ISSUE 63 EDITION 3 2020

The business resilience issue

FCA advocacy and assistance

Franchise innovation and adaptation

Crisis leadership and communication

Supporting franchisees

Compliance and risk management

AUS $6.95 | NZ $7.95 9 772652 ISSN 2652-1237 123000 03

OFFICIAL JOURNAL OF THE FRANCHISE COUNCIL OF AUSTRALIA thefranchisereview | i Contents 2 A message from the CEO 4  Opportunities for franchising in the current market 8 Resilience in franchising: Adapting in uncertain times 12 Crisis leadership through the uncertainty of COVID-19 15 What you can expect from your franchisor to help you through the economic downturn 18 Set your business up to thrive in uncertain times 2 23 Communication is the key to success 26 Making the new normal work for you and your workforce 28 $700,000 Relief Fund to help franchisors support franchisees 29 Building business resilience at InXpress 32 Demystifying cyber risks for business 34 Peace of mind from getting your brand’s employment compliance right 36 Looking to reduce your business’ energy costs? 8 37 Franchise recruitment 2020: trends and tips 40 Business as usual in unusual times the Lott supports retailers throughout COVID-19 43 Intensive care can revive your business 46 Review, revamp and refresh: Adapting your franchise’s business model to thrive during COVID-19 48 Why Nurse Next Door is thriving in the new COVID world 50 MBE goes contactless with launch of online services 15

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thefranchisereview | 1 A MESSAGE FROM THE CEO

Rethinking business in a “Previously, innovation in business was only thought of as start-ups and new jobs, when post-COVID this pandemic has proven it’s so much more. It is also about what do we do now that we can do market differently, and better.” By Mary Aldred, CEO, Franchise Council of Australia

I had hoped three months ago, as The FCA has also been providing our customers, and the way we market to at many possibilities for your business, For international cities like Melbourne jobs, when this pandemic has proven it’s many of you also would have, that by expert advice and support for members consumers who buy our products. not just one. And while we can’t employ and Sydney, there’s a huge correlation so much more. It is also about what do the time I wrote my next FCA CEO’s on key business operations and A Sensis business survey in August people who can predict the future, we between how those international we do now that we can do differently, piece there would have been significant compliance matters, especially workplace said that 13% of metropolitan businesses can create an anticipatory culture within travellers sustain retail trade, and how and better. improvement in the impacts of COVID-19 relations and the challenges associated indicated they would close their doors in an organisation. retail trade directs the city ecosystem, In franchising, there’s been some pandemic and that harsh restrictions with remote workforce management and the next 12 months, and 5% of regional You can’t hang out your shingle and from trading hours, community safety great examples. Home repairs businesses would have been lifted across Australia. working from home. businesses would do the same. I suspect expect people to come buy your coffee. and cultural attractions. prevented from day to day jobs because Unfortunately, that has not been the As some of the larger industry groups, it will be far higher than that. What are your targets? How are you That’s why we’re seeing a rethink on of government restrictions are now case, especially in Victoria where most such as airlines, retrench significant Cultural, accommodation, cafes, and going to meet them? How are you going retail outlets that were once thriving in installing Perspex glass to protect retail businesses remain closed, and in other staff, the FCA has been promoting best restaurants were most worried about to out market your competitors and have the CBD, with their outlets forecast to workers and partnering with Bunnings states there is weak recovery being practice franchising as a good investment their prospects. Construction, building, nimble and lean supply chains? Systems rationalise in number, but surviving in home deliveries that have exploded by reported with various surveys indicating option to run a small business and transport, storage, finance and insurance and processes win the day. the suburbs and regional towns where 100%. many are still at risk of permanent closure develop a new career. were most confident about their survival. That’s why I like franchise systems. people are living and now working too. Macca’s and Pizza Hut are providing or reduced size of operations. I have been particularly impressed by The FCA recently commissioned Because if you’ve got a passion for People are changing their shopping milk, bread, toothpaste and eggs for The FCA has continued to proactively businesses adapting and implementing our own research through FranDATA. serving your customers and working in a habits and long-term consumer people who can’t leave home as part of help members navigate complex and innovation in the current environment That research found that 46% of survey team, franchise systems give you those behaviour. a convenience option. This goes to the continually changing government as their strategy to survive, and in some respondents reported their revenue last processes, supply chain advantages, Convenience stores and petrol heart of businesses trying to support restrictions on business’s ability to cases even thrive. quarter was less than 50% compared to market analysis and data that gives you stations, where people once grabbed vulnerable customers, especially where operate, particularly home services The Australian economy is the previous quarter, and that the hardest a better shot at success than going it some milk and a loaf of bread on the way there was panic buying at the start of the where there seems very low risk to the fundamentally altered and will continue hit businesses were cafes, restaurants, alone. home, are seeing customers now doing pandemic. community of having those services to be this way until we can contain the fitness clubs, accommodation and child Part of that technical and data more of a grocery shop there, or buying Jack Welch from General Electric still working, especially when their virus, and beyond that. services. driven approach to business means more from their local bakery, to avoid once said that when the market is government-owned equivalents are Governments are regulating the By comparison, 37% of respondents looking closely at how our operating crowds and queues at shopping centres. moving faster than your business you are operating. way businesses are allowed to operate, actually reported an increase in revenue, environment changes. Let’s take city CBD The lifestyle benefits of regional areas doomed to fail. And there’s no bigger Commercial leasing arrangements or not operate, on a weekly, daily and with takeaway food, maintenance, health, areas for example. are coming into their own without the test of that right now, in the biggest have been a continuing source of friction sometimes hourly basis. freight and baked goods having an Office jobs won’t return to what they worry about a long commute into a CBD economic crisis any of us have ever lived for both small and large businesses. Because of this, we are now moving improved trading outlook. were before this virus. We’ve proven job. You can now do nearly any job based through. The FCA has secured an exemption on back to a hyper localised life. We’re all There’s a couple of guiding principles people can work from home, or as a miles away from home. From a business Think about your product, your place collective bargaining on commercial living, working, and shopping in our at play for businesses who I’ve seen hybrid between the office and home. perspective, that’s a great investment in the marketplace, and more importantly, leasing from the ACCC and state-based own suburbs and towns, and that is succeed through what you’d call a culture We’re not going to have the same levels signal for regions. the role you can play in helping our leasing legislative reform remains a key habit forming over the longer term. That of innovation. of international travellers and students Previously, innovation in business was community make it through this to the priority. changes the way we interact and serve The first is scenario planning. Looking coming into the CBD. only thought of as start-ups and new other side. That’s a job for all of us. n

2 | thefranchisereview thefranchisereview | 3 Opportunities for franchising in the current market By Rod Young Managing Director, DC Strategy

While it is easy to be With challenges come opportunities Online growth strategy offering to sell existing company owned the support infrastructure of a franchise and those franchisors with vision and stores to new franchisees, providing them brand. Some DC Strategy clients and their despondent about determination are already reaping the with a low-risk opportunity to get into Alternatively, the number of franchisees are reporting 2020 financial benefits that franchising can provide. business with instant cash flow and a businesses for sale is increasing as some the current business year results that exceeded 2019 by over During and following this COVID-19 proven and profitable franchised business independent owners just don’t have the 10% with the May, June, July 2020 quarter and employment crisis, franchising can be better with the figures to show that good profits desire to press on in times of uncertainty. one of the best ever results and the first suited to both growth of business can be made during the COVID-19 period This represents a real opportunity environment and outlook two months of the new financial year unit revenue and the alternatives of even in the restaurant business. to increase the footprint of a franchise exceeding expectations. in the wake of the network development by investing Furthermore, to drive network growth, network. The use of the internet for COVID-19 pandemic, further capital into more company Tewari is planning to invest the proceeds We are actively encouraging DC communications and e-commerce has owned stores, vans or offices to grow from the sale of these company owned Strategy clients to match prospective franchising is a dynamic taken at least a five-year leap forward revenue and profits. stores into new stores and repeat franchisees with good competing management and It is important to understand that in the past six months and those who the process of converting them to independents and execute a sale and have pivoted quickly to embrace this marketing system both the business environment and franchisees. conversion to the franchisor’s brand. The consumer behaviours have changed phenomenon are reaping significant new franchisee steps into an existing but and the value of the and changed permanently. benefits. Conversion growth strategy rebranded business base, the vendor exits While foodservice businesses have But don’t be misled that this is bad Not all franchisors and franchisees the market and the franchisor takes out franchised business been smashed and many forced to close, for business across the board. have been successful in the current a competitor and adds another outlet to many franchisors, like Soul Burger, have model is being There are some sectors which may market, however the success of the network. demonstrated during take years to recover, with airlines, responded with new activity, tactics and franchisees exceeds the success rate Franchising provides the two travel agencies, cruise ships, tourism strategy. of independent small businessmen and primary requirements for growth in what is the biggest and some retail sectors in a world of New franchisor, Amit Tewari, the women, and many franchisors have today’s COVID-driven environment and challenge to business pain. Founder and CEO of Soul Burger saw grown substantial businesses during franchisors need to invest in redeveloping sales plunge as COVID struck Sydney and and our community However, cocooning is driving 2020 several very difficult economic episodes their business model and/or franchise sales levels well past 2019 figures in home delivery became his only market over the past 50 years, the latest before offer and spend more now promoting since the great many sectors and these sectors will with store sales down 70%. Delivery fees the current COVID-19 emergency being their franchise opportunities. depression. continue to benefit from the money were gouging the meagre gross profit the Global Financial Crisis. provided by governments in fiscal remaining. We believe lack of success in an Human resource stimulus and the switch from billions Rather than sit on his hands and ocean of opportunity is due in part to At no other time since the great spent on domestic and overseas travel hope things would get better, Tewari the underestimation of the know-how depression has unemployment in and dining out, to food, home and not only accessed all the State and required to build successful networks and Australia been higher and the outlook wellbeing-related purchases, including Federal Government assistance he could brands and grant franchises to compete is for this to remain elevated for years cleaning services. qualify for, including JobKeeper, but also in a sophisticated and competitive COVID with over one million Australians now While 10% of the workforce may restructured his whole operation and and post-COVID market and the failure to unemployed and Seek, the job advertising be unemployed, those who were staffing model, launched new product embrace change. marketplace, advising August 2020 job unemployed pre-COVID have seen lines and created a partnership with One strategy to drive growth is the ads are down about 30% on same month increased benefits and the 90% still in a delivery app developer focused on conversion of independent competitors in 2019. work are still spending at pre-COVID capturing his own online orders resulting to join the franchise network. With low wages growth in our levels but often via the internet and in the business at his stores skyrocketing As small businesses look to the economy, and high unemployment delivery services. over the last three months of F2020. The future, some owners are finding that driven up by the current health crisis, As a result, an online offer is no result was a new retail-based but online independence means being alone in a many Australians are highly motivated longer an option but a necessity for focused business model that produces tsunami of change and are fearful of to get into business and generate above every franchise network and their comparable profits to pre-COVID sales. the future. Joining a franchise can be average wage incomes and an asset for franchisees. To encourage new franchisees, he is a lifeboat to a more certain future with the future.

