ISSUE 60 EDITION 4 2019

Award winning strategies for success The San Churro story Recruiting the best franchise candidates The benefits of a transparent sales process The future of franchising The FCA’s vision for a thriving sector

AUS $6.95 | NZ $7.95 9 772652 ISSN 2652-1237 123000 04

OFFICIAL JOURNAL OF THE FRANCHISE COUNCIL OF AUSTRALIA thefranchisereview | i Australian Employment Contents Laws are Complex 2 A message from the CEO Discovering your franchisees failed to meet their employment 5 Sweet success for San Churro compliance obligations could be a financial disaster for you. 11 How a transparent sales process can deliver the best franchise candidates

16 Secure future growth for your franchise business Franchisors can be held what their obligations are responsible for the wrong- and how to meet them. Let 5 21 Innovation and transformation at NFC19 doing of their franchisees. The us guide you towards Vulnerable Worker Laws meeting your reasonable 25 2019 MYOB FCA Excellence in Franchising Awards were introduced in steps requirements and give September 2017 and it still your franchisees access to recognise business success is challenging for franchisors tools they need to make the to understand right decisions. 28 Investing patiently for future growth

32 Steering a family franchise across three generations

Protect your brand, make the right decision for your business 34 What it takes to succeed in an international market www.erstrategies.com.au 11 38 Franchise sector supports mental health initiatives

39 From franchisee to advocate: What it means to your business

42 New membership program and enhanced customer experience to drive growth at the Lott Confidential Telephone advisory Unlimited service for consulting for employee 44 Franchises leading the way for sustainability helpline franchisees franchisors

47 FCA Tech Tour & IFA Convention 2020 21

Employment Payroll audits for 5 % Annual reporting compliance training of your network pa and PUBLISHER EDITORIAL CONTENT ENQUIRIES DISCLAIMER The views expressed in this journal do not necessarily for franchisees (3 outlets minimum) FRANdata report The Franchise Council of Australia Editor, Franchise Council of Australia ABN 17 002 789 988 T 1300 669 030 reflect the views or policies of the FCA. Publication Level 19, 567 Collins St Melbourne VIC 3000 E [email protected] of advertisements for products or services does not indicate endorsement by the FCA. The responsibility T 1300 669 030 for accuracy of information is that of the individual + 61 (0) 3 9508 0899 ADVERTISING ENQUIRIES F contributors, and neither the publisher or editors can Peter White, Franchise Council of Australia E [email protected] accept responsibility for the accuracy of information W www.franchise.org.au T 1300 669 030 that is supplied by others. Readers should make their E [email protected] own inquiries in making any decisions, and, where DESIGN AND LAYOUT necessary, seek professional advice. PerryCallan GENERAL INFORMATION 387 Tooronga Road, All material is published at the discretion of the COPYRIGHT East Hawthorn VIC 3123 FCA. Editorial contributions, advertising bookings © 2019 Franchise Council of Australia. All rights erstrategies.com.au T 03 9822 9629 and artwork deadline information is available by reserved. Reproduction in whole or in part without written permission is strictly prohibited. Audits | Telephone Advisory Service | Employee Helplines | Employment Compliance Training | Franchise Employment Compliance Solutions W perrycallan.com.au contacting the FCA on 1300 669 030.

thefranchisereview | 1 A MESSAGE FROM THE CEO “Better regulation, not more regulation, and a proactive franchising sector working to set the standard, is the best way forward.”

Representing our members, raising The new strategic plan, launched The FCA directly targeted 80 concerns, reflecting real life business at the 2019 National Franchise regional communities across Australia challenges and responding to member Convention, sets out five key to engage in the initiative, after a pilot questions about the national franchising objectives: program in Hamilton, Western Victoria. Shaping the taskforce have been the priority for the 1 Strategic leadership, underpinning We’ve now had a dozen local councils FCA team in 2019. the FCA’s position as a relevant and come back to us actively seeking to The FCA is determined to set an effective peak business organisation partner with franchise brands. FCA industry benchmark where our members and advocate members like Chatime, Boost Juice, future of lead the way. Better regulation, not more 2 Membership growth Cookies Australia, InXpress, Nandos, regulation, and a proactive franchising 3 Increased revenue to deliver more Bakers Delight, Poolwerx, Guttervac sector working to set the standard, is the for our members and First Class Financial Group have best way forward. 4 Stakeholder relations, creating reached out to engage with the project. franchising The FCA has worked hard and robust dialogue, informative events We are innovating and providing introduced real changes over the last 12 and communication partnerships that give both franchisors By Mary Aldred, months. We will continue to introduce 5 Member support and education, and franchisees better business support. CEO, Franchise Council of Australia real reform over the coming months providing relevant and specialised And we’re resetting the franchise brand through our new member standards. The training and education programs for in Australia to ensure families see our revised standards will be supported by our members. sector as an employer of choice and an a set of new guidelines to clarify existing The plan articulates already stated obvious business model to invest in. They say the cauldron of adversity is obligations and provide a reference point positions, to help build a compliant, FCA members continue to for day-to-day operations of a franchised sustainable and profitable sector. This derive value from the wide range of a great teacher. And it’s fair to say the business. includes: educational events provided by the challenges facing franchising and the Every time there is a bad franchising 1 The development of a mandatory FCA and its dedicated state chapter story on the front page of the newspaper franchise systems register committees. small business sector over the last year about one brand, it diminishes the 2 The provision of mandatory advice These events are designed to have made good on that. FCA members shareholder wealth in every other brand for potential franchisees address key business challenges and have faced these challenges in a forward that franchisees and franchisors work so 3 Drafting and embedding new provide education on topics that are hard together to build. member standards, which we are affecting small business and more looking, open minded and resilient way. The FCA has made real progress on doing right now specifically, franchising. In addition to turning this around. We have more work 4 Sector and issues-based research to these regular events, this year we have to do. The FCA has implemented reform, help provide a fact-based response delivered a Western Australian State put forward member driven, evidence- and profile on the sector and its key Conference and in August staged the based and constructive policy solutions business issues FCA’s first Multi-Unit Summit to provide to the franchising taskforce, and I am 5 Board governance reform and multi-unit franchisees and franchisor confident that we will see a sensible better engaging franchisees. executives with a unique opportunity to regulatory response next year. Running any small business is tough learn new ideas for running successful To better engage franchisees, we have work. Red tape, energy prices, the cost multi-unit operations. established an FCA Franchisee Advisory and complexity of industrial relations. The annual National Franchise Committee, representing each Australian I’m listening to what members are Convention and MYOB FCA Excellence state and a broad range of franchising telling me, and the FCA is advocating in Franchising Awards Gala dinner (for industries. to government on their behalf. more details see page 21) once again Their thoughtful and experienced input I strongly believe that healthy showcased dedicated and passionate has helped us in the development of the businesses sustain healthy people who make this sector so great. FCA’s new strategic plan, our submissions communities. If businesses struggle, The willingness of franchise leaders to to the taskforce, and initiating support communities struggle. Particularly in share their knowledge and impart the and resources that help our members our regional towns. wisdom of lessons learned on their own address practical business pressures. Our regions are undergoing major business journeys never fails to impress, Franchising is not operating in the economic structural adjustment. With and I thank everyone who participated same environment that it was 18 months manufacturing, power stations and and attended NFC19 for their valuable ago, and it’s important that our strategic large industrial employers changing contributions. priorities reflect that reality. Based on the way they operate, regional towns We’ve achieved a great deal together member feedback about where to need local jobs and investment. That’s throughout 2019. And we have so much prioritise our attention and focus, the FCA the thinking behind the FCA’s regional more to do. has developed a new strategic plan that revitalisation initiative. I look forward to working with you recognises the business world that we It’s a way to provide jobs, again next year and am enthusiastic now operate in, as well as what we want it investment and fill consumer gaps in about what we can achieve together to to be, and sets out the priorities members towns, and grow franchising brands sustain and strengthen franchising in have talked to me about. across Australia. the year ahead. n

2 | thefranchisereview thefranchisereview | 3 Sweet success for San Churro For the past 13 years, San Churro has been a fixture in Australia’s competitive and fast-changing dessert café market and was recently named the Australian Established Franchisor of the Year at the 2019 MYOB FCA Excellence in Franchising Awards

Here, Giro Maurici, CEO and Founder of San Churro, shares the brand’s journey and the key innovations and strategies that drive its continued success.

San Churro CEO and founder, Giro Maurici, (right) with San Churro Operations Director, Matthew Brusi

thefranchisereview | 5 “You would be hard pressed to find another franchise of our size that has invested so heavily in its support of the brand and operation.”

Ruby chocolate was brought exclusively Churro Con 2019 to the market by San Churro

