Franchise News – Issue 1#6

This article appeared in Issue 1#6 (Sept/Oct 2007) of Business Franchise Australia & New Zealand 

NEW FSBO FRANCHISE FOR GEELONG

There is now an Australian Private Realty Franchise servicing Geelong and Districts, providing home and business owners with ready access to the advantages of a successful For Sale By Owner concept. Geelong Franchisee, Owen Spackman says that when he found APR, he knew it was what he had been looking for. “I had been looking for a business opportunity for some time and this was it”. “I enjoy the freedom and flexibility the business offers, and in my opinion, it has so much potential.” It is a great concept, professionally packaged and my research indicated that FSBO companies are well established overseas –so being able to find one here in Australia that has been around since 1993 was great reassurance for me.” “There are very few overheads, and the business offers great lifestyle benefits. The flexibility is tremendous and I am able to structure my work around my personal life.”

Owen has always had an interest in property, and saw APR as an alternative that home owners ought to have access to. “I’ve bought and sold properties and like many others, found the commissions and associated costs hard to justify.” “I was impressed by the friendly, yet pratical approach that APR offered and felt that other people would be too.” “The concept made so much sense to me. Of course people can sell their own properties, and after all, owners know the properties best. With all the tools that we offer – it’s so easy for them.”

BUSH ESSENTIALS BEGINS FRANCHISING

Bush Essentials produces a traditionally Australian range of skincare products. They had a turnover in excess of $1 million in their first year of trading and are now looking for franchisees to expand the business further.

“Our aim at Bush Essentials is to provide quality natural products developed using pure essential oils and nature’s own ingredients. Bush Essentials only use Australian natural ingredients of the highest quality, we do not use any synthetic ingredients,” says founder Pauline Clarke.

“Bush Essentials is offering a complete franchise package and a comprehensive support system that includes stock, branding, PR, marketing, training and ongoing support and assistance,” says franchise manager, Tina Dedekind. “The franchisee and franchisor will work together to create an even better national brand.”

Bush Essentials was founded in May 2005 when Pauline started manufacturing her body scrub in a converted garage on the Sunshine Coast. Her products are now sold in every state and around the world including England, Scotland, New Zealand and Sweden.

THE COFFEE CLUB TRAINS 1000TH BARISTA

The Coffee Club has trained its 1000th barista at The Coffee Academy – coordinated by the William Angliss Institute of TAFE.

The Coffee Club’s national barista trainer, Anne Cooper, teaches students essential techniques for making excellent espresso, milk texturing and how to correctly use and maintain the espresso machine and grinder. The accredited course aims to produce graduates that meet high industry standards and to provide qualified barista for The Coffee Club’s franchises across Australia.

Anne recently won the title of Queensland’s best barista at the Queensland Barista Championships for the second consecutive year and hopes her passion for excellence has rubbed off on the barista she has trained.

“It’s been wonderful to play such an inspirational role in The Coffee Club and pass on my skills. Customers have reported outstanding improvements in the standard and overall taste of the coffee provided by stores which have undergone The Coffee Club Academy barista training,” said Anne.

EAGLE BOYS WINS FRANCHISE CATEGORY AT RETAIL AWARDS

Eagle Boys Pizza received the Bank of Queensland franchise award at the 2007 National Retail Association Rewards for Excellence sponsored by American Express.

Managing director, Todd Clayton, said the company had experienced considerable growth with over 180 franchises currently operating, some from stores as small as six square metres and drive-thrus – a concept pioneered and developed by Eagle Boys.

“I am delighted that Eagle Boys has won this award,” said Todd. “To receive recognition at such a prestigious award ceremony and on a national scale proves that our passion and drive to succeed in such a competitive market is truly paying off.”

The introduction of EAGLEEXPRESS™ technology has revolutionised the traditional waiting time of take-away pizza, says Todd, cutting customer waiting time to only two minutes.

Some Eagle Boys stores have achieved sales growth of 14 percent and the company is generating a turnover in excess of $100 million.

JUMPING J-JAYS GOES TO THE US

Jumping J-Jays is moving its headquarters to the US where it plans to expand its international franchise network from 60 to 300 in three years.

Director and founder John Newton has taken the headquarters for the business to Dallas, Texas with plans to dramatically increase the company’s presence worldwide. Newton believes that by personally relocating and taking the US market under his wing, it will bring continued growth and further his goal to increase inflatable amusement safety throughout the industry.

All Jumping J-Jays castles have walls and front safety features to stop kids falling out, permanent UV shade cover and are made from fire retardant materials.

Jumping J-Jays originated in Sydney in 1997 and began franchising in 2000. They now claim the largest selection of themed castles in the world and the Financial Review rated them as one of the “Super 7” franchise systems in January 2007.

ALL SET FOR A KNOCKOUT IN AUSTRALIA

Knockouts Haircuts for Men is a booming US franchise where men can watch television and drink beer in a boxing-themed salon while a scantily dressed hairdresser cuts their hair. The franchise aims to be operating in Australia this year.

The hairdressers wear shorts that cover everything they need to cover and tight t-shirts. CEO and founder Tom Friday says they are not really a Hooters-style outfit. “There is nothing hanging out or inappropriate and the girls like the shorts. They feel attractive in them. We’re not really emphasising body parts at all like Hooters does,” he said. “We’re just a fun salon where guys can get their hair cut by girls who are attractive.”