4 | thefranchisereview thefranchisereview | 5 Given that independent small business Franchising is a highly effective “Pivoting to the new normal failure rates are high in the first 5 years, human resources strategy. It can bring and executing impeccably and 50% of those who fail do so in the the right people to manage growth. on strategy during and first 12 months, while the best advised, Australia’s workplace laws and wage prepared and operated franchise systems policies have become so onerous that beyond this COVID-19 crisis have franchisee failure rates of less many businesses choose not to grow will create the profitability than 2% in the last 5 years, the better further as their payroll balloons with to attract quality franchisees Painless Return to Work developed franchisors are well placed to company-operated locations and and eventual investors.” continue attracting the best franchisees the hidden costs of payroll tax, staff and building significant enterprise value turnover, loss of intellectual capital, and Keeping track of time is at the heart of your workforce — for themselves and their franchisees. the continual recruiting and training of As budding entrepreneurs look to a new staff, workplace compliance, staff arrangements to build further locations, and your business. business model that reduces the risks of theft and unfair dismissal claims that eat so no interest or collateral requirements being self-employed and can provide a into profits and the return on capital and like bank guarantees, and very MizziSoft’s EzHrPay software manages future for their family and jobs for them equity tied up in a growing business. importantly, no dilution of equity or and their kids, franchising is well placed to Correctly recruited, screened, reduction in control of their operation. your payroll, hr, rostering and time and attendance capitalise on these opportunities. selected and trained franchisees who Many employees have realised that need to get into business and out of The elite 15-20% of even so-called secure jobs are at risk the COVID-19 unemployment queue are successful franchises and have found themselves unemployed motivated owner-operators with ‘skin in Of the approximate 1200 Australian Attendance Management or just surviving on JobKeeper with a the game’ (their own money invested), franchise networks, only a couple of Payroll Management precarious outlook. driving sales, improving profitability, hundred operators have a franchise These include a large group of middle managing costs and staff and caring model that has grown to critical mass and upper-management executives for their customers under the franchise or have enterprise value in excess of 12 1 Leave well capable of running and managing brand at the customer-end of the $5 million. Developing your current Roster Planning businesses who are now seeking business network. business into a franchise system Management opportunities to provide them and their Now is the time to invest in robust enough to expand in the 11 2 families a future in which they have more developing and expanding a franchise current environment requires a flexible control than when they were an employee. network to take advantage of this approach and good strategy and This new class of franchise buyer emerging demand. execution. Employee Costing & presents a valuable resource keenly Franchisors such as Poolwerx, Capital raising sought by good franchisors and Ben & Jerry’s, The Yiros Shop, MBE, Self-Service 10 3 Budgeting represents a significant new opportunity There are billions of dollars tied up Ovenu, Motto Motto, Nurse Next to attract quality franchisees. in equity in Australian homes and the Door, Thermawood and other nimble Franchising fulfils many of these needs Federal Government has announced a franchisors are already reaping the for those individuals who find themselves Ez Hr new program to provide guarantees to benefit of modifying their franchise Time between opportunities and looking to get banks to lend money to small business, offering and plunging heavily into the 9 Work Load into business. which of course includes franchising. promotion of their brand and their Recording 4 As the following graph provided by Franchisees can bring the capital franchise opportunities with new Generation the DC Strategy’s Franchise Sales and required to expand, one unit at a time. franchises already being granted during Clocks Lead Generation division shows, demand For the business owner choosing July and August and a pipeline of for franchises, which plummeted in March to adopt franchising as a business prospective franchisees stretching into 8 and April, is accelerating and is predicted development strategy to grow an 2021. 5 to exceed 2019 levels before the end of already proven and profitable company- All this while the timid stand on the Training Planner Forecasting 2020 and remain high for at least the next operated business, this means they sidelines of business and hope things 7 6 3 years. do not carry bank loans or finance will improve before they decide to act. Pivoting to the new normal and executing impeccably on strategy Automatic Resource Lead Generation Monthly Stats 2020 during and beyond this COVID-19 Award Interpretation crisis will create the profitability to Allocation 400 attract quality franchisees and eventual investors. 322 314 This will allow these franchisors to 300 join the elite, successful, sustainable 261 franchise networks and brands that ALL IN ONE SYSTEM will be among the icons of Australian franchising in the coming decades. n 200 NEW: Temperature Testing Time Clocks & Sanitizer Stations 184 154 157 About DC Strategy to assist in the Safe Return to Work 122 Count of Deals of Count (DCS Franchise Group) 100 Founded by Rod Young in 1983, DC Strategy is an Australian end- to-end franchise consulting, legal, www.mizzisoft.com.au 0 recruitment, lead generation and Jan Feb March April May June July marketing firm. Contact Jodie English at MizziSoft Pty Ltd For more information, visit Create Date www.dcstrategy.com [email protected] (0427) 577 688

6 | thefranchisereview With dining restrictions enforced in recent “We have sought to stay months, Quick Service Restaurants (QSR) have ahead of the game where possible and ensure we had to change the way they communicate, had workable and effective operate and deliver to meet customer needs solutions for each challenge and demand, and respond to changing policy. our franchise partners faced. craveable brands. CEO Karen Bozic explains We are proud that the majority of feedback from how its network of franchise partners across our franchise partners about 580 Red Rooster, Oporto and Chicken Treat how we have handled the restaurants was supported in adapting business complexities during the crisis to succeed in uncertain times. have been excellent.”

Support required. This has enabled our franchise constant and quick sharing of information partners to focus on trading, hygiene and so members could consider options The level of complexity that franchise building customer trust in an uncertain and approaches before scheduled businesses have had to deal with in recent environment. meetings. It was this agile and informal months has been immense. At craveable Resilience in communication stream which proved to brands., we have a core team of 180 Communication be very effective and allowed for a fast people to assist and support our franchise craveable brands. has a national response time. partners, and to help them navigate network of 13,000 people across We knew communication with our tumultuous events like the recent franchising: 580 restaurants. The constant flow franchise partners was key to help them coronavirus outbreak. The advantage of of information, changes in policy and understand how we as a company would having three brands is being able to draw regulations, and local response over navigate regulatory changes, upkeep on the collective knowledge and wisdom recent months has affected each supply and support our restaurant of three groups to provide franchise Adapting in franchise partner differently depending owners in changes to delivery. We partners clarity and solutions in a very on their location. We very much adopted held information sessions, funded one complex environment. a strategy of optimising how we traded on one sessions for external advice There is a lot of responsibility to in the circumstances we found ourselves where franchise partners wanted it, and uncertain times in, aware that regulations or other circulated numerous communications to get things right on behalf of our circumstances could change at any time. help. We also trained our operations team By Karen Bozic franchise partners, particularly As a parent company, it has been our role in the field across these topics to ensure CEO, craveable brands. when the market changes so to decipher and deliver information so they could assist our franchise partners in dramatically. franchise partners better understand their the field. options and responsibilities. We needed to remain in regular Our support has included navigating We formed a core working group contact with our franchise partners to and rolling out new processes, sourcing across our brands and key support ensure we stayed connected with what urgent items such as sanitiser, gloves and areas which met daily to find uniform was happening in stores across the masks, and providing guidance through best practice globally and domestically. country. Regular video conferencing and accessing stimulus and government This group communicated regularly via calls were used to update and connect support. We have had our team in video conference calls, but importantly, with our franchise partners and team on stores coaching franchise partners a WhatsApp group was used to quickly our responses to change, which were on operational changes, conducting disseminate information as restrictions happening quite literally by the hour, and regular communication, and of course were introduced, eased and re-introduced the help available to them. We might not providing financial assistance where in some markets. This channel allowed for have had all the answers, but we could

8 | thefranchisereview thefranchisereview | 9 share what we knew and explain what we other aspects of life in general may return changes we’ve introduced have worked were planning to do. This is something we to “normal”, our customers will continue so well during the recent crisis we wonder had done less frequently before, but which to do what works best for them. We why we weren’t doing them before, and we plan to continue as the feedback has intend to sustain the rhythm and pace of as such, many changes are here to stay. PROTECT YOUR BUSINESS – INVEST IN YOUR FUTURE been positive from our franchise partners. our efforts to accelerate convenience, no Trust, convenience and a return Communication was required with matter what the future holds. to the simple things are going to be our stakeholders too. Interactive video Fortunately for those in food service, attributes that customers will continue to Insurance Partner of the FCA sessions were held weekly with our 180 people have to eat, and those playing connect with beyond the pandemic. We restaurant support staff, instore signs and at the value end can still remain an are thinking about this a lot across our During these uncertain times, how you manage & protect communication through our CRM helped affordable and convenient alternative multiple customer touchpoints, channels your business and employees is critical. our customers navigate through the when things get tough. In an environment and brands as we turn to strategy changes, while our brand CEOs were in full of uncertainty, people turn to brands execution going forward. Principles The right type and level of insurance, specific to your business and how you operate, and offers they can trust, and that has around transparency and greater levels of constant contact with franchise advisory is your financial backstop for many adverse events that might happen. councils. As an industry, we united to find certainly been true during the pandemic communication is something we want to a way to be able to continue our core when more customers have turned to us take forward. We have seen exponential business purpose – to provide Australians more often. Established brands like Red delivery growth in all three brands and Invest in future, don’t risk you future!! with affordable, convenient and quality Rooster, Oporto and Chicken Treat are expect this channel to continue to do well. food. Importantly, our individual brands who customers can turn to when they As a business we have loved the agile, Two practical ways that Benjamin & Benjamin Insurance Group can help you right also responded in a bespoke manner when want to make their lives easier, bring a fast, resourceful and flexible ways we now: it came to product offers and connecting bit of joy during a difficult time and give have worked as a team during this period with customers. them a break from the pantry lockdown and the support that has meant for 1. An obligation Free audit of your business insurances – ensure you are not over or diet of pasta, rice and beans. franchise partners. These are behaviours A crisis of this magnitude creates and focuses we want to continue. under insured, and that you have the right premiums. complexity in many areas. When it came 2. You can defer your business insurance premium payment for two months, if you to supply chain, not only did we have Conclusion to ensure supply of our usual stock One of the many things we have choose to pay your business insurance premium using premium funding arranged was maintained and in many instances learned this year is that no day is exactly through Benjamin & Benjamin Insurance Group increased, we also had to procure and how you plan it, and resilience and supply Personal Protection Equipment adaptability in business is more critical Call Richard Cholewick on 0499 038 566 or 1800 Benjamin (1800 236 526) to all our franchise partners and staff, as than ever. As someone who grew up in a well as hygiene/sanitisation products to family business, I very much understand *Can include workers compensation premium customers. that the whole family’s livelihood depends Our approach during this crisis has on that business, and that has shaped the **Is open to all new clients until 1st October 2020 been to move with speed and then way we have prioritised supporting our ***Is subject to the credit acceptance and lending criteria by the Financier refine over time. A great example is the franchise partners. requirement to collect customer details. I am proud of how the QSR industry Initially, as a quick solution details were has responded to recent challenges. Responding to collected on the POS and iPads, this was We know the important role we have then migrated to QR codes to make it customer needs in feeding Australia, and as an industry, easier for team and customers. we have moved quickly, and shared When taking the role of CEO in practice and knowledge to ensure we can December, the overall strategy adopted Foundational change continue to operate when our customers was of transforming craveable brands. Social distancing has fundamentally need us. into a modern, customer focused changed the way customers and staff We’re incredibly proud of the way powerhouse of food brands. While interact and operate. For bricks and craveable brands.’ franchise partners customer-focus has always been a mortar fast food outlets, we need to have worked with us to pivot and adapt priority, we’ve seen initiatives launch at an consider physical changes with the new for our customers. Our businesses are accelerated rate over recent months, and norm of distancing and capped maximum performing well, and the majority have the pandemic has also provided a whole capacity likely to continue. We may need not only recovered but are experiencing new perspective. to look at changes to the physical layout growth, proving quick service restaurants It’s never been clearer that customers of kitchens and floor design for dining to be a very robust sector for franchise want to interact with a brand at times and spaces and consider ways to further partners, even during times of ways that are convenient. Our drive-thru, minimise interpersonal contact and food uncertainty. n delivery and convenience models have handling. We also need to accommodate excelled during the crisis, as these options the multiple ways customers will interact have proven to be safe, convenient and with the brands going forward and ensure affordable for our customers. Contactless in-store, delivery and drive-thru offer payments, and a shift to delivery, using seamless ways our customers can access both our own service for Red Rooster and enjoy our food in a way that best and aggregator partners across all three suits them. brands have helped us to develop a position of what we call “convenience Change is here to stay leadership”. In Victoria, during the time of While many of the changes we have Benjamin & Benjamin Insurance Group ABN: 37 603 884 108 AR No: 1000626 extended lockdown, in one of our brands, implemented formed part of our original www.benjamin-ig.com.au We operate in each state more than 50 per cent of our sales were strategy for the coming years, several from delivery alone. have been fast-tracked and others are PSC Connect Pty Ltd ABN: 23 141 574 914 AFSL No 344648 We don’t see the hunger for new innovations brought about by the convenience slowing down at all. While adversity faced by the industry. Some

