Looking Forward Business sentiment and planning Growth strategies People and performance - Franchise Council of Australia
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ISSUE 68 EDITION 1 2022
Looking
Forward
Business sentiment
and planning
Growth strategies
People and
performance
AUS $6.95 | NZ $7.95
9 772652 123000
ISSN 2652-1237
01
OFFICIAL JOURNAL OF THE FRANCHISE COUNCIL OF AUSTRALIA
The future of payroll compliance
Contents
2 A message from the CEO
has arrived. 4 Australian franchised businesses positive about 2022
6 Franchise Pulse Check Survey finds worker attraction and
retention a growing concern
9 National Franchise Convention 2021-22
10 NFC21-22 Keynote Speakers
11 11 Will Australia move forward after the impact of COVID-19?
12 Culture is a collective
13 NFC21-22 Sponsors & Partners
17 Putting franchisees first for sustainable growth
20 It takes a village:
Navigating franchise businesses through the pandemic
24 Strategic Network Planning for post-COVID-19 growth
www.wagesafe.com.au 29 Cultural diversity helps build business success
4 32 Fast forward: The top 10 key QSR trends to watch in 2022
34 Community purpose key to customer connection
36 Maintaining brand consistency & controlling printing costs
in a franchise operation
38 Innovating for growth
40 Achieving respect at work for all staff
44 Super-secrets to winning the contest for talent
25 47 Pandemic triggers transformation for Clark Rubber
PUBLISHER EDITORIAL CONTENT ENQUIRIES DISCLAIMER
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Level 19, 567 Collins St E editor@franchise.org.au of advertisements for products or services does not
indicate endorsement by the FCA. The responsibility
Melbourne VIC 3000
ADVERTISING ENQUIRIES for accuracy of information is that of the individual
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contributors, and neither the publisher or editors can
F + 61 (0) 3 9508 0899 Peter White, Franchise Council of Australia
accept responsibility for the accuracy of information
E info@franchise.org.au T 1300 669 030 that is supplied by others. Readers should make their
W www.franchise.org.au E peter.white@franchise.org.au own inquiries in making any decisions, and, where
necessary, seek professional advice.
DESIGN AND LAYOUT GENERAL INFORMATION
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thefranchisereview | 1
A MESSAGE FROM THE CEO
A message
from the CEO
Mary Aldred,
CEO, Franchise Council of Australia
The first quarter of 2022 showed less efficient. calendar. The NFC is the first in a series
much more optimism in business than In terms of Australia, our country of national events the FCA has planned
2021 and I attended the IFA Annual is seen as one of most challenging this year that will provide a deep dive
Convention in San Diego, California in economic markets to deal with because into core topics for franchises as they
March to hear from leading international of the cost of labour, red tape and look to consolidate and grow.
business experts and entrepreneurs re commercial leasing arrangements. The Building on the success of the
the post-COVID business landscape. US perception is if you can succeed national webinar program in 2020-21, a
The International Franchise as a brand in Australia, you have good series of informative webinars is planned
Association’s IFA Convention is always chance of making it in the US. to compliment resumption of face-to-
one of franchising’s biggest yearly Feedback to me was to promote that face events in 2022.
events, bringing together the true there will be an Australian management The FCA’s focus on informing and “As Franchise Council of Australia
heavyweights of the international team when launching in the US because educating franchise professionals
franchising community and providing a Australia is so highly regulated it has also recently been expanded
members look ahead throughout
range of global perspectives on the year gives US stakeholders assurance of with the launch of the FCA Academy. 2022, the FCA remains committed
ahead. compliance. The academy provides member to delivering value through
Taking place over the course of Based on the information I gathered organisations with online access to advocacy, education and support
five days, the IFA convention featured and the input from attendees at the learning and development content
countless meetings, seminars, and conference, I am considering forming specifically tailored for franchise
activities and initiatives.”
educational sessions and, along with an international working group for FCA networks, with courses on topics such as
20 other Australian delegates, I tried to members. I will keep you informed and employee compliance, sales and general
attend as many as possible with topics look forward to hearing from those business skills.
relevant to franchising in Australia. interested in this idea. I look forward to working with you all
As well as robust education content As Franchise Council of Australia throughout 2022. n
and the opportunity to engage face-to- members look ahead throughout 2022,
face with the franchising community, the FCA remains committed to delivering
the atmosphere at the convention was value through advocacy, education and
extremely optimistic and attendees were support activities and initiatives.
buzzing with ideas about maximizing Engagement across our membership
business development in 2022. continues to inform the FCA’s policy
A key theme was the use of approach, with committees including the
technology to drive productivity, FCA Franchisee Advisory Committee,
especially in retailing. The main CEO Policy Advisory Committee and
technological challenge in retail post State Chapter Committees providing
pandemic is to build loyalty and better opportunities for members to engage in
databases, mapping purchasing dialogue on key issues and topics facing
behaviour, introducing efficiencies franchising and small business.
without diminishing customer experience With a Federal Election imminent,
and better use of digital messaging. the FCA will continue to engage with
On workforce capacity, a shared view politicians and policy makers to ensure
was that retailing cannot continue to rely the valuable economic, employment and
on unskilled labour that may not see a community contribution of franchising is
future career in retail. Unemployment understood by decision makers.