A unique brand 38 across ALL brands in a star-studded and support to further develop our sustainable practices. To date, San look around at what was happening The innovation imperative – with wide appeal list. We have also been recognised and franchised businesses, but they also Churro has donated over $310,000 to in the food world, take insights from awarded as leaders in digital marketing, regularly run training and focus groups customer insights are key It has been well documented that we the Fairtrade program. studies which demonstrated the food especially through our use of artificial on topics voted for by the franchise If we aren’t innovating - we don’t took inspiration from the back streets of choices of Australians were changing intelligence technology to leverage our partners in each state as most relevant stand a chance of growing - and Madrid but the truth is the San Churro Overcoming challenges and on a scale unprecedented along with an targeted digital marketing campaigns. to them. hence death is certain! setting a path for growth ‘explosion’ in social media postings of brand is a truly original and homegrown In addition, we invest heavily in our San Churro’s marketing plan At the beginning of 2017, comparable food, particularly with ‘instagrammable’ concept, with really nothing like it in the The secret sauce – annual conference and bi-annual state is developed to leverage insights year on year sales across the network food directly influencing trends. world. supporting franchisees regional meetings. We not only use garnered as part of our broader Now operating in more than 50 had been tracking backwards, with This strategic realignment was What one doesn’t easily see from these as a great platform to launch and company strategy. Our dessert cafe locations throughout Australia, San franchise partners growing increasingly also formulated with our franchise the outside is the success is fuelled by win support for upcoming initiatives segment has become increasingly Churro exists to deliver an indulgent discontent and morale amongst support partners through one on one meetings a terrifically capable and motivated but also take the opportunity to bring crowded over the years, so points of ‘sweet treat’ experience through office staff in a poor state. and group workshops at our annual support team based in Melbourne - in external speakers and ensure all our difference become more and more comfortable and cosy places that The first line in the sand was to franchise conference and bi-annual with 34 support office staff almost support office staff attend to optimise important, yet difficult to obtain. customers can enjoy a high quality recognise that successful business regional meetings to ensure group-wide outnumbering our 39 franchise partners! the networking benefits of allowing our Underpinning this plan are and appealing product range including strategy needed to be embraced by all adoption. This structure reflects the ethos of team to meaningfully connect with one substantial investments in IT, with chocolate desserts/drinks, churros, ice within the business and not enforced One of the big things to come out our shareholders who remain focused another. business intelligence systems by a traditional ‘top-down’ style. This of our business review process was cream, cakes and coffee. San Churro on building a leading brand and a being managed by a full-time data new approach and leadership style that it became clear that our habit of thrives in a wide variety of locations sustainable business. Contribution and involvement analyst and data engineer. Tracking was exemplified when we when we ‘jumping’ fast at every opportunity was and demographic profiles, providing Head office staff encompass with community causes variations to our product mix and took our entire support office team not effective at all - in fact our haste and customers with a destination to spend expertise and service in business and Since 2014, San Churro has partnered customer base is part of what we do ensuing failures had only made it more quality time with their loved ones and information technology, operating with Beyond Blue to help raise funds and away on a ‘Strat-Camp’, something that every day. Overlay this with insights difficult to win support and buy-in for take a break from the stresses of work systems, learning and development, awareness for anxiety and depression previously had only been done with the from the greater market and a couple future marketing initiatives. and enjoy life. centralised procurement and distribution, support. Every year customers are management team. (Funnily enough it of things became apparent: Therefore, it was a matter of taking Whilst the market for a “sweet treat” marketing, product and menu innovation, invited to ‘Share a Churros’ with was not too long after this camp that a) Customer behaviour is experience in Australia’s prime café management accounting and reporting, friends at San Churro to celebrate the we explicitly set ourselves the ‘big hairy a more strategic view and resisting the changing - less is more, quality and dining precincts and shopping payroll execution, site selection and importance of spending quality time audacious’ goal of winning the 2019 FCA ever-present temptation to be drawn into over quantity and social equity and centres is mature and competitive, it is lease negotiation, fit out design, business with loved ones. In doing so, we have Established Franchisor of the Year!) playing a largely reactive and short term ethical sourcing are playing the characterised by a relatively low number coaching and much more. You would be raised over $200,000. At that time we sought feedback and ‘tactical’ game. Prior to the review we had most significant roles in purchase of national operators, with San Churro hard pressed to find another franchise of San Churro has been proudly serving held many discussions through franchise particularly focused on the use of pricing behaviour. We had to make our now recognised as the market leader. our size that has invested so heavily in its organic Fairtrade certified coffee partner round tables, workshops and discounts to ‘buy’ sales. Armed with a calories count in the minds of the Our brand has been recognised and support of the brand and operation. since 2010. Fairtrade certified coffee surveys, with it becoming clear that focus on a longer-term horizon and a consumer - ‘If I buy this it had better awarded as one of the most liked and We have a very passionate and active directly supports farming families in the foremost we needed to remind ourselves more holistic set of KPIs, one of the most be worth it!’. loved brands in Australia - with surveys team of five franchise partner support developing world through fair prices, of the common passion we all had important changes we implemented was b) Our future lies with Gen Z, and such as one recently conducted by professionals dedicated to coaching good working conditions, community for the brand and what had originally to consolidate and reduce the product they have a different set of rules. StudentEdge ranking us eighth across all our franchise partners. Not only do they development and environmental attracted each of us to it. offering to reinforce what made us special In short, customers had to give food and beverage brands and number provide intensive regular monitoring stewardship through conservation and Secondarily, it was important to also and what we could truly be proud of. themselves ‘permission’ to spend

6 | thefranchisereview thefranchisereview | 7 Directly integrated with

Directly integrated with

Redcat delivers LOYALTY & ORDERING • Direct integration with leading MARKETING ENGINE online delivery platforms • Centralised reporting & pricing • Loyalty, mobile app & INTEGRATION native online ordering Giro Maurici with San Churro’s Fair Trade • Award winning 3rd party coffee suppliers in Papua New Guinea integrations • Paperless kitchen The Hospitality with us. From this we developed the Delivering measurable there be anything better than having a • Digital media IT Platform concept of ‘permissible indulgence’, results capable, passionate and well supported which has underpinned our strategic business owner actively managing • Kitchen & inventory The results have been dramatically marketing approach for the last two their business? Our results speak for successful across all our measures of management, and more... POS years. themselves: we have flourished whilst MANAGEMENT marketing success: FINANCIAL With this understanding of seeing many individual and corporately • Supporting Franchise Partners customer trends, we have launched owned competitor businesses try to - as measured by the Franchise many innovations over the over the succeed in our space over the years - with Multi-site customers Relationships Institute (FRI) in June past 18 months including: many notable high-profile failures. 2019, most of our franchise partners 1 A vegan menu, offering 40-plus Given the importance of our franchise now view our marketing function as vegan products and partnering partners to the long-term success of ‘very effective’. with PETA. the business, one of the metrics we • Brand Health - 43 per cent of 2 A low gluten menu. passionately track is our franchise Australians now recognise the San 3 A dessert tapas concept. partners’ satisfaction in our management. Churro brand. 4 Churros Snack Packs (CSPs) In our most recent snapshot of results • Customer Loyalty - the percentage 5 Ruby chocolate, the fourth collated in June 2019, 90 per cent of of Australians reporting us as their chocolate and biggest franchise partners agreed that they had favourite sweet treat brand now sits at Integration with chocolate innovation in more confidence in the support office team, an all-time high eight per cent. than 80 years that we brought that the support office cared about their • Store Sales - the brand posted strong exclusively to the market. This success and that they felt respected by comparable store sales growth of launch was supported with a the support office team. almost five per cent over the past ticketed multi-sensory dessert financial year - a stellar result in what experience offered throughout Final thoughts everyone knows is a super tough Australia and was awarded best At the end of the day we are all here, market. innovation at the QSR Media somehow drawn in by the magic of the awards 2019. Franchising the platform San Churro brand, and we take great ENQUIRE NOW [email protected] 1300 4 REDCAT redcat.com.au/fca 6 And last but not least, in recent for success personal satisfaction in helping each other times we have brought the most achieve our life’s dreams - in whatever delicious Cookie Butter and Gold We have always been fervent believers shape or form they may take. It is precisely in the strength of a well-run and led Chocolate menu innovations as the honour and privilege of being able to FRANCHISES well! franchise model in Australia as being the help others with that journey that keeps optimal operating model for success. Can me leaping out of bed each morning! n Redcat delivers RESTAURANTS

8 | thefranchisereview CAFÉS LOYALTY & ORDERING • Direct integration with leading MARKETING ENGINE online delivery platforms • Centralised reporting & pricing • Loyalty, mobile app & INTEGRATION native online ordering • Award winning 3rd party integrations • Paperless kitchen The Hospitality • Digital media IT Platform • Kitchen & inventory management, and more... POS MANAGEMENT FINANCIAL Multi-site customers

Integration with

ENQUIRE NOW [email protected] 1300 4 REDCAT redcat.com.au/fca

FRANCHISES

RESTAURANTS

CAFÉS How a transparent sales process

can deliver Just as franchisors are assessing their candidates, so too are potential franchisees making decisions based on the recruitment process itself and the the best information shared as part of it. Ensuring the sales process you’ve worked so hard to perfect is clearly communicated with franchisees can franchise benefit all parties as they move through the recruitment stages. The Franchise Review spoke to InXpress Australia & New Zealand’s Asia candidates Pacific Franchise Development Director, Franchisors dedicate substantial time and resources David Wilkinson, to find out how the shipping and logistics franchise uses a to finding franchisees who are the best fit for their transparent sales process to attract and brand, establishing detailed systems and processes recruit the best candidates. that are designed to ensure that when the sales “The opportunity for any brand, new or established, to build creditability with and recruitment process is complete, only the a candidate is so important, particularly best candidates remain and are ready to make the in today’s environment, given recent commitment to become franchisees. events that have adversely impacted the industry. As members of the FCA, we are all in a position to lead by example and ensure we are following regulations and best practice,” says Wilkinson.

thefranchisereview | 11 “Ultimately, the best candidates are the ones that are educated and informed, having taken the right amount of time to do their research and due diligence.”

