Franchise Everything

The 5 Key things that have made the Squires Loft franchise business what it is today.

Franchisors Jeff Leipnik and Katie Bruce talk in particular, on the importance of the flavour profile and its consistency as keys to success.

Having previously never really marketed or advertised widely for franchise partners, growth has been very organic with existing customers being the key purchasers of locations. A decision now to carefully open up the franchise sales wider has been taken.

In Episode#82 - Jeff and Katie discuss the 5 key factors that have made the business what it is today;

Every franchise owner was a dedicated customer first, and this is primarily how the brand has moved to 15 locations up to this point.

The flavour profile of product served through their proprietary baste is a key point of difference and is a key identifier of the brand in the market.

Katie and Jeff started as franchise owners in the business and progressed to franchisors owning the business when the founder decided it was time to pass the baton.

For a significant period in the business, the signature baste and flavours were made in just 5kg pot batches inside a single restaurant location. A key moment in taking the brand forward was Katie and Jeff spearheading the establishment of a manufacturing facility to produce product at scale, the scale required to grow the brand.

No Squires Loft location is the same. The uniqueness and flexibility in design for each location is an important step in making each restaurant that particular franchise owners location and tailoring it to the aspects of the building and the local area.

0:00 Intro

0:37 First, essentially every franchise owner was a customer first

1:04 What sort of requests and contact they get to buy a franchise from customers

2:00 Second, the baste and flavour profile and the commitment to flavours

3:22 Getting into manufacturing of the baste after originally being franchisees

5:41 Third, Jeff and Katie going from franchise owners to owning the franchise brand

7:33 Fourth, the factory step for the growth and consistency of the business

9:12 Fifth, uniqueness location approaches and strategy around it not being a cookie cutter approach so each location has a personality.

11:13 Wrap up

Podcast Produced by: www.franchisebusinesshub.com.au

Franchise Stories and Knowledge Base (our other website): www.franchisebuyer.com.au

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You can buy a franchise in two ways, a brand new ‘Greenfield’ location, or an existing business as a ‘re-sale’.

The way you value these for a purchase price is very different and must be understood as it is at the heart of risk v return.

Peter Knight is widely regarded as one of the top franchise accountants in the country, and one who plays a key role in understanding value for incoming buyers of franchises. In the ‘franchise pre-purchase review’ process offered to the market, Peter has assessed literally hundreds of franchises for sale for clients.

In this discussion we put together an explainer on how an exisiting operating franchise location valuation is undertaken. In a previous explainer in Episode#62, we looked at valuing a brand new franchise location.

The concept of ‘add-backs’ into the business to justify a sale price is broken down, and explains why they can be contentious. Profit multiples, franchise agreements, refurbishments, updating equipment and more is also a focus in the discussion.

0:00 Intro

0:53 Have the benefit of existing business figures - the financial statement

1:27 How they come up with a sales price for an existing business - the ‘multiple’

2:53 A calculation to figure out profit and the concept of add-backs

6:05 How contentious the concept of ‘add-backs’ are

7:11 The role of broker and accountant in the sale of the business

7:44 The add-back becomes the biggest point of contention in the sales of businesses

8:15 Re-sale of an existing franchise and approaching refit, franchise agreement and lease terms

9:50 The timing of a sale and look at expenses on the horizon

10:20 The term of a franchise agreement on a re-sale

10:46 The role being played as an Accountant and emotion v real numbers

11:57 Getting finance deals done and the advantage of an existing business with proven numbers

12:29 Wrap up

Podcast Produced by: www.franchisebusinesshub.com.au

Franchise Stories and Knowledge Base (our other website): www.franchisebuyer.com.au

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Are there too many options already in order to invest in the Australian fitness industry?

Sam Waller started as a personal trainer turned franchisee, then became the franchisor of Stepz Fitness, growing the network carefully to 25 locations at the time of filming.

He has some strong opinions on where the gaps in the market are.

If you are not in fitness in franchising, you probably have an instinctive feeling that there are simply too many concepts out there competing against each other for the same customer.

But is this instinctive feel true? Are they actually competing for the same customer and is there much more to it?

Sam has strong views through his extensive experience and focuses our chat on the importance of a strong unique selling proposition (USP), exactly who you are serving in the market, location factors, and the lure and challenges of regional Australia.

