee perspective you can literallywash a car anywhere, which really opensup unlimited possibilities in terms of busi-ness development.”

And it certainly appears that the bigplayers are listening! Ecowash Mobile nowholds the national contract for providingcar cleaning services for Qantas Valet andhandles product launches for all ofAustralia’s major car manufacturers,which included in 2010 looking after the

requirements of Ford, Holden, Hyundaiand Suzuki at the Sydney InternationalMotorshow.

High tech ITNanotek’s communication platform isheavily IT based with a futuristic newwebsite as the centre piece.

“We have really gone all out with thewebsite,” explains Ecowash Mobile ITmanager, Elia Napiza, “not just with thelook and navigation, but with the way wehave linked it through all our social media– our YouTube channel, Flickr Gallery,Facebook page, and Twitter. They all talkto each other, creating one integratedglobal communication platform fromwhich we can develop a solid audiencenetwork and generate strong brandawareness and word of mouth. We evenhelp our franchisees set up their own

Facebook page for their business!”With a strong presence in both Europe

and the Middle East, Ecowash Mobile isnow targeting key developing markets forthe introduction of the service – startingwith Russia.

“Russia is a huge market for us; it tooka long time to identify the right partnerand get through all the red tape but weaim to launch in Moscow and StPetersburg before the end of the year,”says Cornish.

Nanotek – Ecowash’s platform for the futureAward-winning Ecowash Mobile has expansion plans

16 : January 2011

Nanotek

Franchise informationContact: Adam StonePhone: 1800 Nanotek (626 683)Email: [email protected]: www.ecowash.com.au


Ecowash has launched the Nanotek brand

After a few years with a franchiserecruitment company, workingon the Pack & Send account,Shane Cole soon gave up sharing

the various benefits of the logistics andfreight franchise with others and decided tobuy one for himself.

“I fell in love with the company,” Shaneadmits. “They’re a genuine bunch of people.”

Shane started his Pack & Send franchisewith his wife, Sally, in 2004, and, within fiveyears, was selected from the network as Pack& Send’s Australian Franchisee of the Yearfor 2009.

“It's always nice to get a pat on the backfor putting in an effort,” says Shane.

But most of all, says Shane, his numberone delight has been learning that he andSally can work together!

“Sally and I have skills in particular areaswhich complement each other. We’velearned many things and others have beenreinforced during our time with Pack &Send. The major point is meeting customerexpectations,” he explains.

“We’ve also learned to use the strengthof the group in all areas; there are manyfranchisees with a wide range of experiencenot only in the practicalities of packing,but marketing and running the business ingeneral.”

Packages with a differenceShane particularly enjoys the challenge ofworking through the process of packing themore complicated jobs, such as a largestuffed peacock with its beautiful tail feathersspread out in full display. With no urgencyfor the job, Shane admits he lost count of thetimes he walked past the bird, pondering the

best way to pack it. Eventually the stuffedbird found itself secured to a base, bubblewrapped and surrounded by flo-pack, sittingin a custom-made box measuring around twometres long, one and a half metres high and40cm wide.

The second job’s complexity was altogetherdifferent, seeing Shane examine options withhis client on how to best pack and send overhalf a million dollars in parts to Geneva forthe biggest scientific experiment in the world:the Large Hadron Collider (LHC). This is anenergy particle accelerator that lies in a tunnel27 kilometres in circumference and as deep as175 metres beneath the Franco-Swiss border.

“It’s great how exposure through thebusiness broadens your interests,” saysShane, who has been following the Hadron

Collider’s progress ever since. Ironically, Shane says, winning the award

has made them re-focus on the business andthe way they operate.

As a result, the Coles continued their pathof success, by being recognised as the best inVictorian franchising in 2010 at the FranchiseCouncil of Australia’s Victorian RegionalAwards – crowned the VIC/TAS Franchiseeof the Year.

Pack & Send – finding what youlove and working at it!It’s not always easy to find a path to success, but once you’re on it, things justseem to get better and better...

