Delivering an innovation culture - How Fastway Couriers is future proofing franchisees - Amazon S3
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ISSUE 53 EDITION 1 2018 Delivering an innovation culture How Fastway Couriers is future‑proofing franchisees Marketing transforms Hire a Hubby’s business Inside this award- winning program Getting your social media presence right Five things franchises need to know OFFICIAL JOURNAL OF THE FRANCHISE COUNCIL OF AUSTRALIA thefranchisereview | i
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Contents 2 FCA Chair heralds a new and 38 Innovation future‑proofs brighter future for franchising Fastway Couriers franchisees By Bruce Billson, Executive Chair, and business Franchise Council of Australia An interview with Richard Thame, Managing Director, Aramex Australia 4 FCA appoints Mary Aldred and New Zealand as new CEO By Bruce Billson, Executive Chair, 43 Understanding the challenges Franchise Council of Australia that energy costs present to franchisees in the current 6 How marketing can market transform a franchise: Article provided by The Energy A Hire A Hubby case study 6 By Caragh Welford, Marketing Director, Hire A Hubby Alliance 47 Creating a mentally healthy small business 11 Setting your franchisees up Article provided by the Victorian for local marketing success Small Business Commission By Karin Ingram, Marketing Manager, Kwik Kopy Australia 50 The five pillars of digital business growth 17 Five things franchises need By Tim Levy, CEO, Tim Levy and to know about social media Associates marketing By Steven Donald, Chief Strategist, 53 2018 International Pure Social Franchise Association Convention wrap-up 20 Partnerships the icing Highlights from the FCA delegation’s on the muffin for iconic journey to the IFA2018 20 Australian brand Natalie Brennan, General Manager, 56 FCA Events Muffin Break shares their success A calendar of upcoming member events 25 Keep us out of the media By Damien Gooden, CEO, HR Central 59 What the CFE means to me: professional growth and 30 What can franchising learn opportunities from Uber? By Andrew McAllister, SilverChef By Maija Kerry, Special Counsel and Franchise Relationship Manager Nick Rimington, Senior Associate, – Southern, SilverChef Hospitality Norton Rose Fulbright Australia Equipment Funding 35 Mandatory data breach notification - are you prepared? 35 By Cameron Abbott, Partner and Keely O’Dowd, Senior Associate, K&L Gates PUBLISHER EDITORIAL CONTENT ENQUIRIES DISCLAIMER The Franchise Council of Australia Kim Coverdale, Franchise Council of Australia The views expressed in this journal do not necessarily ABN 17 002 789 988 T 1300 669 030 reflect the views or policies of the FCA. Publication PO Box 2195, Malvern East VIC 3145 E kim.coverdale@franchise.org.au of advertisements for products or services does not indicate endorsement by the FCA. The responsibility T 1300 669 030 ADVERTISING ENQUIRIES for accuracy of information is that of the individual F + 61 (0) 3 9508 0899 contributors, and neither the publisher or editors can E info@franchise.org.au Peter White, Franchise Council of Australia accept responsibility for the accuracy of information that W www.franchise.org.au T 1300 669 030 is supplied by others. Readers should make their own E peter.white@franchise.org.au inquiries in making any decisions, and, where necessary, DESIGN AND LAYOUT seek professional advice. PerryCallan GENERAL INFORMATION 387 Tooronga Road, All material is published at the discretion of the COPYRIGHT East Hawthorn VIC 3123 FCA. Editorial contributions, advertising bookings © 2018 Franchise Council of Australia. All rights reserved. T 03 9822 9629 and artwork deadline information is available by Reproduction in whole or in part without written W perrycallan.com.au contacting the FCA on 1300 669 030. permission is strictly prohibited. thefranchisereview | 1
We all know and love the franchise model of enterprise for what it can deliver: higher rates of success, accelerated progress to profitability, aligned interests and prospects for mutual reward. FCA Chair These are just some of the benefits available to franchise agreement partners. heralds a But it is not enough for us in the franchise community to know how our model of entrepreneurship is driving small business and family enterprise new and success stories across Australia, building world-class brands, business formats and systems, and growing the economy and jobs for Australians. brighter The relentless current commentary about specific aspects of select businesses in the franchise sector is being bracketed with sensationalists future for and fuelling ill-informed assertions that these specific failures relate to the franchise business model itself rather than enterprise-specific circumstances. franchising This heightens the need for us all in the franchise community to be on the front foot, sharing the things that we know and love about franchising. We need to tell our stories, share franchise successes, highlight the comprehensive regulatory and dispute By Bruce Billson, resolution framework, always keep an Executive Chairman, eye on our standards and compliance performance, lift and acknowledge Franchise Council of Australia best practice amongst our membership and always recall that successful franchisees are the foundation for our sector’s sustainable success. This also means respecting and empathising with the small business people, and those who depend upon them, for experiences and outcomes that have not been what they had hoped for and what may not have been the best application of the franchise model in all its elements. What can we learn and how might we all improve? That’s why the FCA is as keen as any party to identify, understand and see addressed any specific shortcomings in 2 | thefranchisereview
Our new initiatives aim to support franchising and drive economic and entrepreneurial success. The FCA is ‘turning up’, taking decisive action and getting on the front foot. individual business conduct that may have unit or the reliable exercise of sound due and associated fair dealings and dispute contributed to the failure of a franchise diligence, market evaluation or commercial resolution mechanisms would also be business beyond the challenges and judgement. worthwhile and timely, given some of the rivalries of a highly competitive market. But what we can do is work even careless commentary and sniping that is We need more entrepreneurs in harder to ensure that any lack of success harming credible and well-run franchise Australia, not less, and a poor experience does not arise as a result of: businesses, their employees, stakeholders can certainly harm the more business- • A lack of awareness of, or attention to, and the Australian economy. minded people prepared to invest in and the regulatory framework; Such an inquiry would seek to identify commit to their own enterprise. • Poor knowledge about or lack any deficiencies or gaps in this extensive To falsely frame individual business of access to available support, due