franchise new zealand - vol 22 iss 03 - spring 2013

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Westpac Directory of Franchising

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job too smallfor you?how buying a business can change your life

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Every month, my wife Lorraine and I meet with a small group of franchise-related people for an informal lunch. Although everyone is free to bring a burning issue to the table, there is no set agenda and the topics covered may include anything from debt collection strategies and the recruitment market to children, health or hobbies (one of our number is restoring a vintage boat – well, it was modern when he started, but it will be vintage by the time he finishes).

It was at a recent lunch that the topic of this issue’s cover story came up and, as always, everyone had a relevant story to tell. One told of the shock of going from being an employee one day to having 30 staff the next; another of the reverse experience when he left his job managing a thousand staff and two weeks later was on the tools himself in a ‘man-with-a-van’ franchise. Neither regretted their decision for a moment, but they admitted they’d faced plenty of challenges adapting to their new situations – and found a lot of satisfaction in overcoming them.

It’s these experiences that we’ve tried to reflect in our cover story. Everyone feels frustrated in their job sometimes and if it goes on for long enough, they may change jobs. However, changing from one job to another doesn’t really give you freedom and control, which is when the idea of self-employment starts to appeal.

There are lots of advantages in being your own boss, and some disadvantages, too. Our article on page 6 shows how buying a franchise can help you make the transition more easily. But the key message is something that came out of our lunch group: the biggest challenge that faces people making the move out of employment is the need to change their mind-set. There’s a big difference in attitude between ‘working for yourself’ and ‘owning a business’ and it can really affect how successful you are.

So this issue, we offer advice to help you start thinking about your future in a business-like way: how to choose the right opportunity, fund it, buy it and manage it. There are case studies of franchises and franchisees and our ever-popular Directory of

opportunities and advisors (page 70).

If you’re ‘over’ work and up for a new challenge, start investigating now. As our lunch group agreed, you’ll never be bored again!

Simon LordPublisher Franchise New Zealandmagazine & website

4

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Published by: Franchise NZ Marketing Limited PO Box 300 749, Albany 0752 New ZealandP 0800 FRANCHISE (0800 372 624) [email protected] www.franchise.co.nzISSN 1172-059X (Print) ISSN 2324-5204 (Digital)

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Find more info at www.franchise.co.nz - Franchise New Zealand online

59 Looking Back With Pride & PleasureSBA franchisee sums up: ‘It’s a damn good business and very profitable’

60 Don’t Be Taken For A RideSome business opportunities may not be all they seem

61 The Benefits Of Brand PowerEmbroidMe offers franchisees regular hours, buying power and an exciting incentive

63 Quality And Service Make The DifferencePalazzo Kitchens & Appliances franchisee tasted the business and wanted more

64 What Do You Get For Your Franchise Fees?How much should franchise fees be and what do you get for your money? Lorraine Lord answers the questions

69 If You Can’t Beat Them, Join The BestA rival salesman learns the secrets of Snap-on Tools’ success

41 Silver Lining For Franchisee FinanceSilver Chef helps make hospitality more affordable

43 Leave The Boss BehindThe Coffee Guy newbie finds satisfaction in self-employment

45 All Decked Out For SummerDeck & Fence Pro is appointing franchisees nationwide to meet demand

46 250 Questions You Must AskA comprehensive list of questions to ask the franchisor before you make a decision on what to buy

51 Building A Healthy BusinessContours is a trusted gym brand with a whole new energy

52 Four Cornerstones Of BusinessGrant Thornton helps new franchisees set up for success

55 Franchisees Set To Benefit From USA ExperienceNew executive brings business-building knowledge to Oporto New Zealand

56 One Door Shuts. Another Door OpensDream Doors franchisee makes a fresh start in a flourishing sector

57 Why Don’t Franchisees Read Their Franchise Agreements?Franchisees who don’t are storing up trouble for the future, says Jason Gehrke

6 Is Your Job Too Small For You?How buying a franchise can change your life

11 Sushi Franchise Going PlacesMr Woo Sushi is a mobile food franchise from an experienced franchisor

13 Sweet DreamsUnited Sweets franchisees benefit from both retail and online revenue

15 Winning Design Winning CustomersPalmers Planet’s new store has proved its value in first 12 months

16 Updates Our pick of the top news stories from franchise.co.nz

17 Repeat BusinessEcomist seeks new franchisees for both home and commercial markets

18 There’s Method In The MadnessThe Mad Butcher plans to double the number of outlets

21 Returned Kiwi Is A Rising Star‘Your coffee is awesome,’ new customers tell Cafe2U franchisee

22 Dedicated To Children’s Health & HappinesssKids franchisees are building a network of excellence in out-of-school care

25 Making The Move To Self-EmploymentGuaranteed income and solid support help V.I.P. franchisees

26 Kiwi Franchises Going PublicSome familiar franchise names are starting to turn up on the New Zealand stock market

29 Social Phenomenon To Sweep The NationKiwiYo combines tasty treats with online fun

30 Funding A Service FranchiseDaniel Cloete from Westpac looks at some of the issues

32 Opportunity KnocksBusiness builder gets his teeth into a massive market with Refresh Renovations

35 7 Things That Can Send A Franchisee BrokeSmart Franchise surveyed over 1000 people to find out how to help franchisees succeed

37 Café Franchise Offers Healthy FutureNew menu and new look for Columbus Coffee

39 Export GoldParamount has taken its award-winning environmental approach to Australia

40 Chair Has Seen Both SidesA former franchisee and experienced franchisor is the new leader of FANZ

70 Westpac Directory Of FranchisingComprehensive details and investment levels for over 250 franchise and master franchise opportunities. Also includes advisors and index to advertisers

⇒

26

Kiwi Franchises Going Public

6

⇒ Is Your Job Too Small For You?

46

⇒250 Questions You Must Ask

How buying a franchise can change your life (and what you need to change in yourself)

A comprehensive list of questions to ask the franchisor before you make a decision on what to buy

Some familiar franchise names are starting to turn up on the New Zealand stock market. What are the reasons?

DIRECTORYof franchising

Franchise Opportunities

National Master Licences

Specialist Advisors

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708080

⇒ Welcome to Franchise New Zealand – the buy your own business magazine Volume 22 Issue 03 Spring 2013

Editor Simon Lord

Publication Manager Sally Knight

Publication Services Eve Brown

Writers Crispin Caldicott Ross Lindsay

SubmissionsEditorial submissions and advertising enquiries should be directed to the publisher. All articles published become copyright ©Franchise NZ Marketing Ltd

ConditionsThe publisher in its sole discretion reserves the right to refuse to publish any advertisement received if the publisher considers that the publication of such advertisement would be undesirable in any way.

ContactFor information about subscriptions, advertising or other matters, please ring us on 0800 372 624 or email [email protected]

CopyrightFranchise New Zealand magazine and website are copyright ©Franchise NZ Marketing Ltd. and no part may be reproduced without the specific written permission of the publisher.

DisclaimerAll franchise and business opportunity features included within this publication are paid advertorial approved by the client concerned.

Inclusion of any franchise system, business opportunity or professional advisor within this magazine does not imply endorsement by the publisher or membership of the FANZ. Persons entering into franchise agreements are strongly advised to seek their own professional advice.

The publisher does not accept any responsibility or liability for views or claims expressed in Franchise New Zealand. Opinions expressed by contributors are their own and not necessarily endorsed by the publisher.

6 Franchise New Zealand Volume 22 Issue 03 Spring 2013

How buying a franchise can change your life

(and what you need to change in yourself)

is your job TOO SMALL for you?

Buying A Franchise: Employment or Self-Employment?

⇒ A franchisee we talked to once was pretty blunt about the reasons for leaving their job and buying their own business. ‘There was

zero appreciation, zero job satisfaction and I’d endured a spate of sh*tty bosses, so I bought a franchise and changed my life. Send me some copies of the magazine when it comes out so I can give them to the people in question!’

Everyone has periods of frustration in their jobs – it’s only natural when half of your waking hours are spent working for others, five days a week. After all, everyone likes to feel that they have some control over their actions and that they are making a difference. It’s a feeling that the New Zealand Police cleverly tapped into with their ‘Get some better work stories’ campaign, and it’s one that also results in many people dreaming of giving the boss the push and becoming self-employed.

For many New Zealanders, owning your own business is not just a dream – it’s a very real option. According to international surveys, New Zealand is one of the best places in the world to start a business. That doesn’t mean every new business succeeds, of course, which is one of the reasons why franchising is so popular. Franchisees get the training, systems, help and support they need to give them the best possible chance of success.

But being fed up with being a wage slave doesn’t mean you should hand in your notice and leap into buying the first franchise that catches your eye: you have to choose carefully and do a lot of research before deciding to plough your savings, your career and your life into a new venture. However, if you get it right then buying a franchise can change your life in many ways. Here are some of them.

Ten Ways To Change Your Life1. You make your own decisions. Rather than someone telling you what to do in any situation, you are able to use your own judgement. That’s liberating, but it can be scary, too. Get it right and you could make a customer for life. Get it wrong, and the cost comes out of your own pocket.

2. Your income isn’t limited by your salary or the number of hours you work – it’s only limited by how well you run your business, attract your customers and satisfy their needs. Even if you start off in a one-person business, most franchises offer you the ability to grow much larger – either by employing others, opening additional outlets or taking on a master franchise.

3. Your future isn’t limited by your past. Want to run a café, open a pet hotel or run a sign business, but don’t have the experience? In most cases, that doesn’t matter when you buy a franchise because the franchisor will teach you how to run the business – and run it well. If you have the ability, all you need is the desire to succeed, the willingness to listen and learn, and the determination to overcome problems.

4. There’s no career ladder. When you work for someone else, you can’t expect to make big jumps up the ladder – you have to prove yourself on every rung before you’re given more responsibility and more rewards. With your own business, you choose when to expand – and the franchisor team will be there to help you decide when and how.

5. There’s no pyramid of responsibility, either – you don’t have to wait for a position to become vacant at the next level up, or compete with your colleagues to get the top job. Nor do you have to wait for decisions from above before you can get on with things. Your business becomes what you make it.

6. No more office politics. Working with other people, each with their own agendas, can lead to friction – especially if they have their own ambitions. Working for yourself avoids all that. If you are ambitious, it’s up to you to build your own business, your own team and your own profits.

7. More personal satisfaction. When you own your own business, every day will have its challenges, its triumphs and disasters. If a customer thanks you for great service, or a piece of vital equipment breaks down and you have to manage without it to get the job done, it’s you that’s made the difference – and you’ll care desperately about getting a good result.

8. More personal freedom. You won’t know what hard work is till you’ve run your own business, and you’ll work more hours than you dreamed possible, especially at first. But when you’re self-employed, you’ll also find you have a very flexible boss and that if you really want to be at that school prize-giving or rugby match, you can make it happen.

9. You’ll still be part of a team. When you work for someone else, you’ll probably have colleagues to share stories, experiences and frustrations with. When you work for yourself, all that can disappear and you can find yourself alone. But if you buy a franchise, there will be other franchisees around to talk to, meet and learn from, as well as a franchisor team to help you overcome problems.

10. You’ll be building an asset. If you do a good job when you’re working for someone else, you might get praise, maybe a small bonus or even promotion one day. But if you do a good job in your own business, you’ll not only increase your income immediately – you’ll also increase the value of the business itself. If you’ve chosen well, the franchise brand should be worth more, too. When the time comes to sell, move on or retire, your asset will be worth more and you’ll have made a tax-free capital gain.

Don’t Expect It To Be EasyWhile all the above is totally true, moving from employment to self-employment isn’t exactly a walk in the park – there are too many things to think about. And there are risks, too: as one lawyer put it to me recently, ‘I hate seeing adverts saying “Be your own boss.” Owning a business means responsibility as well as freedom, so if “sacking the boss” is your main motivation, don’t do it. When you’re employed, if you’re made redundant, you lose your job. If your business fails, you can lose your job, be made bankrupt and lose your house! You have to balance the risks and rewards, and if you choose the right business and take the right advice, buying a franchise can help you do that.’

Here are some of the areas that new business owners have to think about which they might never have considered as employees:

Taking legal advice. You might have consulted a lawyer when buying or selling a house, but that’s a pretty straightforward affair compared to setting up a company and buying a business. It’s also one of the few areas where buying a franchise is more complicated than buying an independent business; you’ll have an ongoing relationship with the franchisor so you’ll need an experienced franchise lawyer to check over the franchise agreement before you sign it. Fortunately, they’re not hard to find (see page 81).

Talking to an accountant. If you’ve been a manager in a large company, you might have dealt with the ‘bean counters’ but otherwise you may never have consulted an accountant. When you buy a business, though,

7Find more info at franchise.co.nz

is your job TOO SMALL for you?

you want one on your side to help you analyse whether it’s a fair deal or not, help you set up the systems to manage it and advise you on everything from cashflow to tax. Accountants can help you achieve your dreams and avoid your nightmares (see page 80).

Borrowing money. If you thought getting a mortgage was nerve-wracking, wait till you want to buy a business. Banks will want to know all the details, see business plans and projections, be sure you have the necessary skills and then want some form of security on the money they lend you – often your house. But this is where choosing a franchise can be a huge advantage: the franchisors will have helped all their franchisees through this process before; the main banks all have specialist franchise teams who understand how to assist newcomers and the franchise itself may have preferential arrangements with a particular bank that makes it easier – and cheaper – to obtain the necessary finance.

Dealing with the IRD. When you’re employed, you don’t have to think about tax much – it’s just a depressing figure on your pay-slip. But as a business owner (and especially if you employ staff yourself) you’ll have to be on top of company tax, income tax, GST, PAYE, Fringe Benefit Tax, excise duties and a host of other issues. As well as working for yourself, you’ll think you’re working for the Government. But again, others have been through all this before and, if you set things up properly with the advice of your franchisor and accountant, you’ll not only be able to stay on top of the books – you’ll also gather valuable information which can be compared with other franchisees (‘benchmarked’) to see how your business is progressing and where you can make improvements.

Complying with the law. As a business owner, your business practices and product standards must comply with relevant legislation. Here’s a brief list supplied by Ross Blake of Marketing Spark – and it’s by no means exhaustive:

• Fair Trading Act• Consumer Guarantees Act• Packaging & Labelling Regulations• Consumer Information Standards• Product Safety Standards• Resource Management Standards

If you employ staff, Ross points out that you’ll also have to consider:

• Employment Relations Act• Minimum wage rates• Minimum holiday allowance• Health & Safety in Employment Act• Hazardous Substances & New Organisms Act

Then there are hygiene standards, local authority by-laws and a whole host of other regulations to

Franchise New Zealand Volume 22 Issue 03 Spring 20138

consider. A good franchise will already have systems set up that will ensure you comply with all these requirements – as long as you follow them. And if the law changes, your franchisor should let you know. That’s a huge weight off your mind, isn’t it?

Doing it all yourself. When you’re self-employed, if you don’t do something then nobody else will. That applies to everything from making sales to replacing the toilet rolls. If you’ve been used to a job where someone else was responsible for dealing with suppliers, placing the advertising, hiring staff, maintaining equipment or washing the tea towels, that can come as a shock. Fortunately, as a franchisee you’ll be shown what to do, how and when to enable your business to run smoothly.

Dealing with customers. This might sound like a silly one, but how often do you really deal with customers (the people who pay your wages) in your current job? One friend told me recently that in his corporate job managing over a thousand people he never even talked to a customer, but when he became a franchisee in a car detailing business, customer contact was a constant part of the job – and the only way of growing his business. No wonder most franchisors specify people skills as the most important attribute of all.

Change Your MindsetSo, as we’ve seen, if you feel your job has become too small for you and you want to change your life and take control, franchising has a lot to offer. You can make the move into owning your own business with the support and guidance of the franchisor behind you, and you’ll be provided with systems to help you handle most of the practical obstacles along the way. You won’t have to create products or services to sell, won’t have to work out where to source them or how to price them, and you won’t have to start advertising from scratch – you’ll have the benefit of an established brand name that will bring customers to your door.

But the success of your business will still depend very much on your own efforts. I recently asked a small panel of franchisors and advisors what they thought was the biggest single obstacle which faced people moving from employment to self-employment for the first time. They all agreed that the greatest challenge of all was the need to change your mindset from ‘doing a job’ to ‘managing your own business.’

‘There’s more to it than just getting used to the idea that you won’t be getting a regular pay cheque every week,’ said one. ‘You have to accept that if you want your business to grow, it’s up to you to grow it, and if you

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have a problem, it’s up to you to fix it. With a franchise, at least you have someone to turn to for advice on all these things, but you have to make that mental shift to get the best out of the opportunity.’

Removing The Roadblocks To SuccessOne person who is well aware of the need to help franchisees change their mindset is Dawn Engelbrecht of the sKids (Safe Kids In Daily Supervision) franchise. ‘It doesn’t make much difference whether they have been senior management or junior staff – the same issues still apply,’ says Dawn. ‘Some people feel they suddenly have to do everything themselves, or focus on the areas in which they feel they have expertise rather than learning all the new roles they need to manage their own business. Self-confidence can be an issue, too. I would say that attitude of mind can be the biggest roadblock to success.’

It was to help remove the roadblocks that Dawn introduced sKids’ franchisee mentoring programme. ‘Like most franchises, sKids provides thorough initial training, which teaches franchisees how to carry out the day-to-day operation and management of their businesses, plus ongoing support to help them put it all into practice as they get established. Our mentoring programme takes it to the next level to give them the skills to operate as business owners, not just managers.’

The sKids mentoring programme is a six-month course conducted by Dawn herself and run as a series of group sessions with other franchisees. Most participants have completed at least their first year in the franchise, ‘so they’ve experienced the ins-and-outs and the ups-and-downs of running the business,’ Dawn explains. ‘That way, they know what they do and don’t enjoy and what their own personal roadblocks are.

‘Meeting as a group adds huge strength to the process. Everyone has different life experiences and different skill sets but they are all using the same franchise system so they can discuss all aspects of the business and identify weak spots. It’s not about the franchisor telling them what to do, it’s collaborative. People can put their issues out there and discuss how to fix them. A lot of the learning comes from the war stories, people who’ve been through the same thing, although we also have formal sessions and homework at the end of each session. It’s a big commitment, which is why franchisees have to request a place.

‘We’ve run it three times so far and seen it make a big difference to people’s results. One franchisee, for example, struggled to delegate – she felt that, as a business owner, she had to manage everything herself.

Until she got beyond that, her business wasn’t going to grow. After doing the programme, she had a different mindset and went on to win her category in the Westpac New Zealand Franchise Awards. Two of our mentor programme graduates have done that now.

‘Everybody needs something different to get over their own personal roadblocks, so everyone gets something different out of it. It’s about helping people create the best business that they can.’

Succeed On Your Own TermsPeople are motivated to buy a franchise for all sorts of reasons. Hating the boss, like the franchisee at the start of this article, is one of them, but it’s certainly not a good enough reason to take on all the challenges that business ownership will present.

On the other hand, you may well feel that your job has become too small for you – or that you have grown too big for your job. If you have the desire to succeed on your own terms, the spirit of adventure to start something new, the ambition to create something of your own and the courage to invest your time and money into your own business, buying a franchise could well offer you a real alternative to being a wage slave.

Franchising offers a brand, a product and a proven system that saves you having to create everything yourself. It offers training and support to help ensure you put your energy into activities that bring results. And it offers a network around you to help you make the mental shift into owning a business rather than doing a job.

Franchising also offers an incredible range of opportunities to suit different interests and investment levels. In the following pages, you’ll find profiles of many different opportunities in all sorts of industries, as well as real-life stories of people who have swapped employment for ownership. They’ve all been through the excitement and occasional fear of making the change, and they’ve all demonstrated how, with a good franchise behind them, they have come to grips with owning their own business. Could it be your turn next?

About the AuthorSimon Lord is Editor of Franchise New Zealand and has worked in franchising in New Zealand and the UK for over 30 years. Thanks to Dawn Engelbrecht for her contribution and to Ross Blake, Michael Bright, Paul Donovan, Brian Mooney and Martin Smith for the spirited discussion which led to this article.

To work out whether any particular franchise is the right one to help you make the leap into business ownership, you’ll need to do some research and ask lots of questions. There are many helpful articles on the Franchise New Zealand website – here are four of the most important:

Find The Right Franchise – A handy step-by-step guide to choosing the franchise that best suits your own needs. www.franchise.co.nz/article/view/639

50 Questions To Ask Franchisees – If you want to know what a franchise is really like, you need to talk to the people who are already operating it. www.franchise.co.nz/article/view/935

Doing The Sums On Buying A Franchise – How do you evaluate a franchise from a financial point of view? A case study of a real-life business opportunity. www.franchise.co.nz/article/view/1124

What’s The Next Big Thing In Franchising? – Which types of franchise are most likely to show strong growth over the next few years? Here are our tips for six sectors to watch. www.franchise.co.nz/article/1682

How To Choose A Franchise That Suits You

⇒QuickTips

We are currently looking for franchisees in the following locations:

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Lisa Travis | 09 847 9220 | 027 298 6077 | [email protected] | caci.co.nz

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What can you expect as a Caci franchisee?

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11

⇒ The takeaway food sector in New Zealand is valued at some $1.5 billion and is growing annually at around 9 percent. These are figures to attract

the attention of any entrepreneur and the reason why experienced franchisor Adam Parore spent two years looking for the right business before he found Mr Woo Sushi.

Mr Woo takes sushi to the people with a mobile operation that provides healthy lunch and event catering. ‘It’s a concept that meets growing demand in several areas,’ says Adam. ‘First, people are increasingly buying lunch out, as the statistics prove. Second, people are time poor, especially at work, so having lunch come to you is a popular option. Third, businesses are increasingly moving away from central business districts to industrial parks that offer lower rent, better access and parking. The food and beverage options in such places are often limited, though – look at the popularity of mobile coffee vans if you want proof of that. Fourth, there’s a general move away from traditional fast food to healthier, fresher options. And finally, of course, Kiwis love sushi – in fact, in New Zealand, sushi has one of the highest rates of penetration outside Japan.’

Mr Woo Sushi has been operating in South Auckland for the past 12 months and is due to be launched as a franchise in October 2013. ‘We’ve proved that the concept is both simple and profitable so now we are looking for our first franchisees,’ Adam says.

Extra Profit For No Extra Work‘It’s a very straightforward business. All the sushi is hand-made in our own kitchens and delivered to franchisees every morning. We have our own sushi chef, Chen, who comes from Osaka and trained in Japan. He sources fresh, local ingredients such as salmon from the Marlborough Sounds and it’s important to be socially responsible, too, so all our tuna is line-caught.

‘It means franchisees can offer an extensive menu of sushi as well as bento boxes, salads and the extras such as edamame beans. Working from around 8am to 2pm, they deliver these to offices and workplaces, just like the coffee vans, but they can also offer catering for company events and even private parties. Our web-based ordering system means franchisees can place orders

the night before so if someone asks them to do lunch for 20 the next day, it’s not a problem. In fact, it means extra profit for the franchisee with no extra work!’

And Mr Woo Sushi vans can take the same service to evening and weekend events, too. ‘Sushi is a popular alternative to the traditional hot dogs and chips these days, and a lot healthier, too,’ grins Adam. ‘It’s a valuable additional income stream so we will be promoting our services to event organisers and passing bookings on to local franchisees. That doesn’t mean franchisees need to work seven days a week if they don’t want to – the Mr Woo business model sustains having employed drivers in the vans, or even franchisees owning multiple vans.’

Low Entry Cost, Choice Of Territories For First FranchiseesMr Woo will initially be launched in the central and greater Auckland areas, expanding to the upper North Island, Wellington and Christchurch over the next 12-18 months. The first franchisees will be able to buy in for just $69,000 +gst and a variety of funding options are available.

The investment includes all initial fees, a fully-fitted van and four weeks’ dedicated training. ‘Two weeks of that will be spent in the franchisee’s own exclusive territory with Mr Woo’s franchise development manager, developing a customer base and daily route for the van and creating a sound business plan for growth,’ explains Adam. ‘And during those two weeks, we provide a $5000 revenue guarantee so you know there will be money coming in from the very start. Based on our first year’s experience, an established van can generate $70,000 to $100,000 gross income and achieve over 30 percent return on investment.’

Adam is looking for franchisees who enjoy people contact. ‘After the initial set-up they will receive plenty of ongoing support, but need to be comfortable developing their customer base and marketing locally,’ he explains. ‘We expect everyone to start as an owner/operator, even if they add on more vans later, so people skills are important. As all the product is produced centrally, a food industry background isn’t essential but hospitality experience would be a plus.

‘It’s very important to us to get off to a good start, so we’ll do everything we can to help our franchisees succeed. Our team has had a lot of franchise experience in other fields with APM, Small Business Accounting and Pegasus Rental Cars, and we’re looking forward to offering high levels of support to Mr Woo franchisees.

‘If you want to be in at the start and get your choice of territory, get in touch with me now. Mr Woo Sushi is the low entry-cost mobile food franchise that’s going places!’

Mr Woo Sushi is a new mobile food franchise from one of NZ’s most-experienced franchisors

Franchise Opportunity: Food & Beverage

Find more info at franchise.co.nz - Search: Mr Woo Sushi

Find more info at franchise.co.nz - Search: Mr Woo Sushi

sushi franchiseGOING PLACES

Advertiser InfoMr Woo SushiPO Box 47 818, Ponsonby, Aucklandwww.mrwoosushi.co.nzContactAdam ParoreP 021 781 250F 0-9-523 [email protected]

Sushi is a popular and healthy alternative to traditional fast food - and Mr Woo delivers it straight to your workplacew

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13

⇒ Having a bright idea is one thing – developing it into a successful business is another. But that’s exactly what Finn Puklowski and his

family did when they turned the sweet counter of their video store into an online sensation and a mall attraction in its own right. Now the United Sweets brand is being franchised with a unique model that offers retail franchisees a real share of online sales. The website unitedsweets.co.nz is already attracting 10,000 unique visitors per week and boasts 51,000 Facebook likes, which is quite a starting point – in fact, the company claims to be New Zealand’s largest small business on Facebook.

In two short years, United Sweets has also become the largest imported confectionery retailer in New Zealand. ‘We already have six retail outlets, five within key malls and one a large shop format,’ explains Finn. ‘Along with our website, these specialise in selling quality confectionery brands from the US, the UK and other countries.

‘This is an exciting market with limited competition and United Sweets dominates the category with 1300 products in circulation. We leverage billions of dollars of research and marketing from brands such as Wonka, Jelly Belly and Hersheys with exclusivity over imported lines not produced in Australasia. The product range also extends into drinks, cereals, sauces and more.’

Creating A Monster OpportunityThe Puklowskis have always been an entrepreneurial family; Finn grew up working on market stalls then, while still at school, working 25 hours a week in the family video store. ‘I wasn’t so interested in school but I was fascinated by business. Dad introduced me to benchmarking our performance against other franchisees in the chain and that opened my eyes. At the same time I started travelling overseas and got some insights into international markets.’

Confectionery was originally a source of add-on sales at the video store, but then Finn – still just 20 – and his sister Micah got creative. ‘We built our first website and launched a Grab One promotion with a thousand $40 vouchers. It went viral and that set the pace and tone for the business. We went from nowhere to the largest online confectionery retailer in four weeks!’

But online isn’t everything so they used their in-store experience to develop a kiosk to take United Sweets to the malls of New Zealand. The first, with a footprint of just 5 x 2m, opened in The Base, Hamilton, in September 2012 and proved instantly successful but too small for the demand it created. ‘For our third kiosk, in Porirua, we enlarged it to 15 sqm,’ says Finn ‘I worked in that for a month and it proved an ideal size so we’ve repeated the larger design in Palmerston North, Bayfair Tauranga and Northlands Christchurch. We’re planning to open another three outlets in Christchurch, Auckland and Nelson before Christmas 2013, and all of these will be franchised as going concerns. In total, we have plans for 32 kiosks and 20 conversions, and already secured 20 leases.’

Exclusive Territory For Online RevenueThe United Sweets franchise model is an unusual – possibly unique – one. Every franchisee will operate their own kiosk but will also have an exclusive mapped territory. That provides two sources of income: sales from the kiosk itself plus shared revenue from online sales.

‘Basically, gross profit from online orders is shared with franchisees through their postcode territories,’ explains Finn. ‘If a delivery goes to a franchisee’s area, they make money. It avoids the problem of retail outlets just being showrooms for products that people then buy online. It means franchisees benefit from our huge online presence, which is boosted by a dedicated two-man team of social media marketers. The team is constantly monitoring global trends to keep the United Sweets brand ahead of the curve.’

Meanwhile, the kiosks are being located in major malls attracting over 2 million foot traffic. ‘We’ve proved they can turn over up to $500,000 gross, plus the online revenue on top,’ says Finn. ‘That can make for some very healthy returns. By operating each new kiosk ourselves prior to franchising, we can establish the customer base, staffing levels and, most importantly of all, instil our company values on each site ready for the franchisee to grow.

‘All outlets will be independently valued by BDO and Harcourts prior to being marketed and will include around 25 days’ stock. The investment required will vary from store to store but is likely to range from $150,000 to $250,000 plus SAV (stock at valuation). All the major franchise banks have indicated their interest with Glenn Tasker from ASB offering their full support and putting their team at our franchisees’ disposal.

‘What we’re looking for is inspired and inspiring people with the personality to project the intense, fun, young culture of United Sweets and make us stand out in every mall. You’ll also need to be able to develop the same enthusiasm in your staff. If that sounds like you, and you want to join a truly unique and fast-growing franchise that combines the best of retail and online for the benefit of everyone – ring me now!’

United Sweets franchisees benefit from both retail and online revenue with a massive reach

Find more info at franchise.co.nz - Search: United Sweets

Find more info at franchise.co.nz - Search: United Sweets

SWEET DREAMS are made of this

Advertiser InfoUnited Sweets100 Duke Street, Frankton, Hamilton 3200www.unitedsweets.co.nzContactGarrick Smart, Franchise ManagerP 0800 223 696M 027 522 [email protected]

Franchise Opportunity: Retail

15

⇒ Palmers Planet in Albany has won two top retail design awards in the prestigious

New Zealand Retail Interior Association’s annual Red Awards. The innovative store, which was opened last year by franchisee Richard Hackett, overcame intense competition from a large number of both new and established local and international retailers.

After winning the Best Retail Design award in the Furniture, Lighting & Hardware category, the European-style garden centre then went on to take out the coveted Overall Best Retail Design in the wide-ranging and fiercely-contested Home Group.

When selecting the Red Awards winners, the judges considered how well the entrants have met the needs of their target market and how they have created a point of difference – irrespective of budget – in today’s competitive retail sector. It was this that made Palmers Planet stand out to the judges, but it’s the new store’s success as a business that has mattered most to the franchisors.

‘Palmers Planet was designed to be as much a destination as a retail store,’ says Garry Stone, general manager at Palmers Franchise Systems. ‘The general retail format for garden centres in New Zealand has not significantly changed since Stanley Palmer opened his first store in Glen Eden in 1958 and created the foundations of the Palmers Gardenworld

franchise.

‘In the European market, though, garden centres have evolved significantly, driven by the need to take the seasonality out of sales. The typical sales mix of a European centre is 15 percent food (including cafés and general food

lines), 35-40 percent merchandise and 45-50 percent garden products. Our research showed that we needed a wider product mix, extending well beyond plants, so that’s what we created. Palmers Planet has been a tremendous success and now we’re looking for new franchisees to establish the concept in other centres.’

Palmers is part of the United Franchise Systems group, which includes Valentines and the Sierra café chain. ‘That gave us a wealth of experience to draw on in creating the new concept store,’ says Garry. ‘For example, the Botannix Café provides another profit centre for the franchisee while showcasing vegetables and herbs that are on sale just a few metres away.’

A Proud Tradition Of InnovationJanalle McMeekin, Palmers’ marketing manager, says that, ‘This ability to move with the times and continue to innovate is one of the key reasons why Palmers are still New Zealand’s favourite garden centres, more than 50 years after the company first opened for business. The retail awards are just the latest in a series of accolades. These include:

• Nursery & Garden Industry Association Marketing Awards Finalist - Best Consumer Catalogue, Spring 2012 Finalist, Best Consumer Catalogue – Mother’s Day 2012• Pride in Print Awards - Gold Award, Promotional Print

Catalogues & Leaflets

‘But the prestigious Red Awards are extra special because they recognise how Palmers Planet’s unique mix of lifestyle and garden products has created a true retail destination centre for the whole family. Palmers Planet features 1000 square metres of indoor space and a large outdoor area. By including a licensed café and dry delicatessen, gifts, books and magazines, a professional florist, children’s playground and free WiFi, Palmers Planet has made it easy for families to get virtually everything they need for their home in one place. Our range goes from spa pools, barbecues and outdoor furniture to plants and flowers, home décor and even body care and jewellery.’

21st Century Lifestyle PrecinctUnited Franchise Systems commissioned architects F+D=A Ltd to create the new-look Palmers Planet. Kent Fabian of F+D=A says, ‘We believe that Palmers Planet’s success in these prestigious New Zealand-wide awards is firm vindication of both our innovative design direction and the equally innovative brief to extend the traditional model of a garden centre into a new-generation, 21st century, lifestyle precinct – and, importantly, an all-year-round operation.

‘To do that, the design team geographically placed the café in the centre at the intersection of the main traffic routes and developed unique elements such as the leaf-shaped point of sale units, a 7-metre “Chair Wall” and a curved retailing system. The result is a garden centre where all of the diverse areas have their own vitality and an organic flow, encouraging customers to move through the entire store without missing anything.’

Franchisees Wanted North And SouthFollowing the success of the first Palmers Planet, the company is now in the process of developing several new sites in the wider North Island and South Island and is looking for suitable, motivated, results-driven franchisees to invest in these exciting new retail centres. The second Palmers Planet store is due to open in Hamilton in March 2014.

‘Palmers Planet is just one of five well-known brands offered by United Franchise Systems,’ says Murray Belcher, United Franchise Systems’ Business Development Manager. ‘We have opportunities from $200,000 upwards to suit your financial reach, your business goals and your lifestyle ambitions. If you want to be part of a new era in retail with a strong, award-winning franchise team behind you, pick up the phone and talk to me now.’

Palmers Planet’s new store has proved its value in first 12 months

Franchise Opportunity: Home & Building

Find more info at franchise.co.nz - Search: Palmers Planet

Find more info at franchise.co.nz - Search: Palmers Planet

winning design WINNING CUSTOMERS

Advertiser InfoPalmers PlanetPO Box 331-586, Takapuna, Auckland.www.palmers.co.nzContactMurray BelcherP 0-9-451 9102F 0-9-441 6750M [email protected]

The first Palmers Planet in albany: the award-winning design has created a true retail destination centre for the whole family


Our pick of the top news stories from www.franchise.co.nzUPDATES

From Our Website

Franchise New Zealand is much more than a magazine - it’s a massive online resource, too. If you want to keep up-to-date with news about franchising in New Zealand and some of the more interesting stories from overseas, go to www.franchise.co.nz and follow us on Facebook or Twitter. Here’s our pick of recent news stories from our site.

New Zealand outlets of Wendy’s and Carl’s Jr. are setting world records for new burger sales. Wendy’s NZ CEO Danielle Lendich said the new restaurant in Frankton, Hamilton, served more than 10,000 customers with over 20,000 burgers in its first week and broke the hourly sales record by $300, the daily record by $6,000 and the weekly record by $12,000 – up 6.7 percent on the previous titleholder. All were achieved within standard trading hours following the store’s opening on 11 July 2013.

This follows the news that a Carl’s Jr. store which opened on Henderson’s Lincoln Rd in November 2012 also reported a world record for that brand. The Carl’s Jr. outlet turned over almost $180,000 in its first week of operation, a new high for the company, which operates in over 20 countries.

The latest figures from Wendy’s and Carl’s Jr. reinforce claims that, despite appearances, the New Zealand market for burgers is still not saturated. Wendy’s New Zealand restaurants are traditionally top-performers for

the chain – its Palmerston North outlet set a new world record when it opened in December last year, with Christchurch and Tauranga also having held the title. Wendy’s has over 6,700 restaurants in over 25 countries. Before New Zealand’s reign, Wendy’s stores in the Bahamas held the first-week sales record.

A report published in July 2013 by the Restaurant Association and the Auckland University of Technology suggested that takeaway sales have risen by 25 percent over the last four years, with annual spending now topping $1.5 billion. In total, New Zealanders spent almost $7 billion on dining and socialising last year.

Read more – see link bottom right

The Franchise Association has proposed that its members should be granted automatic exemption from a change to Part 6a of the Employment Relations Act. If adopted, the move would see the Association recognised under law for the first time and create a distinct divide between member and non-member franchises.