is at its lowest rate in history in the US We are excited to bring you the
and the minimum wage is lower than National Franchise Convention 2021-22,
Australia (e.g. $20.50 per hour at an the most comprehensive professional
in-and-out burger store) but workers are development event on the FCA’s annual
2 | thefranchisereview thefranchisereview | 3
Financial performance expectations Areas where franchisors are Greatest challenges expected
for the next twelve months providing a high level of support over the next 12 months
Financial performance
Dealing with landlords of my business
Complexity of awards
Vendor relationships
Better and management
38% Landlord issues
Payroll and HR
compliance issues Finding staff
Availability of
About Marketing and goods and materials
the same Much better advertising
36% 11% Well-being of staff
Assistance with accessing
Worse government support programs Customer loyalty
12% and satisfaction
Much worse Risk of further
Technology and systems government lockdowns
3%
Percentage 0 10 20 30 40 50 60 70 80 90 Percentage 0 10 20 30 40 50 60
Australian
The Australian Franchisee Survey by “Finding Staff” (56%) and “The Snapshot of Australian all respondents (48%) indicated their
conducted by FRANdata for the Financial Performance of my Business” Franchisee Survey business employed 2-10 people with a
Franchise Council of Australia confirms (53%). further 34% reporting their franchised
participating businesses
franchised
that a growing number of franchised More than 70% of respondents businesses employed more than 10
businesses saw an income turnaround in indicated they hoped to increase Responses from 1,007 franchisees people.
the closing months of 2021 and further employment numbers over the coming representing 83 Australian franchise The majority of franchised businesses
improvement is expected over the next twelve months. Thirty percent of these systems. (76%) were based in capital cities.
businesses
six months. businesses hoped to employ an additional The survey sample indicated that 69% Franchised businesses also have a
Almost half (49%) of respondents 2-4 people, 21% an additional 5- 25 people of Australian franchised businesses were significant regional footprint with 24% of
expected better trading performance and 3% more than 25 people. operated by men and 29% by women. respondents indicating their businesses
in 2022. The most optimistic industries Eighty (80%) per cent of respondents Whilst the majority of respondents were based outside of state and territory
positive
included convenience stores, retail food found their franchisors supportive over (57%) were born in Australia, more than capitals.
outlets, retail stores, pet services and the past twelve months. 40% were born overseas with India the There is a significant variance in
home services. Thirty six percent (36%) “The fact that a majority of survey second most common place of birth at 15%, average weekly sales across franchise
anticipated conditions to remain “about respondents indicated they felt being followed by China 7% and the UK at 3%. units, attributable to the type of industry,
about 2022
the same”. part of a franchise system provided A high level of education across business structure and the scale of the
The “Risk of Further Government an advantage over operating an franchise owners was evident with individual business.
Lockdowns” was identified as the independent business shows that the 18% holding a tertiary degree and a Higher turnover levels were evidenced
greatest challenge for the next twelve franchising model provides a strong further 27% holding a Post Graduate from respondents working in food-based
months at 57%. This was closely followed framework for small businesses,” said FCA Qualification. 52% of respondents businesses, which accounted for 80% of
CEO Mary Aldred. indicated High School (22%) or Diploma/ the businesses reporting turnover of more
“Since 2018, the FCA has worked Certificate (30%) as their highest level of than $10,000 per week.
Business is looking up in 2022 according consistently with all stakeholders, education. For franchises with sales of less than
to many of the more than 1000 including franchisors and government, The vast majority (73%) of franchise $10,000 per week, 91% were involved in
units were owned by single operators. A
individual businesses representing 83 to improve support for franchisees,
including small business advisory and further 20% of respondents indicated the
non-food businesses which in many cases
were operated by mobile businesses
franchise systems in the first national education services and tighter regulatory operation of 2-3 units and 7% indicated without rental and wages overheads. n
the operation of 4 or more units for their
survey of Australian franchisees. compliance across systems.”
franchise system.
“The fact that being part of a Overall view of support
The survey reflected that 33% of
franchise network has helped many small provided by franchisor over
respondents had commenced their
businesses make it through the pandemic
business in the last five years (2017-2021).
the last twelve months
impacts and restrictions is a strong
indicator that franchising is achieving A further 30% commenced their business
success in Australia,” said Mary Aldred. between 2012 and 2016 and 37% had now
80% of survey respondents indicated been operating their business for more
they were receiving high levels of than ten years. Very
Responses indicate that franchises are supportive
marketing support from their franchisor
typically operated by mature age owners 43%
and 67% said they were receiving high
levels of technology and systems support. with 76% of respondents aged 40 years Somewhat
“Since 2018, the FCA has or older.
supportive
Between 30-40% of the sample 37%
worked consistently with indicated they were receiving high Franchised businesses are a
all stakeholders, including levels of franchisor assistance in the significant employer in the Australian Not
supportive
economy. The employment of more
franchisors and government, areas of dealing with landlords, vendor
than 2 people was indicated by 81% of
at all
relationships, payroll and HR issues 20%
to improve support for and accessing government support respondents. Single operators accounted
franchisees...” programs. for 19% of respondents. Almost half of
4 | thefranchisereview thefranchisereview | 5
Franchise Pulse
Check Survey finds TODAY’S MILK
worker attraction
and retention a
IS NOT NUTTY
growing concern
There has been increase
IT’S ALMOND.
Key challenges being faced by
in small business Australian Franchise Systems
concerns about
attracting and retaining Landlord issues
workers, according to Risk of further government lockdowns
the latest Australian Supply chain issues due to COVID
Franchise Business impacts on workforce availability
‘Pulse Check’ survey. Engagement and satisfaction of franchisees
The December quarter 2021 survey
Financial performance of franchisor
included responses from 51 Australian
franchise brands covering 11,875 individual
Financial performance of franchisees
business outlets (10,594 franchised and
1,281 company operated) and employing
Wellness of franchisees and support staff
63,220 Australians.