10 | thefranchisereview Crisis leadership through the uncertainty of COVID-19 Article provided by COVID-19 is unlike any health crisis Amid what was an ambiguous threat, Plan for the worst, General manager for Enterprise at the modern world has experienced. For the messages were explicit in instruction, hope for the best MYOB, Kim Clarke said: “While there’s MYOB many it means a bleak outlook and an but honest and compassionate in delivery. uncertainty around what the future will While the priority for most is keeping uncertain future. During a crisis like this, “I understand that all of this look like, we can be certain about one the books out of the red and people in the first thing employees look for is a rapid change creates anxiety and thing: the most essential element to The crisis leadership jobs, you must also think beyond the leader, someone who can offer stability uncertainty, especially when it means any business now and next is to ensure strategies to implement current emergency. What’s the plan for and reassurance, lighting the way through changing how we live. That’s why you stay connected to your people and when this all comes to an end? the uncertainty even if the destination is today I am going to set out for you, your people can stay connected to your right now in order to Chief executive and advisor, anything but certain. as clearly as possible, what you can enhance your business’s Michael Ilczynski, writes that, although business”. expect as we continue to fight the “The businesses we have seen flourish – Jacinda Ardern, Prime businesses of all types and sizes have future. 2020, the year of virus together.” have been able to harness their people Minister, New Zealand. had very little time to react strategically, crisis leadership and their business management software On top of her press-room clarity and scenario planning will go a long way to pivot at pace,” said Clarke. “During a crisis, your goal is to use of metaphor – as to when she asked towards survival. “A new bar has been set in terms reduce loss and keep things operating people to stay in their ‘bubbles’ – Ardern “Given the massive variation in what is expected for businesses and it is as normally as possible.” - Gene Klann, also added a feeling of transparency and potential outcomes, the only way for the responsibility of all business leaders author, Crisis Leadership. comradery with public question and answer leaders to navigate is to create and to ensure they are equipped for this new You should be both leading and sessions, streamed live on social media. Her debate multiple, detailed scenarios. managing, addressing the urgent needs openness and an at-home personality that You must create multiple scenarios and future. of the present, and allocating resources so closely matched the heavily scripted not necessarily “pick one” to follow, “Ensuring you have the right business for future planning. Decisions need to be daily briefings brought authenticity to all but rather manage as much as you can • Boost trust, transparency, and management software is critical for made fast and the pace is unrelenting. communications from her camp. for “all of them” until time passes, and authenticity. Use technology to convey business continuity.” So, is there a silver lining? Yes. As certain scenarios either become more messages through multiple channels – a many leaders are tested – and fail – those Forget traditional likely or fall away...” single email won’t be enough. Get up People will follow who successfully navigate the storm business hierarchy Similarly, Harvard Business Review to speed with new tools and platforms great leaders will come out the other side with fewer COVID-19 will mean you’re faced with suggests that sustained scenario practice and set clear protocols for their use to competitors, a stronger team culture and This crisis requires a different making big decisions about unfamiliar can make leaders more comfortable with support regular communication. Create a significant lead. strength of leadership. Focus on problems. It can be hard – or impossible ambiguity, helping them to prepare for engaging content to put where your The things you do now will have building a new level of trust within the – for a small executive team to respond futures that might happen, rather than workforce is – on social media platforms, lasting implications for your people and organisation. quickly and effectively. That might not be just for the future they would like to not just in their inboxes. This is especially your business. Here’s how to get it right. Be prepared for every possible as big an issue as you think. create. important for your younger workers, scenario. Use the expertise of your According to Forbes, many business who have never before experienced an Effective crisis workforce to discover new solutions and leaders wrongly believe that in times Use technology economic downturn of this magnitude. drive business forward, and leverage leadership strategies of crises it’s their decision-making that to your advantage • Change your hierarchy. Cross- technology to maintain connections and Build trust with honest, creates change. McKinsey & Company At a time when working from home functional teams need access to real- adds that it’s actually a network of and physical distancing are the new time data if they’re to make agile and productivity. authentic communication response teams that will ensure the norms, technology provides a much- informed decisions. Technology enables In these unprecedented times, a When communicating with your business keeps ticking over. A leader’s needed lifeline for businesses. It enables that. lot will be expected of leaders. There’s people during a crisis, paint an honest and role is to set clear goals and then model productivity and connectivity and will be • Increase efficiency. Create clear no way of knowing how long the accurate picture of reality and be as clear the behaviour that will achieve them. an important part of executing any crisis guidelines about what information is repercussions of COVID-19 will last, or as possible about what you need them to So, use your people. Set clear response leadership strategy. shared where, and how people can what the world will look like after we’ve do, while delivering hope and inspiration. priorities, create teams with expertise You can use tech to bring teams access it. beaten it. But if there’s one thing we Harvard Business Review suggests from different areas, and empower them together, spot issues, create solutions • Aid scenario planning. Use scenario know for sure, it’s that what your people that the success of New Zealand’s to create and implement solutions. Lead and innovations, and extend your planning to drive IT strategy, focusing need most right now is a great leader. four-level alert system can be put by example, encourage collaboration, and antennae of influence across the on the technologies and applications This article originally appeared here: down, in part, to how the system was share information that will help teams organisation. that will position the business to adapt https://www.myob.com/au/blog/crisis- communicated. make decisions faster. Leverage technology to: quickly to any scenario. leadership-under-covid-19 n

12 | thefranchisereview thefranchisereview | 13 Many business owners buy into a franchise for the support that What you Want to reduce the franchise model offers them: proven your business’ systems, processes can expect they can draw on, carbon footprint? and marketing and financial back-up. Now, from your You can, with the franchise model is being put to the test for Business Carbon Neutral. hundreds of thousands franchisor of franchisees as we enter into the largest to help you recession in a century.

By Mark McGinley CEO of CouriersPlease through the economic downturn

What’s Business Carbon Neutral? • We offset your business premises’ electricity use to make it carbon neutral by purchasing carbon offset units to balance out the emissions. • Available to EnergyAustralia electricity customers from $30 a month*. • Certified carbon neutral by the Australian Government’s Climate Active initiative. • You’ll get marketing collateral so you can proudly display and publicise your business’ participation.

When you make sustainability your business, you’ll not only help the environment, you’ll give your business an extra edge.

Learn more at energyaustralia.com.au/bcn Or call a business energy specialist on 1800 102 558

Put your energy in the right place.

*The amount payable to cover up to 12 months’ offsets will be confirmed on signing up, is payable upfront and will depend on your expected electricity use. $30 per month is applicable for an annual business electricity usage of up to 12MW and additional fees may apply for higher usage. thefranchisereview | 15 CouriersPlease (CP) is another example. The pandemic and subsequent shutdowns saw a proportion of franchisees experience a significant boom in delivery volumes, while others experienced a large decline. To help the network, we temporarily redrew our delivery territories, thereby diverting the latter to work in locations where volumes cannot be fulfilled by the former. We also onboarded new franchisees in high-demand areas. This helped franchisees who experienced a drop in deliveries in their location to maintain their incomes, while franchisees in higher-growth areas were able to meet delivery deadlines. We have also focused our efforts in supporting the volume growth by expanding our business, investing in more equipment to help our network, and partnering with third-party delivery partners to help franchisees with the overflow in activity. Over the last few months, CP has opened new depots in Sydney, Perth, Gold Coast, Brisbane, Melbourne and Newcastle. This has enabled our franchisees to expedite parcel pick up and distribution – and spend less time on the road – via a depot in closer proximity to them. Developing customer communications on franchisees’ behalf Strong and clear customer communication is essential during times of crises and uncertainty. Customers want to know if a business is operating as usual and whether they can expect any changes in services, products, opening hours or resources. For franchisors, consistency in service and communication across the network is essential. This is what franchise models are all about: essentially one interconnected brand across an entire network. For this reason, it makes sense that the franchisor be responsible Thousands of businesses have been tough, depending on the industry in and shutdowns, including a temporary for developing and distributing consistent and timely struggling since March, not just to keep which they operate and how severely hold on evictions and a mandatory code mass customer communication across said network, in the their employees safe and comply with they have been impacted. This could be of conduct for commercial tenancies. A form of SMS messages, emails, brochures and signage. In Government-mandated restrictions, but in the form of discounted fees, relaxed franchisor can go further by negotiating addition, franchisors are normally better resourced with to keep their businesses on a lifeline payment terms, or even the waiving of with commercial landlords to reduce administration staff – or external agency partners – who while they deal with markedly lower some fees for a fixed period of time. If the cost of rent during this challenging can manage such communication. revenues. A significant majority would be a franchisor has not offered this kind of time, as well as managing the contractual Franchisees cannot be expected to carry out all concerned about whether their business help, franchisees should ask for it. work. A franchisor normally has more activities and aspects of their business themselves. It is the will remain viable on the other side. administrative resources than its role of the franchisor to offer their network with the skills By drawing on the support of their Negotiating expenses on franchisees to carry out this type of work. and support to succeed, particularly during this economic franchisor and the franchise network, I behalf of their network downturn. believe franchisees have an advantage Franchisors are in a strong position Pivoting services and product over independent businesses in the to negotiate on behalf of a franchisee sales into in-demand areas Aspiring franchisees are best to buy into current market. Businesses operating for expenses such as capital purchases I recently spoke to a CEO of a printer businesses in recession-proof industries under an established brand also benefit and commercial leasing. The franchisor franchise about the necessity for small Business is hard. If demand for a product or service is from increased buying power and a lower has increased buying power due to their businesses in struggling industries to consistent in weak and strong economic environments, risk of failure. ability to lock in purchases on behalf of pivot their products or services into new the more likely the business delivering that product or However, not all franchises are the an entire network, the promise of repeat geographical areas, or new service or service will succeed consistently over the long term. As same, and many might discover the true business by that network, and its brand product areas, to help them maintain such, those looking to run a franchisee are best to choose value their franchisor offers them in the recognition. This puts them in a better their business income levels. He let an industry that is not only recession-proof, but continues current climate. In an economic crisis, position to negotiate purchases. me know about the fall in demand for to grow in an environment like the current one. businesses should expect more from their At CP, for instance, the boom in parcel printing services as a result of businesses Logistics is one such industry. As a result of the brand, with extended measures offered to delivery volumes during social restrictions stationing their employees at home. In eCommerce spike during nationwide shutdowns, CP’s fleet them. I have outlined four common areas has led to some of our franchisees response, he led his network into pivoting of more than 750 franchisees has continued to operate of support businesses should expect. requiring larger, or additional, vans to their services to COVID-19 signage, a new alongside the rest of the logistics industry as an essential enable them to meet their delivery demand area. He led the retraining effort Discounting or waiving fees service. Not surprisingly, we have seen a consistent 80 per deadlines while handling larger parcel of workers across the franchise network cent increase in delivery volumes over the last four months. Franchisees might pay fees such volumes. We have been able to draw on and the repurposing of facilities, to ensure As a result, we are recruiting more franchisees to as royalties – a percentage of the our collective buying power to get our franchisees had the skills, knowledge, and maintain our growth, and are keen to work with people franchisee’s gross revenue or a fixed franchisees better deals, to help them equipment to deliver the new product who share the same values: the desire to work as a team to periodic amount to operate under a maintain operational excellence. offering. The franchisor also led the create an exceptional customer experience and to provide franchise business – and marketing, Commercial leases are one of the marketing of the new service offering, a reliable and high-quality service. Our 30-plus year legacy advertising, ongoing training and support. largest expenses for a business. Earlier enabling franchisees to get on with the has created a proven franchise model. More than 20 per In the current market, good franchisors this year, the Government announced a work. The re-pivot was a success: by cent of our network has been with us for more than 10 would provide some financial breaks to range of measures to help commercial generating new work, all franchisees were years – a testament to our position as a leading franchise franchisees who are doing it particularly tenants affected by social restrictions able to retain their employees. business. n

16 | thefranchisereview thefranchisereview | 17 Learnings from the 2008 Global Financial Crisis

161 162 157 Set your Is your business ready Leaders 145

to emerge stronger, 123 more resilient and 121 121 120 Mid 50% 109

“ahead of the pack? 106 102 business up 100 What will you do 99 98 “ 66 63 62 differently to win in 57 Bottom 25% to thrive in the new normal? 71

Do you have a plan 2007 2008 2009 2010 2011 2012 2013 to reignite your “Preparing for the ‘new uncertain business? normal’ won’t be easy but Thriving in turbulent times business creates for its customers reimagining the possible followed by evaluating how your market Learnings from the Global Financial for your business can can leverage areas of competitive Crisis in 2008 show that businesses that create a competitive edge times advantage to efficiently allocate did not refresh their strategies or plan franchise sector - is accessing affordable thought of to propel you in front of the resources. that will sustain change By Susie Salmon for their recovery had 39% less EBITDA advice and support to design a refreshed competition. no matter how big. If you growth over the following five years Partner, Private Clients strategy that tackles those immediate COVID-19 has been the catalyst for than those who demonstrated agility, “Success will be determined need support to reshape Strategy & Consulting, PwC needs relating to cash flow management a significant societal shift in the way using the crisis as a time to assess the by resilience, speed & focus” your strategic business plan, stimulus and grant funding, followed we do business and communicate with direction of their business and refresh reach out to me to help you by longer term strategies to ensure the each other - whether it be our approach In today’s market agility & their approach. Speed of adaptation is now more businesses culture, customer experience to remote working or understanding navigate your options or for speed equals resilience. Refreshing your strategy is crucial in important than ever and embodies and operations are working together consumer consumption patterns- the the core characteristic of a resilient a complimentary strategy As the immediate crisis passes, adapting to new consumption trends, but effectively. This ‘whole- of- business’ impact of change may have a long-lasting business in uncertain times. Your discovery session with one businesses will need to adjust to be it’s easier said than done. The key to a strategy refresh approach will ultimately effect. strategy refresh needs to be both of our franchise strategy successful in the new normal. successful refresh, or conducting an initial create a clear pathway to set the business This impact was substantiated by practical and impactful, and tracked for As the dust starts to settle from strategic plan, is to think methodically specialists. You are not up to thrive. PwC Australia and Swinburne University’s success. As with all change, continuous the economic shocks of COVID-19 and and use a process to help frame the right alone; we are here to help.” recent consumer behaviour research, improvement must be applied and stimulus is wound back, businesses will questions that you need to solve. Staying up to date with shifts where consumer spending habits, pre, measured to maximise the impact of operate in a changed landscape, one in A good strategic planning process Susie Salmon in consumer demand during and post COVID-19 were analysed. your strategic initiatives and efforts. which the old rules may no longer apply. starts with analysing what value your Partner, Private Clients To be resilient in uncertain times, it is The good news is that we found that Adapting to the ‘new normal’ at speed is Strategy & Consulting, PwC crucial that your franchise stays relevant consumer spending is not universally not only a matter of survival, but also the e [email protected] by keeping up with new demands down - well targeted products and PwC’s Fit for Recovery strategy refresh model provides key to outperforming competitors and and shifts in your customer behaviour. services that add value are being bought this practical framework to reshape how you can serve new t +61 499 016 116 being on the front foot of opportunities Understanding how your customers’ at scale, meaning that businesses that customer demands and think about what’s your next big move. that a disrupted marketplace presents. needs have changed allows you to move quickly have a significant head start A challenge for most small to medium rethink your products or services and on businesses that don’t refresh their businesses - and particularly those in the create something that no-one else has thinking or operate aimlessly in the dark. Other key short term indicators People who will spend the same or more during COVID-19 from our research show a number of emerging consumer behaviour trends: a demand for greater digital access and 83% 80% engagement with goods and services, perception of cleanliness, and a desire to help local businesses were among the 60% 60% 61% areas which may persist over time. The 57% 54% key to thriving long term is not only to 50% 46% be aware of these trends, but to analyse the ‘why’ behind them, and then to

Original level of spend of Original level 33% pivot one’s strategy to meet the future demand relevant to your business. 20% Only 20% of people You and your will spend the same franchisees need or more on restaurants to focus on your strengths to deliver Services against these trends Grocery Products Services Furniture Takeaway Products and communicate Restaurant Gardening

Gym & Fitness Care Services these successes to Home Cleaning Health Services Personal Care / Home Cleaning Beauty/Personal Beauty Products your customer base.

