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Franchise News - Issue 1#1

Written by Business Franchise Magazine

This article appeared in Issue 1#1 (Nov/Dec 2006)
of Business Franchise Australia & New Zealand

AT HOME IN AUSTRALIA

An estimated 21% of Australia’s population will be 65 or older by 2033 and the world’s largest non-medical aged-care franchise has launched in Australia to help provide an affordable solution for seniors who need assistance at home.

Brisbane-based owner and Australian master franchisee, Martin Warner, says the Home Instead Senior Care business model fills a gap in Australia’s aged care market. “With Australian government funded community care services stretched to its limits, private alternatives are the most effective way to ensure seniors receive the care they choose at an affordable price,’ he said.

Warner has developed a business model suited specifically to Australia which offers in-home care by providing companionship, personal care, assistance with meal preparation, housework, shopping, and transport services. Caregivers complete training that includes case studies, information about senior illnesses, stimulating activities, nutritional recipes, and tips for coping with stress.

Home Instead Senior Care has over 650 offi ces throughout the US, UK, Japan, Portugal, Canada, Ireland, Spain, Taiwan and New Zealand.

AUSSIE HOME LOANS

Aussie Home Loans has been named best mortgage broker in the 2006 Australian Banking and Finance Magazine awards.

The awards, now in their 16th year, are sponsored by Optus and are Australia’s only peer reviewed awards in the banking and finance industry. Over 400 people attended the cocktail reception at the Westin Hotel in Sydney to celebrate winners in 14 categories.

“We are very proud to have our commitment to being Australia’s leading home loan provider recognised in this way,” said Founder and Managing Director of the Aussie Group, Mr John Symond. “The unrivalled expertise of our mortgage advisors and Mortgage Explorer™, Aussie’s exclusive, proprietary mortgage selection software, which compares and ranks hundreds of loan products against our customers’ specifi c needs and preferences, are cornerstones to the service we provide.”

Aussie Home Loans has a team of nearly 600 mortgage advisers and their home loan book is worth close to $20 billion with 220,000 home loan customers and over 100,000 Aussie Mastercard holders.

OVENU DOWN UNDER

The UK oven cleaning and valeting service, Ovenu, is offering 12 franchise opportunities across Australia.

Master Franchisees for the Australian operation, Bernard and Janet Bannon, based in Perth, believe there is more demand for the service in Australia than the UK where there is already over 100 franchises in operation.

Managing director, Rik Hellewell, founded Ovenu in 1994 and set up the franchise in 1999. “This is a fantastic opportunity in a country where its people are very protective of their leisure time. The service industry thrives on undertaking jobs that householders would prefer other people to do. Ovenu’s professional valeting service is a perfect fi t for that category,” he said.

Since 1994 Ovenu has cleaned over one million ovens and barbecues. They will be Australia’s fi rst dedicated oven valeting franchise operation.

BRUMBY’S GO EAST

The global expansion of Brumby’s Bakeries has advanced with the announcement that stores will soon be opening across the Middle East.

A 10-year master franchise agreement has been finalised with Middle East consortium IIC Group covering Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, Iran and the United Arab Emirates.

Managing Director of Brumby’s, Mr Michael Sherlock, said he expects the first stores to open in the 2006-7 financial year. “It is clear that there is a tremendous potential in the Middle East and we expect to see considerable store growth during the next decade,” he said.

“Populations in the Middle East are young, with two thirds of the population under 25. There is increasing demand for convenience foods.”

Brumby’s Bakeries currently has 317 stores across Australia and New Zealand and is conducting pre-entry studies with potential master franchisees in Thailand, Malaysia, Singapore, China, Fiji and South Africa.

BLACK-TIE

The Franchise Council of Australia has announced the finalists for the 2006 Franchisor of the Year Award and last year’s winner, Gloria Jean’s Coffees, is in the running again this year.