The greatest concern or challenge Updating of Disclosure Document
reported was the availability of suitable due to code changes
employees (73%), jumping significantly
from 55% in each of the two previous Other (or general) compliance matters
surveys.
Supply chain Issues (55%) were also Access to finance
materially higher than the 47% and 44% in
the previous two quarters. Franchisee recruitment
The wellness of franchisees and support
staff (42%), franchisee recruitment (36%) Technology
and the availability of suitable support
Availability of suitable people for
office staff (36%) were also in the top five employment by franchisees
key concerns and challenges.
Availability of suitable people for
The most significant fall in business employment by support office
concerns was regarding the risk of further
WANT TO
Employment Relations (workforce
government lockdowns (25%) which management, compliance, complexity, cost)
dropped from 61% in the previous quarter.
The percentage of businesses feeling Percentage of Respondents 0 10 20 30 40 50 60 70 80
GET A SAMPLE?
optimistic about business conditions in the
next six months remains solid at 73%. Only High Very high
8% of respondents were pessimistic.
Respondents anticipated opening 484
new franchised outlets in 2022 across Head to altdairyco.com
their respective networks and were most FRANdata, has undertaken this ‘Pulse Check’ survey for the Franchise Council
likely to expand business in NSW (51%), of Australia (FCA) to provide insights on the status and experiences of the
followed by VIC (23%), QLD (14%) and Australian franchise sector during the December 2021 quarter.
WA (9%). n
6 | thefranchisereview
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NFC21-22
Keynote
Speakers
Bernard Salt AM
Leading
Bernard Salt is widely regarded as one of Australia’s leading social commentators by
business, the media and the broader community. demographer and
Bernard heads The Demographics Group which provides advice on demographic, futurist Bernard
consumer and social trends for business.
Salt believes that
Prior to that Bernard founded KPMG Demographics.
He writes two weekly columns for The Australian newspaper and is an adjunct
optimism and
professor at Curtin University Business School. entrepreneurship
In conjunction with KPMG Australia he hosts a top-rated podcast called “What will characterise
Happens Next” which discusses rising trends and important business issues.
post-COVID society
Simon Griffiths in Australia.
Simon is an engineer and economist turned social entrepreneur.
Will Australia
Driven by a passion to use business to give back, in 2010, Simon had the idea to start a
toilet paper company that builds toilets in the developing world. In 2012, he launched Who
Gives A Crap with a crowdfunding campaign, agreeing to sit on a toilet on a live webfeed
move forward
until he had pre-sold the first $50,000 of toilet rolls. The multi-award-winning launch
attracted global media attention and generated over $1 million of PR value.
Since launching, Who Gives A Crap has tripled in size year-on-year, primarily relying on
word-of-mouth to fuel its growth. In five years, Who Gives A Crap donated more than $1
after the impact
million, reaching a milestone in 2020 of $8.3 million.
Simon is one of Australia’s most prominent social entrepreneurs. His work has been
covered by countless media outlets around the world, including The Huffington Post, MTV
and The Stanford Social Innovation Review.
of COVID-19?
Rachael Robertson
Rachael Robertson (CSP, MBA) is an Antarctic expedition leader, Chief Ranger and leader
with 20 years of ‘extreme’ leadership experience. She is a best-selling author and leadership
guru whose talents are in great demand from leading organisations around the globe.
As only the second female to lead a team to Davis Station in Antarctica she managed a
Bernard’s theme setting presentation shift to if you’re a business migrant. triple and that by the 2030s the cities we
diverse group of up to 120 people, through total isolation, months of darkness, with no
at NFC21-22 will outline how the world Net migration plunged in 2020 and know today will be compartmentalised
way in and no way out. It was a leadership laboratory in the most extreme and hostile
and the way we live has changed and 2021 but is likely to rebound by the start into fully-serviced mini cities and regional
environment on Earth, where most of the theory doesn’t apply.
what that means for Australia to 2030, of 2023. hubs, precipitating a shift in property
In Antarctica she built a resilient and highly successful team based on the foundation that including opportunities for inventive and Similarly, Bernard says Australia’s values.
‘respect trumps harmony’. Prior to leading the expedition Rachael had 16 years’ experience motivated businesses. changing internal demographics, His final prediction?
in a variety of senior operational roles in complex and challenging environments. His forecast, based on history, is that including the escape from cities and Sea change and tree change 2.0 could
highly disruptive global events such as regionalisation and families moving to an mark one of the big social shifts of the
Mark Carter wars and pandemics are followed within area where they can buy a bigger house, 2020s. n
Mark Carter is a director, international keynote speaker, trainer and author. a matter of years by a “celebration of life” will increase demand for goods and
and innovation. services.
He has 24 years’ experience as a global learning and development professional
Naturally, there will be winners and Lockdown has shown workers, Bernard Salt AM is one of Australia’s
including dynamic environments like Contiki and TRAVCorp. He also spent over two
losers, but Bernard says the pandemic workplaces and bosses that many people leading social commentators and
years leading primarily virtual and hybrid solutions across APAC: relevant experience
has created “game changing” events that can be just as effective working from business analysts. He draws upon
for current times.
will have a lasting impact on the way we home and this will have a profound vast datasets to interpret the
Mark is a regular mainstream media contributor including prestigious publications live and do business. impact on the shape of our cities, the overall trajectory of social change
like Harvard Business Review. His specialisation in people and behavior, translates into As a result of our relatively low demand for services and the value in the past and into the future. His
bespoke programs including themes like change, culture, leadership, operations and coronavirus death rate, Australia is of property. Plus, it’s underpinned by presentation at NFC21-22 will be a
client facing skills for the experience economy. perceived as a safe haven, a place of generational shift. keynote event that business decision
His TEDx talk, ‘Paws and Effect: how teddy bears increase value perception’ was the good governance, a good place to invest, Bernard forecasts that the number of makers can’t afford to miss.
movie trailer for his latest book published globally by Wiley: Add Value. to migrate to, to study in, to visit and to people working from home will double or
10 | thefranchisereview thefranchisereview | 11
Culture is
Mark Carter is an international
keynote speaker, trainer and coach.