According to Wilkinson (above), Centre, meeting the team and implementing a clear, transparent and management as well as some documents sales process is fundamental franchisees to enhancing the brand’s reputation with 7 Final franchisee and financial potential franchisees. validation: Call with business “We’re in a slightly different position coach, onboarding coach, GM and to many other brands in that, nobody more franchisees has ever woken up and thought ‘I 8 Sign franchise agreement: The want to be a freight consultant’. Most joint celebration of an exciting and candidates have no clue that this type prosperous new relationship! of business exists, so it’s critical that we “For us it shouldn’t ever feel like a educate candidates on both our business sales process. It should feel like a journey model and our brand,” says Wilkinson. of discovery. The process really puts “The greatest benefit with presenting candidates in the driver’s seat in terms of candidates with a clear and documented education and awareness but also allows process is that they feel comfortable them to go along on this journey of in pursuing information about the discovery and start to build a really good brand and business model, without the understanding of our business model concern of having signed a binding and practices,” Wilkinson says. upfront agreement. Ultimately, the At InXpress, while there are best candidates are the ones that are certain skills and experience that are educated and informed, having taken the advantageous for candidates, it’s their right amount of time to do their research attitude and evidence of past success and due diligence,” he says. that is most important. From the outset, InXpress candidates “In a business like InXpress, we’re are provided with an eight-step process for not looking for a specific background As part of the recruitment process, I’m looking for is people who have been will sit side-by-side with our staff in the by allowing the candidate to enter a recruitment, which Wilkinson outlines as: or defined profile as such; what our Wilkinson and his team are looking for successful in previous roles and have first few weeks and months of their process of education and discovery by 1 Goals, overview and decision teams are looking for are “rainmakers”, candidates who fill ‘five buckets’ with maybe taken a role that maybe they onboarding. offering them a clear, transparent and criteria: A 45 to 60-minute call people who don’t wait for something to their vision for becoming franchisees. haven’t been ready for but they’ve made “It all comes back to wanting our well documented process at the very designed to find out all about the happen… they MAKE it happen! Along 1 What is their ‘why’: Why would it happen, people who have jumped into candidates to see the real us, the beginning,” Wilkinson says. candidate. with being open to learning and highly they need to buy a franchise? the deep end,” Wilkinson says. people who are dedicated and invested “Most franchisors will have a 2 Brand Review: A 60-minute coachable, these attributes will offer 2 Fit: Do they fit the business in terms At InXpress, while the Franchise in their success. The key is to avoid franchise sales process which will be webinar all about InXpress, their our candidates the very best chance of of what they want to achieve? Development Manager (FDM) and team having the FDM pitching the brand at documented; however, many don’t history, who they are, and the nuts achieving the success possible with the 3 Timeline: How quickly do they takes the lead in handling the majority every opportunity. InXpress takes the share it with candidates as part of the and bolts of the model. InXpress model,” says Wilkinson. want to get into this or are they of communication with candidates, the opportunity to involve our franchise introductory phase. They’re presented 3 Complete request for “They can be 21 or 61, but they must looking a few years down the wider organisation is also involved in the partners in the process of discovery, so with bite sized steps as they progress. consideration: Further detailed have a strong desire to succeed, a track? recruitment process. the candidates will meet franchisees My learnings have been that the more information about the candidate clear vision of why they need to work 4 Dollars: Does the money make “The reality is the candidate is not in their region as well as during the transparent we are with our candidates, 4 Funding process: Getting clear hard and are not afraid of the grind. sense? It’s not just whether a buying your FDM, they’re investing in discovery day event.” the better the quality information they on the total investment cost, These people can come from many candidate can afford the franchise, your entire business – along with your The focus on building relationships will provide us and the less they will how the candidate will finance backgrounds - professional athletes, but expectations around earnings people!” Wilkinson says. with candidates, addressing any concerns disregard us. the investment cost and working Mums looking to get back into the and lifestyle are considered too. “For this reason, it’s critical that our along the way, and ensuring the process “My advice would be to put yourself capital workforce with a requirement for 5 A clear and defined decision candidates get to know our people. is delivered transparently is vital to the in the shoes of the candidate and ask 5 Business review of franchise flexibility, new graduates or people sick criteria: Can the candidate While the FDM is front and centre success of InXpress’s sales process. yourself the question “If I was evaluating disclosure document: Full and of working a 9-5. articulate what they are looking for in most of the steps, we love the “The biggest concern for many of this business, what and how would I detailed review of the candidate’s “Experience in sales or marketing is in a business? opportunity to let our amazing support our candidates is that we’re going to try like to be presented with information questions and concerns post always an advantage in our business, “Over 13 years in franchise recruitment centre staff take centre stage during our and sell them something when they’re about this franchise opportunity”. So, receiving independent legal advice but we value motivation, drive and the and franchise management, you start to discovery days. Between the business not ready, or they don’t know enough franchisors if you could change one 6 Attend discovery days event: want to follow a proven model over hear as much of what’s not being said coaches, onboarding manager and to decide if this is the right business thing about your current franchise Full day at the Franchise Support everything else.” as what they’re actually saying. What support team, our franchise partners for them. We can avoid this pitfall discovery process, what would it be?”

12 | thefranchisereview thefranchisereview | 13 Millions of ways to make a sandwich One ingredient remains the same: The Human Ingredient

We are a vibrant family of 1350 small businesses, operated by franchise owners in communities across Australia. Our dedicated owners and Sandwich Artists™ are passionate about every masterpiece created for our guests. We proudly support local growers and are one of the largest investors in fresh Australian produce. The wellbeing of our guests, our owners and their Millionsemployees is our of priority ways and we hold to our makebusiness a to sandwich the highest standards. We are deliveringOne some ingredient exciting changes so we remainscan offer our guests the a fresh new same: experience. We are Subway®. The Human IngredientCome take a fresh look.

We are a vibrant family of 1350 small businesses, operated by franchise owners in communities across Australia. Our dedicated owners and Sandwich Artists™ are passionate about every masterpiece created for our guests. We proudly support localsubwayisfresh.com.au growers and are one of the largest investors in fresh Australian produce. The wellbeing of our guests, our owners and their employees is our priority and we hold our business to the highest standards. We are delivering some exciting changes so we can offer our guests a fresh new experience. The InXpress discovery process: We are Subway®. one franchisee’s journey Come take a fresh look. Eugene Rusel signed his franchise agreement with InXpress in May 2018, fulfilling his dream running his own business when he commenced operations as franchisee of InXpress Collins Street, subwayisfresh.com.au Melbourne CBD, in August of the same year.

Born and raised in the Philippines, InXpress franchise, I felt that I had made “I really appreciated the Rusel began his career in the corporate the right decision. transparency, as it brings you to a very world from 20 years of age, working and “It all started with an email to InXpress comfortable state that eases the anxiety travelling across Malaysia, Singapore, after seeing an ad online regarding a of prospective franchisees, especially for Thailand and Perth. franchise opportunity. someone like me who considers this as His desire to provide for his parents “I received a response from the one of my life’s pivotal moments. in their retirement and set himself up for franchise sales team, led by David “Aside from learning about InXpress, the future led him to leave his corporate Wilkinson”, within the day and was given David exposed me to various references career after nearly 15 years and begin the a discovery process pack that laid out regarding franchising laws and made journey of becoming a franchisee. the journey I was about to embark on – I sure that I understood, not only the Since starting his franchise, Eugene was pleased. benefits of franchising, but also the has had a rapid rise within the network, “The discovery process is a 30-75-day accompanying risks. winning InXpress’s APAC activations process of knowing and understanding “I never felt that I was rushed to competition for his division. He remains the InXpress brand. InXpress also uses make a decision, in fact, I came to a one of the highest activators globally this time to get to know more about the point that I was the one chasing David within the InXpress network. prospective franchisee through a series to sign me up sooner! Here, he shares his story of moving of chats with David – who was very open “To me, every prospective through the InXpress discovery process. and patient in addressing my questions franchisee (and that I mean both “I was very happy when I made a call and concerns. in and out of InXpress) needs to to leave my job and run a business; at “Down the ‘discovery journey’ path, I undergo a similar discovery process the same time, I was very anxious not gained an in-depth knowledge of InXpress as it is a good test of the prospective knowing what to expect when starting a – its business model, its financial standing, franchisee’s compatibility with the business,” Rusel says. and first-hand success stories and master franchisor’s brand, model and “When I chose to sign-up for an testimonials from its existing franchisees. principles,” says Rusel. n

14 | thefranchisereview

SFAFJS0055_Subway_Sandwich_Artist_BFA_Mag_vFA2.indd 1 12/9/19 11:09 am SFAFJS0055_Subway_Sandwich_Artist_BFA_Mag_vFA2.indd 1 12/9/19 11:09 am Article provided by MYOB Secure future growth for your franchise business

We may not be able to predict the future, but by If we consider a simplified business growth. Even better, these components Customer and staff success following simple business best practices it is possible set model in which regular customers reveal how you can achieve real as key growth factors transact at least a few times each year, growth without overly increasing your Some critical elements that business yourself up for success. then we can break down a general workload. For example, if your customer owners often forget when burrowing revenue model into the following retention is high and so are the volumes into their numbers are factors influencing Let’s be honest; things aren’t growth, but a quick look at industry specific goal would be along the lines of components (see example below): of new customers, you might consider customer success and staff satisfaction. looking great for the economy right benchmarks reveals businesses with ‘take on 30 new customers by the end • Number of customers raising prices. The risk is losing some Making sure you satisfy customer now. But there’s a silver lining: every huge sales volumes aren’t necessarily of the year’. • Retention rate customers (a drop in retention), but needs and having a clear insight into how downturn is followed by a recovery, very profitable. This should be familiar Quick tips for increasing profits in • Number of enquiries or leads this is often offset by the increase they think of your business are integral and businesses that can weather the to many franchise business managers, tandem with sales: • Conversion rate to new customers transaction value. to improving your offering and will make coming turbulence can look forward to particularly in the retail and hospitality • Set sales targets with marketing • Average number of transactions Play around with these numbers it easier to do things such as increase a brighter future. sectors. Truth is, sales growth without and sales plans to support them per customer, per year under a range of different, realistic prices or introduce new products and Whether shoring your operations corresponding increases in profit can be • Set cost targets – you may get • Average transaction value scenarios and you’re now modelling services. This is just as true for your staff, up for a potential recession or making incredibly problematic. better pricing when purchasing By breaking down your revenue future revenue growth. If you think particularly those who sit at the coalface hay while the sun shines, strategising Likewise, growth in business activity volumes increase in this way, you’ll soon see how you see a way ahead, start putting of customer service. about future growth is a critical activity often comes with increased overheads. • Set overhead targets – consider small improvements to any of these specific plans in place to meet your Keeping customers happy shortens for any business manager and should For some business managers, putting extra resources required to deliver components can cause significant targets. sales cycles and improves customer be performed at least yearly. After all, on more staff or renting an additional increased sales retention – and they’re also the most the very notion of building a business location isn’t preferred or affordable. • Track performance regularly – Example effective form of marketing available. implies growth. This is another reason why it’s important report on profit and loss monthly They’re your word of mouth platform. But what exactly is business growth to have a clear understanding of what with a comparison to budget Number of existing customers 200 Once you’ve gotten to the point of in this context? good growth means to you. Retention rate 80% understanding your revenue components Underpinning this discussion of Generating revenue Number of existing customers at end of year 160 and have set up realistic targets for your Understanding growth lies a lot of soul searching and growth business growth plan, it’s time to bring growth goal setting. That’s because sustainable Number of enquiries or leads 50 Should you decide to chase your staff in. Getting them across relevant growth isn’t any single figure or When we talk about growth in revenue growth to either bolster Conversion rate 60% aspects of your plans is the first step business, we could be talking about measure that signifies general business or grow your business overall, then Number of new customers 30 to having them buy in to those plans. any number of things, including sales success. you’ll need to first consider how you Consider also how your customers fit growth, profit growth, headcount and To achieve growth, you will need to currently generate revenue. By doing Total number of customers 160 + 30 = 190 into those plans and ask your staff to do much more. Some business leaders set measurable goals – not just budgets this, you’ll be able to analyse each Average number of transactions per customer, per year 4 the same. If everyone is aligned and the would even include career development and targets, but business goals as well. element’s performance, and gain an Average transaction value $1600 customer sits at the centre of your plans for their staff on their ‘to grow’ list. Arbitrary goals like, ‘earn more money’, understanding of what you might be for growth, then you’re on the right path It’s easy to get caught up on sales aren’t terribly useful. Instead, a more able to leverage to meet your targets. Revenue 190 x 4 x 1,600 = $1,216,000 to success.