0:00 Intro

0:44 The elephant in the room in fitness - are there too many fitness concepts?

1:05 Sam’s thinking on fitness businesses and importance of unique selling proposition

2:01 Thought deeply about who they want to attract to the business

3:10 The industry globally not doing enough to get members results

5:14 Finding gaps in the fitness industry in opening new locations

7:18 How many gyms can be opened?

8:50 One store towns and the lure of regional success potential

10:29 What to look for in a location for a gym

11:54 Knowing your customer and even suggesting people go to competitors that are a better fit

13:23 Industry is mature and brands have their own niche with more appearing

14:00 Sam would not start a gym franchise now as not enough space in his view

15:26 Being personal and contactable as a franchisor

16:36 Conclusion

Podcast Produced by: www.franchisebusinesshub.com.au

Franchise Stories and Knowledge Base (our other website): www.franchisebuyer.com.au

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While working in retail, out of the blue, Harry got asked if he’d like to trial a job repairing lounges on the road. He loved it and after 2+years as an employee, he got the opportunity to buy the business he worked in.

The Lounge Repair Guys get the opportunity to work miracles and some much-loved items in your home that many thought they’d have to throw out!

Sometimes with up to 10 or so jobs in a day, with the pre-requisite basically being that you just need to be good with your hands, Harry had 2 good years to see the business from the inside.

When the owner wanted to sell, and finance was tight, a vendor finance arrangement got Harry secured in his own business. Running a small team on the Northern Gold Coast, and looking to add to that team, Harry has made a great transition from employee to business owner with some lessons and insights along the way!

0:00 Intro

0:23 Territory area covered on Northern Gold Coast

0:38 What Lounge Repair Guys does in the business

1:34 Describing the types of work that gets done and those that can’t be fixed

2:55 The skills needed, being good with your hands

3:35 How Harry started in his career

5:25 Trialling in the job of fixing lounges

6:24 Other jobs at the time considered by Harry

7:13 First thing he fixed

9:00 Warranty work for retailers

10:31 Started as an employee for 18 months then transitioned into franchise owner

11:42 What could happen if Harry didn’t buy the franchise off the owner

12:15 How he approached finance and how to purchase the business

13:46 Effectively ended up doing an 18 month paid trial in the business

14:07 Describe a typical day

15:53 Managing his time through the day

16:50 Having a dedicated person doing bookings and admin with multiple technicians on the road

17:26 The key takeaways going from employee to business owner

19:46 The challenge of leading teams if you haven’t prior

20:27 Most enjoyable part of the business

21:58 What the future looks like after 2+ years in the business

22:58 What expanding the business looks like practically

23:47 Wrap up

Podcast Produced by: www.magneticbusinessmedia.com.au

Franchise Stories and Knowledge Base (our other website): www.franchisebuyer.com.au

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How do even the big brands get location strategy wrong at times when placing franchises into the market?

We unpack what went wrong in three very different real-life scenarios to gain insight into how it can happen and why.

As a leading authority on location data and its impact on consumption behaviours, Vanessa Wilmot, MD of geotech  talks us through some specific situations she has been directly involved in understanding the why, then going about fixing the problem for franchise brand.

We dig deep on these three scenarios;

• A food brand of 50-80 locations that thought it was appealing to a much more on-trend type of consumer segment and adopted a location strategy around that, only to find the locations were failing within a year or so.

• A destination larger retail store that made the significant mistake of enticing early investors into the franchise with the allocation of exclusive territories that were so large that four stores could fit in them than the single store they had. Unraveling this took around 10 years.

• A Perth dominant food rand that looked to replicate that success in the Eastern seaboard market and failed to adapt their offer and approach enough or at all from the WA based offer, only to have very limited penetration.

Vanessa details ways to identify these issues before they happen, what to learn from the scenarios, and gives a kind of check list of things to be considering when making such location decisions.