He has over 20 years’ experience as
a collective NFC21-22
a global learning and development
professional. His TEDxCasey talk
‘Paws and Effect: how teddy bears
increase value perception’ was the
Thank you
movie trailer for his latest book
Add Value. You can contact Mark at
By Mark Carter markcarter.com.au or his book site
Peak performance, productivity and leadership authority addvalue.markcarter.com.au
For a culture to thrive, • Authority – competitiveness where impact of the organisation they work for
people strive to gain personal advantage as they do their own pay packet.
regardless of remote or When a business puts greater focus • Caring – work environments are Thank you to our Sponsors
physical presence, there on behaviours, the results and numbers truly collaborative, warm and built on
The FCA gratefully acknowledges the support of the NFC21-22 sponsors
(the lagging indicators of performance) relationships of solid mutual trust
are four evolutionary tend to follow. Be mindful not to confuse • Purpose – exemplified by idealism, who have made this event possible.
pillars requiring constant strong, directional leadership in creating altruism and trending themes like social
a strong performance culture with ‘micro causes and sustainability
attention. The task of management’ or ‘win at all costs’: both of I’ll be expanding on these themes
leaders is to gel and bond which are beyond out of fashion! and more: such as that magical single
ingredient you want to tap!
individuals (tapping into a Learning & In the son et lumière, experiential
single magical ingredient) Knowledge Sharing signature style ‘CULTURE’ keynote for
P L AT I N U M
If you rewind a decade or two, FCA 2022, I’ll be sharing content and tools
to keep moving them generally HR or L&D were knowledge within my ‘Add Value’ model, (published GOLD
SPONSOR
S O C I A L N E T WO R K I N G
along the culture holders for upskilling and growth. These globally by Wiley) and ‘5C MODEL’ of
SPONSOR NIGHT SPONSOR
evolution pathway. days it’s accepted that great knowledge
lives across the entire tribe. The role of
which culture is a part.
Culture, the fifth and culminating ‘C’, is
HR and L&D (as much as it may include a canvass that business leaders may follow
Evolution of scheduling and owning components – using a variety of mechanisms and tools,
fundamental pillars of continual learning) is also one of encouraging their whole team participate
If your business were an ancient temple knowledge organisers to ensure best colouring in the canvass and driving L A N YA R D E S P R E SS O C A F É K E Y N OT E K E Y N OT E
these four pillars serve like solid Corinthian practice and upskilling loads are shared, the vision and purpose. n SPONSOR SPONSOR SPONSOR SPONSOR
columns keeping the culture roof sound more easily accessed, curated and spread.
overhead. • Learning – exploration, expansiveness,
Now’s a great time to look at which of open-mindedness, curiosity and creativity
your pillars require a little maintenance. are all embraced
• Enjoyment – workplaces are fun,
Thank you to our Partners
Administration The work of the Franchise Council of Australia, including the National Franchise
stimulating and playful (NB. which also
In an ideal world you’ll have clarity
around a playbook of processes. One that’s
translates into learning environments both Convention, would not be possible without the annual support of our Partners.
virtual and live)
clear enough for all to follow, fair enough It’s a curious fact that often when
so everyone is playing by the same rules people are feeling busy, or severely
yet not so complex or convoluted that it challenged or stressed, learning is one of
unnecessarily slows you down. the first calendar activities to be sacrificed.
• Order – methodical environments A learning culture means recognising
where people play by the rules continued personal growth is as important
• Safety – creating environments that as many other aspects and tasks towards
are predictable, risk conscious and people your overall culture and achievement.
feel safe, including psychologically
With more people working Unique
remotely, are you clear with what your As much as we’re in a digital age,
administration and process playbook we’re also still firmly rooted in
looks like? Do people understand what the experience economy.
compliance is from the confines of their Customers and employees
own homes? alike will align and
support brands and
Performance
organisations that
When more individuals have clarity make them go ‘wow’
around their goals, are self-accountable and make them feel
and supported by leaders to help achieve good. Additionally
them, performance tends to take care of we’re seeing a
itself. generation care as
• Results – specifically characterised by much about the
achievement and winning
12 | thefranchisereview thefranchisereview | 13
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It’s Putting
Brand franchisees
Magic. first for
sustainable
growth
Putting franchisees first in a sustainable growth
strategy has proved to be a winning formula for
Rapid Tune, with the automotive aftermarket repair
franchise named as the Australian Established
Get your franchisees Franchisor of the Year for 2021.
to do more marketing. It’s award success that’s been nearly
two decades in the making, starting
from humble beginnings in a small
Sesimi is the foolproof, cloud-based brand office of the first store in Ferntree Gully,
Victoria, in 2003 where Rapid Tune
management platform that protects and grows your CEO, Mark Rippon (right), developed his
franchise brand. Using Sesimi, franchisees can franchising vision for the future.
tailor their own 100% compliant content, at scale for Since then, Rapid Tune has steadily
grown its brand, franchise footprint,
any media channel in a matter of seconds. customer and franchisee satisfaction
scores and revenue. There has been
‘Sesimi provides a vast number of asset a deliberate choice to expand the
templates for our franchisees to access network sustainably, with the brand now
instantly wherever they are to build content operating in 32 locations (30 franchises
and 2 company owned stores) across
within brand guidelines.” Victoria and Queensland, with 22 of
these launched within the last five years.
