Franchise News – Issue 3#1

This article appeared in Issue 3#1 (November/December 2008) of Business Franchise Australia & New Zealand

MYOB EXCELLENCE IN FRANCHISING AWARDS

Organised by the Franchise Council of Australia (FCA), the MYOB Excellence in Franchising Awards acknowledge the outstanding achievements of hard working individuals and organisations in the growth and development of their businesses and their contribution towards franchising in Australia.

At recent events held in Melbourne, Sydney and Brisbane, the following regional winners were announced.

VIC/TAS

• Franchisee of the Year – Mark Maumill of Banjos Corporation (multi-unit franchisee owns 8 stores).
• Franchise Woman of the Year – Deb Shugg, CEO of Award Group.
• Emerging Franchise System of the Year – Jason Smith, founder of Back in Motion.

NSW/ACT

• Franchisee of the Year – Tony Zoobi of Hairhouse Warehouse (multi-unit franchisee operating 4 stores).
• Franchise Woman of the Year – Ruth Swan of Price Attack (owns 4 stores with husband Phillip).
• Emerging Franchise System of the Year – Andrew Simmons, Founder and Director of Vision Personal Training.

QLD

• Franchisee of the Year – Colleen and Mark Hart of Frontline Recruitment.
• Franchise Woman of the Year – Lyn Wicks of PoolWerx Corporation.
• Emerging Franchise System of the Year – Mr Rental.

SA

• Franchisee of the Year – Kylie Leopold and Karmen Wakelin of Endota Spa (joint multiunit franchisees).
• Franchise Woman of the Year – Vicki Prout, Director of Franchising Services, Carbon Planet.

WA

• Franchisee of the Year – Bronwyn Butcher of Frontline Recruitment Group (multi-unit franchisee).
• Franchise Woman of the Year – Linda Steele, General Manager of CHOOKS Fresh and Tasty.
• Emerging Franchise System of the Year – CHOOKS Fresh and Tasty.
• Regional winners will go head-to-head with other national category nominations at the MYOB Excellence in Franchising National Gala Dinner on 18 October 2008 in Sydney.

(results not available at time of printing)

OPEN2VIEW – SHOOTING FROM NZ TO AUSTRALIA

Three years after entering the Queensland market, real estate photography franchise Open2view has shot forward to success, expanding to 26 franchises.

Open2view Queensland State Franchisor, Chris Walsh, said the company began in New Zealand in 1999 and was now the most used real estate photography and marketing service in the country.

“Open2view is currently the number one real estate website in New Zealand and there are currently 53 franchisees in the country,” he said.

“With 26 franchisees already in Queensland our goal is to become the leading real estate photography and online marketing service in Queensland.”

Mr Walsh said the company had continued to see an increase in sales growth and expected Queensland would be home to over 50 Open2view franchises by 2010.

“Open2view Queensland started off with one franchisee in 2005. We anticipate substantial growth within Queensland in the next two years and expect our turnover to increase accordingly.”

Mr Walsh said the biggest challenge the company faced in the Queensland marketplace was continuing to educate real estate agents about the value of Open2view’s services.

“Many times it’s only after real estate agents use our services that they realise the impact professional photography and online marketing can have on their property sales.

“Open2view is not just an online property listing service but a professional photography service which real estate agents can take advantage of rather than taking their own shots.”

WORKOUT WORLD SUPPORTS HEALTHY HEARTS

Australia’s leading fitness equipment retailer, Workout World, is proud to announce a national sponsorship agreement with the Heart Foundation. This will help the foundation meet its challenge of improving Australians’ heart health and reducing disability and death from heart, stroke and blood vessel disease.

Workout World is contributing $50,000 towards the Heart Foundation, which will assist the independent charity to fully realise its vision: for Australians to have the best cardiovascular health in the world.

Franchising since 2003, Workout World has 35 outlets and boasts over 25 years of experience in the fitness industry.

Established in Australia in 1959, the Heart Foundation’s research, support, promotions and education have resulted in the life expectancy of Australians to be about ten years longer for men and nine years longer for women.

Workout World Marketing Manager, Mark Garrahy, says the company is proud to support The Heart Foundation, a respected charity that works tirelessly to fund worldclass research into heart disease, supports health professionals and promotes heart health in the wider Australian community.

“Workout World is excited to partner with the Heart Foundation and we look forward to pooling our strengths and fully supporting heart health awareness nationally, educating the public about the importance of exercise and how this contributes towards optimum heart health.”

CAFE2U INTRODUCES GENERAL MANAGER OPERATIONS

Australia’s international franchise success story Cafe2U have introduced a new top level position to the Australian arm to offer support to their franchise network.