to regulatory framework with the view to factors and circumstances as the premise inadequate information about the nature recommending any necessary regulatory for proclaiming the entire franchise model of franchising and its diversity; change, agency operations, public of entrepreneurship is ‘broken’, as some • Insufficient recognition of the need education and awareness campaigns or commentators are choosing to do, is for due diligence; or industry-led initiatives, having considered a recklessly causing sector-wide harm, • Some skill or know-how deficiency thorough assessment of the likely impacts. reputational damage without justification, that we are in a position to address by way Meaningful outcomes from such an and impeding the capacity of franchising of sector-specific training, professional inquiry would assist in ensuring that to continue to lead economic and development or networking opportunity. Australia maintains its reputation as a employment growth. The FCA offers guidance to leading economy in which to develop With the challenge of business prospective franchisees about whether and deploy the franchise model of ownership and management, cost and running their own business is right for entrepreneurship to the benefit of margin pressures in many segments, them and what kind of enterprise might franchisees, franchisors, stakeholders, dynamism in the market and the need to best align with their goals, ambitions, consumers and the broader community. constantly revitalise and refresh the ‘offer’ skills and lifestyle expectations. This These are just some of the FCA’s in the face of competition, new concepts, ‘eyes open’ introduction is supported by current leadership agenda items and the and changing consumer expectations, a full disclosure ethos in the franchising bold and forward looking next steps we good franchising relationships see the regulatory framework that the FCA seeks are taking to ensure an even brighter franchisee and franchisor combine their to enhance with further information, future for franchising. strengths to collaborate for success. training and support around factors that Our new initiatives aim to support Not all businesses face and can go beyond base legal compliance, and franchising and drive economic and overcome these challenges well to sustain guidance to available dispute resolution entrepreneurial success. an advantage, remain competitive and avenues. The FCA is ‘turning up’, taking decisive continue to delight customers without The FCA leadership agenda does action and getting on the front foot. performance improvement or innovation. include initiatives to help discern between We, the people who most believe in No-one in the franchise community franchise systems that are exemplars of franchising, know of its strengths and wants to see a franchise business fail, the franchise model of entrepreneurship benefits, can support more franchise and there are many factors well outside and those with work to do to reach this businesses to be exemplars of this best the control of regulators, law-makers standard. model of entrepreneurship, to ensure and industry associations. At the FCA, This is useful information for intending it continues to deliver enormous small we are cognisant that we are a member- franchisees, financiers and franchise business ownership, economic vitality and based industry association and not a brands to know where ‘better practice’ can employment benefits well into the future, regulator, commercial advisor or ‘umpire’, be found and what is required to improve just like franchising has done for decades or oversight agency with investigative or extend in this regard. An objective and as a part of Australian life. n powers. evidence-based examination into the The FCA cannot ensure franchise utility, awareness and effective application business success, viability in every business of the Franchising Code of Conduct thefranchisereview | 3
FCA appoints Mary Aldred as new CEO By Bruce Billson, Executive Chair, Franchise Council of Australia The Franchise Council of Australia is delighted to announce that Ms Mary Aldred has been appointed as CEO, commencing on 3 April, 2018. Mary was selected from a top-class collaboration, strong advocacy for the in relation to commercial and member field of candidates for her extensive franchise sector and pursuit of key FCA engagement outcomes. An early task experience across government, industry strategic objectives. is to lead a review and refinement of and the corporate sectors and brings The FCA is excited to bring her breadth our strategic plan to sharpen the focus a very strong focus on membership of experience, success and leadership to on key objectives and to make sure engagement, stakeholder collaboration the organisation, our membership and the the organisation is structured in a way and effective advocacy. She leaves the broader franchise community. that best support the delivery of these Committee for Gippsland after many “The role of CEO at the Franchise objectives and priorities. successes in her seven years as CEO, Council of Australia presents a once in I am confident the franchise community including attracting strong government, a generation opportunity to work in the will quickly gain an appreciation of Mary’s business and community support through engine room of the national economy. capacities and significant ‘value-add’ to effective and engaging advocacy, There are transformational challenges and the FCA and rationale for her selection building a growing membership base that opportunities presenting to the industry. from a strong collection of short-listed includes several franchise businesses and Sector confidence, strong advocacy, candidates. We have good reason to be establishing strategic partnerships that a focused and engaged membership confident about the future and the ever position the organisation for long term elevating industry standards and improving ‘value-add’ the FCA contributes growth. developing the industry’s reputation as an to the franchise community and our Having left school at 15 to work in her employer of choice will be early areas of sector’s strengths as the best model of parent’s small business, Mary brings a real focus in my new role,” Mary said. entrepreneurship. n life understanding and genuine affinity “The industry is about people, and with small businesses. She understands I want to drive a renewed focus on the the operational and financial commitment mums and dad working small businesses “The role of CEO at the families make in small business, along to create jobs, young people in our Franchise Council of with the passion for entrepreneurialism. industry starting their first job, and building Australia presents a This perspective, combined with her regard and recognition for a sector that executive experience, resourcefulness and contributes $146 billion to the Australian once in a generation success in effective member organisation economy,” she said. opportunity to work in leadership means that the FCA will benefit The Board and I have set some the engine room of the from Mary’s strong focus on membership clear performance expectations and national economy” and partner engagement, stakeholder accountabilities for Mary, particularly 4 | thefranchisereview
