Franchise News – Issue 3#3
This article appeared in Issue 3#3 (March/April 2009) of Business Franchise Australia & New Zealand
FCA APPOINTS NEW CHAIR TO THE BOARD
The Board of the Franchise Council of Australia (FCA) has elected George Yammouni as its new Chairman.
Founder of Melbourne-based nationwide franchise Bathroom Werx, Mr Yammouni was appointed Chairman of the FCA for the next two years, and takes the place of retiring Chairman John O’Brien (CEO of PoolWerx).
A member of the FCA Board for the past six years and deputy chair for the past two, Mr Yammouni is a former president of the FCA Victorian chapter. He said he was honoured to have been elected Chairman, especially at this time.
“2009 is going to be a very important year for franchising, and a very difficult one for small business generally as we go into some of the most difficult economic circumstances in living memory”, he said.
“We need to do our utmost to ensure there are no new obstacles thrown up against small business in this challenging period, and especially for franchising, where we have the strictest operating rules of anywhere in the world.”
For the first time, the Board has also elected two deputy chairs – Franchisee representative Tony Melhem and Women in Franchising representative Diana Williams.
BOOST CHIEF WINS BUSINESS WOMAN AWARD
Boost Juice Bars Chief Operating Officer Jacinta Caithness was named the 2008 Telstra Young Business Woman of the Year at an award ceremony last December at Crown Palladium.
Jacinta Caithness is the 29 year-old CEOInternational for Boost Juice Bars and Chief Operating Officer (COO) of Boost Investment Group.
As one of the first employees of Boost Juice Bars, Jacinta has grown her own skill with the development of the business and enjoyed great mentoring from Boost Juice founder Janine Allis.
“This is the absolute highlight of my career. I was honoured to simply be a finalist in this category and rubbing shoulders with the calibre of women who won the state awards throughout the rest of Australia”, Jacinta said.
“I’m really lucky that I love my job and I get such a kick out of being part of our brand’s growth throughout the world, so receiving this recognition now is the ultimate icing on the cake!”
As CEO-International, Jacinta’s focus is driving the international expansion of the Boost Juice brand, generating revenue through the appointment of international master franchisees and ongoing royalty streams.
Jacinta was instrumental in completing the recently signed master franchise agreement in China, as part of Boost’s growth strategy into Asia.
FREE FRANCHISES – FIRST MELBOURNE, NOW CANBERRA!
Having already granted the industry’s first free franchise valued at over $50,000, Jumping J-Jays Castles and Slides is offering another.
Amit and Margaret Dabas from Melbourne beat off some good competition to come out tops in the selection process. “I could not believe the opportunity that has been presented to me”, says Amit. “We are overwhelmed and delighted to have been chosen.”
“We are extremely pleased with this result”, said John Newton, founder and franchisor of the award-winning franchise system. “Given the demand for our product throughout the Melbourne market we were looking for people with a strong work ethic. We welcome this hard working, lucky couple into Melbourne with open arms – and now it’s time to get down to business”.
“It was their attitude towards working for themselves, and willingness to go the extra mile that put their application head and shoulders above the rest”, said Dave Beattie, General Manager.
With an overwhelming response to the Melbourne offer, Jumping J-Jays is offering another free franchise, this time in Canberra.
The right candidate/s would need to live in Canberra, have a six cylinder family car, a home computer with internet access, and the desire and attitude to run their own business four days a week, including weekends.
To apply, visit www.partycastles.com.au, click on the franchising links and fill in the online evaluation before 30 April 2009.
MUFFIN BREAK CELEBRATES 20 YEARS
One of Australia’s largest food franchises, Muffin Break turns 20 this year. Founded in 1989, the first Muffin Break store opened in Coolangatta, Queensland.
Muffin Break has grown rapidly over the past 20 years and currently has over 172 stores in Australia, averaging at just over eight new stores each year. Muffin Break has also experienced international growth; there are currently 36 franchises in New Zealand, 25 in the United Kingdom and two in Dubai.