16 | thefranchisereview thefranchisereview | 17 “We may not know what the future brings, but that doesn’t mean we’re not the masters The right business of our own destiny.” energy advice is helping us grow. Angelo - Chew Burger

Considering innovation as a Once you have new skills, you’ll soon Think scale not growth find ways to implement them in your growth strategy Finally, let’s change the conversation business and you’ll then begin to harvest Regardless of the industry sector you by introducing the concept of ‘scale’. the hard-earned fruits of your labour. work in, innovative thinking can have a In business contexts, scale speaks large part to play in business growth. When growth means asking more to efficient operations and On the other hand, running a franchise for help sustainable business practices at any business can sometimes be seen to be size. While growth can be potentially restrictive in this sense, as they require Oftentimes, business owners get fatal to your business, scaling your input from a multitude of stakeholders themselves in trouble by taking a ‘I can business is the deliberate act of making and decisions can sometimes take a long do that’ mentality to just about every sure that isn’t the case. time to get made. element of their business. This has As you go through the motions Whatever the case is for you, as the serious implications for growth as the of coming to terms with how to leader of a business, it’s up to you to workload quickly begins to outstrip the grow your business, start forming keep bringing new things to the table amount of hours in a day. your plans under a broader ‘scaling that can help take the entire operation to But you have all the tools you need strategy’ that will allow you to speak the next level. Innovation can take place to begin thinking of how an additional to the direction your business is at any level, whether it’s in head office pair of hands might help you and heading. If you’re ‘scaling up’, then or on a shop floor. Either way, there’s your business out. Looking at the you’re deliberately planning for no excuse for taking a ‘set and forget’ components of your revenue, which will manageable growth with a specific attitude. see the most improvement should you goal in mind. In the same way, you In some cases, this may even point bring in a bookkeeper, payroll officer, or may decide your business is too large you in the direction of further learning stock controller? You may not even need or complex, in which case it’s time to opportunities, and this is a beneficial to outlay large amounts to see great ‘scale down’. direction to take for both your business benefits by engaging someone on a In creating these plans and and your own personal growth. Take a part-time basis. adopting new language as a way of Find out more course, find a mentor, join business clubs Alternatively, you might be able to describing your business operations, and associations and seek out other outsource tasks to contractors who you’ll also have a toolkit for better energyaustralia.com.au/business business leaders who have achieved the can handle time-consuming work while communications with investors, things you hope for. you focus on what you do best, or pay accountants and advisors. They will or call 1800 102 558 Learning more about accounting, specialists in areas where you don’t have have a clearer idea of where you’re finance, recruitment, analytics, marketing, the necessary skills or the time to learn headed and will be better able to offer creating and streamlining processes can them, such as IT or marketing. practical solutions to help you get only benefit you in the long run. Once you can free up more time for there. Strengthening your abilities will yourself every week, you’ll be better We may not know what the future Put your energy also make it easier for you to spot able to strategise and dedicate time brings, but that doesn’t mean we’re not opportunities for growth, which is to customer success, leading to more the masters of our own destiny. Scale another plus. repeat business. up with purpose. Simplify success. n in the right place.

18 | thefranchisereview

EA1046-API delegate-booklet-A4-ad.indd 1 15/8/19 10:13 pm More than 600 franchising and small business leaders attended the National Franchise Convention 2019 (NFC19) to immerse themselves in a program of practical ideas and information at the most comprehensive professional development event on the Franchise Council of Australia’s annual calendar.

Innovation and transformation at NFC19

Themed “Evolving in a new landscape: In a video presentation to delegates “Small businesses face many challenges, innovation and transformation”, this year’s at the opening of NFC19, Minister for including digital disruption, high NFC delivered expert advice to attendees Employment, Skills, Small and Family overheads, margin compression and rising to facilitate sustained success in an ever- Business, The Hon. Michaelia Cash, input costs. I am determined that small changing business landscape. provided an update on the work of the businesses have access to the support With eight expert keynote addresses, inter-governmental franchising taskforce necessary to thrive and grow, despite more than a dozen plenary and and outlined her vision for the Australian these challenges,” Minister Cash said. concurrent panel sessions, 30-plus round small business sector. In a day one keynote address that table discussions topics, more than 50 “It is timely that the inter-governmental delegates were still talking about at the exhibitors, the Sunday Legal Symposium franchising taskforce is currently end of the event, Boost Juice founder and ample opportunities to network considering the 71 recommendations of and franchising powerhouse, Janine Allis, during the social program, NFC19 offered the 2018 parliamentary inquiry into the shared her business lessons drawing not attendees an unrivalled opportunity Franchising Code,” said Minister Cash. just from her experiences at Boost, but in to build their knowledge base, make “It is crucial that future regulation of life and her recent time as a contestant in invaluable connections and find solutions franchising is fair and effective for both Australian Survivor. to their business challenges. franchisors and franchisees and avoids NFC19 kicked off on Sunday 20 any unnecessary regulatory burden. October, with the Legal Symposium “With nearly 600,000 Australians providing updates from the ACCC, employed in franchise businesses and an analysis of the Fairness in Franchising annual economic contribution of more report and comprehensive sessions than $180 billion, franchising is vital to the delving into a range of topical legal strength of our national economy. issues. “95 per cent of Australia’s 80,000 The main program commenced on franchise outlets and many franchisors Monday 21 October, with FCA CEO, Mary are actually small businesses. My vision is Aldred, updating members on the actions to have an innovative, agile and future- the FCA has taken over the past 12 focussed small business sector, motivated

A9R6b28a1_1tba2d3_9t0.tmp 1 21/11/2018 3:49:38 PM months to build a sustainable, compliant to employ more Australians while and profitable franchising and small continuing to deliver first class products business sector. and services.

A9R6b28a1_1tba2d3_9t0.tmp 1 21/11/2018 3:49:38 PM

A9R6b28a1_1tba2d3_9t0.tmp 1 21/11/2018 3:49:38 PM thefranchisereview | 21 Thank you Thank you to our Partners The work of the Franchise Council of Australia, including the National Franchise Convention, would not be possible without the annual support of our Partners.

were generous sharing their knowledge and providing real life examples from their own businesses to demonstrate to attendees the practical outcomes of the processes and initiatives they have implemented. With topics as diverse as lease negotiation, social media, updating disclosure documents and managing the wellness of your people, NFC’s roundtable discussions provided delegates with an opportunity to learn from each other as they considered the issues currently impacting their businesses. The FCA thanks all speakers and “We’ve learnt lots of lessons in our ourselves. But sometimes in life, if you panellists who provided their expertise franchising journey. One of the first say ‘yes’ some pretty extraordinary across three thought provoking days, things was, don’t push our franchisees in things happen,” Allis said. each delegate who took time out of their Thank you to our a corner. Always look at ourselves first to To end day one, CEO of 7-Eleven, busy schedules to attend the Convention, Sponsors make sure we’ve done the right thing and Angus McKay, shared his insights into the and every sponsor and exhibitor for their The FCA gratefully acknowledges the support of the NFC19 sponsors who have made this event possible. we’ve done everything we possibly can 7-Eleven story, leaving delegates with the support and contributions to the event. n before we look towards them,” Allis told message that the standard you walk past delegates. is the standard you accept. “For the years we’ve done in Boost, On Tuesday 22 October, delegates we are still one of the most loved heard from Australian Small Business franchise brands. In study this year, we and Family Enterprise Ombudsman, Kate still have general satisfaction more than Carnell, and Monash University Senior MYOB FCA Platinum Sponsor Gold Sponsor Networking Night Lanyard Sponsor and twice as much as anyone else. And every Lecturer, Sudha Mani, Ph.D, who delivered Excellence in Franchising Sponsor Award Sponsor other metric that we have smashes it out a keynote address discussing her Awards Sponsor of the park because we make franchisees research about the emerging challenges accountable - because they’re buying a in franchising. business. They’re not buying a success. In her day two keynote presentation, And everyone needs to do their bit to leading brand and profile strategist, actually make it a huge success.” Nicole Hatherly, revealed some eye- Among the key lessons Allis shared at opening facts about the evolution of NFC 19 were: today’s workforce, telling delegates this Breakfast Sponsor Espresso Café Sponsor Notebook Sponsor App Sponsor Welcome Reception 1 Don’t settle for mediocrity. is the first time there have been five Sponsor “You need to have the right people in generations in the workforce and that the right roles to achieve your goals,” by 2025, millennials will comprise three she said. quarters of the global workforce. 2 Customers rule. With this in mind, she spoke of seeing “Always ask yourself: is this the best diversity as an opportunity to harness thing for the customer? And the intelligence within organisations and the Awards Night Keynote Sponsor Keynote Sponsor Keynote Sponsor Keynote Sponsor customers are our franchisees. Our need to stop resisting change and work Prize Sponsor customers are our customers to our together for a better future. franchisees. We’ve always got to NFC19 closed with an inspirational constantly be customer led,” she said presentation from gold medal winning 3 Say ‘yes’ and scare yourself a little. Paralympian Dylan Alcott who spoke “In life when we get opportunities, it’s about the art of taking risks to achieve so easy to say no because no means your goals. Keynote Sponsor Health and Wellness Award Sponsor Award Sponsor Trophy Sponsor we don’t change the status quo. Across the program’s panel sessions, Sponsor No means we don’t need to scare franchise executives and industry experts

22 | thefranchisereview thefranchisereview | 23 2019 MYOB FCA Excellence in Franchising Awards recognise business success On 22 October, the Franchise Council of Australia honoured some of the nation’s best and brightest in business at the MYOB FCA Excellence in Franchising Awards on the Gold Coast.