Part 6A provides protections for certain groups of employees in the cleaning, orderly, catering and laundry industries when the employee’s work is assigned to a new employer. It gives those employees the right to transfer to the new employer on the same terms and conditions of employment. The Labour Party’s David Cunliffe is in favour of extending the same protection to all employees.

Under proposed changes to the Bill, businesses with fewer than 20 employees would be exempt from Part 6A when they take over a new contract. However, Government is proposing to create a class of ‘associated persons’ to be taken into account in considering the exemption that would mean both a franchisee and the franchisor must employ fewer than 20 persons between them. In order to avoid being caught up in this legislation, each franchise would have to apply for exemption on an individual basis. The Bill’s authors are opposed to franchises being granted a blanket exemption because they feel there is a risk that large companies with a corporate structure would move to a franchised model in order to obtain exempt status – something which the Franchise Association has dismissed as ‘far-fetched.’

A more realistic problem in allowing franchises a blanket exemption is that there is no legal definition in New Zealand of what constitutes a franchise. In its submission on the changes, the Association has suggested that its members be granted automatic exemption as a genuine franchise system under the Bill.


Franchise regulation (or the lack of it) could come under review again in an enquiry into the design and operation of Government regulatory regimes in New Zealand.

The enquiry is being carried out by the New Zealand Productivity Commission – an independent Crown entity which completes in-depth reports on topics selected by the Government, carries out productivity-related research, and promotes understanding of productivity issues.

The scope of this latest enquiry includes:

• Mapping existing regulatory regimes and regulators across central government; • Developing a typology of how these might be classified or distinguished; • Providing guidance to inform the design and establishment of new regulatory regimes and regulators; and • Developing system-wide recommendations on how to improve

the operation of regulatory regimes over time.

The New Zealand Productivity Commission was established in 2011 and is based upon the Australian Productivity Commission (with which it co-operates closely). Previous reports have referred to standardisation of regulatory regimes between the two countries. There is currently no regulatory regime which applies to all of franchising in New Zealand, although the Franchise Association of New Zealand does have a Code of Practice by which its members must abide. Membership of the Association is voluntary.

Meanwhile, changes to the compulsory Australian Franchising Code of Conduct will see the ACCC gain greater enforcement powers, including the ability to issue infringement notices and financial penalties of up to $50,000 for breaches of the Code.


NZ economy up, payment times downNew Zealand’s encouraging economic performance this year is translating into a healthier cash flow cycle across the business community, with companies paying their bills faster over the past 12 months.

The latest analysis of business-to-business payments by credit bureau Dun & Bradstreet has shown that companies across New Zealand paid their invoices in an average of 41 days during the second quarter of the year, an improvement of 1 day from a year earlier and 2 days from the previous quarter.

D&B’s Trade Payments Analysis reveals the day-to-day benefit that businesses are receiving from the country’s low interest rates, strong trade relationships, stable risk environment and post-earthquake construction investment. With solid economic activity delivering healthier finances, businesses are in a stronger cash flow position and better able to regulate their expenses.

According to General Manager of D&B New Zealand, Lance Crooks, ‘The caution and careful management that has been evident since the global financial crisis appears to have made businesses leaner, more efficient and better able to manage their cash flow.’


Kiwis have world-record appetite for burgers

Review could raise franchise regulation spectre again

FANZ seeks automatic exemption from employment law

17Find more info at: www.franchise.co.nz/updates

• Fastway’s new CEO for New Zealand is looking to cash in as NZ Post considers cutting mail deliveries down to three times per week. Austin Mortimer says couriers have provided a better alternative to post for parcel shipping for many years.

• A parody which used a much-copied movie clip to depict Adolf Hitler as a rival agent upset about the success of Mike Pero Real Estate created ‘criticism and disgust’ when it was accidentally made available for public viewing on You Tube, claimed the New Zealand Herald.

• A US survey has shown that franchise buyers often end up choosing a business in a completely different industry from the one they first started investigating. The survey showed that the average franchisee considered 8.6 different categories before investing.

• Domino’s has appointed a former pizza delivery driver turned multi-unit franchisee as its new CEO for New Zealand.

Read more

www.franchise.co.nz/updates

www.facebook.com/FranchiseNewZealand

The latest Franchising Confidence Index shows franchisors and service providers are sharing continued optimism across many key growth drivers for the franchise sector. Franchisors were most positive about improvements to franchisor growth prospects, sales levels per franchisee, general business conditions and franchisee profitability levels. Both Franchisors (net 53 percent) and Service Providers (net 67 percent) were positive about prospects for franchisor growth. Small improvements were also recorded in accessing suitable franchisees and suitable locations; however, sentiment toward accessing financing deteriorated slightly.

The results also indicate highly positive Franchisor (net 50 percent) and Service Provider (net 67 percent) sentiment toward general business conditions. These elevated results were shared by other more general

business confidence surveys including the BNZ (net 59 percent in July) and ANZ Business Outlook (53 percent in July) surveys.

Franchisee profitability has been one of the major concerns in recent years, but the recent trend towards improvements in the area continues in the latest survey. Both Franchisor (53 percent) and Service Provider (60 percent) sentiment toward future franchisee sales levels remained high and although they shared a negative outlook on franchisee operating costs the expectations for franchisee profitability were positive overall.

And the International Franchise Association has released a report suggesting that franchise business activity in the USA is at its highest level since November 2007. The IFA says the industry is continuing on a ‘slow but steady growth path’


Pizza Hut opens first new store in NZ for six yearsPizza Hut’s new Te Awamutu store is the first to open in New Zealand since 2007. The Pizza Hut brand is operated by Restaurant Brands, which also owns the NZ rights to KFC, Starbucks and Carl’s Jr.

After some difficult times, Pizza Hut has been a strong performer for the company recently, with sales growing 5.3 percent during the last financial year. Same-store sales rose 21.2 percent thanks particularly to the success of its $4.90 pizza campaign.

For many years Restaurant Brands owned and operated all outlets itself, but has recently adopted a policy of franchising regional (outside Auckland) and lower-volume Pizza Hut outlets. 26 of the 83 stores are now franchised. Pizza Hut Head of Development, Andy Masood, said the opening of the new outlet signalled a renewed focus on the market and was an exciting time for the brand.

Pizza Hut has fared better than US chain Howard Johnsons, which used to have almost 1,000 locations and bigger sales than McDonald’s, Burger King and KFC combined. Today, there are just two outlets left. A fascinating article looks at the reasons why one food giant failed while others went on growing.


Positive outlook for NZ franchisors, franchisees

www.twitter.com/FranchiseNZ

In brief Read more see link below

REPEAT business

Franchise Opportunity: Home & Commercial

Ecomist seeks new franchisees for both home and commercial markets

⇒ From humble beginnings in a Nelson back-yard in 1992, Ecomist has grown to become a multi-million dollar export business. The company

was born out of the invention of an automatic aerosol dispenser to control insects with natural pyrethrins, which are safe for humans. Using the same technology, it then developed a separate line of odour neutralisers which today features a range of over 50 high quality French fragrances. ‘The combination has put us in a league of our own and made Ecomist a familiar name in commercial premises, hotels and hospices, as well as homes,’ says brand and franchise manager Nicholas Schnell.

‘Today we have distributors in Australia, South Africa, Korea and the Philippines, as well as nearly 20 franchisees in New Zealand. Some existing franchisees here have been in the network a long time and are reaching retirement age, so we now have established opportunities available in areas throughout the country.’

Ecomist franchisees serve both the commercial and residential markets. ‘The commercial service includes installation and monthly maintenance of dispensers for odour, fragrance and insect control in business premises. The residential market focuses more on repeat sales of refill cans. It’s about generating ongoing income from repeat business so we are looking for pro-active people with entrepreneurial flair who can offer the kind of exceptional service that renders the opposition irrelevant.’

Variety of OpportunitiesEcomist is a flexible franchise and the investment level reflects the variety of opportunities on offer. ‘Many people run the business from home,’ says Nicholas, ‘but some have opened retail centres. The franchise involves everything you would expect in a small business: planning, cold calling, telesales, marketing, order-taking, packaging and posting and, for the bigger franchises, managing staff.

‘There’s sales support from a dedicated website and 0800 number, and all new franchisees receive training covering the technical side, sales & marketing and business management. They are also encouraged to spend time with an experienced franchisee in their own territory to help them get off to the best possible start. Our simple philosophy is: if you do well, we do well.’

Ecomist territories begin at around $50,000 +gst, and the company is looking for people with business experience plus sound financial awareness. ‘You will make your money by selling products to your existing customer base and constantly looking for new customers. For this reason, the business especially suits couples with complementary skills. A proven track record in sales and/or passion for selling is necessary, as it is important to have the ability to identify sales opportunities and take full advantage of them.

‘We are a fully home grown, Kiwi-invented-and-run company and we offer an opportunity like no other – flexible hours, good growth potential and minimal interference,’ Nicholas promises. ‘Call me now to see if an Ecomist franchise might suit you.’

Advertiser InfoEcomistPO Box 7084 Te Ngae, Rotorua 3042www.ecomist.co.nzContactNicholas SchnellP 0-7-345 1226M 027 543 [email protected]

19

⇒ There are few New Zealand companies that truly justify the use of the word ‘iconic’ but The Mad Butcher is one. When Peter Leitch

opened his first butcher’s shop in Mangere in 1971, he could hardly have foreseen that the strange brand he based on a remark by a mate in a pub would go on to be one of the best-known in the country. Today, The Mad Butcher is a household name with 36 stores around the country, 7 million customers per year and a listing on the New Zealand Stock Exchange. It is also, of course, one of New Zealand’s best-known home grown franchises.

These days, while Peter – now Sir Peter – Leitch remains on the payroll as brand ambassador, the company is run by Michael Morton, who has been CEO for 12 years. Michael remains the majority shareholder after the business listed on the NZAX earlier this year and has a huge amount of franchise experience. He was the operations manager of Eagle Boys before joining Restaurant Brands, moving up to the role of general manager of Pizza Hut.

‘This is an unusual franchise in that our franchisees produce the whole product – they don’t just defrost and heat things, or assemble ingredients to order,’ Michael explains. ‘Each carcase comes in whole and the butcher on site is responsible for breaking it down skilfully into all the right cuts to sell profitably. It’s a high volume, low margin business and it’s vital to get it right. For that reason, most of our franchisees are themselves qualified butchers with practical experience. If you’re a non-butcher, you’d have to have a qualified butcher as manager and that changes the figures. It’s not impossible, but you’d need more capital so you have less debt at the outset.’

The total investment required is around $400,000 +gst. ‘We help suitably-qualified people to find funding, and all the leading banks are supportive – they know just how good a business this can be,’ says Michael. ‘And part of the investment can be funded by lending against plant and equipment, which reduces the ingoings considerably.’

Part Of The Community To help them make the transition into their own business, The Mad Butcher franchisees are fully trained in the business and operating systems that ensure they can make the most of their investment. There’s ongoing support from an experienced team and then, of course, there’s the buying power that comes from being part of New Zealand’s largest independent chain of butchers. All this is backed up by massive TV, radio and national and local press advertising, all centrally co-ordinated to enable franchisees to focus on their local customers and keep them coming back. Weekly specials, recipes and cooking tips are all provided, too.

‘We want franchisees who are out the front talking to their customers, engaging them, helping them to create delicious meals,’ says Michael. ‘Hard-working, honest people who make things happen. And, of course, they need to become a real part of their local community, whether they’re supporting sausage sizzles for the scouts or getting involved with a local sports team. It’s all part of creating that buzz that makes The Mad Butcher such a trusted brand.’

37 New LocationsIn the past few months, that branding has seen some changes as The

Mad Butcher prepares to become even bigger. ‘We have identified 37 new locations where we’d like to open new stores, which will mean doubling the size of the company,’ Mike explains. ‘Many of our franchisees bought shares in the company when it was floated and we told them that we’d look to open four new stores a year until we reach our goal. Well, we’re opening Invercargill and New Plymouth in the next six weeks alone so we might do better than that this year.’

As part of the growth, The Mad Butcher is also broadening its appeal. The company is changing its tag line to ‘New Zealand’s Butcher’ and increasingly pushing quality local product and high standards. ‘As we expand into new areas, so we want to appeal to the widest possible cross-section of people,’ Michael says. ‘We have great people, great products and great prices, and we want our franchisees to reap the benefits of that as we grow.’

By ‘benefits’, Michael means establishing secure, profitable businesses. ‘This is a cash business from day one and can be very profitable, but only as long as you get those margins right – that’s critical. But The Mad Butcher has 42 years of experience behind it and that’s something we know very well.

‘We have a number of new locations coming up that we’d like to find the right people for, and sometimes existing outlets come up for sale too. If you’re interested in joining one of the country’s most successful franchises and you have the necessary ability, contact me – I’d love to hear from you.’

The Mad Butcher is everywhere, it seems – but one of New Zealand’s best-known brands plans to double the number of outlets

Franchise Opportunity: Retail

Find more info at franchise.co.nz - Search: The Mad Butcher

there’s METHOD in the madness

Advertiser InfoThe Mad ButcherPO Box 17 474, Greenlane, Aucklandwww.madbutcher.co.nzContactMichael MortonP 0-9-531 5911M 021 725 [email protected]

Butchers at each Mad Butcher outlet turn carcases into the right cuts to sell profitably. It’s a skilled job for qualified people.

Working for yourself doesn’t have to mean working by yourself.

If you’re considering a franchise, our specialists are here to help.

0800 269 018 bnz.co.nz/franchise

BNZS

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21

⇒ The thought of going to Sydney worried Nick Rising, and it wasn’t from a fear of flying. ‘I was about to commit to buying my own

Cafe2U franchise but, as time drew closer, I became increasingly nervous,’ Nick smiles. ‘It sounds silly now but I rang John Stanton, the franchise recruitment manager, telling him that I was seriously considering pulling out.

‘It was almost as if he was expecting my call. He told me what I was experiencing was quite normal and that the moment I walked into Cafe2U Sydney head office I’d feel a lot happier and positive. Wow, was he right! Everyone, including managing director Derek Black, made me feel welcome and so much part of the Cafe2U family that my nerves soon disappeared. Just as well – I’m loving my new business!’

John Stanton says Nick’s phone call was far from out of the ordinary. ‘Buying a franchise is a big decision that raises a lot of “what if” questions, especially after long careers as wage or salary earners. I’d say most of our more than 200 Cafe2U franchisees worldwide experienced some apprehension before or immediately after signing up but, as Nick found, our family culture is very real and actively supports you through.’

Business model offers extra benefitsLike many who become Cafe2U franchisees, Nick previously knew almost nothing about coffee. He’d arrived back in Auckland last year after 15 years in Brisbane, where he’d worked in sales and business development with a large stationery company. ‘I returned with the intention of finding similar work in New Zealand but there wasn’t a lot going and, being only 51, retirement was out of the question. However, I’d owned a lawnmowing franchise before and getting into my own business again was definitely an option, so I hopped on to the Franchise New Zealand website where I found out about Cafe2U.

‘I was impressed by the business model, the simplicity of the franchise system and the competitive advantages Cafe2U offered, such as own-brand award-winning coffee and a range of menu items such as hot pies, wraps, muffins, slices and cold drinks which add to the profitability of the business for little extra work. And I enjoy meeting people, cold calling, relationship building and being outdoors, so the whole lifestyle appealed.’

Nick moved fast. ‘Within days of making my initial enquiry at the end of January I was meeting with John for the first time, and on March 18 I launched my own business! I was careful, though; I did my due diligence and had sign-offs from reputable advisors such as Franchise Accountants. But despite that, I still had a moment and made that famous phone call!’

Great training and $500 a dayIt wasn’t just the culture but the thorough training that reassured Nick when he arrived in Sydney. The intensive programme covers all aspects of running a successful Cafe2U business including, of course, the art of the barista. ‘I think facilitator Dino Demetriou must have taught me well,’ Nick grins. ‘I keep getting compliments like “Nick, your coffee is awesome!” and “Your coffee is the best out there.” That gives me real confidence in my product and helps spread the word.’

On his return to New Zealand, Nick was accompanied by franchise development manager Samuel Graham for the first two weeks as he established a customer base and an efficient calling routine around his busy Albany territory. ‘Cafe2U guarantees a minimum income of $500 a day over those first two weeks and they were as good as their word. If we fell short Sam just wrote a cheque on the spot to make up the difference, and business soon built.

‘Now I have a solid base of around 30 corporate customers to build on. I leave my last call at around 1.30pm and by three o’clock I’m cleaned up and restocked ready for the next day. It’s a great business and I’m definitely in it for the long haul. I’d seriously consider operating a second unit and also have career options within Cafe2U itself, perhaps as a New Zealand-based franchise development manager.’

Opportunities nationwideFranchise development is a major theme for Cafe2U, with seven franchisees already appointed since the brand crossed the Tasman in July last year, and more on the way.

‘The first franchisees are in the Auckland-Waikato area but we also have interest from Wellington, Christchurch and Dunedin and plan to have over 20 mobile cafés around the country by this time next year,’ says John Stanton. ‘We’re also keen to grow the brand into regional centres: a population of around 30,000 is more than sufficient for a Cafe2U franchisee.

‘For $130,000 +gst the franchisee gets a fully fitted-out Cafe2U Mercedes mobile cafe, training, business mentoring, personal franchise development manager and income guarantee. There’s a nominal flat fee per week regardless of how much a franchisee’s business grows, so you can choose how hard to work and how much to earn. If that sounds like you, get in quick and give me a call today – or visit us at the Auckland Expo on 19-20 October.’

‘Your coffee is awesome,’ new customers tell Cafe2U franchisee


Find more info at franchise.co.nz - Search: Cafe2U

Find more info at franchise.co.nz - Search: Cafe2U

returned kiwi is A RISING STAR

Advertiser InfoCafe2U (NZ) Pty LtdPO Box 158, Shortland Street, Auckland 1140www.cafe2u.co.nzContactJohn StantonP 0508 004 [email protected]

Good training and plenty of practice gave Nick Rising confidence in his barista skills

Nick gets around with his new business - here he is at a Blue Light fund-raising event in Albany


Franchise Opportunity: Leisure & Education

⇒ Sonia South wanted a lifestyle business where she could spend more time with her children so she invested in a franchise with Safe

Kids in Daily Supervision (sKids). It turned out to be everything she could have dreamed of. After four years, her business serves three schools in the Otaki area north-west of Wellington – Levin North, Paraparaumu, and Raumati South – and she has a team of 17 trained staff caring for as many as 70 children a day. Now she has taken on an even larger challenge by becoming master franchisee for the local area.

Taumaranui-born Sonia grew up in Taranaki and started a family with husband Nathan in 2006. ‘I found that while I wasn’t a stay-at-home type of mum, I loved my three children and enjoyed spending time with them so I started to look for a flexible working life that also gave me mental stimulation. sKids provided me with exactly that and more. We opened our first programme at Raumati South Primary in 2009 and have grown exponentially since then.’

The services sKids offers include:

Addressing homework so that working parents have different quality •time with their children. A healthy snack.•Balanced rest and exercise.•Different and imaginative ideas to expand their experiences.•Assistance with school subjects that might require extra time.•

Personal Growth & Business GrowthSonia was attracted to investing in a sKids franchise partly because of her own career as a social worker/therapist for 14 years. Her career covered mental health, intellectual disability, child protection and justice issues for children. ‘I already knew how just a few hours a day before- and after-school could improve a child’s health and happiness, and I saw that sKids was an organisation dedicated to that philosophy.

Having seen the difference that sKids made in her own area, Sonia decided to become even more involved. ‘For 12 months (from May 2011) I took on the role of Area Manager for sKids National Office for the South Island and lower North Island. In this role, I oversaw ten programmes run by the office, set up and developed four new sKids programmes in “green field” sites, and trained and supported new franchisees into the sKids network.’

Along the way, Sonia went on learning, completing a six month business mentoring course through sKids National Office before deciding she was ready for the next step. ‘So now I have become the master franchisee for the Otaki Area, which covers most of the Kapiti

Sonia South is just one of the sKids franchisees building a network of excellence in out-of-school care

Sonia South started as a franchisee herself and is now master franchisee for Otaki

23Find more info at franchise.co.nz - Search: Safe Kids in Daily Supervision

and the Horowhenua districts. This will enable us to make an even greater contribution to our local communities. There are probably a dozen or more schools locally that would benefit from the value and choice we offer parents and caregivers, so we have plenty of opportunity to expand with new franchisees.’

Sonia says an additional bonus of her growing business is the growth she has witnessed among the sKids team. ‘We are making a difference in people’s lives in more ways than I anticipated with our staff blossoming under the training provided by the sKids network. I am a strong believer that a child can become a happy and healthy adult in partnership with parents and caregivers. As Aristotle said, the whole is greater than the sum of its parts.’

Everyone ContributesThe sKids network now serves over 117 New Zealand primary schools and over 3,500 children daily, and its model of care is also serving its first schools in Australia and the United Kingdom. Dawn Engelbrecht, CEO of sKids, says the company takes

great pride in the success of Sonia and over 60 other franchisees who are contributing to the organisation. ‘They all contribute to the constantly-improving standards of care the franchise provides,’ says Dawn. ‘Every sKids programme is run via a comprehensive operations manual and staff training programmes which continually capture new ideas and best practices. We make sure that we share concepts that prove successful by communicating through our network and meeting regularly to compare experiences.

‘Sonia and the many others who have invested in a franchise effectively share in the success of the network. That’s how we produce such great results for parents, children and schools. If you’re equally passionate about working with children and would like to find out more about sKids, contact our business development director, Chris Bartels, today. And if you’d like to join Sonia in a franchise investment in Otaki, let Chris put you in touch so you can hear her story direct.’

dedicated to children’sHEALTH & HAPPINESS

Advertiser InfoSafe Kids in Daily SupervisionPO Box 259 262, Botany, Auckland 2163www.skids.co.nzContactChris BartelsP 0-9-576 6602P 0800 SKIDSBIZ 0800 754 [email protected]

Over 3,500 children attend sKids programmes every day. Franchisees such as Sonia South are helping to make a huge difference in people’s lives.

25

⇒ After 38 years in the corporate world, Christchurch-based Randall Eaton was faced with redundancy. ‘As a keen amateur gardener,

I decided the loss of salary, perks and company car would best be compensated by doing something I really loved,’ he says. ‘But the thought of suddenly going self-employed felt a bit like walking off a plank, and I realised I’d really rather have something with a little more security if I could find it.’

Randall and his wife Marcia realised that a V.I.P. Home Services franchise could be the answer. ‘We loved the idea of having a well-known brand to bring in business,’ says Randall, ‘but what really sold us was the income guarantee. V.I.P. provides a guaranteed income both during the 4 weeks of training and the 12-week induction period that follows. It was very reassuring to have this in the back of my mind as I started, but in fact I never needed it. We’re turning over more than I used to earn and, although there are costs to come out of that, there are tax advantages too. Altogether, the business has proved to be exactly right for us.’

Marcia is an experienced primary teacher and has managed to combine teaching with working in the business. ‘We’ve broken in three sections in our married lives and established gardens together, so I help Randall on the regular round four mornings a week and teach in the afternoons while he does one-offs or project work. We both love it, and we’ve built a huge amount of variety into the work. When you are in business for yourself you are always on the lookout for additional things to do. In fact, we’ve done so well that we have more work than we can handle, so we are in the happy position of selling off customers to other franchisees. That brings in a nice capital sum now and then in addition to the regular work.’

Don’t Depend On A WageEstelle Logan, who, with her husband John, is the national franchisor for V.I.P. New Zealand, says that financial security is an important factor when choosing a franchise. ‘Over the last 30-plus years, V.I.P. has built

its success on helping new franchisees move from relying on others to pay their wages to being totally independent,’ she says. ‘We offer two types of franchises: outdoors (lawnmowing and gardening) and indoors, which includes all aspects of cleaning such as homes, windows, regulars and one-offs. Our initial training for both types lasts four weeks because we put a great deal of effort into teaching them how to quote, operate profitably, manage their time, and especially, grow their business. That’s what makes us stand out from the crowd.

‘Furthermore, we recognise that the prospect of leaving a regular salary behind can be quite daunting, so our system is set up to spread the load in the early days. We pay our new franchisees $500 a week while they are out with their area manager learning the ropes, then there’s an agreed weekly minimum during the induction period that follows. So if they haven’t earned the agreed amount – say $1000 per week – in any fortnightly period, we will top that up immediately on notification. That’s hard cash – not just an offer of extra work that they may not be able to do. Our intention is to allow them to relax and get on with the job of building their businesses.’

The Support Goes OnZana Sajevic bought her indoor V.I.P. franchise on Auckland’s North Shore 13 years ago after arriving in New Zealand from Bosnia with her husband and 13 year old son. ‘I spent a year at language school but we still found it very difficult to get jobs, then we were recommended to V.I.P.’

Zana speaks very highly of the support she has received from V.I.P. over the years. ‘The initial training was excellent and gave us a lot of confidence from the start, particularly in quoting for jobs. We bought a small business with an income guarantee and were able to build it up quite quickly because, thanks to our training, we got a lot of recommendations. We still serve some of our original customers 13 years on,’ she says proudly. And the support is ongoing: ‘I have had some offices referred to me as well and during the recession I lost some to closures, but Estelle immediately found other work for us and continued to help us for several months until things recovered.’

Zana says her recipe for success is to treat every customer’s property as if it were her own. ‘I also have a wonderful franchise behind me – I’m about to go back to Bosnia to see my parents and V.I.P. have been so helpful making arrangements to make that possible. I guess that’s one reason why New Zealand feels like home!’

V.I.P. has opportunities nationwide, ranging from $15,000 to $25,000 +gst and equipment. ‘Call us for a chat,’ Estelle invites, ‘and let us prove we can make the transition into owning your own business that much smoother.’

Guaranteed income and solid support help V.I.P. Home Services franchisees ease into business ownership

Franchise Opportunity: Home Services

Find more info at franchise.co.nz - Search: V.I.P. Home Services

Find more info at franchise.co.nz - Search: V.I.P. Home Services

MAKING THE MOVE to self-employment

Advertiser InfoV.I.P. Home ServicesPO Box 276 186, Manukau, 2241www.viphomeservices.co.nzContactNationwide EnquiriesP 0800 84 74 [email protected]

Randall and Marcia Eaton: ‘The business has proved to be exactly right for us’

Zana Sajevic: ‘I have a wonderful franchise behind me – V.I.P. is one reason why New Zealand feels like home’

26

kiwi franchises GOING PUBLIC

Franchise Development: Growth Strategies

⇒ Recently, a couple of well-known franchise brands have been going public through listing either on the NZX or the New Zealand Alternative

Market (NZAX), which is aimed at smaller and growing companies. The Mad Butcher listed earlier this year, while the international arm of Esquires Coffee Houses is also planning what is called a ‘back-door’ listing (a back-door listing is what happens when a private company acquires a publicly-traded company and thus ‘goes public’ without an initial public offering).

They join franchisors such as BurgerFuel and national master franchisees like Restaurant Brands on the New Zealand market, while companies such as Retail Food Group, which operate several popular franchises here, are listed in Australia. We decided to take a closer look at the reasons for going public, the pros and cons and the impact upon franchisees.

Why Go Public?When BurgerFuel launched its prospectus in June 2007, the franchise was a small company with big ideas. The burger chain wanted to fund its global expansion and decided to raise funds through a public listing. The listing which, in a typically flamboyant BurgerFuel fashion, offered customers shares with their burgers, raised some eyebrows in the traditionally reserved financial world and was far from fully subscribed with BurgerFuel founder Chris Mason and his business partner, Josef Roberts, retaining the great majority of the shares themselves. The shares were offered at $1 each but briefly dropped as low as 18c as BurgerFuel’s initial forays into Australia floundered. However, efforts to establish the brand in the Middle East bore fruit and the company has since produced a flow of good news about the granting of local master franchises followed by a succession of openings. At the time of writing, the share price stands at $1.70 following steady growth through 2012/2013 and the company’s bold move looks to be paying off.

Raising funds for expansion is probably the most common reason for a privately-owned company to list on the stock exchange. However, there are other reasons too. These include creating wealth for the existing owners, broadening the company’s knowledge base through the appointment of experienced directors from other industries, creating a long-term exit strategy for owner/managers and raising the company’s public profile.

In the case of BurgerFuel, another advantage was that publicly-listed companies are required to have a much higher standard of financial reporting and governance than privately-owned companies. While this can be both expensive and onerous, BurgerFuel found that it reassured potential master franchisees overseas and attracted a higher calibre of partner than might otherwise have been possible for a small company from a far-away land.

For The Mad Butcher, the challenge was local rather than global expansion. With 36 stores around the country, when it came to investment the company was ‘too big for most independents and not big enough for most corporates,’ says Michael Morton, who bought the business from founder Peter Leitch in 2007. ‘We had identified 37 more locations which would allow us to double in size but, even though they would all be franchised, there is a cost involved in growing that fast. We didn’t actually need to go public to access the capital we required, but it offered a lot of additional benefits – not least the amount of publicity we gained for the company as The Mad Butcher seeks to broaden its customer base. It’s certainly attracted new shoppers into the stores.’

Michael doesn’t deny that there were also personal reasons for floating the company. ‘I was the majority owner before and I am the majority shareholder now so I’m not planning on going anywhere but one day, when I do, we will have created a market for the shares which will allow me to exit as I choose. In the meantime, I think a lot of the best-performing listed retailers still have majority shareholders very much involved – look at Briscoes, for example.’

Listings Achieve Higher Valuations The Mad Butcher listing (another back-door listing, through Veritas Investments) valued the company at $40 million and the offer was heavily

Some familiar franchise names are appearing on the NZ stock market. Simon Lord looks at the reasons why


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over-subscribed with investors, institutions and franchisees seeking three times the number of shares actually offered. Shares were issued at $1.30 in May 2013 and are trading at $1.40 at the time of writing.

Valuing a franchise is always an interesting challenge as, although group turnover might be $150 million, only a percentage of that actually comes to the franchisor through fees and product supply or other arrangements (see page 64). However, in the right circumstances, listing a company will often achieve a higher valuation than would be paid by a private purchaser. Dr Callum Floyd, of Franchize Consultants, explains: ‘When a franchisor business is sold outright, a private purchaser or group is often willing to pay a certain figure that falls within a common multiple range based on the level of historical and/or future expected earnings. For many franchise and non-franchise companies that choose to list, the multiple achieved is often greater. That higher multiple can be put down to many factors, not least that a share market listing provides market liquidity (enabling investors to easily buy and sell shares) and the ability for investors to diversify their investments and risk. Self-selection may also play a part here: ie, only those franchises capable of achieving the higher multiples will list in the first place.

‘But listing alone doesn’t provide for a greater valuation. Indeed, two seemingly-identical listed companies can trade on quite different earnings multiples. Key factors impacting listed price to earnings-based valuations include the history of revenue and earnings, perceived market opportunity, profit margins, expected revenue and earnings growth and insider ownership. Hence it is not uncommon for some high-growth oriented companies, like BurgerFuel, to trade on an earnings multiple exceeding 30-50 times.’

‘The important thing for investors is not the size of the company so much as its potential for growth. Many years ago, New Zealand franchise Stirling Sports suggested that it might list on the NZX. The idea was hammered in the financial press, because at that time Stirling Sports had perhaps 50 outlets and was already apparently at full market penetration. But The Mad Butcher’s plans to double in size struck the right chord,’ Callum says.

Everyone Sees Your FiguresCallum then highlights one of the drawbacks of listing a company – the need to publish information about a business that franchisors normally prefer to keep confidential. ‘If you look at a company’s prospectus when it is seeking investors, it has to detail all sorts of information that its competitors might otherwise not know: royalties, fees, supplier rebates and, in the case of McDonald’s, rent and return on land.’

Callum’s point is underlined when I look at a copy of the original BurgerFuel prospectus in the Franchise New Zealand files. This detailed that in 2007, royalty fees were 6 percent of turnover, the marketing levy was 4 percent and average store turnover was $1,077,804 per year, with an average EBITDA of $102,544 per year after a franchisee’s salary of $35,000 per year. It also quoted a weekly record sales figure. These are all statistics that, six years ago, BurgerFuel’s competitors would have seized upon with great interest as offering points for comparison.

Its not just competitors, either. Callum recently wrote an article for Franchise Times in the US that took the information publicly reported by McDonald’s USA to create some benchmarks against which other franchises could measure themselves. ‘For me, one of the attractive things about McDonald’s Corporation in the US, for example, is their earnings strength (or quality),’ says Callum. ‘On one dimension, McDonald’s net income (or profit) margin was a strong 20 percent creating $5.5 billion profit from circa $27 billion in annual revenue. Looking at profit per store, $5.5 billion over 33,510 units equates to a level of franchisor profit exceeding US$160,000 per store.

‘Similarly, looking at Veritas and the Mad Butcher’s figures published in their prospectus, as well as their release of 28 August 2013, the franchisor is projected to generate (after initial listing costs) the equivalent of around NZ$160,000 profit per store. That’s high compared to many New Zealand franchisors and is the result of a combination of income streams (from royalties, supplier rebates and product margin) as well as an efficient cost structure. The prospectus forecast they would open an achievable four new stores a year and investors thought that was reasonable, which made the share offer attractive. Vitally, they’ve already opened two new stores this financial year so they are keeping their word to the market.’

Under Constant ScrutinyOf course, taking a company public is a huge undertaking. The NZX sets very strict compliance, reporting and governance standards, and that means

taking the best possible advice. ‘All in all, it could cost up to $1 million in professional fees and that doesn’t include the time you put into it yourself,’ Michael Morton says frankly. ‘Then you have all the procedures, policies and disciplines that you have to comply with when you are a public company. In some ways, it can take away some of the freedom and nimbleness with which you operate, but on the other hand it removes the danger of knee-jerk reactions.

‘I also have the benefit of working with a highly-professional board rather than making decisions in a vacuum. The six directors of Veritas have experience at board level in everything from high-level retail and alcoholic beverages to supermarkets, food and fashion, as well as considerable experience in the financial markets. That’s a great advantage for the company and for our franchisees, too.’

Ah yes, the franchisees. How do they feel about the franchisor now being a listed company? ‘In some ways, not a lot has changed. I am still running the company on a day-to-day basis and all the publicity around the listing has helped them realise that they’re involved in a well-respected business and they’re responsible for a lot of that. Maybe three-quarters of our franchisees took up the opportunity to buy shares themselves. A lot had never been in the share market before, so I think that’s a very positive sign about our people and where we’re going.’

And Michael is sanguine about the constant scrutiny that the company will now come under every time it makes an announcement. ‘I was general manager of Pizza Hut, which is operated by Restaurant Brands, and I know how it works. If you get something right, you get praise from the market and the share price goes up; if you get it wrong, you get caned. It takes quite a few years for the market to get confidence in you and allow for the odd hiccup.’

Callum Floyd agrees. ‘One of the downsides of listing is that there is a fair amount of hassle involved: making announcements in a careful and timely fashion to avoid charges of insider trading, courting investment houses and managing public meetings. That can all be a distraction if you aren’t big enough to manage it all, which is why going public has been the exception rather than the rule for franchisors to date.’

Franchisees Versus Shareholders – A Win-Win?One franchise group which is about to take the plunge, though, is Esquires Coffee Houses, which will become part of Cooks Food Group through a back-door listing if all approvals are granted. While ownership of the Esquires brand, which originated in Canada, is complex, since the announcement was made Cooks has gradually been acquiring franchise and master franchise rights around the world to add to the empire already established by brothers Stuart and Lewis Deeks.

‘We’re going public because we want to grow aggressively – we want to be the next Starbucks, only better,’ says Stuart. ‘The higher valuation generated by listing raises funds for us to do some really exciting things and control the way we grow. It’s about building a strong, sustainable set of numbers and sharing the vision with investors. In turn, they can share the risk and reward but they don’t have to buy the whole company. It should mean we’re a better-funded organisation able to provide better services and assistance to our franchisees and make their businesses worth even more.’

But isn’t that approach at odds with the pressure on a publicly-listed company to return the highest possible dividends to the shareholders? ‘I think that depends on the company philosophy,’ Stuart suggests. ‘There’s no point in producing record profits if the franchisees are hurting, because the company just can’t survive long-term on that basis, so you have to have an inclusive culture that invests in people and the system. That’s something any wise prospective franchisee or shareholder or will look at when considering their own investment. At the end of the day, a company built on a strong foundation with a long-term outlook will benefit both.’

And Stuart concludes by summing up the reasons for going public very succinctly: ‘Yes, ultimately we would like to make money, but you don’t make money simply by floating a company – you get rich by bringing on board the skills you need and investing in long-term growth. And that means helping others – franchisees, master franchisees and shareholders – to prosper alongside each other. Just like franchising itself, the idea is a win-win for all concerned.’

