Franchise Everything

Franchise owner journey: Michael and Marlene Wallace are 11 year veterans in the Kwik Kopy franchise business.

Michael came to business out of an extensive engineering career working with food machinery for a number of global brand names, and Marlene from a significant admin and accounts background.

Michael became a little 'over' building businesses for other people, which also coincided with Marlene looking to re-enter the work force after being home-based raising the kids, and finding that re-entry difficult.

With a firm grasp and clarity on what it means to get value from a franchise business model, Michael and Marlene are very focused on growth and the future of their business in new products and services where they see significant growth opportunity in their location.

0:00 Intro

0:46 In Kwik Kopy for 11 years

1:07 Background prior to owning the franchise, Michael as an engineer

3:06 Sick of working for someone else, and Marlene was out of the workforce for some time with the family so getting back into the workforce was difficult

4:05 Marlene previously managed payroll for a large company and worked in finance and admin

4:38 Managing accounts and also doing quoting and some finishing of projects in production

5:31 Detail and process oriented people

6:01 Difficulty getting back into the workforce for Marlene and what that was like, getting a business for more life control

7:06 The flexibility in the business for them for family as well

7:33 Your own small business and control and flexibility for yourself

8:46 How they found Kwik Kopy and finding no value in many other businesses they looked at

10:02 Why franchise business model was attractive for them

12:57 How they provide feedback to the franchisor in Kwik Kopy

14:29 The due diligence process on buying the franchise business

15:56 Found that the franchise owners are all very collegiate and tight in the system

16:30 Marlene's thoughts and nerves on getting their own business, and taking their time

17:26 Making sure your choice of franchise or business is right

18:58 Change in the structure of the system and territories

20:51 Talking to other people who are thinking of buying a Kwik Kopy

22:38 Main work that they do in their store

25:55 What the future looks like in the business and their location

28:52 Close out

Podcast Produced by:  www.magneticbusinessmedia.com.au

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

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As a company with 600+ franchise stores under it's banner across four (4) brands, and all focused on serving chicken, Manal Haydar, Franchise Sales Manager explains how they navigate and approach the market with four (4) brands in the same food segment, and the differences between them.

Craveable brands is the umbrella brand and the franchisor for Red Rooster, Oporto, Chicken Treat, and Chargrill Charlies.

With Red Rooster being an iconic Australian brand at more than 40 years in operation, and the three other brands joining via acquisition over recent years, each have varying location and growth focuses.

We discuss these factors as well as those around ideal franchise partners, diverse franchise partner backgrounds and experiences, as well as not often thought about fact that people relocate cities and states to open these types of businesses.

0:00 Intro

0:32 What is craveable brands

0:56 Why only chicken brands

1:16 Starting with Red Rooster and the drive-thru focus, and adding subsequent chicken brands

2:45 The Oporto brand with Queensland and Western Australian expansion in particular (plus national) with 3 store concepts

3:50 Chicken Treat, a WA born brand and all things fried with 61 stores in WA only and still growing

4:25 Chargrill Charlies acquired in May 2023, and franchising has been commenced sooner than expected given demand, 19 stores currently with NSW and QLD focus

5:05 Multi-brand franchisor how are people enquiring, via a specific brand or just into craveable brands

6:09 Differences in entry costs between brands and the impact between states which can vary, and results in people moving interstate for a business to open

7:04 The ideal type of people to become a franchise partner

8:01 What background to people usually come from to own a franchise

8:44 What is the training like to become a franchise partner between the brands and differences

9:50 Key factors in growing the individual brands - Oporto

11:05 Key factors growing Red Rooster and looking for regional growth

11:23 Chicken Treat key growth focus areas currently just WA

11:45 Chargrill Charlies staying tight in Sydney for now and Melbourne, but also looking for QLD as well

12:45 Locations being a key factor in growing well, and relationships built for a future with franchise owners

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 you assess the TRUE-value price of a gym or fitness franchise? After 200+ transactions of gym and fitness franchises, Dustin Slypen is a business broker who has found a niche where he adds tremendous value to understand this.

