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Franchise News - Issue 3#2

Written by Business Franchise Magazine

This article appeared in Issue 3#2 (January/February 2009)

of Business Franchise Australia & New Zealand

AUSTRALIA & NZ FRANCHISING AWARDS – 2008 WINNERS

Business Franchise Magazine congratulates the following national award winners of the MYOB Excellence in Franchising Awards (Australia) and the Westpac New Zealand Franchise Awards, announced in October and November 2008 respectively.

AUSTRALIA (FCA/MYOB AWARDS)

Banjo’s Bakehouses
7-Eleven (2)
ecowash mobile
Hotondo Homes
Mr Rental
Bakers Delight
Gloria Jean’s Coffees
Debb Shugg of Award Group
The Coffee Club Group
Pacnet (supplier).

NEW ZEALAND (FANZ/WESTPAC AWARDS)

Quest Newmarket Hotel(2)
Xpresso Delight
Franchize Consultants
Home Instead Senior Care
Fastway Couriers
VIP Home Services
Exceed Maintenance
Paramount Franchise Services (2)
Mr Rental NZ Ltd (Waikato Appliance Rentals Ltd)

Other NZ award sponsors were BDO Spicers, Franchise New Zealand magazine, Franchize Consultants, The Franchise Coach, Snap Printing and Mirage Audio Visual Ltd.

TYREPOWER OPENS 250TH STORE IN AUSTRALIA

Established in Australia in 1977, Tyrepower has grown to be the largest independent tyre retailer in Australasia. When Vic and Margaret Pacito recently opened the doors of their new Tyrepower store in Ipswich, Queensland, it became the 250th Australian store.

“The opening of our 250th store is truly a great occasion,” said John Klein, General Manager, Tyrepower Limited. “When you step back and take a second to think about it, we’ve come along way since 1977.”

Tyrepower is owned entirely by the dealers, as all 250 of them are equal shareholders in the company. This business structure is unique to Tyrepower within Australia’s tyre retail industry and has, on many occasions, been attributed as one of the main factors for the long-term success of the group.

“Tyrepower dealers have the power to influence the future direction of the group and, in turn, their own business. Our business model is designed to foster a culture of group independence, the cornerstone of our success,” said Mr Klein.

“We’re committed to continuing the group’s steady growth pattern and all signs indicate that we will obtain our objective of reaching 300 stores in the foreseeable future,” added Mr Klein.

In Australia, Tyrepower operates in all states and territories, and is also the largest independent retailer in the New Zealand market. There are over 22 Tyrepower stores from the far north of Kaitaia through to Hokitika in the South.

FERNWOOD LAUNCHES GOURMET READY-MEAL RANGE

Fernwood Women’s Health Club has launched a range of fresh, gourmet readymeals called Nosh, for women who find it difficult to balance work, family, exercise and eating balanced healthy meals.

Currently with 78 franchises across Australia, Fernwood has come a long way since the opening of its first club in 1989. The women’s only health club has more than 80,000 members, 2275 employees and an annual turnover of over $89 million.

Founder of Fernwood, Diana Williams, teamed up with a Melbourne gourmet food company and caterer, to design the delicious and nutritious Nosh meals, which are quite different to other pre-packaged meals currently on the Australian market.

The meals are prepared using a vacuumcooking process called ‘sous-vide’ that’s quite popular in Europe. When the Nosh meals are heated in a microwave, the meal is steamed, not ‘nuked’, and does not require stirring to evenly heat through. The dishes can also be frozen, although they last up to 10 days refrigerated.

Diana comments on Nosh, “My philosophy from the start was not to compromise quality for the price. I think that’s what happened with a lot of the frozen meals that are currently on the market.”

Nosh meals are currently available in selected Fernwood clubs and Diana anticipates this will fill the huge void that currently exists in the health and fitness market.

SPUDBAR TRAVELS OVERSEAS – 1ST STOP NEW ZEALAND

Melbourne-based baked potato expert Spudbar is going international. The first overseas franchise opened at the end of November 2008 in Christchurch, New Zealand.

In addition, Spudbar has been launched in Western Australia, with the first store opening in Joondalup.