This year’s winner of Australian Established Franchisor of the Year is the national chocolate store franchise San Churro. “It means more for our franchise partners and all the hard work and millions of hours that’s gone into the

concept over the last 13 years, and The San Churro team celebrate being named we stand on the shoulders of that,” the 2019 Established Franchisor of the Year Giro Maurici, CEO and Founder of San Churro said. “Thirteen years ago, a franchisee well-known brand in the Australian investing in us, supporting us and put their life savings in our hands. At community, that’s a really great believing in a brand that was in its the time we were humbled and took achievement,” said Charlley Zhao, infancy. That’s the true testament to the that with the utmost respect. Thirteen Managing Director of Chatime franchise partnership and we’re really years and 51 franchise partners later, Australia. proud of it,” said Express Retail Group each one has had the same impact on The Australian Emerging Franchisor CEO, David Boyd. us and we treat them with the same of the Year Award was taken home by Laser Clinics Australia took respect and give everything we’ve got Express Retail Group, the franchisor home Awards for both Excellence in so they can prosper,” said San Churro of the Salon Express and Barbershop International Franchising and Franchise Director of Operations, Matt Brusi. Express brands, which currently has Innovation. Bubble tea franchise, Chatime, was 41 salons and barbershops operating The laser hair removal, skin named International Franchisor of the across Western Australia and treatments and cosmetic injectables Year for 2019. Celebrating 10 years of Queensland with a strong focus on franchise first opened in Australia Australian operations this year, Chatime expansion. in 20018 and began its international is one of the fastest growing iced tea “This award is a recognition of what expansion to New Zealand in 2018. franchises in Australia. we’ve achieved over the last four years “It’s very exciting to win these “As a foreign brand in a Western and the importance of our franchisees. awards. It means a lot to show all the market, to achieve recognition as a It’s recognition they deserve for work we’ve put in both the support

thefranchisereview | 25 Winners 2019 Excellence in Franchising Awards Express Retail Group accepts the Award Chatime was named the winner of the International Multi-Unit Franchisee of the Year for Emerging Franchisor of the Year Franchisor of the Year Award for 2019 Warren D’cruz (second from left) Australian Established Franchisor of the Year San Churro

Australian Emerging Franchisor of the Year Express Retail Group

International Franchisor of the Year Chatime

Mark and Ky O’Shea of Quest Apartment Kate Davidson (centre) was named Single Unit Hotels enjoy their Award win Franchisee of the Year, less than two staff 2019 Franchise Woman of the Year, Liz Nable Multi-Unit Franchisee of the Year office and the franchise partners Warren D’cruz, Auto Masters to bring these initiatives to life. It will benefit our business because franchisees have a lot of choice out Single Unit Franchisee of the Year, two or more staff there and they will hopefully see Mark and Ky O’Shea, Quest Apartment Hotels that we’re innovative, expanding internationally and we’re a great success story,” said Anthea Muir, CEO Single Unit Franchisee of the Year, less than two staff of Laser Clinics Australia. Kate Davidson, EFM Health Clubs Courier and freight reseller PACK & SEND won the Excellence in Marketing Franchise Woman of the Year Award, while commercial equipment Melinda Bowles of Shingle Inn accepts Cashflow It Group were named Pack & Send took home the Award Liz Nable, Xtend Barre finance company Cashflow It Group the Award for Field Manager of the Year the 2019 Supplier of the Year for Excellence in Marketing was named Supplier of the Year. “We’re big supporters of the Field Manager of the Year franchise sector so winning this award means everything to us and our team Melinda Bowles, Shingle Inn who do a fantastic job of helping franchisees achieve their dreams,” said Supplier of the Year Cashflow It National Sales Manager and Cashflow It Group Director, Dan Toms. Outstanding franchisees recognised at the MYOB FCA Excellence in Excellence in Marketing Franchising Awards included Warren PACK & SEND D’çruz of Automasters, who was named Multi-Unit Franchisee of the Anthea Muir of Laser Clinics Muffin Break celebrate winning the Franchisee Community Responsibility and Contribution celebrates the brand’s two Award wins Franchisor Social Responsibility Award Award winner, Joanne Heidke of Bakers Delight Excellence in International Franchising Year for 2019. Quest Bundoora’s Mark and Ky Laser Clinics Australia & New Zealand O’Shea took home the Single Unit Awarded to Shingle Inn’s Melinda in contributing to the community was The awards also included the Franchisee, two or more staff Award Bowles. A hospitality veteran whose recognised in the Franchisor Social induction of a new member into the Franchise Innovation while EFM Health Club’s Noosaville own experience as a franchisee laid the Responsibility Award, taken home Franchise Hall of Fame Ron Pedder, Laser Clinics Australia franchisee Kate Davidson was named foundation for a successful career in by Muffin Break, and the Franchisee Chairman of Pedders Suspension Single Unit Franchisee of the Year, less business development and operations Community Responsibility and and Brakes. In more than 50 years than two staff for 2019. within franchising, Melinda has been Contribution Award, which was won of business, Ron has made an Franchisor Social Responsibility Australia’s first Xtend Barre guiding franchisees along their by Bakers Delight Burleigh Heads indelible impact on franchising, Muffin Break franchisee, Liz Nable, was named business journeys in the Shingle Inn franchisee Joanne Heike. overseeing the expansion of a Franchise Woman of the Year. network since 2016. “Winning this award is an family business that is now in its “It means a lot to win an award like “I work really hard to try to build the opportunity to say how important third generation. Franchisee Community Responsibility & Contribution this. It’s really nice to be recognised for businesses and lives of my franchisees. it is that we get involved with our A total of 14 Excellence in Joanne Heidke, Bakers Delight all the hard work that’s gone in and to It’s amazing to be recognised for community, bring people into our Franchising Awards, plus the have a moment to reflect and be proud something that I feel is my duty. I’m stores and tell them how important it is 2019 Hall of Fame inductee were Franchise Hall of Fame Inductee 2019 of where I’ve come,” Liz said. truly honoured,” Melinda said. that we bring each other together,” said presented on the evening, which was Field Manager of the Year was The important role franchises play Joanne. proudly sponsored by MYOB. n Ron Pedder

26 | thefranchisereview thefranchisereview | 27 Just like building and Low interest rates and super The impact on bond and other Cash investments which target an term performance should be favoured fixed interest investments is a little interest rate benchmark, such as the over short-term results. It also leaves While the Reserve Bank of Australia growing a successful different. Most bonds pay the bond cash investment option of many super the portfolio well positioned to take has recently kept interest rates on hold, holder a fixed interest rate. When there funds, are likely to provide lower returns advantage of buying opportunities if and business, superannuation this follows three rate cuts earlier this year is a fall in interest rates, then the bond’s as official interest rates decrease. The when asset prices correct. – in June, July and October. Australian is a marathon, not a sprint. interest rate becomes more attractive lower return is a trade-off to the defensive interest rates are now at a record low and people will bid up the price of benefits they can provide in comparison Performance in Given the uncertain 0.75% pa, and depending on the outlook, bond (and vice versa). This is good to higher-risk asset classes like shares and turbulent times could be cut again. Globally, interest rates economic and low return news if you are an existing bond holder, property. are also falling – in some parts of Europe Share markets have been volatile over environment we’re currently because as interest rates fall, the bonds interest rates have already gone negative, the past year which means the daily that you’re holding are worth more. A time for caution facing, that’s a good thing; while in the US, the Federal Reserve has performance of your super can change However, for super funds that need to also been cutting interest rates. So what does all of this mean for your depending on how your super is invested. as people entering the keep buying additional bonds because All of these interest rate cuts are employees’ super? The things to remember during times of their pool of funds under management workforce today have designed to try to stimulate economic Nobody wins in a trade war, and market turbulence is that your super is is growing (due, for example, to growth, a measure which has been ongoing tensions on the US-China trade a long-term investment and long-term decades to build their increased member contributions), deemed necessary because economic front risk de-stabilising a global economy outcomes are more important than short lower interest rates mean that they retirement nest eggs, it’s not growth has disappointed. But with global that is already showing signs of slowing. term fluctuations. will probably earn lower returns on the interest rates at historic lows you may be This is occurring at a time when market So when considering super investment necessary to risk their future new bonds they need to buy to ensure wondering about the impact this has on valuations for most equity markets and returns it’s important to apply the same their portfolios remain appropriately financial security chasing the types of investments made by super risk assets around the world are elevated philosophy that you would apply to your diversified across different asset funds. due to a prolonged period of ultra low business – it’s not just about today, it’s short-term returns. classes. Assets, such as shares, have increased interest rates, and geopolitical tensions about planning for tomorrow because As interest rates have fallen, in price as companies take advantage (eg. Brexit, Middle East, North Korea) are future growth takes careful planning, and infrastructure and commercial property of low interest rates to increase their continuing to simmer. patience. n valuations have also risen as more Furthermore, interest rates around borrowings to repurchase their own This information has been prepared without taking and more investors seek a more the world are already so low there’s shares, reduce debt, and/or pay dividends account of your objectives, financial situation or needs. attractive investment alternative to shareholders, and investors buy into little room for further cuts, which has Before acting on the information or deciding whether to to their lower returning cash and acquire or hold a product, consider its appropriateness shares looking for better returns than increased the risk that asset price saving products. Furthermore, and the PDS of each financial product and seek the low earnings currently available from growth may slow or reverse. Due to the lower interest rate means the professional personal advice. savings accounts. uncertainty, super funds may caution their debt needed to finance these exposure to shares. assets has become cheaper, By holding a greater exposure to Rest is a super fund with award further increasing their appeal. cash, and less in shares, a portfolio winning products open to all won’t benefit as much from short-term industries. We help you look after share market growth, but it also means your employees’ super so you can it shouldn’t be impacted as severely if a get on with managing your business. significant downturn occurs in the future. Find out more at This is in line with the philosophy that www.rest.com.au/employer/features super is a long-term investment and long- Investing patiently for future growth Article provided by Rest

28 | thefranchisereview thefranchisereview | 29 SPONSORED ARTICLE

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Putting the 5 We will support customers facing solutions to help you so you can and underwriting renewable energy. effectively, so you can focus on your customer at the heart of everything we vulnerable circumstances put your energy in the right place – business. do is our commitment to you, and we’re managing and growing your business. working hard to achieve that. An example of this is our support of Put your energy in the right place. the new industry-led Energy Charter. energyaustralia.com.au Call a business energy specialist today on 1800 102 558.