FIND OUT WHY SNOOZE WINS AWARDS FOR FRANCHISE PARTNER SATISFACTION Choosing a tried and tested franchise When considering buying a franchise, finding an established and recognised brand is often the key to securing success. Established leading franchise brands offer investors a tried and tested business model, supported by years of experience within the marketplace. Larger franchises create their own momentum by attracting new customers and fresh interest in the brand. With 91 stores, Snooze is a leading brand in the Australian marketplace, both in terms of size and reputation. “In my franchising history, I have never seen as many associated people, either direct employees or franchisee employees, who have wanted to get involved in the business.” Simon Beaty, Managing Director – Snooze Strategic marketing and adapting to trends Any given marketplace can change significantly over time, meaning brands must evolve to meet these challenges. Strategic marketing plans allow brands to plan ahead and maintain optimal performance. Changing market trends, however, may call for a shift in planning or reconsideration of marketing tactics. It is not enough to rely solely on being a recognised brand – attracting, converting and retaining new customers is vital to any marketing plan. So, how does a franchise take all of that brand strength and convert it into sales? Snooze achieves this by maintaining a high-profile multi-channel marketing program that supports the national franchise network. Its multi-million dollar advertising campaigns include TV commercials, print ads, social media and ongoing updates to its award- winning website. This is where the Snooze strategic marketing plan – which has been proven to work on a national level – comes into its own. Category kings and industry leaders Ongoing support for continued success Recognition as an industry leader in franchising is attained When you take powerful customer brand recognition and maintained through a combination of important right across Australia and combine it with training business systems. Elements such as strong marketing, programs and support, you can leverage this strength buying power of a group and specialised services can for your own franchise. Snooze provides a 4-week achieve a competitive advantage over other brands. program, including IT and operational training, to ensure Capitalising on these brand strengths can prove to be the franchisees are knowledgeable on product and sales, plus difference between strugglers and leaders in a category. you will have access to a Business Development Manager Snooze continues to be an industry leader, ranked within and the Snooze Support Centre for ongoing. the top 5 for mattress and bedroom furniture sales in For more information about becoming a Snooze Australia. The Snooze brand has also been recognised Franchise Partner, visit snooze.com.au/franchising in the Top Franchise ‘Top 10’ awards since 2010, winning first place in its franchise category in 2016. It’s that top- of-mind awareness with franchisers and customers alike that makes Snooze such an attractive prospect for anyone looking at franchise opportunities. Beaty says, “The bedroom is our core competency, and Interested? Call Bettina Davis on 0423 077 844 from a Snooze store and a Snooze bedding perspective, or email her at bettina.davis@snooze.com.au that’s where our focus is.” IT’S AMAZING WHAT A LITTLE SNOOZE CAN DO www.snooze.com.au/franchising thefranchisereview | 5 W218535
A HIRE A HUBBY CASE STUDY How marketing can transform a franchise By Caragh Welford, Marketing Director, Hire A Hubby 6 | thefranchisereview
Hire A Hubby was awarded the Franchise Council of Australia’s Excellence in Marketing award in 2017. Marketing Director, Caragh Welford, discusses their award-winning marketing program and how it transformed Australia’s largest handyman business. At the time I joined Hire A Hubby in 2014, the business was undergoing a digital and business transformation. It was an exciting time to join the team with many new things on the horizon, and I soon realised that our marketing program would need to evolve accordingly. Hire A Hubby had spent the last few years developing an end-to-end franchising solution to drive efficiencies, collect better data and improve support for the network’s almost 300 franchisees. Realising this system had application industry wide, it would eventually be launched to market as Franchise Cloud Solutions in 2017. By July 2014, adoption of the system had hit 90 per cent, which meant we suddenly had access to much more comprehensive data about our franchisees than we had ever had before. We were now able to pull reports about leads, jobs, quotes, time spent, financial results and much more, enabling us to easily identify trends and patterns across our whole franchisee network. Of course, this data is a gold mine - especially for a marketer. When analysing that data, we realised that most franchisees were working on much larger or more complex jobs than simple handyman work. These included full kitchen and bathroom renovations, preparation for sale, pergolas, tiling and painting. Many of our Hubbies were working closely with strata managers, property managers and real estate agencies on repairs and maintenance, or office fit outs. thefranchisereview | 7
Hire A Hubby CEO Brendan Green and Marketing Manager Caragh Welford (centre) accept the FCA’s Excellence in Marketing Award for 2017 “Hire A Hubby continues to go from strength to strength and I have no doubt that marketing has played a key role in that. If you want to change your business, you need to change your marketing.” A brand perception The importance of house, which saved us tens of thousands mismatch quality leads of dollars per annum. This allowed us to fund the new website redevelopment At the time, Hire A Hubby still largely When we first began to assess how we as well as free up additional funds in the had a reputation in the market as a basic would go about repositioning the brand marketing budget. Because the marketing handyman service, undertaking more and the benefits, we already knew there budget is drawn from the ad levy of simple jobs such as hanging up pictures, was significant room for improvement in franchisees, we didn’t want to increase fixing cabinets or hanging doors. We the quality of leads coming our way. the levy, but knew that we would need quickly realised there was a gap between Many of the leads that Hire A Hubby more money to fund our ambitious the work franchisees were actually doing generated came through third party marketing program. By finding efficiencies and the perception of the work they could websites such as comparison websites throughout the course of the program do. and search directories. We found that the and switching gears when