18 : January 2011

Pack & Send

Sally and Shane Cole

Franchise informationContact: Martin LosurdoPhone: (02) 9822 5622Email: [email protected]: www.packsend.com.au


You may not be aware thatCaltex Australia operates one ofthe largest convenience retailnetworks across the nation, with

company and franchised stores operatingpredominantly under the Caltex Star Martbrand.

In fact, Caltex’s world class businessmodel, supported by its retail program,merchandising plans and field support hasmade it one of the leading convenience retailers in Australia, with asignificant proportion of our profitabilitycoming increasingly from non-fuel convenience products and services. Caltexhas a core vision of being a world classconvenience retailer.

“Success in convenience retailing is allabout having the right people in yourbusiness. People with a passion for delivering an unbeatable customer experience and a commitment to ‘Gettingit Right’ everywhere, everyday, everytime,” says Leo Pucar, national managerretail.

In fact, Caltex was recognised by theAustralian Association of ConvenienceStores (AACS) who presented us withtheir prestigious Retailer of the Year 2010Award in the Major Retail FranchisedOperation and Company Operation category.

Leo says that “attracting the right franchisees is critical to the ongoing success of any franchise network and thisis no different at Caltex Australia. As wecontinue our journey from service stationsto convenience stores, we are seeking adifferent type of franchisee; a high calibreretailer seeking a sustainable investment.”

The Caltex convenience retail networkconsists of about 650 stores with

approximately 85 per cent being operatedby franchisees. The balance of stores arecompany operated, which Caltex uses toshowcase its business model and to trial,test and develop new products and services prior to rolling out across thenational network.

A new world of retail convenienceA key part of the company's capitalinvestment strategy is the new, 21st-Century Caltex (21CC) Star Martconvenience store.

Following a number of successful trials,this new world class convenience storeformat is being rolled out progressivelyacross Australia, presenting a multi-million-dollar investment for Caltex.

At the heart of the 21CC concept is abright, clean and attractive conveniencestore with a fresh look, layout and product range. ”Our stores are evolvingto meet customers’ changing needs,” saysPucar. "Research has shown that in an erawhen people are time-poor with longwork hours and both partners working,they value convenience more than everand it is important to ensure that we offera good mix of traditional convenience

items as well as supporting the growingneed for fresh and healthier alternatives.”

Having more products visible is therefore one aim of the 21CC layout –showing off products for sale and makingstores easier for customers to navigate,with more space at the service counter.

The trend here and overseas is for convenience stores to become more of adestination for fresh food and ready-to-gomeals. So this is reflected in the 21CCHealthier Options offer with an expandedrange of chilled items, pre-packagedmeals, yoghurts, fruit juices, dried fruit,nuts and salads, complemented by an in-store bakery and fresh coffee offer.

At the same time the 21CC stores willhave a localised offer, with the quantityand mix of products widened or reducedto match local customer demographics.

Caltex – A fresh approach to retail convenienceCaltex has designs on its Star Mart brand being a world class retailer

20 : January 2011

Caltex

The new look Caltex Star Mart brand

Contact: Ben GaltonPhone: (03) 9287 9572Email: [email protected]: www.caltex.com.au


22 : January 2011

Franchise network

The joy of an established franchis-ing system is that franchisees arein the generally fortunate posi-tion of being able to leverage

ideas and knowledge from other owners inthe network, confident that the informa-tion is willingly shared. Where else do youget a sharing of solutions to comparableproblems and challenges, or fresh newideas to help build your business frompeople who have already tried out theirideas and found they work?

On top of the business support from thefranchisor, and the importance of thebrand name and profile, franchisee net-works are a huge positive for incomingbusiness owners. It’s like tapping into yourown private business advice bureau!

Before you buyThe help from other franchisees doesn’tjust start once you’ve opened up yourbusiness. As a prospective franchisee thelaw is on your side when it comes to find-ing out as much as you can about thebusiness opportunity you are considering.

As Ian Krawitz of research unit 10Thousand Feet explains, under theFranchising Code of Conduct every fran-chise is required to give you the contactdetails of current franchisees, and wherepossible while adhering to privacy laws,past franchisees.