30 | thefranchisereview thefranchisereview | 31 Evolution of the brand 1950 to today

The man behind it was Ron Pedder, “Nothing is more energising than the 2019 inductee into the Australian having a franchise group contribute to Franchise Hall of Fame, who has been products or systems or marketing that recognised for the significant mark are for the betterment of the whole he has made on franchising and the group and the fact that these people Australian business landscape and across have invested their lives and their families more than five decades in business. in our business is so satisfying and that’s While Pedders Suspension has grown what makes franchising so powerful.” extensively since the first franchise Eventually, like his father before operation opened its doors in 1982, with him, Ron passed the baton to the next interstate and international distribution generation, with his son Mark (now added along the way, at its heart it has the Managing Director of Pedders remained a family business that is today Ron Pedder is inducted Suspension) joining the family business in its third generation. into the Franchise Hall of Fame in 1993 as a technician at Pedders Footscray and Scott (now the company’s Marketing Director) joining the business on the management of sales and the in 1998 after completing a degree in development of new products. I was very Accounting/Marketing. fortunate to always have my father there. “By the time Mark, my eldest son, was He was extremely supportive.” Ron Pedder with the first Pedders in his 30s that experience I had with my branded shock absorber in the 1970s It was under Ron’s leadership that father suggested that’s what I should be Pedders Suspension evolved from a doing for my two sons. Both Scott and focus on reconditioning shock absorbers Mark had been in the business for some to take the significant step of designing time and done many different job roles. and producing its own product. “That experience I shared with my To support this radical step, Ron saw father made me think that my two sons the only way to ensure good distribution were ready. I was around as a backstop,” of his product was to open Pedder’s Roy Pedder (centre) on his Ron says. 100th birthday with Mark and Ron own stores. This strategy paved the way “It’s really special now that for the last for the commencement of extensive 20-plus years I have been able to work franchising to support Pedder’s own Founded by Roy Pedder as Pedder’s with my two sons. Seeing their success homegrown brand. This move made Die-Cast Welding Service, the business on making key business decisions, Pedder’s unique worldwide in that it originally offered services fixing general proudly supported by our team of developed, manufactured, distributed household items before finding a niche in franchise and company owned stores and installed its own product through its the automotive market in smash repairs and the management team has been the own retail chain. Steering a family and shock absorbers. most important part to me. That family Outside of business, Ron’s passion Roy’s son, Ron, soon began to ethos means a lot to us and it’s a big part was in racing rally cars and through this learn the business from the ground up, of our culture.” n passion Ron’s first foray into franchising beginning his career at age 16 painting took place. Through many gentlemen’s franchise across shock absorbers and becoming a fitter agreements in the late 1970s with his and turner apprentice at 17. Gradually, he fellow rally car drivers, Ron was able moved into a sales role and by the age to increase his company’s distribution of 23 was working full time and looking of its products. In 1982, the Pedders three generations after various aspects of the production Suspension Franchise System was fully side of the business. developed and the first full franchise The decision to franchise turned what began in 1950 as “I was very fortunate that my father operation, Pedders Frankston, was allowed me at a young age to take a humble shock absorber reconditioning business in the opened, marking the beginning of a control of the business in the early remarkable period of growth for the Melbourne suburb of Carnegie into a 120-store Australia-wide 1970s,” says Ron, who is today the business. Chairman of Pedders Suspension. network with export markets all over the world. “The decision to start franchising was “Initially, running the business was an by far the very best decision we made,” easy change in the sense of me taking Mark and Scott Pedder says Ron.

32 | thefranchisereview thefranchisereview | 33 What does it take to successfully establish a franchise brand in a Asian consumers at all so we’ve been able the initiatives before we actually deployed to tap into a broader customer base in them to the market. Post deploying, the foreign market? The Franchise Review asked two award-winning the Australian market. results that we started seeing and the franchise brands to share their stories and provide advice for TFR: What have been the main franchisees’ buy-in was amazing. challenges of establishing the brand in TFR: What’s the most important brands looking to undertake an international expansion strategy. the Australian market and how have they advice you’d give to a franchisor looking been overcome at Chatime? to expand their brand internationally? CA: The key challenge is around CA: Make sure you’ve got access to building trust. When you take someone’s adequate capital with the right strategic baby they’ve nurtured for five or six years partners to look at your market entry and make a strategic shift to appeal to a strategy. The days of licking your finger broader, mainstream consumer it’s natural and picking a market, taking your money What it takes there’s some concern about that. and go to invest there are gone. It was very easy for franchisees at the Understand that just taking a concept time to understand bubble tea and just from one market an deploying it in having franchise locations in those core another market doesn’t work. There to succeed in Asian areas. are going to have to be nuances to the We worked very closely with our offering or the positioning in the market. Laser focus business partners to bring them on that Even your communication strategy would journey, we worked closely with the board need to be reviewed. on New an international but also brought in a management team Have realistic expectations around the that had a lot of franchise experience to commerciality of the financial return and Zealand bring the strategy to life. understand it’s a medium to long-term market To address concerns, we tested a lot of investment strategy. n expansion Recognised at the MYOB FCA have driven the brand’s growth in the so it’s still strong growth given the current Excellence in Franchising Awards in two Australian market. economic environment. categories, including as the winner of the The Franchise Review (TFR): Can TFR: Can you provide more detail Excellence in International Franchising you share the story of Chatime’s about how has Chatime evolved to Award, Laser Clinics Australia expanded establishment and growth within service the Australian market? their brand internationally after more Australia? CA: Prior to the repositioning work than a decade of successful operations Carlos Antonius (CA): It was October we did in 2016, if you didn’t know what in the local market. Here, Laser Clinics 2009 when [Chatime Group Managing bubble tea was, you definitely wouldn’t Australia Chief Executive Officer, Anthea Director] Charlley Zhao and the three walk up to one of Chatime’s locations. Muir shares their story. other founders in Australian market They had Mandarin characters on the The Franchise Review (TFR): Can opened their first location in Hurstville front of the stores, the menus were quite you tell us about Laser Clinics’ growth in Sydney. The focus at that time was to complex, you didn’t see the tea or the mix to date, including details of your open locations in Asian-centric areas, ins we add to the drinks – a lot of it was international expansion? given the understanding of the bubble done behind closed curtains, so there was Anthea Muir (AM): Since 2008, Laser tea category to that consumer who had a mystery to it. Clinics has grown to be the largest grown up with that product. We redesigned the assets to bring provider of laser hair removal, cosmetic Freshly When I came on board around June everything to the front and bring injectables and skin treatments within of 2015, Chatime had 40 locations spread theatre into the stores. We reduced Australia. A commitment to be the brewed across the country and the board had the size of the menu to make it easier industry leader across our industry identified an opportunity to look at for consumers to navigate, and we service offerings, resulted in quick taking the brand outside of its core Asian repositioned the brand to be Chatime growth to over 140 clinics over our 11- franchising demographic. “Home of Freshly Brewed Iced Tea”. We year history. At that time, we reviewed what had did that to capitalize on the growth that After 11 successful years in Australia, success at been achieved in the six years to that was happening with brands such as we expanded internationally in late 2018. point as well as the business strategy. Lipton Ice Tea and Nestea at the time. Four clinics were opened across New Chatime In April 2016, we relaunched the brand We jumped on the coattails of that. Zealand from November to December with new comms, new IP, new assets and Rather than spending millions of dollars 2018, with the first two locations being In October this year, Chatime new menus. From that period, we’ve been to educate people on what bubble tea prominent Auckland retail zones. Just two celebrated 10 years in the Australian growing sustainably, and we’ll finish off was, it was easier to reinforce that we’re weeks after, we opened two additional market while also gaining recognition for this year at 128 locations in the Australian the home of freshly brewed iced tea. sites in Christchurch. Nine successful their achievements as the recipient of market. Then it was looking at our franchise months later, and we have opened the International Franchisor of the Year We’ve been able to deliver return on recruitment strategy to ensure we had a an additional seven sites with three in Award at the MYOB FCA Excellence investment for our business partners more reflective investor of the Australian Auckland, Christchurch, Palmerston, in Franchising Awards. The Franchise within their payback period forecast. population and then looking at opening Dunedin and three in Wellington. Review spoke to Carlos Antonius, Chief We’ve been achieving double digits like- in areas that weren’t traditional Asian- In 2019, LCA further drove our Executive Officer at Chatime Group for-like growth up until last year, this year centric areas. Now, some of our highest international expansion, launching our to find out about the strategies that we’ll finish the year off at eight percent, performing locations actually have no brand into the United Kingdom.

34 | thefranchisereview thefranchisereview | 35 ARE YOU ACROSS YOUR

EMPLOYMENT OBLIGATIONS?

Don’t put your business at risk

Pay Rates & TFR: Why did you select New Secondly, drive word of mouth by brand consistency whilst introducing Conditions Zealand as the location for international delivering the best-in-class customer Laser Clinics into a new international expansion and what was your strategy experience through hiring and training market. Our 50/50 franchising model and process for setting up the business procedures and support. enables us to provide a high level of Counselling & there? Thirdly, disrupt the New Zealand branding support to franchise partners, AM: We realized customer demand market with a penetration pricing strategy, which allows the support office to Discipline in New Zealand was at an all-time high. ensuring all RRPs are competitively priced. retain strong ownership over brand Many customers were dissatisfied with We achieved the above by creating collateral. To ensure we deliver a strong Matters the same treatments and technologies a cross-functional steering committee brand for our franchise partners, we being over triple the cost for the New within the Australian support office to also provide Operations Manuals, EMPLOYMENT Zealand market. manage the international go to market induction training, brand guidelines, COMPLIANCE HELPLINE Legal With the rise of social media strategy and execution for the New internal communications on the latest helping news travel internationally, Zealand Market. promotions, and regular monitoring by Obligations New Zealand customers were aware TFR: What potential issues and our support team in New Zealand. 1300 108 486 of the accessibility of Laser Clinics risks did you identify when expanding TFR: What’s the most important piece powered by for treatments that were currently internationally and what steps did you of advice you would give to a franchisor financially out of reach. Many New take to mitigate these? looking to expand internationally? Employee Zealanders were finding it more cost AM: At Laser Clinics, we believe the AM: The most crucial piece of advice effective to purchase flights to Australia key to minimising risks is to understand we would give to anyone looking to Service included in your FCA membership Disputes where they could have treatments at that risks can never be fully eliminated. expand internationally is to make sure Capped at 30 min per issue more accessible prices, and then return Therefore, as a business, we believe in you have strong systems and support to New Zealand. staying vigilant and reviewing risks on a teams in place. For example, ongoing These customer requests perfectly regular basis. operation support and an internal Discrimination matched our brand purpose of To do this, we ensure our team communication strategy. delivering affordable, high-quality beauty are aware of any potential risks and The appointment of a Country Matters treatments to the masses. This blend frequently review Australian market Manager was crucial to ensure ongoing of brand and customer is what fueled learnings and compare against New operation support within our new our decision to expand internationally Zealand, maintain solid relationships international market. Working closely and grow the aesthetics industry with our global, Australian and New with the CFO and COO, weekly sales Best Practice internationally by disrupting the existing Zealand suppliers, are armed with strong and operational reporting meetings were New Zealand market. negotiation and influencing skills and scheduled to ensure P&Ls and sales KPIs Employment To take the leap internationally, a have a two-way communication with our were met. three-pronged strategy was developed. New Zealand franchisees. An internal communication Standards First, our goal was to rapidly reach TFR: How do you ensure that brand strategy was implemented to keep a wide fraction of the New Zealand standards, systems and processes are franchise partners abreast of business market by expanding to 10 locations in maintained in your overseas operations? developments, pricing and sales erstrategies.com.au 12 months, within key retail locations in AM: With a strong brand presence in strategies. This enabled high engagement Audits | Employee Helplines | Employment Compliance Training | Franchise Employment Compliance Solutions major New Zealand cities. Australia, it was crucial to have strong with our franchise partners. n

36 | thefranchisereview Franchise sector supports mental health initiatives In a difficult economic climate, providing resources and support to promote the mental health and wellbeing of small business owners has never been more important.

