Franchisereview OFFICIAL JOURNAL of the FRANCHISE COUNCIL of AUSTRALIA
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ISSUE 43 EDITION THREE 2015 The FranchiseReview OFFICIAL JOURNAL OF THE FRANCHISE COUNCIL OF AUSTRALIA Making dough from cookies A look at Mrs. Fields' brand analysis INSIDE Page 17: Know your tax and superannuation obligations Page 24: Learning and development at The Coffee Club Page 49: National Franchise Convention 2015 program highlights 331382A_Boost Juice | 2196.indd 1 12/08/15 3:08 PM 331382A_Boost Juice | 2196.indd 2 12/08/15 3:08 PM THE FRANCHISE REVIEW Contents INSIDE 3 A message from the General Manager By Kym de Britt, General Manager, Franchise Council of Australia 4 Making dough from cookies An interview with Andrew Benefield, Managing Director, Mrs. Fields 9 Safety the number one priority with Domino’s GPS Driver Tracker An interview with Don Meij, Group Chief Executive Officer and Managing Director, Domino’s 12 Addressing the need for improved franchising data By Darryn McAuliffe, Chief Executive Officer, FRANdata Australia 17 ATO assistance for franchisors 20 Quest’s $10 million rebrand Q&A with Quest Chief Executive Officer Zed Sanjana 24 Brewing staff who are ‘crema’ the crop: the equity in training programs A profile of The Coffee Club’s staff development strategy 31 Taking your franchise into the cloud By James Scollay, General Manager of SME Solutions, MYOB 37 Mövenpick Australia growing strongly through retail innovation 41 Mentoring is good business By Cheryl Critchley 47 Regional Excellence in Franchising Awards recognise franchising success 49 Bumper keynote line-up at National Franchise Convention 52 Women in Franchising By Racha Abboud, Chairperson of Women in Franchising 54 Join the FCA’s delegation at the 2016 IFA Convention and United States Franchisor Study Tour Published by: Executive Media | ABN 30 007 224 204 430 William Street, Melbourne VIC 3000 Tel: (03) 9274 4200 | Fax: (03) 9329 5295 Email: [email protected] | Web: www.executivemedia.com.au The editor, publisher, printer and their staff and agents are not responsible for the accuracy or correctness of the text of contributions contained in this publication, or for the consequences of any use made of the products and information referred to in this publication. 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Reproduction in whole or part without written permission is strictly prohibited. 2 THE FRANCHISE REVIEW A message from the General Manager BY KYM DE BRITT, GENERAL MANAGER, FRANCHISE COUNCIL OF AUSTRALIA Representation, education and gaining that amendments are made that preserve the integrity of positive recognition of franchising as a the contractual regime that business model remain three of the key underpins franchising. focuses for the Franchise Council of Recognition: Regional Australia (FCA), and the Association has Excellence in Franchising Awards been busy on all fronts in recent times. Across July and August, the FCA celebrated franchising success at the SEEK Representation: unfair contracts legislation Commercial FCA Regional The FCA is continuing its efforts to ensure that there are no Excellence in Franchising negative impacts on franchising from the federal government’s Awards in Brisbane, Sydney, proposed extension of unfair contracts legislation to small Perth, Melbourne and Kym De Britt business. Adelaide. I would like to add Essentially, the federal government is committed to delivering my congratulations to all the regional award winners for 2015. on its election promise to introduce legislation to prohibit ‘unfair Franchising brings so much benefit to the vast majority of contract terms’ in ‘standard form contracts’. Though this is franchisees, and it’s pleasing to see this recognised at the a complex issue with several factors at its core, the FCA has Regional Awards. The passion of all of the Regional Award sought to show that a typical franchise agreement should not winners and finalists was obvious to all, and this year, once be considered a standard form contract. again, there was strong competition across all categories. The The FCA’s efforts to ensure fair outcomes for franchising in awards provided entrants with a valuable opportunity to reflect the proposed laws have included making submissions on the on their own achievements, systems and processes as part of proposed legislation, and meeting with Small Business Minister the submission process. the Hon. Bruce Billson MP to discuss the Association’s You can find out more about the Regional Award winners and concerns regarding the draft legislation. I am pleased to report all the action from the Awards events later in the magazine. that the discussions with the