“It’s wise to make use of this information and network, and contact a number of franchisees to help you evaluate your decision to join the franchise

A franchise network is one of the benefits of investing in franchising; in any established systemthere will be a host of other franchisees who havealready taken the path you are about to tread and who can provide support and advice, evenmentoring, to incoming franchisees.

23January 2011 :

TRAVELLINGHAND IN

HAND

24 : January 2011

system,” he says.“According to our 10 Thousand 2009

Franchisee Satisfaction Study, 54 percentof franchisees agree that there is a goodstructure in place within their franchisesystem to allow sharing of knowledgebetween franchisees.”

That’s a positive for those franchisees,but clearly some systems are not highlyrated for their network links. Given this isone of the key elements to feeling support-ed as a franchisee and there is room forimprovement in the industry in this area,Krawitz suggests some questions you maywant to ask current franchisees. These willdetermine the quality of the structure inplace to allow sharing of knowledge

amongst franchisees before making yourpurchasing decision.

For instance you could ask whetherthere are regular regional meetingsarranged for the purpose of bringingtogether local franchisees to meet andshare information, skills and ideas withother franchisees.

“Does the franchisor utilise an intranetto allow for sharing of knowledge and best practice examples amongst franchisees?” asks Krawitz.

“Do area managers build a portfolio ofcase studies, with a how-to guide, describ-ing how individual franchisees have beensuccessful in a particular area? For exam-ple, if a particular franchisee has excelled

at selling an add-on product,what steps were taken to achieve

this?“Has the franchisor recognised

franchisees in the network who arespecialists in certain areas of busi-ness who are available for other

franchisees to contact?”For example, one franchiseemay be proven and recog-

nised as the marketing andpublic relations guru, anoth-

er may be an expert in managing theirtime, while another may have a very

low turnover of staff and become asource of advice on human resource

management.

Community-mindedFranchise systems behave like commu-

nities because there are common interestsand goals, shared experiences and prac-tices, and much knowledge to share andbenefit from, says Julia Camm of Corven,a business dedicated to improving educa-tion among the franchising sector.Revealing and exploring that sense ofcommunity in franchising is a currentCorven project.

“Your franchise system has standards,requirements and procedures because theyare the starting points of rational andorderly communities,” she says. “If franchise systems are communities, theneveryone in that community is a citizen ...the franchisor, franchisees, team members,suppliers, customers ... you name it. Whenyou become a citizen, you understand andaccept the rights and responsibilities ofyour role and the rules of the community.

“As a prospective franchise citizen, youare gathering information, knowledge andlearning as well as seeking advice, opinionsand conducting research so you can makea highly informed decision as to which

Ever heard of the saying ‘taking 100percent responsibility’? You canbemoan the lack of support, sell upand move on or you can buildthose support networks yourself

Franchise network

25January 2011 :

franchise system, or community, you wishto join,” she adds.

As a prospective franchisee there is agreat deal to learn from past and currentfranchisees. “They have been in yourshoes, they follow the same proceduresand adhere to the same standards that youwill be, they serve similar customers andperform the same tasks day in, day out.They’ve been there, done that and are benefiting from the experience,” saysCamm.

“Given this, I urge you to discover howpast and current franchisees made therules, standards and procedures of thecommunity work for them.”

Citizens have the right to participate intheir community, she says. And participa-tion brings with it new ways of achievingbetter results, new methods of improvedperformance, greater service and commu-nication skills, what Camm describes as“doing better, being better”. Exploring thenew ideas means the community growsand evolves. Participation ensures thatideas and innovations are tried, tested,understood and continually renegotiatedby everyone.

So how can you tell if there is a community within the franchise you’vefocused on, and whether the participationworks for the franchisees?

Some signs of a confident franchise system with a well-developed network areif a franchisee prospect can get on-siteexperience with current franchisees beforemaking a decision; accompany a fieldmanager on a site visit with a franchisee tosee how you are supported; attend state orregional franchisee meetings or confer-ences before making a decision; and viewthe franchisor’s online learning and communications platform to see howforums are used in a constructive mannerto discuss ideas, issues and innovations.

And once you have chosen the franchisesystem that best matches your goals, youwill become a fully fledged citizen of thecommunity, Camm says.