Beyond Blue launches mental health guide for small business owners According to leading mental health organisation, Beyond Blue, almost one third of Australia’s 2.26 million small business owners report having high levels of psychological distress, mainly due to long working hours, social isolation, cash flow issues and conflicting demands between home and work. It’s why the Franchise Council of Australia has supported a new guide developed by Beyond Blue that is designed to aid the mental health and From wellbeing of small business owners. “The FCA is proud to be part of this important initiative that spans across a number of small business sectors,” says franchisee FCA Chief Executive Officer, Mary Aldred. “As well as providing support and resources for FCA franchisee and franchisor members, the guide provides • Planning and having a conversation franchisees join together to run a to advocate business advisers such as accountants, with someone you’re concerned campaign that highlighted the benefits bookkeepers, tax agents and family about; of exercise in addressing mental health members, with practical tips about how • What to do if the person doesn’t want issues. Each participating franchisee to provide support without needing to to talk about their mental health; and, donated $10 for each new member What it be trained counsellors or clinicians. For • How small business owners can who joined their gyms in August with FCA members, this also extends to field improve their situation. the funds raised going to Beyond Blue managers and franchisor head office The guide is available for download at to support their work in improving teams. bb.org.au/SupportingSmallBusiness the lives of those affected by anxiety, means “The FCA believes the guide allows depression and suicide in Australia. business advisers, who often see first- Plus Fitness franchisees raise “The Plus Fitness family has hand how stress can affect small business $70,000 for Beyond Blue always been able to rally behind a owners, to play an important support Continuing their relationship as a good cause and the generosity and to your role beyond providing simple business partner of Beyond Blue, 24-hour gym community support we constantly advice.” chain Plus Fitness has raised $70,000 see at a local level from our The guide includes information such as: for Beyond Blue during its National franchisees and their staff means that • Recognising the signs of distressed ‘Lift Yourself Up’ campaign which it what they have achieved here comes business mental health; ran across Australia and New Zealand as no surprise with ‘community’ By Paul Walters • How to provide immediate support during 2019. always having been a key element of to a small business owner who is Their national initiative saw more our brand ethos,” says Plus Fitness General Manager, Aussie Pooch Mobile distressed; than 150 Australian-based Plus Fitness Franchisor, Nigel Miller. n

38 | thefranchisereview thefranchisereview | 39 franchisee, Franchise Area Development • They know that you care about them, Manager and now General Manager of their families and their business – it’s the franchise. not just about the numbers. Chances I have no doubt that you currently are you have been there for them have people within your franchise family when they were going through a who are already telling the world how tough time within their career with great life is doing what they do. The you. They know you care. questions now arise - do you know who they are, and how can they help your Why do we want business? them as advocates? Let’s look at a few of quick points that Firstly, they are already in your system may assist you. – you don’t need to go out and find them again. Paul Walters How do you identify them? They are the lifeblood of your In my experience, advocates are not business, they live and breathe what you For those of us who have been necessarily long-term franchisees (but are all about, they set the standard that around since the good old days, the certainly can be). you want others to follow. term “advocate of your business” usually They are the ones who you see They make excellent trainers and defined someone who spoke proudly on your group’s social media forums mentors and are normally there for you about you, your business and the goods raving about how good they day was when you need to get some truthful and/or products you sold. despite the weather; or encouraging feedback on what is happening out in Fast forward to 2019 and use your and supporting their peers who are the field. They are the ones who don’t favourite internet search engine today also going through something that they mind helping out when a favour is asked for the same terminology, and there are themselves had been through some of them. They stand up for you in public literally thousands of blog posts and time ago. when others may not do so. opinions on the subject. Everything They are the ones who work hard and They are the ones who proudly from finding the right “influencer” to make a decent profit, even though it took showcase their own businesses to the capture and delight your social media them a while to get there. They are the public, as well as your overall franchise audience, through to flow charts and ones who you regularly call just to say, “Hi, culture. People can see how passionate key matrix formulas to ensure that you how’s the family?” or “Just get yourself they are, some of whom will say to have their own individual successful separate ways. In most instances we are getting the best ROI when finding well, and we can talk about other stuff themselves, “You know what, I wouldn’t Family ties franchises areas. Success breeds success? have found that despite no longer being and using a brand ambassador (aka later on”. mind doing what Mike does.” For our own franchise system, this I honestly have lost count how many involved in our franchise system per se, brand advocate). has been a huge part of our ongoing What’s in it for them? It’s of our “family owned franchises” started our advocates are always still involved, Peel away the layers of information Why are they advocates? recruitment success over 30 years of with just Mum or Dad following a dream, either through friendships that have and graphics, the underlying meaning This can be open to a range of not just about the money. existence. been forged over the years, or even just has not really changed. It’s still about the discussion points, but generally: I have found over the years that yes, and grew to have partners and kids We have had, and still do have, to lend an ear to someone when needed. • They are profitable (think of the enjoying the fruits of your labour is both involved full time either within the original need to have people feel good about you many family and friends start with us I can guarantee that these people still generalised equation: a profitable enjoyable and rewarding. However, those franchise, or in one of their own, and put and your business, and proactively share as franchisees because they have seen sing the praises of a franchise system franchisee equals a happy franchisee). who are the advocates for the business the spotlight on these people and their this information through their networks. what their family member or friend is that they were part of. • Your system allows them the also enjoy that feeling of accomplishment achievements in various platforms when Perhaps more interestingly, out of achieving and want to do the same. Hopefully, before your marketing freedom to do what they love, while by seeing the bigger picture and helping marketing for franchise sales. the many blogs and infomercials I have We have an amazing team of some specialists come up with a proposal being supported throughout their others to do so too. They love feeling browsed through, most, if not all, are nine family and friends in one state that all for a major cash investment to market franchisee journey. They are not in it part of “the family” and being involved When it’s time based solely on gaining leverage in a tight started because Mum wanted a lifestyle franchise sales within your system, alone. in that close-knit culture that successful market to sell your goods and or services, change. From that one idea, Dad, one to say goodbye you may take a moment to think a bit • They love the product or service that franchisors have. They are the ones who be it coffee, activewear, home loans, fuel son, two daughters and their respective Like many relationships, there comes differently before signing off on it. they provide and can see how much are happy to help, without invoicing you and even dog grooming services. partners, and two best friends now each that time when parties do go their own Who do you have in your system? n their own customers do so as well. for doing so. So, if the goal of a franchisor is to ideally sell franchises, how does that work? I’m not sure paying someone with 237,000 followers on various social The Lott* oers Australia’s ocial lottery games media platforms to say, “hey I’ve just which Australians trust and love! bought a mobile dog wash franchise – When look at me go! #livingthedream” is really Each year Australia’s Ocial Lotteries make dreams come true. With going to bring the return on investment the help of our retailers, Australia’s Ocial government-regulated that a marketing budget requires. Australia Lotteries play an important role in helping to support Australian Over my 10-plus years of being communities with over $1.1 billion^ available for hospitals, schools involved with franchising, I have actually and sporting groups. ^State Lottery Taxes FY18 Australia-Wide (ex.WA). come across these much-cherished dreams, individuals on a daily basis, all without We are Australia’s largest franchise network with almost 4,000 the need to have a marketing teamwork franchisees, operating across all of Australia, except for WA. overtime. It’s really quite basic – they are we all win! profitable, happy franchisees. For more information please email [email protected] I have completed the full journey Why join us at the Lott? *The Lott represents Australia’s Ocial Lotteries which are sold by licensed entities: myself: starting as a customer of Tattersall’s Sweeps Pty Ltd, Tatts NT Lotteries Pty Ltd, New South Wales Lotteries Corporation Pty Ltd, Golden Casket Lotteries Corporation Ltd, and Tatts Lotteries SA Pty Ltd. our product, then becoming young, impressionable franchisee with my wife, through to becoming a multi-unit

40 | thefranchisereview thefranchisereview | 41 New membership program and enhanced customer change between digital and retail “As customers join our new transactions and allows franchisees membership program, we have the to benefit from commissions on the opportunity to provide them with an products purchased in store using digital enhanced customer experience. This experience to funds. includes more relevant and personalised “Finally, once the Lott One communication about our products and membership program was introduced, we services. reimbursed customers any outstanding Mr Moore said it wasn’t just the Lott’s drive growth membership fees they had paid customers who were benefiting from the previously for our membership program. changes. This was easily redeemed instore, on their “The new membership program not digital account or via the app.” only strengthens our relationships with at the Lott The new the Lott One membership our customers, but also strengthens program has been successfully launched our relationships with our retailers as across all the Lott’s jurisdictions and is they have become advocates for the pending regulatory approval in South membership program because of the The home of Australia’s notifications, and in-store payments provide personalised experiences both improve the membership program were Australia. benefits they now receive,” he said. using digital account funds. It also gives instore and digitally. the introduction of free membership, SMS While the new membership program “We do know that this is an ongoing official lotteries, the Lott the Lott’s franchisees the opportunity to “It was also imperative that our win notifications, pay instore using digital was in its infancy, Mr Moore said the Lott project and we are working closely with has begun rolling out benefit from digital commissions. extensive retail network understood that funds and reimbursements of previously had already started to see the benefits. our franchisees and industry associations, By revamping its previous paid the digital channel was not competing paid membership fees. “Since the introduction of the program as well as our growing customer base, so its new membership membership program, the Lott General with the retail channel.” “Customers told us that they wanted three months ago, more than 150,000 we can continue to improve the program program as part of its Manager of Lotteries Retail Antony Moore Consumer research identified that a free membership so when we created the customers have signed up for SMS win to ensure everyone is benefitting now and explained the business would be able to registered player who purchased their Lott One, we knew it had to be free and notifications,” he said. into the future.” n strategy to drive growth secure future growth by having a better entries both instore and digitally, was beneficial to our customers,” Mr Moore understanding and relationship with its far more engaged with the Lott’s lottery said. through an enhanced With a network of more than 3,800 outlets across all Australian states and customers. products than a digital-only customer. “We also introduced SMS win territories, except Western Australia, the Lott is the nation’s largest retail franchise customer experience. “Research showed us that we had Mr Moore said this insight highlighted notifications, which is a feature that network. The home of Australia’s official inconsistencies in the experience there was no benefit to any stakeholders provides a link between the customer lotteries, the Lott has begun rolling out customers received across our digital in driving customers to just one channel, and franchisee. This is an important The Lott offers Australia’s official lottery games from NSW Lotteries, Golden its new membership program as part of and instore retail channels. Customers either instore retail or digital. value-add for the customer. By providing Casket, Tatts and SA Lotteries. This includes games like Saturday Lotto, Monday its strategy to drive growth through an also told us that the biggest barrier “We know that our omni-channel their mobile number when they purchase & Wednesday Lotto, Oz Lotto, Powerball and Instant Scratch-Its, which give enhanced customer experience. for them to join our old membership customers may start their lotteries their ticket, they can opt-in to receive a customers the chance to dream big every day. The result of more than a year of program was the membership fee,” he interaction in one channel and end their notification if they have a win. Franchisees with the Lott include a range of small businesses, including research and development, the Lott’s new explained. journey in another,” he explained. “It is also an important value-add for newsagencies, convenience stores, convenience supermarkets, pharmacies, and membership program, the Lott One, is “Trends tell us that the future of retail is “It is important that we moved away franchisees as this allows them to benefit tobacconists. from commissions based on the number now available in its NSW Lotteries, Golden about the fusion of retail and digital sales, from the traditional parallel channels and In the 12 months to 30 June 2019, more than 131.8 million winners took home of customers they encourage to sign Casket and Tatts jurisdictions. Work is so to secure our growth in this space had a really seamless experience across more than $3.3 billion in prize money from their favourite games at the Lott, up to our omni channel membership also underway to make it available to SA we needed to develop a membership both channels. including Saturday Lotto, Monday and Wednesday Lotto, Powerball, Oz Lotto, Set program. Lotteries customers. program that worked across all channels. “We needed to make sure that moving for Life, Lucky Lotteries, Keno, Super 66, Lotto Strike and Instant Scratch-Its. The updated membership program “This is important to the future of our forward the membership program “We have further fused our retail and In the 12 months to 30 June 2019, Australia’s Official Lotteries contributed provides a better customer experience business as it will allow us to know more supported this and made the experience digital channels by allowing customers more than $1.4 billion via state lottery taxes and donations to help community through a range of new features, about our customers so we can better consistent across both channels.” to pay instore using digital funds. This initiatives, such as hospitals, health research, disaster relief and education. including free membership, SMS win create direct relationships with them and The key initiatives developed to ensures that customers can seamlessly

