COVER STORY - Billy's Buddies
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COVER STORY
SEPTEMBER/OCTOBER 2017 | 18 | WWW.FRANCHISEBUSINESS.COM.AU
SCORING
GOALS
Look behind the gloss of a sporting superstar and
you’ll find passion, commitment and hard work – the
exact same attributes entailed in running a business or
franchise.
M elbourne Storm’s NRL superstar
Billy Slater, the Maroon who helped
take his home-state team Queens-
land to yet another State of Origin win, is
a devoted family man with a passion for
another staff member soon, reflecting the
fledgling brand’s swift growth and move to a
franchise model.
“We have one franchisee under contract
for the Sunshine Coast,” Longworth says, with
engaging children in sport. This led to him four other areas close to being signed. These
launching his sports programs for young- are all new territories, or greenfield sites.
sters, Billy’s Buddies, in January last year. So why franchise?
Says Slater, “I know the importance of local
It’s a business from which he derives plenty networks and connections in building any
of satisfaction: “seeing children develop their business. Franchising enables us to get the
physical and social skills but above all have right people, with the right networks, and the
fun.” right motivation to grow our programs.”
It all came about because he thought
there was a gap in the market to attract more
children to rugby league, specifically the two LINKS WITH CLUBS
to six years bracket.
Slater believes there are parallels between While the programs have come out of rugby
running a business and sport. league, there is as yet no direct affiliation
“It is like footy in many respects: discipline, with the sport, though Longworth says Billy’s
hard work and relationships are the corner- Buddies has strong relationships with local
stones of achieving long-term success,” he clubs. “Registration is beneficial to a club. We
tells Inside Franchise Business. introduce the kids to rugby league at three,
But it takes more than passion and four or five years old, and they graduate to
determination to bring a business project play in a club.”
to fruition, he says. It helps to have some Coaching is structured to suit different age
management experience backing up the groups in park-based classes. But it is not just
entrepreneurial drive and commitment. “running around”, says Longworth. Two-year-
“I’ve been in it since the beginning,” olds have one program, those three and four
says former PricewaterHouse Coopers work together in another skillset, and the five-
management consultant CEO Tom and six-year-olds progress to more advanced
Longworth of his involvement in Billy’s sporting skills. Typically, three-year-olds are
Buddies. “I am one of the owners and have the core of the business.
an equity interest.” One way the business works is through
Spreading its wings from central childcare centres, where parents can sign
Brisbane out, the business now holds up their youngsters to a sporting program.
more than 150 classes each week across The childcare sessions incorporate all ages,
southeast Queensland. with coaches modifying the activities to suit
“It’s a reasonably big operation,” says individuals. Longworth says a two-year-old’s
Longworth. “We have two full-time staff attention span is the biggest challenge.
members and 25 part-time and casual Coaches need to have first-aid qualifica-
employees across coaching and admin roles.” tions and approval to work with children (in
And the business is planning to bring on Queensland, the Blue Card).
SEPTEMBER/OCTOBER 2017 | 19 | WWW.FRANCHISEBUSINESS.COM.AU
COVER STORY
“We’ve built up a reputation already,” “I have been lucky enough to have no-contract set-up of the Billy’s Buddies
says Longworth. “Initially we had to prove played rugby league at the highest level program. “Three-year-olds can easily change
ourselves. Goodstart is a major stakeholder.” which has naturally provided me with their minds quickly. It’s hard to guarantee a
a national profile. Billy’s Buddies can kid for a term, so one of our fundamental
leverage this profie - and the fact I am pillars is that there is no barrier to entry. We
BRINGING IN BUSINESS writing the program - to drive business offer free trials, and no upfront fee. There’s
growth,” Slater says. a fair bit of flexibility.”
A website and strong social-media "I don't see it as a risk - not when Weekly fees are $11.90 for a 40-minute
presence boost the brand, and a combi- you have the right people on the team. session.
nation of head-office and individual initi- I am not alone in this endeavour and When it comes to territories, Billy’s
atives bring in new business. While child- have leveraged significant expertise, Buddies is looking for a minimum popula-
care-centre groups can make overarching and business experience to ensure the tion of 80,000. An average area size has a
decisions to take on the program, it can business is an ongoing success.” population of 125,000, while the biggest
be up to each particular centre manager “I still like to have significant input, territory would have a 175,000 catchment.