- Jeff Baars, Chief Marketing and Digital Officer,
Quest Apartment and Hotels
Discover the magic now.
sesimi.com
thefranchisereview | 17service philosophy and range of
products, it promotes the values and
professionalism of our people who deliver
those services every day.
“The connectivity, TVC campaigns
and social media presence have all had
a knock-on effect to our online reviews,
resulting in high levels of customer
satisfaction reflected in our Google
ratings.”
Being named the Australian
Established Franchisor of the Year at
the FCA’s 2021 Excellence in Franchising
Awards provides still more recognition for
the network.
“Winning the FCA Australian Established
Franchisor of the Year award is a great
honour and testament to the amazing
culture we have built together and are
renowned for at Rapid Tune,” said Mark.
“Australian small business owners
have demonstrated their ability to adjust
and adapt during one of the most
economically disruptive periods in history.
“It’s a surreal feeling to be put up on
a pedestal alongside some of Australia’s
top franchisors including [2021 Australian
Established Franchisor of the Year Award
finalists] Chicken Treat, Couriers Please,
Pirtek, and RAMS. I thank the FCA and
A unique culture This has resulted in strong and “Once we are satisfied the prospective underlined by the implementation of the practices. Group-wide communication is commend all award finalists and winners
sustained relationships between franchisee has conducted due diligence Rapid Rune finance product. facilitated through cloud-based software on their outstanding efforts and well-
Having been a franchisee himself
franchisees and the Rapid Tune brand, and the cooling off period has lapsed, we “We realised that aspiring franchisees and mobile apps, which are also used deserved recognition in 2021.
with other brands, Mark had personally
high levels of trust in the Rapid Tune continue to engage with the franchisee with great potential didn’t always have to help capture customer feedback “I am proud to be a part of a
witnessed the systems and processes of
business system and the ability to attract before approval is granted. At the next access to the capital required to attain and deliver training for employees and community that has shown so much
other franchise networks and intimately
and retain the highest quality franchisees series of meetings, we address any business ownership. This not only business owners. bravery, tenacity and resilience and
understood the needs of franchisees. He
to represent the Rapid Tune brand and concerns and answer any questions that restricted individuals from achieving the “Our cloud-based RMS system also proven that no challenge is too great to
set out to create a franchise brand with
further enhance its strong culture and have arisen from the incoming franchisee personal goals and career advancement, enables the head office to undertake overcome.” n
a unique culture and high franchisee
reputation. research and ensure they are fully aware but also robbed the Rapid Tune network real-time analysis and provide immediate
satisfaction.
of the financial and legal obligations of highly skilled and experienced business support as needed for all of our
“Business performance is often
Recruiting for success required of them when purchasing a operators. This led us to create Rapid franchisees. The sophisticated software
measured within spreadsheets, business
As with any successful franchise Rapid Tune franchise business.” Tune’s financing arm to make business delivers valuable data analytics that
systems and KPIs, but what’s often
brand, Rapid Tune’s expansion has been According to Mark, this approval ownership more accessible to the right enable us to pair customers’ most
overlooked are the personal needs of the
built on a strong and structured franchise process ensures: people,” said Mark. needed services with opportunities for
business owner,” Mark said.
recruitment process. 1. The prospective franchisee’s “Through our vendor’s finance franchisees to generate profit and repeat
“Fears and anxieties about business
“90-95% of franchisee candidates personal and professional profile has been product, we have opened doors to business,” said Mark.
performance often stem from what’s
happening in our personal lives. come from within the Rapid Tune assessed to ensure the correct cultural fit deserving franchisees to achieve COVID-19 too demanded innovation,
I’ve learned that you can’t focus on network with the remainder attracted for the Rapid Tune network their dreams of becoming business with contact free vehicle servicing and
performance without taking into account word of mouth. Candidates are attracted 2. The franchisee’s skills and owners. This has also supported the sanitization practices implemented to
the personal and emotional needs of the by our reputation for extensive franchisee experience have been assessed to wider Group’s successful growth and enable customers to have their vehicles
business owner. That was especially the support, culture and personal touch,” produce an initial tailored training expansion objectives by retaining picked up and delivered back home
case throughout the pandemic when we explained Mark. and support program that will most highly accomplished and dedicated in a contact-free manner amongst the
really needed to provide both professional “We will never succumb to expanding effectively benefit the income franchisee: professionals within our network.” initiatives implemented by the franchise.
and personal reassurance for our people.” for expansions sake, selecting the right “When it comes to training and support
Mark outlined the key elements of franchisees for the network always comes one size does not fit all,” said Mark. Innovation and identifying Building the brand
building Rapid Tune’s unique culture as: first. 3. An alignment of expectations has opportunities To build brand awareness and
• A wholly inclusive and supportive “We have a structured step-by- been conducted to ensure the Rapid As part of the rapidly evolving accelerate the expansion of the growing
franchise network with open door access step franchisee recruitment process Tune business system has the potential automotive industry, Rapid Tune is network, in 2019 Rapid Tune launched
to the franchisor and are very particular when selecting to satisfy the incoming franchisees constantly undertaking research and an ambitious television campaign and an
• Getting to know franchisees at a franchisees. We carefully screen perception toward work / life balance, assessing the market to determine which expanded social media presence.
personal and professional level in order candidates to assess suitability and financial expectations, and personal goals. products and services to launch to ensure “We see marketing as a vital tool to
to provide support and solutions to help alignment with our business model and 4. An understanding of the legal ongoing business success across the building brand recognition and consumer
them achieve their goals and to alleviate culture. This is achieved via detailed and financial obligations involved with network. trust. In 2019, we saw an opportunity in
any fears or anxieties that may come with information gathering in the application acquiring of Rapid Tune franchise. And at Rapid Tune, the process the market to create brand differentiation
business ownership phase followed by one-to-one meetings The importance Rapid Tune places of identifying new opportunities is a from Rapid Tune to other organisations in
• Focused training and professional with our GM and CEO. In-store work on providing opportunities for the right collaborative one, with franchisees the car servicing industry,” said Mark.
development addressing the individual’s trials are provided where necessary to franchisees, and to in turn support the encouraged to share their ideas on “Our ‘We keep you moving campaign’
needs ascertain suitability for both parties. sustainable growth of the network, is new products, opportunities and best not only represents our strong customer
18 | thefranchisereview thefranchisereview | 19It takes
Almost two years into
the global pandemic,
a village:
uncertainty felt by
businesses is higher
than ever. However, the
Navigating
distinct advantage that
businesses in franchising
have over other
franchise
businesses, is that more
than half of franchisees
feel that being part of a
businesses
franchise group provided
more of an advantage
than if they were
through the
operating their business
alone.
pandemic
By Sarah Eltakchi
Partner, Accounting and
Business Advisory, Findex
COVID-19 has brought numerous Maximising the value of A poor structure can not only put benefit analysis and price escalation Ineffective Systems franchisor to achieve the best strategic
obstacles for many businesses, from your franchise group and your entire group at risk, but can clauses are only some of the things that and operating outcomes by ensuring that
supply chain and staffing issues to limit the ease and effectiveness of In the franchise model, standardised
minimising risk we have assisted our clients with as we
systems, accurate information and
they have effective systems in place.
lockdowns, closures and many more. implementing business plans. Worse realign the focus on ensuring the business Recent changes and increased
With so many variables and unknowns still, the wrong structure can reduce the benchmarking are very important to
This is a crucial time in the franchisee/ is profitable and not just hitting sales regulation in the franchise industry
for businesses in this current environment, value of your business. Too often you running a successful franchise group. Your
franchisor relationship. Now more than growth. have seen a lot more reporting and
it’s important to identify business see a business undervalued because group needs a “one best way” of doing
ever, franchisees need the right support disclosure required to be prepared by
opportunities for your franchise group and things from a financial compliance and
to help them through the turbulence and
minimise risk to assist you to drive your
the assets are not structured correctly Ineffective Management the franchisor, but whilst it’s a lot of work,
franchisors need to be proactive about and that can be detrimental to capital reporting process, as well as operational.
franchise business, add value and grow There are so many dimensions that the transparency between the franchisor
giving their franchise group the right raises and business sales. This ensures that you have reliable data for
your returns. need to be managed in a franchise and franchisee will inevitably improve the
support. For both parties to navigate decision making, and highlights areas that
overall relationship if carried out properly.
this period, it’s critical the franchisee Poor business structure, lack of cost Lack of Cost Control business, and ineffective management may need particular attention or things
control, ineffective management and can be disastrous to the entire group. It that are working really well.
understands the guidance provided by
inefficient systems can all be catalysts for
We often place a great deal of
is essential to ensure that not only the Setting franchisees up
the franchisor and the two are working emphasis on the businesses top line, Working as the preferred supplier of
a franchisor to fall into financial hardship. franchisor is managed effectively but that Accounting, Bookkeeping and Advisory
for success
together to ensure the success of the setting targets and success based largely
Don’t let your business be one of them. the franchisees are too. At Findex we often services for franchise groups, Findex In this environment, franchise models
franchise system. on sales.
work with our franchise groups where the provides: are proving to be more appealing.
Findex has worked with hundreds of In an environment where the cost of
franchise businesses - some from the
Business Structure doing business is increasing rapidly, a lack
best performing franchisee is rewarded • Accounting software setup and People are willing to pay more money
very beginning of their franchise journey Your business structure quite often with complimentary strategy sessions. training for a franchise business than they
of cost control and management of your
and others later along in the journey. tells a story of your business journey. bottom line may see you hitting those However the ones who need it the most • Tailored training delivered through would a no-name brand. They are
Our Accounting and Business Advisory If set up correctly, it shows the clear sales budgets…but not making any money. are the struggling or underperforming webinar customised to the franchise willing to pay a premium for a business
team are experts at helping franchise direction that your franchise group has Excessive price matching, COVID franchisees, and a great management group’s needs model that has been tried and tested
businesses navigate franchising’s unique taken, whist providing the business with franchise fee relief, inadequate or outdated team acknowledges that. We are • Back office systems and processes to and proven to be successful, for the
model, working with their finance, legal flexibility, protection and segregation of supplier and sales contracts and the currently working with groups to provide support a ‘one best way’ approach across operational and marketing support and
and operations team to create the best business operations. increase in cost of labour are only a few training, compliance and mentoring to the franchise group. the stability, reputation and brand of the
approach for the franchisor and franchisees. It’s never too late to ensure that factors that need to be closely monitored the underperforming franchisees to help • Greater visibility over franchisee franchise group.