0:00 Intro

0:39 How often Franchise brands get locations wrong

1:51 The types of things that gone wrong in location selection, starting with not doing research to start

2:29 Other thing that goes wrong is giving away too big or too small territories

03:04 Examples of scenarios gone wrong first scenario, medium growth stage food brand with 50-80 stores

06:48 How do brands make such mistakes

07:29 Next scenario a territory destination based brand putting one store exclusively in a territory with 30 stores at the time giving huge territories  - 10 years to unwind the mistake

12:03 Next scenario in a food brand focused on Western Australia that dominates that region but trying to replicate that in eastern Australia

14:24 Seeing quite a difference between Melbourne and Sydney and how hard Sydney is to crack for many brands

15:36 The processes to solve the location puzzle

16:35 Wrap up

Podcast Produced by: www.magneticbusinessmedia.com.au

Franchise Stories and Knowledge Base (our other website): www.franchisebuyer.com.au

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With 15 locations built over 30 years, Squires Loft could well be considered a bit of a ‘hidden gem’ with it’s unmatched attention to detail in flavour and grilling steaks, ribs, chicken and more across its one of a kind locations.

We spoke with Alec Palexas, General Manager & Operations Manager, and Jeff Leipnik, Franchisor on the brand and franchise business model.

Squires Loft has its own dedicated manufacturing facility to provide a controlled, high level of quality product for all locations, with production built around a focus of flavour being critical.

We discuss the unique qualities that set Squires Loft apart from other steakhouses, focusing on their distinctive flavour profile derived from a proprietary base sauce made with 27 ingredients.

We also explore operational efficiencies such as their "knifeless kitchen" concept, as well as the flat fee structure for franchisees and site selection.

Contact Squires Loft Franchising here;

https://squiresloft.com.au/franchise/

0:00 Introduction

0:42 Squires Loft origins and its focus on quality steaks for over 30 years

1:20 15 locations currently, with 14 in VIC and 1 in WA, and how franchisees have found the business

2:25 Explanation of the unique flavour developed through meticulous ingredient selection in a Central Kitchen

3:47 The flavour detail with 27 ingredients and the point of difference

4:59 The ”knifeless kitchen" concept which simplifies operations by using pre-portioned ingredients

5:58 The model with vertical integration and reducing staff challenges

6:49 The type of people trained to work in the business’ kitchen

7:44 Having a small kitchen crew with often 3 people needed

8:58 Proprietary grills used made to specification

10:54 Breakdown of franchise fee structure highlighting a royalty-free model that supports franchisees

12:20 Insights into site selection criteria emphasising uniqueness over cookie-cutter approaches in outlet designs

14:35 Wrap up

Podcast Produced by: www.magneticbusinessmedia.com.au

Franchise Stories and Knowledge Base (our other website): www.franchisebuyer.com.au

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Mark Crapper, owner and franchisor of the Lounge Repair Guys team outlines key aspects of their franchise business model, emphasising its accessibility and unique setup as a mobile upholstery and furniture repair service.

Franchisees are provided with extensive training, so prior experience in upholstery repair is not necessary.

The business offers a low-cost entry into the market with flexible work schedules, allowing franchisees to run their business autonomously but with strong ongoing support from a central office.

Mark also covers in detail the differences between having a lower cost mobile business entry when compared to his other lengthy experience in food retail, shopping centre based types of franchises.

Each franchisee gains access to a comprehensive marketing strategy, including social media management, a branded work vehicle, and most importantly leads distributed directly from the main office.

This approach helps ensure a steady flow of business, enhancing the franchisee's ability to focus on service quality and efficiency. The mobile nature of the service also minimises overhead costs and expands the reach to clients who prefer repairs done on-site, covering both private and commercial needs. This means that the jobs are often very short tasks, with as little as 1 hour repairs, then onto the next job.

Depending on the jobs required, a day could have 10-11 jobs (small repair tasks), or much less with some larger jobs requiring more time.

This model attracts entrepreneurs interested in a hands-on, client-focused business with growth potential and flexible work-life balance.

0:00 Introduction to Lounge Repair Guys

0:19 What they do repair not re-upholstery

01:18 How the business works as a mobile van business

01:54 The lower entry costs of the business being mobile and no fixed premises

02:37 Mark’s extensive franchise experience and the key advantages of the mobile franchise

04:10 Low risk of the business model compared to so many other franchises with leads also generated for franchisees

04:45 How hard is it to learn to do the work in Lounge Repair Guys?