“As an Australian-owned business the 20 year anniversary is a real achievement for us. Reaching this milestone is recognition of all the hard work of our staff and franchisees in building Muffin Break to where it is now”, says Serge Infanti, Managing Director of Foodco Group which owns Muffin Break.
Providing fresh food has been a cornerstone of the business; since its inception Muffin Break has always been committed to baking muffins daily using natural ingredients.
Infanti adds, “While our stores and some of our products may have changed over the years we have always been centred around our core values of being fresh, reliable, home baked and being a safe haven for our customers.
“We believe the 20th Anniversary is just the beginning of more exciting opportunities for Muffin Break and look forward to sharing this with our franchisees and customers.”
COFFEE FRANCHISE HELPING WOMEN BREW SUCCESS
Women comprise 39% of Xpresso Delight franchisees, compared with the industry average of 27.9% as released in the Franchising Australia 2008 report.
Xpresso Delight co-founders Stephen Spitz and Paul Crabtree said the business model was ideal for women looking for the flexibility to spend more time with their families and still earn a full-time income.
“Xpresso Delight places fully automated, commercial grade, gourmet espresso coffee machines into workplaces free of charge so the business model allows a lot of time flexibility,” Mr Spitz said.
”The machines are sitting there making money while franchisees can also be looking after their family. It’s the perfect business to work around family commitments; you have the time to drop the kids at school, run errands or go to the gym during the day.”
Xpresso Delight provides the perfect blend of work and family life for Bexley franchisee Laila Kennedy, the mother of Kane, 10 and Liam, 12. Laila works an average of 20 hours per week and earns a turnover in excess of $85,000 per year.
“The business provides me with a relatively passive income so I can avoid the long hours of other types of franchises and still earn a fantastic income,” Laila said.
“I’m doing something I really enjoy with the flexibility to manage my time between family and work life, and I’m also supplementing my family’s income. It has created a balance in my life which is something all mothers want.”
SUCCESSIVE GROWTH FOR KWIK KOPY
Kwik Kopy print franchise owners are continuing to buck the economic downturn, recording a seventh consecutive year of growth through 2008, due to a robust business-to-business sales model and their ability to act quickly to meet the changing needs of both existing and new clients.
An independent Australian company, Kwik Kopy Australia was established in 1982 as a Master Licence holder from Kwik Kopy Corporation U.S.A. It now has 109 Centres operating throughout Australia – and is growing every day.
Kwik Kopy Australia’s aim is to deliver practical print advice, graphic design and advanced online access to provide its clients with superior communication products to enhance their business.
According to David Bell, Managing Director of Kwik Kopy Australia, the current climate of economic uncertainty is providing tremendous opportunity for franchisees to increase their business share.
“Most franchises are business-to-consumer franchises with a strong retail presence, so they have lots of set-up costs such as store fit-outs in shopping centres”, said Bell. “Our franchise is business-to-business so generally cost of entry is lower and business is more consistent.
“We are seeing a number of enquiries from people who have recently been made redundant and have decided to take the opportunity to own their own business rather than continuing to work for others”, he said.
“Typically, when times are tight customers order shorter runs more frequently. Our franchisees are profitable, well-capitalised, have a strong support network around them and are successfully competing on price against the larger printers on this business, whilst the independents are often too small to tackle corporate needs.”
SUMOSALAD ARRIVES IN NZ
Young Aussie brand, SumoSalad, has revolutionised the concept of healthy fast food with its delicious and nutritious meal options, becoming one of Australia’s most popular takeaway outlets, and now finally it has crossed the ocean to New Zealand with a new store opening in Auckland Airport last December.
From humble beginnings in 2003 with just one store in Sydney, SumoSalad currently has over 70 stores trading throughout Australia plus five international stores in Dubai and the UK. New Zealand is now the next country to get a taste of SumoSalad and help kick-start Kiwis into improving their diets.
“SumoSalad is all about living and eating well which we strongly believe in. We believe in promoting healthy eating within the community in a fast-food format, which these days suits the busy lifestyles of people who need something quick and easy, without compromising on quality and nutritious value”, said Luke Baylis, Managing Director of SumoSalad.