In an effort to understand where the real value sits in these businesses, Glenn asked Dustin to zero in on the key components to valuing them in a purchase or sale process.

The conversation included insights on fit-out cost 'blow outs', equipment supplier 'kick-backs', deals falling over at the last minute, and why, as well as advising sellers not to 'talk-up' their impact in the business too much.

The key parts to value that we uncovered we're broken into broadly;

• Price expectation v reality,

0:00 Intro

0:52 The number of transactions and deals that Dustin has worked on in the industry (hundreds)

1:21 Price expectation versus the reality of what the business is worth.

2:51 Where do you see the valuation / cost 'blow-outs' beyond reality, and the costs of building a gym or fitness franchise

4:32 How the honest conversations go with sellers of businesses that need  to have a reality check on valuation.

5:29 The underestimation of costs of modernisation required by a franchise brand and their brand standards.

7:36 How often do franchises need them to update equipment and how this can be unfair.

9:25 Kick backs from suppliers of equipment back to franchisors.

9:54 Membership income and apportionment of it between ongoing (weekly) or up-front payments (annual) and its impact on valuation.

12:13 The focus of operators often to want to focus on the number of members as opposed to the yield per member.

13:26 The lease likely the most vital part of the equation in any sale.

15:13 Where the problems often begin, when owners come close to the end of their lease.

16:10 Deals falling over on settlement days due to the actions of landlords and the varying motivation of landlords.

18:24 Rent contributions by landlords and the risks with them.

19:54 Valuing the business based on a multiple that varies between 24/7 gyms, big box, functional training and boutique fitness businesses, and the staffing differences.

22:13 Advising vendors not to talk up how successful the business is based on what they have done.

22:49 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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As an 18+ year veteran in the business, commencing from an entry-level marketing role, to now the brand leader, Nicholas Woodward has played a key role in the evolution and growth of the PACK & SEND brand in the Australian and New Zealand markets.

A degree in Information Systems saw Nicholas quickly realise it was not a field he wanted to pursue, but instead, that business was much more his career path.

A progression of roles within PACK & SEND saw extensive direct field support function, and in particular at a key juncture in the business, spearheading multi-channel initiatives in offline / online, 'bricks and clicks' paths of the earlier years when online shopping strategy and usage was emerging quickly.

The position of COO and helping to prepare the business for sale by the founder, saw Nicholas later emerge as Country Manager and the brand leader in Australia and New Zealand.

0:00 Intro

0:56 Unique experience as full career at the brand.

1:43 Study in IT at University.

2:33 Experience in grocery retail and logistics.

3:08 Finding PACK & SEND advert for a role.

4:10 First job in the business 'Assistant Manager'.

5:38 How lead generation worked back then.

7:03 Consumer behaviour change to online website traffic driving.

8:35 Challenges in managing local advertising by a local owner, and instead managing it for them.

10:05 Change in role in business systems including field support.

11:35 Working to support the NZ market.

12:30 The role PACK & SEND plays in the market.

13:55 The challenges for small business owner to sort shipping.

14:58 Business coaching to franchise partners and rolling out POS.

16:00 What franchise owners need in support and balancing entrepreneurialism.

19:10 Franchising and risk mitigation.

20:12 Move into senior leadership and his vision.

23:26 Resistance to change to online offerings.

25:29 Becoming COO in building strategy going forward including the business sale.

27:12 Being mentored by Michael Paul, founder of the business.

29:21 The business sale approach of a franchise brand.

30:08 Launching varying online strategies to continue business as usual.

31:23 The fast-growth of micro-fulfilment and adding warehousing.

32:49 The spike in demand through the covid period and selling the business during it.

33:55 Becoming Country Manager.

35:35 What MBE International owning the business means.

37:28 The future for the brand and growth goals.