About the AuthorSimon Lord is Editor of Franchise New Zealand. Disclosure: Callum Floyd has shareholdings in both McDonald’s and Veritas.

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29

⇒ KiwiYo might sell frozen yoghurt seven days a week, daytime and evening, but it’s far from being just another retail outlet. ‘KiwiYo is

basically a form of entertainment where you create your own product and show it off to your friends, in-store and on-line,’ says Franswa Janssen, Director of Franchising and Logistics for the fast-growing chain. ‘It’s also become a safe alcohol-free haven for young people and has tapped into the world of social media like no other company.’

KiwiYo’s recipe for success is based on offering 10 different flavours of soft-serve frozen yoghurt, which change weekly from a selection of over 200. Once you’ve helped yourself to your favourite, you move on to the next section where there are no fewer than 60 toppings available – fruit, cereal, candy, nuts, etc. Then you can choose from a whole range of sauces and sprinkles to top it all off. Finally you put your personalised product on a scale and pay by weight. Afterwards, join your friends in the YoBooth to be photographed with your creations and upload them to Facebook. ‘It’s an approach that gained a phenomenal 23,000 “likes” in the first year and it’s increasing steadily by the month,’ says Franswa.

‘The result is massive demand for further stores and our task now is to satisfy that expansion without “over-populating”. To that end, we have earmarked a number of areas nationwide where we’re looking for franchisees to open a KiwiYo haven.’

Award-Winning SuccessAs you’d expect from the name, the KiwiYo brand was created in New Zealand although its founder, CEO Norman Markgraaff is from South Africa. The successful businessman was granted his visa provided his proposed business employed at least two Kiwis. ‘Last time we counted we had 85, so I think even Immigration are pleased!’ he laughs.

In fact, Norman recently won the Business/Investor of the Year award from the New Zealand Association for Migration and Investment. It’s one of a number of awards KiwiYo has won recently, including three from the New Zealand Retail Interior Association: an award for Colour, a win in the Cafés and Food Courts category, and a joint group win for Nourishment.

Tapping Into Youth CultureThe first KiwiYo in New Zealand opened in December 2011 in Mission Bay. Among the impressed customers spilling out on to the pavement most nights of the week was Vimal Chaudhary. ‘What struck me was how professional it all looked,’ says Vimal, who himself immigrated here in 2005 from Fiji. ‘The store looked very attractive, there were hundreds of teenagers and I just thought this was the way to do business. The franchise had clearly tapped into something which combined all the kinds of things younger people find exciting today.’

Despite being wholly impressed with the KiwiYo concept, Vimal – a former banker – didn’t charge in blindly. ‘I did a lot of research into the background and even went to the States to look at yoghurt stores over there. I reckoned the sales might drop a bit in winter but I was satisfied there was a very solid business.’

Vimal opened his Manukau store in June 2013 and, even though it was winter, ‘We have only had one surprise and that is the number of staff we need to keep the crowds moving!’ he laughs. The success of Manukau and other stores in Botany Town Centre and Takapuna has also proved that you don’t need a beach culture to make KiwiYo work – it’s an attraction in itself.

‘There are three keys to the success of KiwiYo: the product, the staff and the cleanliness,’ says Vimal. ‘Coupled with social media this makes it very attractive to teenagers of all ages! When we have new flavours or anything exciting we just put it on Facebook and thousands read it in no time. It is an amazing concept and very professional – the franchise has been so supportive from day one. I’m looking to open one in Fiji very soon!’

Prime Locations Available NowKiwiYo is looking for franchisees for 26 prime locations around the country, says Franswa. ‘The investment will generally be between $350,000 and $500,000 and you can look for an above-average return. We also have a flood of enquiries from Asia and have just signed a deal to establish KiwiYo in Thailand, so let us know if you are interested in other countries, too.’

KiwiYo delivers a ‘shop in a box’ for new franchisees. ‘We include everything, from the screws to hold brooms in cupboards down to the cloths to wipe down the benches. There’s full training and we provide awesome support; our experienced franchise team has a very diverse set of skills and we’ve done everything from unblocking the drains to solving IT problems. That is something our new franchisees have appreciated – if something has gone wrong we’ve always had the answers.

‘We want franchisees with energy, enthusiasm for young people, commitment and a head for business,’ he says. ‘If that’s you, step forward now. KiwiYo is selling fast!’

KiwiYo is a teenage haven that combines tasty treats with online fun


Find more info at franchise.co.nz - Search: KiwiYo

Find more info at franchise.co.nz - Search: KiwiYo

SOCIAL PHENOMENON to sweep the nation

Advertiser InfoKiwiYo95 Tamaki Drive, Mission Bay, Auckland 1071www.kiwiyo.co.nzContactFranswa JanssenP 0-9-521 6996 M 021 339 [email protected]

Advertiser Info

FANZ Member: No

Photos

Norman won the Business/Investor of the year award at the NZAMI (New Zealand Association for Migration and Investment) Inaugural Awards 2013.

Photo of Vimal the day his shop in Manukau opened, this is also the shop that was presented at the Retail Design Awards and they won the three RED awards for this.

2203_KiwiYo_AwardGroup.jpg

2203_KiwiYo_RED_awardsV2.jpg

Vimal Chaudhary (left) with Norman Markgraaff at the Manukau outlet which won three retail design awards

More awards for KiwiYo as MD Chantal Janssen (far left) accepts the award for Business/Investor of the Year on behalf of Norman Markgraaff

still offer a good income to the owner.Many service franchises are relatively low risk.•Some offer a guaranteed income or a work guarantee for a limited time •

(with conditions attached).There is a wide variety of types of service franchise available.•There is high demand for many services in a modern economy. In the •

business-to-business market, some companies are outsourcing more these days rather than keep non-essential services in-house .

Service franchises offer a good way of using your skills rather than •capital to get into business.

They usually require less capital, making them more affordable.•The overheads in many service franchises are low; eg, mobile services •

do not need expensive premises and many business advisors work from home. This means they tend to return a positive cashflow quite quickly.

Franchisees are not restricted by having to work retail hours. This means •you may be able to enjoy flexible hours to suit your lifestyle (however, bear in mind that working shorter hours may directly impact your income).

Service franchises tend to require more direct input from the owner •than a typical retail operation. This can be both a benefit and a drawback.

Potential DrawbacksWhile returns on investment are high, many service businesses may •

offer low absolute profits.Earnings may be limited by the hours that can be physically worked by •

the franchisee or by the franchisee’s own abilities.

⇒ Service and business-to-business franchises are very popular with franchise buyers at the moment. So what is a service franchise and

what are the benefits and drawbacks of owning one? Also, if you don’t have significant assets of your own, how do you go about funding the purchase of such a franchise?

What Is A Service Franchise?Service franchises operate in a huge variety of industries. There are opportunities covering a wide range of occupations and skill levels as well as investment levels, such as: business coaching; bookkeeping; real estate agents; travel agents; handymen; pool services, lawn mowing and garden services; commercial and domestic cleaning; taxis; automotive services; education and childcare; mortgage brokers; computer services; hairdressing; appearance medicine; transport and courier services and many others.

From this brief list, you can see that most people would be able to find a service franchise that suits their skill level, interests, risk profile and investment ability.

Potential BenefitsService franchises tend to offer a relatively high return on •

investment compared to industries such as retail or manufacturing. For example, establishing a mobile pool cleaning business may cost $60,000 versus $400,000 for a retail swimming pool shop, yet


funding a SERVICE FRANCHISEService franchises present unique challenges with regard to funding. Daniel Cloete from Westpac looks at some of the issues

Buying A Franchise: Financial Matters

For more info please call 09 448 0280 or email [email protected]

Plumb’In, the largest bathroom bulk retail specialists in the market.

So if you are looking for a business that offers a challenge with great support then join the team that pulls the plug on the daily grind and makes everyday a great one!

Shrewd buying, low overheads and exclusive products mean that we can offer direct prices on many of our lines, without gimmicks.

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For more information:

Walter or Ting 09 448 0280

Email: [email protected] visit: www.plumbin.co.nz

The business to pull the plug on the daily grind

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Proven Successful Franchise SystemEstablished Brand & Supply ChainClear Set Up Cost & BudgetingFull Business & Marketing SupportFull Training & On-going Assistance

“Give us a call”

Risk can be higher, especially in businesses that require skills such as •excellent selling ability or in marginal or new industries.

It could be difficult to grow the business beyond a certain size because •franchisees are not allowed to employ others, the area may be limited, or the owner can only do a finite amount of work.

Many service businesses require a lot of selling, which doesn’t •suit everyone.

The small size of some service businesses in itself increases the •perceived risk to others, making it difficult to fund or sell.

A high level of skills may be required in some franchises: for example, •plumbers or business advisors may require qualifications or experience.

The business tends to be very dependent on the owner and/or key •employees. This can present significant risk in the case of illness or staff departures: eg, a real estate agency where the star seller leaves and takes their clients with them.

There are, of course, a number of other advantages and disadvantages and a good business advisor (specialist franchise accountant, lawyer and banker) will be able to point those out for any specific opportunity.

Funding To Buy A Service FranchiseSome of the characteristics mentioned above can make it more difficult for banks to fund service franchises. Although return on investment may be good, making it possible to earn, say, $150,000 per annum from a $100,000 investment as opposed to the $450,000 that might be required for a retail operation, there are few assets, stock or fit-out for a bank to fund against. In addition, the perceived risk to the bank is higher because it depends to a large extent on the skills of the franchisee.

In many cases, the generally lower capital requirements of service franchises mean that prospective purchasers are able to provide security for loans in the form of equity in property or other assets. What happens, though, if you want to buy one of the higher investment level service franchises or a highly profitable existing business with a lot of goodwill but little in the form of assets?

This is where it pays to deal with specialist franchise bankers with a real understanding of the cash flow and the value of the intellectual property and systems of the specific business. When seeking funding, having excellent information and a good understanding of the business model are vital, and a banker who has good knowledge of the franchise can not only help address the funding needs but can also add to your understanding of the business.

The other important aspect here, as we have seen, is the intending franchisee’s own skills and abilities. Because these are crucial to the success of the business, when you approach the bank for funding it is important to have a CV or summary of your experience. This can help the bank to evaluate risk and improve the likelihood of your receiving the funds you seek. Once again, the more familiar the banker is with your chosen franchise and its other franchisees, the better they can help you.

SummaryThe services sectors of •

franchising offer a wide range of exciting opportunities with relatively low investment and high returns.

Although not without risk, these •are sectors where people can use their time and skills to have a secure and profitable future.While the lack of actual assets can cause some funding issues, these are best resolved with the assistance of a specialist franchise banker.

Find more info at franchise.co.nz – Search: Westpac 31

About the AuthorDaniel Cloete is the National Franchising Manager for Westpac. You can contact Daniel or the Westpac Franchise Team on 0800 177 007 or email: [email protected] information contained in this article is intended as a guide only and is not intended as an exhaustive list of matters to be considered. Persons entering into franchise agreementsshould seek their own professional legal, accounting and other advice.

Areas available, Enquire now: 0800 804 104www.cookright.co.nz

Providing commercial kitchenproducts and services,saving time and money.

• Large potential customer base• Wide range of revenue opportunities• Low overheads• Simple business to operate

Cookright Franchisees theCommercial Kitchen Heroes


⇒ One of the keys to succeeding in business is to put yourself in the right place at the right time. That’s not just a matter of luck – it

requires research, planning and commitment. These were the qualities Tim Walters brought to the table when he became a Refresh Renovations franchisee just north of Auckland and, just three months later, he was so convinced about his new future that he invested in a second territory.

After selling the successful printing business he’d owned for 11 years, Tim had worked with the new owners for 18 months while he looked for his next challenge. ‘But I’d always had a passion to do something different and I’d dabbled in property before, so I knew that there were some real opportunities in the building business. When my colleagues brought the Refresh Renovations franchise to my attention I realised there was something I could really get my teeth into.

‘Refresh Renovations only started in 2011 but there was a huge level of expertise that had gone into its development. The founders spent five years researching the concept and the more I looked, the more I liked it. All the work, processes, structure and systems are in place and the company has the support of some of the biggest names in the building industry. My fellow investors and I realised that this was a great opportunity to build a business in a massive market that would provide a real return for our money.’

Astonishing Growth

Refresh Renovations is the brainchild of leading business and marketing strategy company Traffic. Traffic’s research had revealed that there was no company specialising in property renovation, although the market was actually much bigger than for new building. ‘Renovation was mostly handled by amateurs or new home builders “filling in” between jobs,’ explains Graham Franks, Refresh Renovations’ franchise manager. ‘The outcome was poor results and a lot of disappointment. A survey by the Department of Housing revealed that some 40% of customers were unhappy or had a dispute over their renovations. Yet the latest data from BRANZ estimates the renovation market at an astounding $6.6 billion per year. It is predicted that, while the new home market will flatten off, renovations will continue to rise to nearly $10 billion by 2017, and $11.5 billion by 2021. Refresh was created to serve this market by providing

a trusted national network of professional renovation specialists.’

The new franchise took off immediately thanks to a very effective website, a fast-growing database and its own glossy magazine called Renovate (see renovatemagazine.co.nz) ‘As a result, our franchisees regularly find they are offered more work than they can handle,’ says Graham. ‘It’s been highly successful and we already have nearly 30 franchisees on board and working flat-out. In addition, thanks to the carefully-developed project management systems and software, and our key partnerships with major brands within the industry, we are getting great results. That’s proved by the scores of referrals franchisees are getting from satisfied clients.’

First-Class SupportTim Walters was well-backed in his decision to join Refresh Renovations. ‘My fellow investors both have legal backgrounds so they checked

out the nitty-gritty and my wife, Kirsty, and our friends saw it as a great opportunity to provide a much-needed service. I had superb training and product development awareness and that has been on-going. I can only describe the back-up as excellent. Like any franchisee you have to be prepared to work with your franchisor – you can’t expect them to do it all for you – and I’m pro-active in getting what I need, but I have to say they are first-class at supporting their franchisees and generating business.’

Tim found the potential to be even bigger than he originally thought, which encouraged him and his fellow investors to snap up a neighbouring territory as soon as it became available. ‘It was too good an opportunity to miss and gives us even greater coverage in the local market. It’s also enabled us to split roles and focus on the things we’re really good at. I’m concentrating upon the sales and marketing and have appointed a full-time project manager to apply the Refresh systems and see every customer project through to a happy conclusion.’

No Building Background RequiredTim says there are three vital ingredients to running his new business: ‘Communication with clients; getting all the hard questions asked up front; and then meeting the budget and time frames – just like any business,’ he says. ‘But with Refresh, you have the tools, the systems, the contacts and the back-up to make even the most complicated projects manageable. I haven’t once questioned myself about the decision to buy Refresh Renovations, and I really don’t think I will.’

Graham Franks says that you don’t need a building background to be a successful Refresh Renovations franchisee. ‘The key ingredients are a head for business, a genuine interest in property and a talent for working with people,’ he says. ‘So if you’d like to tap into this booming market, give me a ring and find out if your local area is ready to be Refreshed.’

Business builder gets his teeth into a massive market with Refresh Renovations


Find more info at franchise.co.nz - Search:

OPPORTUNITY KNOCKS in fast-growing sector

Advertiser InfoRefresh RenovationsPO Box 37 941, Parnell, Auckland 1151www.refresh.co.nzContactJon BridgeP 0-9-301 0207M 021 454 [email protected]

Tim Walters: ‘Refresh are first-class at supporting their franchisees and generating business’

One of the fastest growing franchises in New Zealand.

Read more.

Almost half of franchises established. Don’t miss out!

Already established

Going fast

Judging by their current expansion rate, BurgerFuel is picking up speed in their race to conquer the world.

They have fast become a success story, not only in New Zealand and Australia where they have 33 stores, but in the Middle East, where they now have 16 stores and more on the way. Their success can be attributed in part to their delicious gourmet burger range that combines taste and freshness to deliver the ultimate burger experience. They use 100% pure New Zealand grass fed beef, natural butterfly cut chicken breast, New Zealand and Australian Vegetarian Society approved patties, fresh hand-made salad ingredients and of course their famous natural aioli and batch-brewed tomato relish. The menu also includes vegan, gluten-free, Halal and kids options, ensuring they accommodate the requirements of a range of different customers.

But it’s not only the burgers that have made this company such an institution in New Zealand and across the globe. Their culture and aesthetic sets them apart from other gourmet burger brands and gives them a distinct

edge. Their marketing campaigns and communications are often irreverent and filled with dry humour and ‘piss-takes’. They have a love of anything engineering related, so cars and other ‘machines’ play a big part in the BurgerFuel world. The BurgerFuel ‘Promo Teams’ can often be found at events or driving round town in one of the branded purple cars, which have become as iconic as the burgers themselves. The stable of BurgerFuel Machines includes a 1967 Chrysler 300, a 1970 Chevelle Malibu and a 1982 Chevy El Camino (pictured above).

On visiting the BurgerFuel Headquarters in Auckland, their unique company culture is highly evident. The foyer area is set up like a man cave with pool and table tennis tables, Playstation ‘Racing Rigs’, an always-stocked drinks fridge and an assortment of BurgerFuel bean bags, providing a healthy distraction from planning world domination. In the corner sits the studio for Radio BurgerFuel, the company owned radio station that broadcasts to all BurgerFuel stores as well as online. Radio BurgerFuel is just one of the internal initiatives designed to project the culture

of the brand and engage customers through various channels, in this case, music. The basement level is home to the BurgerFuel Athletic Department (BAD), the company gym run by a BurgerFuel sponsored mixed martial arts fighter. Weekly sessions are put on for HQ staff and key brand partners such as Sony and Puma who all collaborate with the brand on a regular basis. As New Zealand Brand Manager Alex Griffiths puts it, “We want our staff to feel good and healthy and that is a key part of the way we do things at BurgerFuel. You need to have lots of energy when you’re building an empire”.

When it comes to their franchisees, BurgerFuel seems to attract a special breed – they are people that embrace the unique culture, are passionate about the BurgerFuel brand, have an affinity with food, experience in customer service and a desire to develop, innovate and improve. BurgerFuel HQ works hand-in-hand with the franchisee on all aspects of the business, from the initial store build, fit-out and hiring of staff, to ensuring only the best quality, freshest ingredients are delivered to stores at the best possible price. New franchisees are fully trained before a store opening and then BurgerFuel HQ provides ongoing operational, IT and marketing support to ensure the stores are not only running efficiently and following BurgerFuel tried and tested procedures but are highly profitable businesses in their own right. As BurgerFuel Australasia General Manager, Craig Notman, puts it, “We want our stores and our franchisees to be successful and profitable. This ensures we are a company that people want to be a part of – they are buying into the BurgerFuel lifestyle and dream”.

FOR MORE INFORMATION CONTACT [email protected]. FOR A LIST OF STORES OR TO VIEW AVAILABLE TERRITORIES CHECK OUT

LIFTING THE BONNET ON BURGERFUEL

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35

⇒ Franchising is not an infallible guarantee of success – if it were, everyone would be doing it. Even within well-established,

successful franchise networks, it’s quite common that at any time there may be individual franchisees with financial problems. They might have borrowed too much, spent too much, be struggling with sales or underperforming on profitability. Whatever the reason, if it’s not tackled swiftly then the result can be a closed store. Such a failure can have a shattering impact on the franchisee, and it also affects their families, staff, franchisor, fellow franchisees and the wider community.

Of course, you don’t want that to happen to you so, when you’re starting a business, it’s worth taking the time to learn from those who have gone before. If you understand the risks involved, you can put strategies in place to manage them.

We surveyed over 1,100 people in the franchise sector about what sends a franchisee broke and found several common themes. We hope this article will help you understand the issues and be aware what to look out for when establishing or managing your own franchise. It could also form the basis for a useful discussion with your franchisor and fellow franchisees. You can then set up systems to avoid these common problems, identify them early if they do occur and reduce the risk of failure for all concerned.

So – here are the seven top causes of financial failure for franchisees. Read through the list and look out for the recommended tips.

1. Things Have Changed Around YouChange is constant. In the last few years we’ve had the GFC, online shopping, digital technology and everything from droughts to earthquakes – not to mention increased competition in many sectors. Many of these have had an adverse effect on revenue or costs. Unless people actively consider the impact of such changes, they tend to continue doing what they’ve always done. But when cost structures change, a business can end up going backwards financially, so it’s important you know how much you need to sell in order to pay your bills and make a profit.

Tip: Implement a structured process to review your costs and recalculate your sales targets as you respond to changes in the business environment.

Next steps

Set a time to carry out an annual review (this often works best in January). Assess the following items:

• Customer base. Has this changed? Older, younger? Different wants or needs?• Demographics. What will be the ongoing impact of any changes in your area?• Competitor actions and pricing. What is the effect on your business? How should you respond?• Rent. How much will this increase? What will be your new sales target?

2. Difficult ChildhoodThe phrase ‘Difficult Childhood’ refers to the challenges caused by lack of attention to financial matters during the franchise purchase and start-up phase. It can lead to over-optimistic revenue and profit expectations. It can also result in lack of start-up and initial funding.

Tip: Do an alternative budget and cash flow that allows for higher costs and lower revenue than you might initially hope for (consult your accountant or see www.smartfranchise.com.au for details on how to do this).

Next steps

• Estimate your expenses for running the business in its first year. • Be sure to include a realistic allowance for living expenses. • Work out what level of sales you need to achieve in order to cover your expenses.

3. Lack Of Business Rigour‘Business Rigour’ refers to the financial and management practices that help ensure a business is well-managed. Our survey found that a proper structure is often lacking at franchisee level. As a result, financial and business information is not used effectively, resulting in variations in performance between franchisees even in the same system.

As one respondent put it, ‘Many business owners are flat out with the day-to-day issues. They have no structure for running the business.’

Tip: Look for franchisors who have the structure themselves to make you skilled in managing your business and understanding the financial side.

Next steps

• Set dates for regular business meetings (monthly often works best). Identify key items to discuss at each meeting: for instance, sales and marketing, operational issues, staffing levels and concerns, finance and upcoming expenses.

4. People Do Crazy ThingsOur survey showed that some people do ‘crazy’ things. They might buy a boat, or jet-ski, or spend money on extravagances. These have the potential to hurt your business if you can’t afford it, or if essential payments can’t be met because the money has been spent elsewhere. Nobody gets up in the morning meaning to do something crazy, but decisions that ‘seemed like a good idea at the time’ can cause difficulties if there’s a downturn or if a tax liability has been overlooked.

One franchisor simply teaches, ‘Taking on additional personal commitments will increase your financial risk.’ It’s a lesson worth remembering.

Tip: Regularly look ahead at your financial commitments. Cash flow planning is a ‘must’ and needs constant attention.

Next steps

• Review your current financial commitments; these may have changed recently. • Before you make extra financial commitments, make sure you have considered the impact of any downturn in your financial situation. • Put extra cash aside for emergencies before spending on extravagances.

5. Not Enough SalesTo keep paying the bills and increase your profit, you must continually drive sales. Sales are the lifeblood of business, but many people don’t know what to do, or how to do it. Business owners must be committed to the pursuit of profitable sales in order to pay the bills. Their skills must be razor-sharp and the training must be ongoing.

Tip: Franchisees should develop their sales skills and regularly train their staff in sales. This is fundamental to success!

Next steps

• Identify sales targets for the next three months. Update these on a monthly basis so you always have a clear picture of the sales targets ahead. • Review your sales results for the last month and identify what worked and what didn’t. What are the areas in which you can improve? • Schedule a monthly sales training session for you and your staff. This should be non-negotiable.

Peter Knight and Kate Groom of Smart Franchise surveyed over a thousand people to find out how to help franchisees succeed

Franchise Management: Financial Matters

Find more info at franchise.co.nz

7 THINGS THAT CAN SEND A FRANCHISEE BROKE(and what to do about it)


6. Pride And EgoBusiness owners – even franchisees – want to be independent and successful. However, sometimes their success can blind them to problems when they occur and the need to make change. If their business isn’t working, or if financial problems arise, pride may cause people to be reluctant to speak up. It’s important to work with your franchisor and regularly review your business to identify problems early and be prepared to seek advice.

Tip: Develop your business acumen and use self-assessment resources. Include invigorating financial sessions at conferences and meetings.

Next steps

• Regularly update your business and financial management skills to help you discover any areas for improvement. • Compare your figures with others, if your franchise group does benchmarking (if it doesn’t, lobby for it!)• Involve and consult your field support person to analyse information and look for improvements. • Review your business plan on an annual basis and be prepared to ask for help if you can see you’re falling short of the goals you’ve set for your business.

7. Not Looking AheadOne of the main reasons businesses go broke is that they didn’t see their upcoming financial commitments or anticipate seasonal factors. It becomes obvious after the fact, but their income was too low and expenses were too high. This highlights the importance of planning ahead.

Here’s a sad comment about a failed franchisee: ‘If only they could have seen into the future, it might have been different.’ No-one can see into the future but you can analyse, predict and plan. That’s why franchisees should be like meerkats – those perky little animals are always alert, with their heads up and looking around.

To quote some wise words, ‘Where you are today is a result of the activity

in the past, so plant the seeds for good growth in the quiet times.’

Tip: Franchisees must constantly manage their financial position. You need to watch for the early warning signs of impending danger and make plans to generate more sales, find new customers, reduce staffing or whatever is most appropriate.

Next steps

• Prepare a cashflow forecast. Don’t forget to take seasonal patterns into account for sales and expenses. This will show the impact of seasonality on your cash flow. • Keep an up-to-date list of money you owe and when it’s due to be paid. This will ensure you always know what’s ahead.• Discuss options with your franchisor. They are likely to have seen it all before and know what to advise.

ConclusionThe risks outlined above are not unique to franchises, of course – they apply to any business. Where a franchise differs from an independent small business is that it should have systems in place to help you avoid many of these traps, comparative figures to help you spot the signs early, and a support team to assist you in knowing what to do about them. However, unless you have the necessary knowledge yourself and put in the proper structures to manage your business effectively, all that assistance may not help. Sadly, our survey shows, many franchisees don’t.

Our advice is to establish good systems for business and financial management from the very beginning or, if you’re already up and running, to seek help in putting them in place now. By doing so, you can avoid the 7 Things That Can Send You Broke and increase your chance of success.


About the AuthorPeter Knight, FCPA and Kate Groom of www.smartfranchise.com.au specialise in business and financial management for franchises. They run workshops, present keynote speeches and provide practical resources to help your franchise business ‘go better.’

37

⇒ If it ain’t broke, don’t fix it. That would be an understandable

approach when you have a multiple award-winning business like Columbus Coffee but, says the franchise’s managing director, that’s not the Columbus way. ‘After our recent huge growth, we felt the time had come for a substantial review of the whole business with our franchisees, suppliers, consultants and all our stakeholders – including our customers,’ explains Graeme Tait. ‘It’s taken 12 months and now we’re starting to see the new initiatives bear fruit.’

Refreshing The MenuOne change has been a new focus on food. ‘We discovered that although the Columbus Coffee brand was well-liked and admired, many people didn’t realise that every one of our 53 cafés has its own on-site kitchen,’ Graeme says. ‘Our food is made fresh daily by dedicated chefs, so we realised that was a real opportunity for us. We’ve now appointed highly-awarded chef Sarah Primrose as Menu Development Manager and will be strengthening our menu over the coming months.’

In fact, that’s already happened with the launch of a partnership between Columbus Coffee and the best-selling Healthy Food Guide magazine which will see healthy menu items offered across the country. The Columbus and Healthy Food Guide teams worked together to develop dishes that were delicious for customers, profitable for franchisees, and met the magazine’s nutrition criteria for low saturated fat, low sodium and lots of vegetables. The result is a range of dishes which are now going national. The range includes healthier versions of old favourites such as soups, pies, muffins and sandwiches, as well as chilli, salmon orzo and frittatas, and will change seasonally.

‘Food is a vital part of the Columbus strategy going forward,’ Graeme confirms. ‘Now we’ve added a variety of inspiring choices while still enabling franchisees and chefs to vary their menu to suit local tastes. It means that customers can confidently choose

healthy, great-tasting options at their local café, or know where they can go in a strange town to get something suitable.’

And Healthy Food Guide magazine is encouraging its 400,000 readers to taste the difference for themselves, with a free Columbus Coffee offer featuring on the cover of the latest issue and ongoing promotion throughout the year.

Refreshing The Brand And it’s not just the food that’s had a refresh: David Burton, Roast Master, co-founder of Columbus Coffee and one of the ‘godfathers’ of the New Zealand coffee scene, has developed a fantastic new take-home range of freshly-roasted premium coffee. Meanwhile, subtle physical changes are also in progress to freshen up the interiors of existing cafés. The distinctive Columbus yellow has been extended to chairs, hat stands and coffee machines, and living walls are being fitted to give more warmth and vitality. Art is being introduced to reference Columbus Coffee’s heritage and focus on premium coffee, and all point of sale and marketing material has been revamped. The refreshed visual identity also sees the introduction of a distinctive new ‘C’ monogram.

Online – a vital part of engaging with customers these days – a fresh new website features café profiles, a café locator, journal posts and recipes, and there’s a new Facebook page which already has more than 5000 followers.

‘As if all of this wasn’t enough, there are more changes to come over the next few months,’ Graeme says. ‘We’re rolling out a new uniform in collaboration with Barkers, another trusted New Zealand brand. Using a Kiwi fashion label is just part of our commitment to local sourcing (where possible) of consumables and produce.

‘Columbus has always been a pioneer, stretching back 18 years ago to when we opened our first concept store on High Street in Auckland, and we constantly need to evolve the experience we offer to remain the country’s premium café franchise. It’s very exciting and we know customers are really going to enjoy what we’ve done and what’s yet to come.’

The Big GoalsOf course, all these changes are being made for a reason – increased sales for franchisees and more new café openings. ‘Columbus aims to be the premium franchise café brand in New Zealand and we have enjoyed unprecedented growth in recent years,’ says Graeme. ‘Both our franchise system and individual franchisees have won top awards, we’re in high streets and malls all over the country and we’ve developed a successful partnership with Mitre10 MEGA. By the end of the year, we plan to have 60 or more outlets and still have many more opportunities available for good franchisees.

Opening your own Columbus Coffee requires an investment of between $250,000 and $400,000 +gst, much of which can be financed. ‘If you want to be part of a top-performing, forward-thinking café franchise that produces real results, talk to us now.’

New menu and new look help Columbus Coffee franchisees go on growing


Find more info at franchise.co.nz - Search: Columbus Coffee

Find more info at franchise.co.nz - Search: Columbus Coffee

café franchise offers HEALTHY FUTURE

Advertiser InfoColumbus CoffeePO Box 911 030, Victoria Street West, Auckland 1142www.columbuscoffee.co.nzContactNathan Bonney, General Manager Business DevelopmentP 0-9-520 1044M 021 347 [email protected]

The new ‘C’ monogram could stand for chefs as well as coffee at Columbus

www.landmarkhomes.co.nz

Visit our website for more information on Franchise opportunities

Proud to support Kiwi Ent

erpr

ise

0800 477110

Be your own boss and enjoy the bene�ts of being part of a quality national brand.

Build your skills into a business that is an saleable asset not just a job.

As a result of increased demand, opportunities are available to own a Landmark Homes Franchise in various locations throughout New Zealand.

Why own a Landmark Franchise? • Be a part of a recognised high quality national brand and members of Franchise Assn NZ • Own a business you can grow into a valuable saleable asset • Enjoy the team support of a nationwide network of likeminded business people • Training and support to establish new Franchise and ongoing support from Franchisor • Your own exclusive marketing and building territory • Training and use of leading estimating, accounting, drafting and project management software • Benefit from national marketing and website including your own local webpage on site • Enjoy the satisfaction of completing superb homes of exceptional quality for your homeowners

The ideal Landmark Homes franchisee will be success-oriented, motivated and enthusiastic. While the majority of our franchisees come from building or industry-associated backgrounds, this isn’t essential as all the trade skills are contracted out. That leaves the franchisee free to work on their business rather than in it, to maximise its potential and expand it into an valuable asset.

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Landmark Homes Full page Ad Franchise NZ Sept 13.pdf 1 29-Aug-13 4:28:57 PM

39

⇒ Paramount Services is among New Zealand’s longest-established and most-awarded franchise systems, and its company motto, ‘Small

enough to care, big enough to serve,’ continues to attract new clients and new franchisees. Twelve months ago, Paramount went off-shore for the first time, acquiring an established commercial cleaning business in Melbourne as a way to explore the Australian market. Now it can offer new franchisees opportunities on both sides of the Tasman, and there’s more to come.

Paramount is an unusual franchise. Founded by Galvin and Sue Bartlett over 30 years ago, it now has 1200 major clients and 150 franchisees in New Zealand and is leading a charge to introduce more environmentally-conscious programmes to the cleaning sector. ‘Over time, our programmes have made a dramatic difference to the operation of businesses and the actions of our clients,’ says Galvin. ‘We introduced paper recycling bins, specialised cleaning agents and electricity-saving schemes that established Paramount as a pioneering force within the industry. Our goal is ‘zero waste to landfill,’ and the icing on the cake is that it has proved to be very cost-effective for our clients too.’

It’s that sort of profitable forward thinking that Paramount is now exporting. ‘We always intended to take Paramount off-shore,’ says Galvin, ‘and after seeking the right opportunity decided on Australia because most of the time they speak the same language as us! To accelerate the process, we acquired an existing business with a very similar client-base to our own.’

Good, Kind PeopleThe company Paramount acquired (now called Paraserve) started business in 1992 under finance student Ray Liew. ‘I was still at university at the time,’ Ray explains, ‘but the opportunity came up to start a commercial cleaning enterprise with a couple of others so I began working with them part-time. The company grew over the years until we had around 200 staff. When my business partner wanted to retire, Paramount were interested because of our longevity, the fact several clients had been with us since we started and the many contracts of long duration we had in place.

‘The Paramount team was very impressive right from the start,’ recalls Ray.

‘Galvin is an inspiring character, and I remember even before the business changed hands he was rolling up his sleeves and getting stuck into some jobs! His ethos of hard work has obviously filtered down through the company.

‘I’m only in my early 40s and Paramount made it very clear they wanted me to stay on – in fact, I’m sure I’m working much harder than I was before! But I’m dealing with very good, kind people, and everyone has commented to me how well they have been treated by the new owners. I think that is very satisfying because at the time of sale there were two offers on the table. I felt the Paramount offer was “quality over quantity”. It wasn’t just about getting the best financial return for me, but about ensuring my former staff were looked after – which they certainly have been.’

Staff Quick To Take Franchise OpportunityFranchising, though, is a new challenge for Ray. ‘We looked into franchising our own business quite seriously a few years ago, but it’s a complex process and not easy to do right. Paramount has huge experience in that area, though, and when they launched the franchise here many of my former staff were quick to seize the opportunity. Had I known it would be that popular, I’d probably have done it myself,’ he laughs.

‘Now we’re looking for new franchisees to join us. They need to be honest, hard-working people who want to get ahead and want to work for themselves,’ says Ray. ‘The training and systems are first class, we do all the invoicing and debt collection for them, and there is guaranteed work. Many franchisees have no previous experience in business but, because they have been willing to learn and apply the system, they are now building good businesses and are very well-regarded by their clients.’

Opportunities Both Sides Of The TasmanWith Paraserve having proved the Paramount approach to be as effective and popular in Australia as it is in New Zealand, the company is now in the midst of plans to have a master franchisee in every state. ‘Judging by the interest, Paraserve is going to grow fast over the years,’ says Paul Brown, general manager of Paramount Services. ‘We want our franchisees on both sides of the Tasman to succeed and as a company we have a stable of very high-profile clients for whom we are always prepared to go the extra mile. We are keen to hear from Kiwis interested in crossing the ditch, as well as people looking for opportunities here.

‘Whether you choose home or Oz, we have opportunities in most areas starting from around $30,000,’ continues Paul. ‘We offer a flexible business with guaranteed work and a dedicated philosophy of environmental improvement. Our approach has proved highly popular with our clients so give me a call – I’d be delighted to tell you more about what Paramount and Paraserve can offer you for your future.’

Find more info at franchise.co.nz - Search: Paramount Services

Find more info at franchise.co.nz - Search: Paramount Services

Advertiser InfoParamount ServicesPO Box 8939, Symonds Street, Auckland www.service-is-paramount.co.nzContactPaul BrownP 0-9-376 7850M 0275 430 [email protected]

Paramount franchisees clean everything from childcare centres to warehouses. Now Ray Liew (inset, top) is running the company’s pilot operation in Australia and finding it popular with clients and franchisees alike

cleaning franchise is EXPORT GOLD

Paramount has taken its award-winning environmental approach to Australia, creating trans-Tasman opportunities

new association chairmanHAS SEEN BOTH SIDES

Franchise News: People

A former franchisee and experienced franchisor has taken over the leadership of the Franchise Association


for their focus on self-regulation. He went on to say that the work carried out by the Board over the past two years to develop and implement the free pre-entry online course for prospective franchisees was a major step forward. ‘A clear focus for the Board over the coming two years will be on-going education for existing members and targeting additional quality franchise systems and affiliates to take up membership.’