There is no cookie cutter response. It’s you have the right structure for your as we navigate this “new normal” with them understand the right way of doing performance with benchmarking and When recruiting franchisees, it’s
based on the current and future needs of franchise group. Expanding operations COVID. business. Understanding the concerns insights. important to remember and communicate
the business. But there are a few things interstate or overseas, capital raises, Whether this is the new normal or of the franchisor and the franchisee and • Cashflow forecasting. that purchasing a franchise business
we’ve learnt along the way that can help vertical or horizontal diversification simply the current normal, franchise working together to manage the process • Business advisory support to drive doesn’t give you overnight success. Not
ensure the franchise group is protected plans, business acquisitions and sales businesses need to do things differently, and establish a solution. It doesn’t happen growth and profitability. only does the franchisee need training
and gives franchisees the very best chance and succession planning can all be as the exposure and risk that poor cost overnight but managed properly, the • Funding applications. on the operations and process of the
at making their business a success from achieved successfully and safely with the control can cause your business is huge. outcome is much more successful than • Lender negotiations. business, they need to know how to run a
the beginning. right structure. Review of supply agreements, cost vs burying your head in the sand. We assist both the franchisee and successful business. Don’t just show them
20 | thefranchisereview thefranchisereview | 21how to make your perfect burger or run Navigating the impacts of Conclusion
the perfect cycle class. Show them how to COVID-19 As a franchisor or franchisee, take
Customised energy offers
manage their cashflow, how to understand
Over the past two years most franchise the time to reflect and ask yourself how
their numbers and what the numbers say
businesses have had to deal with a to give your business its best chance for
about their business.
constantly evolving environment which success. What tools and advisers do you
When franchisees start out on their
need to help ensure that your group can
for FCA members
has required immense agility. Whether it
franchise journey, it’s important to get
was navigating working from home, limits navigate these uncharted waters?
it right from the beginning. Buying any
on dining and venue capacity or contract There are so many variables for
business is a big decision that comes
changes to accommodate fluctuating businesses at present. Emotions are
with serious personal and financial
prices, franchise groups as a whole have high and it’s difficult to see the light
commitments, but quite often, so much
needed to work together to ensure at the end of the tunnel. An impartial
time is spent on the legal side of the
they had the right information to make accounting partner, who is there to
franchise transaction that the accounting
and business planning side is overlooked
decisions efficiently and effectively. provide independent advice on the At EnergyAustralia we know how busy life is when you’re
issues that the franchisor and franchisee
by the franchisee.
It is critical to have a business
For many franchise businesses, this
has highlighted a deficit in their ability to are trying to overcome, can help running your franchise. It’s hard to find that balance!
obtain information across the franchise your franchise business understand
accountant who specialises in franchising
group accurately and use it in a standard the needs of both sides and provide
to help guide the franchisee through this
first stage of assessing and buying their
way to analyse and benchmark what the
business needs.
strategic advice and recommendations
on what can be done by both parties to
Get some balance back today
new franchise and then to guide them on
Now is the time to fix these things. navigate the situation.
an ongoing base to help implement their
Getting the right advice can be hard.
Our Business Balance* plan, with a guaranteed energy discount for 12 months,
Franchisors with group-wide, standardised
business plan.
Financial due diligence, pre-purchase
back office procedures that are set up so The team at Findex understand how can help bring some balance back.
they can obtain data in a seamless and to bring franchisors and franchisees
review, business and structure setup,
periodically manner, find it easier to access together. With over 30 years’ experience Plus you get great service from our dedicated team of Australia-based business
assistance with business plans, cashflow
the information they need to adapt and in the industry, we understand
forecasting, funding applications, lender energy specialists the moment you get in touch.
change. franchising. Our expertise in finance,
negotiations, accounting software setup
COVID 19 stimulus packages and rental accounting and tax are a trademark of
and training are just some of the things
assistance have been a challenging road our business and provide a solid base
that need to be dealt with by the new
franchisee, and often with no experience.
to navigate and many franchisors have
been left to carry the burden of the rental
from which franchisors and franchisees
can strengthen their relationship. Find
Contact us
Appointing a preferred supplier for
stimulus packages. out more at findex.com.au/fca n
accounting, tax advisory and bookkeeping
It’s common practice in a franchise
Call 1800 102 558 for our most competitive quote, customised for your business
can help franchisors to establish a better
onboarding training process that helps
group for the franchisor to hold the (have your current energy bills handy). Or scan the QR code below to view energy
head lease with the landlord and grant About Findex
ensure new franchisees know how to
a sub-lease to the franchisee. But the
plans online. We’re looking forward to helping with your business energy needs.
prepare accurate information, assist As one of Australasia’s leading
rental assistance that has been offered integrated advisory firms, Findex
them with business planning, funding
by the various states in many instances, provide uniquely tailored, integrated
and cashflow and give them the best
has meant that franchisors were required solutions for people, businesses,
opportunity and tools to succeed.
to pass on the rental assistance to the government organisations and
Franchisees that have no prior trading
franchisee, but were not eligible to receive institutions that transform and
history to show when applying for funding
any assistance themselves. grow as their needs do. We
or asset finance, can often end up with
As a result, some groups are shifting pride ourselves on a high touch,
much higher interest rates and repayment
away from the traditional rent deal. Instead personalised approach to help
terms for their finance. This puts significant
of charging franchisees rent, they are our clients achieve their financial,
strain on the franchise business. But,
charging a higher rate on goods supplied. professional and life goals. With over
without understanding if they’ll be able to
This has proved to be successful for both 100 offices throughout Australia and
meet these repayments, franchisees agree
parties as it reduces the pressure of fixed New Zealand, our vast geographical
to these terms because they don’t know
costs during these uncertain times. footprint provides you direct access
they have any other choice. No funding
The COVID 19 stimulus packages to our expert advisers, the ability to
means no equipment. No equipment
were implemented to help businesses respond to international and national
means no business.
get through to the other side of the issues, access to competitive
An accounting partner can help to
pandemic. The deferral of rent, bank and solutions in your location, while
improve this by working with franchisors
ATO payments has resulted in an increase understanding and supporting local
to establish consistent reporting across
in debt for many businesses - businesses communities. I’m very happy with EnergyAustralia’s plan and service because it met my
the group, which provides them with the
that were successfully trading prior to the For more information on Findex
ability to benchmark and provide guidance expectations. When I moved to EnergyAustralia from a previous energy
COVID. It will take planning, management and the Family Office approach to
to franchisees, especially in the early
and understanding by all parties for both small business finance, visit
provider I got an estimated quote. I was very happy to see the prices and
stages and through tough times such as
the franchisor and franchisee to get www.findex.com.au this made up my mind to switch my energy over, I was impressed!