Home Improvements/ 18 | thefranchisereview thefranchisereview | 19 So how do we bring the strategy refresh to life for the franchise industry? Whether you are building your business for the future or optimising for a sale, preparing A whole-of-network strategy where everyone benefits - It’s a win win! for the next normal won’t be easy. We are here to support you emerge stronger and more resilient with tailored strategic advice, planning and focused execution. Having worked with more than 200 How does Thrive work? Thrive for Franchisors - franchises across Australia, we have a Our Thrive Strategy Refresh Program strategic planning for value deep understanding of the challenges looks at helping both the franchisor creation and opportunities facing the industry. and franchisee develop a consistent These insights have helped us design The Thrive Strategy Refresh program approach to strategy planning and Thrive, a whole-of-network strategy starts with a complimentary discovery execution - working in tandem at refresh program designed to help both session where we get to the heart of both Head Office and with individual franchisors and their network reset their the franchisor’s vision, goals, issues franchisees. This integrated consulting strategic vision, reimagine the possible and opportunities. This component approach ensures that all parties reach to create a competitive edge that will incorporates a business diagnostic and their full potential to make a lasting sustain change no matter how big. facilitated strategic planning workshops, impact well into the future. culminating in the delivery of a value creation plan. In addition, we also provide on-going leadership advisory support to Key areas to address as part of your strategy refresh help implement the strategy plan. Radically transform your cost Review cost of sale models and clearly Thrive for franchisees - structure differentiate between ‘nice to have’ vs core/ strategically aligned costs consulting and education at scale Understand cash flow through quick and efficient forecasting, analyse for deferrals and Being a member of a franchise quick wins for both franchisor and franchisees network has many advantages, including access to a large pool of motivated Perform a support scan at the state and federal level - identify what support is available to contributors and a built-in engagement franchisors and franchisees. Educate your model which integrates into the success network on how to access and provide of the broader network. However, assistance if necessary franchisors must also lead the way and Identify cash flow risks and engage with banks take their franchisees on the refresh and financiers early journey - bringing together diverse This top down and bottom up approach provides the opportunity to share priorities, strengths and weaknesses for Review resourcing in light of new strategy learnings across the network, builds trust and allows franchisees to learn from one common goal - sustainable success! each other - leveraging a core strength of the franchise model. Understand value adding vs bloat costs in your Thrive for franchisees combines business consulting and education for owners to Build strategic capabilities Build out business capabilities in line with core help solve their most common issues: from strengths in the post COVID world financial literacy, cash flow and business Grow and nurture strategic partnership planning to helping implement the right relationships - integrate at the franchisor HQ professional advice at the right time, this and franchisee level to help drive sales approach is scalable and delivers notable Build your workforce of the future - understand impacts such as improvement of franchisee the talent in your network and assist with financial management, proactive cash flow redeployments within the network to ensure scenario planning, actionable business capabilities are not lost plans, access to government stimulus & tax Accelerate training and skills development planning & effective implementation of key across the network network growth strategies. A key component of the program is Review physical footprint and find ways to education to the network via webinars digitise your customer experience and leadership lab sessions. These Re-imagine your operating Put digital transformation up front and center sessions aim to improve business acumen model and fast track any digital projects to reflect across common KPI gaps such as changing customer behaviours pricing models, community engagement Have a business continuity plan in place for strategies or strategic partnerships. future waves and educate franchisees prior to The beauty of this scaled education implementation approach is that these common KPI’s can Develop an operating model that is cost be tracked via data analytics and pulse effective and targeted at strategic initiatives checks. These insights help the franchisor identify where they need to boost Activate culture led change Reconnect with your core values as a network support to their network. Inspire all stakeholders in the network to walk Whilst going through this period of with you on the journey - identify how to uncertainty, it’s never been more important incentivise and motivate Disclaimer for franchises to plan effectively and act This article provides general taxation information and is not intended to constitute tax, legal, financial services or planning advice and should not be relied upon by you without Embrace change and articulate successes to quickly. By accepting that consumer the network consulting a professional advisor based on your individual circumstances. This article is based on information and circumstance known at the date of publication. To the extent behaviour is changing permanently, we circumstances have changed, the article may no longer be relevant or correct. The information in this article is not and was not intended or written by PwC to be used, and it Practice flexible working and leverage digital have to be agile in our response to the cannot be used, for the purpose of avoiding penalties that may be imposed on you by the Australian Tax Office. PwC accepts no duty of care to you or any third parties and will capabilities to align with consumer trends and not be responsible for any loss suffered by you or any third party in connection with or reliance upon the information in the article. PwC refers to the Australia member firm, and current environment so that not only can may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details. build resilience into the business model for we survive COVID 19 but emerge stronger PwC’s liability is limited by a scheme approved under Professional Standards legislation. future shocks and ready to thrive. n ©2020 PricewaterhouseCoopers. All rights reserved.

20 | thefranchisereview thefranchisereview | 21 Australian Employment Communication Laws are Complex is the key Discovering your franchisees failed to meet their employment compliance obligations could be a financial disaster for you. to success By Warren Ballantyne Managing Director & Founder, Gutter-Vac Franchisors can be held what their obligations are responsible for the wrong- and how to meet them. Let We have all had quite a doing of their franchisees. The us guide you towards journey through COVID Vulnerable Worker Laws meeting your reasonable this year and after 20 were introduced in steps requirements and give years as a franchisor, September 2017 and it still your franchisees access to is challenging for franchisors tools they need to make the I wasn’t quite sure to understand right decisions. how we, Gutter-Vac, would go through this world pandemic and what it would do Protect your brand, make the right decision for your business to our business, and www.erstrategies.com.au more importantly, the businesses and lives of our franchisees.

Something I’ve always prided myself on is just being honest and getting to the point. When the pandemic hit, I knew we would need to use this to get through as a business family. I needed to take the role of captain and bring some calm to a Confidential Telephone advisory Unlimited crazy situation. employee service for consulting for The first thing we did was open up helpline franchisees franchisors the communication channels. The key to communication is knowing how best to communicate to your franchisees. We have learnt two things when communicating with our franchisees were more than happy to jump on a sometimes a couple of times a day. The over the years. The first is that is no one video conference call to work through all beauty of this type of communication reads emails and secondly, to get an the “what if” scenarios so that we could was that firstly the franchisees actually important message across, it needs to be as prepared as possible. This was an consumed the information (didn’t ignore come from their peers. This meant that invaluable meeting because it meant that reading a long email) but it also meant Employment Payroll audits for 5 % Annual reporting when the pandemic hit, we already knew the franchisees knew we were working that I could speak to them directly. They compliance training of your network pa and how to get the information out to our collaboratively with them and that we could hear it from my mouth and could for franchisees (3 outlets minimum) FRANdata report franchisees so that we could help them wanted their in the field knowledge to pick up all the visual cues and tonality navigate their way through this situation. make better decisions as new regulations that you just don’t get in an email. We I’m so glad that we had set up a and restrictions were brought in. got such great feedback and it also really strong Franchisee Advisory The second thing we did was we enabled me to keep them calm and Council years ago (ours is called the started to communicate via short video focussed when they could have easily GAC) and if you don’t have one, then updates. We have a closed Facebook started to panic (along with the rest of do it because this was the first point group for franchisees to ‘talk shop’ and the world). of call of communication. We held an this was the perfect place for us to I have to say, we have made it ‘emergency’ advisory council meeting on publish short videos. In those first couple through COVID to date considerably erstrategies.com.au the Saturday. All of our GAC members of weeks, we were doing this daily and well, especially as we can work without Audits | Telephone Advisory Service | Employee Helplines | Employment Compliance Training | Franchise Employment Compliance Solutions thefranchisereview | 23 “If you are given lemons, turn it into lemonade. We have discovered that even all over Australia, you can learn, have a laugh and celebrate together – even through a video conference call.”

Conference @ Home, covering a range of topics with a one-hour session each week. We have had guest presenters, our team here at head office and of course franchisees presenting and to say it has gone well is an understatement. It may not be conference in Fiji, but the everyone loves a laugh, especially in I certainly hope that during this time franchisees are loving it just the same tough times. you have been able to manage the and really participating. • Use peer to peer communication forever changing landscape of business So what are the keys we have found (such as your advisory council) as and I know that compared to other over this time: this will smooth a path during difficult brands, we have had relatively only a • Increase communication with situations. The franchisees want to have minor bumpy road, but I think this is also franchisees. You can’t keep them up to input, so let them be heard. because we took action BEFORE a crisis date too often, keep them in the loop so • If you are given lemons, turn it into happened, had good communication Gutter-Vac’s Annual Conference they are not left wondering. lemonade. We have discovered that even already in place AND we knew our looked very different this year (right) • Communicate in a style they will all over Australia, you can learn, have franchisees – who they are, what they compared to past events (above) actually consume. a laugh and celebrate together – even would need and how we could help • Add some fun and humour – through a video conference call. them best. n contact so we have been seeing record sales coming through. We worked really hard to keep this message to our customers via social media, via email and through our day to day interactions. Franchisees were also really good at communicating this with their customers and also providing assistance to our more elderly customers that needed extra help… all without contact. The next issue we faced wasn’t just day to day, it was our annual conference. For our franchisees, this is the highlight of the year, the time they get to come together and reconnect. Many of our loans Powered by franchisees are simply working on their own or with a single staff member so the conference is where they get to be with cancel our early May conference and my Bula best and for the winners, we a group of friends and talk business. the devastation hit our franchisees hard gave them a quick Zoom call before The conference isn’t just about and fast. They were so disappointed releasing the awards ceremony video so business though, it is about community. - not that they couldn’t go to Fiji, but that we could record their reaction to We knew the pandemic would bring more that they wouldn’t be able to get winning the award and share this with a real need for community and this together. all the franchisees. We had the majority concerned us because we knew not We knew we had to do something, so of the group sit down at 5pm on a having this time to get together could we put our heads together and decided Thursday night to celebrate and watch potentially really impact our franchisees to run the conference online. That is how the ceremony so in the end, it was an – without their favourite annual highlight, our Conference 2020 @ Home was born. extremely fun night with a lot of laughter something they talk about all year long. Our first session was our awards and it immediately brought everyone’s This year we were to have our first ceremony… you can even find it on spirits back up. We could still be a team international conference in Fiji and my Linked In profile somewhere. We that worked together, even though we everyone was so looking forward to it. recorded me presenting awards to were all separated by distance. But, COVID hit. No flying in or out of the franchisees – well a cardboard We have since been doing a session Australia so we had no choice but to cut out of their face. I was dressed in at 4pm every Thursday afternoon for

24 | thefranchisereview thefranchisereview | 25 “The technology you use fundamentally doesn’t have to do anything massively different — the information was always there; it can just be used more effectively in ‘the new normal’.” Making the new normal work for you By Jodie English and your National Sales Manager, MizziSoft workforce A modern workforce Leveraging existing Contactless and Changing the way you work solution, driven by solutions temperature testing in The next step for companies is Businesses have long been the “new normal” what has to be done differently when technology, is more leveraging technology to manage Businesses that are able to remain employees are at work. critical than ever for everything from payroll to rostering operational during the pandemic are now It’s easy to take some aspects of a organisations dealing and leave management. faced with the challenge of determining workforce management solution for The key questions to ask now are: what they can do to minimise the risk of granted — unless you don’t have one. with a reduced what were the solutions there before, spreading the virus whilst still being able For example, the ability to stagger shifts workforce or a more and how can they be leveraged even to provide products and services to their and break times to minimise crowding in more effectively in post-COVID? We clients and communities. high traffic areas, incorporate flexibility to fragmented availability have a lot of these conversations now. Contactless options are now a big allow for increased cleaning of common in their workforce due to What’s changed in a very short period focus — the ability to clock in and clock areas and disinfection of equipment of time, is what everybody is referring out on mobile devices so there’s no ensuring enough time between shifts for the COVID-19 pandemic. to as “the new normal”. physical contact with data collection putting on and taking off PPE. The new complexities How do we start using workforce terminals, for example, or incorporating The new capability leverages data, management solution technology facial recognition capabilities. so if somebody comes down with of operating amidst the for those priorities that didn’t exist a Temperature taking technology can also symptoms organisations will have a lot of various, and changeable, couple of months ago? have a positive impact on controlling risk information about that employee — when If a modern workforce and joins the list of current priorities, from they were rostered, where they clocked levels of restrictions management solution was already in an access standpoint. in and out and which specific area they that characterise the place for pre-COVID needs, the good As they come to work, a lot of worked. It’s relatively easy to do if you COVID-19 business news is a lot of that existing system our customers have additional safety have a system already in place. can be adapted to address what the protocols even from a premise access The technology you use fundamentally environment now sees post-COVID needs are, a good solution standpoint, regarding temperature doesn’t have to do anything massively technology playing a that’s customisable — business rules testing technology, some with facial different — the information was always and laws that are changeable or recognition and data tracing or as simple there; it can just be used more effectively key role in assisting the agreements can get updated so that as an infrared temperature check that in “the new normal.” n return of employees to customers are self-sufficient. dispenses sanitiser at the same time. For example, if a company has an There are a number of points to work and helping them MizziSoft has strived to be a automated workforce management consider when undertaking temperature workforce management software stay there. system chances are employee testing in the workplace, including innovator with rostering, award information is stored in it if they are supporting workers who may be interpretation, automated time being rostered. Companies can easily struggling through these times to stay and attendance flexible working reach out to employees through at home if unwell; ensuring managers arrangements, and in the COVID-19 Employee Self Service and provide and staff understand why you require operating environment, temperature a wellness questionnaire to ensure temperature testing in your workplace; testing and contactless solutions. they are able to work before they and having set processes in place Find more information about even leave their house to head to the should an employee or colleague have a MizziSoft at www.mizzisoft.com.au workplace. temperature.