Another continuing challenge for the Association is engaging with Government and ministries over regulatory issues. While there is no appetite under the current administration for introducing franchise-specific legislation, franchising may be affected by such legislation as the Commerce (Cartels & Other Matters) Amendment Bill and the controversial Part 6a of the Employment Relations Act which guarantees continued employment to people in certain industries should a business change hands. The Labour Party’s David Cunliffe has already suggested that Part 6a should be extended to all workers, which could have a significant impact upon franchisees taking over established businesses. In these circumstances, Ian Robertson’s credentials as both franchisee and franchisor could prove invaluable; while the Association has few franchisee members, it regards itself as protecting and promoting the rights of all those involved in franchised businesses.

The new Vice Chairman is Brad Jacobs of The Coffee Club. The full board comprises:

• Paul Brown, Paramount Services (franchisor) • Sean Dwyer, ANZ Bank (banker) • Dawn Engelbrecht, Safe Kids in Daily Supervision (franchisor) • Dr. Callum Floyd, Franchize Consultants (consultant) • David Foster, Harris Tate (lawyer) • Brad Jacobs, The Coffee Club (master franchisee) • Ian Robertson, New Zealand Post (franchisor)

⇒ Ian Robertson of New Zealand Post has been named the new chairman of the Franchise Association of New Zealand. Ian takes over

from Tauranga lawyer David Foster, who stood down after a two-year term and remains on the board.

Ian brings a wide range of experience to his new role and is actually the first former franchisee to become chairman. After a career with the New Zealand Police, including a spell in Diplomatic Protection, Ian opened a Bedpost franchise in Auckland which he operated successfully for eight years. He has since worked with a number of franchise companies, including five years as Group Franchise Manager for the co-operatively-owned Paper Plus Group, before joining New Zealand Post as National Franchise Manager in 2011. He was first elected to the FANZ Board in 2011 and became Vice Chairman in 2012.

Ian is passionate about franchising and the benefits it has to offer and says, ‘As an industry that generates a turnover of approximately $20 billion in New Zealand, franchising contributes significantly to our economy. The high standards set by members of the Association, combined with their commitment to self-regulation, certainly add credibility to those franchise systems and affiliates that are members.

‘The onset of the Global Financial Crisis in many cases demonstrated the ability of the franchise sector to respond and adjust more quickly than some in the corporate world. I am sure these actions will continue to benefit the franchise community in the current economic climate.’

As the new Chairman, Ian commended previous Boards of the Association

Ian Robertson

41

⇒ According to the July 2013 Franchise Confidence Index, although general business confidence is recovering well, one of the biggest

hurdles franchisees still face is access to finance. Given that many new franchisees use a mortgage on the family home as a prime source of funding for their businesses, the Reserve Bank’s new restrictions on low-deposit home lending may add further complications.

But for franchisees in the hospitality industry, equipment funding offers a realistic alternative. Silver Chef is a specialist in this field and has funded over 250 New Zealand franchisees in the last 24 months, helping them get into business by covering the equipment component of their fit-out using the equipment itself as security.

‘Accessing suitable funding has become more difficult for many small business owners in recent years,’ says James Scurr, Silver Chef’s national franchise manager. ‘In a typical hospitality franchise, if the purchase price is around $400,000 then a bank’s credit criteria may only allow borrowing of $200,000. If the franchisee has saved up $100,000 of their own cash, they are still short another $100,000. Silver Chef’s role here is to fill the gap by reducing the need for additional capital, not to compete with the banks.

‘Our flexible funding options allow hospitality business owners to preserve their precious capital as well as keep their options open and reduce their risk. It’s a model that has helped thousands of entrepreneurs achieve their dreams, with over $180 million worth of equipment currently funded on both sides of the Tasman, and it’s clearly been well-received in the two years since Silver Chef started operating in New Zealand.’

Rent-Try-Buy‘Silver Chef’s Rent-Try-Buy solution is perfect for franchisees who want to keep their options open by not being locked into a long-term contract,’ explains James. ‘Instead, Silver Chef offers a flexible agreement which means:

• Equipment can be purchased at any time with a generous rental rebate;• Customers can upgrade equipment if it is not keeping up with demand;• Customers can return equipment after 12 months if it is no longer suitable.

‘For those who wish to continue financing the equipment after the initial 12 months, we offer a reduction in rent for an additional 36-month period followed by a simple $1 pay-out.’

There are additional benefits to Silver Chef’s approach, too, says James. ‘For a start, rental payments are 100 percent tax deductible because each weekly payment is considered an expense to the business. Secondly, because the funding that Silver Chef offers is “off balance sheet,” it won’t affect a customer’s ability to borrow funds in the future. And finally, in most cases the lending is unsecured. Because Silver Chef purely fund equipment in the hospitality industry we are comfortable with the assets and therefore our security is in the equipment that we fund.’

Franchise Accreditation To make it easier for new franchisees, Silver Chef’s accreditation model focuses on the applying brand’s franchise system as a whole rather than assessing individual applications. By analysing data such as disclosure documents, the type of equipment in the business and financial information on store performance, Silver Chef becomes familiar with the brand and business model. Once the franchise itself is accredited, every franchisee in that system has access to exactly the same offer that includes guaranteed pre-approved funding, reduced bonds and lower rates of funding.

‘Talking to franchisors, we learned that they were frustrated with some lenders as the goal posts seemed to change with each individual applicant. We make sure we can offer every franchisee the same deal and the ability to access genuine, unsecured lending without having to put their home on the line.’

Easy Access To FinanceSilver Chef’s flexible lending criteria mean accessing finance is an easy and straightforward process. ‘In most cases, only the application form and their driver’s licence are needed to assess the applicant. However, for those who are part of an accredited franchise, the process is even easier with pre-approved finance,’ says James. ‘We use advanced technology to make it simple, with customers being able to sign contracts with a click of a mouse and email them back within minutes.’

The Silver Chef offer appeals not only to those looking to start up a new store but also to existing franchisees whose equipment needs upgrading, or to franchise groups looking to introduce a new piece of equipment into their network. ‘Every franchise needs to adapt to meet the market, especially in the current climate, and the cost of new equipment can be a real stumbling block,’ James points out. ‘Rent-Try-Buy makes it easier to stay on top.’

Silver Chef has franchise specialists based in both the North and South Islands who are looking to work with well-established franchises and new start-up chains. ‘To find out how we can help your franchise, contact us today,’ James invites.

Silver Chef helps make hospitality more affordable by reducing the amount of capital franchisees need


Find more info at franchise.co.nz - Search: Silver Chef

Find more info at franchise.co.nz - Search: Silver Chef

SILVER LINING for franchisee finance

Advertiser InfoSilver Chefwww.silverchef.co.nzContactJames ScurrP 0800 443 334M 0061 488 078 [email protected]

Dan TomsM 0061 488 068 [email protected]

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Business owners in the hospitality sector can access Silver Chef’s Rent-Try-Buy option and save precious capital

Franchisees can borrow against equipment, meaning that in most cases they need no security

time to LEAVE THE BOSS BEHIND


The Coffee Guy newbie finds satisfaction in self-employment

43Find more info at franchise.co.nz - Search: The Coffee Guy

in turnover. ‘This is a hospitality business so I knew enthusiasm, personality and continuity of product would make the difference – and it has. In only three months I’ve increased sales by 25 to 30 percent which makes a big difference to profitability. The other franchisees joke that I’m a part-timer because my drive-thru ends at 11am, but I enjoy getting home early and I compensate by doing six days at this location plus markets on Sundays and other events as required. I’m really enjoying it and looking forward to the summer outdoors.’

The Coffee Guy offers an affordable starting point for those wanting to get into the hospitality business, with the added bonus of being run by Retail Food Group - one of Australasia’s most experienced franchisors with a team of local experts to help franchisees every step of the way towards running a successful, profitable business.

David Bernard, franchise sales manager for The Coffee Guy, says, ‘In addition to the mobile units we now have fixed drive-thru and hole-in-the-wall kiosk locations, too. There are new opportunities available all over New Zealand, so if you’re looking for a new challenge, do what Megan Corney did – give us a call and find out about being your own boss with The Coffee Guy.’

⇒ As an office manager, Megan Corney wasn’t getting any job satisfaction or gratitude. ‘I’d also been getting frustrated with the

corporate world, so buying my own business was inevitable,’ she laughs. ‘I only wish I’d bought into The Coffee Guy much sooner – all my friends say this is a perfect fit for me.’

Megan knew several franchisees with The Coffee Guy and had spent a lot of time talking to them over the years, ‘So when I discovered a local outlet in Glen Eden, Auckland, was for sale I decided the time had come.’

While The Coffee Guy is famed for its mobile espresso business, Megan’s is a bit different – a dedicated drive-thru site by a busy roundabout. ‘Rather than going out to them, all my customers come to me,’ she explains. ‘The business was already established when I bought it but I could see it had potential for more growth, so I knew I could build it up to be what I wanted. It had been a Monday-to-Friday business so after spending a week with the previous owner I thought I’d be brave and go to the same spot at the weekend. The first five customers were regulars, who immediately said how great it was to see me on a Saturday.’

But it wasn’t just working on Saturdays which secured Megan an increase

Advertiser InfoThe Coffee Guy10F Morningside Drive, Auckland 1025www.thecoffeeguy.co.nzContactDavid BernardP 0-9-973 4821M 021 331 [email protected]

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45

⇒ Since launching in January 2013, Deck & Fence Pro has grown fast. Daryl Cross is the 14th franchisee to join the ranks and, having just

completed training, he’s raring to go. ‘There’s a lot of business out there,’ he says with confidence, ‘and with a TV campaign due to launch in the spring, I expect to be swamped! Profit projections are excellent.’

Deck & Fence Pro specialises in restoring weathered decks, fences, outdoor furniture and garage doors, as well as exterior cleaning and painting of concrete, brick and plaster finishes. They also offer garage carpet sales and installation to offset seasonal fluctuations and make the franchise an all-weather, all-season business.

The franchise was created by Joe Hesmondhalgh and Rob Howard, the seasoned team behind the award-winning Grout Pro franchise, and uses the same proven systems to build and support franchisees’ businesses. Indeed, some of the first people to take up the new Deck & Fence Pro franchise were existing Grout Pro franchisees, ‘who obviously knew a good thing when they saw one,’ smiles Joe.

In the case of Daryl, he’s new to the franchise family. He and wife Claire returned to New Zealand three years ago after ten years working in Australia. ‘My background is engineering and I was involved in fabricating ornate balustrades and security doors, but Claire and I wanted a bit more control of our lives so we started to look at franchises. The first thing that struck me about Deck & Fence Pro was how professionally put together everything was. From the first pack I received from Joe, I felt this was a good crowd to be involved with and it gave me a great deal of confidence.

‘Joe explained that the market for Deck & Fence Pro is massive. You only have to look around and see just how many decks and fences the nation has, but most people are far too busy working to want to spend their precious weekends maintaining all that themselves – and many don’t have the skills or equipment. That creates a lot of opportunities for us.’

Environmentally Safe & FriendlyBut it’s not just the size of the market that has attracted Daryl, who has

a natural enthusiasm for the obvious benefits of the work. ‘We can really bring a deck back from the brink,’ he says. ‘Imagine a 30-year-old deck that has had minimal maintenance and is riddled with grime and lichen. Some people might tackle the job themselves but unless you know what you’re doing, that can lead to some pretty disastrous results. Others might just rip up the old deck and replace it – what an expense and waste of good materials. But Deck & Fence Pro can offer a much better solution. We can restore a deck to look almost new at a fraction of the cost of replacement, and probably double its life.’

Outdoor cleaning often involves some pretty harsh chemicals which are bad for the environment and operators alike, but Deck & Fence Pro products are entirely environmentally friendly. ‘We use a two-part cleaning process that has been exclusively formulated for the franchise and is a closely-guarded secret,’ says Daryl. ‘In this day and age, people are much more conscious of these things so it’s another bonus to find our products won’t hurt plants when washed off and certainly won’t destroy the timber itself – unlike a lot of harsh chemicals.’

Save $5,000 And Hit The Ground RunningA Deck & Fence Pro franchise is just $24,950 +gst, ‘But we have a special offer of just $19,950 for new franchisees who are up and running before the end of the year,’ says Joe Hesmondhalgh. ‘That includes everything you need to hit the ground running and start earning straight away.’

Daryl confirms that’s true. ‘I’ve got everything I need and furthermore the products I use cost less than most DIY products while being of much higher quality – that’s not the case with some businesses I looked at!

‘And the training is also excellent – I trained with other new franchisees in Palmerston North and I learned a lot because it was made fun and was the most unstressed training I’ve done. Now I just want to get out and get started!’

The comprehensive training means no experience is necessary to buy a Deck & Fence Pro franchise. ‘The only requirements are a keen eye for detail, a good work ethic, willingness to follow proven systems and some DIY experience,’ says Joe. ‘To make the most of the opportunity, you’ll also need an outgoing personality and the ability to get stuck in and solve customers’ problems.

‘Spring will see a massive demand for Deck & Fence Pro, so we are actively seeking franchisees across New Zealand right now. We’d like to have as many people as possible in place to reap the rewards of our nationwide TV advertising campaign. Some areas are selling fast and some are already full so don’t hesitate – download a free franchise information pack from our website or give me a call today and ask about how you could save $5,000 with our special offer.’

Deck & Fence Pro is appointing franchisees nationwide to meet demand


Find more info at franchise.co.nz - Search: Deck & Fence Pro

new franchisee ALL DECKED OUT FOR SUMMER

Advertiser InfoDeck & Fence ProPO Box 16 394, Bethlehem, Tauranga 3147www.deckandfencepro.co.nzContactJoe HesmondhalghP 0-7-552 5311M 0274 108 [email protected]

Daryl Cross: ‘I’ve got everything I need and the profit projections are excellent’

Before and After: Deck & Fence Pro can restore exterior timber to look as good as new

46

Buying A Franchise: Choosing Wisely


What do you need to know before you buy a franchise? Here’s a comprehensive list of over 250 vital questions to ask the franchisor that will help you make the right decision

⇒ If you are looking at buying a business, it is vital to ensure that it is right for you and your own particular needs. Never, ever buy a business

assuming ‘She’ll be right’ just because you have seen the name around or because other people have already bought in. What you want to find is a franchise that suits your own abilities, ambitions and lifestyle.

When you buy a franchise, you will be relying upon the value of the brand and the quality of the franchise system, product or service to achieve these goals. A lot therefore depends upon the fit between you and the business and the quality of training and support you will receive.

Several years ago, we at Franchise New Zealand magazine & website set out to develop an exhaustive list of questions to help potential buyers evaluate both the franchise opportunity and the franchisor him or her self. The list has been updated annually ever since; established franchisors know it well and welcome enquiries from those who have used it to determine the information they need to know before they make their decision.

Because franchising is so diverse, it is not possible to provide a list that would be applicable to everyone. There are over 250 suggested questions here, so put a mark against the questions that are most appropriate to your own situation and use them as a basis for creating your own check list.

Although there is no franchise law in New Zealand to determine what information a franchisor must give you, most franchisors should provide a disclosure document that will include many of the answers. You should read this thoroughly and discuss it with your professional advisors. Depending on your own level of knowledge of, say, financial matters, you may prefer to get your advisors to ask some of these questions on your behalf.

The areas that you will want to examine may be divided into:

• Business experience • Research • Financial/costs• Marketing • Legal • Selection & training• Support • Operations • Communications

Business Experience

One of the most important things that a new franchisee buys is the experience of the franchisor. Every successful franchisor will admit that they made many mistakes in the early days, and it is the wisdom and experience they gained through these that they are able to pass on. The new franchisee pays to learn from someone else’s mistakes.

It is therefore vital that the franchisor has experience of running the sort of business that he or she is now offering as a franchise. They may already have successful franchised operations up and running; if not, they should ideally have had a pilot operation running for at least twelve months. This applies equally to locally-developed systems and to franchises brought in from overseas. What works in Australia or the US does not necessarily work here without some adjustment.

Look at the background of the franchisor company – and the people involved – too. Here are some of the questions to ask:

How many years of experience do you have in this industry? In this business? What is the previous relevant experience of the key people?

250 QUESTIONS you must ask

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What initial services do you offer?

Can I have a complete list of your franchisees? Can I contact them by phone and visit them if appropriate? May I choose whom I interview? See 50 Questions to Ask Franchisees at www.franchise.co.nz

May I look at your bank reference? Can I see the Profit & Loss account for your existing operations? Your balance sheet?

Please name other referees I may approach.

It is important to get a feel for how ethical a franchisor is. Find out about the reputation of the company and its owners and key people from external sources, as well as asking the franchisees themselves. Always ask several sources, and don’t be afraid to take up references – that is what they are for.

Financial/CostsBuying a franchise involves various different costs: initial and ongoing fees, training fees, stock, shop-fitting or vehicles, and so on. If the franchisor provides a good disclosure document, all of these will be documented clearly to avoid any potential confusion or embarrassment at a later stage. However, it is a good idea to ensure you have all the following clearly laid down in writing. Ask the franchisor:

What are the total costs? Are they paid all in one go, or in stages? What is the timing? What do the costs include? What capital costs will be incurred in addition to this price, and what for?

How much working capital (ie, cash to run the business, cover wages and other overheads) do I need? Starting a business with insufficient capital can be fatal.

Do you provide projections for my proposed business? What are these based on? For legal reasons, many franchisors will not produce specific projections but will provide actual figures for existing operations.

May I see actual accounts which confirm (or otherwise) your projections? How relevant are these to my proposed territory or site? What makes you say that?

Do you recommend that franchisees register for GST?

Do these figures take my salary/drawings and depreciation into account?

Is there any form of guarantee? How much? Does it vary with the amount I invest? How long does it apply for? When will it be paid? What are the conditions? Have you ever paid out on this guarantee?

What assistance do you provide in obtaining finance?

Have you already made special arrangements with any banks? Please

How many franchised businesses do you have at the moment?

How many company-owned outlets do you run?

Did you run your own pilot operation in New Zealand before franchising? If not, why not? In the case of a new franchise, how long have you been running the pilot operation, and how successful is it? Can I see the figures? Do you intend to keep running a company-owned business as well as franchising? How many outlets? What guarantee is there that they will not compete with franchised outlets?

What is the extent of your own cash involvement in the business?

Has any franchised business of yours ever failed? Beware “hidden failures”. They may not count an ailing franchise that was sold just prior to going into liquidation, or was bought back by the franchisor and resold.

What mistakes have you made and learned from?

Are you a member of the Franchise Association of New Zealand? If not, there is no requirement that the franchisor must provide a disclosure document, offer a seven-day ‘cooling-off’ period or include mediation provisions in the franchise agreement. Most franchise systems are not FANZ members but good franchisors will often have similar arrangements.

Research

Although the franchisor should provide you with information about the company and the industry in which it operates, it is important that you check the quality of this information out for yourself. Use the Internet (our article Researching Your Franchisor at www.franchise.co.nz suggests some useful tips on how to do this) and ask the franchisor:

What do you see as the future of the industry you are in? Where does this company stand in its industry? What do you do to keep up with developments?

Is there a viable market for the franchise’s product/service? Is there still room for growth? What is its marketing positioning, eg. price, image, quality? How do you maintain margins? How dependent is the business on price competitiveness? How good is the competition? These questions apply in all industries, from retail to lawnmowing.

What direction is the franchise company moving in? For example, is it adopting new technology as it becomes available/affordable? Is this important? How will new technology affect costs for franchisees?

What exclusive rights to a territory do I get? Can my territory be eroded by the franchisor? At a later stage can I sell off part of it if I choose to? How do you define a territory: eg, number of businesses, homes, geographical area, people, type of population? Do I get first option on an additional territory? What is the procedure if you plan to open a neighbouring territory?

Could you outline the process and the likely timing from here to starting operations, eg, assessments/interviews, legal, financing, shop-fitting, training periods with the franchisor and in the territory?

Who finds a site/conducts market research etc? How is it done?

Help in Other Languages

⇒QuickTips

Look on our website to find advice and questions in Traditional Chinese, Simplified Chinese, Korean and Hindi. Just go to www.franchise.co.nz Search: Advice for New Residents

48



outline what these are. What level of cash and/or equity will I need to qualify for finance?

Do I buy or lease the necessary equipment? What are the options?

If I buy, will I own all the equipment needed to run the business when I have cleared off the borrowing from the finance company?

How do you, the franchisor, make your money? This may affect the way he takes care of his franchisees - for example, a franchisor who makes his income from selling franchises is unlikely to be able to offer much in the way of ongoing support. What royalty is charged, and how is it calculated?

Do I have to buy all or just scheduled items from the franchisor? Are there any other fees? What levels of support or assistance do I get for the royalty? It is important here to assess value for money, not just percentage figures – see page 64.

How open are financial details within the franchise? For example, does the franchisor declare the level of any mark-ups or commissions/rebates paid by suppliers? Are the sales figures or financial results of other franchisees shared for purposes of comparison?

What are the profitability and cash flow projections for my market and others? Look at sales, cost of sales, overheads.

Once you have the answers to the above, you should sit down with your financial advisor and, based on conservative assumptions in financial projections, ask yourself: What level of income can I make? How much can I take from the business, and when? Does this meet my needs or aspirations?

Marketing

Marketing is fundamental to the value of a franchise - it is the pulling power of the name above the door or written on the side of the vehicle that should more than justify the ongoing royalties the franchisee pays. Ask the franchisor:

What kinds of marketing programmes do you run for the product or service offered by the franchisees? May I see examples? How are marketing programmes decided on? What kind of consultation is there with franchisees about what they want/need? What is the process for evaluating success?

What dollar value is spent on marketing? How is marketing funded? How accountable is the franchisor for the funds? Am I required to spend additionally on promotions in my local area? How much? Is supplier support available?

Do you have a launch package for a new franchised territory? What experience is this based on? What does it include? Who pays?

What help will I receive in arranging local advertising and promotions? Are there standard promotions (eg, radio adverts) available for my use?

Please show me examples of marketing material you provide, eg, point of sale material and promotional literature such as brochures, leaflets, sales presenters and standard advertisements. Who pays, and what is the cost?

How do I make sales? How do I get leads? Do you provide an initial customer base? Do I need to cold-call? Do you provide training in this area? Do I need to have sales experience?

Is there a centralised 0800 number for the franchise? How are leads allocated to individual franchisees?

Is there a website promoting the franchise? How are leads allocated? Can customers buy direct from the website? If so, are franchisees recompensed for sales in their area? Online sales can be a cause of friction if not properly managed – see www.franchise.co.nz/article/view/1562

Does the franchise carry out database-related promotions to customers? How is the database created and managed? Can franchisees choose which offers are made to which customers?

Legal

The franchise agreement is the basis not only of the purchase of the franchise, but also of the ongoing relationship that must exist between franchisor and franchisee. Because of this, it is not the same as a straight sale and purchase agreement and must be examined by a lawyer with franchising experience. A good franchising lawyer will know what is

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Greg Mullins Nick Giles


reasonable and what isn’t (see Directory page 81).

The following questions are provided for guidance in the early stages, but do not replace a proper legal examination of the agreement. Ask the franchisor:

How soon in my investigation of the franchise can I take away a franchise agreement for a legal opinion? Is the agreement negotiable? The usual answer to this is ‘no’, although some specific variation may be reasonable especially if it is a fairly new franchise.

Is there a disclosure document that meets the requirements of the FANZ Code of Practice? Do I get this at least 14 days prior to signing the franchise agreement?

Do you have minimum performance levels, or a minimum fee, or a minimum purchase level for goods? How achievable are they? What happens if I don’t meet them? Have franchisees ever failed to meet them? What happened? How secure is the franchise tenure?

How is my compliance with the franchise system measured? What happens if I don’t comply? How long do I have to remedy any problems?

What is the term (length) of the franchise agreement? What happens at the end? Do I have the automatic right of renewal? If not, what is the position?

What if I want to sell my business? What is the procedure? Do I have to sell it back to you, or can I sell it externally? What approval do you need to give to a new owner? What restrictions are there affecting my right to sell the business? Do you help me to find a new owner? Do you charge any fee? Does a new owner get a new full term on the franchise agreement, or take over my existing one? Who would train any new owner? If the franchisor, is there a fee?

What insurances am I required to have? Do you have an arrangement with a broker or company offering special rates?

If premises are required, are they bought or leased? Do you take the head lease and sublet to me, or do I lease direct? Please clarify the arrangements for this.

How does the length of the lease compare with the term of the franchise agreement? What happens if my lease is not renewed?

What would happen if you misjudged the site?

How can I be sure you will do what you promise?

What will happen if I don’t like the business? On what basis can I terminate the agreement?

On what basis can the franchisor terminate the agreement? Most franchise agreements will have a number of standard and sometimes frightening-looking clauses. Take advice to determine whether these are reasonable or not.

Selection & Training

Selecting the right people is the single most important thing a franchisor can do. If a franchise consists of people who have little aptitude for the business, they will constantly under-perform, take up the franchisor’s resources and drag the whole system down. Choosing the right people and training them well, on the other hand, will help the franchise fly.

Make sure that the franchisor has thought about the type of people who suit the business, and is careful to ensure prospective franchisees fit that profile. Ask the franchisor:

How do you assess the suitability of individuals? Do you use any franchise-specific profiling tools tailored to your own business?

On what basis do you choose your franchisees? How selective are you?

What are the most important attributes of a successful franchisee, and do they match mine?

How well am I likely to fit with the organisation in terms of personal standards, aspirations and values? Assess this for yourself by looking at the company culture. This is very important – if you don’t fit, look for another franchise with a different culture.

How long does the initial training last? Where does it take place? Who pays for transport, accommodation and meals during training?

Who conducts it and how well-equipped are they to do so? What does it cover and in what depth? What is the balance of theoretical and practical training? Is there any practical experience in company outlets or with existing franchisees?

Has anyone ever failed training? Would you stop the training at this stage if you felt I was not suitable after all? Would any money I had paid be refunded? What proportion?

Do you provide on-going training in the form of courses, workshops, conferences, seminars, regional meetings, refresher or follow-on/advanced courses? Who pays?

Do you provide training for any staff I employ? Who pays?

SupportGetting the business up and running is one thing – keeping it growing and performing well is another. This is where the role of franchise support is crucial. Support is part of the reason for the ongoing royalty fee. Ask the franchisor:

Where is your franchise support office based? What does it consist of?

Exactly what level of support can I expect? In what areas? How many people are employed by the franchisor? What do they do? How many are in direct support roles, ie, not just in administrative roles? Is there any technical support, or on-going research and development? Do you have specialists in individual functions as well as generalists who understand the overall business? Can I meet some of your staff? Many franchises in their early stages have very few employees – however, as a franchise grows it requires additional support staff to ensure existing franchisees continue to receive service.

What support would I receive during the opening period of my business?

What on-going support services do you provide? Do you have a programme of visits and meetings to monitor progress and advise on improvements? How do you run the support function?

What would happen if I had operational problems that I was unable to solve? What help would I get?

How often would I see or hear from you? Is there any support system between franchisees? Would I receive feedback on my performance? How will I know how well I’m doing?

Can you demonstrate your capacity to provide the follow-up services needed?

What benchmarking systems do you use? Are comparisons of performance across key areas available to all franchisees? Is there help in analysing areas for improvement? This is a key advantage of franchises over independent businesses. Technology makes benchmarking easy nowadays and is part of most good franchise systems.

OperationsThere is no point in thinking about taking on a franchise unless you are convinced that you would enjoy working for yourself, enjoy the day-to-day running of the business, and have the skills or aptitude to do it extremely well. You owe it to yourself to find out:

What would I actually be doing on a daily basis?

What will the opening hours of the business be?

How many hours will I need to work? What are the hours required outside official business hours, eg, for paperwork? Check out your own commitment level. What is the match between what is required and what you are prepared to do? Talk to existing franchisees as well as the franchisor.

Is the business seasonal? When is the best time to start trading?

What are the most important keys to success in the business? What are the most common pitfalls?

Do I need to employ staff or do all the work myself? What type of people, at what cost? Are the right kind of people readily available in my area?

Will the business support a family, or will my partner also need to work outside the business? Is there the potential for my partner to work



in the business, too? Is it preferable to be on my own or to have someone else with me? Research shows that having the support and understanding of your family is a key factor in franchisee success.

How do I run the business, and where from? What premises and equipment do I need? (eg, a full retail shop-fit or a home office, mobile workshop, vehicle and computer).

Can I spend some time with an existing franchisee or in a company outlet to see if I like it? How long? At what stage in the buying process?

What can I sell and not sell?

Do you provide operational manuals and instructions? Are these regularly updated? Are they online?

How will I do my bookkeeping and meet the legal requirements of running a business? Is any administration or bookkeeping included?

How soon will I be required to spend money on redecorating the premises or replacing equipment?

Do franchisees use a standard computerised accounting package? Is there any custom-designed software? What does it cover: quoting, ordering, invoicing, reporting? Is it integrated with other systems, eg. tills or stock control? Can I access it via the Internet when away from the business? How often is it upgraded?

CommunicationsFor a franchise to be responsive to customer needs, successful and, above all, a ‘happy family’, there must be constant two-way communication between franchisor and franchisee. Ask the franchisor:

What systems do you have for keeping franchisees in touch with you and each other? Eg, mailings, e-mail, intranet, telephone support, personal visits, newsletters, seminars, regional meetings, conferences. How regular are these?

Is there a formal system for franchisees to make suggestions? Test new ideas?

What are relationships like between the franchisees? Between franchisor and franchisees?

Do you have a Franchise Advisory Council and how does it work?

How are disputes resolved? Is there an alternative disputes resolution procedure? Has it ever been used? What was the outcome?

FinallyIf all the above seems a bit daunting, don’t be put off. Franchisors are used to answering questions about their businesses, and expect to have to satisfy enquirers and their professional advisors as to the integrity of their business. You owe it to yourself to be thorough.

If you are thinking of buying a franchise, it will pay you to sit down and work out what you need to know before you meet with the franchisor. It will probably take several meetings, with increasing levels of detail, before you are in a position to make your decision, so be prepared for that.

The step you are considering is a major one, so don’t try to do it without taking proper advice. And please don’t be tempted to think that a few hours’ surfing the net is any substitute for doing proper research. There’s some great information available – see www.franchise.co.nz for more advice and information – but there’s no substitute for asking hard questions and getting individual answers.

Buying a business affects your family, your finances and your future. Do everything you can to ensure it will be the best decision you ever make.

About the AuthorLorraine Lord has worked in franchising for over 30 years. During that time she has been a field manager, training manager, developed systems and manuals and run a franchised outlet herself.

OUR BUSINESS SUCCESS FORMULA Our business success is due to our multifaceted focus on the wellbeing and motivation of our employees, and the high quality standards of food and service they deliver to our customers. The customer experience is equally important as the consistent, high quality authentic Mexican food itself. All of this is under-pinned by comprehensive but simple business management and operational systems that reflect years of tried and tested experience, both here and in the United States.

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51

⇒ Health and fitness articles always seem to feature ‘before and after’ stories – but this one is about three women who transformed their lives

not by joining a gym, but by buying one.

Leonie Soden sold dairy genetics for a living and only started to get her see-sawing weight issues under control when she started visiting a gym regularly. Soon, she was dreaming of starting her own so when husband Gary said, ‘Go for it,’ they opened the first Contours in Taupo. ‘This is a fitness town with all sorts of events happening, so there were already a lot of gyms here,’ Leonie says. ‘But Contours attracted us because it was something special – it was a women’s gym. I hadn’t worked in the fitness industry before but I believed I could help other women because I knew I’d already helped myself.’

Leonie’s first venture into business has been a huge success, by any standards. She drew on her sales and media experience to promote her new venture and in her first year, Contours Taupo was a finalist in the Great Lake Business Awards for customer service and marketing. ‘By December we expanded the size of the gym to meet demand and we’re still adding around 50 new members a month! We have a really modern club with a lovely colour scheme and we also have tenants offering complementary services including beauty therapy, massage, physio services, a nail technician, tanning and nutrition.’

So Good, They Bought The CompanyMeanwhile, Sarah Archibald went a different route – she became the Contours franchisor. Half of the award-winning husband-and-wife team behind the Speedy Signs and EmbroidMe franchises, Sarah was a Contours member herself. ‘When the franchise system came up for sale last year, I knew that my husband Grant and I could make a positive difference for customers and franchisees alike. We had been looking to expand our company for some time and recognised that Contours was a great opportunity.

‘The gym industry is experiencing a boom with government and media constantly talking about the obesity epidemic, and people wanting healthier lifestyles. Over half a million Kiwis have gym memberships and the market is already approaching $250 million per year and constantly growing. Contours has built its own niche in that market for the last 20 years by giving members the opportunity to exercise in a female-only environment.

‘We operate premium full-service gyms with classes to suit members of all age

and fitness levels; specialities such as Zumba, boxing, pilates and spin; offer weight management programmes and sell a variety of healthy supplements. It’s a friendly, supportive environment for women with fresh, clean equipment in well-appointed clubs. Some clubs also offer additional services such as child-minding, massage therapy and beauty therapy, saunas and personal training, and even off-site programmes such as boot camps, cycling, running and duathlon groups. There’s something to motivate every woman!’

Building The BusinessThere are currently 13 Contours clubs around the country and for the last year they’ve been benefitting from Grant and Sarah’s expertise. ‘We’ve built up an experienced support team in our company over the years and have started to apply those skills to help Contours franchisees as well,’ Grant explains. ‘We’ve put active support systems in place to help them grow their businesses. There’s better measurement, more communication and a franchise advisory council so we can share ideas and strategies.’ All this work is paying off – group sales have grown every month this financial year.

Cheryleita Downie was a business analyst in the IT sector but she wasn’t passionate about her work. When her local Contours franchise in Glen Innes came up for sale four years ago, the self-confessed gym junkie changed careers. She says the changes Sarah and Grant have made are ‘fantastic - they really have made a difference.

‘We have dedicated support staff, a great sales process, monthly reporting tools, more analysis and better supply deals. I’ve been really impressed by the new staff training and Ariana, our support person, goes above and beyond the call of duty. The atmosphere at our recent National Conference was fantastic.’

Opportunities Throughout New ZealandNow Sarah and Grant are looking for franchisees to take Contours to more

locations nationwide. ‘Leonie has shown what can be done in a town of less than 25,000 people, so there are plenty of possibilities throughout

the country,’ says Grant. ‘As well as new locations there are some existing franchises coming up for sale. Investment levels vary either

side of $200,000 but the property and equipment components mean a variety of funding options are available.

‘We provide full training and organise the fit-out of your gym for you – it’s a full turn-key operation. You need

to work in the business yourself so it’s great to be passionate about fitness, but you don’t need to run classes – your focus is on growing the business and management.

‘Get those right, look after your customers and staff and you too can have a healthy business – in every sense of the word. Talk

to us to find out more.’

Contours Womens Gyms is a trusted brand with a whole new energy

Franchise Opportunity: Health & Leisure

Find more info at franchise.co.nz - Search: Contours

Find more info at franchise.co.nz - Search: Contours

building a HEALTHY BUSINESS

Advertiser InfoContoursPO Box 51 890, Pakuranga, Auckland www.contours.co.nzContactGrant ArchibaldP 0-9-577 4223M 021 662 [email protected]

Contours franchisees and the franchise support team at their recent conference

Leonie Soden: ‘I believed I could help other women because I knew I’d already helped myself’


⇒ A quick glance at statistics from students sitting examinations reveals that two-thirds of those who fail do so by just five percent

or less. The lesson from this is quite clear: the gap between success and failure is small.

While starting your own franchise business is more complex and challenging than any examination, this same lesson is fundamental to the success of your franchise: the small things matter. That’s why, if you’re moving from employment to self-employment for the first time, you need to focus on the four cornerstones of business:

Plan ahead.•Build on the right foundation.•Keep the cash flowing.•Know what’s happening. •

Plan AheadPlanning is fundamental to business success. It’s the key to getting things done and making things happen, an operating tool that will help you manage your business’s day-to-day operations and guide you towards success. Preparing a business plan will help you identify potential problems and develop appropriate solutions before they arise. A business plan also:

Gives owners a roadmap for the future;•Helps provide a path for business growth both internally and through •

outside assistance and funding where required;Provides timely business information to secure necessary financing •

ranging from overdraft facilities to bank loans.