Minister were productive, and that the Minister was receptive to the Association’s viewpoint. The regional winners are now off to the MYOB FCA National Awards, which will be presented at the National Awards Night Our concerns, which are outlined in the FCA’s submission on the Gold Coast on 13 October. to the government on the proposed legislation, are chiefly that the legislation will undermine the certainty in franchising Education: National Franchise Convention 2015 arrangements, and that it will further inhibit small business The importance of staying up to date with key developments access to finance. in the franchising sector cannot be emphasised enough for In the submission, the FCA has also recommended that if franchisors and their head office staff. The beauty of the the legislation is enacted, the franchise sector should be National Franchise Convention (NFC15) is not just in the exempted, as we already have a comprehensive regulatory packed program, through which you will hear from keynote framework that includes disclosure, a mandatory 14-day period speakers as well as franchise executives in concurrent and to facilitate due diligence and advice, advice certification workshop sessions, but also in the plentiful opportunities to requirements, and a cooling-off period. In light of this, network with your fellow franchise professionals. franchise agreements should not fairly be at risk of being There is as much to be gained from these informal considered ‘standard form contracts’. conversations, and the ability to share ideas and make connections in a non-competitive environment, as there is from At the time of writing, the proposed legislation was before the the formal conference program, so I would encourage you all to Federal Parliament. The FCA remains hopeful that the logic attend NFC15 at the RACV Royal Pines on the Gold Coast from of its submission, and the good relationships the FCA enjoys 11–13 October. with the Small Business Minister, Treasury and the Australian Competition and Consumer Commission (ACCC), will ensure I hope to see you there. 3 THE FRANCHISE REVIEW Making dough from cookies AN INTERVIEW WITH ANDREW BENEFIELD, MANAGING DIRECTOR, MRS. FIELDS 'Good Enough Never Is’ is the Mrs. Fields The Mrs. Fields dedication to continual improvement prompted Managing Director Andrew Benefield to undertake a brand motto, coined by its founder Debbi Fields analysis that looked at everything from the business model and in 1977. Today, with more than 500 Mrs. its bottom line, to store design, product offering and market competition. The Franchise Review spoke with Benefield about Fields stores around the world, the motto the analysis and its outcomes. still reflects the franchise’s uncompromising The overarching goal of the brand analysis was to inform the dedication to the customer experience. creation of a business model that would be financially attractive The Australian Mrs. Fields website says to new and existing Mrs. Fields franchisees, as well as to provide improved returns for the company. the company delivers ‘the highest-quality ‘We knew that our potential franchisees were probably earning cookies, muffins, brownies and other fresh between $60,000 and $90,000 in the workplace, and would baked goodies’ to keep customers happy ultimately want similar after-tax returns – plus added value for the capital they were injecting and the risk they were taking,’ – but there is more to a strong bottom line says Benefield. ‘That said, we recognise that franchisees get than tasty products. involved in this business for a lot of different reasons.’ 4 THE FRANCHISE REVIEW Benefield explains that the product offering was one consideration in the pursuit of this kind of revenue. The franchise had to provide all of its stores with products they could sell from early-morning openings (3 am at Sydney Airport), to late-night closing time at 9 pm. Benefield says that the brand analysis ‘Not everyone wants a chocolate-chip cookie for breakfast. Most importantly, the brand and the products had to be attractive for revealed that after 25 years in customers, or else none of the above would be achievable.’ Australia, the Mrs. Fields brand has So, the Mrs. Fields team introduced the Hot Cheese Toasty, Bacon and Egg Wraps and Hot Apple Cyder in order to provide increased strong consumer awareness – made sales opportunities for these traditionally slow times of day. stronger by post-analysis rebranding While new and unconventional products have been added, Benefield explains that Mrs. Fields remains focused on the fact of the company logo to itself resemble that its sells the ‘world’s favourite chocolate chip cookie’, which is still the company’s point of difference.