42 | thefranchisereview thefranchisereview | 43 Time to eliminate “Many of our customers have told These will initially be used in single-use plastic us that they love Chatime but are keen Chatime’s UTS and Murdoch T-breweries. for us to find alternatives to single-use This will be extended as part of a Chatime Australia, winner of plastic. We want them to continue 10-location trial in February 2020. the International Franchisor of the to enjoy the great taste and quality Chatime is now also offering customers Year Award at the 2019 MYOB FCA of Chatime tea, so finding practical a reusable cup in all of its locations. Excellence in Franchising Awards, has solutions is really important.” These bioplastic cups are currently announced its plans to eliminate single- As part of the initiative, Chatime only compostable in industrial compost use plastic from all of its 125 locations Australia is trialling a specially designed facilities, so Chatime has teamed up with nationally by 2020. new paper straw made with Forest a contractor to collect used cups and “Plastic pollution is a massive Stewardship Council (FSC) certified lids from its T-breweries and send them environmental problem and we want to paper from managed plantations in all away to be composted. Franchises be part of the solution,” said Chatime 125 of its T-breweries across the country. “We anticipate that by leading CEO Carlos Antonius. The transition from single-use plastic the way we will increase demand for “Project Happy Turtle will see us trial cups has started with compostable cups compost facilities for these types new products and solutions as we aim to and lids made from bioplastic, which is made of products and help create a more leading the phase out single-use plastic by 2020. from plants, rather than fossil fuels like oil. sustainable community,” said Antonius. n way for sustainability When it comes to Breaking free of waste The franchise has also changed from black lids to white lids on their Winner of the FCA’s 2019 Franchisor sustainability, a small take-away cups to improve recycling Social Responsibility Award, Muffin Break, outcomes and reduce the impact on action amplified across a has made a commitment to sustainability Australia’s landfill, as well as removing by reducing the coffee cup waste stream. franchise network has the single-use plastic bags, plastic straws “Over five years ago as a team, loans potential to make a big Muffin Break decided that landfill was and plastic cutlery and replacing these Powered by not going to be our legacy and we with more sustainable options across difference. Muffin Break went about finding a partner that would the network. Muffin Break has also focused on and Chatime Australia are help us change the game in relation to sustainability,” said Natalie Brennan, educating kids on the topic of sustainability two franchise systems who General Manager of Muffin Break. by running Little Grower workshops, where In August 2018, Muffin Break children are taught how to plant and care are reducing their own partnered with coffee cup recycling for a seedling which they get to take home environmental footprints program, Simply Cups, to divert 11 million at the end of the workshop (above). takeaway coffee cups from Australia’s “Our franchisees have been really and in doing so showing landfill in an initiative that sees Muffin behind the whole process of sustainability. the way for others to Break pay to have one cup recycled by They’re the ones who have driven it,” said Simply Cups for every takeaway coffee or Brennan. become more sustainable hot drink sold by the franchise. “A big thank you to MYOB and FCA In addition, Muffin Break offers a 30- this Award but I hope that it might be in their own businesses. cent discount on coffee for customers one of the last awarded. Our hope is every time they bring in a reusable cup that sustainability is not special, it’s just for their hot beverage. business as usual.”

44 | thefranchisereview thefranchisereview | 45 FCA Tech Tour & The Franchise IFA Convention 2020 ™ Join the FCA in Seattle on a tour of Rating Scale some of the world’s leading technology companies in a once in a lifetime opportunity before heading to Orlando for more professional development as part of the FCA delegation to the 2020 International Franchise Association A Focus on Performance (IFA) Annual Convention. and Transparency

The Franchise Rating Scale™ is FCA Tech Tour: underpinned by seven performance embracing 2020 and beyond standards which include: Seattle, 3-6 February 2020 Day 2 (morning): Day 3: Boeing • System performance Want to know what is Amazon Go Store See how Boeing is leveraging technology transformation initiatives • Franchisee financial performance Ever wanted to see, touch and feel the coming next and how to retail vision of Amazon? Experience the to drive the global organisation in its • Franchisee engagement and satisfaction prepare your franchise Amazon Go store that has no checkout, second century of operation. just grab and go. This AI driven retail store Visit the massive Boeing assembly • Franchisor training and support to succeed in an age of is a working example of what is possible plant near Seattle and see a variety of • Franchisor financial performance digital disruption? Want with AI driven services. different planes in production. Then As only one of just two such stores in explore the interactive exhibits in the • Lender relations to know how Amazon, the world this experience should inspire Aviation Centre Gallery and Future of • Compliance and assurance Facebook, Starbucks, you to think about the possibilities for Flight Museum. your brand experience and operational Microsoft and Boeing future. Cost Following a robust and independent operate? The total cost for the tech tour is Day 2 (afternoon): Facebook $3900 ex-GST and includes: assessment, franchise systems are allocated This once in a lifetime tour has been and Workplace with • Three nights’ accommodation at the a performance outcome (star rating) which created by the FCA exclusively for FCA Hilton Garden Inn members to provide exposure to the Starbucks case study can be used at their discretion. • Flight from Seattle to Orlando technologies that will shape franchising in Visit Facebook’s Seattle HQ to (leaving Thursday night on 6 Feb) to the next decade. discover their vision across Facebook, Instagram, Whatsapp, Workplace, attend the IFA Annual Convention Day 1: Microsoft Virtual Reality and Voice services and • All transfers to and from destinations on the official program Visit Microsoft’s Enterprise Briefing how businesses can leverage these (once you have arrived at the Hilton centre, Cybersecurity defence centre and technologies to drive growth. Garden Inn) visit the ‘cloud’, yes you will be taken on Find out how Starbucks have Australian Franchise Rating Scale – 2019 • Buffet breakfast at the hotel. Lunch a guided tour of one of the most secure leveraged Facebook’s technologies and dinner each night – base drinks cloud data centres in the world. You will to drive sales and accelerate their packages at night events be briefed by their global productivity strategic objectives across their • All tour costs at the tour venues and retail specialists and hear from their network of more than 30,000 retail Provide your franchise with the Does not include registration to IFA Convention 2020 VP of Global Partnerships who manages stores in 80 markets. credibility it deserves. a global partner network of 650,000 Meet the Facebook Workplace Global independent local partners. head of partnerships to learn how modern Want to see the house of the future technology mega vendors support or unreleased technologies? Join us to their independent partner channels and Register your expression of interest experience Microsoft’s vision in their drive accelerated growth through local in joining the FCA’s Tech Tour at purpose-built facility on the Microsoft partnership channels and see Facebook’s [email protected] Campus. connected franchise vision.

Contact FRANdata today to learn more www.frandata.com.au 02 8346 6093 [email protected] thefranchisereview | 47 Whether you’re considering international expansion or interested in FCA learning more and networking with other seasoned franchise professionals from Delegation around the world, the IFA Convention has something for you. to IFA The FCA is pleased to provide members with a special discount rate to Convention attend the IFA Convention 2020, hear from high-profile keynote speakers, 2020 participate in a wide range of networking Need someone who understands your and educational events across the three- Orlando day program. 8-11 February 2020 IFA Convention delegate registration business? as part of the FCA delegation costs AUD The IFA’s 60th $1800 per person ex-GST and includes: • Access to the complete IFA Convention You’re an expert at your business. We’re experts at ours. Kwik Kopy is a complete one-stop-shop for Annual Convention is program franchising’s biggest • FCA Australian Delegation only - all your franchise business marketing needs. Welcome Drinks evening (Friday 7 Feb) event for business • New Member & First Time Attendee Whether you need quality print material, great graphic design, eye-catching signage or a development and Workshop (Saturday 8 Feb) • The Buzz (Saturday 8 Feb) professional website; with our decades of experience, you can trust us to produce quality products personal growth • Invitation only Traditions Dinner attracting more than for FCA Australian delegation in to achieve your business goals. memory of Rupert Barkoff - Kilpatrick, 4000 attendees and Townsend & Stockton PL (Sunday 9 offering 50 educational Feb) Talk to us about your franchise printing needs today. sessions. • International Reception (Sunday 9 Feb) • International Attendees’ Networking Event (Monday 10 Feb) kwikkopy.com.au/fca • FCA Australian Delegation only - To register as part of the FCA Presentation by Josh Merin, Senior Vice delegation to attend, please visit President & Chief of Staff, IFA (Monday franchise.org.au/international-events 10 Feb) • The Bash (Monday 10 Feb)

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