It’s up to youOnce you are a franchisee, the question

becomes; are you effectively utilising allthe knowledge-sharing tools provided?

“I often hear from franchisors that franchisees who most need the knowledge-sharing opportunities are theleast likely to attend a local franchisee gettogether, or go online and tap into a forumon an important topic. The message wouldbe not to rush to the urgent but start looking to the important,” says Krawitz.

If you do not tap into one of the majorbenefits of being part of a franchise system, the support network of fellowfranchisees around you, you are likely tobe missing out on the opportunity toimprove your personal skills set and yourbusiness.

Of course, not every franchise systemwill meet the ideal when it comes to franchisee back-up. So what about thefranchise networks that don’t providestructured support? Those franchise systems where there are no meetingsarranged by the franchisor, where there areno intranets or yearly conferences? Wherevisits from field support staff are few andfar between?

“Ever heard of the saying ‘taking 100percent responsibility?” asks Krawitz. “Ina situation like this you can bemoan thelack of support, sell up and move on, oryou can build those support networksyourself. Arrange to catch up for a coffeewith a fellow franchisee in a neighbouringterritory to talk about business, proactive-ly ask your franchisor which franchiseesexcel in particular areas and email themyour questions, and use as much assistanceas possible from the group office supportteam.”

He recommends using the sameapproach with the franchisor staff as you

would to network with franchisees. Forsystems with a lack of formal support thegroup office staff are often challengedwhen it comes to providing a good level ofsupport across the board; they just don’thave the time.

“We are all human, we like doing business with people we like and will goout of our way to help them. So take timeto arrange to meet group office staff, evenif you go into the group office to do so. Bymaking the effort to build a relationshipwith them you will build a personal connection, so that when you need adviceor support they will be encouraged to goout of their way to help you.”

Whether or not your chosen franchisescores highly on the established networkfront, Camm believes taking action yourself is important. “Nurture your ownnetwork of peer franchisees that you keepin contact with on a regular and informalbasis; these may be the franchisees thatyou interviewed and met during your pre-entry learning phase and inductionprogram,” she says.

Another idea is to meet with franchiseesin your region and maintain regular contact with them about sales trends, customer successes, plus marketing andadvertising impact. And then extend yournetwork of peer franchisees further afieldby attending events, meeting franchiseesfrom around the country and keeping incontact with them.

Camm suggests using the franchisor’sonline learning and communicationsforum to pose questions, contribute to discussions and share your good news stories and achievements within the network.

You can also schedule a calendar ofevents that connects you with the franchisecommunity, including site visits, regionaland state meetings, training events andconferences. You may also want to includeattendance at non-franchise events, such aslocal business networking functions andindustry-specific events.

“Good citizens are active citizens,focused on making the community a roaring success,” says Camm.

Past and current franchisees… havebeen in your shoes, they follow thesame procedures and adhere to thesame standards that you will be,they serve similar customers and perform the same tasks day in, day out

26

Cafe2U

Contact: Alan Biddle

Phone: 1300 223 328

Email: [email protected]

Website: www.cafe2u.com.au

Caltex

Contact: Ben Galton

Phone: (03) 9287 9572


Web: www.caltex.com.au

Clark Rubber

Contact: network development manager

Phone: (03) 8727 9999


Website: www.clarkrubber.com.au

Lifetime Distributors

Contact: Joe Sultana

Phone: (02) 9899 9655


Web: www.lifetimedistributors.com

Nanotek by Ecowash

Name: Adam Stone

Phone: 1800 Nanotek (626 683)


Web: www.ecowash.com.au

Pack & Send

Contact: Martin Losurdo

Phone: (02) 9822 5622


Web: www.packsend.com.au

RP Vending

Contact: David Green

Phone: 1800 066 112


Website: www.rpvending.com.au

Signwave

Contact: Helen Spencer

Phone: 1800 622 693


Website: www.signwave.com.au

Snap-on

Contact: Nick Hudson

Phone: 1800 762 766


Web: www.snaponfranchise.com.au

: 2011

Contact Page

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visit: www.signwave.com.au for further information or contact [email protected]

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The Profiler Jan 2011 Issue

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