needed we We realised that these misconceptions nature of those leads was poorer in quality were able to achieve more without the could prevent Hubbies from attracting as typically quotes were assessed on price franchisees needing to spend any more leads for these larger and more complex rather than quality. It was difficult for our than they already were. jobs. We could tell from the data that franchisees to compete and they would The new digital strategy and digital these jobs led to more repeat business and end up spending a lot of time quoting channels launched in November 2015. To generated higher revenue and margins, so on jobs which wouldn’t convert. Or if the complement the new digital strategy we it was critical that we could help Hubbies quotes did convert, the margins were also began to invest in public relations to attract this work. lower. reposition the Hire A Hubby brand. We As part of our analysis, we surveyed We recognised that if we could partnered with a PR agency who used the our franchisees in June 2015 to find out reposition Hire A Hubby as a higher quality results of our Hubby survey to develop PR more about how they work. The findings handyman and tradespeople service, angles for media stories throughout the of the survey further revealed the gap while simultaneously boosting our digital remainder of 2015 and into 2016. between perception and reality, and also presence, we could reduce our reliance revealed some interesting insights about on comparison websites and search Buy-in proved critical how the brand is perceived by customers. directories, and instead rely on our website It was extremely important for us to Many customers were feeding back and digital channels as the primary lead get buy-in on the new marketing program. how much they valued Hire A Hubby generators - ultimately generating higher We knew that it could potentially face for our superior quality workmanship quality leads directly to us. some backlash from franchisees due to and customer service. Many franchisees An investment in digital a lack of understanding around what we reported the many ways they added extra were trying to achieve. In particular, we value through identifying unforeseen To attract direct leads we needed to anticipated a reluctance by franchisees for problems while on the job - such as rotting completely overhaul our digital strategy us to spend a large proportion of the 2016 timber, exposed asbestos or white ants. to ensure that all our digital channels were ad levy on national marketing efforts and They were also often engaged to ‘fix the lead generating. not just local area marketing efforts. fixing’ through fixing jobs from other We decided to develop a new website On top of that, our marketing team tradespeople. and invest further in SEM and SEO. We was relatively new and could be perceived So, it became clear to us that there was switched to a new digital agency to as coming in and changing everything or a significant opportunity to reposition the manage this - allowing us to develop trying to fix things that weren’t broken. Hire A Hubby brand as more than just a a more integrated and transparent The website had been redeveloped basic handyman service. We wanted to approach. only two years prior so we knew that focus on the diversity of jobs that Hire A We redesigned our eDMs to make recommending that it be redeveloped Hubby could complete for customers as them mobile responsive, with content and again would be controversial. Digital well as highlight the quality workmanship calls to action geared around our new knowledge was also limited across our and superior customer service that Hire A brand positioning. We also repositioned franchisee network, so it was important Hubby offers. Ultimately the goal was to the content for our social media channels that we could explain why things like generate higher quality jobs and leads for in line with our new strategy. mobile optimisation, SEO or SEM were our franchisees. We decided to bring Facebook in- 8 | thefranchisereview
Hire A Hubby’s marketing program delivered higher quality leads for franchisees important to generate leads and support Hire A Hubby’s presence there. The ban their businesses. was accepted by franchisees as were Ultimately our goal was to take all able to demonstrate the great results stakeholders, especially the franchisees, achieved across our other channels. on the journey with us - to keep them Our franchisees were also noticing a engaged and committed to the marketing difference in the quality of the leads program’s success. We set out to they were getting, which really communicate well and often, with the helped with getting the ban over purpose of educating all stakeholders the line. on why the change in strategy and Hire A Hubby continues to go investment was worth it. We also set out from strength to strength and I to regularly update them on progress and have no doubt that marketing has results. played a key role in that. If you want to change your business, The results you need to change your We were blown away by the results marketing - it just goes to show of the marketing program within only 12 that an ambitious marketing months. We exceeded our KPIs across program can pay off. n every channel. We saw big shifts in how we acquired customers. From 2015 to 2016 we were able to increase acquisition across every channel by 20 to 30 per cent, except third party referrals which decreased by over 60 per cent - a great result in line with our strategy. We also achieved excellent results from our PR program with nearly 200 pieces of coverage acquired throughout January to December 2016 with a total reach of over 23 million people. We found that our PR results were contributing to website traffic and therefore jobs acquired directly rather than through third party websites. We hadn’t expected the turnaround from our reliance on third party sites to our digital channels to occur so quickly. It was a welcome surprise to see we were achieving what we set out to do in less time than expected. What this meant was that we were able to bring forward the process of completely phasing out third party referrals. We banned franchisees from listing on third party websites, completely removing By analysing the data, Hire a Hubby found most franchisees were working on much larger or more complex jobs than simple handyman work thefranchisereview | 9
Manageyour Manage your print. print. Anywhere, Anywhere, anytime. ZenithHub Zenith HubOnline OnlinePrint PrintManagement Management can can save save you time and help controlyour control your brand. brand. Create Create Publish Manage Manage Track Publish Track CREATE PUBLISH MANAGE TRACK CREATE PUBLISH MANAGE TRACK • A system tailored to • View instant proofs for • Order 24 hours a day/365 • Track your orders and • A system tailored to • View instant proofs for • Order 24 hours a day/365 • Track your orders and your requirements immediate job submission days a year ship to multiple addresses your requirements immediate job submission days a year ship to multiple addresses • An online library of your • Eliminate human error and • Save time on repeat orders • View print history and • An online library of your • Eliminate human error and • Save time on repeat orders • View print history and entire print catalogue ensure brand consistency spend reports entire print catalogue ensure brand consistency spend reports ToTolearn learnmore, more,book bookaaFREE FREEconsultation: kwikkopy.com.au/zenith-fca consultation: kwikkopy.com.au/zenith-fca Or call our team on (02) 9967 5500 Or call our team on (02) 9967 5500 10 | thefranchisereview kwikkopy.com.au kwikkopy.com.au