26 | thefranchisereview thefranchisereview | 27 SPONSORED ARTICLE

$2,000,000 Relief Fund Building to help franchisors business support franchisees resilience There has never been a tougher time for complete a mobile sign-off; including a • 25% lifetime discounted monthly licence Australian franchise businesses than what verification quiz to ensure understanding fees they are facing right now. and compliance. This provides franchisors with anywhere Franchisors’ are stretched by the twin In many cases, Op Central’s trackable from $4,000 to $80,000 in fee waivers at InXpress problems of reduced revenues and policy sign-off data has made the and concessions; but more importantly it an immediate need to support their difference between businesses being able offers an opportunity to reach a new level InXpress in Australia and globally have been fortunate franchisees through COVID-19. to safely re-open or not. in operational excellence and franchisee to navigate successfully through the challenging Australian-owned software company, support. Op Central, specialises in providing $2,000,000 Franchise For more information, eligibility criteria environment that the COVID-19 pandemic has cloud-based systems to help franchisors System Relief Fund and to apply visit: https://opcentral.com. presented for franchising and the wider business provide support and resources to their Op Central, with support from its au/franchise franchisees. Op Central gives franchisors investors, have announced a $2,000,000 community. the tools to improve compliance, internal relief fund for franchise groups that have communication, HR practices and been impacted by COVID. About Op Central During these unprecedented times, our The focus on phone selling techniques, By Marcel Lal CFE relationships with their franchisees. Op Central is an Australian owned B2B franchise model within the freight understanding the current and future “A spike in Op Central’s usage industry has shown resilience and growth, requirements of business customers CEO Asia Pacific, Op Central is used by franchise software company, with cloud based but with that came a refocus on our go- outside of our traditional face to face sales businesses – and other multisite groups – in the franchising community products used by 56,000+ users in InXpress to-market strategy. Reviewing, planning methods and a greater focus on the use of across all industries. Currently the systems has coincided with a reduction 8,900+ businesses of all sizes, across and monitoring the market on an almost online and social media channels to reach support 56,000+ users across 8,900+ in that sector’s revenues due 37 countries. daily basis became normal practice to out to customers were all key elements businesses in 37 countries. Their product suite includes; to forced closures. We feel a ensure we remained agile in an ever- in the regular weekly training undertaken Learning Management System, moral obligation to help these changing market. online. COVID-19 Usage Online Operations Manual, businesses right now when they Personalised customer service from a With this has come a greater level Since March 2020, usage of Op Central People and Culture, Site Auditing, need us the most.” local franchise representative has always of appreciation for the challenges our has surged by 718% in the franchising Digital Contracts and Franchisee been at the core of the InXpress model, business customers have been facing, sector. This is a result of franchisors Relationship Management along with Op Central, Managing Director, Josh Cairns which is essentially about SMEs looking how InXpress can assist them to be more supporting their franchisees’ efforts to integration capabilities with all of the The relief efforts began in April 2020, after SMEs. That hasn’t changed during efficient and save money with their freight operate their businesses safely and in most popular enterprise platforms. when $200,000 was allocated to support COVID-19, but we have worked hard to requirements, and for our franchisees line with their respective state based Many of Australia’s best businesses Op Central’s existing clients and this ensure the service our franchisees deliver to continue to be a source of advice restrictions. use Op Central, including; The additional $1,800,000 fund extends is meeting changing customer needs. and support through different means of Cheesecake Shop, Baby Bunting, Franchisors have been using Op Central support to all franchisors across Australia. Our business moved fast to implement communication. It also highlighted that the to distribute their COVID-safe operating Bounce Inc., The Cotton On Group, a three-month global training program experience and knowledge from InXpress procedures and resources, to provide HR The relief fund provides free access to Op KX Pilates, Snap Printing, Bedshed, targeting not only more detailed sales franchisees is a valuable asset in itself for support and to conduct staff check-in Central’s software for affected franchise Barry Plant Real Estate, Spudbar, techniques, but importantly customer SMEs at any time, but especially during surveys. groups as follows: Haymes Paint and Amcal Pharmacies. service and general business training to challenging times such as these. Op Central automatically notifies • $0 setup, onboarding and data More information can be found at: ensure that our franchisees were able One of the main requirements for being franchisees and staff of each relevant migration fees https://opcentral.com.au to navigate through the initial and post an InXpress franchisee is around targeted policy update, requiring them to • $0 monthly licence fees until March 2021 COVID-19 business environment. activity in their business. There is a balance

28 | thefranchisereview thefranchisereview | 29 “We all feel incredibly Eugene Rusel – InXpress Collins Street privileged and grateful to be in this position and to continue to provide opportunities for our staff, franchisees and customers in the future.”

between new business development and Internally, there have been more continue to provide opportunities for providing exceptional support to existing regular types of engagement within our staff, franchisees and customers in customers. country, regionally and globally for the future. The support of carriers has COVID-19 created a great deal of all management and staff to ensure also highlighted that maintaining and uncertainty not only for franchisees but franchisees (and their customers) are harnessing business partnerships is critical also for the business customers whom supported and we continue to capitalise at any stage but particularly during a they manage. The importance of ongoing on opportunities whilst being mindful and challenging time as 2020 has been. communication was highlighted during respectful of the challenges businesses InXpress is a proud supporter of this period because customers were are facing. There have been a number of franchising in Australia and feel that the themselves in a situation where many learnings and the importance of ongoing COVID-19 pandemic has only reaffirmed aspects of their business were either evaluation and self-reflection for all has that being a part of a reliable franchising unknown or at risk. been magnified during this year. We hope system remains a strong proposition For InXpress, there remained an ability to take that experience into our planning for anyone looking to start their own to distinguish between just selling to a for the future. business, regardless of the business new or existing business customer and InXpress Australia and the wider Asia climate or market. n understanding their requirements and Pacific region experienced strong revenue circumstances to be able to support them growth this year when compared to last Business growth in a now or in the future. year and this has been largely due to the pandemic The additional training implemented company culture and work ethic at all and increased level of communication levels along with strong franchise network There is no one size fits all approach to between InXpress Corporate and the engagement making customer contact a business success during COVID 19, but franchise network (via publications, calls, top priority. Instead of stepping back from at InXpress, we’ve focussed on: webinars etc) meant that we were able to engaging with business customers, our • Managing uncertainty. Reviewing, stay nimble, engaged and up to date with franchisees have increased their level of planning and monitoring the ever- what was happening around us. This in support and feedback suggests that this changing market, and remaining Rest is a super fund that turn resulted in a greater understanding of has been appreciated and valued by those agile in our response to market our business customers, what they were customers. needs. going through and how InXpress could We all feel incredibly privileged and • Developing business resilience. help them. grateful to be in this position and to understands franchises. Providing franchisees with targeted training so they have the information and skills to navigate the new Bhavin Shah – As one of Australia’s leading funds we operating environment InXpress Wanneroo have the insight and experience, earned Our commitment to helping our members • Prioritising our customers. Undertaking meaningful over many years, to help business owners communication with existing navigate the complexities of super. and new customers to ensure we We keep super simple, so that you can focus Profit to Stress free Long-term understand their circumstances Low fees on the things that are important today. members admin performance and challenges so that InXpress franchisees can provide assistance The world is always changing, but our commitment and support to help them through to you never will. these times. • Finding opportunities. Strong engagement across the entire franchise network with a view to Learn more at incorporating learnings from these go.rest.com.au/commitment-to-members processes and experiences into future business planning. Product issued by Retail Employees Superannuation Pty Limited. Consider if it is appropriate for you and read the PDS available at rest.com.au/pds before deciding to join or stay.

30 | thefranchisereview thefranchisereview | 31

rest23460 FCA advert 210mm x 297mm f.indd 1 17/08/20 2:13 PM Consider the potential cyber risks that occur every day in the operation of your business

Reasons business Business result owners think they’re ok of a cyber attack

“We have a great IT How can one person know how to fix the 100,000s of cyber manager.” threats? What happens to your business if you’re offline for a week or a month?

“We use a great IT In a large-scale attack like Wannacry, what happens company for security.” when your great IT company is trying to handle multiple companies’ cyber problems and they can’t get to you immediately? What happens to your business if you’re offline for a week or a month?

notify affected individuals and the “We’re in the cloud.” What happens if your cloud supplier is offline for a week or office of the Australian Information longer because they’ve been hacked? What happens to your Commissioner when a data breach business if you’re offline for a week or a month? Demystifying involving personal information is likely to result in serious harm. “We outsource our What happens to your business if your website is offline for Under the Notifiable Data Breaches website hosting.” a week or a month because the hosting company has been (NDB) scheme, which came into hacked? effect in February 2019, there is a cyber risks “We trust our The people trusted are the people who are given access to By Paul Benjamin mandatory reporting and notification Benjamin & Benjamin process for eligible data breaches employees.” finances. Online banking has led businesses to reduce the under the Privacy Act for all Australian double checks and balances which has led to huge employee Insurance Group Government agencies; businesses and theft. Many businesses (big & small) have been bankrupted, for business e.g. 2015 Clive Peters $24 million theft by the CFO. not-for profit organisations that have

an annual turnover of more than AU$3 It’s been more than 50 and internet connected devices now While franchises are among those “Our suppliers are safe What happens if their computer system was hacked and million; private sector health service sees billions of devices globally collecting who have been quick to pivot their to deal with.” you couldn’t order, couldn’t get supply, etc for a month or years since the first providers; credit reporting bodies; credit real-time data across what is known as the offerings online during COVID-19, doing longer? workable prototype of Internet of Things (IoT). so does not come without exposure to providers, entities that trade in personal In today’s internet connected world, risk and vulnerabilities that in the rush information and tax file number (TFN) the internet was created data is currency and data is valuable. This to grasp the online lifeline, they may not recipients. Cyber liability insurance can take following cyber theft with funding from leaves the door wide open for privacy have fully considered. The NDB scheme also requires that the financial and logistical stress out • Reward expenses and security dangers and single point But with the 2020 Cyberthreat an organisation or agency must notify of cybercrime. If you do not have • Telecommunications fraud the United States of vulnerability of single or multiple systems - Defence Report predicting cybercrime individuals they think that may be cyber liability insurance you do not • Pay on behalf for incident response America’s Department of so businesses, governments and individuals damages will cost globally up to $6 affected by the data breach. Penalties of have around the clock protection, 365 expenses Defence. are all vulnerable to cybercrime, especially trillion annually by 2021, there is no up to $340,000 for each director and up days a year for financial loss caused by • Flexible incident response providers in the areas of privacy and security. better time than now to take stock to $1.7 million for the company apply for cybercrime. • Rogue employee failing to (i) report and (ii) remediate in Less than a decade later, the first Cybersecurity is not just a technical of your business’ cyber security and Cyber liability insurance is like having • Voluntary notification line with the NDB. unsolicited commercial email message issue, but a business issue as a cyber- consider the consequences of a cyber a SWAT team, on your command they • Voluntary shutdown was sent out to 600 users, and in 1988 the attack could potentially lead to a brand attack for your business. swoop in to protect your business from: • By endorsement: reputational harm and reputational issue with effects on the It is critical that all businesses How you can you protect • Business interruption/financial loss, extension, first major malicious internet-based attack your business against caused major interruptions across the bottom line. understand and protect against their including suppliers, due to a network • Social engineering fraud Internet. The threats are the same regardless of potential cyber security weaknesses, and financial loss from security failure or attack, human • Cyber terrorism And that was before the first web size, industry and type of organisation – no there are myriad examples of those who cybercrime errors, or programming errors. Key points to look for from a page was even created (1991) and the one is immune! have failed to mitigate against them and The Australian Government’s • Data loss and restoration including provider when considering cyber liability 1995 development of SSL (Secure Sockets While high profile security breaches fallen victim in the past. business.gov.au website provides decontamination and recovery insurance include: Layer) encryption to make it safer to including LinkedIn, The Australian Red practical tips for businesses on how • Incident response and investigation • Worldwide coverage conduct financial transactions online, Cross, and the Denial of Service Attacks Legal obligations under the to protect against cyber threats, costs, supported by a 24/7 • Dedicated global cyber practice that bringing with it the commercialisation of on the Australian Bureau of Statistics on Notifiable Data Breaches including: backing up data, securing multilingual incident reporting hotline offers combination of global reach the internet. Census Day in 2016, have made headlines, scheme your devices and network, encrypting and on-demand vendors and local cyber expertise This commercialisation fuelled cyber attacks are by no means limited to Businesses should also note their legal important information, using two-factor • Delay, disruption, and acceleration • Supported by extensive pre-loss and e-commerce, and in the 21st century large organisations and governments. obligations in regard to reporting data authentication, managing passwords, costs from a business interruption incident response services delivering products and services online In fact, the Australian Government breaches. monitoring use of computer equipment event As companies become ever has moved from a nice to have to a need estimates that of almost 700,000 A data breach happens when personal and systems; putting policies in place • Crisis communications and more interconnected and reliant to have for businesses – with the current businesses that have experienced a breach information is accessed or disclosed to guide your staff, training staff to reputational mitigation expenses on technology, the likelihood of COVID-19 pandemic only increasing this in cybersecurity 60% of these attacks without authorisation or is lost. This can be safe online; protecting customers’ • Liability arising from failure to cybercrime increases. Any good cyber reliance. were targeted at small to medium size occur if personal information is hacked, information; protecting yourself through maintain confidentiality of data risk mitigation strategy should include Businesses today communicate businesses with the average cost of a but also where a smart, phone, laptop insurance; and getting updates on the • Liability arising from unauthorised use seeking appropriate insurance protection through the web internally to their cybercrime attack costing more than or USB that holds customer or supplier latest risks. of your network that covers first party losses as well as employees, and externally to their $275,000. information is stolen or lost, or if some’s Apart from investing in cyber security, • Network or data extortion / blackmail third party losses, and other potential customers, prospects, suppliers and the And according to the Australian Cyber personal information is sent to the wrong current hardware and software and great (where insurable) losses to their specific business through general public. There is no touchpoint that Security Centre, cyber security incidents person. IT advice, cyber liability insurance needs • Online media liability an insurance broker that both really cannot be, or is not undertaken, online cost Australian businesses an estimated If the Privacy Act 1988 (Cth) covers to be a key part of any organisation’s • Regulatory investigations expenses understands their business and really Alongside this, the rise of smartphones $29 billion every year. your organisation or agency, you must mitigation strategy. • Cybercrime – direct financial loss understands cyber liability insurance. n