Issues to consider in creating your plan

What are your personal life goals? •What might your retirement look like? •What is the end goal for your business? Are you hoping your children will •

succeed you, or are you looking to sell it within a certain number of years?What is your business hoping to achieve in the next two, five •

or ten years?How will you measure and track the performance of your business plan?•

The preparation of a business plan for a new franchisee – especially if you’ve come straight from employment – can be a daunting exercise. Seek help from your franchisor and talk to your accountant and other business advisers. A good place to start is the business.govt website at http://tinyurl.com/a6yvrua

Build On The Right FoundationIn a previous issue of Franchise New Zealand, we discussed choosing the right structure for your business – read that article online at www.franchise.co.nz/article/1380. In a nutshell, there are a number of different ways to structure a business and if you take care to get it right at the start, you could save yourself a lot of expense, disruption, resources and time later on. These are areas in which you should take professional advice from an accountant and lawyer.

Buying A Franchise: Finance

FOUR CORNERSTONES of business

Paul Kane

52

Paul Kane of Grant Thornton provides a guide to help new franchisees set up for success

Keep The Cash FlowingIn any new business, the most critical issues relate to your ability to conserve and control cash. As a new franchisor or franchisee, you need to be relentless in your attention to this, as cash is the oxygen of your business. Here are some key reminders:

Set appropriate credit terms: with your suppliers they should be as long •as possible; with your customers, as short as possible.

Identify and understand key indicators such as debtor days •and creditor days.

Keep stock cycles as efficient as possible. •Complete credit checks on new or suspect customers, and strictly •

adhere to credit terms by chasing payments. You should also resolve issues on any invoices swiftly as these can cause unwelcome delays in being paid.

Your franchisor should be able to help you set appropriate benchmarks in each of the above areas. Getting these basics right from the beginning will reduce the risks to your new business.

Forecasting and Budgeting

In most cases, new businesses don’t fail because they are not profitable, but because they have run out of cash. Another crucial factor in your business plan, therefore, is your ability to forecast and budget your finances, both business and personal. The primary questions should be: is the business generating enough cash to survive and are you able to draw sufficient funds to live on?

The Inland Revenue (IRD) is an important creditor and in most instances there will be monthly PAYE payments, bi-monthly GST payments and maybe quarterly FBT payments and provisional income tax. When you were an employee you wouldn’t have had to consider these things, but running a business is a different matter so you need to forecast your cashflow and your tax obligations to avoid stiff penalties. Once again, you should involve your accountant in setting up suitable monitoring systems.

Know What’s HappeningIt is imperative that you know how the business is performing in relation both to the plan and the previously identified key indicators. This will help you know what action you need to take and when in order to maximise your profits. To do this, you’ll need an information system which captures this data. From the financial point of view, a simple accounting package like Xero will suffice for most franchisees. Providing you use it properly, this will keep the bank, debtor and creditor positions up-to-date and generate the figures to produce an actual profit and loss and cash flow for the past and project cash flow and profit for the future. It will enable you to answer the following key questions:

How much cash do we have?•Is our cash flow forecasting accurate?•Are our debtor days increasing or are we experiencing •

high levels of bad debt? Are we under pressure from our creditors for payments?•Are our levels of stock increasing?•

To make the most of the information provided, however, you should be able to compare the figures you are achieving against those of other franchisees within the same system, either on an individual or group average basis. This is called benchmarking. For this reason, it’s worth putting your accountant in touch with your franchisor prior to setting up any system to ensure that it will produce comparable figures that you can use to measure and improve your business.

A Lot Less To Worry AboutFor a first-time business owner, all this might seem like a huge daunting task – but it needn’t be. By breaking it down into the four cornerstones and working with your accountant and franchisor, you can make sure that you set your business up properly from day one. By doing so, you’ll have a lot less to worry about and will be able to focus on making the most of the opportunity in which you’ve invested.

About the AuthorGrant Thornton New ZealandPO Box 1961, Auckland 1140www.grantthornton.co.nzContactPaul KanePartner, Privately Held BusinessP 0-9-308 [email protected]

Find more info at franchise.co.nz - Search: Grant Thornton 53

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55

⇒ When John Hyde talks food franchising, it’s wise to listen. This is a man whose industry credentials put him in the senior league, and

now he’s moved to New Zealand from his native USA to spearhead the growth of Oporto here.

For the last four years, John has worked with the largest food franchise in the world – the Subway Development Corporation. Among other achievements, his operational and marketing support of franchisees in Virginia, Maryland and District of Columbia resulted in increased average unit sales of 24 percent over the course of three years. Now he’s taken up the role of business development manager for Oporto in New Zealand with the aim of increasing product sales and doubling the number of outlets by the end of 2014.

There are currently 11 Oporto stores around the North Island, all serving customers with high quality and competitively-priced grilled chicken burgers, wraps and long rolls enhanced with a choice of addictive chilli sauces. The brand was founded in 1986 on a love of healthy and wholesome fresh food; to this day, Oporto’s proud boast is that all its products are ‘fresh not frozen, grilled not fried.’ It’s an approach that has paid off as people become increasingly conscious of what they are eating. Today there are over 200 Oporto stores worldwide.

The Experience To Make A Real DifferenceJohn Hyde was on holiday in New Zealand when the opportunity to join Oporto presented itself. He’s no stranger to the country, having spent time here in 2008 helping to develop and launch an internet-based start-up company. ‘I have always been envious of the balance my friends in this country enjoy between their work and their private lives, so to come back and work with a growing franchise in the food business was a chance that I couldn’t pass up.

‘I’ve worked in a number of business development roles in the hospitality sector and it was very satisfying to be able to help franchisees make a real difference to their business in a major company like Subway. I’m looking forward to using what I’ve learned across the board to help new and existing Oporto franchisees grow faster.

‘Oporto offers me the opportunity to contribute in several different capacities. My primary responsibility is growing the brand through expanding the franchisee network, increasing franchisee profitability and

ensuring we provide customers with an even better experience each time they visit an Oporto store. That means working closely with a number of departments – especially marketing, operations and accounting – to achieve the best results. Our customers expect us to have the best-tasting products in the market, and at the same time our franchisees need the dedication, the support and the tools to create successful, profitable businesses. It’s why it’s important that all our franchisees are as passionate about Oporto as our loyal fans.’

New Sites North And SouthCEO Bhushan Arolkar is certainly passionate about Oporto. He first learned about the business as a management consultant, and liked what he saw enough to become the New Zealand

master franchisor. ‘We’ve been opening stores ever since, and now we’ve added John to the team to help us take Oporto to the next level. Now we are looking for suitable people to open new Oporto outlets all round the country, including our first stores in the South Island.’

The investment required to open an Oporto store is between $350,000 and $400,000 +gst, but our system is so well-proven that we have pre-approval from two banks for funding. This means franchisees only need to bring 50 percent capital to the table.’

The investment includes assisting with finding and negotiating suitable sites, thorough training in business and operations management and a full marketing launch programme. ‘Then you’ll have full support from the full Oporto team on an ongoing basis, with John spearheading the drive to help you achieve maximum return on your investment,’ says Bhushan.

‘Franchisees don’t need to have food service experience but must be prepared to be on the spot as owner/operators, not just investors. But Oporto’s proven systems mean that if you manage the business well you don’t have to work all hours – one franchisee currently has sales well over $1 million per annum and he is in the store for just 20-25 hours a week. And unlike many food businesses, our premium quality product keeps us out of price wars that destroy margins so the returns are excellent – we reckon around 12-15 percent net to the franchisee.’

A Great OpportunityThe last word goes to the experienced John Hyde. ‘Oporto has a lot of advantages in today’s market. We have great-tasting products. They’re healthier. They’re fresher. They’re better value. And our customers just keep coming back. All of that adds up to a great business opportunity.

‘We’d love enquiries from all over New Zealand: Christchurch, Dunedin, Invercargill and Queenstown as well as Wellington, Rotorua, Whanganui and New Plymouth. If you feel you’re made of the right stuff don’t hesitate to call me and find out more – now!’


Find more info at franchise.co.nz - Search: Oporto

Find more info at franchise.co.nz - Search: Oporto

USA EXPERIENCE

Advertiser InfoOportoPO Box 251 275, Pakuranga, Aucklandwww.oporto.co.nzContactJohn HydeP 0-9-538 0006M 021 301 [email protected]

franchisees set to benefit from

New franchise executive brings business-building knowledge to Oporto NZ

one door shutsANOTHER DOOR OPENS


Dream Doors franchisee makes a fresh start in a flourishing sector


insurance and travel combined with my building experience we reckoned Dream Doors could be ideal. I talked to a lot of other franchisees and decided it was an investment well worth making. A strong selling point is that you pay a flat fee, not a percentage of your sales, which makes budgetting easier and encourages you to grow. In fact, our only real surprise has been the speed at which our turnover is increasing!

‘Derek is passionate about his brand and is a fantastic support. He takes the simple view that for him to succeed, we need to succeed. The whole experience has been very positive for us, and I’d say that if you’re committed and hard-working, there is real potential to build a great business.’

Derek says that franchisees need no kitchen-fitting experience. ‘We’ll provide as much in-territory and head office support as you need to ensure that your business takes-off smoothly and reaches its potential. It’s more important that you have the right mix of managerial and communication skills to attract customers, do a great job and add to the Dream Doors reputation. If you can do that, call me and start writing your own success story.’

⇒ As soon as he saw Dream Doors, Mike Smith knew it was what he was looking for to diversify from his building business. ‘The

mainstream construction industry had been going backwards but Dream Doors was something else. It’s a strong brand that’s been proven both internationally and in New Zealand, and it has a real point of difference.’

That point of difference is based on the philosophy, ‘If it can be re-used, it can be improved.’ The company specialises in kitchen refurbishment and facelifts for laundries, bathroom vanities and bedroom wardrobes. ‘The framework of many units is often perfectly sound but just worn or dated,’ explains Derek Lilly, co-founder of Dream Doors. ‘Dream Doors supplies and fits a huge range of new doors, surfaces and fittings to restore looks and value for a fraction of the cost and wastage of new units.’

Derek brought Dream Doors to New Zealand from the UK in 2007 and it proved instantly popular. Today there are 10 franchisees around the country, with room for many more as home owners and developers increasingly refurbish, renovate and re-invest in their properties. In fact, the company offers franchisees an unprecedented guarantee. ‘The initial investment is $30,000 and if at the end of five years you want to move on for any reason whatsoever, we will refund that entire sum to you,’ Derek promises.

It wasn’t just the guarantee that attracted Mike and his wife Camille. ‘It’s about people and projects, and with Camille’s background in marketing,

Advertiser InfoDream Doors (NZ) LtdPO Box 31, Lake Hawea 9345www.dreamdoors.co.nzContactDerek LillyP 0-3-443 5133P 0800 437 326M 027 213 [email protected]

Mike Smith: ‘Our only real surprise has been the speed at which our turnover is increasing’

57Find more info at franchise.co.nz

⇒ Over the years, I’ve taken a great number of calls at the Franchise Advisory Centre which have all asked essentially

the same question:

‘My franchisor wants me to do/stop doing/change/upgrade/divest something. Can they make me do that?’

Unfortunately for the enquirer, the answer is almost always the same:

‘Read your franchise agreement. The answer will be in there.’

After reading the franchise agreement, most franchisees find that the franchisor does have the authority to require a franchisee to do/stop doing /change/upgrade/divest something. Strangely, learning this can sometimes come as a shock. Conversations between franchisees and franchisors afterwards might go something like this:

Franchisee: I didn’t agree to this.

Franchisor: Well, actually you did. It’s in the agreement you signed.

Franchisee: Yes, but there’s a lot of stuff in the agreement. You can’t possibly expect a franchisee to read and understand it all.

Franchisor: But you also got professional advice from a lawyer before you signed the agreement.

Franchisee: Yes, but that was all in legalese and only because you wouldn’t grant the franchise if I didn’t get advice. I didn’t realise I would still need to do/stop doing/change/ upgrade or divest something now – not after being in the system all this time!

At the end of such a conversation comes the awkward moment where the franchisor wishes the franchisee would just get on with it, and the franchisee is clearly reluctant to get on with it because they feel that, irrespective of what’s in the agreement, they haven’t tacitly agreed to do or stop doing whatever it is that was at the heart of the issue in the first place.

Despite the apparent contractual

obligation of the franchisee to follow the agreement, the franchisee then often changes tack and questions why they need to do or stop doing something, thus forcing the franchisor to rationalise (possibly for the umpteenth time) why the outcome is needed.

The End Of A Beautiful FriendshipDuring these exchanges, frustrations can quickly build up on both sides. In the process, the franchisee’s respect and regard for the franchisor is diluted, and the franchisor often becomes more determined than ever to

force the franchisee to do as they are told. It may culminate in the franchisor sending the franchisee a breach letter putting them on notice that unless they comply they may have their franchise terminated.

Once threatened with the prospect of termination, a hitherto happy and productive relationship can be changed for ever. The franchisee sees red, the situation is inflamed, and nobody lives happily ever after.

Franchise Agreements Are The Ultimate Pre-NupOf course, both sides could (and often do) conduct themselves better in these situations than in the scenario above, but the point remains that the franchise agreement gives the franchisor significant scope to require certain things of a franchisee during the term of the franchise and, more often than not, franchisees are not fully aware of this at the outset or have forgotten about it by the time the issue actually arises.

The most common reason for this is that many franchisees simply do not read their franchise agreements before they commit to the franchise or, even if they do read the agreement, they do not understand or retain its key details and obligations. Given the importance of the document, that’s

Franchisees who don’t take the time to understand their obligations under the franchise agreement are storing up trouble for the future, says Jason Gehrke

WHY DON’T FRANCHISEES read their franchise agreements?

Employing a specialist franchise lawyer to review a franchise agreement that others have already signed might seem a waste of money, but it’s essential if you want to make the right decision for you. Here are six reasons why:

1. The agreement might have changed since the last franchisee signed it.

2. It might contain provisions that do not suit your particular situation or circumstances.

3. You might have read it yourself, but do you know what all those legal terms mean and how they might be interpreted by other lawyers – or a judge?

4. The agreement will govern how you operate the business from day one to the day you sell it – and even who you can sell it to. Do you really want to assume you know what it means?

5. An experienced franchise lawyer will know the industry, the business and the people involved. Get that inside knowledge working for you.

6. The franchise operations manual may well be linked to the franchise agreement. If so, you’ll need to know if failure to follow a procedure in the operations manual is a breach of the agreement and could potentially result in termination of the franchise.

You can find more reasons to use a lawyer at www.franchise.co.nz/article/806 and a list of suitably-experienced law firms starting on page 81 of this magazine.

Why Use A Lawyer?

⇒QuickTips

Buying A Franchise: Legal Matters


Buying A Franchise: Legal Matters

a huge problem. You’ll sometimes hear people say ‘Franchising is like a marriage between franchisee and franchisor.’ Well, if that’s true, franchise agreements are the ultimate pre-nuptial contract. Everything that happens in your married life (and, indeed, how things will be settled if the marriage ends) is taken into account in a comprehensive pre-nuptial agreement. Franchise agreements are no different – if anything, they are even more comprehensive than pre-nuptial agreements.

So Why Don’t Franchisees Read Them?The decision to become your own boss, and the process of searching for the right business, is an emotional journey fraught with highs and lows. When a franchisee finds ‘the one’, the rational analysis of the decision can be compromised by the excitement and emotion of the prospect of finally taking control of your own destiny. Psychologists can make of this what they will, but the decision to buy a business has few parallels in many people’s lives.

The nearest comparison in terms of major life-changing decisions might be the decision to get married or the decision to buy a home. While a certain rationality may exist in both of these decisions, choosing spouses and homes are effectively emotional decisions and if these are the only frames of reference franchisees have, it is highly probable they will approach the decision to buy a franchise in a similar way.

In other words, they will choose a particular franchise because they like it, and then will rationalise everything else to fit the decision.

This means that when the time comes for the franchisor to provide the franchise agreement and disclosure documentation, a potential franchisee may already be wedded to the idea of buying the franchise. The advice they seek (if any) will be to validate their decision, not repudiate it. They will focus on the elements that attracted them in the first place, and often not consider or simply discount anything that doesn’t fit their decision – including the franchise agreement.

Once the decision to buy the franchise has been made, a franchisee can view the signing of the franchise agreement as a necessary formality to be tolerated, and the obtaining of advice about the agreement as an

About the Author

inconvenient cost and delay to be endured. This is hardly a mindset that lends itself to robust examination of the contents and implications of the franchise agreement.

The result of an emotionally-driven decision to buy a franchise is that the finer details are overlooked at the outset and only come to the fore as time and circumstance progress, leading ultimately to the sort of conversations outlined above.

How To Avoid Nasty SurprisesOf course there are a great many franchisees who do read their documents in full prior to buying a franchise and develop a complete understanding of their obligations under the franchise agreement before proceeding, but there remain many more who do not.

For those who fail to give the agreement proper attention before signing and are emotionally-driven in their buying process, life as a franchisee will sometimes include some unexpected (and not always pleasant) surprises.

To avoid such surprises, every franchisee should always read everything related to the business (and get professional advice) before committing to buy a franchise. They should also get professional advice from franchise-experienced professionals, particularly lawyers and accountants (see panel). Franchise agreements are not exactly light bedtime reading, so it pays to get someone who understands the implications and obligations they contain to go through them and explain them. That way, the chances of unnecessary future conflict can be reduced and both franchisor and franchisee will be able to get on with building successful businesses based upon mutual understanding.

Jason Gehrke is a director of the Franchise Advisory Centre and has been involved in franchising for over 20 years at franchisee, franchisor and advisor level. He conducts franchise education programmes throughout Australia and New Zealand and publishes Franchise News & Events, a fortnightly mail bulletin on franchising issues.

59

⇒ In 15 years, Small Business Accounting (SBA) has grown from a bright idea to a network covering the country. The original concept,

offering affordable accounting services via walk-in high street shops, has proved hugely popular with small businesses and rental property owners – not to mention franchisees. Take Steve and Julie Brailsford of New Plymouth, for example.

The Brailsford family emigrated to New Zealand from the UK in late 2003 and took their time looking around to find the right jobs or the right opportunity. ‘Julie had spent 15 years as a branch manager in the banking sector, whereas I had engineering qualifications and a background as a computer systems analyst as well as taking accounting papers,’ says Steve. ‘We had both run businesses and in the nineties I had two franchises – one recycling printer consumables and the other commercial cleaning – so when we found SBA, it seemed a good fit.

‘Back in those days, SBA was quite young – I think there were only about ten outlets. But word got around quickly, and the great advantage of the accounting business is that clients tend to stay loyal. We have always done some marketing, but the majority of our business today comes from location or referrals. Of course, SBA now has such a strong brand and that’s backed by TV and radio advertising. It all brings customers to our doors and has helped us create an excellent business.’

Steve says another of the keys to the success of SBA is the affordability of its service. ‘People come to us because rather than traditional year-end accounting we provide inexpensive services such as ‘set fee’ monthly accounting that enables people to stay on top of their business without spending a fortune. We’re not Chartered Accountants – they spend many years training and offer great and detailed advice, but the majority of small businesses in New Zealand don’t need that. What they need to know is how they are doing, what’s coming up and how they can do better – and that’s exactly what SBA provides.’

Professional Service, Professional SupportSBA now has almost 20,000 customers nationwide serviced from over 40 outlets. In 2007, the company was bought by businessman, entrepreneur and former Black Cap Adam Parore, who added his own financial nous to provide franchisees with leading-edge software and integration with Banklink and Xero, as well as developing what is now a widely-used internet based support and advice forum among SBA franchisees.

Steve Brailsford says this has been extremely valuable: ‘SBA has a huge pool of talent to tap into, and anyone buying a franchise today will be joining more of a family than a business as we all help each other in so many ways.’

SBA franchisees don’t need accounting qualifications, although book-keeping, administration, small business or financial experience is a must. The franchise costs $38,000 +gst, with an additional $15,000 needed for shop fit-out and other capital investment.

‘If you know the difference between a credit and a debit, everything else comes out in the wash,’ says Steve with a laugh. ‘Seriously this business runs pretty much how we expected it to run, and obviously we’ve done it the right way. In 2004 we were named SBA’s Newcomers of the Year and in 2005 we took the Franchisee of the Year award – something we repeated in 2012. That’s all down to the personal service we offer and the fact that people can simply drop into our shop to chat or sort out minor problems.’

Established And New Opportunities AvailableAnd Steve and Julie have now decided to put their award-winning business on the market. ‘We’ve had ten years during which our children have grown up and gone to university, so it’s time to have a change and move on to something else. But I can’t recommend this franchise more highly – it’s a damn good business and it’s been very profitable for us. The big strengths are the new technology which the franchisor is implementing, and the fact we have such a close network of expertise. When I look back I think we were a bit on our own in Taranaki when we started, but that’s certainly not the case today! It’s been a perfect fit for us and we are very relaxed about when we sell it.’

Steve says there’s still plenty of growth to come, too. ‘We opened in New Plymouth but we have a presence in Stratford, too. We did own SBA Wanganui but the travel was too much so we sold that and today we have consolidated our business round New Plymouth. It’s the sole outlet for Taranaki, which Statistics New Zealand has named the fastest-growing economy in the country, so whoever buys this business has enormous potential to tap into.’

And Adam Parore says the SBA franchise is continuing to expand in other areas, too. ‘Small businesses all over the country are continuing to switch to SBA to benefit from our approachable accounting services, so we have opportunities in cities and towns nationwide. Call me today and find out more,’ he invites.

SBA franchisee sums up ten years: ‘It’s a damn good business and very profitable’

Franchise Opportunity: Business & Commercial

Find more info at franchise.co.nz - Search: Small Business Accounting

Find more info at franchise.co.nz - Search: Small Business Accounting

looking back with PRIDE & PLEASURE

Advertiser InfoSmall Business AccountingPO Box 47 818, Ponsonby, Aucklandwww.sba.co.nzContactAdam ParoreP 0-9-378 0934F 0-9-523 [email protected]

Julie and Steve Brailsford: ‘We can’t recommend this business more highly’

don’t be TAKEN FOR A RIDEBuying A Franchise: Choosing Wisely

Some business opportunities may not be all they seem


• The initial franchise fee is higher than can be justified (see why you need an accountant?). • The franchisor is more interested in selling you the business than finding out whether you have the experience and ability to run it.• You have only met the franchisor in a hotel and there is no operating entity in New Zealand. • There are unreasonable restrictions on who you can buy goods from, or how much you must buy, or at what price. • You are put under pressure to sign up now rather than lose the territory of your choice.• You are not given time to carry out due diligence on a company before making a decision.• There is no ‘cooling-off’ period allowed after signing.• The franchisor does not see the need for you to consult a lawyer and an accountant.• The franchisor wants to take a credit card impression for a deposit payment, promising not to use it unless you confirm you wish to proceed.• Previous franchisees have failed and you are given no satisfactory explanation why.• The contract allows the franchisor to terminate without cause.

Being aware of these danger sign should help you to avoid being taken for a ride. However, it’s still up to you to ensure that the franchise you choose is a genuine opportunity that will be a good match for your interests, skills, financial resources and expectations.

A good franchisor will not only allow you time to do this – they will insist that you take professional advice from a lawyer and accountant and actively encourage you to make an informed decision. In the long term, the best franchises succeed not because they do the hard sell but because they take the time to appoint the right people. It’s your life and your money, so make sure you take care.

⇒ While franchising is generally a low-risk way of getting into business for yourself, you still need to take care. Some business

opportunities that you see advertised at expo’s, over the internet or in the papers may not be all they seem. Most problems come from companies that claim to offer ‘franchises’ or ‘business opportunities’ when in reality they offer little or no training, support or systems. However, even brands that are well-established overseas can run into problems in New Zealand if they haven’t adequately researched the market here. They may genuinely believe that they have a great opportunity, but it is up to you to make sure whether that is the case.

Here are some warning signs you should be aware of. If you come across any of these, be very, very careful – and don’t sign anything until you’ve had time to check the ‘opportunity’ out fully (our list of questions to ask on page 46 should make any dodgy operator run a mile).

• The ‘franchise’ has no operation already running in New Zealand to prove that it works in practice (we’d suggest looking for a minimum of 12 months so that any seasonal variations are obvious).• The offer suggests you can make a lot of money for very little work.• The opportunity makes more money from recruiting sub-franchisees than from operating the business.• The opportunity sells you the equipment to manufacture product or carry out a service without proof of the demand for it.• The business depends for its success on an advertising campaign that cannot take place until all the franchises have been sold.• There is no adequate explanation of the reasoning behind any claims made for potential profitability or income in New Zealand.

61

⇒ With more and more organisations from corporates to clubs seeing the benefits in branded apparel, the market for specialists like EmbroidMe

is continuing to grow. ‘Branded apparel looks smart, it looks professional, it encourages tidiness and it boosts brand value,’ says Grant Archibald, master franchisee for EmbroidMe in New Zealand. ‘Now, we’re looking for franchisees to take EmbroidMe into new markets.’

In recent years, many businesses have struggled – but not EmbroidMe. ‘Every month this year has seen same-store sales growth and last month was an all-time sales record,’ says Grant proudly. ‘When there’s less happening, companies look at options for increasing their profile. EmbroidMe franchisees offer a range of services – not just branded apparel and uniforms, but promotional products too. They do embroidery, of course, but also digital printing, vinyl lettering and offer screen printing. Best of all, rather than looking in a catalogue customers can visit our showrooms and see the products displayed in one easy-to-access location.’

It’s a formula that has proved popular in over 300 stores around the globe, making EmbroidMe the world’s largest embroidery, printed apparel, promotional product and personalised gifts franchise. The formula is popular with franchisees, too, as it offers a number of singular advantages over other businesses.

‘There are no late nights or weekends involved with an EmbroidMe franchise,’ says Grant. ‘Stores are open Monday-Friday. There is no requirement for anything other than minimal staff and there is no requirement to hold large quantities of stock because garments and products are not ordered until the customer has selected and paid a 50% deposit. This also ensures good cash flow at all times. Finally, there’s buying power: EmbroidMe is a sister franchise to Speedy Signs, which has 23 outlets in New Zealand and a further 850 around the world, giving us huge group muscle on equipment and supplies.’ Grant’s company, Business Franchise Group, also owns the Contours Womens Gym franchise (see page 51).

Massive GrowthAdam and Kathryn Cullen have experienced the power of both EmbroidMe and Speedy Signs in Dunedin. ‘We had a small sign-writing business ten years ago which we converted to Speedy Signs because we felt the systems

and marketing were superior to anything we could develop ourselves. It was the right decision, as annual turnover grew to over $1 million. So when the opportunity came up to acquire the EmbroidMe franchise in 2007, we seized it – the systems are much the same and we knew we had a support team with integrity and experience behind us.’

Adam and Kathryn moved EmbroidMe and Speedy Signs into their own purpose-built locations earlier this year to bring the two brands closer together. ‘It’s much more convenient for our customers and increased the conversion rate for both brands. Turnover is up a massive 27% on this time last year,’ Kathryn says happily.

‘We’re close to a growth area where new businesses are springing up all the time and it’s noticeable how all businesses, irrespective of size, are feeling the need to look professional. The big advantage we offer is that we can easily keep their image consistent everywhere they use it: signs, vehicles, shirts, promotional pens, etc.’

Despite being at the other end of the country from the franchisor, Kathryn has found this has never been a drawback. ‘Grant and his team are very supportive and help is only a phone call away when we need it,’ she says, ‘and the buying team work exceptionally hard to get us good deals on bulk supplies.’

Two For The Price Of OneWith business confidence bouncing back, EmbroidMe is gearing up to meet growing demand. ‘In addition to Dunedin, we already have six established locations in the north and now we’re looking for people to open in cities and towns around the country,’ says Grant. ‘We provide full training, group marketing and, of course, ongoing buying, technical and operational support. It’s affordable, too – our finance packages enable you to get into your own EmbroidMe business for a little over $100,000 in equity.

‘In fact, we have a very special option for provincial centres such as Gisborne, Wanganui, Napier, Timaru and Queenstown: a co-branded EmbroidMe and Speedy Signs store for the one fee. This gives you the benefit of two brands – and two income streams – for the price of one. It’s a model we’ve successfully proven in the pilot co-branded store in Rotorua, where it’s created a one-stop branding shop for local businesses. EmbroidMe and Speedy Signs have a similar customer base and the same process and management systems, which makes them very attractive for keen entrepreneurs.’

And Grant says there could also be a huge opportunity for associated business, such as printers, to diversify and increase their business by adding an EmbroidMe outlet to their existing set-up. ‘After all, as business-to-business supplies, branded clothing and promotional products are both very complementary to printing.

‘But whether you want a stand-alone business or an add-on, one brand or two, we have some great opportunities. So if you fancy owning a turn-key business, want to work business hours, like dealing with people and helping businesses look more professional, take a look at EmbroidMe. Call me now!’

EmbroidMe offers regular hours, buying power and an exciting incentive for new franchisees

Franchise Opportunity: Business & Commercial

Find more info at franchise.co.nz - Search: Business Franchise Group

Find more info at franchise.co.nz - Search: Business Franchise Group

Advertiser InfoBusiness Franchise GroupPO Box 51 890, Pakuranga, Aucklandwww.embroidme.co.nz www.speedysigns.co.nz ContactGrant ArchibaldP 0-9-577 4223M 021 662 [email protected]

Kathryn and Adam Cullen (inset) operate both franchises from their new premises in Dunedin. Turnover is up a massive 27 percent over last year!

the benefits of BRAND POWER

rational GERMAN KITCHENS

For further details on a Palazzo franchise opportunity contact: Ron Neale on 021 978 348 or [email protected]

GERMAN KITCHENS

Why choose aPalazzo franchise?• Germany’s largest kitchen brand (exclusive)

• The latest in design technology

• Renowned appliance brands

• Comprehensive training & support

• Full website & marketing resources

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63

⇒ According to Ron Neale, over a thousand kitchens will be sold next year by Palazzo Kitchens & Appliances. That’s quite an achievement,

and it’s even more impressive when you consider that these kitchens are not flat-pack specials but quality European-made custom designs.

Palazzo has been successfully importing fully-assembled kitchens from two of Germany’s most reputable kitchen manufacturers since 2003, operating from premises in Christchurch, Wellington and Timaru. Now the first franchise has also opened in Dunedin and more are already being discussed.

David Gray has the distinction of being the first Palazzo Kitchens & Appliances franchisee. David is no stranger to the industry, having been in appliance retailing and servicing for over 20 years – in fact, it was his experience that led him to recognise the value of the Palazzo model. ‘The retail appliance industry has got much tougher,’ explains David. ‘Appliance retailers are all in the same box – we all have the same products with price being the only differential, so prices get driven down and as an industry we’re being shopped to pieces. Palazzo offers the ability to offer something different, value-driven with the unique advantage of European quality.’

David says he was well aware of Ron Neale’s reputation as a ‘straight shooter’ before meeting him a year ago. ‘Ron took me through his experiences and his plans to franchise Palazzo Kitchens & Appliances and it was all go from then on. Initially we operated as a Palazzo sales agent with design work handled by Ron’s staff and that gave us confidence so, when Palazzo was launched as a franchise system in July, I grabbed the opportunity. The Palazzo franchise system is great, the training excellent, the people fantastic and the products brilliant. The German-developed 3D design software we use is light years ahead and, as franchisee numbers increase, the brand is set to go from strength to strength. This is an absolutely amazing opportunity.’

People & Business Skills RequiredDavid’s diversification into the kitchen industry has led him to appreciate just how much of a people business it is compared to selling just appliances. ‘My early feeling is that product and price account for only 50 percent of the purchase decision, with the balance based on the relationship established between customer and retailer. That’s why as a Palazzo franchisee it’s vital to invest in the right staff. Your people on the showroom floor, the kitchen designers and the contract installers have to be the best. It’s the combination of local custom design and service with European product quality that makes Palazzo unique in the market.’

But isn’t importing expensive? Ron Neale explains: ‘Well, for every manufacturer the vast majority of kitchen cabinetry materials, hardware and production technologies are imported and then assembled here, so all we’re doing is taking advantage of the scale and quality offered by our European suppliers. Nobilio, one of the German manufacturers we have an established relationship with, produces 2500 kitchens every day, and the average turn-around of 12 weeks from sending the design off-shore to installing the finished product often compares favourably with local joiners. And, with the

exception of laminates, our granite and other solid benchtops are New Zealand supplied.’

David adds, ‘Our range enables us to compete with everything from locally-made $7000 chainstore flat-packs through to $60,000-plus gourmet kitchens. But even with our lowest priced kitchens, all cabinetry is dowelled and glued, leaving the factory floor fully-assembled and quality-checked. As for appliances, Palazzo customers are spoiled for choice with some 35 brands that include Sub Zero, Blanco, Electrolux, Asko, Omega, Faber and Wolf.’

David’s current top priority is completing the Palazzo Kitchens & Appliances showroom in Dunedin, which will house 14 kitchens to introduce potential customers to a whole new world of design ideas, surface finishes and innovative labour- and space-saving hardware behind a range of cupboard and drawer fronts.

It’s A No-BrainerRon reports that he’s had a lot of interest in Palazzo since launching the franchise earlier this year, and several locations are already in negotiation around the country. He’s keen to hear from anyone who has the right combination of business experience with sales and marketing skills, like David. ‘David’s long involvement in appliances is an obvious bonus and I’m happy to talk to others in the same industry. Really, though, it’s about finding people who are the right fit.

‘The required capital investment totals $350,000 to $450,000, which covers establishment and initial operating costs for a showroom of at least 450 sqm. It also includes all systems and manuals, training, setting up approved suppliers and contract installers, staff recruitment assistance and help with finding suitable premises. Yes, it’s a sizeable investment – although much of it can be financed – but we’ve proved it can produce sizeable returns, too.’

And David Gray agrees. ‘If you have the experience and the skills, and you’re looking for an opportunity where you can invest yourself in the business, contacting Ron Neale at Palazzo is a no-brainer.’

The first Palazzo Kitchens & Appliances franchisee tasted the business and wanted more


Find more info at franchise.co.nz - Search: Palazzo Kitchens & Appliances

Find more info at franchise.co.nz - Search: Palazzo Kitchens & Appliances

QUALITY AND SERVICE make the difference

Advertiser InfoPalazzo Kitchens & Appliances PO Box 10 120, Phillipstown, Christchurch 8145www.palazzodesign.co.nzContactRon NealeP 0-3-366 6948M 021 978 [email protected]

The Timaru store showcases European quality and local design


what do you get for yourFRANCHISE FEES?


⇒ If there’s one topic guaranteed to create discussion among both franchisees and franchisors, it is franchise fees – both initial and

ongoing. How are they calculated? What should they cover? How much should they be? All of these questions and more are sure to arise in any such conversation. In this article, we set out to explain the purpose of franchise fees and the value franchisees should receive from paying them. Franchise fees can broadly be divided into two types: initial and ongoing.

The Initial Franchise FeeThe initial (or ‘upfront’) fee is paid by a new franchisee to the franchisor, and this is the one-off payment made to get into the franchise. Accordingly, it is usually called the franchise fee. The fee charged will vary markedly from system to system as it reflects the individual circumstances of that particular business. However, it will usually include the right to use the franchisor’s trade name, trademarks and operating system; services to help you establish your new business; access to the confidential operating manual; any specialist computer software or set-up; initial training for you, your partner and/or key staff; and on-site assistance and training at your location prior to or during the opening period. In many cases, the initial fee will also include a marketing programme to launch your new business, although sometimes this is accounted for separately.

The purpose of this fee is usually to recover the costs incurred by the franchisor in training you and helping you establish your new business, and to repay a proportion of the costs that they have incurred in developing the franchise system in the first place. However, in some cases, the franchise fee is set below cost for marketing purposes, on the basis that attracting good franchisees who will succeed and assist the growth of the franchise system long-term is more important than the immediate recovery of costs. If this is not an issue, an established franchise with a good brand may justify a premium and charge accordingly. Where buyers need to be vigilant is if the franchise fee is set at a high level in order to provide an immediate return to a franchisor, rather than the franchisor expecting to make money from the ongoing success of the franchisee. A franchisor who makes most of his or her money from selling franchises is less likely to be concerned about the long-term profitability of franchisees.

As always, taking professional advice from a franchise-experienced accountant or consulting your bank’s specialist franchise division will help you to understand where your own chosen franchisor stands on this issue.

Ongoing Franchise FeesOnce a franchisee has joined the franchise system and begun trading, they will also be liable to pay ongoing fees. These fees may also be termed royalties, management service fees or ongoing franchise fees, and they are intended to pay for a variety of services.