to implement it, so networking skills and particularly in the coaching modules
relationship-building form an essential which we are constantly tweaking and
part of the franchisee’s role. improving,” he adds. SAME FEES
“We’re not looking for rugby-league
tragics,” says Longworth. “Of course we The business approach is to charge the
want people with a passion, but we are AUTOMATED ADMIN same fees for a territory, irrespective of
choosing those who have business skills population, but to adjust the key perfor-
and will network in the community. Fran- Success brings its own challenges, says mance indicators (KPIs) accordingly. So,
chisees have to sell themselves to the Longworth. “When it’s going well, there are says Longworth, the Mackay territory is
centre.” a lot of kids in the system, and there’s a fair priced the same as Townsville, despite the
An obvious advantage of the Billy Slater bit of admin. Parents need to know what’s different population sizes.
name is the capacity for his management going on.” And he believes Billy’s Buddies Franchise KPIs are based around the
team SFX Group to propel the brand into systems are excellent at capturing registra- number of children taking classes each
the spotlight and attract media attention tions and taking payments. week. It might start with 40 children in a
and brand awareness. This has already “We automate a lot of admin and week and build up to 160 in 12 months
included two reports on Channel 9 News reporting for the franchisees to see how for one territory, but with smaller targets
over the past 12 months and publicity in they’re tracking.” for regions with different demographics.
the Courier Mail. He believes parents particularly like the Franchisees sign up for a five-year
SEPTEMBER/OCTOBER 2017 | 20 | WWW.FRANCHISEBUSINESS.COM.AU
COVER STORY
WHAT’S IN THE PACKAGE?
Franchisees invest in a proven model and turn-key
business, which means they can get started right after
training.
Franchisees have three days of upfront training, plus
ongoing support. Training focuses on program management
and administration; coaching (both practical and theoretical);
marketing; and using Billy’s Buddies Sports Management
software.
Billy’s Buddies has access to cheaper pricing for supplies
(apparel, gear, materials) as a result bulk buying, with the
savings passed on to franchisees.
term with the possibility of renewal, EXPANSION PLANS There are many competitors in other
linked to KPIs. sports sections with franchise brands that
The number of coaches needed to run So where next for the brand? As it fans out appeal to the parents of active young-
the sessions will depend on the number of across southeast Queensland and down sters. While rugby league has been the
sessions, and the franchisee – investors to the New South Wales central coast, foundation for kickstarting Billy’s Buddies,
with a hands-off approach are likely to the plan is to head for Canberra, then it offers a more diverse range of skills as the
employ between three and five coaches. other states. primary aim is to encourage children to be
Owner/operators will be able to manage “Melbourne will be the next cab off active and engaged in sport.
their business with fewer coaches, the rank after that,” says Longworth. “If The five-year goal is to have 20,000
perhaps just one. we had really good interest from Adelaide children participating in sessions each
For instance, in Carina in Queensland, and Perth, we’d consider it.” week," Slater points out.
the Billy’s Buddies turnout is 45 young- For now, the business is concentrating “The cost structure is very variable.
sters on a Saturday morning across two on growing its presence in New South There’s little in terms of costs, the main ones
and a half hours. Wales and may even open a Sydney office being coaches and labour,” says Longworth.
The model is set up for smaller classes, this year. In time, a Sydney base could well “It’s the systems and the processes that give
however. Longworth says the business become the head-office hub, Longworth franchisees the ability to make a profit.”
still makes money with just four young- suggests. “We definitely want to position
sters in a childcare-centre session. ourselves as the top sporting program.”
WHO’S ON THE TEAM?
BILLY SLATER TOM LONGWORTH GEORGE MIMIS
Award-winning professional Heading up this sports business Founder and managing director
rugby-league footballer who on a day-to-day basis, Longworth of the sports management and
has represented Australia has a background in franchising marketing business SFX Group,
internationally, won three grand his own brand, TRL (Touch which has Billy Slater on its
slams, and was the 2008 World Rugby League), and a corporate books. Mimis is a University of
Cup's top try-scorer. Queensland- perspective from his years as a Sydney alumni with an economics
born Slater has played for management consultant with and econometrics degree. SFX’s
Melbourne Storm since 2003. PricewaterhouseCoopers. sporting legends have included
David Beckham, Greg Norman,
Pat Rafter and Tim Cahill.
SEPTEMBER/OCTOBER 2017 | 22 | WWW.FRANCHISEBUSINESS.COM.AU
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