32 | thefranchisereview thefranchisereview | 33 Employment compliance Safety Laws Employment Compliance Framework has been a particular Work Health and Safety laws also “Having a hold officers and businesses accountable, Plan structured plan to Peace of area of focus for all with substantial fines of up to $3 million Act resolve identified employers in recent for corporations and $600,000 for Review To meet your individuals and potentially five years in performance Employment issues in a years - and for jail. These penalties, together with jail Compliance goals Take action based on systematic way will mind from franchising in particular sentences under industrial manslaughter Where are you now, also help reduce laws in Queensland, ACT, NT and Victoria, learnings, reports - with only something where do you need your exposure to are becoming a real and present threat, to be? of the scale of the with a $3 million fine and suspended jail higher penalties, getting sentences recently imposed on a small whilst you are COVID-19 pandemic able business and its directors in Queensland. acting to fix them.” to overshadow some In the case of franchising, the model Check Execute Work Health and Safety Act provisions new accountabilities, Identify risks your brand’s applicable in almost all states and Measure including criminal territories imposes a duty on ‘Persons performance Organise to sanctions for so-called Conducting a Business or Undertaking’ Investigate deliver plans (PCBU) to ensure the health and safety causes Implement plans employment wage theft and industrial of workers and other people coming into manslaughter. contact with their business, “so far as is reasonably practicable”. Most franchisors will be a PCBU and this duty cannot be to include disclosures by whistleblowers Our experience is that no two Payroll Failures compliance delegated to franchisees or contractors, about the existence of an ‘improper compliance programs are going to be One of the top-of-mind issues over so they must ensure appropriate risk state of affairs’, which might encompass exactly the same – but the process we the past 18 months has been business management systems are in place. breaches of a company’s internal policies, follow should be. And the lesson we payroll and HR system failures causing for example. have learned is that the process needs to right multi-million dollar wage back-payment Discrimination, Bullying and REPEAT, REPEAT, REPEAT! claims and exposing the business to Harassment Our ‘Employment potentially huge fines. Discrimination, bullying and Compliance Framework’ Summary If it can happen to Woolworths ($390 harassment damages are now stretching With more and more federal, state and The above analysis hopefully has million plus) and Coles (class action into millions of dollars – recently in territory laws making individuals, officers convinced you that every organisation claiming up to $200 million) with their Queensland damages of $1.5 million were and directors personally liable for a range has a lot to do, but with the ongoing well-resourced HR Departments and awarded against a State Government of different criminal offences, including focus on employment compliance Payroll offices, then business health service where it was found to ‘wage theft’ and industrial manslaughter, by regulators, all franchisors, senior leaders are now worried it be responsible for the actions of its what steps can franchisors, directors managers and board members must can happen to any business! CEO whose “managerial mistreatment” and senior managers take to ensure they focus on getting its compliance program Many businesses, included repeated blaming, humiliation, don’t inadvertently fall foul of these major fit for purpose. franchising included, belittling, isolation and undermining of a new responsibilities, whilst also having to Having a structured plan to resolve now rely on outsourced senior employee. continue to manage the existing ones? identified issues in a systematic way will payroll systems to ensure Rather than just responding to random also help reduce your exposure to higher compliance, but often the New Whistleblower Laws requests to help our clients meet bits and penalties, whilst you are acting to fix people given the task of Newly introduced Whistleblower pieces of these obligations, we thought them. n managing those systems appear legislation, which now applies to virtually it important to develop what we have to have been ‘asleep at the wheel’, all businesses, provides maximum named our ‘Employment Compliance or at best unaware of areas of non- About ER Strategies damages of up to $525 million for Framework’ (or ‘ECF’ for short), to help compliance with our complex system a corporation and a massive $1.05 franchisors, directors and managers ER Strategies has been working of industrial awards and agreements. million fine for an individual, as well as systematically work through their with franchise clients for all our 21 Board members are focusing criminal sanctions including jail time for employment compliance and related years of existence. Our all-inclusive on this now due to the associated mistreatment of those who blow the responsibilities. The framework is a series WorkShield Franchise service is reputational damage if their whistle on corporate wrongdoings. of checks and processes we use to designed to provide our franchise organisation does not meet The new laws also provide stern ensure our client is achieving its particular clients with a total employment its employment compliance penalties for breaching confidentiality compliance goals. compliance solution. obligations, not to mention surrounding the identity of This needs to be an ongoing Clients can also add-on our the unfunded liability hurting whistleblowers, leading to a surge in responsibility, not a ‘once-off, set and secure Whistleblower service, to their business’ share price specialist businesses offering confidential forget’ activity. confidentially receive whistleblower or the threat of huge fines. whistleblower hotlines. Whistleblowers Our framework uses the simple, 4-step phone calls and even anonymous Franchisors should already are not limited to being employees either ‘P-D-C-A’ model for implementing change disclosures via our encrypted, secure be aware of the need to – they can be contractors, suppliers or made famous by the father of Total webform. take reasonable steps to even family members of these categories Quality Management, Edwards Deming. Call us on 1300 55 66 37 if you would ensure they don’t become of people. The 4-step acronym stands for Plan, like to explore how our Employment liable for franchisee non- What is also new is the expansion of Do, Check, Act (although we prefer to Compliance Framework, WorkShield compliance with our these laws to go beyond just breaches replace the ‘Do’ step with the alternative service package, or any other service employment laws. of federal laws and other misconduct, ‘Execute’). element, can work for your brand.

34 | thefranchisereview thefranchisereview | 35 SPONSORED ARTICLE

Looking to reduce As individuals and businesses, COVID-19 has your business’ impacted us all differently. We have all learnt a lot during this time, and I am amazed at energy costs? both the adaptability we all have shown in the franchise sector and the opportunities that being focused can create.

An Energy Efficiency Assessment How it works. from EnergyAustralia could help. 1. Our Australia-based business energy specialists will do a price comparison with your current We understand that the difficult circumstances faced energy bills. by businesses have made reducing costs a priority. Franchise 2. They’ll give you a call at a time that suits you As the trusted energy partner of the Franchise Council (between 8.00am and 6.30pm, Monday to Friday) of Australia, we’re offering members free Energy to ask some questions about your electricity Efficiency Assessments to make sure you’re optimising appliances and usage - this only takes around recruitment your usage and saving money where you can. 15 minutes. Benefits. 3. You’ll then receive a tailored report including energy saving recommendations, which we’ll Identifies possible cost savings for your business. discuss with you on a quick follow-up call. 2020: Outlines a range of ideas and product solutions designed to help you reduce your energy use or enhance your business’ energy efficiency. trends May lead to reducing your business’ carbon footprint if you start using less energy. and tips Case study: Making it Snap-py with our “In these times By Ben Johnston Snap Printing trial. when money is Co-Head, SEEK Business tight, savings are

the most important Businesses have changed their factor.” operating models and have had Annual 24 Savings 5 10 John Douglas to react quickly to government Franchise bill Moved to Opportunities support and business restrictions, a better to reduce Franchise owner comparisons $279 managing often complex yet changing value plan cost Snap Printing Capalaba, Queensland regulations. Opportunities to leverage more technology and focus on cost 24 Snap Printing Those who 5 were current 7 identified management have also been prevalent franchise stores switched their EnergyAustralia opportunities across many customers we support. undertook bill electricity to reduce costs customers and Many individuals, facing either comparisons and to moved to a through solar Energy Efficiency EnergyAustralia better value and 3 through unemployment or underemployment as a Assessments had an EnergyAustralia LED lighting. result of the pandemic, have also needed with anticipated plan. to rapidly reassess their career options in EnergyAustralia. average annual a tightly constrained job market. savings of $279. These new market conditions John became an have meant that like many of you, EnergyAustralia customer Result: Stores that either switched their electricity after we conducted a bill SEEK Business has also had to adapt. to EnergyAustralia or changed their EnergyAustralia comparison and an Energy Strategically, we moved quickly to shift Efficiency Assessment. our focus to our business buyers, knowing electricity plan saved a projected combined total of that many franchisors would allocate their over $15,000 on their annual electricity bills. John’s projected efforts in supporting existing franchisees. Our quick pivot was based on the annual electricity An Energy Efficiency Assessment does not guarantee energy bill savings because potential savings hypothesis that as unemployment depend on your individual circumstances. These include your location, usage, applicable tariffs, meter savings were: increased, candidates would look to type and the EnergyAustralia pricing in your area. $1403.92 alternative income streams such as business ownership. Many would also use the time to reflect on what they really If you would like an Energy Efficiency Assessment to help you identify ways to save on your Put your energy wanted to do, including that ambition of business energy now and in the future, please email or call [email protected] (03 9508 0888) or [email protected] (0429 518 043). in the right place. being a small business owner.