The ongoing fees charged by a franchisor, and the services provided in return, also vary from one franchise to another. Some franchises provide a high level of support to franchisees: for example, computerised point of sale systems which not only offer easy financial and stock management but also ordering from suppliers. Where such a system is linked to the franchise support function, it enables the franchisor to monitor ongoing trends not just on a system-wide but also an individual basis, and to provide pro-active assistance to franchisees when required. Such a service is expensive to establish and maintain, but is extremely valuable to a franchisee and therefore will require (and justify) a higher level of ongoing fees.

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On the other hand, a franchise business in an industry such as mobile coffee carts might require little individual support on an ongoing basis once each franchisee is established, although of course the franchisor still has a major role to play in such areas as co-ordinated marketing, supplier negotiation, research & development and communication. It might therefore be reasonable to expect that ongoing fees will be charged at a lower rate.

In addition to the ongoing fee paying for the provision of services and the upkeep of the franchise support office, it should also include a measure of profit for the franchisor. This should not be begrudged by franchisees: if the franchisor is not making a profit from the business, then there is little incentive for him or her to stay in business and support the ongoing development of the system. As long as the franchise is properly structured so that both franchisor and franchisees make a fair return on their investment over a reasonable period, everyone should be happy.

In some cases, ongoing fees may be charged separately for different services, such as:

• Management Fees• Training Fees• Conference Fees• Accounting Fees (where additional services are provided)

The most important thing about fees is not what they cost or what level they are set at, but what services they pay for. Any fee charged should be justifiable by the franchisor and shown to provide specific benefits to the franchisee of a value at least equivalent to the cost.

How Are Ongoing Fees Calculated?There are a number of different ways that ongoing fees can be calculated, and all of them are perfectly acceptable providing they are fair and clearly understood by both franchisor and franchisees. The following are all commonly in use in New Zealand, with some systems combining one or more of the methods.

1. A straight royalty payment calculated as a percentage of franchisee turnover (not profit). Such a method requires the franchisee to declare their turnover and to pay the ongoing fee on a regular basis (often by direct debit from their account). This has the advantage of fluctuating with a franchisee’s sales, so your business pays more only as it grows. A potential disadvantage, if the franchise has not been properly structured, is that while the franchisor might get a regular income from

your turnover, you the franchisee may struggle to operate profitably. It’s important to get the figures checked out by a good franchise-experienced accountant (see the Directory on page 80) before you decide which franchise to buy.

2. A flat fee payment on a weekly or monthly basis. This is a very straightforward system and is commonly used in industries such as home services where the calculation of weekly turnover would be a difficult and time-consuming task for all concerned (not to mention open to abuse). In many systems, the level of fee varies within bands according to the size of the business.

3. A mark-up or margin on products provided. This means that franchisees pay only for what they actually buy, so offers many of the same advantages as option 1. If the franchisor is manufacturing or wholesaling product, a mark-up is reasonable providing the product remains competitively (preferably advantageously) priced compared to similar products available on the open market.

4. A commission paid by suppliers under a similar arrangement to the previous option. In some systems, the franchisees pay no fees and

the franchisor manufactures no product, but the approved suppliers pay commission to the franchisor on all products supplied to franchisees. This is a perfectly acceptable arrangement provided it is transparent to franchisees, and provided franchisees buy only through the approved suppliers.

5. A fee, mark-up or margin on services provided. If the franchisor is providing, say, a central booking facility or debt collection services for the franchisees, these may be charged for separately. As with 3), such services need to be charged for at a competitive rate.

6. By taking the head lease of a property and sub-leasing it to a franchisee at a margin. In some cases, this may be the only way a franchisee can get into a particular property, as some landlords prefer to deal with franchisors. Once again, this is perfectly acceptable (McDonald’s use this system) provided it is transparent to franchisees.

Marketing FeesIn addition to the fees which are charged in one or more of the above ways for the services which the franchisor provides (and their profit element), many franchise systems also require franchisees to make a contribution

How much should franchise fees be and what do you get for your money? Lorraine Lord answers the questions

• What is the initial franchise fee? What does this cover? What additional fees may I need to pay upfront, eg. training, marketing launch, software set-up?

• What other upfront costs should I expect: shopfitting, equipment, staff training, signage, uniforms, vehicles, computers, stock? Please provide a list of all items required and an indication of costs (these may vary according to location). Are any of these costs included in the initial franchise fee?

• Apart from fees and establishment costs, how much working capital (ie, cash to run the business, cover wages and other overheads) do I need?

• How do you, the franchisor, make your money on an ongoing basis? (see the six different methods listed in the article). How are these fees calculated?

• Do I have to buy all or just certain scheduled items from the franchisor? Are there any other fees?

• What levels of support or assistance do I get for the royalty? Does it represent value for money?

• How do the level of fees and the level of support compare to other franchises in the same sector? Can the difference be explained and justified by the franchisor?

• How open are financial details within the franchise? For example, does the franchisor declare the level of any mark-ups or commissions or rebates paid by suppliers? Do suppliers contribute to a marketing fund?

• Do existing franchisees think the fees they pay provide fair value for money?

Some key questions to ask about franchise fees

⇒QuickTips



to a marketing fund. This is not a revenue stream for the franchisor and should not be seen as such by either party. The franchisor is accountable to the franchisees for monies gathered and spent for this purpose, and franchisees may well be involved (either through a franchise advisory council or a special marketing committee) in deciding how they should be spent.

National marketing contributions are usually required in addition to any funds spent on local marketing by franchisees. Many systems will actually require both, and they are budgeted for accordingly.

Marketing contributions are usually collected via percentages, flat fees or margins. In addition, contributions may be made by third party suppliers, either directly into the fund as negotiated by the franchisor or through the provision of agreed joint promotional material for use by franchisees. Suppliers might also contribute to the costs of conferences, new product training, supplier expo’s or a variety of other activities. Once again, it is wise to ensure that any such arrangement is transparent to franchisees, as nothing is likely to upset a franchisee more than the ‘discovery’ that the franchisor has an additional source of income for expenditure which the franchisees might otherwise believe is coming out of the franchisor’s own pocket.

What’s The Norm?Having explained all that, one of the questions that is most often asked by prospective franchisees (and by some prospective franchisors) is, ‘What’s the normal level of franchise fees?’ Indeed, we have heard of one franchise system about to be established where the fees had been set at a certain percentage because the franchisor’s lawyer, in drawing up the agreement, had said ‘that’s what most other franchises charge’. Such an approach is incredibly dangerous, as I hope the above has demonstrated: fees need to be worked out on the basis of paying for essential services, rather than on the basis of any real or imagined ‘norm’.

In fact, the range of ongoing fees calculated on a percentage basis will vary considerably from 0 percent (where one of the other methods of

generating revenue is used) to 15 percent or above (where considerable services are provided to the franchisee). While the average level of a turnover-based ongoing fee might be around 6 percent (excluding marketing contributions), this is meaningless without knowing what it pays for. It may be of some value, however, to know that, compared to a turnover-based fee, where a margin on products is used instead that margin probably averages nearer 25 percent. This is because the product itself is only part of the cost of delivering it to the customer. Once again, though, figures vary from system to system; prospective franchisees need to take advice (and consult existing franchisees) to determine whether the fee structure of any particular franchise represents value for money.

Be Prepared To PayFinally, once you are operating your franchise, accept that the fees are there for a good reason and don’t be tempted to cheat by under-declaring sales. That’s not fair to other franchisees and it’s not fair to the franchisor. From your own point of view, it would be a breach of your franchise agreement and could cost you the business when you are found out (which you will be at some point). If you also under-declare to the IRD, you could end up in even bigger trouble. It’s also worth remembering that if you hide your profits, your business will be worth less when you come to sell it.

To summarise, fees are the fuel that enables the franchisor to help your business, and those of your fellow franchisees, to grow. There is no one level or method of collecting franchise fees that is suitable for every system. If you are looking at buying a franchise, don’t compare the level of fees to some notional ‘norm’ – instead, look at what the franchise fees are paying for. What is important is not how much they are, but whether they are realistic and how much value the services they pay for will bring to your new business.

About the AuthorLorraine Lord has been involved in franchising for over 30 years. She has a background in field support and franchisee training, as well as having run a franchised outlet in London.

www.pararubber.co.nz

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69

⇒ In nine years on the road selling tools, Mike

Bird noticed something: he did well for his employer except when he found himself competing with Snap-on Tools. Earlier this year, he decided ‘If you can’t beat them, join them’ and bought his own Snap-on Tools franchise. After just a day at the company’s Training School in Dallas, Texas, he discovered the reason why.

‘No wonder I lost sales to Snap-on,’ Mike laughs. ‘The tutors were absolutely brilliant and covered everything so well: how to approach customers; how to display and talk on behalf of the tools; how to overcome objections; how to promote and process Snap-on Credit - you name it, it was taught. The programme also included a thorough grounding in Snap-on business and computer systems. And that wasn’t the end of it - back in New Zealand, I had an experienced Sales Development Manager on the road with me for the first month to help me put it all into practice and get my business off to a flying start. It was a revelation.

‘Now I understand how Snap-on franchisees can come from all walks of life, teaching or management or whatever, and go on the road looking and sounding as if they’ve been selling tools for years. They’ve learned from the best.’

As you’d expect from a precision tool manufacturer, Snap-on doesn’t believe in leaving anything to chance. Prior to Mike going on the road, his Snap-on Sales Development Manager had thoroughly surveyed his Hutt Valley and Wairarapa territory, visiting automotive repair and other potential customers to create a database for Mike to follow up. ‘It’s a great system that means no cold calling,’ explains Mike. ‘From day one, I had a pre-arranged route and cycle to follow and was able to concentrate on forming relationships and earning income. Snap-on also set up my mobile unit – an all-in-one air-conditioned stockroom, showroom, retail outlet and office. It means there are no ground rental or utilities costs, and no having to wait for customers to come to you – you can take the showroom straight to their workshop.’

And being able to offer credit gives franchisees a very definite competitive edge. ‘Snap-on Tools are the world’s best and while my customers want the

best, they don’t always have money available. Snap-on Credit means that I can set up a line of credit on-the-spot. The customer gets what they want, and I get the sale.’

Worldwide And BeyondSelling direct to customers has been

part of Snap-on’s business model since it was founded in the 1920s. The original innovative design allowed 10 different sockets to ‘snap on’ to 5 interchangeable handles but today the range has expanded somewhat with over 19,000 products including hand and power tools, tool storage solutions, diagnostics equipment and software, information and management systems and shop equipment for the automotive, aviation, space and many other industries.

It is estimated Snap-on tools are used to service and repair 40% of the world’s vehicles. Snap-on has earned its place in the pits of Formula 1 and NASCAR teams; it is the tool specified by NASA and is also the brand on the toolkit that comes with the F-18 Super Hornet jet fighter. Today, Snap-on invests around US$50 million a year on research and development and currently has some 2,000 active or pending patents.

Your Own Business From $37,000So how did Mike Bird move from being a mere employee to a franchisee with all this expertise and muscle behind him? Nick Hudson, national franchise manager for Australia/New Zealand, explains. ‘Snap-on has an innovative finance programme that means a minimum down-payment of $37,000 is all a Snap-on franchisee needs to get them up and running. It enables us to appoint franchisees on their attributes and determination rather than whether they have the financial means.

‘The typical lend is $290,000, which covers the franchise fee, inventory and a custom-built mobile store, as well as a $30,000 line of credit for the first six months,’ explains Nick. ‘As part of Snap-on’s business model, franchisees are expected to finance a line of credit (Snap-on Credit) to their customers, allowing them to repay the cost of their tools over time. The interest rate varies with the franchisee’s credit rating and no repayments are made for the first three months.

‘We differ from a lot of franchises in that we don’t charge royalties and we don’t charge advertising fees. The only charges are for IT support and a monthly management fee. The result is that franchisees can get into their own business at an affordable level then pay it off as fast as they feel comfortable with. After that, it’s all theirs.’

Mike Bird is delighted to be his own boss at last. ‘My advice to anyone interested in a Snap-on Tools franchise is to get on to their website and take the Franchise Discovery Tour – that’s a series of videos showing what life is really like as a Snap-on franchisee. Then do what I did and call Nick. It could be a life-changer for you, too.’

A rival salesman learns the secrets of Snap-on Tools’ success

Franchise Opportunity: Automotive

Find more info at franchise.co.nz - Search: Snap-on Tools

Find more info at franchise.co.nz - Search: Snap-on Tools

if you can’t beat them, JOIN THE BEST

Advertiser InfoSnap-on ToolsPO Box 6077, Blacktown NSW 2148www.snapontools.com.auContactNicholas HudsonP 0800 762 [email protected]

‘Being able to offer Snap-on Credit on the spot means the customer gets what they want and I get the sale,’ says Mike

Mike Bird: ‘Snap-on Tools are the world’s best - it’s the brand on the toolkit that comes with the F-18 Super Hornet jet fighter!’

70 Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Volume 22 Issue 03 Spring 2013

⇒Franchise and Business OpportunitiesCompany Contact Pa

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0800 2 Fix It Home & Building

$30,000 NZ’s leading trade services franchise system. Seeking plumbers, mechanics and electricians. 6 6

N M 021 403 540 franchise.co.nz – search: 08002fixit

0800 Sunshade Home & Building

$25,000 0800 Sunshade are designers, manufacturers and installers of outdoor weather protection products.

7 7

N P 0-6-876 9675 franchise.co.nz – search: Sunshade

AA Auto Centre Auto Services

$150,000 NZ’s premier provider in the auto service and repair market. 26 26

N P 0-9-966 8800 franchise.co.nz – search: AA Auto

Accessman Home & Building

$250,000+ Specialist hire company supplying access equipment to the construction and maintenance industry.

8 8

Y P 0-3-341 6333 franchise.co.nz – search: Accessman

ActionCOACH Business & Commercial

$80,000 ActionCOACH is the world’s #1 global network of business coaches and trainers. 30+ 1200

Y P 0800 228 466 franchise.co.nz – search: Actioncoach

AluRestoreSteve & Beryl Todd

Home & Building

$49,000 Fully mobile aluminium joinery re-coating franchise. Specialised hard-wearing coatings with huge colour range. No other franchise of its kind in New Zealand. Seeking enthusiastic people who enjoy interacting with clients, using equipment, have an eye for detail and who are interested in customer satisfaction.

1 1

N P 0508 737 867 M 0274 756 937 E [email protected] W alurestore.co.nz franchise.co.nz search: Alurestore

Amazing Clean New Zealand

Home & Commercial

$100,000 - $150,000

Ultrasonic blind cleaning & repairs and curtain, upholstery/mattress cleaning. 1 70+

N P 0800 2 AMAZE franchise.co.nz –search: Amazing

Anchor Franchise Rebecca Muir

8 Food & Beverage

$300,000 Market leader in the sales and distribution of milk products and beverages throughout New Zealand including Anchor, Primo, Zing, Mammoth Supply Co, Fresh N Fruity, Dewinkel, Country Goodness, Mainland, Kapiti, Calciyum and Eon. National franchise structure operating since 1992 offering exclusive territories.

80 80

Y P 0-9-295 2742 E [email protected] W anchor.co.nz franchise.co.nz – search: Anchor

Anytime Fitness Health & Fitness

$280,000 Anytime Fitness is a convenient 24-hour international fitness club franchise. 4 1300+

N P 0-7-839 0209 franchise.co.nz – search: anytime

AquaPaintz Direct Retail $60,000 Paint manufacture and retail. High profit. No previous experience required. 2 2

N P 0-3-477 3211 franchise.co.nz – search: AquaPaintz

Archgola Home & Building

$10,000 Provider of all-weather permanent outdoor canopies. Seeking clever DIY people or tradesmen. 9 9

N P 0-9-426 0033 franchise.co.nz – search: Archgola

Armstrong Smarter Security

Business & Commercial

$150,000 Armstrong for smarter security. Retail and mobile locksmith and alarm specialists. 14 14

Y P 0-9-415 0585 franchise.co.nz – search: Armstrong

At Your Request Franchise Group

Home & Commercial

$14,000 NZ’s premium home, commercial and lawn service franchise system. 200+ 200+

N P 0800 297 297 franchise.co.nz – search: Your Request

Baby-on-the-Move Retail $35,000 Specialising in rental and sales of baby and toddler car seats and other products. 26 26

N P 0-9-422 2285 franchise.co.nz – search: Baby

Bakers Delight Food & Beverage

$295,000 Bakers Delight is the world’s largest franchise bakery with 700+ bakeries across 4 countries, serving 2 million customers each week. Trading for 29 years. Proven business formula, with over 90% success rate. Full training including baking and ongoing operational assistance. Turnkey operation.

36 700+

Y P 0800 225 388 E [email protected] W bakersdelight.co.nz franchise.co.nz – search: Bakers

Bark Busters Leisure & Education

$20,000 - $40,000

Bark Busters is the world’s largest, most trusted dog training company. 2 450+

N P 0800 167 710 franchise.co.nz – search: Bark

Base7 Home & Building

$120,000 Mobile flooring franchise. Lower overheads, higher returns. Experience not essential, full training provided.

9 9

N P 0508 356 677 franchise.co.nz – search: Base7

Bathroom Direct Home & Building

$150,000 - $250,000

Franchised bathroom renovation business. Supply and installation of bathroom products. 4 4

N P 0-9-913 3110 M 021 959 796 franchise.co.nz – search: Bathroom

bb’s CaféRachel Casley

Food & Beverage

$300,000 One of NZ’s most proven and trustworthy franchises. No previous experience required. Full training and support given. Seeking people with drive and a passion for coffee, fresh food and exceptional customer service.

21 60

Y P 0-9-377 7615 E [email protected] W bbscafe.com.au franchise.co.nz – search: bb’s

Bedpost Retail $150,000 Bedpost is New Zealand’s leading bedding franchise, Seeking energetic, customer-focused people.

14 14

Y P 0-9-278 1010 franchise.co.nz – search: Bedpost

Big Paddle Company Business & Commercial

$42,500 - $54,500

We provide a business-consulting model. Seeking experienced successful business people. 1 2

N P 0-9-630 7710 franchise.co.nz – search: Paddle

Bin Inn Retail Group Co-operative

Retail $110,000 Co-operative of nationwide wholefoods and speciality grocery stores. No previous experience required.

32 32

N P 0-9-274 5702 franchise.co.nz – search: Bin Inn

Bookends Education $30,000 Specialists in supplying all textbooks nationally to schools and other educational institutions. 18 18

Y P 0-3-377 9555 franchise.co.nz – search: Bookends

Breakers Café & Bar Food & Beverage

$300,000 - $500,000

NZ’s favourite surf/beach themed café & bar, focused on good old-fashioned service. 10 10

N P 0-6-834 0537 franchise.co.nz – search: Breakers

westpacDIRECTORYof franchising

Franchise & Business Opportunities

National Master Licence Opportunities

Specialist Advisors

⇒ ⇒ ⇒

708080

•Over 250 franchises & master licences

•Essentialdetails•Investmentlevels•Specialistlawyers,accountants,bankers& consultants

•Indextoadvertisers

Search the Westpac Directory of Franchising at www.franchise.co.nz 71

GULP!

Who Do I Contact?

How Many Are There?

What Does It Cost?

What’s Available?


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Brumby’s BakeriesRachel Casley

14 Food & Beverage

$400,000 - $450,000

Australia’s longest running and very successful bread franchise. The Brumby’s system and procedures have been developed to help you run your business. Every facet of running a Brumby’s store has been standardised to promote efficiency. Estimated turnkey price, depending on size and location.

18 329

Y P 0-9-377 7615 E [email protected] W brumbys.com.au franchise.co.nz – search: Brumby’s

Brumby’s GO!Rachel Casley

Food & Beverage

$323,000 - $505,000

Brumby’s GO! is a new evolution of the tried and tested Brumby’s Bakery concept – using Brumby’s freshly baked bread. Ready to eat, freshly prepared healthy snacks on the run. Kiosk or stand-alone options. Baking experience not essential. Estimated turnkey price, depending on size and location.

New 12

Y P 0-9-377 7615 E [email protected] W brumbysgo.com.au franchise.co.nz – search: Brumby’s GO

BurgerFuelCraig Notman

34 Food & Beverage

$300,000+ The ultimate experience in gourmet burgers. 100% pure NZ grass-fed beef, butterfly-cut chicken breast and fresh ingredients. New Zealand operated since 1995. Seeking hardworking and dedicated people with great attitude, sound financial backing, affinity with food, customer service and a desire to develop and innovate.

30 41

Y P 0-9-376 6007 E [email protected] W burgerfuel.com franchise.co.nz – search: Burger Fuel

Burger Wisconsin Food & Beverage

$140,000 “Home of the world’s best burgers.” Gourmet opportunity for operators with good taste. 24 24

N P 0-4-384 9000 franchise.co.nz – search: Wisconsin

CaciGlenice Riley

10 Health & Beauty

$250,000+ Caci is a highly sought-after, well-recognised household name. Our clinics are a profitable business in a growing industry. Successful Caci franchisees come from all walks of life – from nursing through to corporate executives and beauty therapists wanting to go to the next level.

29 29

Y P 0-9-847 9219 M 021 980 890 E [email protected] W franchise.micromode.co.nz franchise.co.nz –search: Caci

Café BotannixAlan Piper

15 Food & Beverage

$150,000 Contemporary deli cafes serving organic coffee and organic food options in Palmers garden centres.

4 4

N P 0-9-444 4369 M 021 881 119 E [email protected] franchise.co.nz – search: Botannix

Cafe2UJohn Stanton

21 Food & Beverage

$129,410 Cafe2U is the world’s largest mobile coffee van franchise. Cafe2U’s success is based on the unique “Acceleration Package” that guarantees and fast-tracks income. Intensive four-week training programme and ongoing support is provided. All you need to do is bring your smile.

7 200+

Y P 0508 004 388 E [email protected] W cafe2u.co.nz franchise.co.nz – search: Cafe2U

CAL SystemsIan Charman

64 Financial Services

$90,000 Turnkey operation. Set up and run a finance company from home. No finance experience required. Exclusive training, support, documentation and custom-built software provided. 37 years’ experience and proven success.

30 30

N P 0-4-293 6899 E [email protected] W calsystems.co.nz franchise.co.nz – search: CAL

Cartridge WorldGeoff Smith

64 Computer $100,000 – $125,000

The largest, most experienced cartridge refilling company worldwide. Franchisees operate from retail premises, refilling cartridges, retailing new cartridges and other printer consumables. Operating worldwide. Easily learned, full training provided. Includes stock, plant, training and licence fee.

36 1650

N P 0-3-446 8600 M 0274 339 829 E [email protected] W cartridgeworld.co.nz franchise.co.nz – search: Cartridge

Cash Converters Retail P.O.A. World leaders in the retailing of quality second-hand goods. Franchises available New Zealand wide.

13 Y P 0-9-414 1960 franchise.co.nz – search: Converters

Ceiling Master Home & Commercial

$62,500 Specialist cleaning system designed for ceilings, walls and exterior house washing. 3 3

N P 0-3-365 5111 franchise.co.nz – search: Ceiling

Central Landscape & Garden SuppliesPaul Brinkman

4 Home & Building

$200,000 Landscape and garden supply yards providing bulk and bagged products. Pick-up and deliveries. Will suit hands-on owner operators with a passion for excellent customer service who take pride in customer satisfaction.

9 9

Y P 0-9-273 5352 M 0275 764 507 E [email protected] W centrallandscapes.co.nz franchise.co.nz – search: Landscapes

Civic Video Retail $150,000 Home entertainment stores specialising in the rental and sale of DVDs and games. 56 300

Y P 0-9-523 6322 franchise.co.nz – search: Civic

Cleancorp Auckland Home & Commercial

$25,000 Cleancorp offers a range of franchise opportunities including home cleaning and commercial cleaning.

105 105

Y P 0-9-304 1570 franchise.co.nz – search: Cleancorp

Cleancorp Franchise Systems

Home & Commercial

$20,000 An ethical, profitable and flexible home and commercial cleaning business. 105 105

Y P 0-9-304 1571 franchise.co.nz – search: Cleancorp

Clean Planet Business & Commercial

$20,000 Commercial cleaners the environment loves. The first 100% eco-friendly commercial cleaning franchise.

42 42

Y P 0-9-622 0828 franchise.co.nz – search: Planet

Cleantastic Commercial Cleaning


$13,800 A business of your own with a guaranteed income and lifestyle opportunities. 280 1000

Y P 0-6-843 3320 franchise.co.nz – search: Cleantastic

B-C

Lookingforabusinessopportunity butdon’tknowwheretostart?1ChoosebyIndustryWe have divided all the opportunities into ten main industries. Just look down the third column to select the type of business you are interested in. You can also search the Directory by industry online at franchise.co.nz.

2ChoosebyInvestmentThe ‘Investment’ figures quoted in the fourth column are for guidance only and may not include GST, equipment, working capital or other items unless specifically included. You should confirm such items direct with the franchise concerned.

3ChoosebyTypeThe description contains a brief description of the franchise and may include information on the type of people the opportunity is best suited to. More information can be found online at www.franchise.co.nz - use the search word in the right hand column to find it easily.

Please NoteEach listing contains information as supplied by that particular entity. However, you should confirm the accuracy of the information in each particular case. The FANZ column advises you which are members of the Franchise Association of New Zealand. You are advised to confirm the membership status of any entity. Neither the sponsors of this Directory nor the publisher accept liability for any omissions or errors.



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Club Physical Health & Fitness

$200,000 Club Physical is a health club. Our vision is to become New Zealand’s first choice in wellness. 14 14

N P 0-9-417 0071 franchise.co.nz – search: Physical

Cobb & Co Food & Beverage

$200,000 The iconic kiwi family restaurant operating successfully throughout New Zealand since 1970. 8 8

N P 0204 1007 007 franchise.co.nz – search: Cobb

Coffee Culture Food & Beverage

$350,000+ Creating luxurious environments for our guests to enjoy the finest espresso coffee since 1996. 14 17

Y P 0-3-377 2605 franchise.co.nz – search: Culture

ColorGlo International Auto Services

$47,000 Colour restoration and repair of leather, vinyl, plastic, cloth, carpet. 4 315

N P 0-9-524 6214 franchise.co.nz – search: Color Glo

Colourplus Retail $250,000 New Zealand’s fastest growing décor franchise. No industry experience required. 38 38

Y P 0-9-818 9215 franchise.co.nz – search: Colourplus

Columbus CoffeeNathan Bonney

37 Food & Beverage

$250,000 - $350,000

Franchise System of the Year 2009/10 and 2010/11. A unique combination of café and retail. Enjoy NZ’s best coffee and first class service in a relaxed professional and sophisticated setting. NZ concept operating since 1995. NZQA certified operating manuals and training systems. Suit owners with passion for gourmet coffee and value of customer relationships.

53 53

Y P 0-9-520 1044 M 021 347 145 E [email protected] W columbuscoffee.co.nz franchise.co.nz – search: Columbus

Complete First Aid Supplies


$55,000 Market leader in supply of first aid kits to businesses. Seeking self-motivated people. 4 4

Y P 0-9-827 7726 franchise.co.nz – search: First Aid

Computer TroubleshootersDave Mudford Lyn Aikman

Computer $27,500 On-site and remote ITC support through to total managed services, targeting small to medium businesses and SOHO. Operating in over twenty-five countries. National brand, full training and support. Ideal for those with corporate backgrounds and management skills or technician/IT specialists able to work hands-on.

28 500

N P 0800 728 768 P 0800PCTROUBLE E [email protected] W comptroub.co.nz franchise.co.nz – search: Troubleshooters

Concerto Networks Computer $30,000 Nationally branded consistent quality business technology solutions for small and medium sized enterprises.

20 85

N P 0800 000 077 franchise.co.nz – search: Concerto

ContoursGrant Archibald

51 Health & Fitness

$95,000 Contours is a nationwide chain of health and fitness clubs exclusively for women. 14 15

Y P 0-9-577 4223 M 021 662 239 E [email protected] W contours.co.nz franchise.co.nz – search: Contours

Cookie Time Food & Beverage

$65,000 + Distribution of snack products to retailers & other on-sellers. 42 44

N P 0-3-349 6161 franchise.co.nz – search: Cookie

Cookright Kitchen ServicesRobyn Broughton

31 Food & Beverage

$70,000 Cookright, the kitchen hero, saving kitchens time and money. Deepfryer, overhead filter and hood cleaning. Cooking oil filtering. Oil and kitchen consumables product sales. Cookright has significant income potential with minimal competition for motivated, hard-working, practical operators who can sell and are well organised.

31 31

Y P 0800 804 104 E [email protected] W cookright.co.nz franchise.co.nz – search: Cookright

Cooltime Home & Building

$30,000 Air conditioning installation company. Preferred installer for NZ’s leading electrical retailer. 7 7

Y M 0275 973 737 franchise.co.nz – search: Cooltime

Coresteel Buildings Home & Building

$75,000 Specialises in the design and construction of rural, commercial and industrial buildings. 22 22

N P 0-9-438 1562 franchise.co.nz – search: Coresteel

CrestCleanGrant McLauchlan

2 Business & Commercial

$10,000 Full service franchise, all contracts provided. Guaranteed income paid twice monthly. CrestClean prepares GST returns, accounts and tax returns. NZQA training programme provides career pathway. Operating since 1996. Franchises operating nationwide. Master franchises are also available.

385 385+

Y P 0800 273 780 E [email protected] W crest.co.nz franchise.co.nz – search: Crest

Crewcut Home Services

$8,800 + equip

Quality home service franchise providing property maintenance requirements to the domestic market.

260 260

Y P 0-9-481 0004 franchise.co.nz – search: Crewcut

CutshopSimon Morton

Home & Building

$800,000 Cutting, edging and drilling of sheet materials for the DIY, cabinet making and commercial shop fitting industry. Cut to any shape or size. Seeking experienced individual prepared to employ and manage a production and marketing team to achieve above average return on investment.

1 1

Y P 0-9-527 2856 M 021 974 625 E [email protected] W cutshop.co franchise.co.nz – search: Cutshop

Deck & Fence ProJoe Hesmondhalgh

45 Home Services

$24,950 Professional home service franchise offering specialised restoration services to homeowners for decks, fences, garden furniture, garage doors and more. Oil, stain and paint restoration specialists. Franchises available nationwide. Full training and equipment included. Download a free info pack at www.deckandfencepro.co.nz

14 14

Y P: 0-7-552 5311 M 0274 108 940 E [email protected] W deckandfencepro.co.nz franchise.co.nz – search: Deck

Diamond Fusion Home & Building

$50,000 Easy clean glass. Seeking passionate, trustworthy people, sales & marketing an advantage. 5 5

N M 0274 666 785 franchise.co.nz – search: Diamond

Dollar Value Retail $160,000 Retail stores providing great product and service value to all customers. 4 4

N M 029 289 6149 franchise.co.nz – search: Dollar

Domino’s Pizza Food & Beverage

$350,000 Specialist quick service pizza franchise. Over 1 million pizzas a day worldwide. 77 8600

N P: 0061 7 3633 3333 franchise.co.nz – search: Domino’s

Donut KingCraig Watson

Food & Beverage

$250,000 - $330,000

Donut King is a speciality donut and coffee chain which has been growing steadily in Australia since 1981. Now available in NZ. Full training and support given. Seeking self-motivated, energetic, positive people with good communication skills. Estimated turnkey price, depending on size and location.

3 350

Y P 0061 4 1836 0392 E [email protected] W donutking.com.au franchise.co.nz – search: Donut King

Dream DoorsDerek Lilly

56 Home & Building

$30,000 + Design, manufacture and supply of made-to-measure kitchens, bathrooms and bedrooms for retail and trade customers. Seeking hard-working, sales-driven, computer literate go-getters who are willing to follow a proven dynamic international business model.

10 35+

Y P 0-3-443 5133 E [email protected] W dreamdoors.co.nz franchise.co.nz – search: Dream

Driving Miss Daisy Home Services

$20,000 Driving Miss Daisy is a safe, friendly and reliable companion driving service. 29 50

Y P 0800 948 432 franchise.co.nz – search: Daisy

Eco Insulation Home & Building

$30,000 New Zealand’s premium installer of eco-friendly insulation and clean heat products. 9 9

N P 0-9-477 0270 franchise.co.nz – search: Eco Insulation

EcomistNicholas Schnell

17 Home & Commercial

$30,000 A product sales-based business selling automatic insect control, odour control and fragrancing systems. Selling to both commercial and residential customers. Suitable for husband/wife teams or individuals with sales or business experience. A franchise opportunity with room for independent thinking.

19 30

N P 0-7-345 1226 M 027 543 2627 E [email protected] W ecomistsystems.com franchise.co.nz – search: Ecomist

EmbroidMeGrant Archibald


$95,000 World’s largest embroidery, screen printing and promotional products franchise. One stop shop for business needs. Highly visible retail stores, modern showrooms, latest embroidery technology. Operating since 2000. No experience required although management and sales abilities would be highly regarded. Financial assistance possible.

7 350

Y P 0-9-577 4223 M 021 662 239 E [email protected] W embroidme.co.nz franchise.co.nz – search: EmbroidMe

Esquires Coffee HousesRachel Casley

42 Food & Beverage

$350,000 - $450,000

Award-winning international café brand offering 100% Fair Trade coffee in stylish comfortable surroundings. NZ’s fastest-growing café franchise. Twice winners of NZ’s Franchise System of the Year Award for the Food & Beverage category (2005 & 2006). Estimated turnkey price, depending on size and location.

42 100+

Y P 0-9-377 7615 E [email protected] W esquirescoffee.co.nz franchise.co.nz – search: Esquires

Exceed Home Network

Home & Building

$25,000 - $50,000

Exceed Home Network provide home delivered services for home and property owners. 27 27

Y P 0800 25 27 36 franchise.co.nz – search: Exceed

If you’re just starting in franchising, talk to someone who isn’t.

Westpac New Zealand Limited


Crowe Horwath NZ (formerly WHK)

Crowe Horwath knows the franchise business from all angles

Whether you’re a franchisor or franchisee, or looking for a way to bring both sides together, our New Zealand network of offices together with the New Zealand Specialist Franchise Team has your business covered.

Proud to be Members and Gold Sponsors of the Franchise Association of New Zealand.

Liz Le Prou 04 587 0826 021 529 759 [email protected] www.crowehorwath.co.nz

Your one stop franchise shop


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Expense Reduction AnalystsDenis Stevens


$45,500 World leading cost management group represented in 32 countries. We help clients reduce overhead expenses. Contingency based - no savings -no fees - no risk. Seeking experienced business people who want to capitalise on their experience. Earn what you’re worth, not what someone else wants to pay you.

26 700+

N P 0-4-566 6615 M 0274 487 089 E [email protected] W expensereduction.com franchise.co.nz – search: Expense

Fastway Couriers 58 Business & Commercial

$20,000 + Fastway Couriers is an award-winning franchise system that provides local and national courier services at competitive prices and a simple prepaid system. One of New Zealand’s most successful franchisors with 1,600+ franchisees across 5 countries and 40+ franchise and industry awards.

275 1600

Y P 0-6 833 6333 E [email protected] W fastway.co.nz franchise.co.nz – search: Fastway

Fifo Capital Financial Services

$49,500 + Invoice discounting and factoring services designed to assist clients’ cashflow needs. 8 16

Y P 0-9-447 1999 franchise.co.nz – search: Fifo

Fix It Building Services

Home & Building

$5,000 + New Zealand’s only nationwide trade-based building repair and renovation franchise. 11 11

Y P 0-9-566 0297 franchise.co.nz – search: Fix It

Flooring Xtra Home & Building

$100,000+ New Zealand’s largest flooring retailer. Established as a co-operative, profitable for shareholder owners.

54 92

N P 0-9-262 1628 franchise.co.nz – search: Flooring Xtra

Footloose Retail $160,000 New Zealand’s largest franchised ladies fashion footwear group. Ideal for motivated owner-operator.

22 22

N P 0-9-298 5228 franchise.co.nz – search: Footloose

Freedom Companion Driving ServicesRichard Bright

48 Home Services

$19,000 Freedom Companion Driving Services provide a highly personalised companion driving service for those who can’t drive themselves. Based on award-winning systems with great ongoing support. Seeking caring individuals wanting a great lifestyle business helping people in their community.

10 10

Y P 0800 956 956 E [email protected] W freedomdrivers.co.nz franchise.co.nz – search: Freedom Driving

Fritz’s Wieners Food & Beverage

$40,000 Fritz’s Wieners offer award-winning German bratwurst sausages with a variety of condiments. 6 6

N P 0800 437 489 franchise.co.nz – search: Fritz’s

FrontrunnerLaurie Blyth

67 Retail $160,000 - $250,000

Well-established (1976) retailer of technical sports and athletic footwear, clothing and accessories, focusing on range, service and knowledge of product. Seeking adaptable, focused and reliable people who want to learn in-depth the systems and methods we use to become successful.