The finalists are Cartridge World, Clark Rubber, Gloria Jean’s Coffees, Price Attack, Quest Apartments, 7 Eleven, and Subway.

“All of this year’s finalists have used best practice methodology in franchising that we at the FCA encourage and embrace. These are successful franchise systems which set a marvellous example for the sector,” said FCA CEO Mr Richard Evans.

The Winner will be announced at the PricewaterhouseCoopers Excellence in Franchising Awards, a black-tie event held as part of the National Franchise and Small Business Convention on the Gold Coast on October 24.

Other awards on the night will be Franchisee of the Year, Franchise Woman of the Year, and Franchise Media Campaign of the Year.

MINISTER CONCERNED

The Australian government is reviewing the disclosures section of the Franchising Code of Conduct to ensure it is enabling businesses at both ends of the franchising system to operate confidently.

“Over the past few months, a number of concerns have been raised regarding the adequacy of the disclosures section of the Franchising Code,” said Fran Bailey, Minister for Small business and Tourism. “Today franchising is an $80 billion industry that employs more than 600,000 Australians. As Minister, my goal is to make franchising even stronger tomorrow than it is today.”

The code was introduced in 1998 and carries the force of law. Part 2 sets out the requirements for the disclosure document that must be produced by the franchisor to assist prospective franchisees in making an informed decision about the business.

A small committee led by Mr Graeme Matthews, National Managing Partner, KPMG Middle Market Advisory will review the current operation of part 2 of the code and identify possible amendments that could improve the disclosure provisions.

QUEST HITS 100

Quest Serviced Apartments has opened their 100th property in Melbourne.

The Moonee Valley property, close to the business district and race course, contains 61 serviced apartments aimed primarily at business travellers.

“Our Moonee Valley property remains true to the Quest business philosophy of creating properties where demand dicates,” said Quest Chairman and founder Mr Paul Constantinou.

“Our property locations are chosen for their close proximity to business centres, restaurants, nightlife and shopping. We feel it’s important that guests are close to where they need to conduct their business, but that they can have lifestyle options too.”

Since 1988, Quest has continued to add properties to its portfolio with a chain of franchise serviced apartments across Australia, New Zealand and Fiji. They currently have properties under development in Brisbane, Sydney and the Hunter Valley and will be focussing on expansion in New South Wales and Queensland over the next five years.

MORTGAGE HOUSE EXPANDING

Mortgage House has added to their 23 existing branches with the opening of a further 11 branches, and more are on the way.

Merrylands, Batemans Bay and Beverly Hills have opened in NSW, Bentleigh, Chelsea, Euroa, Kew, Pakenham and Rosebud in VIC, and Southport in QLD. Six more branches will be opening soon.

Managing Director, Ken Sayer, established Mortgage House in 1998. “As an organisation we are constantly looking to ‘raise the bar’, this is another opportunity to do exactly that. By increasing our branch presence, we can further increase the level of service that each client receives,” he said.

Sayer believes the flexible Mortgage House business model has contributed to their success. Potential branch partners are able to control the level of their investment and overheads by having the option to share an office with another business.

Mortgage House currently has $4 billion in funds under management.

AUSSIE PET MOBILE HITS UK

Aussie Pet Mobile has signed a master franchise deal for Ireland and the UK.

This is the tenth international market agreement for the franchise, which plans to be in 20 countries by the end of 2010. Founded in Sydney in 1996 by Ian Moses and Vivienne McIntosh, Aussie Pet Mobile already has franchises across America and Asia.

“We have added on 10 international master franchises in the last three years and are now focusing on becoming a global brand,” said Moses who believes their proven business model in a virtually recession-proof industry makes Aussie Pet Mobile an ideal opportunity for potential business owners.

The 15-step pet-pampering service provided by Aussie Pet Mobile includes shampoo, massage, and brushing and is performed in custom designed vehicles or climate controlled pet spas. Franchisees have no retail real estate or build-out costs allowing them to start their business the day they receive their vehicles.