thefranchisereview | 37 Having never really seen a period like enquiries being attributed to this channel. What does all of this mean for THE DATE this before, looking at historical data was Part of our efforts during COVID-19 has franchise recruitment? SAVE difficult for future predictions, but it was been to speak to many buyers who make First, we recommend that you still pleasing to see that Google search trends an enquiry. We are keen to understand their have some marketing efforts to let highlighted that the term “business for motivations during this period and learn potential franchisees know that you are sale” increases as unemployment rate further how we can help them, and in turn still operating and have or will have future increases. support our franchisor customers. opportunities, even if you have other priorities as a business right now. Google Search Trends vs Unemployment Rate Our results certainly give us confidence The franchise sector’s essential guide to January 2004 to April 2020 that buyers are in market so you need When the unemployment rate increases, searches for the term ‘business for sale’ also increases to make sure you have some exposure. legal information and developments, the Consider streamlining the channels you are using to communicate with potential FCA’s annual Legal Symposium returns for buyers in line with cost restrictions to your 2020 in a brand-new virtual format. business, but certainly have one that works for your brand. Second, the use of email to directly communicate to your existing pipeline continues to be important. I mentioned the emails that were sent promoting franchise FCA Legal brands to our relevant subscribers, received strong volume of enquiries, but it is pleasing that 40% of these enquiries were from buyers who hadn’t made an Symposium enquiry in over twelve months. Nurturing your potential buyers is needed and often for more than twelve months. Remember, our extensive business 18 - 19 November 2020 Sources: Google Trends & Australian Bureau of Statistics buyer segmentation research last year (Lewers 2019) indicated a third of potential buyers had been thinking about business So, what have we seen? Some of the key findings after several ownership for more than ten years. Record visits and enquiries hundred buyer interviews were that Third, communicate how your model From mid-March to mid-April, visits many were existing or had been existing has adapted during this period and how and enquiries at SEEK Business declined business owners. Quite a few of the buyers it can survive periods of uncertainty. 30% and we certainly started to doubt saw the period as being an opportune As a search term, “online” may relate our belief that our audience would grow. time to purchase and as our research has to the nature of the business type but However, by the end of May the bounce indicated, a lot were purchasing an asset also can include how this may now be a back was significant, particularly with the with their partner. Unfortunately, a large channel for sales that your business has volume of enquiries buyers were making. number said the seller hadn’t contacted focused on during COVID. This may be With access to a wide array of speakers from within Australia May enquiries were +50% compared them after a few days. a good reminder to review the content to April (+87% compared to March) and A trend that doesn’t probably and internationally the FCA Legal Committee expects the 2020 you produce and certainly refresh your broke our previous monthly record by surprise given the restrictions businesses to be the biggest and best yet. ad copy to maximise buyers seeing your +15%. A great result, but June was even have faced, has been the increased opportunities. better. Another record with volume of keyword searches on our site Finally, we also know via SEEK recent Feature content will include: visits surpassing 300,000 research, that candidates are considering for the first time and n their next options, with many suggesting A comprehensive regulatory update; and enquiries once again growing The recovery from March that they don’t want their careers to substantially, +45% year on n Sessions on hot topics such as new compliance obligations, resume pre-COVID in the same way. Some year (or +67% compared multi-party mediation, conciliation, arbitration, termination in are being unfortunately forced to change to April). The chart below whilst others are keen to pursue their special circumstances and registration of franchise systems. highlights the recovery from dreams and find something more fulfilling. March and the visit and n Interactive franchising roundtables to delve in more detail For many of you, we hope that will be your enquiries records in May then into topics of mutual interest. franchise offering. June. Please reach out to bjohnston@seek. Importantly, we have also We are also seeking to maximise the benefits the virtual com.au if you would like any further seen an increase in buyer platform to deliver a special international stream featuring information. n engagement, with email some of the world’s leading foreign lawyers. communication proving This will be an unmissable event for lawyers and franchise one of the best performing Sources: Seek Business About SEEK Business channels to drive traffic and SEEK Business is Australia’s largest executives looking to navigate an ever evolving legal and engage our buyers. Although online business-for-sale marketplace; regulatory landscape. we regularly communicate content to including “online”. “Online” prior to March we help people realise their dream our audience, they certainly were more was typically our ninth largest monthly of owning their own business by Registrations opening soon. Group discounts will apply to responsive, and this was seen particularly keyword but now sits at number two connecting them with franchise & ensure your organisation can gain the benefits of attending through emails they were sent promoting and has double the searches compared business sellers. For more visit multiple content streams. some key franchisor brands. Email to the third most popular search term, www.seekbusiness.com.au engagement peaked in June with 8% of “service station”. For more information, visit franchise.org.au

38 | thefranchisereview information on how to purchase tickets if options to buy in store are limited.” Despite the COVID-19 pandemic impacting customers across the country, Mr Moore said lotteries games had continued to inspire Australians and provide an opportunity for some good news for players. “Over the past few months, we’ve seen our jackpot games reach some exciting heights including $80 million Powerball, and $50 million Oz Lotto as well as several $20 million Saturday Lotto Superdraws,” he said. “Not only do these offers encourage players to visit their local outlet, but it also encourages Australian’s to dream of an exciting future beyond 2020 and the challenges it has provided. “We have also seen many players reignite their love of Instant Scratch-Its tickets with a successful gifting campaign to swiftly implement multiple support “We have been fortunate that many of for Mother’s Day kicking off a busy few mechanisms to its network of outlets. This our outlets have remained open, but we months of top prize winners. included the fast implementation of social are aware that the impacts of COVID-19 “With this kind of demand occurring distancing measures guidance, including can be fast-moving and unpredictable, during this period, it is crucial that we POS material, education collateral, which is why we have been extensively continue to deliver exciting offers to our Business signage and sneeze guards. planning for a variety of situations,” he customers so that they continue to visit This support has adapted during said. their local retailer. recent months as different states “A vital example of this is planning “We have increased the development implement different restrictions and is what the impact of higher-level of our Instant Scratch-Its tickets range, so as usual guidelines. restrictions and forced closures would we can offer our customers more variety The Lott General Manager Lotteries have on our businesses, similar to what of products and ensure our retailers have Retail Antony Moore said he was proud we have experienced in Victoria. ample stock during this period. of how retailers across the network had “When the Victoria shutdown “We have also accelerated our jackpot in unusual adapted to the required changes. occurred, our dedicated team called rolls in the first few months of FY21 to “We know that during the past few every outlet in the state to discuss the offer players bigger jackpots, more often. months, retailers have had to quickly situation. These calls allowed us to “With exciting offers, we are providing adjust their operations to bolster health provide support to our retailers who our retail network with an opportunity times and safety. Many of our outlets have were experiencing an unprecedented to connect with their customers during also embraced the opportunity to shutdown. these ever-changing times. In doing so, Along with the health and build stronger relationships with their “Not only did they receive a phone our outlets continue to be a community safety of its retailers and customers at this time,” he said. call, but they also received an information hub and beacon of positivity.” n the Lott “Many of our outlets are a trusted pack, which included FAQs, signage and their customers, helping hub in their local community, so it was checklists to help them navigate staying its franchise network to important that they continued to operate open under the highest level restrictions The home of Australia’s Official continue to grow and in a safe way and provide essential in the country. Lotteries, the Lott operates and supports services to customers. “For those that needed to close, these markets Australia’s leading lottery thrive during recent “We’ve provided support to our outlets calls and information packs provided games customers know and love times has been a focus during this time through a coordinated much-needed information on how to creating everyday winners, winning effort across our teams, such as safely and securely prepare their business every day. retailers for the Lott, the home of government relations, retail development, for lockdown. Last financial year, more than 104.9 Australia’s official lotteries. and marketing, who worked together to “Had we not spent several months million winners took home more than ensure our franchisees had what they planning for different scenarios, we would $3.45 billion in prize money from As Australians have navigated through needed to continue to trade safely. not have been able to act so quickly to their favourite games at the Lott, throughout this challenging time, the Lott has sought “This has included individual outlet ensure our franchisees had the most up- including Saturday Lotto, Monday to move quickly and respond to the support from our team of dedicated to-date information available. and Wednesday Lotto, Powerball, Oz changing environment so that its outlets Business Development Managers, who “We also wanted to provide Lotto, Set for Life, Lucky Lotteries, can continue to provide essential services ensured their regular visits continued information and support to our Keno, Super 66, Lotto Strike and and keep Australians’ dreams of winning virtually, meaning they were able to customers. This is why we have frequently Instant Scratch-Its. COVID-19 the big one alive. Essential businesses, answer any questions and provide help to updated digital POS materials and In the 12 months to 30 June such as newsagencies, convenience retailers who need it.” created a dedicated area on our website 2020, Australia’s Official Lotteries stores, and petrol stations, have been able Despite most retail outlets remaining regarding COVID-19. contributed more than $1.4 billion via to continue trading in recent months. open throughout the pandemic, Mr Moore “These communication channels state lottery taxes and donations to Since March, when the pandemic explained there had been extensive feature the most up-to-date health help community initiatives, such as reached Australia, the Lott has worked planning throughout the business on how requirements, so customers are reminded hospitals, health research, disaster closely with state governments, retail to support the retail network in the case of the strict social distancing guidelines relief and education associations, retailers and regulators of forced closure. our outlets adhere to. They also feature

40 | thefranchisereview thefranchisereview | 41 PAY RATES AND CONDITIONS EMPLOYMENT LEGISLATION Intensive EMPLOYEE DISPUTES, COUNSELLING & DISCIPLINE MATTERS care can DISCRIMINATION WORK HEALTH AND revive your SAFETY LAWS BEST PRACTICE EMPLOYMENT business STANDARDS The global pandemic - the scourge of COVID-19 - has been like a punch in the guts for so many small businesses throughout our nation. So many hardworking small business owners who have risked everything to build wealth by backing their own commitment, self-belief and making untold sacrifices, are Don’t now facing a challenge that no-one could have prepared for. While good franchisors will provide leadership, support, and strategies, at the end of the day, each franchisee needs to put your provide specialised intensive care to their own business.

Survival mode – Make sure you get good quality business and personal information. Choose your source of information carefully – what do you really business Look after your own mental health. need to know to help you make the You can’t make clear decisions, and most effective decisions now? Talk your nor can you lead effectively if you are situation through with your “inner circle running on empty. Take advantage of of trust” experts. Block out the noise, the online tools for stress management at risk chatter, the other so-called experts – this and seek professional advice from wall of rumour, speculation and click-bait experts if you need it. Make quality will overload your mind and derail you. time for yourself every day and practise gratitude. It’s a simple thing to write Make plans for your business down three things each day that you in 30-day blocks with seven-day Need help with your are glad about, but ongoing, it has the milestones. This is a big chunk of time powerful effect of making you recognise in an environment that is changing by the minute, but you need goals to By Corina Vucic the good stuff as it crops up in a day, employment compliance? rather than being overwhelmed by re-centre your vision and stoke your Director, problems. purpose. Every goal reached builds your FC Business Solutions Accept the situation we are in. Come to sustainability. Get in touch! terms with it and apply yourself to shock- What do you need to do to maintain proofing your business as much as you your business in short blocks of 30 The Employment Compliance can. Where you are operating in Australia days? Make decisions swiftly to stop any will very much dictate your mindset. Those obvious bleeding points in your business. Helpline service is included in your in Victoria have a far harder road than This is survival mode and you need to FCA membership* those in Western Australia. But this virus is strip to the basics and run lean. You don’t determined, and without a vaccine or cure, have the luxury of evaluating a problem every business needs to plan for a future over time because the longer you wait, *Capped at 30 min per issue lockdown, while hoping one doesn’t occur. the harder it will be to fix and the longer Research the effective strategies that it will take to re-coup losses. What do Melbourne businesses are applying and you need to survive now? Use the tools A closed Listen To Your Body studio erstrategies.com.au learn from their need to be inventive and at your disposal to identify this, make a quickly adapt. list and just do them. Audits | Employee Helplines | Employment Compliance Training | Franchise Employment Compliance Solutions thefranchisereview | 39 thefranchisereview | 43 The nuts and bolts Leadership and responsibility Are you cruising in Examine every aspect of your Embrace your leadership role and help survival mode? business. Every cost and the value it your team and wider network, process, Be honest. Is this the only speed you provides. understand the situation, and perform at and your business can possibly operate GETTING Government grants. There have their best during these challenging times. at this moment in time? Is your industry in been billions of dollars pumped into the Share your knowledge with your team, the same mode? Are you cruising at the Australian economy and this includes be honest about the business and what’s same pace as your industry, above the grants for businesses as well as help with happening. Drawing on the combined speed or have you fallen behind? paying wages. Regularly check out the knowledge and intellect of your team If regulation has your business paused, Federal and State Government websites could well throw up some innovative use this time to evaluate all your products to see what you qualify for. solutions. and services. Are they relevant? Do Bank Loans. Investigate terms and Your teams are essential to your they require change? Take input from conditions – can you get a better interest ongoing business survival and ultimate your team – get feedback from your rate? Can you pay interest only? Can success so spend the time to nurture their customers. Get excited about making you negotiate a repayment holiday? Can mental health. Get across the personal change, innovating and planning for the you extend the term to minimise your situations of your people. Make sure you future. cashflow short term? Get the best advice see them – whether in person or on Zoom Do you have the passion to fight you can to drive down your outgoings on (or similar) frequently, noting how they through these times and emerge with a borrowed money. look, their body language etc and then sharper, more efficient business? If not, Insurance. Have a close look at your following up on any you think are not in a look at an exit plan sooner rather than policies in view of how your business good place. Foster a culture where they later. model might have changed. Do you feel safe to share how they feel and what BACK TO have staff working from home? Business is happening in their homes. Find the key Place a goal on the horizon laptops and mobiles are now in private to help each team member accept the Keep moving forward. Don’t get homes – are they covered by your current situation while motivating them moribund, or paralysed by indecision. insurance in this situation? to plan and work to a brighter future post Come up with a goal and set it on the Lease Management. Can you CV-19. horizon. Devise a plan made up of small renegotiate better terms on any leased Work on team morale. Foster achievable steps to reach it. Sure, there business space and equipment? platforms that help the team chat, may be foggy or rainy days when you Workforce Management. JobKeeper engage, share, laugh. can’t see the horizon, but it’s still there. will allow you to keep staff on at • Spotify - share what they are Envisage it, work towards it, celebrate reduced hours but this prop won’t be listening to small victories. around forever and the reduction post • Closed Messenger Groups Give your business the intensive care it September will mean that, unless you • Private Facebook Groups BUSINESS needs and a fitter, healthier business will supplement wages, you’ll need to reduce • Zoom catch-ups emerge at the end of this. n people’s hours further. What does the • HouseParty staffing of your business look like longer • Facetime term? Is now the time to consolidate roles, to re-train people? You want the most efficient, highly skilled and focussed workforce you can get. Make plans now to shape it. Other expenses. Go over every item in your outgoings column. Particularly focus on recurring expenses. Do you need the daily papers delivered? Are there online & software subscriptions that you can cancel or suspend for a period? Conduct a thorough review.