9 9

N P 0-3-348 4768 M 027 664 9557 E [email protected] W thefrontrunner.co.nz franchise.co.nz – search: Frontrunner

Furniture Court Retail $250,000 Specialist furniture retailer in lounge, dining, bedroom, occasional and accessories. 20 20

N P 0-9-277 5465 franchise.co.nz – search: Furniture

Geeks on Wheels Computer $25,000 Mobile computer technical support service, offering friendly and efficient on-site assistance. 4 4

N P 0-4-920 0990 franchise.co.nz – search: Geeks

Gloria Jean’s Coffees Food & Beverage

$300,000 Gourmet speciality coffee franchise. Seeking people passionate about coffee. 25 925

N P 0-9-520 6477 franchise.co.nz – search: Gloria

Golden Nuts Food & Beverage

$70,000 - $100,000

“The best nut roasting retail kiosk in the world” state-of-the-art design kiosk. 6 6

N P 0-9-622 0333 franchise.co.nz – search: Golden

Graffiti Doctor Business & Commercial

$20,000-$95,000

Clean up with Graffiti Doctor. Having a sales background will help. 9 9

N P 0800 482 437 franchise.co.nz – search: Graffiti

Green Acres Franchise GroupGraeme Bayly

52 Home Services

$24,000 Green Acres, the largest and most successful home services group in New Zealand started in 1991 and is still growing. Franchises available: home cleaning, commercial cleaning, lawn & garden care, car valet, pool valet or home maintenance services with Hire a Hubby, our sister company.

1000 1000

Y P 0800 692 643 E [email protected] W greenacres.co.nz franchise.co.nz – search: Green Acres

GroutPro Home & Building

$39,950 Earn $2,000+ per week in one of the hottest sectors in the home improvement industry. 40 62

Y P 0-7-552 5311 franchise.co.nz – search: GroutPro

Guthrie Bowron Retail $250,000-$300,000

Decorating specialists focusing on paint, wallpaper, fabric and tiles. 56 56

Y P 0-9-306 1040 franchise.co.nz – search: Guthrie

Habitual Fix Food & Beverage

$150,000 New Zealand’s freshest food fix – salads, sandwiches, wraps and smoothies. 10 10

N M 021 428 970 franchise.co.nz – search: Habitual

Hardy’s Health Stores Health & Beauty

$300,000 New Zealand’s premium group of retail natural health stores. 31 31

Y P 0-7-838 3274 franchise.co.nz – search: Hardy’s

Harrisons Carpet One Home & Building

$50,000 New Zealand’s number one mobile carpet retailer. 2007 Franchise System of the Year. 43 1800

Y P 021 283 8040 franchise.co.nz – search: Carpet

Harvey World Travel Retail $100,000 High profile award-winning retail travel agency. Seeking people with a passion for travel. 54 350+

N P 0-9-307 1860 M 021 568 100 franchise.co.nz – search: Harvey

Healthy Homes Home & Building

$60,000 Installation of PinkBatts into new and existing residential properties. 19 19

Y P 0-9-414 2725 franchise.co.nz – search: Healthy Homes

Hell Ben Cumming

Food & Beverage

$200,000 A brand with attitude that cannot be missed. Our damned fine gourmet menu, coupled with sophisticated systems and support, make this a wicked opportunity. Hell is looking for new franchisees with a passion for our brand and a willingness to learn. Opportunities available nationwide.

64 70

N M 027 364 2431 E [email protected] W hellpizza.com/nz franchise.co.nz – search: Hell

Hire A HubbyGraeme Bayly

40 Home & Building

$32,000 New Zealand’s first choice for professional home maintenance, building and renovation services. Hire a Hubby has the distinct advantage of being the only franchise that offers a complete home maintenance and building service that’s professional and totally customer focused.

100 100

Y P 0-9-845 2640 E [email protected] W hireahubby.co.nz franchise.co.nz – search: Hubby

Home Instead Senior Care

Home Services

$155,000 Provides caregiving support to seniors and their families at home. No experience required. 8 900+

Y P 0800 694 472 franchise.co.nz – search: Home Instead

Humitech Business & Commercial

$90,825 Simple, effective panels to reduce commercial chilling costs and improve performance. 12 12

N P 0800 486 434 franchise.co.nz – search: Humitech

Insultech Group Home & Building

$80,000 - $125,000

Supply, install & advise on full range of insulation materials for new & existing properties. 5 5

N P 0-9-263 9770 franchise.co.nz – search: Insultech

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franchising throughout NZ now

[email protected] 021 878 335


Jamaica Blue Food & Beverage

$300,000 Contemporary café concept built on the foundations of fine coffees and fabulous food. 5 94

Y P 0-9-377 1901 franchise.co.nz – search: Jamaica

Jani-King Business & Commercial

$22,200+ World’s number one commercial cleaning franchise company. Full support for franchisees. 300 13K+

Y P 0-9-441 9996 franchise.co.nz – search: Jani

Jellybeans MusicChris Bartels

Leisure & Education

$25,000 Jellybeans Music provides curriculum based music programmes for schools. Successfully operating in Australia, this fantastic lifestyle franchise opportunity is now available in New Zealand. Franchises at special launch price now available for those with a passion for music and classroom teaching experience.

New 30+

Y P 0800 754 372 M 021 974 221 E [email protected] W jellybeansmusic.co.nz franchise.co.nz – search: Jellybeans

Jesters PiesGrant Rawlinson

Food & Beverage

$220,000 Award-winning gourmet pie franchise. An extensive range of quality pies and associated products freshly baked on premises daily. Iconic Kiwi business. Easy business model to operate. Loads of external revenue opportunities for franchisees who want to be business owners not shopkeepers.

18 50+

Y P 0-9-442 4680 M 021 274 4050 E [email protected] W jesters-pies.co.nz franchise.co.nz – search: Jesters

Jim’s Mowing Home Services

$15,000 Jim’s are the largest lawnmowing franchise in the world. Master franchises available all services.

282 2015

Y P 0-9-522 2265 franchise.co.nz – search: Jim’s Mowing

Jim’s Test & Tag Business & Commercial

$75,000+ vehicle

NZ’s number one choice for mobile electrical testing and tagging of in-service equipment. 20+ 120+

Y P 0800 454 654 franchise.co.nz – search: Jim’s Test

Jim’s Trees & Stump Removal

Home Services

$55,000+ Progressive and professional services – pruning, removal and climbing. Highest standards of training.

3 40

N P 0-6-843 2848 franchise.co.nz – search: Jim’s Trees

Jumping Beans International

Leisure & Education

$40,000 - $45,000

Leading edge, fun physical skills programme for children 0 to 6. 6 7

N P 0-9-475 9204 franchise.co.nz – search: Jumping

Just CabinsFenton Peterken

28 Home & Building

$250,000 Just Cabins provides portable cabins for rent which are just perfect as sleep-outs, extra room, portable office or storage at your home or business. Long-term cabin rentals provide a passive income, excellent growth and are easily run by one person part-time.

38 38

Y P 0800 587 822 M 021 716 776 E [email protected] W justcabins.co.nz franchise.co.nz – search: Cabins

Just Cuts Health & Beauty

$100,000 - $200,000

Just Cuts franchise. You don’t need to be a hairdresser to join. 24 174

N M 027 277 7071 franchise.co.nz – search: Justcuts

Just Loans Financial Services

$100,000+ Just Loans is a finance company providing personal loans. Turnkey money-lending system. 5 5

N P 0800 333 455 franchise.co.nz – search: Just-loans

Kea Kids Club Leisure & Education

$38,500 Before and after school care for kids between 5 – 13 years old. 12 12

N P 0-9-535 2187 franchise.co.nz – search: Kea Kids

Kelly SportsPaul Jamieson

31 Leisure & Education

$25,000 Giving kids a sporting chance. In-school curriculum, after school academy programmes, school sports days. Education outside of the classroom. Before and after-school care holiday programmes. We are looking for people who have a passion for kids and sport.

24 25

N P 0-9-427 9377 M 021 409 241 E [email protected] W kellysports.co.nz franchise.co.nz – search: kelly

Kinetic Electrical Home & Building

P.O.A. Electricians, electrical contractors – become more successful as part of the Kinetic team. 9 9

Y M 0274 852 010 franchise.co.nz – search: Kinetic

Kitchen Studio Home & Building

$100,000+ Kitchen Studio is a full-service kitchen provider seeking applicants with sound commercial acumen.

17 17

N P 0-3-964 4580 franchise.co.nz – search: Kitchen Studio

KiwiHost Business & Commercial

$50,000 Turn your B2B sales skills into profit with an iconic brand. 18 18

Y P 0-3-343 5007 franchise.co.nz – search: KiwiHost

Kiwikrane Leisure $50,000 + Kiwikrane is a national franchise. Franchisees own and operate amusement machine routes. 51 51

Y P 0-9-846 2800 franchise.co.nz – search: Kiwikrane

KiwiYoFranswa Janssen

29 Food & Beverage

$150,000 - $600,000

Self-serve frozen yoghurt business. Fastest-growing international hospitality sector. Perfected, tried and tested in New Zealand for local and/or international franchise opportunity. Join a dynamic fun-filled business team. Full training given, ideal for LTBV applicants. Perfect family business. English essential.

3 5

N M 021 339 644 E [email protected] W kiwiyo.co.nz franchise.co.nz – search: kiwiyo

Kwik Kerb Home & Building

P.O.A. Market leaders in domestic and commercial continuous concrete kerbing. 42 800

N P 0800 865 945 franchise.co.nz – search: Kwik Kerb

Landmark HomesPaul Clarke

38 Home & Building

$50,000 A growing building franchise with a well-established brand offering stylish designs, high-quality homes, excellent systems – providing homeowners with a first-class experience. Seeking committed individuals or couples with knowledge of the building industry who want to build a business into a valuable asset.

10 10

Y P 0-7-578 2295 M 0274 751 311 E [email protected] W landmarkhomes.co.nz franchise.co.nz – search: Landmark

Laser ElectricalScott Carr

Home & Building

$30,000+ Multi award winning Laser Group assists electrical contracting companies become more successful. Become part of NZ’s largest and fastest growing electrical contracting network. Unique model suits existing successful electrical contracting business owners. Westpac Supreme Award (2005 & 2006) for Franchise System of the Year.

60 122

Y P 0-9-820 3800 E [email protected] W laserelectrical.co.nz franchise.co.nz – search: Laser

Laser PlumbingScott Carr

Home & Building

$30,000+ Multi award winning Laser Group assists plumbing contracting companies become more successful. Become part of NZ’s largest and fastest growing plumbing contracting network. Unique model suits existing successful plumbing, gasfitting, roofing and drainlaying business owners. Westpac Supreme Award (2005 & 2006) for Franchise System of the Year.

27 42

Y P 0-9-820 3800 E [email protected] W laserplumbing.co.nz franchise.co.nz – search: Laser

LawnFix Home Services

$85,000 Lawn care – everything except mowing them. We are the qualified pros. 2 2

Y P 0-7-548 0008 franchise.co.nz – search: LawnFix

Leadership Management


$75,000 LMA licensees deliver a process that provides skill and competency development. 6 44+

N P 0800 333 270 franchise.co.nz – search: LMA

Lifetime Distributors Business & Commercial

$20,000 Display marketing company that delivers the convenience of shopping in the workplace. 23 150+

N P 0-9-574 6695 franchise.co.nz – search: Lifetime

Lime Juice BarLes Seiler

Food & Beverage

$25,000 NZ’s largest mobile juice and smoothie bar. Easy to operate business in the growing healthy food sector. Turnkey operation with full franchisor training and support. Great lifestyle business, you choose when you work. Suits fun loving people who are good communicators and enjoy healthy eating.

1 1

Y M 027 222 7487 E [email protected] W limejuicebar.co.nz franchise.co.nz – search: lime

LINKKevin Atkinson


$50,000 LINK are franchised specialists in business sales, franchise re-sales and recruitment and sales of franchise opportunities. We provide professional, practical franchise advice to our clients. Seeking new LINK franchisees to join those in New Zealand, Australia and South Africa. Some business sales franchise opportunities available.

6 9

Y P 0800 546 528 E [email protected] W linkbusiness.co.nz franchise.co.nz – search: Link

Liquorland Retail $250,000+ Specialist retailer of liquor and associated products. A member of FlyBuys nationally. 75 75

N P 0-9-621 0875 franchise.co.nz – search: Liquorland

Little Dribblers Leisure & Education

$44,000 An easily run part- or full-time business. Kids football for ages 1 – 7 years. 4 4

N P 0-4-586 6006 franchise.co.nz – search: Dribblers

Little Kickers Leisure & Education

$26,000+ Fun football (soccer) training for children aged 18 months – 7 years. 2 100+

N P 0-9-815 8607 franchise.co.nz – search: Kickers

LJS Seafood Restaurants

Food & Beverage

$190,000 - $230,000

The largest NZ fast-food chain of fish and chips and associated seafood stores. 13 13

N P 0-9-530 8090 franchise.co.nz – search: LJS Seafood

Lollipop’s Playland & Café

Leisure $400,000 - $450,000

New Zealand’s most progressive childrens’ indoor playland. Offering unlimited parent supervised play.

6 23

Y P 0-3 322 4549 franchise.co.nz – search: Lollipop’s


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7 Reasons To Call Us First

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Lollypotz Food & Beverage

$40,000 Lollypotz make and deliver chocolates beautifully presented like a bouquet of flowers. 3 43

N P 0061 2 6280 9159 franchise.co.nz – search: Lollypotz

Lone StarShane Hausler

Food & Beverage

$600,000+ Lone Star is New Zealand’s largest restaurant & bar concept, proudly owned and operated since 1988. Delicious food, legendary service and music. Seeking candidates with a passion for hospitality, people and fun, proven financial ability, committed to being an owner/operator with a strong work ethic.

23 23

N P 0-3-374 3208 M 021 278 1213 E [email protected] W lonestar.co.nz franchise.co.nz – search: Lone Star

Lush Lashes Health & Beauty

$12,000 Semi-permanent eyelash extensions. Low start-up costs, great income potential, full training provided.

14 14

N P 0800 Lush Lashes franchise.co.nz – search: Lush

Mad ButcherMichael Morton

18, 19

Food & Beverage

$350,000-$450,000

One of New Zealand’s best-known home grown franchises, trading since 1971. Highly trusted brand with a reputation for quality and value. Seeking fully qualified, experienced butchers. Full training and ongoing support from an experienced team. Help for suitably-qualified people to find funding. New locations available.

36 38

N P 0-9-531 5910 M 021 725 458 E [email protected] W madbutcher.co.nz franchise.co.nz – search: Butcher

MathZwiseKathy Redwood

Leisure & Education

$25,000+ Quality maths tutoring programme following NZ maths curriculum. Suits people with teaching background.

8 8

Y P 0800 120 965 E [email protected] W mathzwise.co.nz franchise.co.nz – search: MathZwise

McDonald’s Food & Beverage

$750,000+ The world’s market leader in the quick service restaurant industry. 150 31000

N P 0-9-539 4300 franchise.co.nz – search: McDonald’s

Mediterranean Food Warehouse

Food & Beverage

$250,000- $380,000

Specialist Mediterranean food store and wood-fired pizzeria and café. 3 3

Y P 0-4-939 8100 franchise.co.nz – search: Mediterranean

MEGA CaféNathan Bonney

Food & Beverage

$75,000 - $200,000

MEGA Café combines Mitre 10 MEGA’s powerful brand and Columbus Coffee’s award-winning coffee and franchise systems to create a compelling new business opportunity. Unique entry to ownership models makes owning your own café a reality. We are looking for passionate owner-operators. Full training provided.

18 18

Y P 0-9-520 1044 M 021 347 145 E [email protected] W megacafe.co.nz franchise.co.nz – search: Mega Cafe

Meticulous Home Services

Home Services

$13,000 New Zealand’s premier home services franchise offering a range of professional services. 35 35

Y P 0-9-449 2004 franchise.co.nz – search: Meticulous

Mexicali FreshCindy Buell

50 Food & Beverage

$300,000+ Mexicali Fresh has led the Mexican evolution in NZ since 2005. With giant American-style burritos and Mexican beer in a colourful, casual atmosphere. We are recruiting energetic, enthusiastic franchisees with a passion for great food and excellent customer service for our turnkey restaurants.

3 3

N M 021 750 070 E [email protected] W mexicalifresh.co.nz franchise.co.nz – search: Mexicali

Midas Car CareHenry Epskamp

Auto Services

P.O.A. New Zealand’s premier specialist automotive servicing franchise. One of the worlds largest provider of automotive service since 1956. Existing and new franchise opportunities available. Must have exceptional customer service skills.

27 3000

Y P 0-9-415 0234 M 021 955 498 E [email protected] W midasnz.co.nz franchise.co.nz – search: Midas

Mike Pero Mortgages Financial Services

$30,000 - $50,000

Mortgage broker service representing major lending organisations. 42 42

Y P 0-3-365 9487 franchise.co.nz – search: Mike Pero

Mini Tankers Business & Commercial

$75,000 - $150,000

On-site diesel refuelling service. 19 124

Y P 0-9-622 2671 franchise.co.nz – search: Mini

Mobile Hand Car & Marine Grooming

Auto Services

$10,000 -$39,000

Mobile grooming and detailing service providing professional, environmentally friendly valet services.

17 17

N P 0800 803 737 franchise.co.nz – search: Mobile Hand

Mr Fencer Home & Building

$46,000+ Mr Fencer supplies and installs a wide range of residential and commercial fencing. 3 3

Y P 0800 673 362 franchise.co.nz – search: Mr Fencer

Mr Plumber Home & Building

$35,000 Franchise system designed to deliver quality plumbing, roofing, drainlaying and gasfitting services.

10 10

N P 0800 677 586 franchise.co.nz – search: Mr Plumber

Mr Rental Home & Building

$250,000+ Home appliance renting. Phone to learn about the magic of recurring revenue. 18 57

Y P 0276 328 470 franchise.co.nz – search: Mr Rental

Mr Whippy Food & Beverage

$120,000 One of New Zealand’s oldest and established franchises is seeking new franchisees. 50 50

N P 021 333 333 franchise.co.nz – search: Mr Whippy

Mr Woo SushiAdam Parore

11 Food & Beverage

$69,000 New Zealand’s first mobile sushi franchise. Mr Woo is your chance to get ahead and control your lifestyle. Full training and support, low overheads, great margins. Franchises available throughout the upper North Island. Finance available.

New New

N M 021 781 250 E [email protected] W mrwoosushi.co.nz franchise.co.nz – search: Mr Woo

Muffin Break Food & Beverage

$280,000 A speciality bakery café concept with a proven and established system. 36 259

Y P 0-9-377 1901 franchise.co.nz – search: Muffin

Need A Nerd Computer $25,000 Specialist mobile techie support service that sells, supports and provides advice. 1 1

Y P 0800 633 326 franchise.co.nz – search: Nerd

New York Deli Food & Beverage

$150,000 - $202,000

New York Deli is a themed sandwich bar that uses wholesome ingredients. 2 2

N M 021 707 758 franchise.co.nz – search: New York

New Zealand Home Loans

Financial Services

$10,000 - $100,000

Seeking confident self-starters with sales expertise and excellent communications skills. 52 52

N P 0-7-839 0998 franchise.co.nz – search: Home Loans

Why learn from your mistakes when you can learn from our nationwide franchise banking specialists?



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Work with the company selected by many of the biggest (and best emerging) names in franchising. Call Win Robinson or Callum Floydon (09) 523 3858www.franchize.co.nz

Successful franchisors choose Franchize Consultants

We’ve also been awarded ‘Westpac Service Provider of the year’ in 06, 08, 10/11.

Phone 09 578 2318Email [email protected] www.FranchiseSolutions.biz

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Success comes from passionate people


Innovative solutions from franchise experts

Phone 09 578 2318Email [email protected] www.FranchiseSolutions.biz

•Mentoring•Coaching•Facilitating•Advising

•Innovativesolutions from franchise experts


For Franchise Advice

in the Wellington region

Have a chat with our legal experts:

Claire Byrne 04 916 7483 Dave Robinson 04 916 6307

www.gibsonsheat.com

New Zealand Letting AgentsVanessa Neale


$23,000 Property management services with full training and support for your business success. Well-established company providing on-going revenue in a thriving industry. Attributes required; excellent time management, passionate about property and business growth, experience in sales or business, good judgement and ability to think on your feet.

3 3

N P 0800 103 203 M 0274 800 129 E [email protected] W nzletting.co.nz franchise.co.nz – search: Letting

New Zealand Natural Ice Cream

Food & Beverage

$250,000 International ice cream parlour brand operating in 20 countries. 13 500+

Y P 0-9-274 6168 franchise.co.nz – search: New Zealand Natural

Night ’n Day Foodstores

Retail $300,000+ Night ‘n Day are the NZ grocery store market leaders. Seeking energetic operators. 45 45

Y P 0-3-471 7660 franchise.co.nz – search: Night’n

NumberWorks’n Words

Education $50,000 Specialist maths and English tuition company, fun learning experience, instruction from specialist tutors.

23 54

Y P 0-9-522 0800 franchise.co.nz – search: Number

NZ Floor Sanding Co Home & Building

$95,000 inc. vehicle

Specialists in sanding and coating of timber floors. Supply and lay new timber floors. 7 7

N P 0800 272 888 franchise.co.nz – search: NZ Floor

Office Products Depot


P.O.A. NZ’s leading independent business-to-business supplier of stationery supplies since 1989. 39 74

N P 0-9-915 4544 franchise.co.nz – search: Office Products

Oil Changers Auto Services

$150,000 - $250,000

Oil Changers provide the convenience of drive-through vehicle servicing. No previous experience required.

8 29

N P 0-3-343 6080 franchise.co.nz – search: Oil

Oporto New ZealandJohn Hyde

55 Food & Beverage

$350,000 Oporto chicken and burgers are big on taste and even bigger on value. With 20 years in Australia and 11 years in New Zealand we have a proven franchise model. Seeking committed, energetic, entrepreneurs wanting to establish a long-term business with a strong brand.

11 160

Y P 0-9-538 0006 M 021 301 648 E [email protected] W oporto.co.nz franchise.co.nz – search: Oporto

Pack & Send New ZealandMatthew Everest

12 Retail $210,000 Pack & Send move and handle freight through a network of retail stores with a professional custom packaging service. A one-stop shop for customers. We are looking to grant franchises to those who are prepared to embrace our ‘no limits’ culture.

13 120

Y P 0-3-982 7252 M 021 799 783 E [email protected] W packsend.co.nz franchise.co.nz – search: Pack Send

Palazzo Kitchens & ApplicancesRon Neale

62, 63

Home & Building

$200,000 Palazzo are the largest retailer of German kitchens in New Zealand. Exclusive agents for Nobilia and Rational, Germany’s largest manufacturers. Seeking entrepreneurial people with good business and retail acumen, willing to provide exceptional service with quality showrooms to discerning professional clientele.

5 5

N P 0-3-365 0751 M 021 978 348 E [email protected] W palazzodesign.co.nz franchise.co.nz - Palazzo

PalmersMurray Belcher

15 Retail $350,000 New Zealand’s largest garden centre chain established in 1958. Offering both metropolitan and provincial opportunities. Serious business opportunity for motivated and capable business person/s. Growth market.

18 18

N P 0-9-451 9102 M 021 483 500 E [email protected] W palmers.co.nz franchise.co.nz – search: Palmers

Palmers PlanetMurray Belcher

15 Retail $1m Like the truly successful garden centres of Europe, Palmers Planet is as much a destination as a retail store. This is an amazing opportunity for a business person looking for a new challenge.

1 1

N P 0-9-451 9102 M 021 483 500 E [email protected] W palmers.co.nz franchise.co.nz – search: Palmers

Paper Plus Retail $400,000 The Paper Plus Group is New Zealand’s largest franchised book and stationery retailer. 110 110

Y P 0-9-261 0871 franchise.co.nz – search: Paper

Para RubberVaughan Moss

66 Retail $150,000 –$250,000

Iconic New Zealand retailer dominating the market in sales of foam, foam mattresses, rubber, including mats, and the iconic Para pools. Looking for energetic people serious about customer service and looking to build a successful business through determination.

9 9

Y P 0-9-532 8794 M 021 921 976 E [email protected] W pararubber.co.nz franchise.co.nz – search: Para

Paramount ServicesPaul Brown Bill Wu


$30,000 General commercial cleaning plus specialised franchises: car park scrubbing, carpet cleaning, decontamination, office equipment sanitising, pest control, window cleaning. Established in 1979, Paramount Services has 140 franchisees servicing 1,240 clients including 320 bank branches, retailers, shopping centres, ports, cinemas, rest-homes, student hostels and schools.

140+ 140+

Y P 0-9-376 7850 M 027 543 0233 E [email protected] W service-is-paramount.co.nz franchise.co.nz – search: Paramount

Pegasus Rental Cars Leisure Transport

P.O.A. Pegasus Rental Cars offers the best value for money car hire in New Zealand. 24 24

N P 0-9-378 7940 franchise.co.nz – search: Pegasus

Pit StopLes Seiler

Auto Services

$100,000+ New Zealand’s leading automotive repair franchise. Specialising in vehicle servicing, brakes, exhaust, suspension and tyres. Well-recognised brand, established over 30 years ago. Full franchisor training and support. We’re looking for owner-operators with automotive repair experience (essential), great communicators with a fantastic customer service ethic.

49 49

Y P 0-9-634 3666 M 027 222 7487 E [email protected] W pitstop.co.nz franchise.co.nz – search: Pit Stop

Pizza Hut Food & Beverage

$100,000 Established pizza chain with occasional resale opportunities available. 91 1000+

N P 0-9-525 8700 franchise.co.nz – search: Pizza Hut

Plumb’InWalter Goldstein

30 Home & Building

$215,000 - $260,000

Plumb’In is the largest bathroom specialist bulk retail franchise in New Zealand, with recognised branded products, supplying high quality product at an affordable price. Seeking people with the following attributes; dedicated, retail-focused, self-driven, management and sales skills, team player, prepared to accept responsibility, sound financial record.

6 6

Y P 0-9-448 0280 M 0275 999 444 E [email protected] W plumbin.co.nz franchise.co.nz – search: Plumb

PoolWerx Corporation

Home Services

$93,950 Mobile pool and spa care. A recognised innovator, making franchisees’ tills ring faster. 1 300

Y P 0800 888 031 franchise.co.nz – search: PoolWerx


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Provide Individual, Business and Corporate Coaching

With our pre-written and highly structured YB 12 programme and your month-to-month coaching, you

can be confident your clients will make tremendous and measurable progress in their lives or businesses or both!

Sonia Coupe - 021 0291 [email protected] www.yb12.net

PostShop KiwibankKayleen Smith

Retail P.O.A. One of NZ’s largest retail networks. We offer our communities a wide range of postal and financial services for personal and business needs.

300+ Y P 0-9-336 8284 E [email protected] W nzpost.co.nz franchise.co.nz – search: Postshop

Property InDepth Home & Building

$45,000 Residential valuation franchise, customised technology, fantastic business systems, awesome team, nationwide aspirations.

10 10

N M 021 477 673 franchise.co.nz – search: Property

Provender NZPhilip Horrocks

Food & Beverage

$65,000 Affordable upfront fees, great return on investment, easy to run and grow, no staff management, flexible work hours. Own your own mobile vending franchise business. Suit anyone looking to run their own business or change their lifestyle. Industry qualifications not required to join the Provender team.

90+ 140+

N P 0800 661 663 E [email protected] W provender.co.nz franchise.co.nz – search: Provender

Quest Serviced Apartments


$150,000-$600,000

Serviced apartment accommodation facilities. Operating in New Zealand since 1997. 28 80

Y P 0-9-366 9680 franchise.co.nz – search: Quest

Quinovic Property Management


$140,000 + NZ’s preferred national residential property management service since 1988. 28 28

Y P 0-4-801 7880 franchise.co.nz – search: Quinovic

Rainaway Spouting on the Spot

Home & Building

$45,000 Proven award-winning continuous spouting company selling to commercial and residential clients.

12 12

Y P 0-9-265 2147 franchise.co.nz – search: Rainaway

Raincatcher Systems Home & Building

$20,000 –$60,000

Triple filter system. Sales, installation & servicing. Suitable as add-on or stand-alone business. 3 3

N P 0800 724 622 franchise.co.nz – search: Raincatcher

Rapid Lawn Home & Building

$40,000 Hydro-seeding and erosion control franchise servicing domestic and commercial sectors. 10 10

N M 021 365 296 franchise.co.nz – search: Rapid

Realsure The House InspectorsBruce Symon

Home & Building

$65,000 Respected, strongly branded business providing trusted property reports for buyers and sellers. Proven systems, training and very clever technology makes it simply smart business. Suit motivated individual wanting remarkable business opportunity and lifestyle. Relevant technical qualification required for New Zealand inspection standard compliance.

3 3

N P 0508 732 578 M 0275 455 045 E [email protected] W realsure.co.nz franchise.co.nz – search: Realsure

realtyRETURNS The Property Improvers

Home & Building

$55,000+ Renovation agency specialising in arranging and managing residential renovation projects. 3 3

N P 0800 780 790 M 021 919 844 franchise.co.nz – search: realtyReturns

Refresh RenovationsJon Bridge

32, 33

Home & Building

$75,000 New Zealand’s leading renovation business. Limited franchise opportunities available throughout New Zealand. Seeking business-minded individuals who want to grow themselves a large profitable business. No building experience necessary.

26 26

Y M 021 454 502 E [email protected] W refreshrenovations.co.nz franchise.co.nz – search: Refresh

Re/Max New Zealand Other $20,000 Global real estate network. 50 6500

N P 0-9-309 8478 franchise.co.nz – search: Remax

Rent a DentDean Hansen

56 Rental Vehicles

$100,000 Rent a Dent are one of the largest rental vehicle networks in New Zealand. We strive to achieve great customer service, network efficiency and maximum value for customers. Good business acumen necessary but experience not required. Current opportunities in Christchurch, Whanganui, and Australia.

24 25

N P 0-9-275 2914 M 021 474 724 E [email protected] W rentadent.co.nz franchise.co.nz – search: Rent Dent

Robert Harris Coffee Roasters Rod De Lisle

26 Food & Beverage

$150,000 min equity

Robert Harris Coffee Roasters is New Zealand’s best-known and largest chain of retail café franchises. Proven success in cities and provincial centres nationwide. We look for team players with high standards in presentation who have customer service experience plus the ability to work with people.

45 45

Y P 0800 426 333 M 021 518 435 E [email protected] W robertharriscafe.co.nz franchise.co.nz – search: Robert Harris

Rodney WayneJulie Evans

36 Health & Beauty

$200,000 NZ’s biggest and most successful hairdressing franchise group. Hairdressing experience not necessary.

50+ 50+

Y P 0-9-358 4644 E [email protected] W rodneywayne.co.nz franchise.co.nz – search: Rodney Wayne

Rugbytots NZAnnalie Marks

73 Leisure & Education

$15,000+ NZ’s first rugby specific play programme for 2 – 5 year old boys and girls. Rugbytots develops children’s physical, psychological and social attributes, as well as encouraging rugby-specific skills such as running with the ball, finding space, kicking, catching, scoring tries and much more.

1 48

N M 021 878 335 E [email protected] W rugbytots.co.nz franchise.co.nz – search: Rugbytots

Saddlery Warehouse Retail $230,000- $460,000

New Zealand’s leading equestrian retailer. Supplying all the items needed for horse and rider. 7 7

N P 0-9-970 1058 franchise.co.nz – search: Saddlery

Select Cleaning Home Services

$13,300 Home cleaning services franchise offering cleaning and lawn mowing businesses. Award winning system.

70+ 70+

Y P 0-9-278 4930 franchise.co.nz – search: Select

Shed Boss Home & Building

$95,000 + ShedBoss are suppliers of high quality steel frame buildings. 12 37

N P 0-7-579 1525 franchise.co.nz – search: ShedBoss

Shoe Clinic Retail $200,000-$250,000

Shoe Clinic is NZ’s leading sports footwear retail store. Proven system. 12 12

N P 0-4-499 4495 franchise.co.nz – search: Shoe Clinic

Sierra CoffeeAlan Piper

15 Food & Beverage

$120,000- $280,000

Network of premium cafes specialising in gourmet coffee and freshly prepared food. 32 32

N P 0-9-444 4369 M 021 881 119 E [email protected] W sierracoffee.co.nz franchise.co.nz – search: Sierra

Signature Homes Home & Building

$75,000 + New Zealand’s leading branded custom home builders, established 1983. 19 19

Y P 0-9-415 2468 franchise.co.nz – search: Signature

Simplicity Vending Food & Beverage

$20,000 - $150,000

Small mechanical bulk vending units with a proven tried and trusted licensed system. 12 12

N P 0-7-855 2007 franchise.co.nz – search: Simplicity

SimpliFoodRachael Marshall

Retail $150,000 Strongly-branded food retail store franchise. Sells quality food ingredients and specialised food products. Full training and support provided. Suitable as an owner-operator business. We work with you on budget, timescale and skill base.

6 6

N M 021 997 722 E [email protected] W simplifood.co.nz franchise.co.nz – search: SimpliFood

Simply Squeezed Food & Beverage

$80,000 Sell and distribute NZ’s favourite range of chilled juice and beverage products. 40+ 40+

Y M 021 747 643 franchise.co.nz – search: Squeezed


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sKidsDawn Engelbrecht

22, 23

Leisure & Education

$34,000 Out of school care. Established 1996. Now in 100+ schools. Before school, after school and holiday programmes for primary school children. Would suit people who are looking for a change in lifestyle and enjoy the company of children.

100 100+

Y P 0-9-576 6602 M 027 291 9904 E [email protected] W skids.co.nz franchise.co.nz – search: sKids

Small Business AccountingAdam Parore


$48,000 A monthly accounting service specifically designed to provide regular support for the self-employed and small business operators. Retail locations accelerate client base growth. Accounting qualifications not necessarily an advantage. Would suit someone with business experience and / or with sound bookkeeping knowledge, and good communication skills.

44 44

Y P 0-9-578 3925 P 0800 114 SBA E [email protected] W sba.co.nz franchise.co.nz – search: SBA

Smith’s Sports Shoes Retail $150,000 - $400,000

National sporting footwear retailer, specialising in top brand performance footwear. 12 12

Y P 0-7-376 8202 franchise.co.nz – search: Smith’s

Snap-on ToolsNicholas Hudson

69 Auto Services

$52,000 + Snap-on franchisees sell the world’s best tools via mobile stores to professional tool users. 14 5000

Y P 0800 SNAP ON E [email protected] W snapontools.com.au franchise.co.nz – search: Snap-on

Snap Printing Business & Commercial

$220,000 + Australasia’s leading and most successful ‘on demand’ printing and copying franchise. 5 180

Y P 0-9-379 0822 franchise.co.nz – search: Snap Print

Spagalimis Italian Pizzeria

Food & Beverage

$250,000 Pizza, pasta, salad and dessert in a contemporary dining environment. Comprehensive training.

5 5

N P 0800 113 113 franchise.co.nz – search: Spagalimis

Speedy SignsGrant Archibald


$95,000 New Zealand’s and the world’s largest signs and graphics franchise. Our full service sign centres use the latest computerised technology to produce high quality custom signage. Operating since 1986. Now in 40 countries. Established locations may be available. No previous experience required. Financial assistance possible.

23 850

Y P 0-9-577 4223 M 021 662 239 E [email protected] W speedysigns.co.nz franchise.co.nz – search: Speedy

SpidermanStephen Hurley

Home Services

P.O.A. Pest control offering good opportunities to trade within the Spiderman network. Experienced persons are invited to contact us, references essential. Operating for 3 decades. Trademarked NZ, Australia, UK - master franchisees considered. Domestic services class 37 only.

4 4

N P 0-3-455 3793 E [email protected] franchise.co.nz – search: Spiderman

Step into LifeJenny Hannah

Health & Fitness

$39,995 Step into Life are the undisputed leaders in group outdoor personal training. With 160+ franchisees across Australasia, and more than 16 years of history, our proven systems will ensure your success. We recruit bubbly, vivacious, energetic and passionate personal trainers. Full training is provided.

4 161

N P 0-9-279 0992 M 021 851 637 E [email protected] W stepintolife.co.nz franchise.co.nz – search: Step into Life

Stihl Shop Retail $100,000+ Looking for individuals with good business acumen and great customer service. 61 61

N P 0-9-262 4000 franchise.co.nz – search: Stihl

Stirling Sports Retail $340,000 Established in 1964, Stirling Sports is New Zealand’s most trusted name in sports retail. 43 43

Y M 021 748 144 franchise.co.nz – search: Stirling

Storage BoxKeith Robieson

Retail $100,000 The preferred storage specialists in New Zealand, providing storage solutions to customers, Storage Box is the leading retailer of organisational products. Seeking potential licensees who are strongly motivated to succeed and have a passion for retail.