Having hit the 100 franchise mark worldwide in February, Cafe2U have experienced a 15% growth rate in the last six months. They have created a new position by introducing Derek Black as General Manager of Operations, part of an overall restructuring of the business.

“Derek has 30 years worth of business and franchise experience so he is a big asset to our operation,” explained Managing Director Andy Simpkin.

“This is a newly created position in response to our recent growth. We want to make sure our franchisees are prospering from day one and this is primarily Derek’s role – to focus on franchisee success and ensure they get our full support.”

Mr Black will manage three franchise development managers in QLD, WA, SA, VIC, NSW and Northern NSW.

“Our whole business has been restructured to give maximum support to each and every franchise; that is the primary reason for these changes. Having Derek on board will help ensure every new franchise hits the ground running,” Mr Simpkin added.

Cafe2U was launched in Sydney in 2000 and is now the largest mobile coffee franchise in the world. Celebrating 115 franchises worldwide, Cafe2U have also taken the UK by storm, with plans to enter the US and South African markets in 2009.

ECOWASH MOBILE DOMINATES AUSTRALIAN BUSINESS AWARDS

Australia’s international success story, waterless carwash franchise ecowash mobile, has scooped the pool in the 2008 Australian Business Awards by winning four categories.

ecowash mobile won the major awards in the Service Excellence, International Trade, Environmental Sustainability and Enterprise categories.

The Australian Business Awards is an independent organisation, which co-ordinates a national awards program recognising success, innovation and ethics across all industry sectors. A diverse panel of business experts and academics make up the judging panel.

“It is an incredible honour to be recognised in so many categories – mind boggling really,” said ecowash mobile Managing Director Jim Cornish.

“We have entered markets in a dozen countries in under two years, which is an achievement that is difficult to match locally. It says a lot about the system we have incorporated that a country like the US has so wholeheartedly embraced us – they are the franchise benchmark. We are very happy about the Service Excellence award because this is the operation’s main strength – customers have been adopting us initially from an environmental standpoint, but remaining customers because of the quality of the work and the convenience.”

Starting out as a two car operation in 2004, ecowash mobile has expanded to over 50 franchises in Australia and 12 countries including the Middle East, Europe and the United States. US representatives for the franchise predict they will have 1000 cars on American roads within two years.

COOKIES AUSTRALIA ASSURES MRS FIELDS’ AUSTRALIAN FRANCHISEES

At the time of printing, Mrs Fields Famous Brands in the US had already received court protection under US chapter 11 bankruptcy laws and had presented the court with a plan that will see them released from bankruptcy protection on the 12th October 2008 as part of their financial restructure. Andrew Benefield, Managing Director of Mrs Fields Australia (Cookies Australia Pty Ltd), insists this does not affect Australian franchises, its stores or employees.

Benefield says Cookies Australia Pty Ltd operates the Mrs Fields franchise network in Australia under licence from Mrs Fields Famous Brands America. He maintains Cookies Australia is an independent entity and will not be affected by the packaged bankruptcy, which will see the US company undergo financial restructuring while still being able to trade.

Benefield insists that all of the Mrs Fields stores in Australia are independent businesses, with no plans for any closures whatsoever. He says it’s to the contrary, with Mrs Fields Australia expanding its network to 50 stores and kiosks, opening 2 new stores and 5 new Cookie Counters in the past 12 months.

“We anticipate minimal impact from events in the USA with no direct financial or operational impact, as the supply chain is independently owned and operated. In the US, a pre-packaged bankruptcy takes between 30-90 days and does not require for assets to be frozen and can be used to restructure a company financially”, said Benefield.

He continued, “Barista style coffee was introduced in Australian operations, due to the demands of consumers. This is not the core component of the American model and should not be linked to the closure of other networks in the US.”

FOODWORKS FUTURISTIC PLANS

Three years in the making, the new $3.5 million FoodWorks’ Yackandandah store has been described as the future of independent retailing.

The new full-service department supermarket in regional Victoria is 900sqm, which is over four times the size of the old adjoining FoodWorks Yackandandah store and features a delicatessen, fresh meat, frozen, dairy, fresh fruit and vegetable, liquor and general merchandise.

FoodWorks Yackandandah now stocks double the products with over 10,000 lines to choose from, so locals will not have to travel long distances outside of town for their weekly grocery shop.

Keynote speakers at the special grand opening day were Mayor Cr Vic Issel, FoodWorks CEO Peter Noble and FoodWorks Yackandandah store owners Nick and Karen Cook.