A GUIDE TO LOCAL AREA MARKETING (LAM) AND HOW TO HELP FRANCHISEES GET THE BEST RESULTS FROM THEIR LAM Setting your franchisees up for local marketing success By Karin Ingram, Marketing Manager, Kwik Kopy Australia With more than 35 years in the business, Kwik Kopy Australia recognises the importance of local area marketing to each franchisee’s success. These days, Kwik Kopy franchisees can be found embracing the world of posters and signage in addition to print, design and marketing services. Investing in a franchise gets a business marketing plan before they even launch off to a great start with instant brand their new site or territory. Local area recognition, but it’s important to give your marketing activity can be built into the franchisees ongoing marketing support overall strategy as a new owner defines to help grow their customer base in their their short and long-term goals. local areas. Marketing is key to creating awareness, Leverage national campaigns attracting clients and building loyalty so As a franchisor, you have a that your franchisees can run a profitable responsibility to help your franchisees KWIK KOPY CASE STUDY business and feel motivated to achieve have all the promotional resources needed Over the past two years, Kwik Kopy has their goals. Remember, your franchise to unleash the full potential of their leveraged our national fund to subsidise owners will have varying degrees of business. When national campaigns are the local components of the national experience when it comes to promoting a running, make artwork such as posters promotions, giving the franchisees a business. A focus on local area marketing and point of sale material available for 50 per cent discount on printing and helps to level the playing field and set each franchisees to promote the campaign mailing costs for unaddressed and franchisee up for success. locally. You can also consider subsidising addressed mailers in their local area. This has helped us achieve our biggest some of the local area activity from your Engage your franchisees national budget. Remember, the larger the participation in marketing activity ever, resulting in double the number of bulk from the get-go franchisee engagement then the greater mailers distributed. Our franchisees The first step to maximising your your marketing reach and brand presence are seeing the benefits of increased franchisees’ local area marketing activity across Australia. promotion in their local areas! is to ensure they have a business and thefranchisereview | 11
Create an annual plan Support the all-important At the end of the day, your brand is follow-up only as strong as your entire group of Having a marketing plan in place franchisees. By providing your franchisees gives the entire franchise organisation a Follow-up is essential for increasing with the tools they need to successfully shared vision and lets your franchisees conversion rates so make sure your roll-out local marketing activity, helps know that you’re serious about their franchisees have all the support they need. maintain brand consistency as they build a success. Circulate a copy of the plan to Leads should be responded to quickly, so profitable business in the local community every franchise owner so that everyone providing scripts your franchisees can use and take their success to the next level. n has all the information they need and will help increase their chances of success. knows exactly what is planned at any Consider investing in a head office person given time. Send out regular updates in who can follow up and set appointments monthly newsletters and other internal for your franchisees if necessary (and communications to keep everyone in the applicable to your business). loop and motivated throughout the year. Remember, communication Use a marketing portal for is key easy access to materials Good communication is essential to Making your campaign materials delivering an effective marketing strategy. accessible via a centralised marketing Take the time to thoroughly explain each portal delivers business benefits to the upcoming campaign and provide physical franchisor and franchisee alike. It ensures samples of marketing material to get that every franchisee has the materials the buy-in of your franchisees. Provide KWIK KOPY CASE STUDY they need with the peace of mind that feedback on campaign effectiveness and Our state-of-the-art online print there will be brand consistency across results to help your franchisees understand management solution Zenith Hub, the entire franchise network. A marketing what has worked best in reaching their allows us to load assets for all national portal also saves each franchisee time local customer-base (and encourage promotions. It’s a fantastic tool for storing with the ability to order online and future participation in campaigns). Case all the relevant marketing collateral download artwork to have printed at studies from other high-performing for each campaign in the one place. their local printer. Flexibility is an added Posters, banners, email signatures, social franchisees are also effective in keeping media assets etc. are all accessible for bonus, allowing for customisation so your stakeholders engaged. franchisees to download and print in- that your franchisees can target each house at any time. This ensures brand customer; from a receptionist in the CBD consistency as well helping to give our to a business owner in the suburbs, each campaigns a wider reach at a local level! campaign can have a tailored approach. 12 | thefranchisereview
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SPONSORED ARTICLE BOOSTING FUTURE BUSINESS OWNERS The Boost Juice story is well known and embodies the entrepreneurial spirit that has seen it shake up the Australian wellbeing industry. It’s with no surprise that this spirit has filtered into Boost Juice stores, where the brand has seen three of its team members (internally known as Boosties) transition to owner operators in the last six months. Boost Juice was built on the ethos of having When the opportunity arose to own her on Boost employees and franchisees who are extremely store in Green Hills in partnership with the Dormers, passionate about the Boost brand and can convey Johanna knew it was an opportunity she needed that passion to their customers. After 18 years of to jump on. growth, Boost has now opened 283 Australian stores and in February opened its 208th international store in a new market for the brand, Bangladesh. “Boost is a brand whose values really align with my Beginning her Boost journey at the age of 16, Johanna own and one I’ve loved since a young age. The simple Brecard quickly took on a team leader position within philosophy of delivering an amazing product to our her first two years. After a short stint living overseas, customers and have them leave feeling just that little Johanna returned to a business manager position bit better is something that really resonates with me,” working for Boost Central Coast franchisees Tony and said Johanna. Cheryl Dormer. The Dormers saw Johanna’s devotion and potential and awarded her the area manager role for their three stores. 14 | thefranchisereview