COVID-19.
through this successfully.
Raj Singh (KX Pilates, multiple studios Australia wide)
The views and opinions expressed in this article are those of the author/s and do not necessarily reflect the thought or position of Findex (Aust) Pty Ltd, ABN 84 006 466 351.
24 February 2022 © Findex Group Limited 2022. All rights reserved.
*Offer only for eligible NSW, VIC, SA, ACT, QLD business customers. Not available in all areas or for all tariff types. Guaranteed discount is off our market energy charges
and applies for the 12-month benefit period. Your energy charges will be variable including your solar feed-in tariffs & GreenPower but we will let you know before a
rate change occurs. We may change or end this offer at any time. A Basic Plan Information Document (BPID) or an Energy Fact Sheet (EFS) with the key details of this
plan is available on request.
22 | thefranchisereviewStrategic
Network
Planning
for
post-COVID-19
growth
By Peter Buckingham CFE Some of the effects have been: Growth forecasting
• Greater demand to move out of
Managing Director, Spectrum Analysis Australia the big cities to places offering different
There are a couple of ways to look at
forecast growth, such as extrapolating
lifestyles.
between two past points in time, and
There is little doubt that Australia has changed • Decimation of many CBDs and CBD
take the change and move it forwards.
related support businesses (cafes and
considerably in the past two years as we have come restaurants) as people work far less from
However our friends at the ABS do it far
better than that.
to live with COVID-19, and made many lifestyle the Head Office / CBD environments.
In October 2019, the ABS released
• Less demand for retail in major
changes accordingly. Whether we work from home, shopping centres.
their forecasts for 2017 – 2032 for
population projections by gender and by
or have taken bigger decisions and moved to a new • Property prices escalating overall,
five year age groups for the Department
and especially in areas seen to be offering
location, these changes have a great impact on the improved lifestyle opportunities.
of Health. This data is the gold level
data for consistently looking at future
purchases we make and the services we require in As franchisors, this can be a frightening
population growth. These data sets
outlook. However the national changes
our daily living. can offer some new opportunities and
represent contributions from States,
Councils and Federal policy settings impact (in the media) on the balance of areas like the Gold Coast, Sunshine
maybe some levels of rationalisation in
to come up with the best available that town than the increase warrants. Coast, Newcastle, Central Coast,
areas that have been most affected.
projections at that time. Having inquired For example if a town is 5,000 Wollongong and Geelong already
Australia has a wealth of information
recently, the ABS at this time is not persons, and an additional 500 people have large infrastructures and are
to help you make the correct decisions.
planning to amend these forecasts due to move into that town over a 12 month expanding well above their pre COVID-19
We recently had the 2021 Census, which
COVID-19. period, there will be a push on housing, expectations.
enables the Australian Bureau of Statistics
In our capital cities, the identified pressure on all vacant rental real estate, Part of their attraction is that you
(ABS) to provide excellent information
growth areas will continue, and many are a increased sales for blocks of land on can live in these areas, work from home,
you can rely on.
20 – 30 year project, and while there may the outskirts, a few more new builds of but still be close enough to go into the
The Census tells us how Australia is as
About the author be a few hurdles on the way (COVID-19), houses. The effects at the supermarket, CBD if required. Much easier going from
of a certain date – think of it like a balance
Peter Buckingham is the Managing the major directions will not change. banks, post office etc. will probably be the Central Coast or Wollongong into
sheet. On August 10th, 2021 – we had a
Director of Spectrum Analysis While COVID-19 has had some effect minimal, and in most cases will not be Sydney once or twice a week rather than
population of X, average income of Y and
Australia Pty Ltd, the leading on this, growth areas will continue to felt, as tourism has been down for most every single day!
Z% of us were born overseas. This data
demographic, mapping and sales grow, and there are some regional areas areas due to lockdowns. Many others are finding working
comes out at very small area levels, the
prediction modelling company in that will exceed original expectations for On the other hand 500 people (or remotely has become the way of the
major one being Statistical Area 1 (SA1) of
Australia. Spectrum is the 2021 the next few years. even 50,000 people) leaving Melbourne future, and can move to wherever they
which there is 57,523 covering the whole
FCA Supplier of the Year. We are all hearing circumstantial or Sydney will have little effect on the wish. One of our staff now lives in Casino
of Australia. The 2021 Census is being
Peter is contactable by email at evidence of migration into regional areas, operations of that city. (NSW) and is working happily from her
released in stages, and they expect the
peterb@spectrumanalysis.com.au, but I often think that the effects of an There is little doubt that towns and new office (in the back of the cow shed
major data release at small area levels to
or visit spectrumanalysis.com.au additional 10% increase in population in cities across regional Australia are I believe) and I am still very happy with
be in June 2022.
a smaller town or city has a much larger experiencing a population boom. The the work she produces.
24 | thefranchisereview thefranchisereview | 25You can also read