“2008 has been a great year for us”, said Kirsten Roberts, Spudbar CEO, “and we have continued to build a loyal following amongst people looking for great tasting, healthy fast food options”.

Transforming the humble spud into a tasty, nutritious and value for money meal, Spudbar also offers fresh salads and a selection of home style soups. Founded in 2000 and opening its first franchise in 2004, Spudbar was borne out of a lack of healthy, great tasting food that was quick, convenient, and value for money.

“Spudbar is all about being tasty, filling and nutritious”, says Roberts. “There is no oil used in the cooking, the potatoes are dry baked and the sour cream is light.”

The timing is perfect for Spudbar to take on its first international market, and the long term goal is to not only have Spudbar in every city throughout New Zealand, but to take it to other international markets as well. Over the next 12 months, Spudbar plans to open another 10 stores led by Fitzroy in Melbourne opening in early January 2009.

PACK & SEND PLACED IN TOP 3 FRANCHISES IN THE WORLD!

Australia’s leading retail freight and logistics company, Pack & Send was awarded equal runner up at the 2008 International Franchisor of the Year Award, held in Singapore on 17 October 2008.

The award recognises the top three outstanding franchisors for their success and performance, establishing a global benchmark in franchising.

The International Franchisor of the Year Award is the most prestigious franchising award globally. To gain a placement in the award, Pack & Send triumphed over the most well-known and largest franchise systems in the world.

Each year the Franchising and Licensing Association, Singapore (FLA) invites a single nomination from each of the 36 member countries of the World Franchise Council. Currently in its fourth year, the 2008 International Franchisor of the Year Award had a record number of nominees. The Franchise Council of Australia nominated Pack & Send as a stand-out franchise to represent Australia.

Michael Paul, Pack & Send founder and CEO, said: “Pack & Send is honoured to have earned second place, it is such a privilege when we are up against the world’s best franchises. It is a great opportunity to showcase our award winning business system and the ‘no limits’ services of our franchisees to international markets.”

The judging committee evaluated finalists on their business strategy, franchising system, marketing, franchise relations and financial performance. The winner of the International Franchise Award was Chinese based fast food franchise, Inner Mongolia Little-Sheep Catering Chain.

SPAR EXPRESS TWIN WATERS SCOOPS REGION’S BUSINESS AWARD

SPAR Express Twin Waters owners David and Leona Clanahan are celebrating after winning one of the Sunshine Coast’s prestigious business awards on 8 November 2008.

Winning the Micro Retail Award 2008 in the Sunshine Coast Excellence in Business Awards, Leona said she and David are delighted with the win, especially given they were nominated by their own customers.

“We’ve been completely accepted into the community since we relaunched as SPAR Express in March 2007. We strive to give our customers the personal touch in all that we do, which has allowed us to build up a lot of repeat custom,” said Leona.

She continues, “The level of support we’ve received right from the beginning is outstanding and not what you would expect from the world’s largest supermarket chain. It feels more like a family.

The SPAR brand is a global success boasting around 15,160 stores in 34 countries. SPAR is an acronym that means “Save” in Europe and last year, SPAR stores, all 100 percent locally owned, injected almost $300 million into Australia’s retail economy. With franchise opportunities throughout the country, SPAR is the fastest growing independent supermarket brand in Australia and winner of Global Convenience Format of the Year in 2007.

SPAR Express Twin Waters is one of 78 SPAR stores in Australia. Worldwide, the SPAR group serves millions of customers every day and supports local communities all over the world by sponsoring local sporting clubs, charities and community events.

BURGER VETERAN JOINS BURGERFUEL WORLDWIDE

With the appointment of its new director, Alan Dunn, BurgerFuel Worldwide will access his 30+ years of international and Australasian business experience with the global food giant, McDonald’s.

Alan Dunn says he is excited by the potential he sees in BurgerFuel and the opportunities and challenges it faces in the global gourmet burger market.

“This is about the opportunity to help internationalise a successful Kiwi hamburger brand, which in my view has the potential to be a global success. I’m looking forward to making a contribution from my many years of hands-on experience with the practical and strategic demands of growing an international fast-food brand.”