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44 | thefranchisereview franchisingexpo.com.au thefranchisereview | 45 A legal overview Review, revamp and refresh

Adapting your terms and conditions to ensure that Protecting your And the most important your rights and those of your customers intellectual property thing to remember? are protected, and that the obligations Protecting your franchise’s intellectual Franchising is unique in the business and responsibilities of all parties are property is critical but it can be easy to world in that success is dependent franchise’s documented. overlook, particularly during times of on the ability of a franchisor and It’s also key to keep your franchisees rapid and unprecedented change. Failing franchisee to work together. I in the loop, especially if moving online will to take appropriate steps to protect areas result in the closure of physical premises, have been heartened to see many of intellectual property such as your logo business model for instance if you are in retail. If this is the experiences of this firsthand since case, you should also consider financial and other brand elements and unique COVID-19 arrived on our shores and it and contractual obligations regarding any concepts within the marketplace specific is critical now, more than ever, to work leases held. to your franchise can leave you open to together. to thrive during competitors and cost you dearly. A central tenet of the Franchising Changing your franchise’s If you are moving your business Code is acting in good faith. offerings online, please ensure that your trade Franchisors and franchisees alike are marks are adequately and appropriately experiencing extraordinary times and it Some franchise systems have altered protected through registration. If you are is important that both parties continue COVID-19 their approach through the addition or establishing new goods and services, you to act in good faith towards each removal of goods and services. In the may need to consider new or additional other so as to have the best chance to The Coronavirus has had (and will no doubt continue to have) an hospitality sector for example, many registrations to protect new marks and survive. businesses transitioned to contactless enormous impact on many businesses. In these unprecedented materialised ideas/concepts as well as Listening to each other and payment or home delivery. Others have – ensuring that you have the appropriate communicating is important, times, many of our clients are having to make quick decisions in by way of necessity or by identifying an non-disclosure documentation in place. particularly when considering changing opportunity in the marketplace – shifted order to limit the effect that this health and economic crisis will Whilst for most businesses the into completely new offerings altogether. the very structure upon which your changes have been rapid and often have on their business. Franchise systems are not immune to For instance, selling hand sanitiser and business is built. Franchisors should reactive to the situation we are finding other COVID-related necessities. respect the fact that franchisees may this and we have seen many systems heavily impacted by the ourselves in, it is vitally important that Innovation and adaptation are feel uncomfortable with how quickly when making changes to ensure that nationwide lockdowns and downturn in the economy. admirable skill sets and necessary for changes are being made so it is you still do your due diligence ahead of any business to evolve and remain viable important to ensure that concerns are launching anything new, ensuring that long-term. However, it’s important, addressed and that documentation is As a lawyer, I recommend regular you’re not infringing another company’s Transitioning online especially given the rapid pace of change reviewed regularly (weekly, monthly reviews of any franchise to ensure that intellectual property. Without careful due Many franchise systems have that franchise systems have experienced or quarterly as necessary) and you’re ahead of the curve in meeting focussed on the online space to continue – and are still experiencing – that you diligence, even at a basic level, you may updated as required. Any out of the (and exceeding!) customers’ needs conducting business in recent months. do so within the bounds of the law and find yourself embroiled in legal action that ‘ordinary’ arrangements including fee whilst at the same time adhering to the For instance, gyms have delivered what you are permitted to do under your you did not foresee. relief and waivers should be carefully contractual obligation that you have online classes and medical professionals franchise agreement. documented with clear details on with your franchisees. The arrival of Other financial obligations have performed consults via video Another consideration you will need to the nature of the arrangement, the COVID-19 in Australia and indeed, across conferencing technology whilst others assess is any new supply arrangements to remember duration of the arrangement and the the globe, has made this a much more have created or expanded digital and your contractual obligations under If you or any of your franchisees rights, responsibilities and expectations pressing concern for many franchise shopfronts. This is a great way to adapt existing ones. Given that many businesses have utilised available supports during of both parties during this time. owners who have had their business your business if you haven’t already done are experiencing supply difficulties and this time (rent waivers, mortgage In short, despite the negative halted in its tracks by restrictions, panic so, however, make sure that you’re aware the overarching question we all have of deferrals, JobKeeper payments, etc) impact that COVID-19 has had on buying and an economic downturn, of your obligations at law and to your “what next?” that currently hangs over you should check how this could impact many within the franchising sector, to name just a few of the resulting franchisees. our heads, it’s important to assess the your business plans moving forward. there have been great instances of curveballs. Providing services in the digital space viability of any changes and whether For instance, depending on the type adaptation that have seen some By Racha Abboud So, what are some legal means that you’re collecting information those changes are being made as an of support utilised, you may be legally businesses grow from strength- considerations for you as you adapt and Principal Lawyer, and data you may not otherwise be able interim measure or to the system overall. required to pay monies owed at a to-strength. There are exciting innovate during COVID-19? Commercial | Franchising, to collect and record from your standard Consideration needs to be given to later date (such as deferred mortgage opportunities moving forward but it’s macpherson kelley face-to-face interactions (address, date- existing contractual obligations and what payments, deferred rent etc). This is likely important to make sure that you do of-birth, credit card number, etc). Make it may mean for you and your network if to have an impact on cashflow and will take some time to assess your legal sure you update your Privacy Policy those obligations are not met and cannot play a factor in the financial viability of the obligations now and continue to do so accordingly, and review and update be met in the future. business overall. in the future. n

46 | thefranchisereview thefranchisereview | 47 The exponential growth of the home care sector is being driven by the coming of age of the Baby Boomers, coupled with the NDIS - a once in a lifetime reform of funding for disability services that puts the choice for care in the hands of those living with disability. Together, these factors have resulted in a demand for home care that simply can’t be met right now. If proof is needed, the growth is backed by findings from the Royal Commission, and a survey of more than 10,000 older Australians – 80 per cent of whom said they want to remain at home. This is not to say that all home care providers will prosper. Matt says some of his competitors are struggling under the the actual operation of the business, even “Nurse Next Door’s “why” has always weight of the demand - either too big to if, or especially when it’s thriving. In the been, and continues to be, a belief that pivot quickly for changes to what clients first few weeks of the pandemic, with a home is the best place to be for older need right now, or too small to cope with lack of clarity around health and safety people, and people living with disability. the increased demand due to a lack of measures, Matt says there was some fear Regardless of any crisis, our purpose of resources. and concern from franchise partners, Making Lives Better hasn’t, and won’t, “Home Care businesses need to staff and clients, which had the potential change. Navigating through any time be scalable to meet the ongoing and to create confusion about the best way of rapid change must be led by the increasingly high demand for complex forward, or indeed, any way forward. core values of the brand and ensuring care at home. They need proven systems The ability to come together quickly as a that they continue to be the foundation and processes that ensure care delivery system globally, support each other and, on which we run our business, so that continues to meet the highest quality more importantly, work together was, everyone from caregiver to franchise Matt believes, what enabled the system partner has that clarity around the things Why Nurse Next to thrive rather than just survive during that matter most,” says Matt. those first few weeks of uncertainty. To confirm this, Matt points to Nurse To ensure Nurse Next Door franchise Next Door Australia’s first franchise partners felt supported, particularly partner, located on the Southern Gold Door is thriving during the early stages of the pandemic, Coast and operated by local resident, Matt explains that communication from Lauren Macdonald, born and bred on the HeartQuarters globally was immediately Gold Coast. She and her partner (and ramped up to include a daily call system- husband) Glen knew they wanted to do in the new wide to foster: something that would make a difference • Current clinical updates researched in their community and Lauren was by Nurse Next Door’s team of senior passionate about aged care. Nurse Next nurses and clinicians that allowed Door’s purpose of Making Lives Better COVID world franchise partners to have all the facts struck a chord with them and today, just clearly explained and put into operational three months after opening their doors, context. [Matt notes that over time this they’re exceeding all expectations in As a provider of essential services, Nurse Next Door Co-CEO of Nurse Next Door Australia, standards to safeguard, above all, the has been developed into a Clinical Task both brand reputation and care delivery, Matt Fitton, says he and partner Amber client's wellbeing,” Matt says. Force that continues to support franchise meeting targets six months ahead of Home Care Services has found itself in the enviable Biesse are not surprised by the increased This is why home care, says Matt, is partners both now and into the future]; their financial models and already scaling position of growth during the COVID-19 pandemic. demand for services. what the franchise model was intended • An intentional focus on opportunity up to accommodate demand for 24/7 “Right now, there is monumental for: a local entrepreneur, passionate about and sharing ideas to help every franchise high level care clients juxtaposed with System-wide sales have increased dramatically, with growth in the home care industry, which making a difference in their community, partner ‘pivot’ and develop new services requests from others who simply want client revenues growing at more than 35 per cent we expect to continue well into the future, coupled with a franchisor offering world in response to COVID, e.g. provision of transportation to a doctor’s appointment driven by Australians who want to access class systems, a reputable brand and wellness checks for employees in large or companionship on a weekly basis. month-on-month since February, as the pandemic care on their own terms, in their own ongoing support. That knowledge of, and organisations who cannot work from Matt says there is no denying home drives greater interest in home care than was home,” Matt says. connection with, their local market, and home; care is complex, but with the franchise “What Nurse Next Door is its nuances, is such a valuable asset, and • A forum to discuss challenges such business model, the home care provider already being experienced. While many businesses experiencing on the frontline is what this “neighbourhood” insight combined as accessing PPE or helping to educate is backed by the master franchisor struggle to stay afloat, discussions around business economists, health care specialists and with proven systems is the power of communities and clients overwhelmed whose role is to provide systems and resilience at Nurse Next Door have been focused the Government have been predicting the franchise model. The results speak by misinformation around community support to ensure business resilience and for some time. That is, a shift from the for themselves. In just 18 months, Matt transmission and caregiver health. success, combined with the knowledge on operational excellence and a strict adherence to traditional model of centralised care and Amber have seen Nurse Next Door Above all, throughout COVID-19, Nurse that each franchise partner is able to systems purpose built to manage rapid growth in where people requiring care move out of Australia’s revenue experience exponential Next Door franchise partners, led by deliver world class client needs focussed home into centralised facilities, towards growth and it continues to climb. the team at HeartQuarters, have come care, clinical policies and even 24/7 these challenging times. a decentralised model in which people Of course, rapid growth brings its own together to remind each other why they scheduling and client support - with a remain at home.” challenges. It’s easy to take your eye off got into this business in the first place. local touch. n

48 | thefranchisereview thefranchisereview | 49

Full visibility & control through one central platform MBE goes contactless with launch of online services

As the world adjusts “The new digital mailbox program co-operation with our shipping partners, has always been in the pipeline and on DHL, FedEX, TNT, Toll and many more, and adapts to living and the cards to complete and implement, making both domestic and international experiencing life ‘online’, however when the pandemic hit, it shipping more competitive and easy to was escalated into the next phase of use from the consumer’s home or office. Mail Boxes Etc (MBE) development and we were able to No need to bring in the package and Australia has launched a implement within 60 days,” says MBE send from our locations, however, we are Australia CEO, Clayton Treloar. still happy to do this. new digital mailbox that The new tool allows customers to “In light of all these new tools, we are allows customers to use easily manage their mail from a mobile also trialling a fully automated online a secure cloud-based device or computer. Depending on the printing and design portal currently selected service plan, customers can available in our Brisbane landing page of platform to view and choose from features such as open and the website. This is a good place to order manage their mail from scan, forwarding, and shredding mail. the basic business cards, flyers, posters “Eighty per cent of our clients have etc, at the click of a button.” any location. no need to come into our centres on a These innovations are just one of the regular basis, however we have been able ways MBE has supported franchisees to successfully make changes to assist during Covid-19. those who need to collect mail, parcels, or “We have a number of franchisees who print jobs,” Treloar says. have been in our business for 10, 15, 20 According to Treloar, the digital plus years, and my team and I treat all our mailbox will be a catalyst for future franchisees like family,” says Treloar. Inventory Cloud reporting growth of the business. “We’re doing everything we can to Multi-site management “It will give customers access to their support franchisees, by offering reduced Accounting mail without coming into the centre. So royalty fees, ongoing communication Payroll POS Terminals that means customers won’t have to drive and training, and increased awareness for Kiosks & Tablets Payments to their PO Box or wait until they return the changing business landscape. I have Paperless Kitchen - KMS from a trip. Plus, we all want to continue spoken with almost every MBE landlord Real time data/Dashboards to be cautious in this ongoing pandemic, in the country to ensure our partners Order@Table/QR code ordering which makes this new service ‘non- are being well looked after and they are contact’,” he says. closely following the National Code of The virtual mailbox has been Conduct when it comes to landlords and embraced by franchisees, with MBE’s tenants,” Treloar says. Franchise Advisory Council involved in “I have been in close contact with www.redcat.com.au/franchises deciding the price structure and launch to the Franchise Council of Australia to assist with franchisee “buy in”. ensure we are all well looked after and “We are pretty much a fully the support from both Federal and State FRANCHISES contactless business now,” Treloar says. Government has been very welcomed. “Other than the digital mailbox Not one of our 40 locations across RESTAURANTS offering, we now also offer 100% online the country has closed and business is shipping. Our new shipping portal is in starting to boom again.” n CAFÉS

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66058_KKA_WeLove_Local_A4_Ad_Final.indd 1 25/8/20 1:23 pm