20 20

N P 0-9-271 1025 M 021 271 1025 E [email protected] W storagebox.co.nz franchise.co.nz – search: Storage

Streetwise CoffeeGraeme Harris

60 Food & Beverage

$110,000 Our reputation for exceptional espresso coffee means we now serve thousands of coffee-loving customers every day from our permanently-positioned designer coffee outlets. Ambitious? Good business and customer service skills? Love the thought of selling fantastic coffee to appreciative coffee lovers? Contact us.

16 16

Y P 0-6-364 5733 M 021 433 525 E [email protected] W streetwisecoffee.co.nz franchise.co.nz – search: Streetwise

Stretch-n-Grow Health & Fitness

$30,000 The Stretch-n-Grow programme promotes exercise and wellness for pre-schoolers. 1 250+

N P 0-9-447 1827 franchise.co.nz – search: Stretch

Subway Food & Beverage

$200,000 The world’s largest quick service submarine sandwich and salad franchise. 212 32K+

N P: 0-9-415 3091 franchise.co.nz – search: Subway

SumoSalad Food & Beverage

$450,000 The healthy fast food alternative. Join Australia’s fastest growing franchise. 2 80+

N P: 0061 4 0105 5437 franchise.co.nz – search: SumoSalad

Super Liquor Food & Beverage

$300,000 New Zealand’s largest retail liquor group offering convenience, value and exceptional service. 102 102

Y P 0-9-523 4064 franchise.co.nz – search: Super Liquor

Super Shuttle Business & Commercial

$90,000 New Zealand’s No. 1 nationwide airport passenger transport system. Owner-driver franchises. 120 120

N P 0-9-522 5710 franchise.co.nz – search: Super Shuttle

Swimart Pool & Spa Services

Retail $175,000 Retail store franchise providing all the needs for pool & spa owners. 4 63

Y P 0800 928 373 franchise.co.nz – search: Swimart

TACA NZ Business & Commercial

$65,000 Tungsten coating specialists. Supplier of hard facing services to a range of industries. 5 13

N P 0061 3 8727 5000 franchise.co.nz – search: TACA

Tacklebox Retail $90,000 Tacklebox provides a shop in a box. Good business acumen needed. 2 2

N M 021 231 2914 franchise.co.nz – search: tackle-box

Take Note Retail $300,000 Over 60 stores throughout New Zealand, all of which are locally owned and operated. 60+ 60+

N P 0-9-261 0871 franchise.co.nz – search: Take Note

Temporary Protective Solutions

Home & Building

$25,000 Provides temporary protection to surfaces in construction and related industries. 4 4

N P 0-9-528 5274 franchise.co.nz – search: Temporary Protective

The 2n’5 FranchiseRebekah Savage

Retail $70,000 The 2n’5 Franchise is a proven retail concept that has successfully run since 1994. We are looking for franchisees who will enjoy both a challenge and working with people on a daily basis.

17 17

N P 0-6-757 2702 E [email protected] W 2dollarshop.co.nz franchise.co.nz – search: 2n’5

The Alternative BoardStephen James


$100,000 The Alternative Board, a leading international franchise organisation, seeks franchisees to facilitate peer board meetings and offer executive coaching to local business owners. With a background as an executive or business owner, you will help businesses achieve more profitability, productivity and personal fulfilment.

3 150+

Y P 0-9-446 0963 M 021 606 934 E [email protected] W thealternativeboard.co.nz franchise.co.nz – search: Alternative Board

The Athlete’s Foot Retail $250,000 World’s leading sports footwear retailer. Exclusive fitprint technology and proven training. 9 600+

N P 0-9-426 0000 franchise.co.nz – search: Athlete’s

The Cheesecake Shop

Food & Beverage

$310,000 A thoroughly tested bakery format. Full training and ongoing support. 16 200

N P 0800 428 328 franchise.co.nz – search: Cheesecake

The Coffee ClubBrad Jacobs

Food & Beverage

$300,000- $450,000

One of NZ’s fastest growing café and restaurant franchises, with a comprehensive menu and relaxed dining experience. Proven track record with further expansion planned. Take advantage of a proven track record, great training and ongoing support. Ideal if you are passionate about people and building customer loyalty.

48 330+

Y P 0-9-304 0008 M 027 526 3333 E [email protected] W thecoffeeclub.co.nz franchise.co.nz – search: Coffee Club

The Coffee Guy David Bernard

43 Food & Beverage

$89,950 New Zealand’s number one mobile coffee company. The Coffee Guy franchise opportunity is simple, fun and flexible.With full training and support, a stand-out brand, and minimum sales guaranteed, you can’t go wrong. We have franchises available throughout the country.

56 56

N P 0-9-973 4821 M 021 331 243 E [email protected] W thecoffeeguy.co.nz franchise.co.nz – search: Coffee Guy


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Find the right franchise by starting with the right people.



Montgomery Consultants

Limited

Phone 09 578 [email protected]

Accounting support to SME’s inFinance, Payroll, Retail and MYOB

Part of the Franchise Solutions Ltd group

Membership of Institute of Chartered Accountants

Let us help you make the right decision• Free initial 30 minute consultation• Fixed fee packages

We have the expertise and the experience to find cost effective legal solutions for your franchising needs

Contact: Lizandra Bailey (09) 281 4552 [email protected]

92 Parnell Road, Auckland

Chartered Accountants specialising in franchising

[email protected] 0-9-309 2561 Fax: 0-9-309 7798

Mobile: 021 309 309

Due diligence reportsBudget and cashflow projectionsFinancial accounting and reporting systems

As members of the Franchise Association of New Zealand we assist franchisors and franchisees with:

Benchmarking reportsLiaison with other advisors (banks, lawyers, consultants)Tax adviceBest structure for the business (company/trust etc.)

The Fishmonger Seafood Delicatessen

Food & Beverage

$125,000 The Fishmonger Seafood Delicatessen is a new concept in seafood takeaways. 3 3

N M 021 588 880 franchise.co.nz – search: Fishmonger

The Pita Pit Food & Beverage

$225,000-$380,000

If you thought you missed the sub-sandwich boat, the international challenger is now here. 7 300+

N P: 0-9-486 4664 franchise.co.nz – search: Pita Pit

The Sweetest Little Chocolate Shop

Retail $230,000- $290,000

The leading retailer of quality NZ-made chocolate and confectionery. 2 2

Y P 0-9-521 6062 franchise.co.nz – search: Sweetest

Theobroma Cafés, Lounges and BarsWayne Wright

Food & Beverage

$200,000 –$600,000

Theobroma is a total food and beverage concept, operating in more than 5 countries, serving breakfast, lunch and dinner. You can’t walk past a Theobroma. Proven business formula. Full training provided so that you can be your own boss without being on your own.

7 30

N P 0061 3 9480 1030 M 0061 431 727 004 E [email protected] W theobroma.co.nz franchise.co.nz – search: Theobroma

Thexton ArmstrongDavid Thexton


$59,000 This is a long-term extremely profitable opportunity where you are fully trained and supported to grow your own successful consulting business. Seeking business-consulting franchisees. Would suit CEOs, CFOs, professionals, directors, ex-corporates ex-business owners and others wanting more lucrative, fulfilling and less stressful career alternatives.

5 31

N M 027 509 3385 E [email protected] W thextonarmstrong.com.au franchise.co.nz – search: Thexton

Toni&Guy Health & Beauty

$200,000 A Toni&Guy franchise offers a unique opportunity to join hairdressing’s only worldwide super brand. Toni&Guy are looking for people with a passion for excellence and desire to be at the forefront of NZ hairdressing.

1 425

Y P 0-9-847 9219 E [email protected] W toniandguy.co.nz franchise.co.nz – search: Toni

Touch Up GuysMartin Smith

Auto Services

$88,000 New Zealand’s premier mobile paint and bumper repair franchise. High quality car paint restoration services to commercial and private customers. Professional, reliable, cost effective and convenient. No industry experience required. Comprehensive training and full ongoing support provided. Great opportunities are available throughout New Zealand.

24 130

Y P 0800 759 363 M 021 721 430 E [email protected] W touchupguysfranchise.co.nz franchise.co.nz – search: Touch Up

ToyworldGeoff Moth

4 Retail $200,000 - $500,000

Join New Zealand’s largest independent toy retailing group. Toyworld are an iconic and respected brand operating for over 36 years. Opportunities exist for driven, experienced individuals who are passionate about retailing and want to own and operate their own business.

34 200

N P 027 283 2222 E [email protected] W toyworld.co.nz franchise.co.nz – search: Toyworld

Ultra-Scan Agriculture $80,000 + Ultra-Sonic animal pregnancy scanning. Mobile rural lifestyle working with animals. 19 19

Y P 0-7-889 3395 franchise.co.nz – search: Ultra Scan

United SweetsGarrick Smart

13 Retail $200,000 United Sweets is the biggest and best American and international confectionery retailer in New Zealand. Join the revolutionary new franchise system sharing online revenue. If you’re looking for a great investment, or to take control of your own future, look no further.

5 5

N M 027 522 5259 E [email protected] W unitedsweets.co.nz franchise.co.nz – search: United Sweets

United Video Retail $250,000 NZ’s leading video rental retailer. National coverage. New and existing franchises available. 100+ 100+

Y P 0-7-853 7035 franchise.co.nz – search: United

Valentines RestaurantsMurray Belcher

15 Food & Beverage

$400,000 Value for money buffet restaurants, great for the special occasion or groups. Established in 1989. Proven model. Suitable for metropolitan location. Solid business opportunity for person/s with energy and preferably hospitality background. Full training and ongoing support provided.

11 11

N P 0-9-451 9102 M 021 483 500 E [email protected] W valentines.co.nz franchise.co.nz – search: Valentines

Versatile Homes and BuildingsJaimee Ferris

Home & Building

P.O.A. Own your own business and build your wealth with our support. Versatile Homes and Buildings are one of NZ’s biggest building companies. As a franchisee you’ll have Versatile backing you all the way, with a strong support system and quantifiable financial benefits.

35 35

N M 0274 815 880 E [email protected] W versatile.co.nz franchise.co.nz – search: Versatile

Video EzyKevin Peterson Chris Osborne

Retail $200,000 - $1m

Operation of home entertainment centres specialising in rental and sale of videos, games, DVDs. In operation since 1991. New locations and existing stores currently available.

125 1010

N P 0-9-302 2229 M 021 955 834 E [email protected] W videoezy.co.nz franchise.co.nz – search: Video Ezy

V.I.P. Home ServicesJohn & Estelle Logan

25 Home Services

$15,000 + Professional home services franchise providing flexible, multi-serviced businesses. Work either indoors or outdoors. Exclusive territories with established customers. Providing a lifestyle choice for over 30 years. Actively seeking area master franchisees for both lawnmowing and cleaning throughout NZ. Comprehensive training and support provided.

120+ 1200

Y P 0-9-263 0544 M 021 489 861 E [email protected] W viphomeservices.co.nz franchise.co.nz – search: VIP

Waxnlaser Health & Beauty

$35,000+ clinic

Specialist beauty business. Become the market leader by focusing on doing one thing really well.

3 3

N P 0-4-565 0353 franchise.co.nz – search: WaxnLaser

Wet-seal Home & Building

$50,000 Wet-seal waterproofing and underfloor heating provides leading products. Full training and support.

8 47

Y P 0800 436 000 franchise.co.nz – search: Wet-seal

Wholly Bagels & Pizza

Food & Beverage

$250,000-$400,000

Auckland opportunities now available for our dual branded fully licensed restaurants. 6 6

N M 0274 534 876 franchise.co.nz – search: Bagels

Window TreatmentsGraeme Rose

Home & Building

$100,000 Window Treatments manufacture and supply blinds, awnings, shutters, insect screens. Franchise opportunities exist in Gisborne, Invercargill and the West Coast of New Zealand. If you are enthusiastic, well-presented, practical and want to be your own boss we want to talk to you.

21 21

N M 021 338 031 E [email protected] W window-treatments.co.nz franchise.co.nz – search: Window Treatments

Xpresso DelightAllan Parker

46 Food & Beverage

$69,950 We transplant the café experience into the workplace using state-of-the-art commercial grade automatic bean-to-cup espresso machines providing quality coffee. We provide a semi-passive income based on one day of work but equivalent to a week’s salary with lifestyle benefits.

17 175

Y M 021 875 431 E [email protected] W xpressodelight.co.nz franchise.co.nz – search: Xpresso

YB12 - Best Year of Your LifeSonia Coupe


$1,950 - $3,950

Individual, business and corporate coaching. With our pre-written and highly structured YB 12 Your Best 12 Months Ever programme, and your month-to-month coaching, you can be confident your clients will make tremendous and measurable progress in their lives, or businesses, or both.

22 120

N M 021 0291 8397 E [email protected] W yb12.net franchise.co.nz – search: YB12

Yard Art & KiwiMoulds

Home & Building

$5,000 Make your own quality concrete garden ornaments. Licensed or unlicensed package options. 12+ 40+

N P 0-9-473 3175 franchise.co.nz – search: Yard Art


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ACCOUNTANTSAccountants FirstImran Kamal

81 Free initial consultation. Franchise experts and experienced professionals in various franchise models. Advice on due diligence/appraisals, franchise valuations, set-up, structuring, financial reporting, asset protection, financing, tax advice and efficiency. Franchise-based solutions to maximise profits and growth.

National N P 0-4-499 6825 M 027 248 0675 E [email protected] W accountantsfirst.co.nz franchise.co.nz – search: Accountants First

BDS Chartered AccountantsPeter Taylor

75 Services include preparation of tax returns and GST for franchisees and franchisors, tax planning and structure advice. Over 20 years’ experience in accounting and tax, serving small to medium sized businesses.

New Zealand & Australia

N P 0-9-366 1822 M 021 882 430 E [email protected] W taxmaster.co.nz franchise.co.nz – search: BDS

Crowe Horwath Liz Le Prou

73 Crowe Horwath (previously WHK) provides specialist accounting and business advisory services to the New Zealand franchise industry. Specialist franchise team with vast experience. Proud members and gold sponsors of the Franchise Association of New Zealand events.

National Y P 0-4-569 9069 E [email protected] W crowehorwath.co.nz franchise.co.nz – search: Crowe

Franchise AccountantsPhilip Morrison

75 Save time, money and tax by benefiting from our specialist franchise advice and proven accounting solutions. Your success is our business. Ring now 0800 555 8020. Specialist franchise accounting solutions including due diligence, benchmarking, budgeting, valuations, business mentoring, tax planning, cashflow management and reporting software systems.

National Y P 0800 555 8020 M 021 229 9657 E [email protected] W franchiseaccountants.co.nz franchise.co.nz – search: Franchise Accountants

Grant Thornton New Zealand Ltd

52, 84

Experts in each office nationwide can help you in all areas of your business including advisory boards, strategic planning, establishment, operational matters, reporting and tax. We can help you make informed decisions about business opportunities and emerging issues. We provide a tailored, high-quality service and specialise in helping businesses grow through setting objectives and assisting our clients to reach them. Grant Thornton New Zealand Ltd is a leading business advisor and chartered accounting firm with three offices located in Auckland, Wellington and Christchurch. We are big enough to be specialised, but small enough to be personal.

National Y Auckland 0-9-308 2570 Wellington 0-4-474 8500 Christchurch 0-3-379 9580 E [email protected] [email protected] [email protected] W grantthornton.co.nz franchise.co.nz – search: Thornton

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Angel BerryJeff Boxen

P: 0044 1619 800 586 M: 0044 7983 452 859 [email protected] www.angelberry.me

Food & Beverage Angel Berry have brought a new dimension to the frozen yogurt market as their ground-breaking self-service experience puts them in a league of their own. Seeking NZ master developer.

2 UK£ 25,000

With each Angel Berry parlour expected to bring in profits of £150,000 to £200,000 a year, there should be an income stream to satisfy even the most demanding of business entrepreneurs.

By NatureDimtsas Vasileios

P: 0030 2414 05207 F: 0030 2414 005207 M: 0030 69322 15994 [email protected] www.bynature.gr/en

Retail By Nature was founded in 2008 to market natural cosmetics, wooden toys and handcrafted products. The company’s philosophy is based on the contribution to environmental improvement and raising awareness by promoting ecological consciousness.

5 Euros 50,000

The total investment fee is €50,000. A small investment that ensures a quick return on investment and strong performance.

Cub KartsJeff Boxen

P: 0044 1619 800 586 M: 0044 7983 452 859 [email protected] www.pacerleisure.co.uk

Leisure After 16 years of UK success, and as a result of ever-increasing enquiries for our leisure karts, we are now seeking to appoint carefully selected master distributors for all countries.

New UK£ 47,500

Additional income steams include merchandising, operating venues, sale of regional licenses, royalties, sale of Cub Kart packages and rental.

Geeks on CallAaron Kernbach

M: 0061 4 0884 7524 [email protected] www.geeksoncall.com.au

Computer Geeks on Call is Australia’s leading trusted advisor for computer repair and IT support to small business and residential clients.

27 NZ$75,000 If you have excellent communication and business development skills, are passionate about managing teams to achieve their best we would love to hear from you.

Get ThreadedLiz See

P: 0061 4 1300 4127 M: 0061 4 1300 4127 [email protected] www.getthreadednow.com

Health & Beauty Get Threaded is an exciting international business leading the industry in the ancient art of hair removal by the technique known as threading. Popular all over the world.

30+ AU$ 100,000+

We are looking for entrepreneurs who want to be part of a cutting-edge niche concept for Get Threaded brow & beauty bars and salons, offering threading and other beauty services.

Lolita S.A.Michel Cohen

P: 00598 2309 0890 [email protected] www.lolita.com.uy

Retail Fashion franchise system. Most successful Latin American chain of ladies’ fashion stores already operating in 12 countries.

75 US$ 150,000-250,000

Seeking master franchisees for the New Zealand and Australian markets.

MagnetiteIan Harkin

P: 0061 2 9565 4070 F: 0061 2 9565 4080 M: 0061 410 684 093 [email protected] www.magnetite.com.au

Home & Building Distribution of retrofit double-glazing and associated products. Seeking NZ master licensee.

12 AUD$ 150,000

Key roles will include marketing, recruitment, supplier management, fabrication, installation, system compliance and customer service.

Medichem InternationalJeff Boxen

P: 0044 1619 800 586 M: 0044 7983 452 859 [email protected] www.medichem-int.co.uk

Health & Beauty Regional distributors required for exclusive range of hair and beauty products. Best selling products in company’s 20 year history.

6 P.O.A. Opportunity to get in at the beginning of a future international brand.

Memento FramesJeff Boxen

P: 0044 1619 800 586 M: 0044 7983 452 859 [email protected] www.mementoframes.co.uk

Retail Memento Frames is a business that boasts repeat order customers in every business and private sector. Looking to appoint an exclusive country distributor.

New UK£ 55,000

This business is not seasonal and never goes out of fashion. The potential markets are only limited by the boundaries of your own imagination.

Ready Steady Go KidsStuart Derbyshire

P: 0061 1 300 766 892 F: 0061 1 300 284 423 M: 0061 411 837 163 [email protected] www.readysteadygokids.com.au

Leisure & Education Australia’s leading multi-sport and exercise programme for pre-school aged children (2.5 – 6 years). More than 90 locations in Australia, Singapore and the UK. Fun, flexible and rewarding.

90+ AU$ 55,000

Love working with kids? Passionate about sports and physical activity? Understand the importance of customer service? If you answered yes, Ready Steady Go Kids would love to hear from you.

StreetStadiaJeff Boxen

P: 0044 1619 800 586 M: 0044 7983 452 859 [email protected] www.streetstadia.co.uk

Leisure StreetStadia transforms an open space into a dynamic sports and activity arena in a matter of minutes.

New UK£ 48,000

As a master distributor you will have sole distribution rights for this amazing product as used by some of the biggest names in football.

The Melting PotWilliam Gabbard

P: 001 949 224 3896 M: 001 303 829 4227 [email protected] www.themeltingpot.com

Food & Beverage The Melting Pot has defined the fondue restaurant niche across the US for more than three decades. Fondue is a fun and interactive dining experience at almost 150 locations in the US.

150 US$1m Restaurant experience not required.

TriosSam Elia

P:006 1 3 9370 5833 [email protected] www.trios.com.au

Food & Beverage The largest and fastest growing sandwich wrap franchise in the Southern Hemisphere. Our goal is to become one of the world’s most loved food brands.

17 NZ$ 200,000-300,000

Seeking passionate individuals or corporations from diverse backgrounds with proven retail experience in operating multiple outlets.

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The awardthat spells confidenceand trust

Service Provider of the Year

Maybe!If 'maybe' isn't the answer you’re looking for, then contact Franchise Accountants.0800 555 8020 www.franchiseaccountants.co.nz

Can I franchise my

business?

Inspired Business SolutionsCraig Weston

79 As CA’s we do the numbers, but we do much more. We take a holistic goal-orientated approach and help develop strategies to achieve those goals. We will work to get the best outcome for you. We will be upfront with costs and you will see the benefits.

National Y P 0-9-309 2561 E [email protected] W inspired.co.nz franchise.co.nz – search: Inspired

Markhams Clarke CrawBarry O’Donnell

With 65 years’ experience in the Otago community, being locally owned and operated we offer practical and solution-oriented accounting services for franchisees. Our focus is on our clients and the welfare of their business and financial interests. First meeting free.

Dunedin & Otago

Y P 0-3-477 0032 E [email protected] W markhams.co.nz franchise.co.nz – search: Markhams

Montgomery Consultants LtdPeter Montgomery JP

79 Complete accounting service for SMEs. Certified MYOB consultant for accounting, payroll and retail. Mentor, coach and very experienced business advisor. Friendly hourly rates. Member of ICANZ. Associate of Franchise Solutions who are members of FANZ. 35 years’ experience in all business areas.

Auckland N P 0-9-578 2318 M 0274 966 901 E [email protected] W franchisesolutions.co.nz franchise.co.nz – search: Montgomery MYOB

Staples Rodway ChristchurchJon Robertson Dave McCone

Assistance with franchise purchases and ongoing accountancy and I.T. support in the franchise area. Over 15 years’ experience in franchising in the SME market, acting for both franchisors and franchisees.

South Island

Y P 0-3-343 0599 E [email protected] W staplesrodway.com franchise.co.nz – search: Staples

Young Read WoudbergEric Woudberg Raimarie Pointon Steve Read

Specialists in all business areas, with substantial experience in franchises. Our services include appraisals, structure review and planning, monitored business performance, mentoring and technology. We are committed to easily accessible, personal service focusing on client needs, building individual relationships and providing added value solutions.

Tauranga, Bay of Plenty

Y P 0-7-578 0069 M 027 570 1172 E [email protected] W yrw.co.nz franchise.co.nz - Woudberg

FINANCE PROVIDERSANZSean Dwyer

68 ANZ is dedicated to being the leader in the provision of financial services to the New Zealand franchise sector. We deliver this through a nationwide team of Business Managers in all major centres throughout New Zealand. Our Business Managers assist existing and start-up franchise business owners achieve their short-term and future business needs.

National Y P 0800 251 858 M 027 232 1505 E [email protected] W anz.co.nz franchise.co.nz – search: ANZ

ASBCraig McKenzie

44 ASB provides a comprehensive range of financial solutions for both franchisees and franchisors including finance, insurance, savings and investment options, everday banking and more. So if you are thinking of starting or buying a franchise, talk to our franchise specialists on 0800 272 476.

National Y P 0800 272 476 M 021 805 425 E [email protected] W asb.co.nz franchise.co.nz – search: ASB

BNZWarren Sare

20 Talk to us about our wide range of specialist services that we can tailor to meet your needs as a franchisor or franchisee. We’ll use our 145 years experience in business banking, giving your business the support it needs to grow and succeed.

National Y P 0800 ASK BNZ M 029 222 0430 E [email protected] bnz.co.nz/franchise franchise.co.nz – search: BNZ

Silver ChefDan Toms

41 Silver Chef are an equipment finance company that specialise in funding equipment for the hospitality industry. Silver Chef has a unique finance offer that allows customers flexibility while conserving their capital.

New Zealand & Australia

Y P 0800 443 334 M 0061 488 068 537 E [email protected] W silverchef.co.nz franchise.co.nz – search: Silver Chef

Westpac New Zealand LtdDaniel Cloete

30, 83

Westpac is New Zealand’s most experienced bank in franchising and the only bank offering dedicated franchise only specialist managers throughout the country. Westpac has a high level of expertise in the franchise industry; this has been built up over the past two decades by working closely with franchisors, franchisees and industry specialists. The resulting depth of experience enables us to provide you with informed specialist advice regarding franchise funding and franchise specific transactional solutions. Specialists in franchise financing:Auckland/Northland - Dean Madsen, Chris Gavin, Ashika LalWaikato – Connie ShortLower North Island – Nick VirtueChristchurch/South Island – Mark SchraderOtago/Southland - Graeme Wyllie

National Y P 0800 177 007 E [email protected] W westpac.co.nz franchise.co.nz – search: Westpac

LAWYERSASCO: Agmen-Smith LawyersMiles Agmen-Smith

53 New franchise system set-up, franchise agreements, disclosure documents, brand name, trademarks, IP, master licensing, import/export, leasing sale and purchase structure compliance, disputes. Highly experienced team. Wide experience in all aspects of franchising. Extensive network of franchising contacts NZ and internationally.

National & Worldwide

Y P 0-9-308 8070 M 0274 779960 E [email protected] W ascolegal.co.nz franchise.co.nz – search: ASCO

Botting LegalBradley Botting

Franchise and commercial law specialists. We provide practical legal advice in plain English for both franchisees and franchisors at very competitive rates. Preparation and review of franchise documentation, advice on structuring and IP protection, franchise operation and dispute resolution.

National Y P 0-9-950 3880 E [email protected] franchise.co.nz – search: Botting

Davenports Harbour LawyersScott Goodwin

3 Davenports advise on all aspects of franchising including developing franchise systems, preparing franchise documents, reviewing franchise arrangements and advising on disputes and intellectual property protection. Team of leading law experts that are well-known in the franchise industry and who focus on making it possible.


Y P 0-9-915 4396 M 027 700 7396 E [email protected] W davenportshourbour.co.nz franchise.co.nz – search: Davenports

Deirdre Watson - Barrister 25 years’ experience in litigation, disputes, court cases and mediation. Franchise dispute specialist. National Y P 0-9-309 6988…M 021 791 740 E [email protected] W deirdrewatson.co.nz franchise.co.nz – search: Deirdre

Gaze BurtMichael Bright

Lawyers providing full legal services for franchisors and franchisees including advice and documents relating to franchise development, franchise evaluation, risk management, transactional management and dispute resolution. Our experience is extensive over many years and we understand the important and significant fundamentals required for quality franchising.

National Y P 0-9-414 9800 E [email protected] W gazeburt.co.nz franchise.co.nz – search: Gaze

Gibson Sheat LawyersClaire Byrne Dave Robinson

76 We provide comprehensive advice on the legal aspects of franchising to both franchisors and franchisees. For details see our website. We can quickly establish the issues each party is likely to encounter and address these at the outset before they become problems.

Greater Wellington

Y P 0-4-916 7483 M 029 916 7483 E [email protected] W gibsonsheat.com franchise.co.nz – search: Gibson

Harmans LawyersMark Sherry

Comprehensive legal service for both franchisors and franchisees including franchise and disclosure documentation, employment, leases, terms of trade, dispute resolution and business structures. Full service legal firm that prides itself on being solution driven. Franchise specialists with a proven track record.

South Island and National

Y P 0-3-352 2293 M 021 524 890 E [email protected] W harmans.co.nz franchise.co.nz – search: Harmans


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Franchise-based business and accounting solutions will maximise

your profits and growth

Expert Franchise Advice

Due diligence/appraisals Franchise valuations Tax efficiency/advice Franchise structuring Financing

Free initial consultationPh: (04) 499 6825

[email protected]

Franchise purchase or sale Profit improvements Financial reporting Franchise set up Asset protection

Fax: (04) 499 6824www.accountantsfirst.co.nz


We’ve had franchise specialists longer than most NZ franchisees have been in business.


CONSULTANTS & OTHER SERVICESCDQ Communication DesignPaul Donovan

Graphics & Print Management

Quality graphics and print management from franchising’s design and print specialists. Your brand’s awareness and value will grow stronger with CDQ’s expertise. Brand/corporate identity design for advertising, promotional, recruitment and operations materials. Over 20 years’ experience with leading franchise brands.

National N P 0508 CDQ CDQ M 021 64 45 45 E [email protected] W cdq.co.nz franchise.co.nz – search: CDQ

Cumulo9Jason Simons

Email Branding We deliver standardised, professionally branded, business email signatures by applying a feature-rich consistent template to every company email communication. Standardise your most popular business communication tool. Unlock the rich sales potential on every email with tracked promotional messaging.

National N M 027 938 0840 E [email protected] W cumulo9.com franchise.co.nz – search: Cumulo9

Expro NZ LtdBrett Rodger

24 Expo Organiser

An expo helps people get into business by providing access to available franchise and other business opportunities, as well as business, professional and government service providers. 2013 Auckland expo 19 - 20 October.

National Y P 0800 439 776 P +64 7 544 5058 E [email protected] W franchisingexpo.co.nz franchise.co.nz – search: Expo

Franchise AccountantsPhilip Morrison

81 Franchise Consultants & Accountants

Specialist advice on franchise system development, feasibility studies, recruitment, documentation, manuals, ongoing mentoring, strategic planning and partnering to grow your business.

National Y P 0-9-265 2657 M 021 229 9657 E [email protected] W franchiseaccountants.co.nz franchise.co.nz – search: Franchise Accountants

Franchise CoachDavid McCulloch Fiona Macky

81 Franchise Consultants & Recruitment

Comprehensive advice on franchise system development. Feasibility studies, manuals, documentation, legal briefs, franchisee recruitment, exporting and importing, mediation and ongoing mentoring to grow your business. The Franchise Coach has been a major contributor to the success of franchising in New Zealand since 1983. Consultants, trainers and speakers.

National & Worldwide Australia 1800 834 440

Y P 0800 4FRANCHIS M 021 943 776 P 0-9-580 1556 M 021 616 519 E [email protected] E [email protected] franchise.co.nz – search: Coach

Franchise Relationships InstituteDavid McCulloch Fiona Macky

Franchise Research & Development

Franchisee selection systems, satisfaction surveys, recruitment and training for franchise management. Assistance with organisational change and restructuring, conference presentations on managing the franchise relationship. “The Franchise Coach” has been awarded the agency for the Franchise Relationship Institute’s products, including Greg Nathan’s popular books.

Australia & New Zealand

N P 0800 4FRANCHIS M 021 943 776 P 0-9-580 1556 M 021 616 519 E [email protected] E [email protected] W franchiserelationships.com franchise.co.nz – search: Relationships

Franchise Solutions LtdPeter Montgomery JP Thomas Grube

76 Consultant Innovative and effective solutions from international skilled franchise advisors. We have been franchisors/franchisees/franchise support managers so we really understand franchising. Quality advice without obligation. Leading mentors, coaches, facilitators, advisors, and mediators with over 15 years’ experience in franchising.

National Y P 0-9 578 2318 M 0274 966 901 E [email protected] W franchisesolutions.co.nz franchise.co.nz – search: Franchise Solutions

Franchize Consultants (NZ) Win Robinson Callum Floyd

26, 76

Franchise Consultants

Specialists in franchise development, strategic planning, legal briefs, systems and manuals, recruitment processes and documentation, ongoing mentoring and sound advice on franchising and licensing. Recognised as New Zealand’s leading management consultancy specialising in franchise development. Experience with many of NZ’s top franchised companies.


Y P 0-9-523 3858 E [email protected] W franchize.co.nz franchise.co.nz – search: Franchize

Jones Lang LaSalleChris Beasleigh

Retail Real Estate

We specialise in finding suitable retail premises for franchisors and franchisees in New Zealand. We also manage a number of shopping centres throughout New Zealand.

National N P 0-9-363 0286 M 021 597 856 E [email protected] W joneslanglasalle.co.nz franchise.co.nz – search: Jones Lang

LINK Business FranchisingKevin Atkinson

48 Franchisee Resales & Recruitment

LINK are franchised specialists in business sales, franchise re-sales and recruitment and sales of franchise opportunities. We provide professional, practical franchise advice to our clients. LINK has more brokers, in more locations, and has more businesses for sale than any other brokerage.

National Y P 0-9-579 9226 E [email protected] W linkbusiness.co.nz franchise.co.nz – search: Link

MEGA Services Franchise ConsultantsRay Lindstrom

53 Franchise Consultants

MEGA Services Franchise Consultants are the most professional and cost effective way of developing your franchise documents and recruiting franchisees to expand your business world wide. Expand your business with MEGA Services Franchise Consultants now! Check out our free Feasibility Report – can you franchise your business? (normal value $1,500).


N P 0800 006 444 M 027 2525 334 E [email protected] W megafranchise.co.nz franchise.co.nz – search: Mega Services

Switch BusinessDavid Newport

Business Brokers Business broker with 15 years’ experience. Able to provide information and advice on both buying and selling franchises. Our comprehensive service managing the entire sales process is essential to completing a successful transaction on your behalf.

National N P 0-9-377 7735 M 021 304 414 E [email protected] W switchbusiness.co.nz franchise.co.nz – search: Switch Business

Waipuna Hotel & Conference CentreWayne Billings

46 Conferences Hotel accommodation with fully integrated conference centre suitable for small meetings through to international conventions. Full food, beverage and leisure facilities complete the offering. “World famous in New Zealand”, Waipuna Hotel and Conference Centre is an icon in the mid-range meetings and leisure market.

Greater Auckland Area

Y P 0-9-526 3024 M 0274 992 413 E [email protected] W waipunahotel.co.nz franchise.co.nz – search: Waipuna


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Harris Tate David Foster Katrina Hulsebosch Oliver Moorcroft

77 All aspects of franchising and business advice including disputes resolution. Advisors to franchisees and franchisors locally and nationally. Experienced in advising the franchise industry. Franchisor and franchisee advice. Full commercial advice.

Bay of Plenty and National

Y P 0-7-578 0059 E [email protected] W harristate.co.nz franchise.co.nz – search: Harris

Izard WestonHamish Walker

Wellington and lower North Island experts in the specialised field of franchising and licensing. We are practical, personable and professional. We can help both franchisor and franchisee clients with all their legal requirements.

Wellington and National

Y P 0-4-499 7809 M 0272 882 339 E [email protected] W izardweston.co.nz franchise.co.nz – search: Izard

MacDonald Bailey LawRory MacDonald Lizandra Bailey

79 Expert franchise lawyers who specialise in fixed price packages for legal services. A specialist firm based in Parnell offering sound, practical and timely advice, we can assist with all business legal requirements.

National & Overseas

Y P 0-9-281 4552 M 021 774 333 E [email protected] W mblaw.co.nz franchise.co.nz – search: MacDonald

Sarah Pilcher The Franchise LawyerSarah Pilcher

Over 15 years’ experience in franchising providing focused, cost-effective legal advice, plain English documents and commercially relevant solutions. Start-ups and existing businesses. Fixed price documents and legal advice for franchisees and franchisors. Converting franchise documents for use in other countries.

Auckland & National

N P 0-9-579 3526 M 027 564 9942 E [email protected] W thefranchiselawyer.co.nz franchise.co.nz – search: Pilcher

Stewart Germann Law Office, Lawyers and Notary PublicStewart Germann Hashad Shiba

8 Over 30 years’ franchising and licensing experience. Legal advice to franchisors and franchisees nationwide. Stewart Germann is a Past Chairman of FANZ and is passionate about franchising and small to medium businesses. Awarded Franchise Law Firm of the Year for New Zealand – Dealmakers Law Awards 2012 – Winner.


Y P 0-9-308 9925 M 021 276 9898 E [email protected] W germann.co.nz franchise.co.nz – search: Stewart

*Westpac’s current lending criteria apply to all applications for finance. See westpac.co.nz for further details. Westpac New Zealand Limited.

Starting a new business is a big step and franchises have their own particular challenges. Because Westpac is experienced in franchise banking, we understand what you need to plan for. We have franchise-only specialists across the country, so you’ll get the support you need with your new venture.

We can offer specially designed franchise banking packages and finance options* to get you up and running. There’s no substitute for experience, so call our team today for great banking advice and the best start for your new business.

A franchise takes care of a lot of the tricky start-up stuff. So do we.

Call 0800 177 007 to find out more.

franchise new zealand - vol 22 iss 03 - spring 2013

Documents

new challenge

new situations

toy business

lunch group

big business opportunity

van franchise

small group of franchise

informal lunch