SumoSalad offers a wide variety of healthy and nutritious options, including freshly made to order warm and cold salads, delicious long rolls and toasties, hot pasta salads, filling wraps, organic coffee and healthy breakfast options.
EXCLUSIVE COLLECTABLES OPENS IN PENRITH
Penrith has become the new retail outlet and home for Exclusive Collectables, the original iconic store in Homebush having fallen victim to a fire from a neighbouring service station in 2007.
The new Exclusive Collectables Sydney flagship store was officially opened on 9 December 2008, by founder Frank Nohra and motor racing legend Craig Lowndes. Over 800 people enjoyed the day, with Craig Lowndes meeting many fans and signing several pieces of memorabilia.
Founder Frank Nohra says, “Our new Penrith store is the first of many new company owned and franchise stores to open over the upcoming years, and we know Craig is the right man to keep up with the pace.”
Over a decade has passed since 1996 saw the birth of the family business Exclusive Model Cars and Collectables, now Exclusive Collectables. Now a leading force in the ever expanding collectable and hobby market, the business attracts customers from all ages and walks of life.
The new Penrith store is the first franchise store of many to spread across Australian states and territories, and New Zealand.
SELLING HEALTHY HABITS TO DYMOCKS
Focusing on growing their retail assets, book retailer Dymocks has purchased an 80% share in the Australian healthy sandwich bar franchise, Healthy Habits.
For some time, Katherine Sampson, Founder and Managing Director of Healthy Habits, has been looking for a partner to help grow the business. She retains a 20% stake and her role as MD.
Commenting on 3 February 2009, Katherine says: “I’ve been busy behind the scenes for the last six months, but obviously no one knew that. It’s going to allow me to deliver the vision that I’ve had for the last four years for the franchisees. We’re very excited!”
Katherine has always shared her plans with store owners: “The franchisees have known that I’ve been looking for a partner, so it came as no surprise. Until now, I’ve funded it on my own; I’ve developed it on my own; and it’s been a tough road – they’ve totally appreciated that.
“Once they got to listen to Don Grover, the CEO of Dymocks, they really understood his passion for the business. What it will allow us to do is all the things that I have in my mind and that I’ve attempted to do, but haven’t been able to complete.”
Katherine opened the first Healthy Habits store in 1992, as a single sandwich bar in the Knox City Shopping Centre (VIC). Today there are 28 franchises and two company-owned stores, with plans to roll out the brand across Australia with 10 new stores opening in 2009.
Dymocks for Booklovers is a leading Australian owned and operated specialty book retailer in Australia, New Zealand and Hong Kong.
NEW LOOK EAGLE BOYS GET REAL
Australia’s third largest pizza maker, Eagle Boys Pizza has undergone one of the most significant changes in its 22 year history with the launch of a seven million dollar 12 month campaign to revitalise its iconic pink logo and unveil a new range of bigger, better pizzas.
The cornerstone of the new Real campaign is a revamped menu, including a new range of eleven premium pizzas, developed by Eagle Boys’ dedicated chef.
The Real campaign is part of Eagle Boys’ largest ever advertising push. It plans to reinforce its Bigger, Better positioning, which first began 12 months ago when it highlighted how some competitors had shrunk the size of their pizzas to cut costs.
Eagle Boys National Marketing Manager Scott Hamilton said the campaign’s new direction was the culmination of more than two years of consumer research.
“Australians have shown an overwhelming desire for a pizza chain to provide a higher quality pizza with real fresh ingredients, but still retain all the things they love about a pizza chain – quick and friendly service, great location and value for money.”
Mr Hamilton said the change was being supported by an advertising and marketing campaign which encompassed a range of mediums, including a significantly increased expenditure in mainstream media, particularly television.
Eagle Boys Pizza operates more than 250 franchised stores throughout QLD, NSW, VIC, SA, WA and the NT, employing more than 4,000 staff and making more than 15 million pizzas a year.