06:31 Repairing old furniture rather than throwing it out

07:10 The upholstery trade is almost disappearing and the work being picked up is often from retiring upholsteries

8:27 How many jobs they typically do in a day in their territory as a franchisee

8:58 Corporate accounts and where most of the work comes from - 70%

10:09 Value proposition as a franchisor to manage large corporate accounts

11:11 Ongoing training and technology and new materials and how there it moves slowly other than electronics in furniture that often fails needing repair

12:26 Wrap up

Podcast Produced by: www.magneticbusinessmedia.com.au

Franchise Stories and Knowledge Base (our other website): www.franchisebuyer.com.au

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Diya Javiya was after more flexibility and family time, so she shifted career from an accountant in the UK, to her own Bedshed franchise in Brisbane.

With her husband already owning another type of franchise, she knew a franchise model gave here the stability and support she wanted.

Diya shares that she chose to join Bedshed for its strong brand reputation and the support offered to franchisees. She explains how the franchisor provides extensive training, marketing resources, and operational guidance, which are critical for new franchisees.

Additionally, Diya discusses the transition from employee to business owner, a step marked by learning to lead and manage staff, and customer relations while upholding brand standards.

Her insights reflect the broader advantages of franchise ownership in Australia, where many franchisees see success due to the structured support and reduced risk associated with established brands.

This episode provides an in-depth look into the daily realities of running a Bedshed franchise, and any other business for that matter, and what it is like transitioning from a profession like accounting into a very different career in retail.

0:00 Intro

00:41 How the first year or so has been in the new business

01:35 Diya was an account and what that career was like

02:38 Why did she want to transition from being an accountant to owning a retail buisness

03:56 Moving out to Brisbane from the UK and being an accountant here first

04:59 Husband runs a franchise in the flooring industry and what Diya brings from that to her business

06:00 Diya doesn’t ‘sell’ to people, she talks to them to find out needs

06:39 two different franchise systems in the family - is there much difference?

07:42 What the first 14 months have been like in the franchise

10:09 Is the accountant in Diya happy with the business progress?

11:54 Getting trained to be ready to run a Bedshed franchise

13:45 Selling her first mattress - nerves when the first customer walked in

15:36 Selling skills and process taught by Bedshed and mattress manufacturer support

16:52 Imparting selling skills knowledge to the team

17:46 Type of customer Diya finds the most challenging

19:33 The key challenges that was not as prepared for going from Accounting to retail - a people business

21:22 The future possibly multi-store expansion?

22:31 Wrap-up

Podcast Produced by: www.magneticbusinessmedia.com.au

Franchise Stories and Knowledge Base (our other website): www.franchisebuyer.com.au

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We delve into the intricate process of crafting the perfect doughnut with Jim & Rose Stoupas, founders of Walker's Doughnuts. As a food technologist, Jim provides expert insights into the technical and creative aspects of doughnut making, sharing in detail, what sets their doughnuts apart.

We covered the importance of taste, shape, and texture, emphasising the role of the ‘plimsoll ring’ in proofing and frying. Jim also discusses the challenges of maintaining a doughnut’s visual appeal, from getting the perfect fondant shine to ensuring toppings stay crunchy despite moisture.

Walker’s only uses high-quality ingredients, like their freshly made custard, and we share the behind-the-scenes development of unique doughnut flavours like the toffee apple filling, cherry strudel, and the New Zealand-inspired ‘bronut’ and more.

We also cover the difficulties of rising ingredient costs, especially in chocolates, and the business strategy of ensuring quality doesn’t suffer despite these challenges. Expansion and franchise models are explored, where franchisees will receive doughnuts pre-decorated, adding final touches to ensure consistent quality.

The episode highlights the precision, craftsmanship, and passion behind creating exceptional doughnuts while addressing the operational aspects of running a doughnut brand.

00:00 Introduction to the topic of the episode and Jim & Rose Stoupas from Walker's Doughnuts, focusing on what makes an exceptional doughnut.

00:31 Doughnut Basics and Taste, Jim discusses the fundamental importance of taste and the technical aspects that make a great doughnut, like shape, weight, and doughnut texture.

01:24 The Plimsoll Ring, Jim explains the significance of the "plimsoll ring," which indicates proper proofing and frying, ensuring the doughnut rises and maintains its shape.

02:50 Topping and Decoration Techniques and the importance of visual appeal and decoration is discussed, with emphasis on the perfect fondant shine and how it affects consumer attraction.

04:21 Toffee Apple Filling, which took time to perfect, highlighting the process of achieving the right caramelisation for a unique flavour.