40:16 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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Peter Knight is a straight-shooting accountant who has established an enviable reputation as a key thought leader in accounting and financial education for the franchise sector, and in particular for franchise owners.

While many might look to focus on larger corporate clients such as brand head office type consulting, Peter has zeroed in especially on helping individual franchise owners to ensure they are making the right decision BEFORE they buy a franchise.

He came to this through a wide and varied career path.

Having a father who was a national figure, a TV personality, Doctor and renowned philanthropist,  has given him key traits.

A double-major degree in Accounting and Psychology saw Peter magnetically drawn instead to the certainty of accounting and numbers.

Several years as a junior in a top firm, followed by a highly lucrative transition to sales in accounting software at the boom of personal computers, and the pre-cursor to MYOB SaaS software, Peter eventually found himself drawn back to professional accounting practice.

Within 12 years, the firm was rated the 25th largest in Australia by BRW, and with offices in New Zealand as well.

A desire to slow down the pace, and move back to a more boutique agency approach to accounting services, and away from the high volume client approach, saw Peter move to establishing a number of businesses and brands in accounting and financial support, primarily focused on the franchise sector.

The Franchise Accountant is where he lands right now...

0:00 Intro

1:09 Degree qualified double majoring in Accounting and Psychology and the preference for certainty in Accounting

2:25 Deciding to focus solely on accounting and getting a job with a big firm and becoming a Chartered Accountant

3:30 What it was like as a young graduate into a big accounting firm after going to a small high school and track of Technical Tax focus that Peter worked on.

4:45 Exposure and finding a different career path to being an accountant in a big firm - a move into sales in software as a very early precursor to Xero and MYOB.

6:47 Developing skills in sales processes and broader life skills and becoming an award winning sales person.

8:23 Deciding to move back into accounting practice after having enough of sales as a manager in a small firm in Campbeltown with just 6 in the firm.

9:27 Growing the business and the plan going into the accounting practice and soon a goal to open a new office every year, eventually 10 in Australia and 2 in New Zealand.

10:58 Becoming the 25th largest Accounting practice in Australia, and how the growing accounting business was structured and ran.

12:31 The keys to growth in growing a business of that size.

13:13 Tiring of high volume approach to accounting and looking to step back to smaller boutique model, fewer clients, like a part-time CFO role.

14:48 Peter's famous father and the story of Dr James Wright (Dr John Knight).

17:44 The impact and impression on Peter by his dad.

18:36 How Peter focused on franchising.

21:00 Helping franchise business owners with their numbers.

21:29 What Peter has developed in the franchise sector for helping with conferences, Franchise Accountants Network (FAN), financial education and training.

24:21 Accountants that philosophically do not like franchising.

25:28 Writing a book on franchising with working title '37 things I wish knew before I bought a franchise'

27:26 How Peter learns from LinkedIn engagement in writing his book.

28:07 The main challenges in franchise financial education in the sector and some solutions.

29:58 Not seeing the whole picture when it comes to financial understanding in bigger corporates, and the impact of the 'tax man'.

30:53 Financial education and the role and responsibility of the franchisor.

31:45 ATO chasing debt right now.

33:23 Message to franchisors.

34:36 Wrap up

Podcast Produced by: www.magneticbusinessmedia.com.au

Franchise Stories:

www.franchisebuyer.com.au

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The ability to assess the value and risk of a franchise brand is crucial to the thousands of franchise prospects out there looking to into a business of their own.

However, the sheer number of opportunities, and the amount of information can make it difficult to measure one brand opportunity against the other.

Darryn McAuliffe, CEO of FRANdata Australia explains what their independent 3rd party 'Franchise Ratings Scale' is all about.

He explains the fact that a clear way to measure performance is lacking across the sector. Also discussed is how rigorous the process is, what the criteria is and the weighting of the 'stars' and more.

:58 Ratings of franchise brands, what is the Franchise Ratings Scale?