Noble spoke to attendees, “You’ll soon see that FoodWorks stores are very different from the corporate chain supermarket alternatives. FoodWorks retailers offer quality local products, they are quick to stock their valued customers’ favourite unique items upon request, and they personalise their range to suit their local communities’ demographic characteristics.

“Nick and Karen Cook really do personify our brand. You just need to have a quick look back at their retail journey in life to see they are exemplary models of FoodWorks retailers.”

The new FoodWorks Yackandandah features a galvanised roof with apex in line with other traditional High St buildings. Employees have increased from eight to 35 full-time, part-time and casual workers.

YOGEN FRUZ – PLANNING TO COOL QUEENSLAND

Yogen Fruz, a frozen yogurt chain with 1,100 stores in over 20 countries, recently announced a development agreement with Orbiz Corporation Pty Ltd. This will expand the franchise by 30 locations into Australia over the span of the agreement, beginning with a plan to open a store in Brisbane during December. Six more projected openings are expected over the next 6-12 months.

Orbiz will bring its successful retailing experience, multi business management skill, and strong food background into this relationship, which Yogen Fruz expects to be very successful.

“Australia is a continent we’ve been hoping to expand to for a few years, but we hadn’t found the right franchisee for the job until we began discussions with Orbiz Corporation Pty Ltd”, said Aaron Serruya, co-founder of Yogen Fruz.

“The team at Orbiz brings a strong background, as well as an unparalleled business passion and the belief that this brand can thrive under their leadership.”

Jenelle Moloney, Managing Director of Orbiz Corporation Pty Ltd commented, “Yogen Fruz’s growth over the past year is proof enough that the company offers a great product and quality service and promotes healthy living.”

Yogen Fruz’s signature create-your-own yogurt/fruit blends are made from a combination of low-fat, non-fat or nosugar-added frozen yogurt and any of 16 varieties of flash-frozen fresh fruit, mixed in the company’s proprietary machines while customers watch.

Yogen Fruz pioneered the frozen yogurt category in Canada when it opened its first store in 1986.

CHOOKS MULTI-FRANCHISEE AWARDED WA SMALL BUSINESS CHAMPION

CHOOKS fresh & tasty multi-franchisee Marcus Delany is flying high with pride after his CHOOKS Canning Vale store was named ‘Champion Gourmet Food/Takeaway Store’ at the recent 2008 Western Australia Small Business Champion Awards.

The CHOOKS Canning Vale store was recognised as a state leader, excelling in aspects such as marketing, quality of customer service and products, community support, business achievements, staff initiatives and business strategies.

Mr Delany employs around 20 local team members from the Canning Vale community. He was surprised to be announced the winner of the Gourmet Food/Takeaway Store category.

“I had no clue I was going to win, but I felt proud and honoured to be recognised by my peers and fellow businessmen and women,” he said.

“I thank CHOOKS’ founder and Chief Chook Steve Hansen and the CHOOKS Encouragement Centre team for their ongoing recognition, support and encouragement, and for continually challenging me to be better at what I do.

“My award win can partly be attributed to the great brand marketing initiatives of the CHOOKS Encouragement Centre which I contribute financially to, such as in-store signage, radio, television and print advertising, public relations, direct-mail specials, local area marketing initiatives and the CHOOKS Supporters Card which is a community sponsorship program.”

CHOOKS fresh & tasty Chief Chook Steve Hansen said Marcus was a loyal franchisee who was commitment to his employees, product and community.

7-ELEVEN APPOINTS NEW AGENCY PARTNERS

Australia’s leading choice in convenience, 7-Eleven, has appointed several new agency partners following a review of the business’ marketing requirements.

Naked Communications will be responsible for communications planning and, with OMD, will manage 7-Eleven’s media buying requirements. This team replaces Starcom, which has held the 7-Eleven media business since April 2005.

Haystac will manage consumer PR to help further leverage brand communications activities and create a more positive 7-Eleven experience, including flagship brands munch and Slurpee®. Edelman will remain the corporate PR agency of choice.

Leo Burnett, who was appointed in April 2005, will continue as 7-Eleven’s creative agency.

Tracy Hammon, 7-Eleven’s Brand and Communications Manager, commented: “We’re looking forward to working closely with Leo Burnett and our new partners to continue delivering quality and engaging creative campaigns and to bringing to market some new products and categories that make shopping at 7-Eleven even more convenient.”

7-Eleven is a Melbourne-based, Australian, family owned company operating 366 convenience stores across the Australian eastern seaboard; all but one of the stores is franchised and half have a fuel offer. Total sales revenue is approx. $1.4 billion. The 7-Eleven brand is operated under licence from 7-Eleven Inc, the parent brand based in the USA.