5:07 Crunch and Moisture Control in a white fondant product with cookie crumb on it from a manufacturer that specialises in crumb

6:11 Bavarian Cream and Custard blend and the importance of fresh, high-quality custard in Walker's Doughnuts and how they make it in-store daily to maintain premium taste

07:20 Cherry Strudel Doughnut and the inspiration behind the cherry strudel doughnut and the importance of achieving the right ‘crown’ and ‘spread’ during the proofing process

08:17 Proofing and Frying and the yeast proofing process, why it's essential, and how it affects the doughnut’s rise, texture, and flavour.

09:43 Bronut: The New Zealand Classic, a jam and cream doughnut inspired by New Zealand's classic style, and how icing sugar is used to avoid moisture issues.

11:14 Triple Chocolate Doughnut with proprietary chocolate fondant and the importance of using high-quality cocoa for an intense chocolate experience

13:12 Maintaining Quality Amid Cost Challenges with the rising cost of ingredients, like chocolate, and how Walker's Doughnuts has maintained its commitment to quality despite cost increases.

14:18 The famous Babe Ruth Doughnut featuring peanut butter, caramel, and chocolate, with craftsmanship involved in its creation.

15:33 Franchisee Model for Doughnut Decoration evolving the business model, where franchisees will receive pre-decorated doughnuts, allowing them to add final touches in-store to ensure consistency

16:45 Skilled Bakers and Expansion and the expertise of their baking team, who have developed an instinct for doughnut production, and the expansion plans for the Walker's Doughnuts brand

18:08 Wrap up

Podcast Produced by: www.magneticbusinessmedia.com.au

Franchise Stories and Knowledge Base (our other website): www.franchisebuyer.com.au

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Migrating from China to Australia as an Accountant, and finding the language barrier significantly harder than expected, so a change in course had to happen.

Struggling in a food business to eventually finding Houseproud Cleaning - and now Kathy is a 17 year veteran!

Kathy Xu, a 17-year veteran franchise owner of HouseProud Cleaning in Chatswood, we focus on her entrepreneurial journey. Kathy originally migrated from China with an accounting background, but due to language barriers and the challenges of re-qualifying in Australia, she shifted paths.

Initially, she and her husband ran a demanding Chinese takeaway business with no prior experience for three years in a shopping centre, which they sold at a loss. Seeking more work-life balance, they discovered the HouseProud Cleaning franchise. Despite initial skepticism due to its low entry cost, they were drawn to the business's flexibility and potential to balance work with family life.

After trialing the cleaning franchise for a week, they committed, finding it easier and more stable compared to a food business. Kathy emphasised the importance of communication, trust, and reliability in retaining long-term clients, some of whom have been with her for 17 years. Over time, she expanded her operations, now managing six cleaners, while gradually stepping away from hands-on cleaning to focus on operations and family.

Kathy reflects on the differences between residential and commercial cleaning, finding the former easier due to more straightforward communication and client relationships. Looking ahead, while she is content with her business, she doesn't plan to stay in it for another 17 years, thinking the physical demands of cleaning will be beyond her!

00:00 Introduction

0:19 Kathy started as an Accountant in China

01:17 When coming to Australia originally thought would be an accountant, but challenges to making that transition

1:44 Preparation before leaving China

2:33 The process to come to Australia

3:00 Why the verbal communication has been the biggest challenge

3:34 Kathy first went into English study in TAFE studying for Accounting

4:37 After a few years bought a takeaway food business in a shopping centre and how hard that was

6:03 Selling the food business for a loss and looking for another business

7:12 Finding cleaning businesses and thinking its so cheap then mustn’t be good

8:44 Trialing with some cleaning with Houseproud for a couple of weeks before buying

9:26 Keeping customers for 17+ years

11:08 Something breaks which can happen, communication is key

12:03 What Kathy does now with a team of 6 cleaners

13:44 Hiring their first contractor

15:28 Split between commercial and residential work

17:45 Recommending the business to friends

18:29 Catching up with other franchise owners

19:16 Wrap up

Podcast Produced by: www.magneticbusinessmedia.com.au

Franchise Stories and Knowledge Base (our other website): www.franchisebuyer.com.au

Listen or Watch on;

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Amazon Music: 

YouTube: https://youtu.be/U38s7_SkFWY