2:01 Why a 'star rating' measure

2:20 Why the ratings of franchise brands is needed in the Australian franchise market

3:19 How franchise brands leverage the fact that they have been independently rated

4:42 What creates a high rating in a franchise brand

5:28 How the rating process works

7:16 The reception of the ratings by franchise brands

8:43 The practical use of franchise ratings, in particular by people looking to invest in a franchise, but also feedback to brands

10:21 Brands often pleasantly surprised with what comes out of the rating process and result

11:03 The future with ratings and their place in the market

Podcast Produced by:  www.magneticbusinessmedia.com.au

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

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Franchise owner journey: After taking a redundancy from a commercial banking career after 18 years, Marcus finally wanted something for himself. Equipped with a Commerce Degree, Marcus took on a 20 year career in corporate banking in business banking and later in varying leadership roles.

He had a desire for his own business yet a franchise was not necessarily on the cards for him as he had a perception of a lack of control.

A criteria in his search for a business centred around location, turnover, profit and price primarily. After finding an existing Kwik Kopy franchise in an online listing, it just so happened that the business fitted all that criteria.

And thankfully, the fears of a lack of control in a franchise were unfounded according to Marcus!

:36 One career in Marcus' life prior to Kwik Kopy

:51 What it was like getting into the business in the back end of covid March 2022

1:45 Business banking roles straight out of University then into leadership roles following at Macquarie and NAB

2:35 Marcus' initial view of his career while in commercial banking and his take on small business at the time through his roles

4:00 How his business banking experience impacts his approach to his business now including writing his own business plans and cashflow forecasts

5:44 The catalyst for change and getting frustrated in his banking career

6:46 What the redundancy conversation was like and how to approach it

8:37 Jump to another bank for around 18 months and why a conservative response during covid

9:46 Start the search for a business with the desire always there to have his own thing

10:41 The criteria for a business, location, turnover, profit and price - an existing business, not neccessarily a franchise

11:51 Perceptions of franchising when thinking a franchise wasn't for him - thought not enough control

12:35 Other factors in a business search for Marcus

13:21 How Marcus found Kwik Kopy

14:33 Due diligence - How Marcus used his business banking skills for due diligence to assess the franchise

16:31 Speaking with exisiting franchise owners and the feedback Marcus got

17:31 Bought off an owner who had the business for 20 years, with experienced staff all keen to stay

18:20 What the initial and ongoing interactions with Kwik Kopy were like

19:51 What Marcus enjoys most about what he does

20:37 Marcus role he plays on a daily basis in his business

21:45 The performance of the business since taking over the business

22:18 The future for the business

23:11 Secrets of success in a Kwik Kopy

24:14 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 you get the best result from your investment in exhibiting at a franchise expo to pitch your franchise?

Tim Collett, Managing Director of Specialised Events, which owns the Franchising & Business Opportunities Expo, has seen the best and the worst of it as far as brands putting their best foot and forward at the events over many years.

In this valuable discussion for any franchisor looking to expand their network, Tim highlights that having a planned process of operating at a show, and the follow up process afterwards, is more important to the result than the actual booth space design that many would be focused on.

A 'must-listen' if you are involving expos in any aspects of the your expansion plans!

:26 How to exhibit and get the most out of a franchise expo as an exhibitor

1:26 Get organised early by committing and booking early for a better outcome

3:20 Planning processes in the months leading up to a show

4:11 What does success look like for you at a franchise expo?

6:33 Set up of your exhibition stand for success - be obvious

8:00 Letting prospects know you will be exhibiting at the event to come and meet face to face

10:10 Involving franchise owners on stands at franchise expos and promotions

11:30 Admin details well in advance of the show to avoid the scramble of pre-expo week

12:50 Team training a couple of weeks before the show about the objectives and plans

14:34 Putting the right people on an expo stand

16:50 Stand design doesn't necessarily need to be very expensive - but be professional

20:30 Be positive at the show as it affects the outcome significantly with your body language and attitude to all

22:45 The conversations based on benefits to the prospects and understanding more about each other

24:15 Don't say too much at an initial meet and disengage to focus on other prospects rather than spending too long with one person

25:05 Don't pack up early - you've invested in the show, but so have attendees. Don't plan it to leave early as it looks unprofessional

28:58 Following up after the show and having a process and plan organised before the show, not after

32:40 Complementary marketing for the events to help the success

Podcast Produced by:  www.magneticbusinessmedia.com.au

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

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The Beare Flooring Franchise Business Model with William Beare.

Originally from New Zealand, William was in the flooring industry over there and on moving to Australia several years ago, noticed that their was no equivalent mobile flooring offer with lower entry costs available in the industry.

While the business is open to enquiries outside the flooring industry, in particular a focus on industry professionals tired of working for a boss and sitting in a showroom waiting for customers to walk in, are at a distinct advantage.

Our discussion centred on some key aspects to the business;

:33 A background in flooring in NZ and noticed the gap in the Australian market and entered with a mobile showroom through a full-fitted van of samples - the key point of difference

:55 The mobile showroom point of difference as a showroom on wheels with customers seeing all samples at their house.

4:14 A family owned business with sister Aleisha also involved with the marketing and business management, and how that plays out in the culture of the franchise

6:50 Entry costs and how the business has built its offer around a low entry cost

7:53 The spread of vans and servicing on the road and the type of person best-suited to the franchise such as middle management sales people in existing flooring retailers

9:18 The key factor that customer enquiries result in higher conversion on the spot as getting an appointment in to a home is clearly a more qualified prospect of purchasing

10:53 Beare Central the company's sophisticated yet simple management system for the business.

13:56 The learning curve for people using the technology

14:54 The full-service nature in support of franchise partners with marketing done for you, accounts done for you and more.

17:03 Campaigns and activities when franchise partners and staff start into particular regions and how this is executed.

Podcast Produced by:  www.magneticbusinessmedia.com.au

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

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Franchise owner journey: From mechanic to IT, mortgage broker and senior business analyst and trainer, Steve Bowe says he was far from being a handyman when he bought his Hire A Hubby franchise in Nowra, NSW.

And in even more of a twist - he was certain he didn't want a franchise after being made redundant from his last corporate role!

he went to an information night in Sydney after seeing an advertisement for the business keep popping up in front of him. He went there that night to make sure he can 'rule out' the business from his search for something where he can be his own boss and control his life more.

10+years later, and as an Enterprise level sized business within the network, Steve is a great story of trying many different careers until he later settled so well into a business of his own...

:36 - What an Enterprise level franchise owner is in Hire A Hubby

1:16 - Running a husband and wife business and how it all works

1:45 - Not a handyman history at all, Steve's background as a fully qualified motor mechanics and then into IT and computing

3:22 - Out of IT and into mortgage broking then traveling around Australia

4:41 - Moved to Nowra with a family then into IT training with Corporates ending with a retrenchment in 2012

5:43 - Wanted to stay in Nowra so started looking for a business - anything where Steve is running his own business

6:54 - Why Steve was definitely NOT wanting a franchise at first 

8:16 - Process of finding Hire A Hubby and the action he took attending an information night to 'rule out' the business

10:06 - How one franchise partners approach and lifestyle very much resonated with Steve

10:53 - What training was like for a 'non-handyman' and the initial growth and marketing of the business

12:26 - How the business is split into 4 streams to future-proof the business

14:10 - Steve's role on a day to day basis as he is now 'off the tools'

15:47 - Acquiring another business for growth and purchasing it for a value that was less than the contract work the business had in place

18:04 - How Steve is building his client base in becoming an 'Enterprise' level franchise in the system

19:16 - The difference between being a regional compared to metropolitan franchise partner

20:31 - Plans for the future

Podcast Produced by: www.magneticbusinessmedia.com.au

Franchise Stories and Knowledge Base (our other website):

www.franchisebuyer.com.au

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