The first Knockouts store was opened in Texas in 2003. Friday says he was sick of female-friendly salons just serving wine and walk-in soulless discount hairdressers giving bad haircuts.

About 50% of Knockouts clients are white-collar workers.“We’re not too high-end so folks aren’t afraid to come in,” Friday said.

LORIGOLD SUNSAILS TAKES UP FRANCHISING

Lorigold Sunsails has started franchising with three models: a sales franchise, a construction franchise and an installation franchise.

“We see franchising as the way of the future,” says managing director, John Tramier. “Our products are technically superior to our competitors which enables us to offer great guarantees and value for money pricing. Our franchise owners will benefit from our systems, quality and training to deliver a great result for their customers and growth for their own business.”

A franchise can be established from around $40,000 to $60,000 plus GST. This covers the franchise fee, training fee, equipment, uniforms, software and opening stock. It also includes vehicle fit-out and sign-writing.

Grant Garraway of The Franchise Shop, assisting Lorigold, says, “Lorigold Sunsails is a unique business. It has been in business for many years, is highly regarded within the industry and generates a great deal of referral and repeat business.”

RELOAD GOES GLOBAL

New Zealand based Reload salad and juice bars have opened in Glasgow and founder Conrad van de Klundert hopes to have 100 outlets open across the UK in the coming year.

Reload offers a range of contemporary salads, sizzling sandwiches, wraps and juices and Conrad says after trying a Get Stoned, Razzleberry, Helly Berry or Mint Eastwood smoothie there is no going back to unhealthy food.

“People can order a salad and watch it being made for them and know that it will be ready within two minutes. We make all our product in front of the customer and this is what people want to see. There is nothing being prepared out the back. Even our soups are all made on site,” says Conrad.

The franchise has been operating for four years. There are four stores operating in New Zealand, one in Singapore, and many more opening soon. Reload is currently looking to sell master franchise rights in Australia.

MOVING FORWARD

Solomons Flooring is Australia’s most respected retailer of floorcoverings.

Solomons has repositioned it’s brand and image, highlighting the Solomons name and range of products to reflect better quality, greater value for money and more in tune with today’s fashion and home improvement trends. To reinforce the brand’s repositioning in the market, Solomons employed the services of TV presenter Suzie Wilks to be the face of Solomons Flooring. Suzie’s media profile, her wide fan base and her close association with home improvements make her the ideal medium to accelerate the value of a Solomons franchise.

The Solomons network is on the move. The group has targeted an additional 8 strategically located new retail franchised outlets for the calendar year 2007 and another 10 to open in 2008. Our expansion program is deliberately conservative to ensure we only take on the right franchisee in the right location.

WIZARD STARTS FRANCHISING

Wizard Home Loans has begun operating as a franchise as the company sets its sights on expansion across Australia and New Zealand.

Already 250 strong, Wizard hopes to boost its presence in Queensland, Victoria, South Australia and Western Australia.

According to director of sales and distribution, Chris Canty, the franchise model is attractive because the customer has direct contact with the franchise owner; they do not have to deal with a broker. Wizard lends money mainly to home buyers but has other financial products including car and personal finance.

“Since Wizard’s inception, the strength of our brand and distribution model has underpinned our growth,” says company founder and chairman, Mark Bouris. “We plan to grow the network by 15 percent in 2007, with a view to increasing the network to 300 branches.”

New franchises cost $30,000 for an initial franchise term of five years, with a further five year term available.

ZARRAFFA’S COFFEE GROWS THROUGHOUT QLD

Zarraffa’s Coffee is a specialty coffee retailer, wholesaler and roaster that generated $9.8 million in revenue over the last 12 months. Their success throughout Queensland is expanding as Sunshine Coast franchisees Terry and Jeanette Bambury embark on their second franchise store.

“Zarraffa’s is a dynamic company, always striving to improve. We love that Zarraffa’s Coffee’s raw product is roasted in Queensland and delivered fresh every week,” said Terry. “Jeanette and I do everything together and work well as a team.”

There are currently 23 Zarraffa’s Coffee stores throughout south east Queensland and Sydney and ten new stores are scheduled to open in 2007.

“Zarraffa is the Arabic word for giraffe… I felt the name epitomised my vision to stand ‘head and shoulders’ above the rest,” says CEO Kenton Campbell. His company guarantees its customers ‘an individually perfect cup of coffee – every time’ and sources its premium beans from around the globe including Guatemala, Colombia, Brazil, Papua New Guinea and Kenya.

BRISBANE AND PERTH LEAD GROWTH

The latest Census data shows that Brisbane and Perth are Australia’s fastest growing capital cities, with Darwin the only city showing a decrease in population.

Brisbane has experienced a 9.6% population increase since the 2001 Census, Perth 9.0%, Melbourne 7.6%, Hobart 5.5%, Canberra 4.6%, Sydney 4.3% and Adelaide 3.7%. The total number of people in Australia topped 20 million and typical individual incomes have risen about 24%.

According to Peter Buckingham, managing director of Spectrum Analysis Australia, the growth in Brisbane and Perth is a significant issue for franchisees and franchisors alike. “The surprising information to come from Census 2006 is that Victoria has grown by 6.9% over the five year period, the same percentage as has occurred in Western Australia, yet both states are behind Queensland which showed 8.9% growth in the corresponding period.”

The Census data is accessible from the Australian Bureau of Statistics and it will be added to again in October.