Zachary (Zac) Jones has long been passionate growth within the company and Boost’s eagerness to about owning his own Boost store. He spent approve new and passionate franchise partners who years tenaciously working towards his goal bring fresh ideas to the brand. through numerous roles at Boost Craigieburn and When asked what advice she’d give to other Boosties Broadmeadows. In December 2017, the Boost looking to purchase their own stores, Johanna Support Centre assisted Zac in transitioning from recommended that they set both financial and Boostie to the new owner of Boost Forest Hill – a development goals. When the opportunity arose store which also debuted Boost’s new store design concept. Zac’s concept store is quite unique and is another way Boost Juice continues to be innovative. The Forest Hill store engages customers with its illuminated graphics, bright colours and cheeky messaging. In a first of its kind, the store debuted Boost’s digital menu boards, on-trend new uniforms and USB hook-up stations to keep customers entertained whilst waiting for their smoothies and juices. Boost’s new store design has been positively received by their current partner network as well as applicants coming through their franchise recruitment process. With numerous stores scheduled to undergo lease renewals and refurbishments in 2018, Boost’s new look will soon debut in each Australian state. The brand’s 284th store is scheduled to open in Mount Gambier in April. Boost appeals to new franchise partners by providing for her to enter into the partnership, she started a trusted business model while simultaneously to look at the Boost stores she had worked in for offering outstanding support in digital marketing, 14 years differently. Johanna was eager to shadow customer relations, operations, leasing, IT, human the Dormers, learn the back-of-house systems and resources, franchising and product and supply. As processes and strengthen her areas that required part of the franchise application process, Boost improvement. She also recommended that Boosties provides new partners with a comprehensive three keep an eye on any new and existing opportunities week in-store and back-of-house training program that become available throughout Australia. with their Learning & Development team. With six Boosties overall having progressed to Yash Soni also worked as a Boostie for two years franchise partners, Boost’s Franchising department in Sydney. When the opportunity presented itself are eager to see this number grow. They are currently to own a Boost in Darwin, he jumped on a plane to in discussions with three additional groups of become a part of the brand’s story. “It was a huge Boosties, who may be interested in the brand’s travel risk moving from Sydney to Darwin but seeing centre and train station opportunities, having seen what I am achieving at the Casuarina store with the 12 Caltex and 5 BP stores already in operation. support of Boost is truly inspiring,” says Yash. He describes his training as “a motivating experience that gives you a feel for the brand and what it stands for. You leave feeling motivated and wanting to excel in your own store”. A common theme between Johanna, Zac and Yash With the release of its new store designs and is their aim to perfect their first stores and become continuous exciting projects, Boost remains multi-site franchise partners in the future. Their the food retail brand to watch in 2018. journeys are a reflection of the opportunity for thefranchisereview | 15
Is it your turn to win a MYOB FCA Excellence in Franchising Award in 2018? This year, franchising excellence will be recognised and rewarded in the following categories: Australian Established Franchisor of the Year Australian Emerging Franchisor of the Year International Franchisor of the Year Excellence in Marketing International Franchising Franchise Innovation Franchisor Social Responsibility Supplier of the Year Entries open 12 March to 11 May. To nominate for the Awards, visit: www.franchise.org.au/awards-2018 16 | thefranchisereview
Five things franchises need to know about social media marketing By Steven Donald Chief Strategist, Pure Social Social media is unprecedented in its ability to provide franchisors and franchisees with an all-encompassing platform for brand promotion, customer engagement and collaboration for business success. With the ability to measure the success of social media efforts in real‑time, franchisors and franchisees have never been better placed to target their marketing endeavours. While there are many social media Multiple locations, establish clear social media guidelines, channels, Facebook and Instagram 1 both for their own efforts and for those one message offer the most sophisticated in terms of of franchisees. It can be a challenge for targeted advertising, publishing tools and In today’s social world, the effective franchisees to create content that is in line overall effectiveness for multiple location, franchisor is faced with the mammoth with the brand’s overall messaging and at collaborative social media marketing. task of co-ordinating a consistent brand, the same time relevant for their individual Whatever social media platforms both through traditional media channels location. Most franchisees are not you choose, there are some common and in the fast-paced, two-way, digital experienced marketers and social media considerations to help maximise your environment. Bespoke content needs to proficiency will vary wildly from franchisee social media marketing success. be created for each social channel, and to franchisee. franchisors need to monitor how that Franchisors should decide if they will content is disseminated for each franchise be in total control of social media or if their location to ensure brand consistency is franchisees can participate and to what maintained. If individual franchisees are extent. By establishing clear guidelines, permitted under the franchise agreement robust and consistent brand material to manage their own social media, they and documented procedures on where face the challenge of trying to grow a responsibility lies and for what, a level following for their location while adhering of consistency and effectiveness can be to their franchisor’s guidelines established for the benefit of the entire Either way, the franchisor should franchise group. thefranchisereview | 17
Pay to play 2 3 4 Engage, don’t sell (reach and advertising) Is it working? Social media posts in general should The most important thing ROI on social media has received a not be “salesy”. Typically, content (posts) to understand is that Facebook fairly bad rap over the past few years, but should fall into four distinct categories: (and Instagram) are “pay to play” steadily that is changing. brand posts; engagement posts; environments. Organic reach, the Vanity metrics such as likes and informational posts; and finally, sales amount of people that see a brands followers, contrary to popular belief, posts. message, has been declining steadily, are relevant to the overall social media The ratio of these post types and rapidly, for the past five years. Real strategy, but they must be genuinely creates the “tone” or “voice” of the world organic reach for businesses on acquired. Paid third party services social strategy. Establishing a library Facebook is between 10 per cent and promising to grow your follower base and schedule of content that fits these 20 per cent of a page’s follower base. It should be avoided as they offer very categories is extremely important. is quite frankly not worth the effort for little valuable return on investment and Typically, the franchisor domain is most small to medium businesses. can damage your social media page solidly within the brand and sales post A strategy to combat this is that irreparably. Gaining followers through categories, however it can extend to every piece of content published should reputable paid page building, paid brand the other post types; this is typically have a paid “boost” applied to some awareness campaigns, social media a measure of the franchisor’s control degree. This provides the additional competitions and loyalty programs are over content. For local engagement advantage of targeting exactly the valid and recommended methods of and follower growth it is advisable for desired audience for that business growing a page’s presence. the franchisee to have a hand in the geographically and demographically. It is The ROI of social media depends on engagement, informational and to some virtually impossible to do this manually the goals and objectives of the franchisor degree sales posts, depending on the and API (programmatic) automation is and franchisee. Most importantly franchise agreement. required. everything should be tracked, measured It is important to create a “story” The Facebook (and Instagram) and reviewed regularly; this allows for with a natural ebb and flow to the platforms are massive “Big Data” adjustments to the overall strategy. information. Too many sales posts will machines, with the ability to find Reporting tools allow for the investigation put off prospective followers, too many lookalike audiences of current customers, at a macro franchisor level and a micro engagement posts and the effectiveness remarket to existing customers and scale franchisee level for complete transparency of the marketing channel will diminish. from a local level to a national level with to examine where and what is working, The most important thing is striking everything in between. By using multiple ultimately allowing for effective overall and the balance that is comfortable for ad formats, objectives and to interface long-term marketing decisions. franchisor, franchisee and their target with search advertising and websites, audience. the possibilities are limited only by the Most importantly, 5 Social media posts create the “invisible franchisor’s vision. create a unified, positive salesperson” and establish a trust customer experience network when prospective customers are Whether you have two locations or researching a brand to make a purchase 200, social media can be challenging on decision or retaining existing customers’ either side of a franchise agreement. The loyalty. This digital footprint and social public should see one uniform brand. proof is the foundation to a successful By employing good planning, good social media strategy. practices and good people all players can ultimately sing the same tune in harmony. It is then that franchisors and franchisees can deliver their customers a seamless experience. n While there are many social media channels, Facebook and Instagram offer the most sophisticated in terms of targeted advertising, publishing tools and overall effectiveness for multiple location, collaborative social media marketing. 18 | thefranchisereview
BRAND LEVEL SOCIAL MEDIA WITH LOCAL CUSTOMER FOCUS. How do you keep your franchise social media marketing consistent and relevant, A Complete Service for at both a brand level and a local level Franchisor and Franchisee. while building tangible business results that benefit both the franchisor and franchisee? We Create and Publish Content We manage social media pages, we create and Facebook and Instagram offers an unparalleled range publish social posts for franchisor and franchisee. of content publishing and advertising solutions at all stages of the marketing funnel in one, integrated, platform. We Reply to Your Customers for You Unfortunately, most social media solutions and agencies We respond to customer enquiries on social focus on just advertising, very few provide a total social channels and manage social conversations. media management and marketing service. We Create, Manage and Optimise Advertising We offer a holistic social media management service, We create and manage national and local leveraging our experience working with over a thousand advertising that unifies the objectives of both. SME’s, to provide a structured approach to genuine content, targeted advertising and technology controlled from the We Target Your National and Local Customers franchisor level, while also adding the unique and local We collect and utilise data that is specific to your franchisee flavour. franchise business at a national and local level. Interested to learn more? Provide Reports for Franchisor and Franchisee We provide reporting and advice directly to both To discuss your unique Franchise requirements franchisor and franchisee. and to talk to a business specialist please call 1300 366 379 or visit puresocial.com.au/franchise 1300 366 379 | puresocial.com.au/franchise thefranchisereview | 19
Partnerships are at the core of Muffin Break’s business. Whether it’s generating increased brand exposure, providing franchisees with access to competitively priced products through their suppliers, or offering training and development across the network, this home-grown brand is leading the way in delivering value to franchisees and customers alike through mutually beneficial collaborations. The Franchise Review spoke to Muffin Break’s General Manager, Natalie Brennan, to find out more. Partnerships the icing on the muffin for iconic Australian brand 20 | thefranchisereview
Muffin Break’s branding appears alongside Katy Perry on Sunrise in July 2017 Natalie strongly believes that in the franchise space in which they compete, partnerships can be represented as a perfect triangle. It encompasses the relationships between the franchisor, franchise partners and their suppliers. Each of the businesses thrive when they are committed to supporting each other. “Ultimately, we are all in business to influence our respective markets, and at the core, to make a profit to support each other’s business objectives,” Natalie says. Partnerships with suppliers Natalie cites one example of a partnership which grew from Muffin Break’s relationship with their long-term milk supplier. Lion Dairy had been watching the movement to plant-based milks in coffee and approached Muffin Break with the opportunity to offer an alternative milk to Muffin Break customers in each franchise business across the network. Vitasoy, encompassed under the Lion Dairy umbrella, were trialling soy milk specifically for baristas. When Vitasoy presented this opportunity to Muffin Break, Natalie recalled “a number of our team members in the meeting, who were plant-based Partnerships as a remembers was when she visited her local milk consumers, were outraged at marketing strategy Borders bookstore, there was a Starbucks consistently paying one dollar extra for within the store selling Cheesecake Muffin Break also has taken partnership their daily coffee”. Factory cheesecake. relationships beyond food. They currently A marketing campaign was “All three brands were complementary have a major partnership with Australia’s brainstormed, and the result was the to each other, and didn’t cannibalise each leading breakfast program, Sunrise. “No Charge for Soy” campaign. other,” Natalie said. This collaboration is a highly effective During the initial promotional period, Muffin Break had an opportunity to way to speak directly to the brand’s core Lion engaged franchisees by reducing test the idea of complementary brands demographic. The deal includes a range the price of soy milk. In 2015, Muffin when they were approached by one of of weather broadcasts featuring Muffin Break launched the new initiative across the leaders in children’s playcentres in Break products, on air placements and their 220 stores and have maintained the Australia. This ultimately led to a ground- announcements, plus exclusive offers for ‘No Charge for Soy’ policy every since. breaking opportunity to partner with Sunrise viewers. The camera also regularly Coffee sales grew substantially for the Croc’s Playcentres. crosses over to guests waiting in a Muffin franchise partners. This was the result Croc’s Playcentres were established Break-themed Green Room. of the significant point of difference, in in 2008 by Lawrence Cusdin and Brett It’s the perfect marriage, reflecting combination with an ever-expanding base Aldons. They both have young children a collaboration benefitting these iconic of the consumers of plant-based milks. and were dismayed at the quality of the Australian brands and, just as importantly, The initiative has also grown sales of children’s playcentres they visited – aging a partnership with Muffin Break’s franchise the Vitasoy Barista offer for Lion Dairy equipment, dirty bathrooms and low- partners. As Sunrise goes to air, Muffin and Muffin Break experienced increased quality food and dismal coffee. They knew Break stores all over the country have customer satisfaction from both existing it could be better and built a business that already commenced baking in preparation customers and new customers that delivers on what they wanted for their to serve their mutual audience. strayed from competitors. own children. The concept is achieving great success in its expansion and will The Lion/Vitasoy partnership with Partnerships with other soon be the largest operator of children’s Muffin Break and their franchisees is only established brands playcentres in Australia. The pair decided one triangle of supplier partnerships. Muffin During her time with Muffin Break, to team up with Muffin Break to bring a Break maintains many similar relationships Natalie has also opened a pilot store in the premium cafe bakery experience to each with suppliers that assist their franchisees United States of America. of their playcentres. to operate successfully. Over the past few It was here where she saw how Each new Croc’s Playcentre now years these have included Nutella, Weight well brands partnered together to includes a Muffin Break bakery café, Watchers, Steggles Chicken and Lawsons open up new markets and increase delivering two great brands in one Bread, to name a few. brand awareness. The example Natalie franchise package and reflects Natalie’s thefranchisereview | 21
The partnership between Muffin Break and Croc’s Playcentres has delivered benefits for both brands experience all those years ago in the USA. The Croc’s Playcentres and “Having a branded bakery cafe within Muffin Break partnership is a perfect a children’s playcentre is a huge positive representation of the hospitality and within an industry which has traditionally entertainment sectors collaborating to provided low quality food and service support and build greater awareness standards. We searched for a brand with of each brand. The triangle here also both the personality and fit with our encompasses an opportunity for Muffin current customers’ demographic and Break’s suppliers to expand their business values. Muffin Break was the perfect to new sites, and for Muffin Break to be cultural and quality fit for Crocs,” Mr exposed and gain new customers in the Aldons said. Croc’s Playcentres. Muffin Break is focused on “Having a branded bakery continuously building partnership cafe within a children’s triangles to further build their operations, promote their brand awareness and playcentre is a huge work collaboratively with businesses that positive within an industry share similar demographics and values. muffinbreak.com.au which has traditionally The brand recognises that partnerships are critical to building and growing provided low quality food relationships and profits in this challenging Muffin Break’s and service standards.” retail environment. Even though the perfect triangle model ‘No Charge for The synergy is just as beneficial for is not yet as developed in Australia as in Muffin Break. Soy’ policy helped “We’re excited at the opportunity to the USA, Muffin Break are hoping to lead the market in forming these relationships franchisees grow work with a dynamic channel leader like and further developing the business - thus Croc’s Playcentres. It allows us to be part coffee sales reaching new customers that may have of the growth in leisure centres, creating a never experienced the Muffin Break brand home away from home for the family and previously. n the perfect place for mum to entertain her kids whilst enjoying some quiet time,” added Serge Infanti, Managing Director of Muffin Break’s parent company, Foodco. 22 | thefranchisereview
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