Alan Dunn brings a wide range of international skills to BurgerFuel and will work closely in areas of international franchising, operating systems, supply chain management and the refining of store formats for international roll-out.

Chairman of BurgerFuel, Peter Brook, says, “It is particularly exciting when a person of his experience identifies the global potential and uniqueness of BurgerFuel and endorses it by committing to the challenges required for us to scale-up our operations and take our concept to the world.”

BurgerFuel now has 25 stores operating in New Zealand, as well as two in Sydney, Australia. It recently launched its new flagship store on the lakefront in Taupo and has also just opened in Johnsonville. More stores are due to open in the coming months, including Windsor Park in Auckland.

LATEST FRANCHISING REPORT RELEASED

According to the results of Griffith University’s Franchise Australia 2008 Survey, the franchising sector has continued its strong growth in the past two years.

The study is the premier national independent study of the sector and the cost of Griffith University’s work is sponsored by the Franchise Council of Australia (FCA). The results were launched in October 2008 at the FCA’s National Franchise Convention in Sydney.

Key findings from the survey include:

total sales turnover for the franchising sector was estimated to be $130 billion;
an impressive continued 14.6% growth rate in franchise systems from 2006 to mid-2008;
growth rate of franchise units is 15.4% up again from the 14.6% from 2004 to 2006;
business format franchised units represent some 3.7% of all small businesses in Australia;
disputes in the franchise sector have declined, with franchisees in dispute estimated at only 2%;
evidence of stability in the sector, with 93% of franchising units remaining under the same ownership.

FCA Executive Director, Steve Wright commented, “The survey findings are a sign of the confidence in the franchising sector at a time when global and domestic economic indicators are in decline.

“These statistics illustrate business confidence in the franchising sector and the robust nature of the franchising model, which has a history of performing relatively well compared to the broader small business sector even when economic indicators are pointing down.”

WENDY’S GETS A MAKEOVER

With 300 stores across Australia and New Zealand, Wendy’s has grown a successful franchise brand, which has resulted in ongoing growth for almost 30 years. However, the Wendy’s of today is very different from the franchise’s first store in Adelaide in 1979 - and it’s about to undergo another transformation.

“The Wendy’s brand personality is absolutely central to everything we do and we’re constantly reviewing this to ensure we remain relevant to consumers,” Nicola Milne, Wendy’s CEO said.

“Just because it’s one of the best recognised brands in the marketplace does not mean that it’s impervious to challenges. And that’s why we committed to a major revitalisation of the Wendy’s brand.”

Working with Sydney-based retail design agency Juicy Design and advertising agency Clemenger BBDO Adelaide, Wendy’s undertook a thorough review of its brand personality and the way the brand was interacting with customers.

Nothing was sacrosanct – everything was up for discussion, from the brand personality and its communications right through to store design, staff uniforms and the famous pink logo.

While continual product development has been a cornerstone of Wendy’s success, the brand revitalisation will also ensure the products and their packaging reflect this new position.

The brand revitalisation process hasn’t just been about ensuring that the brand appeals to its customers. It is also fundamental to Wendy’s continued success and aggressive growth strategies.

AUSTRALIA’S TOP 10 FRANCHISORS REVEALED

topfranchise.com.au has been compiled using the results of 10 THOUSAND FEET’s annual Franchisee Satisfaction Survey. The comprehensive study of the franchise industry involved over 40 in-depth interviews with franchisees, surveying responses from over 900 franchisees across more than 50 franchise systems in Australia.

In addition to overall ratings, it also rates systems across seven key areas, identified by 10 THOUSAND FEET as having the most impact on franchisee satisfaction.

The key criteria taken into account by topfranchise.com.au included:

Renewal - intention of franchisees to renew their agreement beyond the current term.

Recommendation - willingness to recommend a franchise to friends and colleagues.

Rewards - level of financial and social rewards franchisees feel they receive.

Lifestyle - whether franchisees are satisfied with the lifestyle their franchise affords them.

Passion - how passionate franchisees are about the brand, product or service they offer.

Support - examining levels of support offered by the franchisor.

Opportunities - whether franchisees feel there are opportunities to expand their business within the system.

The following are the overall top 10 rankings: