Franchise New Zealand - Vol 22 Iss 02 - Winter 2013

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Westpac Directory of Franchising

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• Ingredients for success • How to achieve peak performance • Learning your new business

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In the previous issue of Franchise New Zealand, we set out to identify the ‘next big thing’ in franchising. One of the key growth sectors, not surprisingly, was food – after all, it’s still a basic need that can’t be fulfilled by an iPad.

Our research specifically mentioned a continuing trend towards healthy eating and the emergence of a new sector called ‘fast-casual’ restaurants. Sure enough, in this issue you’ll find profiles of new franchises like Mexicali Fresh and Burger Fixx launching into this market, as well as established ones like Burger Fuel and old favourites like Valentines. But what we hadn’t expected to happen was that McDonald’s would look to the last big thing for inspiration by trialling the relaunch of Georgie Pie.

On the face of it, it’s a strange thing to do, given the changes that McDonald’s has been making over recent years to offer more healthy eating options and move into the café sector. But eating out is a market that’s always changing and McDonald’s is keenly aware of the constant need to explore options and opportunities. Our cover story looks at the thinking behind the trial and, believe me, there’s a lot more to it than just bowing to the ‘Bring Back Georgie Pie’ campaigners.

Although food might be flavour of the month this issue, there are plenty of other great opportunities in the following pages in everything from building to beauty. Funnily enough, those are two more of the sectors we identified as ‘next big things’ – we’ve posted that whole article on our website at www.franchise.co.nz (look for What’s the Next Big Thing?) so you can find all the others, too.

But, as the original Georgie Pie proved, not every franchise is a potential McDonald’s so how do you identify those with the right ingredients? In our article on page 24, we look at what quality franchises have in common. Successful franchising means following a recipe, so we also look at the stages involved in starting a whole new business (page 52). And then we have advice on putting it all together to get the best possible results (pages 34 and 60).

So whether you’re looking at food or one of the many other types of franchise available, you’ll find plenty of ideas, case studies, information and advice in the following pages. I hope you find it stimulates your appetite for carving out your own slice of the franchising pie.

Simon LordPublisher Franchise New Zealandmagazine & website

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57 Old Favourite, New ConceptValentines’ new style and new menu boost popularity and profits

59 Making Money From Making SpaceJust Cabins help franchisees secure their future with a semi-passive investment

60 8 More Ways To Improve Your Bottom LinePaul Kane of Grant Thornton provides a follow-up to a popular article

63 Delivering A Dream LifestyleHusband-and-wife team abandoned the corporate world for a Pack & Send franchise

65 Time To Spring Into ActionDeck & Fence Pro franchisees needed now to meet growing demand

66 What Happens When It All Goes Wrong?David Munn looks at a recent court case and analyses the risks associated with restraint of trade clauses in franchise agreements

42 Two Coffees If You PleaseAuckland couple find The Coffee Guy so good they buy a franchise each

43 The Best Thing Since Sliced BreadEx-banker made the right decision when he bought a Brumby’s Bakery franchise

45 Why Use An Accountant?Does money matter? Some franchise buyers don’t seem to think so

46 Right Model For Massive MarketA property specialist found Refresh Renovations had done all the hard work

49 New Café Franchisee Is Quietly ConfidentColumbus Coffee’s latest outlet will benefit from a wealth of experience

51 Assured Income Smooths The WayPaid training and guaranteed income are just the start, say V.I.P. Home Services franchisees

52 What Happens Next? Lorraine Lord looks at the stages involved in starting a whole new business and talks to the experts

55 Teen Dream To Beauty QueenA new Caci franchisee applied the system with passion and got stunning results

6 Back On The MenuMcDonald’s are looking to dominate a new market. Simon Lord takes a look at the strategy behind the relaunch of Georgie Pie

11 NZ Ready For Mexican WaveMexicali Fresh leads the rapidly growing fast-casual dining concept

13 Baby Boomers Mean BusinessFreedom Companion Driving franchisees enjoy personal and financial rewards

15 Made In GermanyPalazzo Kitchens & Appliances offers a ground floor opportunity in specialist retail

16 UpdatesWho’s going public, what the solicitor told the franchisee and latest legislation – top news stories from www.franchise.co.nz

19 Home Builders Making Their MarkLandmark Homes need more franchisees to satisfy a discerning market

21 Delighted Clients, Delighted InvestorsXpresso Delight provides quality coffee and quality returns

23 Knowing The Market Pays OffPassionate about sport? Frontrunner franchisees take on a challenge and win

24 The Essential Ingredients For SuccessWhat do quality franchises have in common

29 Getting A Fixx Of Healthy BurgersHealthy fast food chain Burger Fixx offers huge incentive to first franchisees

30 Beware The Hidden CostsDaniel Cloete of Westpac identifies some areas that can be overlooked when buying a franchise

33 Accounting Franchise Ticks The BoxesBringing SBA to Timaru proves a sound decision

34 Helping Franchisees Achieve Peak PerformanceHow can franchisees improve their financial results quickly and simply? David Campbell has the answers

37 Doors Opportunity Wide OpenDream Doors franchisees smash sales targets in first year

39 Out Of The Fire Into A New FutureCafe2U? ‘U bet,’ says former fireman turned mobile barista

41 The Mystery Of The Missing Blend BookRobert Harris was created by a man who demanded the best

70 Westpac Directory Of FranchisingComprehensive details and investment levels for over 250 franchise and master franchise opportunities. Also includes advisors and index to advertisers

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The Essential Ingredients For Success

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⇒ Back On The Menu

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⇒You’ve Bought A Franchise? What Happens Next?

McDonald’s are looking to bring back one of NZ’s best-loved brands. Simon Lord looks at the strategy behind the relaunch of Georgie Pie

Lorraine Lord describes the stages involved in starting a whole new business and talks to the experts

How do you tell the difference between a good opportunity and a great one? We explore the factors that quality franchises have in common

DIRECTORYof franchising

Franchise Opportunities

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⇒ Welcome to Franchise New Zealand – the buy your own business magazine Volume 22 Issue 02 Winter 2013

Editor Simon Lord

Publication Manager Sally Knight

Publication Services Eve Brown

Writers Crispin Caldicott Ross Lindsay

SubmissionsEditorial submissions and advertising enquiries should be directed to the publisher. All articles published become copyright ©Franchise NZ Marketing Ltd

ConditionsThe publisher in its sole discretion reserves the right to refuse to publish any advertisement received if the publisher considers that the publication of such advertisement would be undesirable in any way.

ContactFor information about subscriptions, advertising or other matters, please ring us on 0800 372 624 or email [email protected]

CopyrightFranchise New Zealand magazine and website are copyright ©Franchise NZ Marketing Ltd. and no part may be reproduced without the specific written permission of the publisher.

DisclaimerAll franchise and business opportunity features included within this publication are paid advertorial approved by the client concerned.

Inclusion of any franchise system, business opportunity or professional advisor within this magazine does not imply endorsement by the publisher or membership of the FANZ. Persons entering into franchise agreements are strongly advised to seek their own professional advice.

The publisher does not accept any responsibility or liability for views or claims expressed in Franchise New Zealand. Opinions expressed by contributors are their own and not necessarily endorsed by the publisher.

Franchise New Zealand Volume 22 Issue 02 Winter 20136

Cover Story

⇒ It’s the brand that, for many people, defined a Kiwi childhood. The Georgie Pie sign promised a wide range of pie flavours, a ‘Funtastic

Value’ menu where everything sold for $1, $2, $3 or $4, and a family-friendly atmosphere including the classic (if not always hygienic) ball pools. Best of all, it was New Zealand’s own home-grown alternative to the global fast food giants, proving that the Kiwi pie was more than equal to anything that came out of the US of A. Georgie Pie was the ‘think big’ project that people loved.

But although the Georgie Pie star burned bright, it burned briefly. Its first restaurant opened in 1977 and for some years it remained relatively small and Auckland-based, but by 1994 it had 26 restaurants serving a reported 600,000 pies a week. The company’s owners, supermarket chain Progressive Enterprises, embarked upon an ambitious plan to open 25 new restaurants a year, with a goal of having 114 restaurants by the end of 1998. To fuel this expansion, a state-of-the-art factory capable of producing over 6,000 pies per hour was built in Mangere – but it proved a step too far. The facility was expensive, hoped-for overseas expansion never happened and when the company tried to address its problems by raising its prices, customer numbers started dropping. By 1996, Georgie Pie and its 32 outlets were up for sale.

The two obvious buyers for 32 purpose-designed fast food restaurants were McDonald’s and Burger King. Burger King was just launching in New Zealand and such a purchase would give the company instant credibility in the market – something McDonald’s could not afford to let happen. So McDonald’s paid slightly over the odds for the company, acquiring 17 outlets for conversion and closing the others. As part of the deal, it also acquired Georgie Pie’s intellectual property, including the brand and recipes for the pies that had captured the hearts and stomachs of the nation. The last Georgie Pie closed in 1998.

Will It Be Viable This Time Round?Now Georgie Pie is back – in a limited fashion, at least. McDonald’s is trialling a single Georgie Pie-branded product in 11 McDonald’s restaurants around Auckland and the Waikato. The test will enable the company to evaluate the product from a number of angles: operational efficiency, business impacts, product mix and customer reaction. If successful, McDonald’s says it hopes to roll the product out in a national launch later this year and may later add other Georgie Pie flavours, including dessert pies.

Georgie Pie has attracted a lot of nostalgia over the years, with a ‘Bring Back Georgie Pie’ campaign and a Facebook page that attracted over 57,000 likes. It’s not surprising, then, that the announcement that Georgie Pie was to return received huge media coverage, with the press conference at McDonald’s in Greenlane, Auckland (the former Georgie Pie flagship store) attracting a packed crowd of journalists. However, coverage and social media comment may have been less positive than McDonald’s hoped for, with considerable criticism aimed at the company for its pricing, the lack of choice (only one flavour, Steak Mince ‘N’ Cheese), and the fact that McDonald’s would be selling through its existing outlets rather than opening new dedicated Georgie Pie outlets. As one disappointed soul wailed on Facebook, ‘I wanted Georgie Pie back but exactly as it was.’

McDonald’s are looking to dominate a new market by bringing back one of NZ’s best-loved brands. Simon Lord takes a deeper look at the strategy behind the relaunch of Georgie Pie

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back on the menu

It was the sites that McDonald’s originally wanted, not the brand itself. The picture on the right shows two long-gone icons: Georgie Pie Green Lane and the tree on One Tree Hill

Emerging from the mists of the past, the return of Georgie Pie will bring back happy memories for a generation of Kiwis. There was no doubting the popularity of the original ‘Funtastic Value’ menu (above) but when prices had to rise it was one of the factors that brought about Georgie Pie’s demise



Cover Story

Old Recipe, New ChallengesMcDonald’s has made a big point of following the original much-loved recipe faithfully, including Georgie Pie’s unique short pastry formed in the distinctive square shape of the original pies. The company recruited former Georgie Pie general manager Brian Popham to consult on the product research and development process, and is producing the product on the original Georgie Pie production line in Mangere, now owned by Goodman Fielder. The whole process has taken two years and Patrick Wilson says that the only significant change to the original recipe was the removal of added monosodium glutamate. The result lays to rest the fears of the former MD, Mark Hawthorne, who once suggested that the original recipe product would ‘taste like cardboard’ these days.

The pies are produced with part-cooked fillings and flash frozen before being delivered to restaurants. Each restaurant then bakes on site, which has necessitated the installation of special computer-controlled cooking and warming ovens. This presents a new set of challenges to operators, admits Patrick Wilson – pie preparation time is 30 minutes, as opposed to the maximum 6 minutes of any product in the current range, so forecasting of demand is essential. This is somewhat off-set by the increased hold time, which may be up to two hours (although many other pie operators hold for double that period or even more).

We Got Absolutely SlammedAt 10.15 on the morning of Wednesday 5th June, Mark Rush was a nervous man. In just 15 minutes, the long-time Georgie Pie fan would see the return of his favourite Steak Mince ‘N’ Cheese pie – but Mark had more invested than most. As franchisee for McDonald’s Queen Street, he’d championed the Georgie Pie trial and his restaurant was one of just two selected for the relaunch. ‘But it was all calm and quiet outside with 15 minutes to go,’ he recalls. ‘I was wondering, “Where are all the customers?” Then at 10.30 the hordes rushed in and we got absolutely slammed!’

The restaurant had installed three ovens and built up stocks in advance, but ‘We had some capacity issues,’ Mark admits with a grin. ‘The first couple of hours were hard for all concerned and it was pretty hectic, but our customers were very good-natured. That afternoon we installed another two ovens and the second day was very successful. A lot of customers came back for more and there was no wait for the product. Best of all, people were saying, “This is the pie I loved.” Like me, they could still remember the taste even though the last time was 15 or 16 years ago.’

It sounds strange to hear a McDonald’s franchisee singing the praises of Georgie Pie, especially one who remembers when they were the opposition. Mark has been with McDonald’s for 26 years, starting as a crew member in the franchised restaurant at Henderson Square, then moving around new stores before joining the company and working his way up through the operations division. After a spell as project manager deploying IT initiatives throughout the Asia Pacific region, he fulfilled his dream of becoming a franchisee himself. Today he owns five restaurants in central Auckland and Newmarket and is one of five elected members on the McDonald’s New Zealand marketing executive.

‘I’ve been a fan of bringing back Georgie Pie for a long time,’ he says. ‘You don’t want to die wondering about anything and I wanted to know how it would resonate with the consumer all these years down the track. So when McDonald’s started getting serious a couple of years ago, I was quick to put my hand up to be part of it. As a franchisee testing the product, my role is to get involved and gain first-hand knowledge of the impact on my business and what my customers are saying. There are five franchisees involved in the trial and it gives us a lot more understanding when we look at the data and have to decide whether to roll it out nationally. It takes quite a hefty investment to do a product roll-out like this one and I think one of the reasons McDonald’s is so successful is that franchisees have the ability to be really involved in those decisions.’

Attracting More CustomersIn among the carping of people saying ‘McDonald’s have priced it so high they must want it to fail,’ there have also been suggestions that the only reason McDonald’s are testing the product now is to maintain its legal control of the Georgie Pie brand and intellectual property – in much the same way as Ford use the name ‘Escort’ on limited-edition versions of other models from time to time.

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that, ‘The pie market in NZ is, what, 70 million pies a year. If we could capture just 20 percent of that market, at $4.50 a time that’s not shabby business.’ Actually, it adds up to a remarkable 63 million dollars.

Industry analysts have been sceptical that, even with McDonald’s brand power and reach, it could achieve a 20 percent share of such a fragmented market. However, figures suggest that just 5 percent share could add over $20,000 profit contribution per store and, with new customers and add-on sales on top, reviving Georgie Pie could prove to be a shrewd move.

Since the brand’s demise there have been several attempts to establish specialist pie franchises in New Zealand, including locally-developed Pie World and the South African chain King Pie. The only one to have achieved some measure of success so far is Australian chain Jesters, which has 17 outlets around the country. Grant Rawlinson, the NZ master franchisee for Jesters, told us, ‘We are excited for the whole category of pies to be put back on the table and up for discussion. Pies are a Kiwi institution; certainly Georgie Pie had a strong following and I am sure there will be those who will enjoy them once again.’ Another Australian chain, Pie Face, announced in 2012 that it aimed to open over 60 stores throughout New Zealand over the next 10 years. McDonald’s has over 160 restaurants.

Is It Financially Sustainable?Whether Georgie Pie is back to stay now depends on results of the trials over the next few months, and that’s a decision that rests as much with McDonald’s franchisees as it does with their management. ’80 percent of our restaurants are franchised,’ says Patrick. ‘We have 52 franchisees, all very different personalities with their businesses in different states of health, so there is some nervousness. That’s why we’ve had to pilot as opposed to going national straight out. It’s not just the investment; it’s what happens with the product and whether it’s financially sustainable.

‘If we were to go to national launch we’d look at a broader range of products because, going back to the franchisee, unless it’s actually building the worth of their business it’s very hard to convince them to invest the capital. It’s not McDonald’s dollars we’re investing, it’s theirs, which I think is actually healthy for us as a system – they’re smart, independent business people. And because they are Kiwis themselves they understand the Georgie Pie brand and are interested in how we can make it fit with McDonald’s. After I discussed this with them, I have never had so many emails or calls saying, “I want in on the trial.”

‘Our research suggests that Kiwis still have a big appetite for their favourite pie brand. We’re hopeful that after the launch excitement, our customers will come back and enjoy what is a great tasting, quality product. We will then evaluate the pilot and look at options for a nationwide rollout.’

And Mark Rush feels the same. ‘There’s been a lot of work and research and hard thinking gone into this, and I think everyone’s been concerned to get the balance right – to do the right thing by Georgie Pie without being too protective of the Golden Arches. Personally, I’d like to see it succeed and see more flavours brought in to keep the Georgier Pie brand fresh long-term. Blackberry and apple, that’s one of my favourites…’

While that may be an additional benefit, Mark Rush’s report of the opening days suggests the main agenda lies elsewhere. ‘The launch of Georgie Pie has brought in a lot of new customers. It’s interesting to see how many 30 and 40 year-olds are lining up at the counter in Queen Street, rather than the students we usually get.’ Bankers and corporate executives re-living their youth? ‘Absolutely – Georgie Pie’s attracting a lot of people we haven’t connected with for a while.’

Patrick Wilson confirmed that at the launch when he told Franchise New Zealand, ‘While we don’t mind customers trading up from a quarterpounder to a couple of pies, we essentially want more new customers coming in. We see this trial as widening our range and enhancing our restaurants even further.’ And that’s what the Georgie Pie relaunch is about. Over the past few years, McDonald’s has re-invented itself in many ways, from pushing healthier options to changing its entire system to cook-to-order and offering a slightly more upmarket experience with McCafés. But at the same time, the quick service restaurant market is under greater pressure than ever with Subway and Pita Pit at the healthier end of the spectrum (in consumer perception, at least) and a revitalised KFC and Carl’s Jr. delivering at the other – still popular – end. The lamb burgers and wraps which McDonalds’s launched last year were discontinued shortly before the Georgie Pie announcement having failed to reach sales goals after the initial surge.

‘2012 was a tough time for the whole market; it does seem to have contracted,’ Patrick says. ‘But I think you’ve got to continue to try different products. Some of them are going to be spectacular successes, some aren’t. Lamb definitely has a place somewhere; we’re just trying to figure out what we got wrong. Maybe it was just that the product was too big.’ Now the company is playing the Georgie Pie card, cashing in on a nostalgic brand while entering a whole new market segment for McDonald’s.

Seeking A Slice Of A Bigger PieThe pie market is not a small one but, intriguingly for McDonald’s, it has no dominant player. Mark Hawthorne, the former MD of McDonald’s NZ who now heads the Asia Pacific region for McDonalds, suggested to me

About the AuthorSimon Lord is Editor of Franchise New Zealand and has a long-ago background in the fast food industry.

McDonald’s is after a significant share of the pie market in New Zealand. Managing Director Patrick Wilson says, ‘We see this trial as widening our range and enhancing our restaurants even further’

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⇒ Mexicali Fresh brought big American-style burritos and frozen margaritas to the Kiwi landscape in 2005 with the launch of its first

restaurant at Princes Wharf on Auckland’s waterfront. Now the company is offering motivated and ambitious people the opportunity to become a part of this rapidly-evolving Kiwi success story.

Mexicali Fresh is a family-owned-and-operated business led by brothers Conor and Tyler Kerlin. The driven and passionate pair are continuing a successful 35-year family tradition of managing some of the hottest Mexican restaurants in the United States.

‘After eight years of business, we know we’ve got a winning formula,’ Conor Kerlin says. ‘We’ve amassed a die-hard following thanks to our laid-back vibe, loyal staff, hand-crafted food and freedom of choice. Our customers have just one complaint – they want more places around the country to get their Mexicali fix!’

Mexicali Fresh currently has locations in Auckland: Princes Wharf, Nuffield Street in Newmarket and Karangahape Road, and has three additional sites under development. The goal is to open 40 Mexicali Fresh restaurants in the next five years. Current stores range in size from 110-210 sqm with substantial outdoor seating areas being desirable. All are fully-licensed.

An Authentic HeritageFranchise New Zealand recently identified the fast casual sector as one of the ‘next big things’ in franchising. Fast casual restaurants don’t offer full table service, but promise higher quality food and a great dining experience. ‘Today, consumers still want their food fast, but they also want it healthy and at great value,’ explains Conor. ‘And that’s just what Mexicali Fresh delivers – along with a helping of authentic California culture.’

Mexicali founder John Buell was a San Francisco hippie living in an abandoned school bus back in Lake Tahoe in the early 1970s when he got a job in a new Mexican restaurant. The recipes were straight out of East LA, the food was a hit and the place became an instant landmark. John took the concept to New York City and then the Pacific Northwest, where casual fine-dining restaurant Mexicali Rose was born.

‘Throughout the years Mexicali has been paving the way, first with Mexicali Rose, then with a counter service restaurant Baja Norte, and finally the fast-casual model that operates today in Mexicali Fresh restaurants,’ says Conor.

‘Those first traditional recipes from a genuine Mexican-American family are still used today at every Mexicali Fresh. We grill and roast our meats, hand-chop our salsas and fry our tortilla chips up fresh every day to give our diners the most authentic California-style Mexican experience in New Zealand.’

Secret To SuccessMexicali Fresh’s success is due to its continued focus on the well-being and motivation of its employees and the high standard of food and service delivered to its customers. All of this is supported by comprehensive yet simple business management and operational systems that reflect years of

tried-and-tested experience both in New Zealand and in the US. The franchise model has also been developed with the assistance of the multi-award-winning team at Franchize Consultants.

‘We have a committed management team supported by a healthy balance sheet and strong capital investment,’ Conor says. In 2012, ihug co-founder and entrepreneur Tim Wood acquired a stake in Mexicali Fresh, following several visits to the restaurant where he became ‘completely addicted’ to the chicken taco salad.

‘Fast-casual food with a Mexican twist is such a great model – it’s perfect for hungry kids

after soccer, girls out for frozen margaritas or office workers wanting a quick and tasty lunch,’ says Tim. ‘It’s a fantastic product that has huge expansion potential with a little help around growth and delivery strategies. I was naturally keen to partner with the family to take Mexicali Fresh to the next level.’

The OpportunityMexicali Fresh is now looking for enthusiastic, energetic people who are passionate about great food and excellent customer service to take the franchise nationwide. Depending upon size and location, the investment required starts from around $300,000 +gst. ‘This opportunity is great for a family team dedicated to building a rewarding lifestyle, or perfect for the seasoned hospitality professional who has the capacity to manage multiple franchises based on proven systems,’ Conor suggests.

‘Mexicali Fresh secures favourable leases for its franchisees, fits out the premises in our colourful and unique style, purchases and installs all restaurant equipment and computer technology, and trains the franchisee and their manager in our proven systems. We offer continuing in-store and system-wide marketing and management support, along with cutting edge digital menu displays, POS and back office systems to help achieve results above industry-average.

‘If you want to be part of the fast-casual insurgence in New Zealand and reap the rewards of owning a franchise with an established, well-resourced and successful business model, then contact Mexicali Fresh today.’

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Find more info at franchise.co.nz - Search: Mexicali Fresh

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Advertiser InfoMexicali FreshPO Box 109 255, Newmarket, Auckland 1149www.mexicalifresh.co.nzContactCindy BuellP 021 750 [email protected]

BurgerFuel is in high demand all over the world with stores in Dubai, Riyadh, Sydney and Northern Iraq now open. But closer to home, the South Island of New Zealand is one of the most in demand territories at the moment and residents have been asking for a BurgerFuel store for quite some time now. There has been a clear desire for New Zealand’s original gourmet burger, filled with 100% pure New Zealand grass fed beef, fresh handmade salad, a side of Spud or Kumara Fries, and of course their famously addictive fresh natural BurgerFuel Aioli.

Finally, BurgerFuel is on its way and a Christchurch store is looking likely to open first. General Manager of BurgerFuel Australasia, Craig Notman, says “Fans have been setting up various ‘Bring BurgerFuel to the South Island’ Facebook groups and pages over the years. So, we’re pleased to announce officially that BurgerFuel is

coming to the South Island in 2013. We also have franchise opportunities for other territories in the South Island where there is a huge demand for a BurgerFuel, like Queenstown and Dunedin. Some are in the process of signing and others just waiting for the right franchisee to join the BurgerFuel family”.

In typical Kiwi fashion, BurgerFuel have set the global benchmark for all other gourmet food franchises whilst holding onto their Kiwi roots as they continue to serve high quality fresh products to their customers keeping that ‘engineered edge’ and holding on to the ‘local burger joint’ image – things that many fast food brands and even restaurants aspire to.

BurgerFuel have also said that they are very pleased with their presence in Sydney and are on the lookout for more franchisees and stores in Australia. Notman adds “We are receiving

enquiries from all over Australasia from Queenstown to Queensland. Technology has changed and it’s now easier for applicants to get a foot in the door, with over 80% of our applicants filling in the simple franchise form online atwww.burgerfuel.com/franchise to start their BurgerFuel journey”.

BURGERFUEL TO TAKE A BITE OF THE SOUTH...

Customers at the latest BurgerFuel opening

“We are receiving enquiries from all over australasia from queenstoWn to queensland.” - craig notman

for more information contact [email protected]. for a list of stores or to vieW available territories check out

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helping others a BOOMING BUSINESSFreedom Companion Driving franchisees enjoy personal and financial rewards

Franchise Opportunity: Home Services

13

⇒ The ageing of the baby boomer generation signals good times ahead for Freedom Companion Driving Services franchisees. Just ask Neil

Murray – in his first six months, the North Shore franchisee has had almost as much work as he can handle, and he couldn’t be happier.

Neil had retired from 30 years as a television broadcast engineer. ‘I wanted to do something that would really contribute to the local community. I wondered about voluntary work but then I discovered Freedom Companion Driving Services and realised that I could do something that really helped people while earning a good income, too. It was perfect.’

Freedom franchisees provide a highly-personalised service to people unable to drive themselves. Unlike a taxi, Freedom drivers will escort passengers to the doctor, take notes for family members and even pop in to the pharmacy to pick up prescriptions. They carry out airport pick-ups, school runs, take people to events and go out of their way to make life easy for their customers.

Neil’s success comes as no surprise to the company’s founder Andrew Nichols. ‘This is the right idea at the right time. Freedom Companion Driving Services is growing extremely quickly with enquiries from potential customers and franchisees all over New Zealand,’ he explains. ‘In the past two months, four franchisees have joined us and we urgently need more. But they have to be the right people, like Neil. Freedom is an affordable and personal service, so before we appoint a franchisee we must be confident of their ability to build strong, long-lasting relationships with their customers. For some customers this is crucial for their quality of life.

Neil couldn’t agree more. ‘During the school week I drive a 15 year old who has Asperger’s syndrome. Routine is important for him - he’d be shattered if a stranger turned up for him, and he’s not the only one. Many others rely on seeing a familiar, friendly face, too.’

But it’s not just about the enjoyment of providing a special level of service, says Neil. ‘The franchisor arranges ACC and other work from institutions and organisations, but you can’t sit around waiting for business to come to you. As much as you need to have a caring nature and genuinely enjoy interacting with people, it’s equally important that you have the energy and confidence to get out into your area and build your business with Freedom’s help.’

Income GuaranteeThe fast-growing demand for Freedom Companion Driving Services has seen extra support developed for franchisees. Richard Bright has become managing director for New Zealand, with a business development manager to be brought on to help new franchisees develop their areas and additional internal support staff to be recruited shortly.

‘Biggest of all is the income guarantee for franchisees,’ says Andrew. ‘This is us putting our money where our mouth is. Having previously grown one of the country’s largest home services franchise systems, I know that working

for yourself after years of regular pay cheques can seem a huge step at first. Our income guarantee helps provide a stable income so the franchisee can focus on getting their business on the road. It also demonstrates just how confident we are of the demand for

Freedom. This is a business tailor-made to meet the transportation and other care needs of New Zealanders.’

The Freedom Companion Driving Services franchise requires a very affordable initial investment of $23,000 +gst which includes not just the franchise fee but an equipment package that includes marketing materials, uniforms, vehicle sign-writing and franchise manuals. Franchisees also need a late model vehicle capable of transporting wheelchairs – something the franchise can assist with. Comprehensive training covers customer service, booking and scheduling, and business management, while ongoing support includes a 24-hour contact centre.

‘So if you’re looking for a business that is rewarding both personally and financially, give Richard a call,’ Andrew suggests. ‘After all, baby boomers mean business!’

Find more info at franchise.co.nz - Search: Freedom Companion Driving

Advertiser InfoFreedom Companion DrivingPO Box 302 424, North Harbour, Auckland 0751www.freedomdrivers.co.nzContactRichard BrightP 0800 956 956M 029 686 [email protected]

For further details on a Palazzo franchise opportunity contact Ron Neale on 021 978 348 or email [email protected]

Why choose aPalazzo franchise?• Leading German kitchen brands

• The latest in design technology

• Renowned appliance brands

• Comprehensive training & support

• Full website & marketing resources

rational

GERMAN KITCHENS

GERMAN KITCHENS

Invest in the Heart of a Home

LEISURE Steel

15

⇒ Having a dream kitchen custom-designed in New Zealand and manufactured in Germany would seem well beyond the reach of all

but the wealthiest home builders and renovators. ‘But that’s not the case,’ says Ron Neale of Palazzo Kitchens & Appliances in Christchurch. ‘German efficiency coupled with sophisticated technologies and mass production methods mean the kitchens we bring into the country are competitive on price and unbelievable on quality. Our kitchens come from Nobilia and Rational, two of Germany’s largest and most reputable kitchen manufacturers. They average around $15,000 but can cost as little as $7,000.’

Now Ron wants to offer the same benefits to home owners and developers in other parts of the country via the newly-launched Palazzo Kitchens & Appliances franchise. The business was established in 2003 to bring cutting-edge European technology and design to New Zealand: as well as specialising in kitchens, it also offers over 35 brands of appliances as well as Italian bedroom accessories and wardrobes.

Franchising plans were put on hold after the February 2011 earthquake, ‘which flattened everything including our 600 sqm warehouse,’ says Ron. ‘That event reduced us to selling kitchens from my home, but as they say, when the going gets tough, the tough get going and we bounced back. Now we’re landing full containers pretty much every week and soon we’ll be replacing our temporary showroom in Christchurch with much larger premises.

‘We’ve also taken the time to prove that the business model works in other areas. When two of our design staff moved to Wellington we turned this into the opportunity to open a Palazzo Palazzo Kitchens & Appliances showroom in the capital, and we also have another company-owned showroom in Christchurch, both trading well. Our first franchised showroom is opening in Timaru soon, and Dunedin is likely to be next.’

Auckland And MoreWhile the rebuild has obviously been good for the Christchurch business, Ron says Palazzo’s success in other areas points to the huge potential of the brand. ‘We’re looking for expressions of interest from centres throughout New Zealand, including Auckland,’ he says. ‘We’re already getting orders from Auckland and plan to have at least three franchisee-owned showrooms there.

‘Auckland’s housing shortage and building plans represent huge and on-going business potential for franchisees. They will enjoy the real competitive advantages of style and price, enabling them to build substantial businesses that offer excellent rates of return.’

Delivering Exceptional ServiceRon knows the industry well, having formerly owned a major kitchen appliances retail chain before founding Palazzo. It was that experience that led him to create a company which could offer clients a seamless transition through all the stages of buying a top quality European kitchen, from measurement and design consultations to manufacture, import and installation. ‘Our focus is on delivering exceptional service every step of the way, and we need franchisees who share the same approach,’ he says.

‘Franchisees will have a solid management or business ownership background as well as possessing retail sales and marketing abilities. They will need sufficient capital resources to be able to finance a total investment of around $350,000 to $450,000. This will cover establishment and initial operating costs for a retail showroom of at least 450 sqm. It also includes all systems and manuals, intensive training, the setting-up of approved suppliers and contract installers, staff recruitment assistance and help with finding suitable premises.

‘From the very start, franchisees employ trained sales staff and at least one senior kitchen designer, who uses our amazing German-developed 3D design software to create the perfect kitchen for each customer. The software prices items while the designer is working, enabling design and budget to be matched immediately and saving time and money for both the franchisee and their customer.’

A Winning FormulaThe final design is then sent to Germany for manufacture. ‘To give you an idea of just how big Nobilia is, each day their factories manufacture 2,500 kitchens to unbelievably high quality standards.’ Ron says. ‘No cabinetry is allowed to leave the factories until it is fully-assembled and has been quality approved. And if you think you’ve seen first class lacquer finishes, then wait until you see ours – Nobilia and Rational have both spent millions on lacquering technologies.

‘The whole process from custom design to unloading the container and installing the kitchen generally takes about 12 weeks. Granite or solid benchtops are supplied separately according to customer preference and then, of course, there’s the matter of choosing the perfect appliances. By retailing brands such as Sub Zero, Blanco, Electrolux, Asko, Wolf, Faber and over 30 more we offer customers a huge range to choose from and create volume turnover for franchisees.’

Ron Neale says that Palazzo’s success over the past ten years has shown that making German-quality kitchens and top-class appliances available at prices New Zealanders can afford is a winning formula. ‘For the right people, it’s also the business opportunity of a lifetime,’ he says. ‘So if you have vision, management experience and business acumen, seize the day. Call me now and find out if Palazzo Kitchens & Appliances can deliver for you.’

Palazzo Kitchens & Appliances offers ground floor opportunity in kitchen and appliance market

Franchise Opportunity: Home & Building

Find more info at franchise.co.nz - Search: Palazzo

Find more info at franchise.co.nz - Search: Palazzo

born in new zealand, MADE IN GERMANY

Advertiser InfoPalazzo Kitchens & Appliances PO Box 10 120, Phillipstown, Christchurch 8145www.palazzodesign.co.nzContactRon NealeP 0-3-366 6948M 021 978 [email protected]

Palazzo is bringing European style to New Zealand homes at affordable prices

Ron Neale and his team at Palazzo Kitchens & Appliances in Christchurch: ‘Our focus is on delivering exceptional service every step of the way and we need franchisees who share the same approach.’

16 Franchise New Zealand Volume 22 Issue 02 Winter 2013

UPDATESFrom Our Website

Franchise New Zealand is much more than a magazine. If you want to keep up-to-date with news about franchising in New Zealand and some of the more interesting stories from overseas, go to www.franchise.co.nz and follow us on Facebook or Twitter. Here’s our pick of recent news stories from our site.

The latest issue of Westpac’s quarterly Economic Overview suggests that the New Zealand economy is on an even stronger footing than expected. Annual GDP growth hit a five-year high in December, while annual inflation is hovering about a 13-year low.

This is despite two recent surprises that caused the Westpac economists to change their forecasts. The first surprise was the severe drought that gripped the North Island, which will hit agricultural production and downstream processing hard. However, unlike previous droughts, the ‘Big Dry’ caused a sharp increase in the price of exported dairy products, which will produce an offsetting flow of income into the economy. The result is that although the GDP growth forecast for this year has weakened from 3 percent to 2.8 percent, the forecast for next year

has increased substantially from 3.2 percent to 3.6 percent.

The second surprise was the extent of Japanese quantitative easing which will make Japanese imports to New Zealand cheaper, thereby suppressing inflation. ‘Low inflation will require the Reserve Bank to keep interest rates low for longer. Low-for-longer interest rates will stoke the already-hot housing market. And rising house prices will generate more consumer spending and GDP growth,’ says the report.

As far as interest rates go, the report forecasts that the Reserve Bank will hold the Official Cash Rate steady until at least March 2014 with modest hikes in the two years after that.

Read the full report. http://tinyurl.com/n3n94mc

Esquires Coffee Houses is to go public via a ‘backdoor’ listing on the New Zealand Stock Exchange. The news follows a similar move by The Mad Butcher Group, which listed on the NZX successfully last month.

The Esquires float will see Cooks Food Group, a listed shell company, acquire the shares of Franchise Development Ltd (FDL). FDL is owned by the Deeks brothers, who developed the Esquires Coffee Houses business in New Zealand and then took on the master franchise rights for the Canadian-founded chain in other parts of the world. Stuart and Lewis Deeks will become the largest shareholders of the Cooks group.

The ownership of the Esquires brand is slightly convoluted. FDL holds master franchise rights for Asia, the Pacific Islands, the Middle East and North Africa. It has also recently acquired Esquires Coffee International Inc from the Canadians, giving it global franchisor rights, including Ireland and the United Kingdom (where there are already national master franchisees and a number of franchised outlets).

However, the franchisor deal

excludes Canada, Australia and New Zealand. The chain was founded in Canada, where there are around 14 stores, but is at its strongest in New Zealand, where there are over 40. In New Zealand and Australia, though, the brand is owned outright by Retail Food Group which negotiated the arrangement as part of its purchase from the Deeks brothers in February 2011. This means that Esquires Coffee Houses will be listed in New Zealand through Cooks Food Group but will not control the brand on its own doorstep.

Cooks says that it is presently in negotiations to acquire further businesses, including a New Zealand-based food processing business and certain offshore retail businesses. Its plan is to pursue a global growth strategy based on an integrated retail and supply chain business aligned with Esquires Coffee Houses internationally.

Read more. www.franchise.co.nz/article/1675

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A stressed Lollipop’s Playland franchisee whose Hamilton business recently closed made the mistake of venting to a reporter. The result was publicity the franchisee - and other Lollipop’s operators - could do without.

Read more. http://tinyurl.com/lrusobj

See our article on dealing with bad press www.franchise.co.nz/article/624

An Intellectual Property expert says the Internet has become a riskier place for New Zealand franchises trying to protect their brand after Google announced it will no longer monitor or restrict the sale of AdWords in response to trade mark complaints.


Statistics New Zealand figures suggest the number of Kiwis leaving for Australia is now at its lowest level in nearly three years, as our economy continues a slow recovery and prospects in the labour-hungry building industry improve – especially in Christchurch and Auckland. In addition, returning New Zealanders from across the Tasman contributed to a net migration gain of almost 1600 migrants in April.

Continuing high exchange rates are also having an impact upon investment from new immigrants,

with many waiting until rates are more favourable before transferring funds from other currencies. Meanwhile, New Zealand’s unemployment rate fell to a three-year low in the first quarter of 2013, although the employment rate is still down 0.3 percentage points over the year and well below levels seen before the 2008 and 2009 recession.

The combined effect of these and other factors is that recruitment is continuing to be slow for many franchises, although conditions are easing as people gear up for

recovery. Anecdotal evidence suggests that re-sales – where there is proven cash-flow – have been stronger than new franchise sales over the past year. However, franchises which have strong brands, offer immediate cash-flow or have guaranteed income or work guarantee schemes, are reportedly seeing interest increasing as people gear up for the recovery.


A solicitor who encouraged a franchisee to be dishonest to avoid falling foul of a restraint of trade provision has had their name withheld by the Court.

Legal proceedings were brought against a former franchisee who was argued to be, among other things, in breach of its restraint of trade provision in the franchise agreement for operating a competing business within the restraint period (see more on restraints on page 66).

One of the ex-franchisee’s directors sought legal advice when proceedings were threatened by the franchisor and received an email response from his solicitor which noted that the defendants had ‘gone to great lengths to hide the fact that you continued to trade in breach’ and included advice that ‘acting as an accountant for [the competing entity] is almost certainly in breach of the restraint of trade clause. Permanently delete the accounts, and until the end of the restraint of trade period, [the competing entity’s director] should have them completed by another accountant. It would be

better if you were not in possession of the old [franchise] equipment.’

The email was mistakenly sent by the ex-franchisee’s solicitor’s secretary to the licensor of the franchise system, instead of being sent to the ex-franchisee’s director who had sought the advice.

The Court agreed that legal privilege did not apply in this case as the email contained ‘advice to assist in continuing and better perfecting intentional deception of the plaintiffs through dishonest concealment.’ The Court also considered that there was a prima facie case that the communication enabled or assisted an offence, given that the deletion of evidence was ‘an attempt by a solicitor to obstruct justice.’


Trans-Tasman legal issues could affect NZ franchisingGiven the increasing rapport between Australian and New Zealand regulators aimed at encouraging the Single Economic Market, the New Zealand franchise community is keeping a watchful eye on a number of legal issues. The latest review of the Franchising Code of Conduct over the Tasman has seen 18 new recommendations being made to the Australian Government covering seven main areas:

• Disclosure obligations • Good faith obligations• Franchisor failure • Dispute resolution• Transparency of financial information • Enforcement of the Code• Issues relating to the transfer, renewal or end of a franchise agreement

While some recommendations are aimed at clarifying or simplifying existing provisions, others could increase the burden upon franchisors. In addition and for the first time, breaches of the Code could attract penalties of up to A$50,000 or allow the ordering of a royalty-free period for franchisees.

Meanwhile, two pieces of proposed legislation in New Zealand could have a significant impact upon franchises here. Proposed changes to Part 6A of the Employment Relations Act mean that franchisors and/or franchisees who win a contract could be forced to take on employees from an outgoing contractor – a hot issue in the commercial cleaning industry, among others. And the Cartels Bill, another trans-Tasman initiative, could unwittingly serve to criminalise franchising in New Zealand altogether! While this is unlikely, the Franchise Association warns the Bill may require franchises to apply for individual exemptions if they are not to be caught under anti-competitive legislation – a potentially costly exercise.

A recent study by Roy Morgan Research has shown that 56 percent of New Zealanders have bought a coffee in a café in the past three months, suggesting that New Zealand is largely a nation full of coffee drinkers. This large proportion of Kiwis heading to a café for a coffee also suggests that coffee palates have matured, with discerning consumers opting for a freshly-made barista coffee over preparing an instant coffee at their home or work.

Despite more than half the

population identified as café-going coffee drinkers, the Roy Morgan report concludes that there has been very minimal growth in this sector in the five-year period leading up to December 2012, indicating an overall plateau of coffee consumption in New Zealand.

However, the mobile coffee van

industry was largely overlooked in the Roy Morgan report, says the Cafe2U franchise, which launched in New Zealand in August 2012 and has grown from zero to seven franchises in the last eight months. ‘This booming sector is the missing link in the new Roy Morgan

report when it comes to the barista-made coffee industry and suggests that coffee culture is very much alive and growing in New Zealand,’ says Derek Black, the managing director of Cafe2U.


Mobile coffee units boom

Come-back Kiwis need right opportunities In brief

Solicitor tells franchisee to delete evidence in restraint case

Franchising Code review www.franchise.co.nz/article/1677

NZ legislation changes www.franchise.co.nz/article/1678


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⇒ In the competitive building industry, Landmark Homes enjoys an enviably long pedigree. Franchisor Paul Clarke started as a builder in the late

1970s, building houses in the Tauranga area and creating plans to suit the market. It laid the foundation of a reputation for carefully-considered design and attention-to-detail that has continued to this day.

‘As a company we went down the path of adopting quality management systems as long ago as the 1980s,’ Paul recalls. ‘As we continued to develop systems for managing each aspect of the home building process, we realised the model was highly replicable and could create an excellent business opportunity for other people throughout the country.’

In keeping with their quality focus, Paul and his wife Debbie appointed leading specialists Franchize Consultants (NZ) Ltd to document the comprehensive business systems for franchisees. That was in 2002 and it clearly worked: ‘Since then we have grown to have ten successful franchisees and have seen some make a nice capital gain when they moved on because they had a well-managed business and a valuable brand,’ Paul says. ‘We always intended each franchise’s value to grow and that’s evidence of success. Now we are looking for more franchisees to take Landmark Homes to new areas around the country.’

Business Skills Not Building SkillsThe ideal Landmark Homes franchisee will be success-oriented, motivated and enthusiastic, Paul says. ‘When we interview potential franchisees, we look for previous indicators of success. These aren’t just experience-based skills such as building industry knowledge, but key personality traits. The desire to provide exceptional customer service is as important to us as core business skills.

‘While the majority of our franchisees come from building or industry-associated backgrounds, this isn’t essential as all the trade skills are contracted out. That leaves the franchisee free to work on their business rather than in it, to maximise its potential and expand it into an asset they can ultimately sell on.’

Landmark Homes’ company motto is “Don’t build a house... build a Landmark.” As Debbie says, ‘We are not into volume construction – our focus is on excellent design, producing homes that people love to live in. I have spent many years on the customer services area of the company while Paul has been deeply involved in almost every aspect of the industry. His philosophy is “do it right first time.” This has carried over to areas such as his involvement in the Master Builders Association, being chairman of the National Housing Committee and many other roles. It’s those years of experience, as well as the systems, support, training and marketing, that new franchisees can rely upon.’

Something SpecialCoralie and Stephen Pollard became Landmark Homes franchisees in Canterbury in 2007. ‘We looked at lots of different options before choosing the Landmark opportunity,’ says Stephen. ‘The unique product was a big draw

– most of the group home builders offer the same run-of-the-mill designs, but Landmark offered that little bit extra, something special for the local market. But there was also the added bonus of becoming part of such a well-established, well-developed franchise group. There are so many benefits that come from that.

‘A distinguishing feature of the Landmark brand is that it reaches across the market from simple designs to high-end residences,’ Stephen continues. ‘This allows us to build on smaller sections, high-density sites, hill sites and lifestyle blocks for a diverse range of clients. Having such a flexible package reduces the risk of focusing on any one market.

‘We had excellent advice from our franchisor throughout setting up our business, including choosing a site and designing a new show home,’ says Coralie. ‘The franchise is a strong network of people who all work together to make the company a successful and fun organisation to be a part of, and Paul, Debbie and the team take great pride in all our individual achievements.’

Affordable Package, Excellent ReturnsLandmark Homes are currently seeking around 10 more franchisees nationwide with a surprisingly accessible offer. ‘The total investment is $175,000 but you require only $50,000 cash up-front,’ explains Paul. ‘This covers comprehensive training for you and your team in sales, business planning, operations management and our advanced software packages. These include pricing, ordering, accounting and back-costing systems, client management and computer-aided draughting for our extensive plan library. Targeted earnings are well into six figures.’

New franchisees commence with an intensive training programme to familiarise themselves with the Landmark package, followed by ongoing training and support as they start to establish the business in their own exclusive territory. There’s also a showhome development package which has been developed with the support of suppliers to enable franchisees to demonstrate the Landmark Homes quality to prospective customers.

‘As members of the Franchise Association and Registered Master Builders, we at Landmark have a strong business ethic,’ says Debbie. ‘We strongly believe that to create a successful business you need a successful team, so we have a strong focus on recruiting great people as franchisees. To find out more, give Paul a call. We’d love to tell you more about the people who make Landmark Homes so successful – and how you could be part of it.’

Landmark Homes need more franchisees to satisfy a discerning market


Find more info at franchise.co.nz - Search: Landmark Homes

Find more info at franchise.co.nz - Search: Landmark Homes

home builders MAKING THEIR MARK

Advertiser InfoLandmark Homes NZ LtdPO Box 500, Tauranga 3140www.landmarkhomes.co.nzContactPaul ClarkeP 0-7-578 2295M 0274 751 [email protected]

Paul and Debbie Clarke (above): ‘Don’t build a house, build a Landmark!’

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Xpresso Delight provides quality coffee to the workplace and quality returns to franchisees

delighted clientsDELIGHTED INVESTORS


21

⇒ Xpresso Delight is a coffee business with a difference. There are no premises, no vans, no staff and no limits to growth. Instead,

franchisees place sophisticated coffee machines into workplaces where they are popular with staff and employers alike. ‘Our machines can save everyone a lot of time and money,’ explains Xpresso Delight franchisee David Newman. ‘Staff don’t have to take 20 minutes to pop out to the local café and they save at least two-thirds of the cost with every cup. It’s good coffee, too,’ he adds.

David knows about quality, having trained as a chef at the famous Antoine’s restaurant in Parnell. From there, he went on to run a variety of restaurants and hotels and generally be a trouble-shooter in the industry. ‘I’d go into restaurants with good turnover but no profit and turn them into saleable ventures,’ he says. ‘I then spent about twelve years in private catering, but my wife Amanda and I decided we’d had enough of the late nights and long hours of the catering trade. We wanted a business that would give us a better lifestyle.’

David and Amanda identified profitability, flexibility and working from home as their key requirements. ‘We looked at several franchises but until we found Xpresso Delight we saw nothing suitable within our budget.’

Xpresso Delight was founded in Australia nine years ago and provides high quality Swiss-built coffee machines for offices and institutions that don’t want the capital outlay and hassle of providing their own. The machines deliver a full menu of café-quality coffees: the 100% Arabica beans are individually-ground for each cup and real fresh milk is blended or steamed according to the type of coffee chosen.

Flexible Business, Good MarginsDavid and Amanda bought their Xpresso Delight franchise in early 2012. ‘We paid $75,000, which included five machines as well as the franchise fee and full training,’ says David. ‘Since then, we’ve doubled our number of machines and are delighted with how well the franchise works. It’s not hard to find clients: no-one is locked into long-term contracts, which is popular with customers, and it also means if we find a machine isn’t selling enough coffees to make it worthwhile, we can move it to a different location. We can even do short-term events – over the winter, we supply a machine to a rugby club one day a week, and we will do any kind of function for a minimum of $100.

‘The ideal client has large numbers of staff, but good quality coffee is always popular and even smaller locations can produce a surprisingly good turnover. Margins are good – the business runs at about 20 percent cost of sales and our return on investment per annum has worked out at 50 percent. We get our freedom, too. We reckon to spend one day per week on marketing and one day servicing the machines – they only require a good clean and a flush through the system every 1000 coffees. We guarantee a four-hour turn round in the event of breakdown or replacement but that is very rarely called upon.’

A great attraction of the Xpresso Delight franchise is that there are no limited areas. ‘So although we’re based on Auckland’s North Shore, we can have clients anywhere,’ says David. ‘For example, we have a major client with offices in the city as well as the Shore and we supply both premises. That provides continuity to the client and means if they move or add more offices, they’ll still come to us. It also gives

us the freedom to grow our business where and when we choose.’

There are currently 17 Xpresso Delight franchisees in the country and NZ master agent Allan Parker says, ‘There are opportunities for many more – wherever you’re based. This is a business that offers great rewards to people who want an investment that can provide a real work/life balance. If you are motivated and out-going, and you like the idea of owning machines that do most of the work, get in touch with me today.’

Find more info at franchise.co.nz - Search: Xpresso Delight

Amanda and David Newman: ‘Xpresso Delight gives us good margins and freedom’

*based on the average Xpresso Delight franchisee earnings

Passive Income with Guaranteed RETURNS

For information contact Allan Parker 021 875 431

www.xpressodelight.co.nz

Work ONLY 1 day a week in thebooming coffee market and earnbetter than the national average wage*

If you ever wanted to own your own business, but didn't want to work the usual 60 - 70 hours per week required... Well now you don't have to. Introducing Xpresso Delight a one day a week business that returns a normal weeks worth of five days labouring, with a guaranteed minimum 40% revenue return on investment.

This is a limited franchise opportunity with:• Greater than 65% gross profit margins.• 177 Franchisees in 8 years and growing fast.• Capital investment from $69,950 + GST.

Xpresso Delight were winners of the 2008 Westpac Franchise NZ Awards in the Food and Beverage section:1. Franchisee of the year Xpresso Delight Auckland2. Franchise System of the year Xpresso Delight NZ Ltd

Join Australia’s 2nd Fastest Growing Franchiseas listed in BRW Magazine - January 2008

Magazine.pdf 22/5/09 7:28:22 AM

Advertiser InfoXpresso DelightPO Box 23 691, Hunters Corner, Aucklandwww.xpressodelight.co.nzContactAllan ParkerP 0-9-278 1589M 021 875 [email protected]

23

⇒ It’s not about whether you win, lose, or draw, but how you compete that really counts. That’s what it says on the Frontrunner

website, and it applies to the sports retailer’s franchisees as much as its customers. It’s an attitude that has seen the South Island-based chain not just survive but thrive in recent years, despite the GFC, the retail slump and the Canterbury earthquakes. Now Frontrunner is looking to grow even more, with a choice of established company-owned stores ready to be franchised for the first time, new sites available and a master franchisee opportunity for the North Island.

‘One of the reasons we’ve done so well is that we’re not a rigid, inflexible system,’ says Frontrunner founder, Laurie Blyth. ‘We recognise that sport is about passion, energy and challenge so our franchise encourages it. All nine stores are free to choose the products they know from experience will sell well in their specific areas. For example, our Bush Inn store in Christchurch is run by professional tennis coach Alistair Chapman, who excels in racquets, while the Queenstown store caters to a big tourist market across two very different seasons; Ashburton does the AvantiPro bike system line and there are many other such adjustments in the local marketing strategy. The system has been designed to be flexible on the back of 40 years’ experience.’

Owner/Operators Make All The DifferenceLaurie, a former professional soccer player, founded Frontrunner as a store specialising in running shoes. ‘Initially, all the outlets were company-owned, but I realised some years ago that by franchising them to

owner/operators as passionate as myself, they could do even better.’

Paul Garvie proves the point. He came to Queenstown from Scotland eight years ago for the skiing, ‘and I’m still here,’ he laughs. ‘I got to know Frontrunner when I went to buy shoes for a marathon in Dunedin. Laurie wanted to open a store in Queenstown and took me on as the manager. Five years ago I bought the store and have since doubled the turnover – despite the GFC. It really was a superb opportunity to be master of my own destiny and we have done so well I’ve bought another franchise developed by Laurie, a high-end fashion shoe brand called Issimo. Now I have two excellent stores in the town, and both are very profitable. I’ve bought a house now, and married an English woman – so I can never go back to Scotland,’ he jokes.

Alistair Chapman has been involved with the business since he was 16. ‘Eight years ago, my wife Hayley and I sold all our shares and bought the Frontrunner store I had been managing in Christchurch. It has been a highly successful move and a very profitable one, yet it’s not a difficult business to run. You just need to be good with people and able to build relationships. In addition to my tennis I coach rugby teams, and that is very much part of promoting the business. You have to be out there in the community – networking helps drives people to your door.

‘It is a great industry to be in as people who come to us are healthy, or wanting to be. We love it because we feel we can change people’s lives simply by putting them in the right shoes. I’m 50-plus now but if I had my time over I’d do it all again. We have the huge advantage of being such a flexible brand – the big retail chains don’t have that, and we’re doing very well on the difference.’

Existing Or New, North Or South?For now, though, the focus is on expanding the Frontrunner chain and moving to a fully-franchised format throughout New Zealand. ‘We are ready to sell five company-owned stores with established cashflow and profitability to owner/operators who will bring their own passion and local commitment to the brand,’ says Laurie. ‘They’re in a variety of locations and investment levels, and we’re also looking to open new stores around the country. Opening a brand new store would require capital of $150-$250,000, and we’re also happy to talk to owners of existing independent stores who are interested in converting to the Frontrunner brand. We can offer a proven, profitable formula that can help you achieve greater success as part of the group, ensuring focus, access and marketing strengths that cannot be achieved independently.’

And Laurie is looking for the right person or company to grow Frontrunner throughout the North Island. ‘We already have one store in New Plymouth, but the opportunity is much, much bigger,’ he says. ‘By appointing a master franchisee who knows the North Island retail scene, we can bring our own brand of energy to sporting communities around the country.

‘So whether you want an existing business or a new one, a conversion opportunity or a bigger challenge, if you’ve got the passion for sport and the passion for people, we want to hear from you. Call me now to find out what makes Frontrunner so successful.’

Passionate about sport? Frontrunner franchisees know how to take on a challenge and win

Franchise Opportunity: Retail

Find more info at franchise.co.nz - Search: Frontrunner

KNOWING THE MARKETpays off for local sports stores

Advertiser InfoFrontrunnerPO Box 22 446, High Street, Christchurchwww.thefrontrunner.co.nzContactLaurie BlythP 0-3-348 4768M 027 664 [email protected]

Frontrunner stores all offer a blend of equipment, sports and social wear designed to havemaximum appeal in their local market


the essential INGREDIENTS FOR SUCCESS

Buying A Franchise: What To Look For

⇒ Buy a good franchise and you stand every chance of success. All the effort you put into developing and marketing your new business will be

directed towards activities that really work, offering a product or service that people really want. Buy a flawed franchise and you’ll use all your energies trying to overcome the flaws; worse, your efforts might just multiply problems you can do nothing about. That’s why you need to choose your opportunity carefully.

But if you’re new to franchising – or even new to business – how do you make that choice? What are the differences that make one franchise successful while another one struggles? In the following article, we share some of the ingredients that make up a quality franchise system.

The key ingredients that make up a quality franchise can be broadly divided into four main categories. These are:

• The franchise • Ongoing business management• Establishing new franchisees • The culture

Let’s look at each of these in turn.

The FranchiseFor any business to succeed, it must provide a product or service that people actually want, at a price they are willing to pay, and which delivers a profit to the business owner after all costs are taken into account. For that business to be successfully franchised, it must be capable of being reproduced in other locations and run by other people – the franchisees. Crucially, the level of profitability must be high enough that both the franchisor and franchisee can make a fair income from the business. The key ingredients here are:

Proven product or service – If you are looking at any franchise, you need to be certain that the main product or service is a popular one with a real market. If the business has been operating for some time that should be quite easy to confirm. Talk to the franchisor, to franchisees and to customers. Have a look online to see what people are saying and what feedback they give about the product or service versus those of its competitors.

Real market – Successful franchises not only have a great product or service; they have a large enough market to sell it at a profit on an ongoing basis. New Zealand has a small population and if a product only appeals to a niche market then it may not work here – even if it is successful overseas. But be aware that new niches are developing all the time. Concepts such as Noodle Canteen would probably not have worked 15 years ago but changing demographics and new eating habits have made it viable now. Equally, new technologies and even new legislation constantly open up new opportunities. For example, Fastway Couriers started after the deregulation of the postal service, and Telcoinabox after deregulation of the telecommunication industry.

Strong brand – For a business to attract customers, it has to communicate what it stocks or what it does, and what advantages it offers compared to others in the same market: price, service, quality, convenience, range or whatever. Having a well-known brand means that the business can short-cut that communication. If you see the McDonald’s logo, you know it stands for speed, cleanliness and a value range. Burger Fuel, on the other hand, offers a slower experience but a gourmet product. In either case, if you open a new burger restaurant with one of those names above the door, you will have a ready-made fan base. The stronger the brand, the more the franchise is worth – providing that it has the rest of the ingredients for success in place. A big customer base is only worth having if every sale makes a worthwhile profit. Which bring us on to…

How do you tell the difference between a good opportunity and a great one? Simon Lord looks at what quality franchises have in common


Proven business model – Good franchises know what a franchisee needs to achieve in order to be successful, and have proven it across multiple locations. They have target percentages that have to be met in key areas such as rent, staff costs, power bills, fuel costs, wastage and so on. They have target figures for foot or vehicle traffic past a location, or the population numbers and type within a particular territory. With this information, they can evaluate the probable success of any new venture and if the numbers don’t stack up, they won’t proceed – whatever the would-be franchisee might think. If the numbers do stack up, they are able to give the franchisee a good indication of the level of sales they need to achieve in order to build a viable business.

Record of growth – No business can go on growing constantly and for many businesses growth is restricted by our market size. Even so, quality franchises can demonstrate a track record of steady growth in outlet numbers and/or outlet turnover. In the case of a new franchise, it should have a carefully-researched feasibility study and business plan that shows how this will be achieved. Of course, every franchise will have its setbacks now and then, but they should be able to demonstrate overall growth.

Financially healthy franchisor – For a franchisee to succeed they must be on a sound financial footing with adequate finance and borrowing capability in place. The same applies to the franchisor – if the franchisor is not sound, the investment of all the individual franchisees could be in danger. A good franchisor will provide would-be franchisees with a viability statement with key financial information and/or an independent audit. In fact, it is a requirement for members of the Franchise Association of New Zealand to include this within the disclosure document.

Establishing New FranchiseesIf the franchise you are looking at has all the above ingredients, that’s a good sign. Now you need to look at how the franchisor can help you establish your own business as a franchisee. Once again, there are some key elements that quality franchisors will offer:

Recruitment procedures – These vary greatly between franchises, but the best franchises have systems in place to ensure that the franchisee is selected for their ability to succeed and receives all the information necessary for them to make up their mind about the business. Part of this process is helping the would-be franchisee have a clear understanding of their role in the business and realistic expectations of what they can hope to achieve.

Initial training – When you buy a franchise, the chances are that you will be moving into a business – and possibly an entire industry – of which you have little or no experience. That need not be a problem as long as the franchisor has a good training programme in place. Franchisees are required to take in an enormous amount of information of varying types in order to learn not just how to operate the business (make pizzas, mow lawns or whatever it might be) but how to market it, manage it and handle the administrative and time-management functions that come with being self-employed. A good franchise does not dump all this information on the trainee at once, but provides a series of stages that allow the franchisee to become comfortable in all their various roles before, during and after opening their business (see page 52). They also provide manuals to refer to in the future.

Site Selection – Because the franchisor has established various figures and percentages that they know will make their business model work, they can accurately assess the potential value of any site. I recently talked to a very successful franchisee who had a very successful business in a particular location. When the circumstances of that location changed, the business model became unsustainable. That was not the fault of the franchisee or the franchisor, so there was no point crying about it – with the franchisor’s assistance, he

simply found a new location where the model would work. Good franchisors can calculate whether a location is realistic.

Systems documentation – A good franchise relies upon using procedures which are the result of years of learning, development, fine-tuning and experimentation. These systems need to be properly taught by franchisors to franchisees, and by franchisees to staff, in order to ensure that the customer’s expectations of the franchise are met and that the franchisee is operating in a safe, efficient and profitable manner. Quality franchises document their systems in a way that franchisees can easily follow.

Information management – As we said above, a quality business model means knowing what the franchisee needs to achieve in terms of both costs and sales in order to be profitable (see David Campbell’s article on page 34). However, this has no value unless you can measure the same figures that you are actually achieving in your own franchised unit on a regular basis and compare them with the targets, and with the figures being achieved in other comparable units of the same franchise. This is called benchmarking. For it to be useful, the franchise has to have good information systems in place that are applied consistently throughout the franchise.

Purchasing power – Large franchises often have considerable purchasing power; quality franchises make the most of that power to offer real competitive advantages to their franchisees. Purchasing power is not all about getting the lowest possible price: it’s also about terms, service, marketing assistance, rebates and many other factors. A wise franchisor mixes all these elements to get the best possible outcome for the franchise. McDonald’s, for example, regards its ‘family of suppliers’ as a fundamental part of its business – it expects a lot, it gives a lot and it believes in long-term relationships.

Transparency on fees – Whatever the financial relationships between franchisors, franchisees and suppliers, good franchisors reduce the possibility of confrontation by ensuring that any rebates, commissions, mark-ups or contributions to marketing funds are not concealed from franchisees.

Structure – Quality franchisors believe that in order for them to be successful, they need to ensure that their franchisees are successful. That is not to say that they have never had a franchisee fail – franchises can run into all sorts of problems. What it does mean is that they have a substantial proportion of successful and satisfied franchisees who have proven that the model works and that the business is structured in a way that enables franchisees to make a fair return on their investment and labour.

Ongoing Business ManagementHaving the right product, the right people, the right business model and the right locations are all vital parts of establishing a new business, but ongoing success depends on continual input and response to change by both the

franchisor and franchisee.

Re-investing in the business – Good franchises have always had a policy of re-investing in their businesses through product research, systems upgrades, adoption of new technology and other forms of support and marketing. Similarly, they have insisted upon franchisees upgrading their own premises or systems on a regular basis (you’ll find some examples of franchises who have done that in the following pages). As Daniel Cloete of Westpac has commented, franchises that reinvested during the economic downturn now find themselves in a very strong position with increased market share and improved relationships with both customers and franchisees.

Competitive edge – New competitors come and go, markets change, customers’ tastes change. Good franchises can demonstrate a solid track record of managing issues and opportunities well, of learning from past mistakes and maintaining their advantage over competitors.

New technologies – Technology can be a great way to waste time and money.

To work out whether any particular franchise really is a quality franchise, you’ll need to do some research and ask lots of questions. There are many helpful articles on the Franchise New Zealand website – here are four of the most important:

250 Questions To Ask Your Franchisor – A comprehensive list of questions to help potential buyers evaluate both the franchise opportunity and the franchisor company. www.franchise.co.nz/article/view/77

50 Questions To Ask Franchisees – If you want to know what a franchise is really like, you need to talk to the people who are already operating it. www.franchise.co.nz/article/view/935

Doing The Sums On Buying A Franchise – How do you evaluate a franchise from a financial point of view? A case study of a real-life business opportunity. www.franchise.co.nz/article/view/1124

Find The Right Franchise – A handy step-by-step guide to choosing the franchise that best suits your own needs. www.franchise.co.nz/article/view/639

Quick Tips – How To Research A Franchise

⇒QuickTips


Buying A Franchise: What To Look For

Good franchises adopt new technology early when it can be demonstrated to provide real business advantages for franchisees. Carpet One, for example, introduced a hand-held device for franchisees that combined measuring, quoting and production management functions. It saved time and money, increased accuracy and increased sales opportunities. Columbus Coffee created a program that takes sales information straight from the till to create a management ‘dashboard’ that requires no extra information input. This is hugely valuable for information management and benchmarking (see above).

Management of performance – Measuring and benchmarking franchisee performance is only part of the challenge. A quality franchisor will have procedures in place to monitor and compare all that information, to spot trends and anomalies and to draw issues to the attention of individual franchisees at an early stage. It has to be said that while franchisors can offer good advice, franchisees are not always willing or able to take it. That’s one reason why, even in the best franchises, you will always find a small percentage of under-performing franchisees. It’s also why good franchisors help poor performers to get out of the business.

Auditing of standards – The value of any franchise lies in its reputation for consistency and reliability, whatever product or service it offers. That’s why good franchises have various auditing procedures in place to ensure that every franchisee is meeting the required standards on everything from product quality to service time, image, cleanliness, layout, uniform and many other key measures. This will be managed through personal visits, mystery shoppers, technology (the managing director of McDonald’s has a screen upon his desk showing service times at every drive-thru in New Zealand) and other systems.

Support – Most franchises offer some form of ongoing support to their franchisees at different levels, but the best always go beyond the basic in-store consultations. A few weeks ago, I attended a franchisee conference where the franchisor had brought in an expert in retail planning to talk about how supermarkets plan the layout of products on their shelves. The franchisees operate vending machines that carry maybe only 25-30 different products, but the supermarket experience helped them consider how best to maximise sales and stimulated an incredibly lively debate. That sort of outside contribution is just part of the broader support that quality franchisors offer franchisees. Good support is not just about encouraging operational excellence – it’s about providing encouragement and assistance with sales

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skills, marketing, profitability, cash-flow management, calculating break-even, cost control, security, personnel management, insurance, staff recruitment and training, goal setting, business planning and so much more. It’s about ongoing education and improvement.

The CultureThe final characteristic that distinguishes quality franchises from the rest is the culture: the mood within the franchise, the sharing of common aims and ideals and the level of trust that exists between franchisor and franchisees that each will do their best for the good of all concerned. This is developed in a number of ways:

Aligned expectations – Good franchisors ensure that new franchisees have a clear understanding of their roles and responsibilities, along with realistic expectations of what they can hope to achieve in the franchise. This helps to build trust right from the start.

Communication – Having a variety of communication tools helps keep everyone informed and on target, and helps to prevent misunderstandings. Phone calls, emails, regular meetings, conferences and visits all help. Quality franchises also encourage both formal and informal communication between franchisees, with intranets and online discussion boards proving especially valuable in systems where franchisees may be far apart.

Franchise Advisory Councils – Franchisee consultation and participation in strategic planning is actively welcomed by the best franchises through advisory councils and, in the larger franchises, committees on sub-topics such as marketing. Involving franchisees in decision making not only enables a wider understanding of the issues that the franchise faces; it encourages buy-in to the decisions and produces better results.

Dispute management – All franchises experience disputes occasionally. Franchising is about business and personal relationships, and relationships can go wrong. The mark of a quality franchise is not that it doesn’t have disputes, but how it handles those disputes when they arise. Good franchisors respond quickly, listen to issues and seek early agreement on the way forward. If agreement cannot be reached, they seek mediation. However, if there is a problem that affects the franchise as a whole, they take firm and decisive action to protect the brand and the investment of other franchisees (see David Munn’s article on page 66).

Confidence in leadership – According to Greg Nathan of the Franchise Relationships Institute, ‘Effective leadership is the single most important factor in the long-term success of a franchise network.’ The market is constantly changing and no franchisor will make the right decision 100 percent of the time. Even within the same system, what works for one franchisee will not work for another. But if the franchise has a leader who can set a clear direction and communicate it to everyone involved, who is seen to listen to franchisees’ concerns and is trusted by them to deal in an honest and straightforward fashion, it will enjoy a culture that makes facing the challenges of business life a much more positive – and successful – experience for all concerned.

It’s important that a new franchisee is familiar – and happy – with the culture of the franchise before they finally decide to buy the business. If you are comfortable with your new colleagues and share similar goals, you are far more likely to achieve your ambitions.

It’s About SecurityThe quality of a franchise is not measured by immediate financial return. If you were to buy a McDonald’s franchise, you might be surprised to learn that you won’t instantly become a millionaire. In fact, you’d probably find the first five years quite tough as you get to grips with running a complex business in a demanding market. But after that, you’d start to earn well, and five years later you might be very happy indeed. Along the way, you could be confident that you were getting great advice, great deals and great systems to help you make the most of your investment. You could also be confident that, however the market changed, someone would be monitoring it for you and thinking up ways to make the most of each new opportunity.

The message, then, is that buying a quality franchise won’t necessarily make you rich quick, but it will provide increased security and reduce the risks involved in starting up your own business. It will also make it easier to raise finance, manage your business and maximise the return on your investment. Above all, it will help you enjoy the experience. That’s why it’s worth looking for a franchise that has all the right ingredients.

About the AuthorSimon Lord is editor of Franchise New Zealand and has worked in franchising for over 30 years. Inclusion of any franchise system by name within this article does not imply endorsement by the author or publisher.

29

⇒ We live in a social media society. Customers are more aware of their options than before, more engaged with their purchases and more

likely to share their choices and experiences with others. It’s affected the way many businesses operate and it’s created new opportunities, too; Burger Fixx is one of them.

‘Burgers have been so popular over the years for many reasons,’ says Ned Bhana of Burger Fixx. ‘They’re quick, convenient, filling and can be eaten almost anywhere. But everyone has different ideas about what goes in the perfect burger so we thought, what if you give the customer choice? Provide the perfect bun or wrap, the perfect patty and a range of sauces then let the customer choose from a range of fillings such as crispy fresh lettuce, tomato, onion, beetroot, cucumber, carrot, gherkin, jalapenos – the works. We realised it was an idea waiting to happen.’

‘We’ is Ned and his brother Jack, who both have food service and marketing backgrounds, and their long-time friend Craig Alexander, who is not only a highly-experienced lawyer but has been involved in a number of successful business start-ups. Together, they embarked upon an 18-month programme of brand, product and franchise system development to prove it was more than just a bright idea.

‘We recognised at the start that while self-selecting fillings would be popular, that alone wouldn’t be enough to base a business on. There had to be additional competitive benefits for consumers and franchisees. An early decision was to ensure Burger Fixx would appeal to those pursuing active, healthy lifestyles so Burger Fixx is a fryer-free zone with all patties, buns and wraps oven-cooked. We also decided to provide a choice of buns, four types of patty including vegetarian and a range of nine sauces. And to broaden our appeal, we added traditional fish and chips to the menu as well – oven-cooked, of course.’

Popular, Competitive, ProfitableThe proof of the pudding is in the eating, as they say, so in January 2013 Burger Fixx opened a pilot outlet in the food court at Auckland’s Downtown Shopping Centre. ‘This enabled us to gauge the appeal of our fresh and vibrant branding, test the efficiency of the store layout and fine-tune operations and such areas as staffing numbers,’ Ned says. ‘Above all, we needed to see what customers thought. We were delighted! Burger Fixx

was – and continues to be – extremely well-received, with excellent sales and high interest.

‘The response is all the more rewarding considering we are sandwiched between McDonalds and Burger King. This makes it very easy for people to compare value. The average chicken burger combo with medium chips and soft drink is $9.90. For that you get a 70 gram patty, three fillings and deep fried chips. The Burger Fixx chicken burger combo is $11.90 for an oven-cooked 100 to 115 gram patty, a choice of buns or wraps, two sauces and their choice of fillings, drink and oven-baked chips. It’s all made from fresh ingredients right in front of them so people can really see the difference – and clearly, they like what they see. They can see the business potential, too – a couple of customers are already talking to us about franchise opportunities.’

And Burger Fixx has international aspirations, too – a second outlet has now opened in Perth, WA and is proving that the concept is transportable.

$110,000 Incentive For First FranchiseesBurger Fixx was planned as a franchise right from the start. ‘We’ve created a turn-key operation that includes full training, systems, marketing material and on-going franchisor support. Everything is as straightforward as possible for franchisees with carefully-developed processes and ‘one stop’ supply relationships with highly reputable, nationwide companies,’ says Ned.

The total investment to establish a Burger Fixx outlet is around $330,000 +gst, but to help get the chain established the first four franchisees will each get a massive $110,000 discount.

The Downtown Auckland location was deliberately chosen to give Burger Fixx high visibility and get the brand’s name out there. ‘For new stores, we are considering many available locations currently including shopping strips and stand-alone buildings. We provide help with finding and evaluating suitable locations and Burger Fixx is designed to be operated from as little as 40sqm, keeping rents down to further improve profitability.’

Ned says that Burger Fixx has been designed to suit both hands-on owner/operators and investors who want to run one or more outlets under management. ‘We’ve proved that Burger Fixx is a home-grown franchise with all the right ingredients,’ says Ned. ‘Now we’re looking for single and multiple franchisees to own their own businesses offering potentially high returns.

‘But don’t just read about it – go and see Burger Fixx for yourself or, if you can’t get to Auckland, visit our website then give us a call. You’ll find it’s a fresh new approach to the burger business that’s ready to win fans all over New Zealand.’

Healthy fast food chain Burger Fixx offers huge incentive to attract first franchisees


Find more info at franchise.co.nz - Search: Burger Fixx

Find more info at franchise.co.nz - Search: Burger Fixx

GETTING A FIXX of healthy burgers

What would you like in your burger? At Burger Fixx, you choose - and it’s all made just as you like it. The store design (below) reflects the fresh and healthy image

Advertiser InfoBurger FixxPO Box 56 054, Dominion Road, Auckland 1446www.burgerfixx.co.nzContactGreg Mullins Licensed (REAA2008)

Link Business Broking LtdP 0-9-555 6029M 021 943 [email protected]

• Therentduringthesametime(exceptwheretheyhavenegotiatedarent-freeperiod)

• Thetimeandcosttheconsentprocessmaytake.• Workingcapitalforotherpre-andpost-openingexpensesaswellaslegal

fees.Inmostinstances,retail/foodoutletstendtobeoverstaffedduringthelaunchphasesothereareadditionalwages.Therewillalsobeinitialmarketingcosts.

• Insurancesandlicensingcosts.• AlthoughonecaneventuallyclaimtheGSTcomponentbackonalot

ofexpenditure,rememberthatthisalsoneedstobefundedinthemeantime.

Insomebusinessmodels,thebusinessmayneed6-12monthstoreachbreak-even.Thismeansthatthefranchiseehastobeabletofundthebalanceoftheexpensesforaconsiderableperiod.It’sbettertoknowhowmuchyouwillneed,andhavetheappropriatefundingstrategiesinplacebeforeyoustart,tosaveworriesandsurpriseslateron.

Guarantees and Rental BondsAnotheraspectthatisregularlyrequiredthesedays,buttendstobeignoredbypotentialfranchisees(andtheirfinancialadvisors)untilthelastmoment,istheneedforguaranteeslikerental,stockorotherbonds.Thiscancreatehugeissueswithfunding.Someexamplesare:

Rental bonds.Itusedtobethatnobankguarantee(ornothingmorethanamonthortwoofrentinadvance)wasrequiredwhensigningalease.Thisisnolongerthecase,withrelativelylargerentalbondsbeingrequiredbysomelandlords,especiallyinmalllocations.

Now,arentalbond(or,insomecases,security depositorperformance bond)intheformofabankguaranteeisonlyevercalledonwhenthebusinesscan’taffordtopaytherent–inotherwords,whenit’sintroublefinancially.Thatmeansthat,ingeneral,therentalbondcan’tbesecuredagainstthebusinesssothefranchiseemayneedmorehardsecurityintheformofequityinapropertyorevenacashdeposit.Thisishardlyidealifyou’retryingtoinvestallpossiblefundsintotheset-upofthebusinessandsuddenlyneedtocomeupwithanother$20,000to$150,000.Effectively,itmeansa

⇒ Overthe20-plusyearsthatWestpachashadaspecialistfranchiseteam,we’vefoundanumberofareasthatcanbeoverlookedwhen

planningtobuyabusiness.Thesecanhaveasignificanteffectupontheresourcesneededtofundsomebusinesses,oronthecashflowofabusinessonceestablished.It’sthereforeworthexploringifanyoftheseapplytoyourchosenfranchisewhenyoustartgettingserious.

Set-up & Start-up CostsThecostsofgettingintoafranchisevaryalotdependingonthetypeofindustryyouchoose.Generally,servicefranchisestendtobelesscomplexandrequirelesscapital.Retailstores,fastfoodoutletsorrestaurantsrequireleasesandrelativelyexpensivefit-outs;theremaybeconstruction,remodelling,leaseholdimprovementsanddecoratingcosts.Therewillalsobeequipment,fixtures,stockandfit-out.Fit-outcontributionsfromthelandlordcancountersomeoftheseexpenses,butyouneedtoallowforalleventualities.

Otheritemsthatpeopletypicallyneglectwhendeterminingtheirfundingrequirementinclude:

• Theinterestonthefundsrequiredduringthebuildingprocess–afterall,itcanbealongperiodbeforeanymoneycomesin.


beware the HIDDENCOSTSDaniel Cloete of Westpac identifies some areas that can be overlooked when buying a franchise

Buying A Franchise: Finance

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franchiseeneedsmoreequitythanwaspreviouslythecase.

Guarantees for stock.Somesystemsorsuppliersnowrequirefranchiseestoprovideaguaranteetoacertainlevel-forexample,amonth’sstock,ortwodropsoffuelforapetrolstation.Inmanycases,thisalsocomesintheformofabankguarantee.Wherepaymentsaretakenbydirectdebit,thiscancreateadouble-fundingrequirement:thebusinessorfranchiseehastoarrangeanoverdraftwiththebanktocoveranydirectdebitsthatcomethroughandthenalsohastoprovideaguarantee.Theeffectisthatinsteadofbuyingthestockontermsandgettingthecashfromsellingitbeforeyouneedtopaythesupplier,youmayhavetosecureanoverdraftandprovideaguarantee!Thatwouldcertainlychangethebusinessmodelofmanyfranchises,aswellastheresourcesrequiredtoenableanewfranchiseetocomeonboard.

Other bonds.Theseincludeaspectssuchascustomsbondsforimporters,whicharelikelytoaffectfranchisorswhoimportdirectly.

Youwouldneedtocalculatetheadditionalequityrequirement(andcashflowimplication)ofanyguaranteesandrentalbondsrequired.Onewouldexpectfranchisorstotakethisintoaccountwhenprovidingtypicalset-upfiguresandforexperiencedfranchiseaccountantsandbankerstoaddressthis.

Tax PaymentsInexperiencedfranchiseesgoingintobusinesssometimesgetcaughtoutwhengoingintobusinessbynotkeepingup-to-datewithGSTorevenPAYEpayments.

AnevenbiggerproblemforthefranchisorsiswhenfranchiseesstarttousetheIRDasabankbynotpaying,ordelayingpaying,taxtofundlifestyleorotherexpenses.Thisalmostinevitablyhasabadoutcomewhenthebusinessgetsoverextendedandcan’tcatchup;penaltiesareleviedandthefranchiseeisintrouble.Thefranchisormaybesurprisedtofindthatafranchiseethatisdoingwellonsalescansuddenlyfallover,owingthesuppliersandthefranchisoralotofmoneyandwiththeIRDfirstinthequeuetogetpaid.

Forthisreasonmanyfranchisorswillhavetheiroperationsmanagersmonitortaxcompliance.Whenre-financinganexistingbusiness,thebankwillalsoasktheaccountantforproofthatthenormaltaxcycleisup-to-date.

Selling the BusinessThelastareathatisoftenunder-investigatedbyfranchisebuyersis,‘Whathappenswhenthetimecomestosell?’ThereareanumberofissuesthatinfluencewhatyoucangetforabusinesswhenyousellandIhaveseenvariousreasonsmakeasalefallthrough,including:

• Doesthebusinessneedarefitoristhereare-fitrequirementimminentinamall?

• Willthefranchisorapprovethepotentialbuyer?• Whattermisleftonthefranchiseagreementand/orcanthebuyergetan

extensionoranewagreement?• Isthereatransfer/trainingfeepayable?• Iftherearesign-writtenvehicles,inwhatconditionaretheyanddoesthe

franchiseagreementrequirethemtobereplacedsoon?

Oneotherareatobecautiousofisunder-reportedsales.Somefranchiseesthinkit’ssmart(albeitillegal)tounder-reportsalesinanattempttoavoidtaxandpercentage-basedfranchiseroyalties.Whenwantingtosellhowever,theystillwanttopdollar,basedon‘actual’ratherthanprofessedsales.Inthecurrentenvironment,however,buyersarerightlyalotmoreconservativeandlessinclinedtopayforunprovensales.Apartfromtheobviousdangersoftakingtheseller’swordforit,payingmorethanthefiguresjustifywillmakeitmoredifficulttoobtainfundingagainstthebusiness.

The Franchise AdvantageOfcourse,mostoftheitemsI’vementionedaboveapplytoallbusinesses,notjusttofranchises.Theadvantageofchoosingafranchiseisthat,ingeneral,experiencedfranchisorswillbeawareof–andhavesolutionsfor–manyoftheseissuesandwillbeabletoensurenewfranchiseesmakeallowancesforthemfromthestart.Bychoosingafranchisewhichhasstrongmanagementinformationsystems,andtakinggoodprofessionaladvice,franchiseescanalsohelptoguardthemselvesagainsttheunexpected.

Find more info at franchise.co.nz – Search: Westpac 31

Advertiser InfoDanielCloeteistheNationalFranchisingManagerforWestpac.YoucancontacttheWestpacFranchiseTeamon0800177007oremail:franchising@westpac.co.nzTheinformationcontainedinthisarticleisintendedasaguideonlyandisnotintendedasanexhaustivelistofmatterstobeconsidered.Personsenteringintofranchiseagreementsshouldseektheirownprofessionallegal,accountingandotheradvice.

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33

⇒ It might be early days for Small Business Accounting ‘newbie’ Cheryl Coombs, but she’s already finding that joining the franchise

is paying dividends as she establishes her new business in Timaru. ‘I’m getting an amazingly positive response from potential clients simply by pointing out that, just as they have the specialist knowledge and tools for their business, so SBA has the specialist tools to handle their statutory and administrative requirements. By taking advantage of the service we offer, they can free themselves up from paperwork to spend more time on what makes money.’

It’s an approach that has paid off immediately. The strategy is contributing a diverse range of businesses and individuals to Cheryl’s ever-growing client list, including a fishing contractor, a self-employed consultant, rental property owners, transport and trucking businesses and a beauty salon.

‘And as well as the walk-in clients attracted by our approachable shop-front location, I’m also investing in advertising to reach Timaru’s small- and medium-sized businesses,’ says Cheryl.

Hands-On ExperienceTalking with Cheryl, it very quickly becomes obvious that she doesn’t do things by halves. At the same time as being the administrative and accounting brain behind the North Island transport business she and husband Tim built from scratch and ran for 20 years, Cheryl is mother to five boys and still managed to find time for extramural studies in psychology and accounting. More recently, Cheryl spent three years managing finances for the Rangitikei District Council and, after selling the trucking business to move to Geraldine in South Canterbury, found herself commuting 100km a day to work at Ashburton District Council.

‘The work with the council was mostly managing contracts, taking me away from finance and my passion for people,’ recounts Cheryl. ‘It was a valuable learning experience, but after a while Tim told me that the SBA franchise in Ashburton was for sale – the idea ticked all the boxes for me. When I enquired, though, it had sold already. Although I was a bit

disappointed, the truth was I really wanted to be in business in Timaru. It’s closer to Geraldine and, as I now know for sure, Timaru is very welcoming and supportive of new businesses and business owners.’

Making It HappenSo the energetic and optimistic Mrs Coombs decided that, as SBA hadn’t yet arrived in Timaru, she would be the one to bring it there. ‘SBA’s inexpensive set fee monthly accounting packages enable clients to receive timely, accurate information. That really appealed to me, and I reckoned there was a real need for the service in Timaru. My first contact with SBA was in late December and it took me less than a month to do some pretty thorough due diligence, speak to a few SBA franchisees and make up my mind.

‘Going into this franchise I had to be prepared to back myself and make it happen. By the time franchisor Adam Parore flew down to meet with us in late January, we’d found suitable premises in Stafford Street. Most of February was spent doing the fit-out and signage, and I spent a week learning SBA’s systems and processes in Auckland with Angelina McCraith, the franchise’s general manager. We opened the doors in March and it’s been full-on ever since.’

One of the aspects that most appealed to Cheryl was the benefit of having a strong brand behind her. ‘But there was much more to it than just the name. I could also see tremendous value in the internet-based support and advice forum among SBA franchisees - a resource I regularly tap into. And I was impressed by SBA’s use of Banklink and other online software that enable franchisees to provide clients with the “real time” financial data they need to make informed decisions. We really do help people to manage their businesses better!’

Essential QualitiesA new SBA franchise can be established for $38,000 +gst franchise fee, plus fit-out costs. ‘No accounting qualifications are needed - just book-keeping, administration, small business or other financial experience,’ says Adam Parore. ‘Some tax experience is also valuable.’

And Cheryl adds her own list of essential qualities. ‘You also need a positive attitude, to be prepared to take a lead, back yourself and make it happen. But above all, you need to be a people person who can genuinely empathise with clients. You have new people walking through the door every day, and they have questions or problems. It’s so important for them to go away with a clear understanding of what’s what, rather than scratching their heads feeling bewildered.

‘If you can tick all those boxes, and you want to run your own business where you want to live, there’s every chance an SBA franchise will tick all your boxes too. Do what I did – give them a call.’

Bringing SBA to Timaru proves a sound decision

Franchise Opportunity: Business & Commercial

Find more info at franchise.co.nz - Search: Small Business Accounting

accounting franchise TICKS THE BOXES

Cheryl Coombs: ‘There’s much more to it than just the name – we really do help people to manage their businesses better.’

The new SBA in Stafford Street, Timaru, opened its doors in March and was soon serving a diverse range of local businesses.

Advertiser InfoSmall Business AccountingPO Box 47 818, Ponsonby, Aucklandwww.sba.co.nzContactAdam ParoreP 0-9-378 0934F 0-9-523 [email protected]


⇒ Research conducted by the Asia-Pacific Centre for Franchising Excellence at Griffith University in Queensland has shown that

nearly a quarter of the potential revenue in a franchise could be going unrealised. The Franchise Performance Metrics research identifies an average shortfall of 24 percent between the revenue that franchisors stated their model returned and the actual royalty revenue received from franchisees.

According to Professor Lorelle Frazer, ‘This evidence indicates either that some franchisors are unaware of the revenue in royalties their franchise model returns, or there is a significant amount of royalty skimming happening across franchise systems. Either way, tracking financial performance and up-skilling franchise field support professionals to focus on financial management in field visits can address this issue.’ And, as she points out, better financial management will ultimately improve the return on investment that franchisees receive for the benefit of all concerned.

This need is at the heart of a joint venture initiative developed by Griffith University and David Campbell, whose Avatar Consulting business has specialised in financial education for franchisees for many years. A special course, Franchise Field Financial Management Training has been developed to provide greater fiscal skill and understanding to field executive and management teams.

‘Avatar Consulting is seeing a growing demand for field managers, executive management and franchisees to gain a greater level of fiscal acumen and boost performance, especially in difficult economic environments,’ says David. ‘Franchise Field Financial Management Training is an intensive four-day course which focuses on franchise management fundamentals and franchisee profitability.’ What follows is a brief snapshot outlining some of those fundamentals and how we break them down into bite-size chunks for use with franchisees. The three areas covered here are:

1. Cash Impact 2. Cash Swing Factors 3. Keeping On Target

1. Cash Impact Cash is the fuel that underpins business sustainability, and is a lead indicator of problems with the business model. For a business to survive and thrive, it must have sufficient cash flowing in to meet all business and dependent personal expenditure. A business that shows a profitable result but which has difficulty paying its bills on time is already displaying early warning signs of problems. Experience suggests that such symptoms can often be missed by franchise support systems.

So what should franchisors look for? Some indicators are:

• Latepaymentsofroyaltiesand/ormarketinglevies.• Supplierpaymentsslowing.Doesthefranchisorhaveareporting

arrangement with suppliers that would identify this early? • Taxationissues.AreGSTandothertaxationpaymentsmadeontime

or are they paid late, thereby attracting penalties? Does the franchisor monitor this?

• Rentalarrears.Ifthefranchisorholdstheheadlease,thesewillsoonbespotted; if not, is there a reporting arrangement with landlords?

• Increasingdependencyoncreditcards.• Seekingordelayingtemporaryoverdrafts.• Sellingassets.

Cash Impacts There are four forces that determine whether an aeroplane will fly or not: Thrust, Lift, Drag and Weight. Get one or more of these wrong and the plane is in trouble. The same terms can also be used to describe the ability of a business to generate cash. These are:

Thrust. The thrust in a business comes from its sales. Any performance review should start with an analysis of sales trend history. Are sales declining, stagnating or growing?

Franchise Management: Financial Matters

How can franchisees improve their financial results quickly and simply? By using readily available information to help focus on the essentials, says David Campbell

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Lift. There is no point getting an increase in sales unless you also achieve lift in the business. That lift comes from improved Gross Margin. Under stress, the temptation is to increase sales by discounting, but this actually impacts on margins and helps to drive the business down.

Drag. The drag in the business is the external debt or other obligations that the owners or the franchisees are placing on the business to meet their own personal commitments, their lifestyle and any tax arrangements.

Weight. The cost load in the business, otherwise known as Operating Expenses. Is the business adjusting to the changing market by reducing staffing levels or other variable cost structures in order to keep costs at a sustainable percentage of the revenue?

In addition to these four forces is a fifth factor – timing, or Cash Swing. Cash Swing Factors are simply the variables that cause timing differentials in cash receipts. The swing factors are debtors, creditors, stock, and capital account movements.

By tracking sales and the margin made on those sales over the operating and personal expense load attached to the business, franchisees and franchisors can receive early warning of movements in the business.

The following table is an example of how to track Cash Flow impacts.

For example, if Sales Growth is increasing, it will require more cash to support increased debtors and inventory, so increased sales actually absorb cash. If not understood and planned for in advance, that can lead to problems. On the other hand, if sales are declining, cash will be released – which is not to say that there is more money to spend!

On the other hand, the Gross Margin indicator shows how an increasing Gross Profit margin percentage will release cash, but decreasing will absorb cash. Tracking these changes on a regular basis can enable franchisors to help franchisees stay out of trouble.

2. Cash Swing Factors It’s not just sales and margins that affect a business’s ability to operate – another critical aspect is the timing of when the money comes in and goes out, generally known as cash flow.

Stock (also called ‘inventory’), creditors and debtors all affect cash flow, so calculating their impact is an important analytical tool. The first step in the process is to convert stock, debtors and creditors into ‘days of sale’. For example, if annual sales = $365,000, then 1 day’s sales = $1,000. So if you are holding $10,000-worth of stock, it represents enough for 10 days’ sales.

The way this is usually expressed is via the following formula: Stock divided by Annual Sales multiplied by 365. The same formula can be used for debtors and creditors.

Here’s an exercise to show how useful this measurement can be:

A franchisee has annual sales of $800,000 ($2192 per day). The chart below left shows the cash days represented by stock of $22,000, debtors of $61,400 and creditors of $43,000.

But business conditions are changing, as the chart on the right shows. Although sales are remaining the same, stock is not being managed so effectively so it increases to 13 days ($29,000). Debtors aren’t paying so fast so they have drifted out from 28 days to 36 days, and suppliers are also hurting so creditors want to be paid sooner (after 16 days, not 20).

As you can see, all of these changes are absorbing extra cash, so what is the net result of those days movements?

The answer is that an additional 15 days’ worth of sales, or approximately $32,900 of additional cash, is required to fund the change in the business circumstances. This is the total effect of adding 3 days stock, 8 days in increased debtors and 4 days in paying bills earlier.

In order to meet its commitments and pay its own bills, wages, etc., the business now needs access to additional cash of $32,900. This may need to be funded by bank overdraft, bank loan or a further cash injection of owner’s funds.

Profit and Swing That additional cash requirement would be required even though the profits remained the same. But when cash flow pressures begin to arise, business owners often strive to increase sales using a price discount strategy. Unfortunately, that will also reduce the gross margin.

Using the same example, if the discounting strategy fails to increase real sales but reduces margin by 2 percent (cash impact $16,000) and costs increase by 3 percent due to lower labour productivity and increased promotional costs (cash impact $24,000), then there will be a massive profit impact. Without going further into the maths, the full cash impact on an annualised basis would now be $72,900 ($32.9k +$16k + $24k) – more than double. This highlights how unstructured or poorly conceived

helping franchisees achieve PEAK PERFORMANCE


Franchise Management: Financial Matters

strategies in response to cash flow pressures can actually amplify the impact on the cash flow of the business. The longer those impacts go unattended, the more difficult recovery will be.

3. Keeping On Target For franchise field staff to be able to help franchisees, they need a clear understanding both of the general demands or weaknesses that impact on their cash flow requirements, and the individual circumstances of each franchisee. Some franchisees may be loath to share what they see as personal information. However, it’s only once the true cash requirements of the business have been determined that targets can be set to get the business above the break-even point and generating positive cash.

When setting targets, it’s imperative for all involved to be able to understand the link between business fundamentals and achieving targets. Telling a franchisee that they need to lift sales by X or improve margins by Y can often seem unreasonable or unachievable to them. Franchisees working on the front line of customer service are sometimes not able to relate this style of target setting into what they have to do day-to-day. In our experience, a franchisee set a massive action plan will, in most cases, fail or lose sight of the target.

One invaluable source of information for franchisees and their franchise support team is ranking the franchisee’s performance across various key measures using data gained from other similar outlets within the franchise group. This is a powerful tool for establishing emerging trends before they become critical. Such information should be available monthly from the franchisor. A sample monthly performance summary follows:

Using the following template, the franchisee can quickly rank how their business is performing in four key segments on a monthly and Year-To-Date basis, as well as how the business is trending in each segment – up or down. This template has been taken from Avatar’s suite of action planning tools Six Steps to Better Business.

Hitting the Target The final stage of putting all this together is to create an Action Plan. As with measurements, action plans should be quick to agree and easy to understand. We recommend they take no longer than 15 minutes to generate and be kept to only one page.

The person completing the Action Plan – usually the franchisee, with the aid of their field support person – needs to be accountable and able to deliver on their objectives or they will struggle to hit the target. It’s also

important to ensure that targets are kept visible – out of sight is out of mind.

Bearing in mind the need to keep it simple and clear, target goals should be kept to two items at most, with no more than three or four subsets to that action. Here’s an example of a simple one-page Action Plan created by Avatar.

As you can see, the template requires franchisees to concentrate on just two items under Force for Focus – for example, Sales and Productivity. It then looks at the impacting drivers on the chosen areas, such as Product Mix or Average Spend, which can be used to set measurable targets. From there, it’s a matter of deciding the Action – for example, increasing average spend from $8.90 to $9.20 – the person responsible for making it happen, and the date by which it should be achieved. Simple! As with many things, it’s a matter of breaking a big task down into bite-size chunks.

The Importance of Fiscal Fitness By helping franchisees to understand cash impacts and swing factors, and helping them to set and achieve measurable goals, franchise support staff can go a long way to improving the financial performance of franchisees. The effect of this will be to increase not just franchisee returns but also franchisee satisfaction. Higher performing units will also sell for more when the time comes, thereby increasing return on investment.

All of these are positives not just for the franchisee but for the franchisor too. Remember at the beginning we reported that there was a difference of 24 percent between franchisor expectations and franchisee returns? By adopting the processes outlined above, that gap can be closed significantly and everyone involved can concentrate on the future.

About the AuthorDavid Campbell is director of Avatar Consulting and co-founder of the Franchise Field Financial Management Training course run in conjunction with Griffith University in Brisbane.

YTD Summary Table

Force for FocusSalesGross MarginOperating ExpensesProductivity

Impacting Driversie.Product/ServiceMixClientType/ClubPA%Average SpendClient Count

Actionie. Increase average hourly sale by $15.00 by doing...

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Dream Doors franchisees smash sales targets in first year

of staff including two full-time sales agents for his Christchurch business. ‘I was an electrical engineer with a global electronics company for many years and I’d always gravitated towards the marketing side,’ Adrian says. ‘But I knew nothing about kitchens so it’s been a steep learning curve over the past 12 months. The franchise has been great, though - the training is thorough, the products are excellent and the results speak for themselves!

‘If you can market, have organisational ability and enjoy helping people select the product and designs they want, then you can succeed in this industry. Being a people person is key – you have to enjoy being face-to-face with customers and getting your name out there. I’m always getting people saying they saw our TV advert or our vehicle on the road.’

Derek is keen to see more Dream Doors franchisees repeating the success of the Kays. ‘We have vacancies in both islands and Adrian and Tammy have shown what can be done so here’s a promise: I’m so confident of your success I’ll return your $30,000 franchise fee if you’re not satisfied after five years. Call me and find out more.’

⇒ Adrian and Tammy Kay had big goals for their first year in business as Dream Doors franchisees. ‘When I put the business case together

for the bank, I said we were aiming for $560,000 turnover in year one and $685,000 in year two,’ recalls Adrian. ‘Well, I got it wrong. In fact, we achieved a stunning $690,000 in our very first year so we’ve well and truly smashed that. Maybe in our second year, we’ll get near the million dollar mark!’

Franchisor Derek Lilly says that’s not an unreasonable goal, as the first half of the year included the start-up period. ‘In fact, two-thirds of Adrian and Tammy’s sales came in the second six months which included the traditionally slow December/January months. People ask, “Does the Dream Doors franchise work?” Well, with sales like that and profit margins of around 35 percent, I think the question has been well and truly answered.’

Dream Doors co-founder Derek brought the franchise to New Zealand from the UK in 2007. Now there are 10 franchisees around the country from Auckland to Wanaka ‘with more to come,’ Derek smiles. ‘Our philosophy is simple. Kitchens and bathrooms are the areas that most date in a house, yet the frameworks are usually sound – it’s generally only the doors, drawer fronts and work surfaces that get worn and look unfashionable. By replacing just those, we can give customers a brand new look for a fraction of the cost of full renovation.’

This approach has proved so popular that Adrian has taken on a small team

Advertiser InfoDream Doors (NZ) LtdPO Box 31, Lake Hawea 9345www.dreamdoors.co.nzContactDerek LillyP 0-3-443 5133P 0800 437 326M 027 213 [email protected]

Tammy and Adrian Kay: Aiming for a million dollars in year two

ANZ0763 - Business-Banking-A4P.indd 1 21/11/12 5:03 PM

39

⇒ Even on a good day, George Stephens

reckons it used to take him the best part of an hour of stop-start driving to get to work. Now this former fireman takes less than five minutes to reach his first customer. Since mid-April, George has been a Cafe2U mobile coffee franchisee and he’s loving it.

‘I might start at 6am, but after doing a daily round of 30 scheduled customer calls I finish about 1.30pm,’ smiles George. ‘After that, I’ve usually reached my daily turnover target and head home. I know other Cafe2U franchisees are doing even more but I’m lucky to be in a financial position where that suits me right now so I’m not under any pressure. And who knows what the future holds? Maybe I’ll do more, or take someone on for weekends, or even buy a second van to service more of the huge amount of potential business in my territory. It’s my choice, and that feels good.’

As frustrating as Auckland’s traffic can be, surely it wasn’t the only reason to give up 40 years in the Fire Service for an espresso machine. ‘You’re right,’ George agrees. ‘I spent my first 24 years with the Fire Service on the trucks. I then went into fire safety and education, but restructuring took me into an area of the service I didn’t much enjoy and I started thinking seriously about a career change. I’d attended various public events talking about fire safety and had always been impressed by how happy and positive coffee vendors were. I knew nothing about coffee, but I had a feeling it could be my future.

‘Then in January this year I heard about a seminar in Auckland being run by Cafe2U, the world’s largest mobile coffee franchise. After checking out the Cafe2U website and getting positive reports from my son-in-law in Australia, I decided to attend.’

Finding Out The BenefitsThe seminar proved to be the beginning of the end of George Stephens’ Fire Service career and the start of a whole new life. ‘Cafe2U seemed to tick all the boxes for me,’ George explains. ‘I enjoy meeting and talking with people, and Cafe2U meant I could do that and earn a living at the same time. As it was relatively new to New Zealand, Cafe2U could offer me an exclusive franchise territory around

where I live, so no more commuting. Cafe2U also offers real competitive benefits because it sells more than just coffee. It’s really a café on wheels offering a good range of sandwiches, muffins, pies and savouries. These are all provided by Cafe2U-approved local suppliers so it’s extra income for no more work.’

Two days after the seminar George signed a non-disclosure document to receive more information which he took to an accountant and lawyer who gave the franchise the ‘all-clear.’ He then completed an assessment with franchise recruitment manager John Stanton to ensure the business was a good match for him and he was a good match for the business, before putting down a refundable deposit on his chosen territory. He also spent a day on work experience with other Auckland franchisees. The result of all this? ‘I came away feeling better than ever about Cafe2U,’ says George.

Best Value Franchise‘The closer I got to signing on the dotted line, the more I could understand why the Australian Financial Review named Cafe2U “Australia’s best value franchise.” The $130,000 +gst investment includes a brand new Mercedes van, signwritten and fully fitted-out with a state-of-the-art espresso machine, food display fridge, warmer display unit and generator. I spent a full week in Australia where trainer Dino Demetriou made a barista of me – he’s a passionate person who obviously loves his job. To take away the nerves there’s an income guarantee of $2500 per week for the first two weeks, and to get you up to speed there’s the Cafe2U Acceleration Package. As a new franchisee, you are assigned a personal franchise development manager and business mentor, who comes out with you for two weeks on the road to get you started. Not only do they have a real talent for winning customers, but by using Cafe2U’s territory mapping technology they help you develop the most efficient route possible right from the start.’

In fact, the support went even further when George’s mother sadly passed away just a few days after he started his new venture. ‘My mentor, Sam, was superb and ran the business for me while we sorted things out and everyone was so helpful. It confirmed my feeling that the franchise really is like an extended family and I had made the right decision.’

At 59, George Stephens is the first to claim Cafe2U has brought him a new lease on life. His advice for anyone looking for a change is to look at a Cafe2U franchise. John Stanton agrees. ‘We have a huge range of areas available all over New Zealand so if you’re looking for a proven business with a real future, talk to us now to see if we’re right for each other,’ he invites.

Or as George Stephens simply puts it, ‘Cafe2U? U bet!’

Cafe2U? ‘U bet,’ says former fireman turned mobile barista


Find more info at franchise.co.nz - Search: Cafe2U

Find more info at franchise.co.nz - Search: Cafe2U

out of the fire,INTO A NEW FUTURE

Advertiser InfoCafe2U (NZ) Pty LtdPO Box 158, Shortland Street, Auckland 1140www.cafe2u.co.nzContactJohn StantonP 0508 004 [email protected]

People are always happy to see George arrive in his smart new Cafe2U van. ‘It’s really a cafe on wheels,’ he says.

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Receive assistance in building an effective business plan

Receive professional product, business and sales training

Receive a custom website with product catalogue

Offer a complete range of data, voice and mobile products people know and trust.

Have a web-based world-class billing, provisioning and customer relationship managment system

Receive monthly residual revenues (for the life of the customer contract)

Keep No stock, No store front and No territories

Have a dedicated account manager and operational support

Have minimum start-up costs

As a Telcoinabox Franchise you will...

Robert Harris Coffee Roasters was created by a man who demanded the best


41

⇒ Somewhere in New Zealand lies a book that’s the Holy Grail of local coffee connoisseurs. It could be tucked away on someone’s

shelf or in an attic or, tragically, it may have been consigned to a landfill or bonfire. What is this lost book? It’s the Robert Harris Book of Blends, a handwritten ledger of coffee blends and recipes collated by the founder of New Zealand’s best-loved coffee chain. Of course, the modern-day Robert Harris team have all their blends, old and new, carefully collated and filed on record but, like John Lennon’s or Bob Dylan’s handwritten songs, it would be nice to find the original.

Like all good legends, the story of the fabled book has been largely passed down by word-of-mouth, but Robert’s daughter, Zelda, has confirmed the authenticity of this tale. If you haven’t peeked into your attic or granny’s book collection for a while, it might pay to see if you have it in your possession.

So who was Robert Harris? He was born in 1897 in Sydney but lived most of his life in Hamilton. Known to all and sundry simply as Bob, he ran a hairdressers and tobacconist’s shop in the main street. According to his family, Robert was an all-rounder who played tennis, cricket, golf, rowing, bowls, was a keen life-saver and ‘always good at what he did.’ It’s hard to see where he found the time, but he was also a volunteer fire man and involved in the local operatic society. He loved being on stage and was also known for his artistic side, as his window displays proved. According to his family, ‘Everybody loved Bob.’

So how did he start in the coffee business? Well, he became interested in exotic foods and started a delicatessen which attracted a large immigrant customer base. He began selling coffee in a small way but soon became fascinated and eventually devoted his life to building what has become New Zealand’s leading brand of cafés and coffee.

The Legacy Lives OnRobert Harris died in 1974 but his legacy lives on in his brand, today operated by Cerebos-Greggs. There are over 40 cafés across the country bearing his name, each franchised to an owner/operator dedicated to bringing the true Robert Harris passion to his or her area. Many are owned by husband-and-wife teams or are family-run businesses.

‘Although every franchisee is an individual, bringing their own personality to their café, they are backed up by a highly-professional team,’ says Rod de Lisle, the company’s business development manager and himself a former franchisee. ‘These days, the Robert Harris book covers more than just blends: it includes everything you need to know about running a successful business from site selection and fit-out to training and ongoing support, menu development to management. It’s backed up with national marketing and buying power in everything from ingredients to insurance. Training is conducted to Hospitality Standards Institute level.

‘Along with the enormous support that Cerebos-Greggs invests in the brand, this means that you don’t need hospitality experience to become a franchisee. If owning your own café has always been your dream, we can make it happen.’

Investment levels vary depending on whether you choose an existing business, a new start-up or take over an independent café and convert it to the Robert Harris brand – often a popular option, according to Rod. ‘We’re currently looking for franchisees in Hamilton, Te Kuiti, Hawkes Bay, Dunedin and Invercargill to name just a few areas, and can help

you find the ideal opportunity for you. Contact me and let me know what you’re looking for.’

And Rod has a final few words of encouragement. ‘Today, Robert Harris is about delivering cafe and coffee experiences “Too good not to share” – staying true to its founder’s devotion to delivering consistent high quality. So if you are thinking of owning your own café, come and share a coffee with me and let’s talk. If you turn up with a battered hand-written book of coffee blends, you’ll be the most popular person in the land – and if not, you’ll still have the chance to write your own chapter in the rich history of Robert Harris.’

Find more info at franchise.co.nz - Search: Robert Harris Coffee Roasters

Advertiser InfoRobert Harris Coffee RoastersPO Box 58 095, Botany, Auckland, 2141www.robertharriscafé.co.nzContactRod de LisleP 0-9-274 2643M 0274 518 435rodd@robertharriscafé.co.nz

Robert Harris (above) founded more than the franchise that bears his name to this day – he was one of the creators of New Zealand’s café culture

the mystery ofTHE MISSING BLEND BOOK

TWO COFFEESif you please


Auckland couple find The Coffee Guy so good they buy a franchise each

42 Franchise New Zealand Volume 22 Issue 02 Winter 2013

out you go. The first coffee you pour, you’re making money.’ Of course, there’s a little more to it than that – apart from the dedicated training, new franchisees also receive on-the-ground support to help them build their morning workplace coffee rounds, as well as help finding suitable events to attend.

‘My daily run in Albany is so compact now I do under 30kms on some days,’ says Ian. ‘From a business point of view it’s all going nicely and you can add extra at the weekends. I’ve seen the sun come up over Devonport or Takapuna Beach a few times and I have to say, it doesn’t feel like work. I don’t think I’ve seen an unsmiling face yet!’

The Coffee Guy has recently become part of Retail Food Group (RFG), one of Australasia’s most experienced franchisors, which has a team of local experts to help franchisees every step of the way towards running a successful, profitable business. ‘We’re still looking for people all over New Zealand so give us a call,’ invites Megan. ‘Or two calls if you don’t want your partner to beat you to it…’

⇒ When Ian Herring fancied a change after 25 years in soft furnishings and roller blinds, it didn’t him take long to find The Coffee Guy.

But when he asked his partner, Andrea Gyde, for her opinion, the mobile espresso service appealed to her so much that she immediately bought a franchise for herself. ‘That hadn’t quite been the plan,’ Ian laughs. A year later, having seen how well Andrea had done and worked by her side at events from school netball to the Rugby World Cup, Ian followed her lead. Now there are two vans bearing The Coffee Guy name parked outside their North Shore home.

‘When Andrea went to do her initial training I went along so I could be her helper, and I got to know The Coffee Guy system pretty well,’ Ian says. ‘Then when I bought my own franchise 16 months ago I did the full course and since then we’ve had regular updates. We’ve found The Coffee Guy is nothing but positive – they’re supportive, knowledgeable and help you move forward all the time.’

The Coffee Guy vans offer an affordable starting point for those wanting to get into the hospitality business. ‘The total investment required is $89,950 +gst, and we have a range of finance options available for the right people to make it easy for them to get up and running,’ says Megan Piper, General Manager of The Coffee Guy. ‘More recently, we have established other formats including a fixed drive-thru option and a hole-in-the-wall kiosk, all of which offer new opportunities to franchisees.’

Ian says the transition to self-employment couldn’t have been smoother. ‘There were no hidden surprises anywhere and it was all so straightforward – you pay your money, do the training, get your van and

Advertiser InfoThe Coffee GuyPO Box 68 324, Newton, Auckland 1145www.thecoffeeguy.co.nzContactMegan PiperP 0-9-377 7615M 021 500 [email protected]

Ian Herring

43

⇒ Banking to baking sounds more like a typing error than a career choice, but after nearly 14 years as an award-winning

Brumby’s Bakery franchisee, Richard Cook feels he made exactly the right decision. ‘I’d had enough of the corporate world,’ he recalls, ‘but what clinched it was a merger between two banks. The subsequent rationalisation let me escape with a redundancy, which I did at the age of 47.’

Richard had always been attracted to small business but felt he had too much general, rather than specific, knowledge to start from scratch. ‘Franchising offered me a safe way to get into business and learn the details,’ he explains. ‘I looked at a few options and found myself drawn to one of the staples of life – bread.’

Being a banker, Richard was naturally cautious about his choice of franchise. ‘What struck me about Brumby’s was that it appeared to be a genuine partnership between franchisor and franchisee. It certainly wasn’t a big ogre that took the money then left its franchisees to get on with the work. All the people I dealt with were very family- and partnership-focused. The feeling was “when you do well, we will do well,” which was very attractive after what I’d gone through at the bank.’

Kneading The DoughAlready based in Porirua, Richard decided that the town was ready for a Brumby’s. ‘The franchisor wasn’t so certain so we did a lot of research and found a location close to The Warehouse. That brought a lot of foot traffic and we rapidly turned into a destination shop ourselves,’ he says. ‘Obviously I wasn’t a baker by trade, so a key element for me was the practical, hands-on training. I quickly learned that if you can follow a recipe and be methodical, then with the Brumby’s system anyone can learn to bake. The fundamental difference between us and other bakeries is that we use a scratch-baking method of baking bread. We start with raw ingredients and don’t use pre-mixes. But you must be accurate with your measurements – just one unfortunate experience was enough to teach me that,’ he laughs.

More difficult was getting used to the hours. ‘I am naturally a night person, rather than a morning person and the 3am start took a little

while to get used to. It’s a seven day business and for the first 10 months I baked every day until our staff were fully trained. But it’s like anything else – if you have the desire to do something, you overcome the obstacles and after a while they become irrelevant. Once you are in the routine, it doesn’t matter what time you have to get up.’

Brumby’s first opened in Australia in 1975 and now has almost 350 stores in Australia and New Zealand. In 2007 the brand became part of the publicly-listed Retail Food Group (RFG), Australasia’s largest multi-brand food franchisor with over 1240 outlets comprising Donut King, Esquires Coffee, Michel’s Patisserie, bb’s cafe, Pizza Capers, The Coffee Guy, Crust Gourmet Pizza, Brumby’s Bakery and Brumby’s GO!

‘One of the greatest strengths of such a wide range of brands is the support and experience that we can bring our franchisees,’ says Joanne Hall, Brand Marketing Manager (NZ) for RFG. ‘Brumby’s franchisees are all supported on a local level by business development managers who have themselves owned their own businesses. Franchisees can therefore launch their own businesses with confidence, knowing they are backed by a local team of experts every step of the way.’

Investment levels for a new Brumby’s Bakery start at around $250,000 depending on site. No prior baking experience is required as full training is provided at RFG’s state-of-the-art facility on the Gold Coast.

High Achievers Appreciate SupportRichard is still very hands-on at his Brumby’s store, which he runs with his wife, Allison. ‘We have our separate skills which are very complementary,’ he says. ‘I tend to manage the production side while Allison runs the retail. I do the bookwork and she does the statistical side. It works very well.’

So well, in fact, the couple have won several awards over the years including the Porirua Westpac Business Excellence Award in 2012. ‘That was the third time we’d been nominated and was a great honour,’ says Allison. ‘And we were named Franchisee of the Year in New Zealand for Brumby’s, too.’

Over 14 years Richard and Allison have seen many changes. ‘Every business has to adapt and we now offer a much wider range of artisan foods than we used to – eg, Turkish, ciabatta and sourdoughs,’ says Richard. ‘Brumby’s is a system that is rewarding and has been a very safe way for two novices like us to get into business.’

‘If you want to repeat Richard and Allison’s success, Brumby’s has opportunities available right now in many parts of New Zealand,’ says Joanne. ‘To own your own business with the support of RFG behind you, call us today.’

After 14 years as a Brumby’s Bakery franchisee, this ex-banker knows he made the right decision


Find more info at franchise.co.nz - Search: Brumby’s

Find more info at franchise.co.nz - Search: Brumby’s

the best thing since SLICED BREAD

Advertiser InfoBrumby’sRetail Food Group10F Morningside Drive, Morningside, Auckland 1025 www.rfg.com.auContactRachel CasleyP 0-9-377 7615M 0274 843 [email protected]

Richard and Allison with their winning team in the porirua Westpac Business Excellence Awards.

Taking centre stage: Allison and Richard were double award-winners last year

why use an ACCOUNTANT?Buying A Franchise: Professional Advice

Does money matter? The way some franchise buyers avoid taking advice, they don’t seem to think so

and how to measure your progress. The franchisor can advise on the profitability of the franchise itself; only your accountant can relate that to your borrowings, your tax, your cashflow and your personal expenditure. They can advise about working capital. They can help you prepare a presentation for your bank and structure your finances in the most effective way. Use an accountant.

4. If it weren’t OK, the bank wouldn’t lend me the money. A bank will certainly want to know that you have every chance of success and will give you all the help they can. At the end of the day, though, they will want some form of security to reduce their risk, such as your house. This means that most of the risk is yours - not theirs. Why wouldn’t you want to keep the risk as small as possible? Use an accountant.

5. Other franchisees have said they’re doing well. I’m sure they are. Does that guarantee that you will do well too, or might your situation or your area be a little different? Have the others had more time to get established? Has the market changed since then? Is the competition different? Are the costs comparable? Use an accountant.

6. I want the franchise no matter what anyone says. If you are prepared to ignore professional advice, you shouldn’t be going into business. Yes, you need to balance the information you get from your accountant with the details you get from the franchisor and your own researches, but if you’re going to make the right decision, it needs to be an informed one. All together now - use an accountant.

⇒ It might be hard to imagine, but some people invest thousands of dollars, their time and their careers in buying a franchise without

taking sensible precautions. Why would you risk your whole future by not consulting a lawyer and an accountant? Here are some of the reasons we’ve heard, and some of the reasons why they don’t add up.

1. I can read the figures myself. If you have business experience, you might well be able to read profit & loss accounts and balance sheets - but how well do you know this specific industry? What costs and margins are normal? How does this particular franchise compare? What do other franchises in the same sector achieve? Find out - use a franchise-experienced accountant. (see the Directory on page 80 for suitable advisors)

2. The franchisor has provided all the information I need. Franchisors may provide example figures from existing franchisees or pilot operations but there is no guarantee that you will achieve similar results. You need to have all figures checked, know how they relate to the area where you are proposing to operate and what the effect would be of under-performing on sales achieved or management of costs. Use an accountant.

3. What could an accountant possibly tell me about a business that doesn’t exist yet? They can tell you what to expect, what to look for

More InfoIf you want to find a franchise-experienced accountant to help you, you’ll find a useful list in our Directory – see page 80. If you still think you don’t need one, start reading again from the beginning.

International Master Franchise and Franchise Opportunities!Be a part of their success in New Zealand.

For more information on any of the opportunities listed or to see what else we are currently marketing please contact David Newport on 021 304414 or [email protected]

Switch Business LtdLevel 4, 12 O’Connell StAuckland CBD

Ph: 09-377 7735Visit www.switchbusiness.co.nz now!

Unique coffee/bakey concept.Roaster, Baker, Sandwich Maker.

A leading international authentic gelato franchise system.

Commercial and domestic cleaning services master franchise.

Charlie Lovett

Gelatissimo

Mr Green Auckland

Wingstop

Zambrero

Edgy Mexican restaurant franchise.

Buffalo-style chicken wings franchise system.

Internationally proven franchise systems are looking to enter the New Zealand market with the help of Switch Business and Global Franchise Partners.

Also available is a mature NZ Master Franchise system operating in the professional services domain.

Both Master Franchise and Franchise opportunities are available for a number of different systems including those listed here.

Cookie ManHand-crafted cookie franchise system.



⇒ When Bev Burdett returned to her native Napier from Perth WA, she immediately found herself thrown into renovating her father’s

home. It was no surprise. ‘Property is in our blood, and I’d spent 35 years working as a property developer, building new houses and packages for the investment market in Australia,’ she explains. ‘But it was really my partner, Dennis who pushed us to come to Napier – although he’s an Aussie, even he had had enough of the heat over there.’

Having finished her father’s house and renovated a second house for themselves, Bev began to cast around for a business and quickly came across Refresh Renovations. Back in Perth, Bev’s daughter, Deb, had established her own home renovation company and Bev had wondered about starting something similar in Napier. ‘But the closer I looked at Refresh, the more I thought there was no point in doing it the hard way. I didn’t know much about franchising but I recognised that Refresh had the kind of business model that would save me from having to reinvent the wheel – and all the right contacts, too.’

Under-serviced - a $5.7 billion marketThe Refresh Renovations franchise was launched in 2011 after almost five years of development. The concept was the brainchild of leading business and marketing strategy company Traffic, which has worked with some of the biggest brands in the building supply sector. Careful research had demonstrated that the property renovation market was actually much bigger than that for new building. In fact, as franchise manager Graham Franks says, ‘The research revealed that the renovations market was worth a massive $5.7 billion, but was incredibly badly-serviced.

‘The problem was that there were no national specialists in the renovation sector – it was mostly just builders “filling in” between new builds, and they didn’t always produce good results. A survey by the Department of Housing revealed that a massive 30% of customers were unhappy or had a dispute over their renovations! So Refresh was created to become a known brand that could meet customers’ expectations every time.

‘The vital difference between Refresh and traditional builders is that we are a specialist company with dedicated systems and procedures in place for managing renovation projects,’ explains Graham. ‘While building a new home is a predictable process, most older buildings contain surprises. Refresh franchisees therefore need to be good managers rather than be builders themselves. They can then use the systems and work with a reliable team of sub-contractors to avoid all the pitfalls and manage the processes smoothly.’

And the results have borne out the research. ‘We already have 26 franchisees and many are regularly finding they are offered more work than they can handle,’ Graham states. ‘Right from the start we used creative marketing including a very effective website, a fast-growing database and our own glossy magazine called Renovate (see renovatemagazine.co.nz). Now, of course, we are also getting lots of referrals from satisfied clients.’

It All Checked OutIn setting up a brand new business in an untried area, Bev and Dennis were naturally cautious and did some very thorough research. ‘I think I nearly drove Refresh crazy with queries about demographics and everything else under the sun,’ grins Bev. ‘Then I set out to find the same sort of figures independently. I didn’t doubt them, I just had to do it my way!’

Despite all her caution, Bev admits it was still scary knowing that there would be little or no income immediately, ‘But we have been very cheered

by what we have found. There are practically no new houses going up in Napier but people are renovating constantly on projects such as new kitchens, bathrooms and extensions.’

And Dennis says that the Refresh Renovations’ training has been ‘Terrific! As an ex-mine maintenance man I have never been involved in sales before and I was never interested. But this business isn’t like selling encyclopaedias – it’s about creating relationships with people, finding out what they want and how we can help them. I really enjoy it, and could happily do sales all the time. I firmly believe we have an excellent product and we are now beginning to see the fruits of the advertising we have invested in.’

As Dennis points out, Refresh Renovations was unknown in Napier before they started, although it is already a well-known brand elsewhere. ‘But there’s no doubt we’re

beginning to tap into a huge market. There have been very few negatives along the way – in fact the whole experience has been pretty much exactly as expected.’

Surprisingly Affordable‘Meeting expectations – both of franchisees and their clients – is what Refresh Renovations is all about,’ says Graham Franks. ‘Although all the Auckland franchises have already been granted, we do still have opportunities available in many other areas around the country and they are surprisingly affordable.

‘You don’t need a building background – just a genuine interest in property and a talent for working with people, like Bev and Dennis. If you have those skills, and a genuine desire to build an asset that will increase in value, ring us now.’

an experienced property specialist found Refresh Renovations had done all the hard work


right model for MASSIVE MARKET

Advertiser InfoRefresh RenovationsPO Box 37 941, Parnell, Auckland 1151www.refresh.co.nzContactJon BridgeP 0-9-301 0207 M 021 454 [email protected]

Latest data from BRANZ

estimates the renovation market

at $6.6 billion. It is predicted

that new homes will flatten off,

but renovations will continue

to rise, reaching $9.9 billion by

2017 and $11.5 billion by 2021.

These numbers exclude the

Christchurch re-build.

⇒Stop Press

Dennis French and Bev Burdett: ‘There’s no point in doing it the hard way’

One of the fastest growing franchises in New Zealand.

Read more.

Almost half of franchises established. Don’t miss out!

Already established

Going fast

TM

National and International Franchise enquiries toNorman on +64 21 339 396 or email [email protected]

You’ve gotta go to KiwiYo!Visit us online www.kiwiyo.co.nz | www.facebook.com/kiwiyonz

Open Now: Mission Bay, Botany Town Centre and TakapunaOpening June 2013: Manukau Mall, Sylvia Park and BayfairOpening Soon: Wellesley St, Hamilton, Wellington, Christchurchand Queenstown.

Original KiwiYo stores already open and opening

Exciting locations for KiwiYo franchise sites are stillavailable. Check in and see if locations in your desiredareas are still available.

There is only one!

Although you’ll find KiwiYostores popping up all overNew Zealand, China, Malaysia,Fiji, Vietnam, The UAE, Saudi and Australia,there really is only one KiwiYo!

• Same Superior Product

• Same Friendly Staff

• Same Hygienic Stores

• Same Exciting Experience

KiwiYo Franchisee Management Training in action. Part of KiwiYo’s comprehensive turn-key programme for Franchisees and their staff.

The Yo Academy up and running at full speed.

KiwiYo is a dynamic blend ofenthusiasm, healthy self-servedfrozen yoghurt, topped with aphenomenal assortment oftoppings & sauces, paid for byweight, a unique social mediapackage and fantastic motivatedstaff, all packaged into oneenjoyable experience!

Columbus Coffee’s latest outlet will benefit from a wealth of experience

new café franchisee isQUIETLY CONFIDENT


49

⇒ Bryn Mingard is a very busy man. His new Columbus Coffee café in the Auckland suburb of Pakuranga opens in just over a week, but he takes

time out to tell us about life as a soon-to-be café proprietor. It will be a whole new experience for South African Bryn and his Hungarian wife, Zsuzsa and they reckon they are as prepared as they can possibly be.

‘I’ve been really impressed by Columbus Coffee,’ says Bryn. ‘Their systems are excellent and the training has been outstanding. I was fortunate enough to spend four weeks at the Glen Eden café with Jane Merai, the franchisee there. She has been a brilliant coach and mentor. Not only have I learned everything from mixing scones at 6am to making shots behind the espresso machine, Jane also spent a great deal of time with me on the business element. I have been in business before but the details are always different and having specific training in the Columbus systems has helped me enormously in knowing what to expect.’

While Bryn was busy in Glen Eden, Columbus Coffee was building his outlet in Pakuranga. ‘The system is practically a turn-key operation – we have our input and the experts do the set-up so everything is ready for us on opening day. After that, we have lots of support but it’s really up to us to grow the business. We need to offer certain standard menu items, such as an all-day brunch, but we also have freedom to experiment. With our Hungarian/African backgrounds, we certainly have a fusion of ideas available and we can’t wait to try them!’

Experience, Research And An Award-Winning SystemBryn came to New Zealand in 2003 and became general manager of an import and distribution company. ‘My working life has been primarily in food retail and distribution – I owned my own supermarket just before coming to New Zealand – and I really wanted to have my own business again.’

‘Zsuzsa and I have always enjoyed café culture when we travel, we both love food and I think we are quite discerning. We constantly found ourselves evaluating ideas and we thought, “Wouldn’t it be fun to have a café?” Gradually the idea grew on us, and we started to look for franchising options that offered the support and training we would need.’

Bryn says he did a great deal of “under the radar” research to find out the realities of running a café. ‘I looked at many franchises and talked to many owners. Everyone had a different story to tell, but the central message was that cafés are full-on, intensive business units that don’t run themselves. You really have to be involved in everything and then be prepared for doing

accounts at home in the evenings. Well, that didn’t faze me and the more research I did, the more I found myself drawn towards Columbus Coffee. After all, they haven’t been a triple Supreme Award winner at the Westpac Franchise Awards for nothing. We’re looking forward to opening day!’

Aiming To Be The BestOpening your own Columbus Coffee requires between $250,000 and $400,000. ‘That’s a sizable figure,’ says managing director Graeme Tait, ‘so if you’re going to make an investment like that you want to make sure you choose the right business.

‘Columbus aims to be the premium franchise café brand in New Zealand and we work with some of the best coffee and food specialists in the country to achieve that. Our system and our franchisees have both won top awards and we’ve enjoyed unprecedented growth in recent years. As well as high street and mall locations, we’ve also developed a successful partnership with Mitre10 MEGA to put Columbus cafés in their stores throughout the country. We now have over 50 outlets and still have many more opportunities available.

‘Bryn and Zsuzsa are exactly the kind of intelligent, determined, business-experienced people we want in Columbus. If you’d like to join them and us in an award-winning system, contact us today.’

Find more info at franchise.co.nz - Search: Columbus Coffee

Advertiser InfoColumbus CoffeePO Box 911 030, Victoria Street West, Auckland 1142www.columbuscoffee.co.nzContactNathan Bonney, General Manager Business DevelopmentP 0-9-520 1044M 021 347 [email protected]

Bryn and Zsuzsa Mingard (left) with the team bringing Columbus Coffee to Pakuranga: ‘Cafes don’t run themselves’

51

⇒ Giving up a regular income for self-employment may seem like a big step, but choosing a V.I.P. Home Services franchise can make

it easy. ‘We’ve been helping New Zealanders make the move since 1993, and many franchisees have built successful and satisfying businesses as a result,’ says Estelle Logan.

Estelle and her husband John, who are the national franchisors for V.I.P, say the system helps new franchisees move gradually from relying on others for their income to being totally independent.

‘We train our franchisees not just in cleaning or lawnmowing but in all aspects of building a real business,’ Estelle explains. ‘We teach them how to quote, how to operate profitably, how to manage their time and how to grow their businesses. That’s why V.I.P. training lasts four weeks rather than the two that some other franchises provide.’

Earn From Day One

Longer training doesn’t mean a longer wait to start earning, though. ‘We understand that’s a concern for anyone leaving regular work, so we pay new franchisees $500 a week during the training period,’ says Estelle. ‘They spend time out with an area manager learning what they’re doing and building up speed, then they start work in their own exclusive territory.’

It’s at that stage that the next level of support kicks in – an income guarantee for the whole of the 12-week induction period that follows. ‘This is actual cash,’ Estelle confirms. ‘If a franchisee hasn’t earned the agreed amount – for example, $1000 – per week in any fortnightly period, all they need to do is advise us and we will top them up immediately. We don’t just offer them extra work that they might not be able to do – we ensure they have real money coming in. The intention is to remove the uncertainty so new franchisees can concentrate on learning their business, relax and focus on doing a good job.’

Start Slowly And Go On GrowingV.I.P. offers two types of franchises: Outdoors (lawnmowing and gardening) and Indoors, which includes home cleaning, exit cleans and window cleaning. ‘Both are physically hard work at first so it’s better to build up slowly from that point of view, too,’ Estelle suggests. ‘There’s certainly plenty of work available. We don’t limit what franchisees can do – for example, Indoors can include carpet cleaning, while Outdoors might

involve house washing and landscaping – and you can grow your business as big as you like. Some franchisees work alone, many are husband-and-wife teams and some employ others so their earning power isn’t limited by the number of hours in a day.’

A Very Healthy LivingColin and Serena Davids work together in their Indoor franchise, based in Howick. After eight years, their business is very well-established. ‘Over the years, we have chosen to focus on high-end customers,’ Colin explains. ‘These are people who want top quality service and that’s what Serena and I deliver. We have chosen not to employ people but to charge a little more for our personal and professional attention, and our clients appreciate it. We get a lot of referrals to friends and family who are looking for the same thing.’

It’s an approach that has paid off. Colin says the business turns over $3,000 to $3,500 per week, which provides them with a very healthy living. ‘The overheads in this business are very low: there are no staff costs, no premises, and you’re working on site most of the time. We originally paid $24,000 for this business and it’s been one of the best investments we’ve ever made.’

Still GrowingSimon Turner agrees, saying that running a business from home allows you to claim back a proportion of household costs which adds to the returns. He’s owned his Outdoor franchise for four years now and understands the concerns of those worried about giving up regular pay for self-employment. ‘I was unemployed for a year before buying my franchise and at the time the guaranteed income seemed very important to me,’ admits the former TVNZ operator and facilities manager. ‘But I surpassed that level very quickly – these days, I’d say “Just give me the customers and let me go!” I think that’s something you learn very fast, to drop the employee mindset. Care about your business as though you’d thought it up from the start, apply yourself and you’ll very quickly get up to speed. To be turning over $95,000 to $100,000 per year from a $30,000 investment is a pretty good return.’

And Simon says that one thing new V.I.P. franchisees can be certain of is support. ‘I got a huge amount of help from Estelle and John at the beginning and I’ve never forgotten it. It’s ongoing, too, with monthly meetings talking about how to add value, seeing opportunities and

thinking outside the square. As a result, my business is still growing and I’m about to take someone on to help me. That’s the sort of opportunity V.I.P. provides – paid training is just the start!’

Estelle says that V.I.P. has opportunities nationwide, with investment levels ranging from $15,000 to $25,000 +gst and equipment. ‘Call us for a chat and find out more about how V.I.P. can help you make the change to owning your own business.’

Paid training and guaranteed income are just the start, say V.I.P. Home Services franchisees

Franchise Opportunity: Home Services

Find more info at franchise.co.nz - Search: V.I.P. Home Services

Find more info at franchise.co.nz - Search: V.I.P. Home Services

assured income SMOOTHS THE WAY into self-employment

Advertiser InfoV.I.P. Home ServicesPO Box 276 186, Manukau, 2241www.viphomeservices.co.nzContactNationwide EnquiriesP 0800 84 74 [email protected]

Serena and Colin Davids (left) with Estelle and John Logan: ‘It’s been one of the best investments we’ve ever made,’ says Colin

Simon Turner: ‘Apply yourself and you’ll very quickly get up to speed’


Buying A Franchise: Changing Careers

⇒ OK, so you’ve taken the plunge and bought a franchise – what happens next? Whether or not you’ve been in business before, the

next few weeks or months are going to be a blur of activity. During this time, you’ll be filling in paperwork, setting up systems, having meetings and being asked to make decisions every day. There may be staff to employ, finance to arrange and licences or qualifications to achieve. Oh yes, and you’ll also be attending training – perhaps near home, perhaps in another city or even overseas – so that you learn what the business involves and how to run it successfully. Welcome to the world of self-employment.

It might sound daunting but the pre-opening period will be one of the most exciting times of your life. You’ll find it less stressful, though, if you understand all the tasks that need to be done and are able to approach them in an organised fashion. This will have a major impact on your readiness for your first days in business and the results you achieve. Every franchise is different, of course, but here are some tips that you might find helpful. As Brad Jacobs of The Coffee Club says, ‘Individually there are hundreds of little tasks to do. If you think of it as one massive task – “get ready for opening” – you will explode. Break it down and it becomes easy.’

That’s why many franchises provide you with a checklist to work through. In the case of The Coffee Club, this takes the form of a comprehensive ‘countdown’ list that starts five weeks from the opening of the new franchisee’s business and details every task that needs to be completed and who needs to do it. ‘We like franchisees to get these items out of the way before they start the formal training with us,’ says Brad. ‘If they have to slot in visits to their accountant or solicitor during training, or they are constantly trying to remember what needs to be done next, it creates extra stress and breaks the momentum of training.’

With staff, premises, equipment and even liquor licences The Coffee Club might seem like a complex business, but the same applies to other franchises too. At paint repair specialists Touch Up Guys, the Jump-Start manual also lists various tasks that new franchisees need to complete, including reading they must do before training and a worksheet that helps them to identify their goals and objectives for their new business. Martin Smith, the master franchisee for Touch Up Guys in New Zealand, explains that this is all part of teaching franchisees not just how to do a job but how to run a business. ‘During training, we can then help them build the marketing plan and activity calendar that will help them achieve those goals,’ Martin explains. ‘We can help them see what needs to be done, what’s realistic and what impact it will have.’

Paul Brown of Paramount Services agrees that the pre-opening period is a vital one, whatever the business. ‘A lot of our franchisees are first-time business owners,’ he says. ‘We might supply them with contracts and handle admin functions like invoicing and collection but this is not a job, this is their business. They now represent the Paramount brand and they must protect it and promote it and live up to it at all times in order to build a sustainable business. What we have to do is help them change their mindset from being employees to being employers. Assisting them through the set-up period prior to training is all part of that process.’

So what sort of activities might a new franchisee be expected to carry out before they start training? Well, every franchise is different but here are examples of some of the things you will be asked to do. Remember that, although pre-opening might seem to be a hectic time, things are going to get even busier once your business opens.

Statutory RequirementsOne of the first things you will need to do is decide, if you haven’t done it already, how your business is going to be structured: limited company, sole trader, partnership, trust or whatever. This is something to discuss with your lawyer and accountant. While the franchisor can tell you how other franchisees operate, you need to be certain that your structure suits your own specific needs for maximum tax efficiency and protection of your assets. Only once you have this established will you be able to set up your bank and suppliers accounts and various other

Lorraine Lord looks at the stages involved in starting a new business and talks to the experts

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agreements (eg. property, vehicle or equipment leases).

If you aren’t already registered – for example, if you are a new immigrant like many Paramount franchisees – you’ll also need to obtain an IRD number and register for ACC. You may need to register as a self-employed person and/or as an employer. Your business will probably need to be GST-registered. Work through all these stages with your lawyer and accountant.

Additional QualificationsWhat additional qualifications might you need to run the business? If it’s a food business, you will need to go through accredited food handling and hygiene training. This may be included as part of the franchisor’s training course, but that’s not necessarily the case. If you will be selling alcohol, like some outlets of The Coffee Club, you will need to acquire a General Manager’s Certificate, which requires external training. You’ll also need to obtain a liquor licence, which can take up to three months. It’s also a good idea to do a first aid course, especially if you are going to be employing people (some franchisors insist upon this).

Supplier Agreements, Bank Guarantees and InsurancesWhatever your franchise, you are likely to need to set up agreements with suppliers. In many cases these will have been negotiated on a national basis by the franchisor, with appropriate credit terms, but you will still need to complete all the forms. Where you need to establish relationships with local suppliers for some items, you will want to identify the best suppliers and terms available before opening your business. If you have premises, you may be required by your lease to provide a bank guarantee in favour of your landlord – check with both your franchisor and your lawyer to ensure this is reasonable.

You will also need insurance for your new business – many franchisors stipulate specific requirements such as public liability, business interruption and material damage insurance in the franchise agreement. ‘At Touch Up Guys, we take this very seriously,’ says Martin Smith. ‘We actually arrange for new franchisees to meet a broker during training so that if they don’t have adequate cover it can be arranged on the spot.’

Setting Up Your Office SpaceIf your new business is to be home-based, one of the things you can do to prepare is set up your work space in advance. Every business generates paperwork and phone calls, and you don’t want to be fighting for space on the dining table all the time. A separate work room is ideal but if this is not possible, try to create a corner that is business space and has all you need close to hand. Try to be disciplined about it and explain to the rest of the family that this is your work space and ask them to respect it. You don’t need the irritations or distractions of finding that the stapler has walked or

the cordless phone has been left off the charger or the message book is missing.

Your franchisor will list the major items you need, such as a computer, printer, smartphone, filing system and so on. You may require broadband (something else to be organised well ahead of time) or a separate phone for business. The Coffee Club provides a detailed list of stationery that each franchisee will need, right down to pencils and erasers.

Whatever equipment you buy, if it is not part of the standard franchise package (and therefore won’t be covered in training), it’s good to read any accompanying manuals before you start your business. It will save time and frustration later if you have everything set up properly in advance.

Setting up Software

Many of the larger franchises provide customised software packages that will help you run the business efficiently, and full training on this software should be provided as part of your induction. In other cases, franchisees are free to use whatever software best suits them, although if a particular package is recommended it is usually best to use this as the franchisor will be familiar with it and be better able to help with set-up and support. This is particularly true for accounting programs, as the financial side can be a challenge for many people at first. The more standardised systems are within a franchise the better, as it makes for faster and easier benchmarking between outlets (see page 34).

Check Out the Competition

Every business has competitors, and one of the secrets of success is to know as much about them as possible. Your franchisor may well know about the competition you will face from other chains or franchises, but even they will vary from place to place – and there will probably be independent operators in your industry, too. Make it your job to find out as much about all your competitors as possible. Find out where they are, what hours they keep, what their prices are. Visit them and talk to their staff (who are usually less guarded than the owners). Look at where they advertise and when. Get on their mailing lists for new promotions.

‘We encourage franchisees to have someone make test calls to competitors and find out what services they are offering and what prices they are charging,’ says Martin. ‘Competitors vary from town to town, even in the same company.’ By being well-informed, you can develop strategies with your franchisor to make your mark when you launch.

Make friends

Once you are committed to joining a franchise, ask your franchisor to introduce you to other franchisees locally. They will become important colleagues in the months to come and you will benefit from being part of

WHAT HAPPENS NEXT?

so you’ve bought a franchise?


Buying A Franchise: Changing Careers

a wider group as you get to grips with your business. You might spend a day with them or even offer to help if you have some time before your own business gets going. Talk to your franchisor first, though – they may be keen that you don’t pick up bad habits before training!

Prepare For Take-OffEven before you have opened your doors or got your vehicle on the road, there are many things you can do to help your business get off to the best possible start in marketing terms. For a start, learn as much as you can about your area. This applies even if you have lived there for years; after all, you are looking at it through the eyes of a business owner now. Read the local papers and find out who’s who. Identify any local groups that might be interested in your product or service.

What other companies might you want to work with? For example, GroutPro franchisees see tilers and tile shops as ideal partners for their service. What networking groups are there in your area and which ones might it be worth getting involved with? Is there a local Chamber of Commerce, enterprise group or BNI you should join?

Research rates for local advertising. Remember, your customers might be reading or listening to very different things from you – they might be on the road with the radio on while you are in your store, or vice versa. The franchisor and other franchisees can tell you what usually works, but there might be other options in your area. If you have premises, find out where passers-by have come from and are going to – follow them, if necessary! It might help you work out how to encourage them to drop in.

Get To Know Your PeopleIf you’re going to be employing people in your business, take time to get to know a bit about them in advance. The Coffee Club requires quite a large team of part and full-time employees, and because of this the franchisor carries out the initial staff recruitment, interviews and induction on behalf

of the franchisee. In most cases, though, recruitment is the franchisee’s responsibility. However staff are recruited, the task of managing them and building them into a reliable and efficient team is the franchisee’s job, and it will have its challenges.

One Thing At A TimeBrad Jacobs is well aware of the challenges new franchisees face and the amount of information that they have to take in in a limited time. ‘On the first day of training, a new franchisee walks into the restaurant, sees the coffee machine going flat out, food coming out of the kitchen, staff all doing different things – it’s overwhelming. There’s a moment when everyone thinks, ‘I can’t do this!’. But we say, “Open your manual, what does it say for day one? That’s what we’re going to do today.” We don’t even go near the kitchen till day seven, by which time they have been able to make sense of all the steps involved in running the front of house.

‘A pre-opening checklist is the same – it breaks everything down into small steps, and we confirm with the franchisee all along that each step has been handled. If something isn’t done, then the opening may be delayed – simple as that. Basically, that list shouldn’t leave a franchisee’s side for six weeks!’

And he has one last piece of advice. ‘We get new trainees who want to be there all hours to learn as much as possible. We love their enthusiasm but after four weeks of that, if their brain hasn’t stopped their body will stop for them. You have to learn to set a pace you can maintain for the next 6, 12, 24 months if your business is to be sustainable. The better organised you are in advance, the easier it is to get into good habits.’

About the AuthorLorraine Lord was training manager for an award-winning franchise in the UK and helped many new franchisees establish their businesses

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55

⇒ Andrea Napier is quite uncompromising about her recipe for success. ‘It doesn’t matter if you’re fitting plumbing or making

sandwiches, you have to be passionate about your business and be prepared to live it 24/7.’ It’s this committed attitude that has seen the sales of her Caci appearance medicine business in Lower Hutt increase ‘very healthily’ in the 12 months since she bought it. But how does someone with no experience of the beauty industry make such an impact in such a short time?

‘When I was a teenager, I really wanted to go into the beauty business,’ Andrea recalls. ‘But in our family, we were expected to go to university and get a good degree. Well, I did that, and stayed for ten years as a lecturer in psychology. Then I worked for a business training company for four years and that really sparked my interest in having my own business.’

‘Another rule for success in business is to know your franchise area and local community,’ Andrea continues. ‘I’ve been in the Hutt for over 20 years and I’ve observed many changes. After Caci opened here in 2006, other rival operations started up and rapidly closed again. They couldn’t compete – nothing beats the reputation and trust associated with the Caci brand.’

Seizing The MomentIn 2011, Andrea heard her local Caci was for sale. ‘Everything came together,’ she says. ‘I knew the brand well because I was a long-standing client; I had in-depth knowledge of the local area; and I wanted to start my own business. Saying farewell to the security of a salary was a little daunting; however, knowing I would be part of a successful franchise group gave me the courage to take the plunge.’

Having support from home is another of Andrea’s key ingredients. ‘My husband Simon is a practising vet and owns Animal Health Centre Lower Hutt,’ Andrea says. ‘He’s not directly involved with Caci but is invaluable because he really understands the concerns of a new business owner and is there to celebrate its successes.’

Those successes have come as a result of – yes – passion and commitment. ‘I put more focus on our clients, who appreciated our efforts and told their friends. I ensured our name was out there in all sorts

of ways, including joining the Hutt Valley Chamber of Commerce. But perhaps the most important thing was getting the right team in place. As I discovered, patience is a virtue so I waited for people I knew to be right for my clinic to become available. My team is talented, professional and as passionate about our clients’ results and Caci as I am.’

No Experience RequiredCaci was founded 19 years ago by managing director Jackie Smith and her husband David. There are now 29 Caci outlets in New Zealand and the franchise has become the clear market leader in beauty and appearance medicine. All the clinics offer a range of treatments in three main areas: appearance medicine, hair removal and facial rejuvenation, as well as traditional beauty therapy services.

Like Andrea’s Lower Hutt clinic, many of them are owned by people who employ specialists in the various services rather than being practitioners themselves. ‘To succeed as a Caci franchisee, you don’t need industry experience,’ explains Glenice Riley, Caci’s General Manager Operations/Director. ‘Instead, you need to be a good manager and able to become the local face of the Caci brand by building a network of contacts in your area, exactly as Andrea has done.’

Take Advantage Of Everything‘If you are going to look at Caci, or any franchise for that matter, then both parties need to do their homework,’ Andrea suggests. ‘The franchise is going to be your lifeblood so you need to make sure you are a good fit for each other. I took around seven months to make the final decision and Caci checked me out too, but it was worth it. The support and training I have had from the franchise has made all the difference. They have a magnificent marketing team and training academy, and I take maximum advantage of all they have to offer.’

When it comes to putting it all into practice, she goes on, ‘You must be results-driven but you also have to trust in the system – after all, Caci exists because they are equally passionate about the industry and are real experts, so use what they give you. At the same time, it’s important to add your own flavour: the feedback that we get so often is that clients like to come here because we are always so happy and enthusiastic. That comes

down to how much energy you put in.’ And energy is clearly something Andrea has in abundance.

Glenice says that Caci has a number of locations available with investment levels ranging from $200,000 to $300,000. ‘If you have an interest in beauty, a head for business and the kind of commitment Andrea has demonstrated, I’d love to hear from you.’

A new Caci franchisee applied the system with passion and got stunning results

Franchise Opportunity: Health & Beauty

Find more info at franchise.co.nz - Search: Caci

Find more info at franchise.co.nz - Search: Caci

teen dream to BEAUTY QUEEN

Advertiser InfoCaciPO Box 41 395, St Lukes, Auckland 1346www.caci.co.nzContactGlenice RileyP 0-9-847 9219M 021 980 [email protected]

Andrea Napier of Lower Hutt

Getting the right team in place to help the clients and grow the business took time and patience, but Andrea says it’s been critical to her success

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57

⇒ As the return of Georgie Pie has shown, good brands may take a long time to grow but, once they’re in the heart of the New Zealand

public, they are there to stay. Take Valentines, for example – founded in 1989, it’s been the country’s most popular buffet chain ever since and a sure-fire hit for family occasions of all kinds.

Even the best brands have to move with the times and adjust to changing tastes, though, and that’s just what Valentines has done. The new Valentines restaurant in Victoria Street, Hamilton, shows the way ahead with a smaller footprint store that makes the most of new technologies to ensure lower operating costs, reduced rent and rates and greatly-increased profitability. But do customers like it? ‘They certainly do,’ says franchisee Clinton Slack. ‘It’s a lot busier than the old Hamilton Valentines and we’re getting great feedback from customers who love the new décor and the new menu.

‘The old-style Valentines are big, open spaces with 250 seats or more. My new store is more contemporary, having 140 seats with comfortable booths – it’s still a family restaurant but has more defined spaces and a welcoming atmosphere for adults and children alike. And although we’ve still got the old favourites on the menu, we’ve also added items like pork belly, chicken peri peri, satay beef and butter chicken. With over a hundred dishes inspired from all around the world, we cater for a huge range of tastes.’

Just three months ago, Franchise New Zealand’s article on ‘The Next Big Thing’ identified fast-casual restaurants as a coming trend. ‘We’ve seen this sector growing in the US and it’s about to catch on in New Zealand, too,’ Clinton says. ‘People want quality, they want value for money and they want to be able to be in-and-out quickly – especially at lunchtime. Valentines fits the bill completely.’

Getting The Figures RightHaving been in the hospitality trade all his working life, Clinton knows what he is talking about. He’s worked for Pizza Hut, run restaurants, nightclubs and bars, helped develop Wild Bean Café for BP and owned his own Columbus Coffee outlet for five years. ‘I joined United Franchise Systems as operations manager for Sierra, then transferred within the group to work with the Valentines team,’ he says. ‘After a few months I was so convinced that I decided to walk the talk and take on the first of the new franchises myself.

‘Given my experience, I know that it’s critical to have a good brand – that will get people through the door – but then you have to be certain that you can make a profit while making them happy. Food, labour and rental costs are the critical overheads and we’ve put a lot of effort into getting them right. As a result, cashflow is better and our Profit & Loss report is looking a lot healthier,’ the new franchisee says happily.

Uncrowded MarketThe new-concept Valentines is proving popular for a number of reasons. Not only has the menu been modernised, but the inclusion of an attractive bar environment has increased the restaurant’s appeal to adult groups. ‘We get work parties in now because it’s a nice place to come and where else can you go where there’s something for everyone on the menu, spicy eaters, dessert lovers, carnivores and vegetarians alike?’ Clinton grins. ‘Beverage sales have increased and, along with increased numbers, through the door, we’ve been able to bring the pricing down – always a popular move with people wanting real value-for-money.

‘You know, there are a lot of cafés around fighting for their share of the market but not a lot of family restaurants. This is a space that Valentines has pretty much made its own over the years and the new formula will continue that for some time to come.’

Powerful And ProfitableMurray Belcher, development manager of United Franchise Systems, says, ‘The smaller footprint means that a Valentines can be successful not just in the big cities but in many towns around New Zealand, and conversions of existing restaurants can be a viable alternative to building from scratch. We expect that new franchisees will benefit from our growing event business, too. Valentines is a hassle-free and affordable venue for weddings, 21st birthdays and all sorts of special occasions. We don’t charge large booking fees for reception rooms, there are plenty of staff on hand to help things run smoothly and, of course, a huge variety of food and drinks.’

There are currently nine Valentines around the country and the company is looking to open new-concept stores in cities and towns throughout both the North and South Islands. ‘We want astute investors who are able to run a busy, customer-focused business,’ says Murray. ‘We will provide the set-up, tools and the training, but we won’t grant the franchise to just anyone.

‘Successful applicants will need relevant experience and the ability to combine their operating skills with our brand and expertise. As Clinton has shown, it can be a powerful and profitable combination. To be part of the new Valentines, call me now and find out more.’

Valentines’ new style and new menu boost popularity and profits


Find more info at franchise.co.nz - Search: Valentines

Find more info at franchise.co.nz - Search: Valentines

old favouriteNEW CONCEPT

Advertiser InfoValentinesPO Box 331 586, Takapuna, Auckland 0740www.valentines.co.nzContactMurray BelcherP 0-9- 444 4819M 021 483 [email protected]

The new-look Valentines restaurant in Hamilton offers more sophisticated surroundings without losing the family appeal. The result? ‘More customers and better profitability,’ says franchisee Clinton Slack (pictured below with partner Kim)

Contact Silver Chef today on 0800 443 334 for fast, easy approval or visit www.silverchef.co.nz

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59

⇒ The Just Cabins franchise has shown remarkable growth. There are now over 900 cabins in use nationally and new units are being

added at the rate of more than one per day. But what are they used for? ‘Everything,’ laughs franchisor Fenton Peterken. ‘Our franchisees rent them out as extra rooms, offices or accommodation, and customers are coming up with new uses all the time. We have cases in which younger people have moved out of their $300 a week flat and taken one of our cabins to their parents’ backyard at only $65 a week. Within a year, they’ve saved over $10,000 as a deposit towards their own home!’

The stylish units come complete with built-in lighting and power, insulation, carpets, lockable ranch-slider and window, all on a steel-framed trailer base which can be easily towed by a four-wheel drive. Best of all, they need no planning permission, making the franchisees’ job simple – find the client, deliver and set-up the cabin then receive the weekly rent as long as the cabin is needed. Then move the cabin on to the next location.

‘Just Cabins really is a very sound investment,’ says Fenton – and he’s speaking from experience. The former Chartered Accountant was one of the first Just Cabins franchisees and was so impressed he bought the whole business in 2010. ‘Cash flow is excellent and, as portable buildings are classified as depreciable items by the IRD, there’s much more to put back into the business to fund continued growth. Six-figure incomes are not uncommon among franchisees.’

Last year, Just Cabins won the Lifestyle Services Franchise System of the Year award at the annual Westpac Franchise Awards, ‘confirming we have a sound system producing results for our franchisees,’ says Fenton. ‘This greatly boosted our profile and we got a lot of enquiries.’ We talked to three new Just Cabins franchisees to find out how they have fared.

Voices Of ExperienceThe new Just Cabins franchisees in South Auckland only joined the franchise in February 2013, yet they’ve already grown their business more than they predicted for the whole year. ‘We bought an existing business, with 28 cabins and now have 41,’ says Megan Allan. ‘The recession and Auckland housing situation have given us a good boost.’

Megan and husband Mike own an avocado orchard in Franklin and were looking for a more passive investment for their retirement. ‘We were in exactly the same boat as our good friends Maree and Neil, who have been in the transport business for 30 years. So we combined forces, bought the business and have found we all have equal contributions to give. We have a display cabin which brings plenty of enquiries and nobody needs to come to our office.’

Aaron Pau is another who has found Just Cabins lets him combine current career and future security. A specialist in the Royal New Zealand Navy he’s signed on for 20 years, ‘but I’m in demand so I may stay much longer,’ he grins. ‘I read about Just Cabins winning the franchise award and it really appealed to me as it was something I could work round my job. I knew a number of friends and colleagues looking for extra accommodation, so I doubled my capacity in my first six weeks! I can see my North Shore area is going to grow a lot bigger and I’m building a really solid asset for the future. It’s nice extra income and maybe I’ll even consider early retirement – if the Navy will let me go, of course!’

Meanwhile, former orchardist and hotelier Ben Wood has already retired, ‘but I got bored,’ he says. ‘I decided I wanted a business that was genuinely part-time but could still produce a good income. I came across Just Cabins in Franchise New Zealand magazine and rang up on the spot. Fenton had some cabins in Northland already so we bought that area and Whangarei too. We only took over in April but it’s already quite clear there is plenty of on-going demand. I reckon that will go on growing in this area, where people with small baches want an extra room for six months or so.’

Move FastThe franchise fee for Just Cabins is between $45,000 and $75,000 depending on area, plus the cost of the cabins themselves. ‘I’ve found a good starter pack is 20 standard cabins, which should bring a turnover of around $70,000 pa,’ says Fenton. ‘After that, a finance package with two banks enables franchisees to grow their business by borrowing 50-60 percent of the cabin valuation to acquire more cabins.’

But you’ll need to move fast. ‘Since winning our award last year we have granted eight franchises. We only have two territories left in the South Island, Marlborough and Southland, but if the potential there matches our new franchisee’s experience in Ashburton, it will fly. There is still one area available in East Auckland and we also need franchisees in Wellington, Taranaki, Palmerston North, Wanganui, Manawatu and the Central Plateau.

‘So if you want a solid business that offers semi-passive income, you need to talk to me now,’ Fenton suggests. ‘This could be your opportunity to secure your future.’

Just Cabins help franchisees secure their future with a semi-passive investment


Find more info at franchise.co.nz - Search: Just Cabins

MAKING MONEY from making space

Advertiser InfoJust CabinsPO Box 68 171, Newton, Auckland 1145www.justcabins.co.nzContactFenton PeterkenP 0-9-434 6866M 021 716 [email protected]

Lifestyle Services Franchise System

of the YearJust Cabins

Spelling it out: Just Cabins is delivering extra rooms for customers and extra returns for franchisees

Former orchardist and hotelier Ben Wood has found plenty of demand for Just Cabins around Northland

Franchise New Zealand Volume 22 Issue 02 Winter 201360 Franchise New Zealand Volume 22 Issue 02 Winter 2013

⇒ Whatever business you are in, there are two fundamental ways of improving profitability: increasing sales and reducing costs. In my

previous article, I outlined eight areas that franchisees and franchisors should look at to see where they could find benefits. These were:

• ACClevies •Light&power• Bankfees •Postage,printing&stationery• Insurance •Telephone&tolls• Interest •Travel

You can read that article online at www.franchise.co.nz/article/1580. Althoughtheeconomicoutlookseemstobeimprovingatlast,manybusinesses are still suffering from the effects of the last few years. Here are some more ideas to help you get back on the right track.

Cost of salesIf you reduce your cost of sales (the cost of goods your business has sold), your gross profit will increase. The most obvious way to reduce your cost of sales is to negotiate better deals with suppliers, and this is something

franchisors should have been focussing on over recent years.Beyondthat,however,franchiseescanhelpthemselves by looking at other areas such as:

• Minimisingwaste.• Improvingstockmanagementsoyoudon’tendupwith obsolete stock that has to be written off. Sell it off as quickly as possible through promotions or other means.• Reducingtheftandlossofstock.Anddon’tkidyourself–ifyouthinkstocktheftisn’thappeningtoyou,you may just not have identified it yet.

Staff costsDevelop a culture and work environment where staff enjoy what they do and want to continue doing it. The cost to a business of staff turnover is high; you end up paying out all accumulated holiday entitlements, while the recruitment costs of finding a replacement employee can be 10-15% of a starting salary. Valuable knowledge and experience walks out the door with each staff member and training the new person takes time, effort and money. Staff turnover should be measured and understood as any reduction in the turnover of staff will be a saving.

Accordingtothe2012FranchisingNewZealandsurvey,manyfranchisesareoperating with more part-time staff than before. Offering shorter or more flexible hours may be more attractive to some than higher salaries.

Interest and penaltiesInthelastarticleIreferredtobankinterest–butthebankisn’ttheonlyorganisationthatyouhavetokeephappy.TheInlandRevenue(IRD)willalsocharge‘UseofMoneyInterest’(UOMI)aswellaschargingpenaltiesforthings such as late payment and late filing. You can avoid these by working with your tax agent (in most instances, your accountant) to ensure taxes are paid on time or using a tax intermediary to acquire provisional tax at a lower ratethanUOMI.

Bad debtsIf you are providing credit to clients, there will be times when clients default on payments. There are two key ways to reduce bad debts. First, complete

Buying A Franchise: Finance

8 more ways to IMPROVE YOUR BOTTOM LINE Two issues ago, Paul Kane of Grant Thornton outlined ‘eight ways to improve your bottom line.’ This was so popular, we asked him to suggest eight more.


proper credit checks prior to providing credit; this may help identify a repetitive defaulter. Second, adhere to your credit terms and chase debts whentheybecomedue.Manypeopleareembarrassedorscaredtomakecreditcontrolcalls–don’tbe.Remember,onceyouhaveprovidedthegoodsor services, after the agreed period, they are sitting on your money.

Thebestapproachisnottoprovidecreditatall.Collectingpaymentatcompletion of the service or when the product is handed over eliminates bad debtsforever.Reviewyourmethodforcollectingpaymentandassessifthereisamobilepaymentmethodavailable.Mobilephonetechnologyischangingand developing rapidly (just have a look at www.swipehq.com).

Motor vehicle expensesGoogling‘Howtoreducemotorvehicleexpenses’bringsupamassive14.4millionresults.TheBankofAmerica,noless,offersthefollowingsimpletips that you might remember yourself and pass on to other drivers of traditionally-abused company vehicles:

• Dothesimplemaintenancetasksyourself,suchasreplacingbrokenbulbs.

• Keepvehiclesproperlytuned–apoorly-tunedvehiclemayburn10-30percent more fuel plus wear the vehicle out faster.

• Checktyrepressuresregularly–animproperlyinflatedtyrereducesfueleconomy.

• Ensureairfiltersareclear–adirtyairfilterwillnegativelyimpactfueleconomy by up to 10 percent.

• Unlessspecificallyadvisedotherwise,useregularpetroloverpremium–most engines only care if petrol is clean, not the amount of octane.

• Don’tspeed–maintainasteadyspeedwherepossibleandremember,fuel efficiency drops significantly above 100kph.

PackagingPackagingissomethingusedtoprotect,containoridentifyaproductandisanintegralpartofthesupplychain.It’seitheracosttoyouwhenshippingor a cost to you when disposing. The whole supply chain needs to work together to reduce the packaging cost. Here are some things to consider:

• Reducepacksizeswherepossible.• Avoidexcessivepackaging–noteverythingisfragile.• Reducethethicknessofpackagingmaterial.• Eliminateunnecessarylayers;eg.bagswithinbags.• Replacecardboardwithreusablecontainersorotheralternatives.

FreightThere are a number of freight alternatives available, both from suppliers and to customers. Some of these can save time and may result in better value-for-moneyandrepeatbusiness.Remember,thecheapestoptionisn’tnecessarily the best option. Service needs to be a high consideration, as thereareanumberofhiddencostsandlostopportunitiesifproductsdon’tarriveontime.It’sbesttoconsideryourbusiness’sneedsandfindfreightcompanies that match these before getting quotes – and always be prepared to negotiate to get the best price.

Computer expensesBuyingnewcomputersisn’talwaysanoptionsoconsideraddingmemory.Thisisrelativelyinexpensivethesedaysandcanincreaseacomputer’sperformance by up to 25%.

Consider‘cloud-based’optionsthatgiveyouaccesstoyoursoftwareapplications from any location that has an internet connection. There is potential to reduce IT operational costs by outsourcing hardware and software. It allows ageing hardware still to be used and reduces the desktop visits of IT technicians and licence costs. From the point of view of a franchise, cloud-based solutions ensure that everyone is using the same software,makingdatacollectionforKPImonitoringeasier.Italsoensuresfranchisor and franchisee data is safely backed up, and enables updates to be released across the franchise network without new software being installed by each individual franchisee.

ConclusionAsIstatedinmypreviousarticle,atatime when increased revenues are hard to come by, the management of expenses is vitally important and should be a continuous process. The categories and examples given above are just some of the options available; by putting their heads together, franchisees and franchisors should be able to come up with many more.

About the AuthorGrant Thornton New ZealandPOBox1961,Auckland1140www.grantthornton.co.nzContactPaulKanePartner,[email protected]

Franchise Law FirmSpecialist

For Award Winning, Highly Experienced and Friendly Legal Advice contact

(09) 308-9925 www.germann.co.nz

SGLSTEWART GERMANN

LAW OFFICE

WINNER 2012 Dealmakers

Awards - Franchise Law

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63

⇒ Bill and Jo Lawrence always knew their strong

backgrounds in customer service and business skills would serve them well in their own business, but it was their banking experience that attracted them to the Pack & Send franchise.

‘We liked Pack & Send’s business model, customer focus and its overall customer proposition,’ says Bill. ‘And we felt that our skills were transferable, even though we’d be embarking on a huge learning curve in a different industry.’

The Pack & Send offer is simple: no limits. Using a range of technologically-advanced packaging systems, its franchisees will pack and send anything – no matter how fragile, large, awkward or valuable – to any address in the world. That might sound like a tall order, especially if you don’t have any logistics industry experience, but such is the quality of Pack & Send training and support that local franchisees have notched up some spectacular successes in problem-solving for their customers. They’ve achieved some spectacular results for themselves, too: one franchisee who opened a new outlet in 2011 was cash-flow positive within two months, while the first franchise to be re-sold achieved a 200% return on capital invested.

Potential Makes SenseIt was that potential which appealed to Bill and Jo when they started looking for something new. Bill, a former provincial rugby and cricket player, had a 28-year banking career culminating in a position at senior corporate relationship management level. Jo is also a former banker, having spent 18 years in the retail arm and then 8 years in the CEO’s office of a major New Zealand bank. There then followed a stint as assistant to the Governor of the Reserve Bank.

‘Banking is a fiercely competitive environment, from the points of view both of winning business for the bank and in advancing one’s own career,’ Bill says. The couple have been married for 26 years and have two children, but Bill’s career path was leading the family towards a likely move to Auckland and immersion deeper into the corporate lifestyle. Jo, meanwhile, was looking for a new challenge and says frankly that there wasn’t much in the Wellington corporate or government sectors that appealed. The idea of opening their own Pack & Send in sunny Nelson, on the other hand, made a lot of sense.

‘We’ve worked hard over the years and wanted to get back to a more balanced family lifestyle,’ says Jo. ‘Pack & Send offered us the opportunity to do something exciting and build a business that has customer service as one of its cornerstones. What’s more exciting than putting your money where your mouth is and getting out there? Admittedly, some of our corporate friends thought we were mad walking away from successful careers, but they’ve all since said how envious they are of the change we’ve made.’

The benefits aren’t all one way, either: as the Lawrences enjoy their new life in the city renowned for its thriving arts and crafts scene, so Nelson’s visitors, galleries and businesses will all enjoy access to their ‘one-stop-shop’ for freight and packaging requirements.

Lots Of Opportunities, Lots Of BenefitsPack & Send originated in Australia, where there are now over 100 stores, and was brought to New Zealand in August 2008 by Matthew Everest, who opened the country’s first store in Christchurch. He has since granted 12 franchises in

Auckland City, Albany, Hamilton City, Tauranga, Wellington City, Dunedin City, Queenstown and now Nelson. ‘That leaves a lot of potentially profitable gaps on the map – not only large commercial centres but also tourist destinations where travellers are often faced with taking home rather more than they brought,’ he points out. ‘The business plan projects up to 25 exclusive territories in potentially lucrative metro CBDs and large provincial centres, so it’s still a real ground-floor opportunity.

‘As a franchise it offers a very attractive benefit-set: high gross profit margins, modest initial investment, business hours only, no expensive stock holding required, no perishables and low staffing levels. It makes a great husband and wife opportunity, the initial training is extensive and the on-line support (which extends to practical packaging guidance) is impressive, too.’ Matthew says.

‘Franchisees make an initial investment of approximately $210,000 which includes all their costs right up until the day they open their newly fitted-out store. They receive full training and ongoing support, not only in packaging and freight but in all facets of operating a successful business – and they are supported by an extensive toolbox of marketing systems.’

Pack & Send is so confident its proposition stacks up that it insists franchise candidates take advice from independent financial and business advisors before they commit to the investment.

‘If you’re looking for a franchise with a moderate entry cost, nice clean work that will challenge but not tax you, and doors you can lock at the close of business hours every day, you can’t look past this,’ says Matthew. ‘To find out more, go to www.packsend.co.nz and click on ‘Franchises’. You’ll find all the information you need to start your own analysis of how a Pack & Send franchise could deliver your dream.’

Tired of the rat race? This husband-and-wife team hasn’t looked back since abandoning the corporate world for a Pack & Send franchise

Franchise Opportunity: Retail

Find more info at franchise.co.nz - Search: Pack & Send

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Advertiser InfoPack & Send PO Box 9028, Tower Junction, Christchurchwww.packsend.co.nzContactMatthew EverestP 0-3-982 7252M 021 799 [email protected]

Living the dream of lifestyle plus business – that’s the new direction for corporate high-flyers Bill and Jo Lawrence with their

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65

⇒ Duane Moul knows a good opportunity when he sees it – that’s why he jumped at the opportunity to take up a Deck & Fence Pro

franchise as soon as it was launched earlier this year.

Duane already owns a very successful GroutPro franchise, which is a sister company also run by The Pro Group. ‘After nearly three years of building my GroutPro business, I wanted to take it to the next level and run a multi-division franchise under the same branding,’ explains Duane. ‘I’ve already experienced the way that the systems, marketing methods, expertise and support of The Pro Group allow me to concentrate on the most profitable aspects of my business – being in customers’ houses and doing the work,’ he says.

‘Now, as a Deck & Fence Pro franchisee, I can attract new customers and offer existing customers a whole new set of services that increase my turnover and profits, too. I love the variety: no two days are the same and there is a tremendous amount of work out there.’

Specialised Products Add ValueDeck & Fence Pro specialises in restoring weathered decks, fences, outdoor furniture and garage doors, as well as exterior cleaning and painting of concrete, brick and plaster finishes. ‘Franchisees use a unique “top secret” chemical cleaning process not available in any store to bring all exterior timber back to an “as new” look,’ explain Pro Group founders Rob Howard and Joe Hesmondhalgh. ‘It’s not only effective – it’s environmentally friendly. It won’t harm plants or lawns, contains no phosphates, harmful bleaches or acids and won’t corrode nails and fixings.

‘The cleaning process strips all failed stains, dead wood fibres, moss, mould and lichen and brings back the wood surface underneath, ready for re-staining. Deck & Fence Pro stains and paints are top quality professional grade products, proudly manufactured here in New Zealand for our extremes of climate, and come in a range of popular colours.’

The result is a franchise that offers a real benefit to customers looking to renovate or add value to their property, says Duane. ‘Not only can we save them a huge amount of money by not replacing their old deck, fence or garage door; we can actually make their old weathered timber look brand new again. Best of all, as well as being very cost-effective for the customer, it’s very profitable for me as a franchisee. And while spring and summer are obviously the peak times, Pro Group have developed a number of other services to keep me busy throughout the year – something many outdoor franchises find a challenge.’

Low Start-Up CostsA Deck & Fence Pro franchise is just $17,950 +gst, ‘and includes everything you need to hit the ground running and start earning straight away,’ promises Joe. The initial package includes all equipment,

tools, initial product supply, sales and marketing materials, manuals, uniforms, stationery, training and access to the group’s online support forum and cloud-based computer systems.

‘Thanks to the comprehensive training, no experience is necessary. However, you will need a keen eye for detail, a decent work ethic, willingness to follow proven systems and some DIY experience,’ Rob says. ‘You’ll also need the right attitude – what makes our franchisees most successful is an outgoing personality and an ability to get stuck in to solve customers’ problems.’

Massive Market PotentialThe market for Deck & Fence Pro is massive, says Joe. ‘Look around; there are fences everywhere and most houses have a deck and some kind of exterior furniture. Many people are too busy working to want to spend their precious weekends doing it themselves, or don’t have the skills or knowledge to do a professional quality job.’ Duane agrees: ‘You’d be amazed at the DIY disasters I have to go and fix. Plus, with an ever-ageing population of people who want a quality job at a fair price, there’s an abundance of work out there for us.’

Since the launch of the franchise just six months ago, Deck & Fence Pro has already appointed ten franchisees around the country with a further four ready to start in August. ‘Spring will see a massive demand for our services, so we’re actively seeking franchisees across New Zealand to start training now,’ says Joe. ‘That means they’ll be ready to reap the rewards of our nationwide TV spring advertising campaign that’s going to bring in a flood of customers. Mind you, we have work available in many areas right now, so why wait?

‘Some areas are already full and others are selling fast, so now’s the time to find out if there’s still an opportunity in your area. Download a free franchise information pack at www.deckandfencepro.co.nz or give me a call today,’ Joe invites.

And if working inside is more your thing, for a slightly higher investment of $39,950 +gst GroutPro still has a few franchise opportunities in the following areas: Auckland (west, central and south), Gisborne, Taupo, Dunedin and Queenstown. As Joe says, ‘Whichever you choose, you’ll be joining an award-winning team in an enjoyable and profitable business.’

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Before and After: Deck & Fence Pro can restore exterior timber to look as good as new


Franchise Management: Legal Matters

⇒ The recent highly-publicised High Court case between Club Physical and a multi-unit franchisee raised a number of important issues, not

least about the enforceability of restraint of trade clauses.

The Club Physical dispute commenced on 8 February 2013 when Stuart Holder, who was a multiple franchisee of Club Physical through his three Colven companies, rebranded his three gyms without warning as Jolt Fitness. Existing Club Physical members found themselves transferred to the new brand and staff were similarly surprised.

The matter went to Court on 26 February with Club Physical seeking an interim injunction against Jolt Fitness to require it to stop trading, while Jolt Fitness sought an interim injunction to stop Club Physical using the database to contact members of the three re-branded gyms.

The decision (Health Club Brands Ltd v Colven Botany Ltd and others – Feb 2013) published on 7 March was that the first injunction was granted and Jolt Fitness must immediately stop trading from its three existing premises and, in one case, within 5kms of the existing premises. The counter injunction was denied, allowing Club Physical to use the database. On appeal, a stay was granted to allow the parties to progress discussions towards an amicable resolution of the dispute. Ultimately, an agreement was reached for Club Physical franchisor Paul Richards to take over the leases and restore all three gyms as Club Physical, with original branding and classes from 30 March. The whole dispute, including High Court hearings, lasted just over seven weeks.

Calculating The Risks

One of the issues at the heart of the matter was the enforceability of the franchise agreement’s restraint of trade clauses. Such clauses are common in franchise agreements: their purpose is to protect the goodwill developed through the franchisor’s business model and to prevent a franchisee from exploiting the knowledge he or she has gained in running a franchised outlet and using it to set up in competition with the franchisor or other franchisees. The knowledge gained is considered (depending on the facts of each particular case) to be part of the protectable interest of the franchisor, communicated through training, support, systems and manuals. However, there is also the consideration that the franchisee has a right to use their own skills and experience for their own benefit. For this reason, although dependent on the specific facts of each case, enforcing a restraint can often be quite a challenge, as much case law illustrates.

In the Club Physical case, each side will have had to assess whether the restraints were applicable and enforceable in the particular circumstances. The decision-making leading to the court litigation was therefore the result of calculated risks on both sides.

The franchisee, Mr Holder, took a risk in cancelling his three franchise agreements and continuing to trade in the same premises with the same client members under a new name. He argued that he made that decision because the franchisor had amongst other things, breached essential terms of the franchise agreement (the duty to assist and support the franchisee) and insisted on an inflexible pricing structure combined with a misdirected advertising strategy. He alleged that these factors were driving all three of his gyms to insolvency; in other words, that the franchisor had substantially breached its obligations which justified his cancellation of the agreement.

The franchisee claimed he had to take immediate action to save himself financially. However, the risk was that if he failed to make out his case against the franchisor for breach of essential terms, the action taken could amount to what is called a ‘repudiation of its obligations’ and the franchisor could itself cancel the agreement based on that repudiation. The franchisor could then seek to enforce the trade restraint clauses in the franchise agreement and either obtain an injunction to stop the franchisee continuing to trade with his new business, or claim damages for breach of contract due to his termination of the franchise agreement, or both. If successful, particularly with the injunction, then the franchisee would be in serious

David Munn looks at a recent court case and analyses the risks associated with restraint of trade clauses in franchise agreements

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RISK MANAGEMENT: what happens when it all goes wrong?

trouble and possibly compounded further by continuing lease obligations.

The franchisor appears suddenly to have been faced with a notice of termination of three of its franchises at once. That was a significant proportion of the overall nine-gym network with immediate loss of revenue.

The risk now facing the franchisor was whether they should seek to enforce their claimed rights under the franchise agreement given all the hassle, public attention and costs that would involve. The franchisor calculated that, apart from loss of revenue, by permitting the franchisee to re-brand and continue its new business, the franchisor would lose the opportunity to retain members’ loyalty to the Club Physical brand and would damage its associated goodwill.

In such circumstances, franchisors must also consider the potential for creating precedents. If they don’t enforce their agreements, they appear weak and the agreement is perceived as “toothless”. That suggests the franchisor is not prepared or able to protect the overall integrity of the franchise system and the brand for the benefit of everyone.

Given that risk, any franchisor might decide to take legal action to enforce the agreement, but they have to accept the risk that they may lose the case. Even worse, a spotlight will be shone on their own conduct in operating the franchise and how they have discharged their contractual responsibilities to the franchisee. If they are held to have given sufficient cause for the franchisee to cancel, not only may the restraints not be enforced – other franchisees will be at least unsettled and at worst encouraged to make further challenges. Such a loss may also mean their franchises are then less attractive to new franchisees.

Why The Injunction Was GrantedIn the Club Physical case, the case before the High Court was an application by the franchisor for an interim injunction to stop the franchisee from operating its new businesses under a new brand within a distance of 5 km from each of the premises that had been operated as a Club Physical gym. There was also a cross-application by the franchisee for an injunction to restrain the franchisor from accessing its club members which Mr Holder claimed he had a right to now that the agreement was at an end.

The outcome of the High Court case favoured the franchisor. Her Honour Winkelmann J held that, although the draft trade restraint clauses were not properly completed in the franchise agreements and two of them had no geographical distance noted, she found for the purpose of deciding if there was a serious question to be tried that the restraint at least operated to restrict the actual business premises being used by the franchisee for its new businesses. With the third agreement, where a hand-written distance had been inserted, the court allowed the restraint for the 5 km distance from the premises. By way of observation, with two of the businesses the franchisee could presumably have set up next door without restraint due to the poorly-drafted clause in those agreements.

It is important to realise that this was an urgent application for an interim injunction to stop the franchisee doing what it was doing pending the whole matter being dealt with at a later date at a full substantive trial. The judge held that there was a reasonable prospect of the franchisor ultimately succeeding in its claim for a permanent injunction, and that the trade restraint clauses were reasonable to protect the franchisor’s goodwill established by its franchise system and brand. She went on to hold that if the franchisee were allowed to continue his new business in competition with Club Physical, it would be impossible for a Club Physical franchisee to re-establish itself in the area due to the limited demand for such gyms. She concluded there was a serious question to be tried that the restraints as she applied them were reasonable.

The judge then went on to consider the franchisor’s conduct, which the franchisee alleged had given him grounds to cancel the franchise agreement. The judge found the franchisee’s evidence poorly supported its case and under the law did not substantiate such a serious step as cancellation. A

significant part of the evidence of the franchisee was found to be confused and contradictory. To elect to cancel a contract under the Contractual Remedies Act, as Mr Holder did, those grounds need to be very solid. They should either relate to a representation or contract term that is considered essential, or (amongst other factors) the breach should substantially reduce the benefit or substantially increase the burden of the contract to the party that elects to cancel. To cancel without such solid grounds substantially increases the risk.

Why The Counter Injunction Was Not Granted

On the cross-application to stop the franchisor accessing the member base, the judge declined to grant it because she did not consider the franchisee had made out a sufficiently serious case to ultimately be tried at a later substantive trial. This was because the agreement placed specific obligations on the franchisee to co-operate with the franchisor upon a cancellation and to ensure a smooth transition of the business.

‘This plainly contemplates that Health Club Brands will simply step into the shoes of the franchisee defendants and carry on the business with the existing customers,’ the judge noted. ‘To do this, [the franchisor] would need access to the client details and it would have to be free to contact them.’

The Outcome

Accordingly, the risk taken by the franchisee did not pay off, with disastrous consequences expected to unfold. They had stated that if the injunction were granted, ‘Mr Holder would lose his $2.1 million capital investment in the business, and [his companies] would be rendered insolvent.’

Although the franchisor won the injunction and the settlement negotiated later saw it take back the three gyms, they would no doubt have preferred to have avoided the case for many reasons.

Factors To Consider When Assessing Risks

In assessing the risks for franchisors and franchisees in situations where the relationship of the parties has broken down and the continued viability of a business is seriously in question, there are several factors to consider regarding the enforceability of trade restraint clauses. Some are set out below, but the list is far from exhaustive and in every case parties affected should take comprehensive legal advice before any decision is taken.

Where a restraint of trade clause is involved, it usually comes before the court initially as an interim injunction application. An interim injunction is a temporary remedy granted at the discretion of the Court (not as of right) and intended to protect a party against loss which could not be adequately compensated by damages if that party ultimately wins at a trial which could be many months away. Based on the court’s preliminary view as to the likely result of the case at trial, an interim injunction is designed to preserve the court’s ability to give permanent remedies at the later substantive trial.

There is traditionally a need for courts to be cautious when granting injunctions. This does tend to raise a question mark in the Club Physical case as the Judge recognised that by granting the interim injunction, as she did, it would have a ‘catastrophic effect’ on the franchisee’s businesses.

Where an applicant is seeking an interim injunction, it only has to satisfy the court on two factors:

1. That there is a ‘serious question to be tried. The issue of whether there is a serious question to be tried generally will be satisfied if the applicant can show that it has a reasonable prospect of succeeding in its claim at the later substantive trial. It is usually decided based on an exchange of affidavit evidence alone and the applicant does not have to prove their case in depth, as that would take place at the later substantive trial if the case ever progressed that far (such cases often don’t, as the interim injunction is often effective enough to stop a party in its tracks – as happened with the Club Physical franchisee).


Franchise Management: Legal Matters

2. That the ‘balance of convenience’ favours the applicant for the interim injunction. This means that the court in its discretion will weigh the needs of the applicant for the injunction against the other party against whom the injunction is sought. The court will generally consider where the interests of justice lie in the particular circumstances of each case. A number of factors are taken into account by the court in each case but one of the most important considerations is whether compensation damages would be an adequate remedy, without the need for an injunction, if the applicant were to succeed at the future trial. In the Club Physical case, the judge thought this would not be the case due in part to the loss of the franchisor’s loyal membership in the meantime. Another factor is whether, if the interim injunction were granted and the defendant were ultimately to win, could the defendant be adequately compensated by the applicant? A further factor is whether there would be a damaging effect to third parties if an injunction were granted. In another franchise case, a court chose not to grant an injunction in part because of the flow-on effect such an action would have had upon staff, a bank and possibly a landlord.

It is generally because so many different factual considerations come into play that judges’ decisions vary from case to case. The principles of law are fairly well-established but it is their application to individual cases – and what the judge sees as just and appropriate in each case –that determines the outcome. In the Club Physical case, justice was found to favour the franchisor. It is interesting to compare this with another High Court case involving the Pita Pit franchise (PPO (NZ) Ltd v Wallace – Dec 2010). The principles unequivocally favoured a restraint of trade clause not being enforced by the grant of an interim injunction where there was a new competing business established in the same premises where a Pita Pit franchise had previously operated. One factor was that the judge saw no reason why the franchisor in the circumstances of that case may not open another outlet in the same area. Another factor was the franchisor’s own conduct, which appeared to influence the judge in reaching his decision not to grant an injunction.

Restraints Are LegitimateRestraints of trade are recognised as being both important and legitimate in a franchise context. In one of the leading cases in this area involving Dymocks Franchise Systems (Dymocks Franchise Systems (NZ) NSW Pty Ltd v Bigola

For more info please call 09 448 0280 or email [email protected]

Plumb’In, the largest bathroom bulk retail specialists in the market.

So if you are looking for a business that offers a challenge with great support then join the team that pulls the plug on the daily grind and makes everyday a great one!

Shrewd buying, low overheads and exclusive products mean that we can offer direct prices on many of our lines, without gimmicks.

Plumb’In success over the last 10 years is based on people with the enthusiasm, customer focus and drive to be the very best. It’s what sets us apart from the rest.

For more information:

Walter or Ting 09 448 0280

Email: [email protected] visit: www.plumbin.co.nz

The business to pull the plug on the daily grind

High Quality - Low Price! Bathrooms

Proven Successful Franchise SystemEstablished Brand & Supply ChainClear Set Up Cost & BudgetingFull Business & Marketing SupportFull Training & On-going Assistance

“Give us a call”


Enterprises Ltd), a restraint of trade clause was upheld in its entirety. The trial judge said (and this was not altered on appeal):

‘The franchisee is assisted in the start up and running of the business; it borrows expertise and support systems of all kinds. To put it shortly, if a franchisor could not protect its interests after termination, the franchise industry generally would collapse.’ It is interesting to note that the same attitude toward restraint clauses in franchise agreements was affirmed by the Court of Appeal in another recent case involving the SKIDS franchise (Skids Programme Management Ltd v McNeil – 2012).

Some Lessonsa) For restraint clauses to be upheld, they need to be carefully drafted. Appropriate legal advice should be taken to ensure the restraint fits the particular nature of the business and what interest clearly needs protection. In this context, the restraint should also not be more than is reasonably required (both in duration and geographical reach) to protect the franchisor’s legitimate interests (its brand, customer base and intellectual property being the principal ones). Restraints established simply to stifle competition will generally not be acceptable.

b) The parties should avail themselves of legal advice before they enter into decisions to walk away from a contract or to enforce terms of a contract like that in the Club Physical case. The effect of restraint provisions should never be underestimated. In conjunction with their professional advisors, it is essential both parties undertake a full cost benefit and risk analysis. As already stated, each case will be different with regard to how the established legal principles are applied.

c) Documents should be properly executed by all parties intended to be bound by them. It should also be very clearly stated in what capacity they are signing. It is usually not enough for a franchisee company to have signed if it is intended that directors also be personally bound to restraint obligations. It should also be clear at what stage they apply; for example, if a director retires from a franchisee company even though the franchise has not terminated or been sold.

d) If a franchisee intends to cancel a franchise agreement due to what they perceive as a failure on the part of the franchisor to perform its obligations, then the franchisee needs to be very confident that there are solid legal grounds to justify cancellation. Is the franchisor’s conduct or lack of performance sufficiently serious or deficient to justify in law the election to cancel? Once cancelled, the franchisee cannot back-track, particularly if (as with Club Physical) the franchisor treats it as a repudiation and cancels the agreement itself.

e) Surrounding clauses and definitions in the franchise agreement dealing with the consequences of termination should also be carefully considered. In addition to intellectual property such as trade marks, the franchisor may have rights to acquire the lease or plant if it does not already possess established rights to those items. Who has a right to customer lists, or software, or other valuable assets associated with the business?

f) Perhaps of greatest importance, is there a need to look at alternative dispute resolution processes first such as mediation? Many franchise agreements stipulate such an action. Obviously, in the Club Physical case the franchise relationship had broken down; one can only speculate as to why both parties did not strive together to find an alternative solution and reduce the risk of litigation.

FinallyThe Club Physical case demonstrated the dangers of playing out disputes in public as well as in the courts. While the restraint clauses were eventually upheld, the cost, distress and brand damage sustained by both parties (as well as other franchisees) were obvious to all.

Franchisors and franchisees should educate themselves about the many and varied factors that go into creating a quality franchise system and network of relationships. This includes ensuring that both parties have the potential for profitable businesses. Given the many valuable resources and guidance made available by the Franchise Association of New Zealand, the Franchise Relationships Institute and this magazine and the associated Franchise New Zealand website, among others, there is no excuse for ignorance. Knowledge does not mean conflict and challenges will not arise, but it will enable them to be handled promptly and constructively. By doing so, the risk for both franchisors and franchisees will be considerably reduced.

About the AuthorDavid Munn is a commercial law partner with Gaze Burt, lawyers at Auckland. He specialises in franchising and has over 30 years experience.

70 Westpac Directory of Franchising and Advertiser Index Franchise New Zealand Volume 22 Issue 02 Winter 2013

⇒Franchise and Business OpportunitiesCompany Contact Pa

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0800 2 Fix It Home & Building

$30,000 NZ’s leading trade services franchise system. Seeking plumbers, mechanics and electricians. 6 6

N M 021 403 540 franchise.co.nz – search: 08002fixit

0800 Sunshade Home & Building

$25,000 0800 Sunshade are designers, manufacturers and installers of outdoor weather protection products.

7 7

N P 0-6-876 9675 franchise.co.nz – search: Sunshade

AA Auto Centre Auto Services

$150,000 NZ’s premier provider in the auto service and repair market. 26 26

N P 0-9-966 8800 franchise.co.nz – search: AA Auto

Accessman Home & Building

$250,000+ Specialist hire company supplying access equipment to the construction and maintenance industry.

8 8

Y P 0-3-341 6333 franchise.co.nz – search: Accessman

ActionCOACH Business & Commercial

$80,000 ActionCOACH is the world’s #1 global network of business coaches and trainers. 30+ 1200

Y P 0800 228 466 franchise.co.nz – search: Actioncoach

AluRestoreSteve & Beryl Todd

Home & Building

$49,000 Fully mobile aluminium joinery re-coating franchise. Specialised hard-wearing coatings with huge colour range. No other franchise of its kind in New Zealand. Seeking enthusiastic people who enjoy interacting with clients, using equipment, have an eye for detail and who are interested in customer satisfaction.

1 1

N P 0508 737 867 M 0274 756 937 E [email protected] W alurestore.co.nz franchise.co.nz search: Alurestore

Amazing Clean New Zealand

Home & Commercial

$100,000 - $150,000

Ultrasonic blind cleaning & repairs and curtain, upholstery/mattress cleaning. 1 70+

N P 0800 2 AMAZE franchise.co.nz –search: Amazing

Anchor Franchise Rebecca Muir

66 Food & Beverage

$300,000 Market leader in the sales and distribution of milk products and beverages throughout New Zealand including Anchor, Primo, Zing, Mammoth Supply Co, Fresh N Fruity, Dewinkel, Country Goodness, Mainland, Kapiti, Calciyum and Eon. National franchise structure operating since 1992 offering exclusive territories.

80 80

Y P 0-9-295 2742 E [email protected] W anchor.co.nz franchise.co.nz – search: Anchor

Anytime Fitness Health & Fitness

$280,000 Anytime Fitness is a convenient 24-hour international fitness club franchise.0 4 1300+

N P 0-7-839 0209 franchise.co.nz – search: anytime

AquaPaintz Direct Retail $60,000 Paint manufacture and retail. High profit. No previous experience required. 2 2

N P 0-3-477 3211 franchise.co.nz – search: AquaPaintz

Archgola Home & Building

$10,000 Provider of all-weather permanent outdoor canopies. Seeking clever DIY people or tradesmen. 9 9

N P 0-9-426 0033 franchise.co.nz – search: Archgola

Armstrong Smarter Security

Business & Commercial

$150,000 Armstrong for smarter security. Retail and mobile locksmith and alarm specialists. 14 14

N P 0-9-415 0585 franchise.co.nz – search: Armstrong

At Your Request Franchise Group

Home & Commercial

$14,000 NZ’s premium home, commercial and lawn service franchise system. 200+ 200+

N P 0800 297 297 franchise.co.nz – search: Your Request

Baby-on-the-Move Retail $35,000 Specialising in rental and sales of baby and toddler car seats and other products. 26 26

N P 0-9-422 2285 franchise.co.nz – search: Baby

Bakers Delight Food & Beverage

$295,000 Bakers Delight is the world’s largest franchise bakery with 700+ bakeries across 4 countries, serving 2 million customers each week. Trading for 29 years. Proven business formula, with over 90% success rate. Full training including baking and ongoing operational assistance. Turnkey operation.

36 700+

Y P 0800 225 388 E [email protected] W bakersdelight.co.nz franchise.co.nz – search: Bakers

Bark Busters Leisure & Education

$20,000 - $40,000

Bark Busters is the world’s largest, most trusted dog training company. 2 450+

N P 0800 167 710 franchise.co.nz – search: Bark

Base7 Home & Building

$120,000 Mobile flooring franchise. Lower overheads, higher returns. Experience not essential, full training provided.

9 9

N P 0508 356 677 franchise.co.nz – search: Base7

Bathroom Direct Home & Building

$150,000 - $250,000

Franchised bathroom renovation business. Supply and installation of bathroom products. 4 4

N P 0-9-913 3110 M 021 959 796 franchise.co.nz – search: Bathroom

bb’s CaféRachel Casley

Food & Beverage

$300,000 One of NZ’s most proven and trustworthy franchises. No previous experience required. Full training and support given. Seeking people with drive and a passion for coffee, fresh food and exceptional customer service.

21 60

Y P 0-9-377 7615 E [email protected] W bbscafe.com.au franchise.co.nz – search: bb’s

Bedpost Retail $150,000 Bedpost is New Zealand’s leading bedding franchise, Seeking energetic, customer-focused people.

14 14

Y P 0-9-278 1010 franchise.co.nz – search: Bedpost

Big Paddle Company Business & Commercial

$42,500 - $54,500

We provide a business-consulting model. Seeking experienced successful business people. 1 2

N P 0-9-630 7710 franchise.co.nz – search: Paddle

Bin Inn Retail Group Co-operative

Retail $110,000 Co-operative of nationwide wholefoods and speciality grocery stores. No previous experience required.

32 32

N P 0-9-274 5702 franchise.co.nz – search: Bin Inn

Black Forest Waffle Hut

Food & Beverage

$27,500 Popular European alpine chalets - freshly baked waffles, hot & cold drinks. 3 3

N P 03-688 6064 franchise.co.nz – search: Waffle

westpacDIRECTORYof franchising

Franchise & Business Opportunities

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Search the Westpac Directory of Franchising at www.franchise.co.nz 71

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Bookends Education $30,000 Specialists in supplying all textbooks nationally to schools and other educational institutions. 18 18

Y P 0-3-377 9555 franchise.co.nz – search: Bookends

Breakers Café & Bar Food & Beverage

$300,000 - $500,000

NZ’s favourite surf/beach themed café & bar, focused on good old-fashioned service. 10 10

Y P 0-6-834 0537 franchise.co.nz – search: Breakers

Brumby’s BakeriesRachel Casley

43 Food & Beverage

$400,000 - $450,000

Australia’s longest running and very successful bread franchise. The Brumby’s system and procedures have been developed to help you run your business. Every facet of running a Brumby’s store has been standardised to promote efficiency. Estimated turnkey price, depending on size and location.

18 329

Y P 0-9-377 7615 E [email protected] W brumbys.com.au franchise.co.nz – search: Brumby’s

Brumby’s GO!Rachel Casley

Food & Beverage

$323,000 - $505,000

Brumby’s GO! is a new evolution of the tried and tested Brumby’s Bakery concept – using Brumby’s freshly baked bread. Ready to eat, freshly prepared healthy snacks on the run. Kiosk or stand-alone options. Baking experience not essential. Estimated turnkey price, depending on size and location.

New 12

Y P 0-9-377 7615 E [email protected] W brumbysgo.com.au franchise.co.nz – search: Brumby’s GO

Burger FixxNarendra Bhana

29 Food & Beverage

$220,000 Burger Fixx is a new, healthy fast-food franchise system that is profitable and relatively easy to operate. It is ideal for motivated customer-care focused franchisees who are keen to be part of an exciting new concept. Full training provided.

1 1

Y M 021 0255 6210 E [email protected] W burgerfixx.com franchise.co.nz – search: Burger Fixx

BurgerFuelCraig Notman

12 Food & Beverage

$300,000+ The ultimate experience in gourmet burgers. 100% pure NZ grass-fed beef, butterfly-cut chicken breast and fresh ingredients. New Zealand operated since 1995. Seeking hardworking and dedicated people with great attitude, sound financial backing, affinity with food, customer service and a desire to develop and innovate.

30 41

Y P 0-9-376 6007 E [email protected] W burgerfuel.com franchise.co.nz – search: Burger Fuel

Burger Wisconsin Food & Beverage

$140,000 “Home of the world’s best burgers.” Gourmet opportunity for operators with good taste. 24 24

N P 0-4-384 9000 franchise.co.nz – search: Wisconsin

CaciGlenice Riley

55 Health & Beauty

$250,000+ Caci is a highly sought-after, well-recognised household name. Our clinics are a profitable business in a growing industry. Successful Caci franchisees come from all walks of life – from nursing through to corporate executives and beauty therapists wanting to go to the next level.

29 29

Y P 0-9-847 9219 M 021 980 890 E [email protected] W franchise.micromode.co.nz franchise.co.nz –search: Caci

Café BotannixAlan Piper

56 Food & Beverage

$150,000 Contemporary deli cafes serving organic coffee and organic food options in Palmers garden centres.

4 4

N P 0-9-444 4369 M 021 881 119 E [email protected] franchise.co.nz – search: Botannix

Cafe2UJohn Stanton

39 Food & Beverage

$129,410 Cafe2U is the world’s largest mobile coffee van franchise. Cafe2U’s success is based on the unique “Acceleration Package” that guarantees and fast-tracks income. Intensive four-week training programme and ongoing support is provided. All you need to do is bring your smile.

7 200+

Y P 0508 004 388 E [email protected] W cafe2u.co.nz franchise.co.nz – search: Cafe2U

CAL SystemsIan Charman

Financial Services

$90,000 Turnkey operation. Set up and run a finance company from home. No finance experience required. Exclusive training, support, documentation and custom-built software provided. 37 years’ experience and proven success.

30 30

N P 0-4-293 6899 E [email protected] W calsystems.co.nz franchise.co.nz – search: CAL

Calendar ClubEstelle Arts

8 Retail $3,000 Be your own boss. Manage your own retail business for a 9 week season with Calendar Club, the leading global calendar retailer. If you have a focused entrepreneurial spirit with a passion for sales this is for you. $3,000 refundable deposit required.

20 1400

N P 0-9-263 5676 M 027 295 3277 E [email protected] W calendarclub.com.au franchise.co.nz – search: Calendar

Cartridge WorldGeoff Smith

6 Computer $100,000 – $125,000

The largest, most experienced cartridge refilling company worldwide. Franchisees operate from retail premises, refilling cartridges, retailing new cartridges and other printer consumables. Operating worldwide. Easily learned, full training provided. Includes stock, plant, training and licence fee.

36 1650

N P 0-3-446 8600 M 0274 339 829 E [email protected] W cartridgeworld.co.nz franchise.co.nz – search: Cartridge

Cash Converters Retail P.O.A. World leaders in the retailing of quality second-hand goods. Franchises available New Zealand wide.

13 Y P 0-9-414 1960 franchise.co.nz – search: Converters

Ceiling Master Home & Commercial

$62,500 Specialist cleaning system designed for ceilings, walls and exterior house washing. 3 3

N P 0-3-365 5111 franchise.co.nz – search: Ceiling

B-C

Lookingforabusinessopportunity butdon’tknowwheretostart?1ChoosebyIndustryWe have divided all the opportunities into ten main industries. Just look down the third column to select the type of business you are interested in. You can also search the Directory by industry online at franchise.co.nz.

2ChoosebyInvestmentThe ‘Investment’ figures quoted in the fourth column are for guidance only and may not include GST, equipment, working capital or other items unless specifically included. You should confirm such items direct with the franchise concerned.

3ChoosebyTypeThe description contains a brief description of the franchise and may include information on the type of people the opportunity is best suited to. More information can be found online at www.franchise.co.nz - use the search word in the right hand column to find it easily.

Please NoteEach listing contains information as supplied by that particular entity. However, you should confirm the accuracy of the information in each particular case. The FANZ column advises you which are members of the Franchise Association of New Zealand. You are advised to confirm the membership status of any entity. Neither the sponsors of this Directory nor the publisher accept liability for any omissions or errors.



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Central Landscape & Garden SuppliesPaul Brinkman

26 Home & Building

$200,000 Landscape and garden supply yards providing bulk and bagged products. Pick-up and deliveries. Will suit hands-on owner operators with a passion for excellent customer service who take pride in customer satisfaction.

9 9

Y P 0-9-273 5352 M 0275 764 507 E [email protected] W centrallandscapes.co.nz franchise.co.nz – search: Landscapes

Charlie Lovett David Newport

45 Food & Beverage

$490,000 turnkey

Charlie Lovett is a unique coffee/bakery concept, setting itself apart from others by focusing on the quality and freshness of its food and beverages. Offering close relationship/links with owners and Head Office. No food industry or retail experience necessary as full training is provided.

New 8

N P 0-9-377 7735 M 021 304 414 E [email protected] W switchbusiness.co.nz franchise.co.nz – search: Charlie

Civic Video Retail $150,000 Home entertainment stores specialising in the rental and sale of DVDs and games. 56 300

Y P 0-9-523 6322 franchise.co.nz – search: Civic

Cleancorp AucklandRose Dunn

Home & Commercial

$25,000 Cleancorp offers franchisees an ethical, profitable and flexible business. See us first for guaranteed income. Flexibility, security and potential for enthusiastic hard-working individuals and couples looking to start their own lifestyle business. Cleancorp offers a range of franchise opportunities including home cleaning and commercial cleaning.

105 105

Y P 0-9-304 1570 M 021 507 293 E [email protected] W cleancorp.co.nz franchise.co.nz – search: Cleancorp

Cleancorp Franchise Systems

Home & Commercial

$20,000 An ethical, profitable and flexible home and commercial cleaning business. 105 105

Y P 0-9-304 1571 franchise.co.nz – search: Cleancorp

Clean Planet Business & Commercial

$20,000 Commercial cleaners the environment loves. The first 100% eco-friendly commercial cleaning franchise.

42 42

Y P 0-9-622 0828 franchise.co.nz – search: Planet

Cleantastic Commercial Cleaning


$13,800 A business of your own with a guaranteed income and lifestyle opportunities. 280 1000

Y P 0-6-843 3320 franchise.co.nz – search: Cleantastic

Club Physical Health & Fitness

$200,000 Club Physical is a health club. Our vision is to become New Zealand’s first choice in wellness. 14 14

N P 0-9-417 0071 franchise.co.nz – search: Physical

Cobb & Co Food & Beverage

$200,000 The iconic kiwi family restaurant operating successfully throughout New Zealand since 1970. 8 8

N P 0204 1007 007 franchise.co.nz – search: Cobb

Coffee Culture Food & Beverage

$350,000+ Creating luxurious environments for our guests to enjoy the finest espresso coffee since 1996. 14 17

Y P 0-3-377 2605 franchise.co.nz – search: Culture

ColorGlo International Auto Services

$47,000 Colour restoration and repair of leather, vinyl, plastic, cloth, carpet. 4 315

N P 0-9-524 6214 franchise.co.nz – search: Color Glo

Colourplus Retail $250,000 New Zealand’s fastest growing décor franchise. No industry experience required. 38 38

Y P 0-9-818 9215 franchise.co.nz – search: Colourplus

Columbus CoffeeNathan Bonney

49 Food & Beverage

$250,000 - $350,000

Franchise System of the Year 2009/10 and 2010/11. A unique combination of café and retail. Enjoy NZ’s best coffee and first class service in a relaxed professional and sophisticated setting. NZ concept operating since 1995. NZQA certified operating manuals and training systems. Suit owners with passion for gourmet coffee and value of customer relationships.

30 30

Y P 0-9-520 1044 M 021 347 145 E [email protected] W columbuscoffee.co.nz franchise.co.nz – search: Columbus

Complete First Aid Supplies


$55,000 Market leader in supply of first aid kits to businesses. Seeking self-motivated people. 4 4

Y P 0-9-827 7726 franchise.co.nz – search: First Aid

Computer TroubleshootersDave Mudford Lyn Aikman

Computer $27,500 On-site and remote ITC support through to total managed services, targeting small to medium businesses and SOHO. Operating in over twenty-five countries. National brand, full training and support. Ideal for those with corporate backgrounds and management skills or technician/IT specialists able to work hands-on.

28 500

N P 0800 728 768 P 0800PCTROUBLE E [email protected] W comptroub.co.nz franchise.co.nz – search: Troubleshooters

Concerto Networks Computer $30,000 Nationally branded consistent quality business technology solutions for small and medium sized enterprises.

20 85

N P 0800 000 077 franchise.co.nz – search: Concerto

ContoursRob Kerridge

68 Health & Fitness

$300,000 Contours is a nationwide chain of health and fitness clubs exclusively for women. 15 15

Y P 0-9-577 4223 M 022 479 1233 E [email protected] W contours.co.nz franchise.co.nz – search: Contours

Cookie Time Food & Beverage

$65,000 + Distribution of snack products to retailers & other on-sellers. 42 44

N P 0-3-349 6161 franchise.co.nz – search: Cookie

Cookright Kitchen ServicesRobyn Broughton

52 Food & Beverage

$70,000 Cookright, the kitchen hero, saving kitchens time and money. Deepfryer, overhead filter and hood cleaning. Cooking oil filtering. Oil and kitchen consumables product sales. Cookright has significant income potential with minimal competition for motivated, hard-working, practical operators who can sell and are well organised.

31 31

Y P 0800 804 104 E [email protected] W cookright.co.nz franchise.co.nz – search: Cookright

Cooltime Home & Building

$30,000 Air conditioning installation company. Preferred installer for NZ’s leading electrical retailer. 7 7

Y M 0275 973 737 franchise.co.nz – search: Cooltime

Coresteel Buildings Home & Building

$75,000 Specialises in the design and construction of rural, commercial and industrial buildings. 22 22

N P 0-9-438 1562 franchise.co.nz – search: Coresteel

CrestCleanGrant McLauchlan

2 Business & Commercial

$10,000 Full service franchise, all contracts provided. Guaranteed income paid twice monthly. CrestClean prepares GST returns, accounts and tax returns. NZQA training programme provides career pathway. Operating since 1996. Franchises operating nationwide. Master franchises are also available.

343 344

Y P 0800 273 780 E [email protected] W crest.co.nz franchise.co.nz – search: Crest

Crewcut Home Services

$8,800 + equip

Quality home service franchise providing property maintenance requirements to the domestic market.

260 260

Y P 0-9-481 0004 franchise.co.nz – search: Crewcut

Crystal Clear UVTEC Home Services

$40,000 - $60,000

Crystal clear liquid coating curing on glass blocking up to 99% of UV light. 1 1

N P 0800 488 832 franchise.co.nz – search: Crystal

CutshopSimon Morton

Home & Building

$800,000 Cutting, edging and drilling of sheet materials for the DIY, cabinet making and commercial shop fitting industry. Cut to any shape or size. Seeking experienced individual prepared to employ and manage a production and marketing team to achieve above average return on investment.

1 1

Y P 0-9-527 2856 M 021 974 625 E [email protected] W cutshop.co franchise.co.nz – search: Cutshop

Deck & Fence ProJoe Hesmondhalgh

65 Home Services

$17,950 Professional home service franchise offering specialised restoration services to homeowners for decks, fences, garden furniture, garage doors and more. Oil, stain and paint restoration specialists. Franchises available nationwide. Full training and equipment included. Download a free info pack at www.deckandfencepro.co.nz

12 12

Y P: 0-7-552 5311 M 0274 108 940 E [email protected] W deckandfencepro.co.nz franchise.co.nz – search: Deck

Diamond Fusion Home & Building

$50,000 Easy clean glass. Seeking passionate, trustworthy people, sales & marketing an advantage. 5 5

N M 0274 666 785 franchise.co.nz – search: Diamond

Dollar Value Retail $160,000 Retail stores providing great product and service value to all customers. 4 4

N M 029 289 6149 franchise.co.nz – search: Dollar

Domino’s Pizza Food & Beverage

$350,000 Specialist quick service pizza franchise. Over 1 million pizzas a day worldwide. 77 8600

N P: 0061 7 3633 3333 franchise.co.nz – search: Domino’s

Donut KingCraig Watson

Food & Beverage

$250,000 - $330,000

Donut King is a speciality donut and coffee chain which has been growing steadily in Australia since 1981. Now available in NZ. Full training and support given. Seeking self-motivated, energetic, positive people with good communication skills. Estimated turnkey price, depending on size and location.

3 350

Y P 0061 4 1836 0392 E [email protected] W donutking.com.au franchise.co.nz – search: Donut King

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Dream DoorsDerek Lilly

37 Home & Building

$30,000 + Design, manufacture and supply of made-to-measure kitchens, bathrooms and bedrooms for retail and trade customers. Seeking hard-working, sales-driven, computer literate go-getters who are willing to follow a proven dynamic international business model.

10 35+

Y P 0-3-443 5133 E [email protected] W dreamdoors.co.nz franchise.co.nz – search: Dream

Driving Miss Daisy Home Services

$20,000 Driving Miss Daisy is a safe, friendly and reliable companion driving service. 29 50

Y P 0800 948 432 franchise.co.nz – search: Daisy

DVDNow Kiosks Retail $50,000 - $130,000

DVDNow Rental Kiosks opportunity to establish an inexpensive DVD, Blu-ray and game rental business.

10 3200+

N P 0800 DVDNow franchise.co.nz – search: DVDNow

Eco Insulation Home & Building

$30,000 New Zealand’s premium installer of eco-friendly insulation and clean heat products. 9 9

N P 0-9-477 0270 franchise.co.nz – search: Eco Insulation

Ecomist Home & Commercial

$30,000 A product sales-based business selling automatic insect control, odour control and fragrancing systems.

19 30

N P 0800 334 475 franchise.co.nz – search: Ecomist

EmbroidMeRob Kerridge


$75,000 World’s largest embroidery, screen printing and promotional products franchise. One stop shop for business needs. Highly visible retail stores, modern showrooms, latest embroidery technology. Operating since 2000. No experience required although management and sales abilities would be highly regarded. Financial assistance possible.

7 350

Y P 0-9-577 4223 M 022 479 1233 E [email protected] W embroidme.co.nz franchise.co.nz – search: EmbroidMe

Esquires Coffee HousesRachel Casley

44 Food & Beverage

$350,000 - $450,000

Award-winning international café brand offering 100% Fair Trade coffee in stylish comfortable surroundings. NZ’s fastest-growing café franchise. Twice winners of NZ’s Franchise System of the Year Award for the Food & Beverage category (2005 & 2006). Estimated turnkey price, depending on size and location.

42 100+

Y P 0-9-377 7615 E [email protected] W esquirescoffee.co.nz franchise.co.nz – search: Esquires

Exceed Home NetworkDavid Dovey

Home & Building

$25,000 - $50,000

Exceed Home Network provide home delivered services for home and property owners. A one-stop shop for a complete transformation of your home. We seek positive and enthusiastic people who are excellent communicators, computer savvy with practical DIY skills who want to build their own substantial business.

27 27

Y P 0800 25 27 36 M 0274 379 272 E [email protected] W exceed.co.nz franchise.co.nz – search: Exceed

Expense Reduction AnalystsDenis Stevens


$45,500 World leading cost management group represented in 32 countries. We help clients reduce overhead expenses. Contingency based - no savings -no fees - no risk. Seeking experienced business people who want to capitalise on their experience. Earn what you’re worth, not what someone else wants to pay you.

26 700+

N P 0-4-566 6615 M 0274 487 089 E [email protected] W expensereduction.com franchise.co.nz – search: Expense

Fastway CouriersCathie Bolam


$20,000 + Fastway Couriers is an award-winning franchise system that provides local and national courier services at competitive prices and a simple prepaid system. One of New Zealand’s most successful franchisors with 1,600+ franchisees across 5 countries and 40+ franchise and industry awards.

275 1600

Y P 0-6 833 6333 E [email protected] W fastway.co.nz franchise.co.nz – search: Fastway

Fifo Capital Financial Services

$49,500 + Invoice discounting and factoring services designed to assist clients’ cashflow needs. 8 16

Y P 0-9-447 1999 franchise.co.nz – search: Fifo

Fix It Building Services

Home & Building

$5,000 + New Zealand’s only nationwide trade-based building repair and renovation franchise. 11 11

Y P 0-9-566 0297 franchise.co.nz – search: Fix It

Flooring XtraDon Barry

Home & Building

$100,000+ New Zealand’s largest flooring retailer. Established as a co-operative and profitable for shareholder owners. Selling carpets, vinyl, tile and timber flooring. Limited number of territories available in Rodney, Auckland, Levin and Wellington.

54 92

N P 0-9-262 1628 E [email protected] W flooringxtra.co.nz franchise.co.nz – search: Flooring Xtra

Footloose Retail $160,000 New Zealand’s largest franchised ladies fashion footwear group. Ideal for motivated owner-operator.

22 22

N P 0-9-298 5228 franchise.co.nz – search: Footloose

Freedom Companion Driving ServicesRichard Bright

13 Home Services

$19,000 Freedom Companion Driving Services provide a highly personalised companion driving service for those who can’t drive themselves. Based on award-winning systems with great ongoing support. Seeking caring individuals wanting a great lifestyle business helping people in their community.

7 7

Y P 0800 956 956 E [email protected] W freedomdrivers.co.nz franchise.co.nz – search: Freedom Driving

Fritz’s Wieners Food & Beverage

$40,000 Fritz’s Wieners offer award-winning German bratwurst sausages with a variety of condiments. 6 6

N P 0800 437 489 franchise.co.nz – search: Fritz’s

FrontrunnerLaurie Blyth

22, 23

Retail $160,000 - $250,000

Well-established (1976) retailer of technical sports and athletic footwear, clothing and accessories, focusing on range, service and knowledge of product. Seeking adaptable, focused and reliable people who want to learn in-depth the systems and methods we use to become successful.

9 9

N P 0-3-348 4768 M 027 664 9557 E [email protected] W thefrontrunner.co.nz franchise.co.nz – search: Frontrunner

Furniture Court Retail $250,000 Specialist furniture retailer in lounge, dining, bedroom, occasional and accessories. 20 20

N P 0-9-277 5465 franchise.co.nz – search: Furniture

Geeks on Wheels Computer $25,000 Mobile computer technical support service, offering friendly and efficient on-site assistance. 4 4

N P 0-4-920 0990 franchise.co.nz – search: Geeks

GelatissimoDavid Newport

45 Food & Beverage

$550,000 turnkey

A leading international authentic gelato franchise system with a total of 48 franchises, 31 in Australia and 17 internationally. Family-run business launched in 2002. Offering close relationship/links with owners and Head Office. No food industry or retail experience necessary as full training provided.

New 48

N P 0-9-377 7735 M 021 304 414 E [email protected] W switchbusiness.co.nz franchise.co.nz – search: Gelatissimo

Gloria Jean’s Coffees Food & Beverage

$300,000 Gourmet speciality coffee franchise. Seeking people passionate about coffee. 25 925

N P 0-9-520 6477 franchise.co.nz – search: Gloria

Golden Nuts Food & Beverage

$70,000 - $100,000

“The best nut roasting retail kiosk in the world” state-of-the-art design kiosk. 6 6

Y P 0-9-622 0333 franchise.co.nz – search: Golden

Graffiti Doctor Business & Commercial

$20,000-$95,000

Clean up with Graffiti Doctor. Having a sales background will help. 9 9

N P 0800 482 437 franchise.co.nz – search: Graffiti

Green Acres Franchise GroupGraeme Bayly

Home Services

$24,000 Green Acres, the largest and most successful home services group in New Zealand started in 1991 and is still growing. Franchises available: home cleaning, commercial cleaning, lawn & garden care, car valet, pool valet or home maintenance services with Hire a Hubby, our sister company.

1000 1000

Y P 0800 692 643 E [email protected] W greenacres.co.nz franchise.co.nz – search: Green Acres

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GroutPro Home & Building

$39,950 Earn $2,000+ per week in one of the hottest sectors in the home improvement industry. 37 51

Y P 0-7-552 5311 franchise.co.nz – search: GroutPro

Guthrie Bowron Retail $250,000-$300,000

Decorating specialists focusing on paint, wallpaper, fabric and tiles. 56 56

Y P 0-9-306 1040 franchise.co.nz – search: Guthrie

Habitual Fix Food & Beverage

$150,000 New Zealand’s freshest food fix – salads, sandwiches, wraps and smoothies. 10 10

N M 021 428 970 franchise.co.nz – search: Habitual

Hardy’s Health Stores Health & Beauty

$300,000 New Zealand’s premium group of retail natural health stores. 31 31

Y P 0-7-838 3274 franchise.co.nz – search: Hardy’s

Harrisons Carpet One Home & Building

$50,000 New Zealand’s number one mobile carpet retailer. 2007 Franchise System of the Year. 43 1800

Y P 021 283 8040 franchise.co.nz – search: Carpet

Harvey World Travel Retail $100,000 High profile award-winning retail travel agency. Seeking people with a passion for travel. 54 350+

N P 0-9-307 1860 M 021 568 100 franchise.co.nz – search: Harvey

Healthy Homes Home & Building

$60,000 Installation of PinkBatts into new and existing residential properties. 19 19

Y P 0-9-414 2725 franchise.co.nz – search: Healthy Homes

Hell Ben Cumming

Food & Beverage

$200,000 A brand with attitude that cannot be missed. Our damned fine gourmet menu, coupled with sophisticated systems and support, make this a wicked opportunity. Hell is looking for new franchisees with a passion for our brand and a willingness to learn. Opportunities available nationwide.

64 70

N M 027 364 2431 E [email protected] W hellpizza.com/nz franchise.co.nz – search: Hell

Hire A HubbyGraeme Bayly

54 Home & Building

$32,000 New Zealand’s first choice for professional home maintenance, building and renovation services. Hire a Hubby has the distinct advantage of being the only franchise that offers a complete home maintenance and building service that’s professional and totally customer focused.

100 100

Y P 0-9-845 2640 E [email protected] W hireahubby.co.nz franchise.co.nz – search: Hubby

Home Instead Senior Care

Home Services

$155,000 Provides caregiving support to seniors and their families at home. No experience required. 8 900+

Y P 0800 694 472 franchise.co.nz – search: Home Instead

Humitech Business & Commercial

$90,825 Simple, effective panels to reduce commercial chilling costs and improve performance. 12 12

N P 0800 486 434 franchise.co.nz – search: Humitech

Insultech Group Home & Building

$80,000 - $125,000

Supply, install & advise on full range of insulation materials for new & existing properties. 5 5

N P 0-9-263 9770 franchise.co.nz – search: Insultech

Jamaica Blue Food & Beverage

$300,000 Contemporary café concept built on the foundations of fine coffees and fabulous food. 5 94

Y P 0-9-377 1901 franchise.co.nz – search: Jamaica

Jani-King Business & Commercial

$22,200+ World’s number one commercial cleaning franchise company. Full support for franchisees. 300 13K+

Y P 0-9-441 9996 franchise.co.nz – search: Jani

Jellybeans MusicChris Bartels

24 Leisure & Education

$25,000 Jellybeans Music provides curriculum based music programmes for schools. Successfully operating in Australia, this fantastic lifestyle franchise opportunity is now available in New Zealand. Franchises at special launch price now available for those with a passion for music and classroom teaching experience.

New30+

N P 0800 754 372 M 021 974 221 E [email protected] W jellybeansmusic.co.nz franchise.co.nz – search: Jellybeans

Jesters PiesGrant Rawlinson

Food & Beverage

$220,000 Award-winning gourmet pie franchise. An extensive range of quality pies and associated products freshly baked on premises daily. Iconic Kiwi business. Easy business model to operate. Loads of external revenue opportunities for franchisees who want to be business owners not shopkeepers.

18 50+

Y P 0-9-442 4680 M 021 274 4050 E [email protected] W jesters-pies.co.nz franchise.co.nz – search: Jesters

Jim’s Mowing Home Services

$15,000 Jim’s are the largest lawnmowing franchise in the world. Master franchises available all services. 282 2015

Y P 0-9-522 2265 franchise.co.nz – search: Jim’s Mowing

Jim’s Test & Tag Business & Commercial

$75,000+ vehicle

NZ’s number one choice for mobile electrical testing and tagging of in-service equipment. 20+ 120+

Y P 0800 454 654 franchise.co.nz – search: Jim’s Test

Jim’s Trees & Stump Removal

Home Services

$55,000+ Progressive and professional services – pruning, removal and climbing. Highest standards of training.

3 40

N P 0-6-843 2848 franchise.co.nz – search: Jim’s Trees

Jumping Beans International

Leisure & Education

$40,000 - $45,000

Leading edge, fun physical skills programme for children 0 to 6. 6 7

N P 0-9-475 9204 franchise.co.nz – search: Jumping

Just CabinsFenton Peterken

59 Home & Building

$250,000 Just Cabins provides portable cabins for rent which are just perfect as sleep-outs, extra room, portable office or storage at your home or business. Long-term cabin rentals provide a passive income, excellent growth and are easily run by one person part-time.

36 36

Y P 0800 587 822 M 021 716 776 E [email protected] W justcabins.co.nz franchise.co.nz – search: Cabins

Just Cuts Health & Beauty

$100,000 - $200,000

Just Cuts franchise. You don’t need to be a hairdresser to join. 24 174

N M 027 277 7071 franchise.co.nz – search: Justcuts

Just Loans Financial Services

$100,000+ Just Loans is a finance company providing personal loans. Turnkey money-lending system. 5 5

N P 0800 333 455 franchise.co.nz – search: Just-loans

Kea Kids Club Leisure & Education

$38,500 Before and after school care for kids between 5 – 13 years old. 12 12

N P 0-9-535 2187 franchise.co.nz – search: Kea Kids

Kelly SportsPaul Jamieson


$25,000 Giving kids a sporting chance. In-school curriculum, after school academy programmes, school sports days. Education outside of the classroom. Before and after-school care holiday programmes. We are looking for people who have a passion for kids and sport.

24 25

N P 0-9-427 9377 M 021 409 241 E [email protected] W kellysports.co.nz franchise.co.nz – search: kelly

Kinetic Electrical Home & Building

P.O.A. Electricians, electrical contractors – become more successful as part of the Kinetic team. 9 9

Y M 0274 852 010 franchise.co.nz – search: Kinetic

Kitchen StudioAndrew Crossland

8 Home & Building

$100,000+ Kitchen Studio is New Zealand’s only national full-service kitchen provider, offering customers a complete kitchen solution from stunning designs, right through to installation and after-sales service. To be successful with Kitchen Studio you must have sound commercial acumen and strong retail sales abilities.

17 17

N P 0-3-964 4580 E [email protected] W kitchenstudio.co.nz franchise.co.nz – search: Kitchen Studio

KiwiHost Business & Commercial

$50,000 Turn your B2B sales skills into profit with an iconic brand. 18 18

Y P 0-3-343 5007 franchise.co.nz – search: KiwiHost

Kiwikrane Leisure $50,000 + Kiwikrane is a national franchise. Franchisees own and operate amusement machine routes. 51 51

Y P 0-9-846 2800 franchise.co.nz – search: Kiwikrane

KiwiYoNorman Markgraaff

48 Food & Beverage

$150,000 - $600,000

Self-serve frozen yoghurt business. Fastest-growing international hospitality sector. Perfected, tried and tested in New Zealand for local and/or international franchise opportunity. Join a dynamic fun-filled business team. Full training given, ideal for LTBV applicants. Perfect family business. English essential.

3 5

N M 021 339 396 E [email protected] W kiwiyo.co.nz franchise.co.nz – search: kiwiyo

Kwik Kerb Home & Building

P.O.A. Market leaders in domestic and commercial continuous concrete kerbing. 42 800

N P 0800 865 945 franchise.co.nz – search: Kwik Kerb

Landmark HomesPaul Clarke

19 Home & Building

$50,000 A growing building franchise with a well-established brand offering stylish designs, high-quality homes, excellent systems – providing homeowners with a first-class experience. Seeking committed individuals or couples with knowledge of the building industry who want to build a business into a valuable asset.

10 10

Y P 0-7-578 2295 M 0274 751 311 E [email protected] W landmarkhomes.co.nz franchise.co.nz – search: Landmark


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7 Reasons To Call Us First

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Laser ElectricalScott Carr

Home & Building

$30,000+ Multi award winning Laser Group assists electrical contracting companies become more successful. Become part of NZ’s largest and fastest growing electrical contracting network. Unique model suits existing successful electrical contracting business owners. Westpac Supreme Award (2005 & 2006) for Franchise System of the Year.

60 122

Y P 0-9-820 3800 E [email protected] W laserelectrical.co.nz franchise.co.nz – search: Laser

Laser PlumbingScott Carr

Home & Building

$30,000+ Multi award winning Laser Group assists plumbing contracting companies become more successful. Become part of NZ’s largest and fastest growing plumbing contracting network. Unique model suits existing successful plumbing, gasfitting, roofing and drainlaying business owners. Westpac Supreme Award (2005 & 2006) for Franchise System of the Year.

27 42

Y P 0-9-820 3800 E [email protected] W laserplumbing.co.nz franchise.co.nz – search: Laser

LawnFix Home Services

$85,000 Lawn care – everything except mowing them. We are the qualified pros. 2 2

Y P 0-7-548 0008 franchise.co.nz – search: LawnFix

Leadership Management


$75,000 LMA licensees deliver a process that provides skill and competency development. 6 44+

N P 0800 333 270 franchise.co.nz – search: LMA

Lifetime Distributors Business & Commercial

$20,000 Display marketing company that delivers the convenience of shopping in the workplace. 23 150+

N P 0-9-574 6695 franchise.co.nz – search: Lifetime

Lime Juice BarLes Seiler

Food & Beverage

$25,000 NZ’s largest mobile juice and smoothie bar. Easy to operate business in the growing healthy food sector. Turnkey operation with full franchisor training and support. Great lifestyle business, you choose when you work. Suits fun loving people who are good communicators and enjoy healthy eating.

1 1

Y M 027 222 7487 E [email protected] W limejuicebar.co.nz franchise.co.nz – search: lime

LINKKevin Atkinson


$50,000 LINK are franchised specialists in business sales, franchise re-sales and recruitment and sales of franchise opportunities. We provide professional, practical franchise advice to our clients. Seeking new LINK franchisees to join those in New Zealand, Australia and South Africa. Some business sales franchise opportunities available.

6 9

Y P 0800 546 528 E [email protected] W linkbusiness.co.nz franchise.co.nz – search: Link

Liquorland Retail $250,000+ Specialist retailer of liquor and associated products. A member of FlyBuys nationally. 75 75

N P 0-9-621 0875 franchise.co.nz – search: Liquorland

Little Dribblers Leisure & Education

$44,000 An easily run part- or full-time business. Kids football for ages 1 – 7 years. 4 4

N P 0-4-586 6006 franchise.co.nz – search: Dribblers

Little Kickers Leisure & Education

$26,000+ Fun football (soccer) training for children aged 18 months – 7 years. 2 100+

N P 0-9-815 8607 franchise.co.nz – search: Kickers

LJS Seafood Restaurants

Food & Beverage

$190,000 - $230,000

The largest NZ fast-food chain of fish and chips and associated seafood stores. 13 13

N P 0-9-530 8090 franchise.co.nz – search: LJS Seafood

Lollipop’s Playland & Café

Leisure $400,000 - $450,000

New Zealand’s most progressive childrens’ indoor playland. Offering unlimited parent supervised play.

6 23

Y P 0-3 322 4549 franchise.co.nz – search: Lollipop’s

Lollypotz Food & Beverage

$40,000 Lollypotz make and deliver chocolates beautifully presented like a bouquet of flowers. 3 43

N P 0061 2 6280 9159 franchise.co.nz – search: Lollypotz

Lone StarShane Hausler

Food & Beverage

$600,000+ Lone Star is New Zealand’s largest restaurant & bar concept, proudly owned and operated since 1988. Delicious food, legendary service and music. Seeking candidates with a passion for hospitality, people and fun, proven financial ability, committed to being an owner/operator with a strong work ethic.

25 25

N P 0-3-374 3208 M 021 278 1213 E [email protected] W lonestar.co.nz franchise.co.nz – search: Lone Star

Lush Lashes Health & Beauty

$12,000 Semi-permanent eyelash extensions. 11 13

N P 0800 Lush Lashes franchise.co.nz – search: Lush

MathZwise Leisure & Education

$25,000+ Quality maths tutoring programme following NZ maths curriculum. Suits people with teaching background.

8 8

Y P 0800 120 965 franchise.co.nz – search: MathZwise

McDonald’s Food & Beverage

$750,000+ The world’s market leader in the quick service restaurant industry. 150 31000

N P 0-9-539 4300 franchise.co.nz – search: McDonald’s

Mediterranean Food Warehouse

Food & Beverage

$250,000- $380,000

Specialist Mediterranean food store and wood-fired pizzeria and café. 3 3

Y P 0-4-939 8100 franchise.co.nz – search: Mediterranean

MEGA CaféNathan Bonney

Food & Beverage

$75,000 - $200,000

MEGA Café combines Mitre 10 MEGA’s powerful brand and Columbus Coffee’s award-winning coffee and franchise systems to create a compelling new business opportunity. Unique entry to ownership models makes owning your own café a reality. We are looking for passionate owner-operators. Full training provided.

18 18

Y P 0-9-520 1044 M 021 347 145 E [email protected] W megacafe.co.nz franchise.co.nz – search: Mega Cafe

Meticulous Home Services

Home Services

$13,000 New Zealand’s premier home services franchise offering a range of professional services. 35 35

Y P 0-9-449 2004 franchise.co.nz – search: Meticulous

Mexicali FreshCindy Buell

11 Food & Beverage

$300,000+ Mexicali Fresh has led the Mexican evolution in NZ since 2005. With giant American-style burritos and Mexican beer in a colourful, casual atmosphere. We are recruiting energetic, enthusiastic franchisees with a passion for great food and excellent customer service for our turnkey restaurants.

3 3

N M 021 750 070 E [email protected] W mexicalifresh.co.nz franchise.co.nz – search: Mexicali

Midas Car CareHenry Epskamp

Auto Services

P.O.A. New Zealand’s premier specialist automotive servicing franchise. One of the worlds largest provider of automotive service since 1956. Existing and new franchise opportunities available. Must have exceptional customer service skills.

27 3000

Y P 0-9-415 0234 M 021 955 498 E [email protected] W midasnz.co.nz franchise.co.nz – search: Midas

Why learn from your mistakes when you can learn from our nationwide franchise banking specialists?



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Mike Pero Mortgages Financial Services

$30,000 - $50,000

Mortgage broker service representing major lending organisations. 42 42

Y P 0-3-365 9487 franchise.co.nz – search: Mike Pero

Mini Tankers Business & Commercial

$75,000 - $150,000

On-site diesel refuelling service. 19 124

Y P 0-9-622 2671 franchise.co.nz – search: Mini

Mobile Hand Car & Marine Grooming

Auto Services

$10,000 -$39,000

Mobile grooming and detailing service providing professional, environmentally friendly valet services.

17 17

N P 0800 803 737 franchise.co.nz – search: Mobile Hand

Mr Fencer Home & Building

$46,000+ Mr Fencer supplies and installs a wide range of residential and commercial fencing. 3 3

Y P 0800 673 362 franchise.co.nz – search: Mr Fencer

Mr Plumber Home & Building

$35,000 Franchise system designed to deliver quality plumbing, roofing, drainlaying and gasfitting services. 10 10

N P 0800 677 586 franchise.co.nz – search: Mr Plumber

Mr Rental Home & Building

$250,000+ Home appliance renting. Phone to learn about the magic of recurring revenue. 18 57

Y P 0276 328 470 franchise.co.nz – search: Mr Rental

Mr Whippy Food & Beverage

$120,000 One of New Zealand’s oldest and established franchises is seeking new franchisees. 50 50

N P 021 333 333 franchise.co.nz – search: Mr Whippy

Muffin Break Food & Beverage

$280,000 A speciality bakery café concept with a proven and established system. 36 259

Y P 0-9-377 1901 franchise.co.nz – search: Muffin

Need A Nerd Computer $25,000 Specialist mobile techie support service that sells, supports and provides advice. 1 1

Y P 0800 633 326 franchise.co.nz – search: Nerd

New York Deli Food & Beverage

$150,000 - $202,000

New York Deli is a themed sandwich bar that uses wholesome ingredients. 1 1

N M 021 707 758 franchise.co.nz – search: New York

New Zealand Home Loans

Financial Services

$10,000 - $100,000

Seeking confident self-starters with sales expertise and excellent communications skills. 52 52

N P 0-7-839 0998 franchise.co.nz – search: Home Loans

New Zealand Letting AgentsVanessa Neale


$23,000 Property management services with full training and support for your business success. Well-established company providing on-going revenue in a thriving industry. Attributes required; excellent time management, passionate about property and business growth, experience in sales or business, good judgement and ability to think on your feet.

3 3

N P 0800 103 203 M 0274 800 129 E [email protected] W nzletting.co.nz franchise.co.nz – search: Letting

New Zealand Natural Ice Cream

Food & Beverage

$250,000 International ice cream parlour brand operating in 20 countries. 13 500+

Y P 0-9-274 6168 franchise.co.nz – search: New Zealand Natural

Night ’n Day Foodstores

Retail $300,000+ Night ‘n Day are the NZ grocery store market leaders. Seeking energetic operators. 45 45

Y P 0-3-471 7660 franchise.co.nz – search: Night’n

NumberWorks’n Words

Education $50,000 Specialist maths and English tuition company, fun learning experience, instruction from specialist tutors.

23 54

Y P 0-9-522 0800 franchise.co.nz – search: Number

NZ Floor Sanding Co Home & Building

$95,000 inc. vehicle

Specialists in sanding and coating of timber floors. Supply and lay new timber floors. 7 7

N P 0800 272 888 franchise.co.nz – search: NZ Floor

Office Products Depot Business & Commercial

P.O.A. NZ’s leading independent business-to-business supplier of stationery supplies since 1989. 39 74

N P 0-9-915 4544 franchise.co.nz – search: Office Products

Oil Changers Auto Services

$150,000 - $250,000

Oil Changers provide the convenience of drive-through vehicle servicing. No previous experience required.

8 29

N P 0-3-343 6080 franchise.co.nz – search: Oil

Oporto New ZealandRakesh Verma

27 Food & Beverage

$350,000 Oporto chicken and burgers are big on taste and even bigger on value. With 20 years in Australia and 11 years in New Zealand we have a proven franchise model. Seeking committed, energetic, entrepreneurs wanting to establish a long-term business with a strong brand.

11 160

Y P 0-9-538 0833 M 0272 727 605 E [email protected] W oporto.co.nz franchise.co.nz – search: Oporto

Pack & Send New ZealandMatthew Everest

63 Retail $210,000 Pack & Send move and handle freight through a network of retail stores with a professional custom packaging service. A one-stop shop for customers. We are looking to grant franchises to those who are prepared to embrace our ‘no limits’ culture.

13 120

Y P 0-3-982 7252 M 021 799 783 E [email protected] W packsend.co.nz franchise.co.nz – search: Pack Send

Palazzo Kitchens & ApplicancesRon Neale

14, 15

Home & Building

$200,000 Palazzo are the largest retailer of German kitchens in New Zealand. Exclusive agents for Nobilia and Rational, Germany’s largest manufacturers. Seeking entrepreneurial people with good business and retail acumen, willing to provide exceptional service with quality showrooms to discerning professional clientele.

5 5

N P 0-3-365 0751 M 021 978 348 E [email protected] W palazzodesign.co.nz franchise.co.nz - Palazzo

PalmersMurray Belcher

56 Retail $350,000 New Zealand’s largest garden centre chain established in 1958. Offering both metropolitan and provincial opportunities. Serious business opportunity for motivated and capable business person/s. Growth market.

18 18

N P 0-9-451 9102 M 021 483 500 E [email protected] W palmers.co.nz franchise.co.nz – search: Palmers

Palmers PlanetMurray Belcher

56 Retail $1m Like the truly successful garden centres of Europe, Palmers Planet is as much a destination as a retail store. This is an amazing opportunity for a business person looking for a new challenge.

1 1

N P 0-9-451 9102 M 021 483 500 E [email protected] W palmers.co.nz franchise.co.nz – search: Palmers

Paper Plus Retail $400,000 The Paper Plus Group is New Zealand’s largest franchised book and stationery retailer. 110 110

Y P 0-9-261 0873 franchise.co.nz – search: Paper

Para RubberVaughan Moss

30 Retail $150,000 –$250,000

Iconic New Zealand retailer dominating the market in sales of foam, foam mattresses, rubber, including mats, and the iconic Para pools. Looking for energetic people serious about customer service and looking to build a successful business through determination.

9 9

Y P 0-9-532 8794 M 021 921 976 E [email protected] W pararubber.co.nz franchise.co.nz – search: Para

Paramount ServicesPaul Brown Bill Wu


$30,000 General commercial cleaning plus specialised franchises: car park scrubbing, carpet cleaning, decontamination, office equipment sanitising, pest control, window cleaning. Established in 1979, Paramount Services has 140 franchisees servicing 1,240 clients including 320 bank branches, retailers, shopping centres, ports, cinemas, rest-homes, student hostels and schools.

140+ 140+

Y P 0-9-376 7850 M 027 543 0233 E [email protected] W service-is-paramount.co.nz franchise.co.nz – search: Paramount

Pegasus Rental Cars Leisure Transport

P.O.A. Pegasus Rental Cars offers the best value for money car hire in New Zealand. 24 24

N P 0-9-378 7940 franchise.co.nz – search: Pegasus

Pit StopLes Seiler

Auto Services

$100,000+ New Zealand’s leading automotive repair franchise. Specialising in vehicle servicing, brakes, exhaust, suspension and tyres. Well-recognised brand, established over 30 years ago. Full franchisor training and support. We’re looking for owner-operators with automotive repair experience (essential), great communicators with a fantastic customer service ethic.

49 49

Y P 0-9-634 3666 M 027 222 7487 E [email protected] W pitstop.co.nz franchise.co.nz – search: Pit Stop

Pizza HutAlan Brooks

Food & Beverage

$100,000 Be part of the Pizza Hut success story. Pizza Hut is franchising its regional stores to owner-operators. These are all existing outlets. Looking for entrepreneurial people to become owner-operators and maximise their returns whilst being supported by Restaurant Brands NZ.

91 N P 0-9-525 8700 M 021 276 9769 E [email protected] franchise.co.nz – search: Pizza Hut

Plumb’InWalter Goldstein

68 Retail $215,000 - $260,000

Plumb’In is the largest bathroom specialist bulk retail franchise in New Zealand, with recognised branded products, supplying high quality product at an affordable price. Seeking people with the following attributes; dedicated, retail-focused, self-driven, management and sales skills, team player, prepared to accept responsibility, sound financial record.

6 6

Y P 0-9-448 0280 M 0275 999 444 E [email protected] W plumbin.co.nz franchise.co.nz – search: Plumb

PoolWerx Corporation Home Services

$93,950 Mobile pool and spa care. A recognised innovator, making franchisees’ tills ring faster. 1 300

Y P 0800 888 031 franchise.co.nz – search: PoolWerx


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Maybe!If 'maybe' isn't the answer you’re looking for, then contact Franchise Accountants.0800 555 8020 www.franchiseaccountants.co.nz

Can I franchise my

business?

Work with the company selected by many of the biggest (and best emerging) names in franchising. Call Win Robinson or Callum Floydon (09) 523 3858www.franchize.co.nz

Successful franchisors choose Franchize Consultants

We’ve also been awarded ‘Westpac Service Provider of the year’ in 06, 08, 10/11.

For Franchise Advice

in the Wellington region

Have a chat with our legal experts:

Claire Byrne 04 916 7483 Dave Robinson 04 916 6307

www.gibsonsheat.com

PostShop KiwibankKayleen Smith

Retail P.O.A. One of NZ’s largest retail networks. We offer our communities a wide range of postal and financial services for personal and business needs.

300+ Y P 0-9-336 8284 E [email protected] W nzpost.co.nz franchise.co.nz – search: Postshop

Property InDepth Home & Building

$45,000 Residential valuation franchise, customised technology, fantastic business systems, awesome team, nationwide aspirations.

10 10

N M 021 477 673 franchise.co.nz – search: Property

Provender NZPhilip Horrocks

Food & Beverage

$65,000 Affordable upfront fees, great return on investment, easy to run and grow, no staff management, flexible work hours. Own your own mobile vending franchise business. Suit anyone looking to run their own business or change their lifestyle. Industry qualifications not required to join the Provender team.

90+ 140+

N P 0800 661 663 E [email protected] W provender.co.nz franchise.co.nz – search: Provender

Quest Serviced Apartments


$150,000-$600,000

Serviced apartment accommodation facilities. Operating in New Zealand since 1997. 28 80

Y P 0-9-366 9680 franchise.co.nz – search: Quest

Quinovic Property Management


$140,000 + NZ’s preferred national residential property management service since 1988. 28 28

Y P 0-4-801 7880 franchise.co.nz – search: Quinovic

Rainaway Spouting on the Spot

Home & Building

$45,000 Proven award-winning continuous spouting company selling to commercial and residential clients. 12 12

Y P 0-9-265 2147 franchise.co.nz – search: Rainaway

Raincatcher Systems Home & Building

$20,000 –$60,000

Triple filter system. Sales, installation & servicing. Suitable as add-on or stand-alone business. 3 3

N P 0800 724 622 franchise.co.nz – search: Raincatcher

Rapid Lawn Home & Building

$40,000 Hydro-seeding and erosion control franchise servicing domestic and commercial sectors. 10 10

N M 021 365 296 franchise.co.nz – search: Rapid

Realsure The House InspectorsBruce Symon

Home & Building

$65,000 Respected, strongly branded business providing trusted property reports for buyers and sellers. Proven systems, training and very clever technology makes it simply smart business. Suit motivated individual wanting remarkable business opportunity and lifestyle. Relevant technical qualification required for New Zealand inspection standard compliance.

3 3

N P 0508 732 578 M 0275 455 045 E [email protected] W realsure.co.nz franchise.co.nz – search: Realsure

realtyRETURNS The Property Improvers

Home & Building

$55,000+ Renovation agency specialising in arranging and managing residential renovation projects. 3 3

N P 0800 780 790 M 021 919 844 franchise.co.nz – search: realtyReturns

Refresh RenovationsJon Bridge

46, 47

Home & Building

$65,000 New Zealand’s leading renovation business. Limited franchise opportunities available throughout New Zealand. Seeking business-minded individuals who want to grow themselves a large profitable business. No building experience necessary.

21 21

Y M 021 454 502 E [email protected] W refreshrenovations.co.nz franchise.co.nz – search: Refresh

Re/Max New Zealand Other $20,000 Global real estate network. 50 6500

N P 0-9-309 8478 franchise.co.nz – search: Remax

Rent a DentDean Hansen

18 Rental Vehicles

$100,000 Rent a Dent are one of the largest rental vehicle networks in New Zealand. We strive to achieve great customer service, network efficiency and maximum value for customers. Good business acumen necessary but experience not required. Current opportunities in Christchurch, Whanganui, and Australia.

24 25

N P 0-9-275 2914 M 021 474 724 E [email protected] W rentadent.co.nz franchise.co.nz – search: Rent Dent

Robert Harris Coffee Roasters Rod De Lisle

41 Food & Beverage

$150,000min equity

Robert Harris Coffee Roasters is New Zealand’s best-known and largest chain of retail café franchises. Proven success in cities and provincial centres nationwide. We look for team players with high standards in presentation who have customer service experience plus the ability to work with people.

45 45

Y P 0800 426 333 M 021 518 435 E [email protected] W robertharriscafe.co.nz franchise.co.nz – search: Robert Harris

Rodney WayneJulie Evans

60 Health & Beauty

$200,000 NZ’s biggest and most successful hairdressing franchise group. Hairdressing experience not necessary.

50+ 50+

Y P 0-9-358 4644 E [email protected] W rodneywayne.co.nz franchise.co.nz – search: Rodney Wayne

Saddlery Warehouse Retail $230,000- $460,000

New Zealand’s leading equestrian retailer. Supplying all the items needed for horse and rider. 7 7

Y P 0-9-970 1058 franchise.co.nz – search: Saddlery

Select Cleaning Home Services

$13,300 Home cleaning services franchise offering cleaning and lawn mowing businesses. Award winning system.

70+ 70+

Y P 0-9-278 4930 franchise.co.nz – search: Select

Shed Boss Home & Building

$95,000 + ShedBoss are suppliers of high quality steel frame buildings. 12 37

N P 0-7-579 1525 franchise.co.nz – search: ShedBoss

Shoe Clinic Retail $200,000-$250,000

Shoe Clinic is NZ’s leading sports footwear retail store. Proven system. 12 12

N P 0-4-499 4495 franchise.co.nz – search: Shoe Clinic

Sierra CoffeeAlan Piper

56 Food & Beverage

$120,000- $280,000

Network of premium cafes specialising in gourmet coffee and freshly prepared food. 32 32

N P 0-9-444 4369 M 021 881 119 E [email protected] W sierracoffee.co.nz franchise.co.nz – search: Sierra

Signature Homes Home & Building

$75,000 + New Zealand’s leading branded custom home builders, established 1983. 19 19

Y P 0-9-415 2468 franchise.co.nz – search: Signature

Simplicity Vending Food & Beverage

$20,000 - $150,000

Small mechanical bulk vending units with a proven tried and trusted licensed system. 12 12

N P 0-7-855 2007 franchise.co.nz – search: Simplicity

SimpliFoodJane Moore

Retail $30,000 Strongly-branded retail food store franchise selling back-to-basics quality ingredients. Owner-operator format, ideal for couples, full training and support given. 3 store concepts including classic, express or mini. We work with your budget, timescale and skill base. Call us to chat.

6 6

N P 0-7 575 6454 M 0274 735 708 E [email protected] W simplifood.co.nz franchise.co.nz – search: SimpliFood

Simply Squeezed Food & Beverage

$80,000 Sell and distribute NZ’s favourite range of chilled juice and beverage products. 40+ 40+

Y M 021 747 643 franchise.co.nz – search: Squeezed

sKidsDawn Engelbrecht


$34,000 Out of school care. Established 1996. Now in 100+ schools. Before school, after school and holiday programmes for primary school children. Would suit people who are looking for a change in lifestyle and enjoy the company of children.

100 100+

Y P 0-9-576 6602 M 027 291 9904 E [email protected] W skids.co.nz franchise.co.nz – search: sKids


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Small Business AccountingAdam Parore


$48,000 A monthly accounting service specifically designed to provide regular support for the self-employed and small business operators. Retail locations accelerate client base growth. Accounting qualifications not necessarily an advantage. Would suit someone with business experience and / or with sound bookkeeping knowledge, and good communication skills.

44 44

Y P 0-9-578 3925 P 0800 114 SBA E [email protected] W sba.co.nz franchise.co.nz – search: SBA

Smith’s Sports Shoes Retail $150,000 - $400,000

National sporting footwear retailer, specialising in top brand performance footwear. 12 12

Y P 0-7-376 8202 franchise.co.nz – search: Smith’s

Snap-on ToolsNicholas Hudson

28 Auto Services

$52,000 + Snap-on franchisees sell the world’s best tools via mobile stores to professional tool users. 14 5000

Y P 0800 SNAP ON E [email protected] W snapontools.com.au franchise.co.nz – search: Snap-on

Snap Printing Business & Commercial

$220,000 + Australasia’s leading and most successful ‘on demand’ printing and copying franchise. 5 180

Y P 0-9-379 0822 franchise.co.nz – search: Snap Print

Spagalimis Italian Pizzeria

Food & Beverage

$250,000 Pizza, pasta, salad and dessert in a contemporary dining environment. Comprehensive training. 5 5

N P 0800 113 113 franchise.co.nz – search: Spagalimis

Speedy SignsRob Kerridge


$100,000 New Zealand’s and the world’s largest signs and graphics franchise. Our full service sign centres use the latest computerised technology to produce high quality custom signage. Operating since 1986. Now in 40 countries. Established locations may be available. No previous experience required. Financial assistance possible.

23 850

Y P 0-9-577 4223 M 022 479 1233 E [email protected] W speedysigns.co.nz franchise.co.nz – search: Speedy

SpidermanStephen Hurley

Home Services

P.O.A. Pest control offering good opportunities to trade within the Spiderman network. Experienced persons are invited to contact us, references essential. Operating for 3 decades. Trademarked NZ, Australia, UK - master franchisees considered. Domestic services class 37 only.

4 4

N P 0-3-455 3793 E [email protected] franchise.co.nz – search: Spiderman

Step into LifeJenny Hannah

Health & Fitness

$39,995 Step into Life are the undisputed leaders in group outdoor personal training. With 160+ franchisees across Australasia, and more than 16 years of history, our proven systems will ensure your success. We recruit bubbly, vivacious, energetic and passionate personal trainers. Full training is provided.

2 161

N P 0-9-279 0992 M 021 851 637 E [email protected] W stepintolife.co.nz franchise.co.nz – search: Step into Life

Stihl Shop Retail $100,000+ Looking for individuals with good business acumen and great customer service. 61 61

N P 0-9-262 4000 franchise.co.nz – search: Stihl

Stirling Sports Retail $340,000 Established in 1964, Stirling Sports is New Zealand’s most trusted name in sports retail. 43 43

Y M 021 748 144 franchise.co.nz – search: Stirling

Storage BoxKeith Robieson

Retail $100,000 The preferred storage specialists in New Zealand, providing storage solutions to customers, Storage Box is the leading retailer of organisational products. Seeking potential licensees who are strongly motivated to succeed and have a passion for retail.

20 20

N P 0-9-271 1025 M 021 271 1025 E [email protected] W storagebox.co.nz franchise.co.nz – search: Storage

Streetwise CoffeeGraeme Harris

37 Food & Beverage

$110,000 Our reputation for exceptional espresso coffee means we now serve thousands of coffee-loving customers every day from our permanently-positioned designer coffee outlets. Ambitious? Good business and customer service skills? Love the thought of selling fantastic coffee to appreciative coffee lovers? Contact us.

16 16

Y P 0-6-364 5733 M 021 433 525 E [email protected] W streetwisecoffee.co.nz franchise.co.nz – search: Streetwise

Stretch-n-Grow Health & Fitness

$30,000 The Stretch-n-Grow programme promotes exercise and wellness for pre-schoolers. 1 250+

N P 0-9-447 1827 franchise.co.nz – search: Stretch

Subway Food & Beverage

$200,000 The world’s largest quick service submarine sandwich and salad franchise. 212 32K+

N P: 0-9-415 3091 franchise.co.nz – search: Subway

SumoSalad Food & Beverage

$450,000 The healthy fast food alternative. Join Australia’s fastest growing franchise. 2 80+

N P: 0061 2 9569 7866 franchise.co.nz – search: SumoSalad

Super Liquor Food & Beverage

$300,000 New Zealand’s largest retail liquor group offering convenience, value and exceptional service. 102 102

Y P 0-9-523 4064 franchise.co.nz – search: Super Liquor

Super Shuttle Business & Commercial

$90,000 New Zealand’s No. 1 nationwide airport passenger transport system. Owner-driver franchises. 120 120

N P 0-9-522 5710 franchise.co.nz – search: Super Shuttle

Swimart Pool & Spa Services

Retail $175,000 Retail store franchise providing all the needs for pool & spa owners. 4 63

Y P 0800 928 373 franchise.co.nz – search: Swimart

TACA NZ Business & Commercial

$65,000 Tungsten coating specialists. Supplier of hard facing services to a range of industries. 5 13

N P 0061 3 8727 5000 franchise.co.nz – search: TACA

Tacklebox Retail $90,000 Tacklebox provides a shop in a box. Good business acumen needed. 2 2

N M 021 231 2914 franchise.co.nz – search: tackle-box

Take Note Retail $300,000 Over 60 stores throughout New Zealand, all of which are locally owned and operated. 60+ 60+

N P 0-9-261 0873 franchise.co.nz – search: Take Note

Telcoinabox NZShannon Fisher

40 Computer & Telecomm’s

$65,000 Become your own phone company and just add customers. Everything else you need is in the box. Monthly recurring revenue, sell your own brand, control your own destiny. Are you future focussed? Passionate about success? Looking for the right opportunity? No telecommunications experience required.

23 121

N P 0800 7 TELCO E [email protected] W telcoinabox.co.nz franchise.co.nz – search: Telcoinabox

Temporary Protective Solutions

Home & Building

$25,000 Provides temporary protection to surfaces in construction and related industries. 4 4

N P 0-9-528 5274 franchise.co.nz – search: Temporary Protective

The 2n’5 FranchiseRebekah Savage

Retail $70,000 The 2n’5 Franchise is a proven retail concept that has successfully run since 1994. We are looking for franchisees who will enjoy both a challenge and working with people on a daily basis.

17 17

N P 0-6-757 2702 E [email protected] W 2dollarshop.co.nz franchise.co.nz – search: 2n’5

The Alternative BoardStephen James


$100,000 The Alternative Board, a leading international franchise organisation, seeks franchisees to facilitate peer board meetings and offer executive coaching to local business owners. With a background as an executive or business owner, you will help businesses achieve more profitability, productivity and personal fulfilment.

3 150+

Y P 0-9-446 0963 M 021 606 934 E [email protected] W thealternativeboard.co.nz franchise.co.nz – search: Alternative Board

The Athlete’s Foot Retail $250,000 World’s leading sports footwear retailer. Exclusive fitprint technology and proven training. 9 600+

N P 0-9-426 0000 franchise.co.nz – search: Athlete’s

The Cheesecake Shop Food & Beverage

$310,000 A thoroughly tested bakery format. Full training and ongoing support. 16 200

N P 0800 428 328 franchise.co.nz – search: Cheesecake

The Coffee ClubBrad Jacobs

64 Food & Beverage

$300,000- $450,000

One of NZ’s fastest growing café and restaurant franchises, with a comprehensive menu and relaxed dining experience. Proven track record with further expansion planned. Take advantage of a proven track record, great training and ongoing support. Ideal if you are passionate about people and building customer loyalty.

45 325+

Y P 0-9-304 0008 M 027 526 3333 E [email protected] W thecoffeeclub.co.nz franchise.co.nz – search: Coffee Club

The Coffee Guy Megan Piper

42 Food & Beverage

$89,950 New Zealand’s number one mobile coffee company. The Coffee Guy franchise opportunity is simple, fun and flexible.With full training and support, a stand-out brand, and minimum sales guaranteed, you can’t go wrong. We have franchises available throughout the country.

56 56

N P 0-9-377 7615 E [email protected] W thecoffeeguy.co.nz franchise.co.nz – search: Coffee Guy


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Find the right franchise by starting with the right people.



Chartered Accountants specialising in franchising

[email protected] 0-9-309 2561 Fax: 0-9-309 7798

Mobile: 021 309 309

Due diligence reportsBudget and cashflow projectionsFinancial accounting and reporting systems

As members of the Franchise Association of New Zealand we assist franchisors and franchisees with:

Benchmarking reportsLiaison with other advisors (banks, lawyers, consultants)Tax adviceBest structure for the business (company/trust etc.)

The Fishmonger Seafood Delicatessen

Food & Beverage

$125,000 The Fishmonger Seafood Delicatessen is a new concept in seafood takeaways. 3 3

N M 021 588 880 franchise.co.nz – search: Fishmonger

The Pita Pit Food & Beverage

$225,000-$380,000

If you thought you missed the sub-sandwich boat, the international challenger is now here. 7 300+

N P: 0-9-486 4664 franchise.co.nz – search: Pita Pit

The Sweetest Little Chocolate Shop

Retail $230,000- $290,000

The leading retailer of quality NZ-made chocolate and confectionery. 2 2

Y P 0-9-521 6062 franchise.co.nz – search: Sweetest

Theobroma Cafés, Lounges and BarsWayne Wright

Food & Beverage

$200,000 –$600,000

Theobroma is a total food and beverage concept, operating in more than 5 countries, serving breakfast, lunch and dinner. You can’t walk past a Theobroma. Proven business formula. Full training provided so that you can be your own boss without being on your own.

7 30

N P 0061 3 9480 1030 M 0061 431 727 004 E [email protected] W theobroma.co.nz franchise.co.nz – search: Theobroma

Thexton ArmstrongDavid Thexton


$59,000 This is a long-term extremely profitable opportunity where you are fully trained and supported to grow your own successful consulting business. Seeking business-consulting franchisees. Would suit CEOs, CFOs, professionals, directors, ex-corporates ex-business owners and others wanting more lucrative, fulfilling and less stressful career alternatives.

5 31

N M 027 509 3385 E [email protected] W thextonarmstrong.com.au franchise.co.nz – search: Thexton

Toni&Guy Health & Beauty

$200,000 A Toni&Guy franchise offers a unique opportunity to join hairdressing’s only worldwide super brand. Toni&Guy are looking for people with a passion for excellence and desire to be at the forefront of NZ hairdressing.

1 425

Y P 0-9-847 9219 E [email protected] W toniandguy.co.nz franchise.co.nz – search: Toni

Touch Up GuysMartin Smith

Auto Services

$88,000 New Zealand’s premier mobile paint and bumper repair franchise. High quality car paint restoration services to commercial and private customers. Professional, reliable, cost effective and convenient. No industry experience required. Comprehensive training and full ongoing support provided. Great opportunities are available throughout New Zealand.

24 130

Y P 0800 759 363 M 021 721 430 E [email protected] W touchupguysfranchise.co.nz franchise.co.nz – search: Touch Up

ToyworldGeoff Moth

61 Retail $200,000 - $500,000

Join New Zealand’s largest independent toy retailing group. Toyworld are an iconic and respected brand operating for over 36 years. Opportunities exist for driven, experienced individuals who are passionate about retailing and want to own and operate their own business.

34 200

N P 027 283 2222 E [email protected] W toyworld.co.nz franchise.co.nz – search: toyworld

Ultra-Scan Agriculture $80,000 + Ultra-Sonic animal pregnancy scanning. Mobile rural lifestyle working with animals. 19 19

Y P 0-7-889 3395 franchise.co.nz – search: Ultra Scan

United Video Retail $250,000 NZ’s leading video rental retailer. National coverage. New and existing franchises available. 100+ 100+

Y P 0-7-853 7035 franchise.co.nz – search: United

Valentines RestaurantsMurray Belcher

57 Food & Beverage

$400,000 Value for money buffet restaurants, great for the special occasion or groups. Established in 1989. Proven model. Suitable for metropolitan location. Solid business opportunity for person/s with energy and preferably hospitality background. Full training and ongoing support provided.

11 11

N P 0-9-451 9102 M 021 483 500 E [email protected] W valentines.co.nz franchise.co.nz – search: Valentines

Versatile Homes and BuildingsJaimee Ferris

Home & Building

P.O.A. Own your own business and build your wealth with our support. Versatile Homes and Buildings are one of NZ’s biggest building companies. As a franchisee you’ll have Versatile backing you all the way, with a strong support system and quantifiable financial benefits.

35 35

N M 0274 815 880 E [email protected] W versatile.co.nz franchise.co.nz – search: Versatile

Video EzyKevin Peterson Chris Osborne

Retail $200,000 - $1m

Operation of home entertainment centres specialising in rental and sale of videos, games, DVDs. In operation since 1991. New locations and existing stores currently available.

125 1010

N P 0-9-302 2229 M 021 955 834 E [email protected] W videoezy.co.nz franchise.co.nz – search: Video Ezy

V.I.P. Home ServicesJohn & Estelle Logan

51 Home Services

$15,000 + Professional home services franchise providing flexible, multi-serviced businesses. Work either indoors or outdoors. Exclusive territories with established customers. Providing a lifestyle choice for over 30 years. Actively seeking area master franchisees for both lawnmowing and cleaning throughout NZ. Comprehensive training and support provided.

120+ 1200

Y P 0-9-263 0544 M 021 489 861 E [email protected] W viphomeservices.co.nz franchise.co.nz – search: VIP

Waxnlaser Health & Beauty

$35,000+ clinic

Specialist beauty business. Become the market leader by focusing on doing one thing really well. 3 3

N P 0-4-565 0353 franchise.co.nz – search: WaxnLaser

Wet-seal Home & Building

$50,000 Wet-seal waterproofing and underfloor heating provides leading products. Full training and support.

8 47

Y P 0800 436 000 franchise.co.nz – search: Wet-seal

Wholly Bagels & Pizza Food & Beverage

$250,000-$400,000

Auckland opportunities now available for our dual branded fully licensed restaurants. 6 6

N M 0274 534 876 franchise.co.nz – search: Bagels

Window TreatmentsGraeme Rose

Home & Building

$100,000 Window Treatments manufacture and supply blinds, awnings, shutters, insect screens. Franchise opportunities exist in Gisborne, Invercargill and the West Coast of New Zealand. If you are enthusiastic, well-presented, practical and want to be your own boss we want to talk to you.

21 21

N M 021 338 031 E [email protected] W window-treatments.co.nz franchise.co.nz – search: Window Treatments

Xpresso DelightAllan Parker

21 Food & Beverage

$69,950 We transplant the café experience into the workplace using state-of-the-art commercial grade automatic bean-to-cup espresso machines providing quality coffee. We provide a semi-passive income based on one day of work but equivalent to a week’s salary with lifestyle benefits.

19 175

Y M 021 875 431 E [email protected] W xpressodelight.co.nz franchise.co.nz – search: Xpresso

Yard Art & KiwiMoulds Home & Building

$5,000 Make your own quality concrete garden ornaments. Licensed or unlicensed package options. 12+ 40+

N P 0-9-473 3175 franchise.co.nz – search: Yard Art

YöggMichael Morton

Food & Beverage

$200,000 New Zealand’s hippest self-service frozen yoghurt franchise, leveraging off the business knowledge and experience of one of NZ’s best-known brands with a proven track record. Turn-key packages available now. Make the move early and get in on the ground floor for this successful franchise opportunity.

2 2

N P 0-9-531 5911 M 021 725 458 E [email protected] W yogg.co.nz franchise.co.nz – search: Yogg

ZambreroDavid Newport

45 Food & Beverage

$390,000 turnkey

An edgy Mexican restaurant franchise, with over 30 stores across Australia. They are now looking to expand within New Zealand. Easy, quick fitouts with low set-up and entry costs. No trained chefs or food experience required. Healthy humanitarian business ethos.

New 30

N P 0-9-377 7735 M 021 304 414 E [email protected] W switchbusiness.co.nz franchise.co.nz – search: Zambrero


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ACCOUNTANTS

Accountants FirstImran Kamal

73 Free initial consultation. Franchise experts and experienced professionals in various franchise models. Advice on due diligence/appraisals, franchise valuations, set-up, structuring, financial reporting, asset protection, financing, tax advice and efficiency. Franchise-based solutions to maximise profits and growth.

National N P 0-4-499 6825 M 027 248 0675 E [email protected] W accountantsfirst.co.nz franchise.co.nz – search: Accountants First

Daniel Hunt & AssociatesSharon Cohen

73 Need help with your accounts? Our chartered accountants will provide ongoing support for your business while saving you time and money. Alternatively, our online courses will give you the skills to prepare your own income tax, GST and FBT returns. Consulting Auckland region, training nationwide.

National N P 0800 DHA TAX M 021 0236 2482 E [email protected] W dhatax.co.nz / taxtraining.co.nz franchise.co.nz – search: Daniel Hunt

Franchise AccountantsPhilip Morrison

75 Save time, money and tax by benefiting from our specialist franchise advice and proven accounting solutions. Your success is our business. Ring now 0800 555 8020. Specialist franchise accounting solutions including due diligence, benchmarking, budgeting, valuations, business mentoring, tax planning, cashflow management and reporting software systems.

National Y P 0800 555 8020 M 021 229 9657 E [email protected] W franchiseaccountants.co.nz franchise.co.nz – search: Franchise Accountants

Grant Thornton New Zealand Ltd

60, 84

Experts in each office nationwide can help you in all areas of your business including advisory boards, strategic planning, establishment, operational matters, reporting and tax. We can help you make informed decisions about business opportunities and emerging issues. We provide a tailored, high-quality service and specialise in helping businesses grow through setting objectives and assisting our clients to reach them. Grant Thornton New Zealand Ltd is a leading business advisor and chartered accounting firm with three offices located in Auckland, Wellington and Christchurch. We are big enough to be specialised, but small enough to be personal.

National Y Auckland 0-9-308 2570 Wellington 0-4-474 8500 Christchurch 0-3-379 9580 E [email protected] [email protected] [email protected] W grantthornton.co.nz franchise.co.nz – search: Thornton

Inspired Business SolutionsCraig Weston

79 As CA’s we do the numbers, but we do much more. We take a holistic goal-orientated approach and help develop strategies to achieve those goals. We will work to get the best outcome for you. We will be upfront with costs and you will see the benefits.

National Y P 0-9-309 2561 E [email protected] W inspired.co.nz franchise.co.nz – search: Inspired

⇒Specialist AdvisorsCompany Name

Page

No

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Charlie LovettDavid Newport

See page 45

P: 0-9-377 7735 M: 021 304 414 [email protected] www.switchbusiness.co.nz

Food & Beverage Charlie Lovett is a unique coffee/bakery concept (roasting fresh coffee in-store). Setting itself apart from others by focusing on the quality and freshness of its food and beverages.

8 NZ$ 375,000

Close relationship/links with owners and Head Office. No food industry or retail experience necessary as full state-of-the-art training and ongoing support provided. Next generation of coffee shops.

Geeks on CallAaron Kernbach

M: 0061 4 0884 7524 [email protected] www.geeksoncall.com.au

Computer Geeks on Call is Australia’s leading trusted advisor for computer repair and IT support to small business and residential clients.

27 NZ$75,000 If you have excellent communication and business development skills, are passionate about managing teams to achieve their best we would love to hear from you.

GelatissimoDavid Newport

See page 45


Food & Beverage A leading international authentic gelato franchise system with a total of 48 franchises, 31 in Australia and 17 internationally. A family-run business launched in 2002.

48 NZ$ 275,000

No ongoing royalty fees for master franchise partners. Close relationship with owners and Head Office. No food industry or retail experience necessary as full training is provided.

Golf Etc.Robert Shaw

P: 001 949 224 3896 M: 001 949 419 7429 [email protected] www.golfetc.com

Retail Golf Etc., the fastest-growing golf retail franchise in America, provides golf enthusiasts with personalised service, performance club fittings, professional repairs and club evaluations.

60 US$ 400,000

Master licence available for New Zealand. Sports and/or retail sector experience preferred.

Lolita S.A.Michel Cohen

P: 00598 2309 0890 [email protected] www.lolita.com.uy

Retail Fashion franchise system. Most successful Latin American chain of ladies’ fashion stores already operating in 12 countries.

75 US$ 150,000-250,000

Seeking master franchisees for the New Zealand and Australian markets.

MagnetiteIan Harkin

P: 0061 2 9565 4070 M: 0061 410 684 093 [email protected] www.magnetite.com.au

Home & Building Distribution of retrofit double-glazing and associated products. Seeking NZ master licensee.

12 AUD$ 150,000

Key roles will include marketing, recruitment, supplier management, fabrication, installation, system compliance and customer service.

Mr Green (Auckland master franchise)David Newport

See page 45


Home & Commercial Mr Green Auckland offers commercial and home cleaning franchises to the greater Auckland area (Warkworth to Bombay). The master franchise agreement includes 35 franchisees in total.

35 NZ$ 500,000

35 franchises contribute approximately $15,000+ gst every month in royalties. All franchisees are hand-picked, well-trained and competent. Operates with very little interference from Mr Green Head Office.

Ready Steady Go KidsStuart Derbyshire

P: 0061 1 300 766 892 M: 0061 411 837 163 [email protected] www.readysteadygokids.com.au

Leisure & Education Australia’s leading multi-sport and exercise programme for pre-school aged children (2.5 – 6 years). More than 90 locations in Australia, Singapore and the UK. Fun, flexible and rewarding.

90+ AU$ 55,000

Love working with kids? Passionate about sports and physical activity? Understand the importance of customer service? If you answered yes, Ready Steady Go Kids would love to hear from you.

The Melting PotWilliam Gabbard

P: 001 949 224 3896 M: 001 303 829 4227 [email protected] www.themeltingpot.com

Food & Beverage The Melting Pot has defined the fondue restaurant niche across the US for more than three decades. Fondue is a fun and interactive dining experience at almost 150 locations in the US.

150 US$1m Restaurant experience not required.

TriosSam Elia

P:006 1 3 9370 5833 [email protected] www.trios.com.au

Food & Beverage The largest and fastest growing sandwich wrap franchise in the Southern Hemisphere. Our goal is to become one of the world’s most loved food brands.

17 NZ$ 200,000-300,000

Seeking passionate individuals or corporations from diverse backgrounds with proven retail experience in operating multiple outlets.

WingstopDavid Newport

See page 45


Food & Beverage The ultimate buffalo-style chicken wings restaurant franchise, providing a superior guest experience and exceptional value. Looking to launch into the New Zealand market.

500+ P.O.A. Wingstop would appeal to experienced restaurateurs with the ability to build a fast-growing business.

ZambreroDavid Newport

See page 45


Food & Beverage Zambrero is an edgy Mexican restaurant franchise, launched in 2006, with a total of 30 stores across Australia. They are now looking to expand within New Zealand.

30 NZ$ 450,000

Easy, quick fit-outs with low set-up and entry costs. No trained chefs or food experience required. Multiple target market groups. Healthy and humanitarian business ethos.

⇒National Master Licence Opportunities Company Name Contact Name

Website Contact Email

Industry Description No

Glo

bally Investment

RequiredNotes


Let us help you make the right decision• Free initial 30 minute consultation• Fixed fee packages

We have the expertise and the experience to find cost effective legal solutions for your franchising needs

Contact: Lizandra Bailey (09) 281 4552 [email protected]

92 Parnell Road, Auckland

Montgomery Consultants

Limited

Phone 09 578 [email protected]

Accounting support to SME’s inFinance, Payroll, Retail and MYOB

Part of the Franchise Solutions Ltd group

Membership of Institute of Chartered Accountants

The awardthat spells confidenceand trust

Service Provider of the Year

Markhams Clarke CrawBarry O’Donnell

With 65 years’ experience in the Otago community, being locally owned and operated we offer practical and solution-oriented accounting services for franchisees. Our focus is on our clients and the welfare of their business and financial interests. First meeting free.

Dunedin & Otago

Y P 0-3-477 0032 E [email protected] W markhams.co.nz franchise.co.nz – search: Markhams

Montgomery Consultants LtdPeter Montgomery JP

81 Complete accounting service for SMEs. Certified MYOB consultant for accounting, payroll and retail. Mentor, coach and very experienced business advisor. Friendly hourly rates. Member of ICANZ. Associate of Franchise Solutions who are members of FANZ. 35 years’ experience in all business areas.

Auckland N P 0-9-578 2318 M 0274 966 901 E [email protected] W franchisesolutions.co.nz franchise.co.nz – search: Montgomery MYOB

Staples Rodway ChristchurchJon Robertson Dave McCone

Assistance with franchise purchases and ongoing accountancy and I.T. support in the franchise area. Over 15 years’ experience in franchising in the SME market, acting for both franchisors and franchisees.

South Island

Y P 0-3-343 0599 E [email protected] W staplesrodway.com franchise.co.nz – search: Staples

Young Read WoudbergEric Woudberg Raimarie Pointon Steve Read

Specialists in all business areas, with substantial experience in franchises. Our services include appraisals, structure review and planning, monitored business performance, mentoring and technology. We are committed to easily accessible, personal service focusing on client needs, building individual relationships and providing added value solutions.

Tauranga, Bay of Plenty

Y P 0-7-578 0069 M 027 570 1172 E [email protected] W yrw.co.nz franchise.co.nz - Woudberg

FINANCE PROVIDERS

ANZSean Dwyer

38 ANZ is dedicated to being the leader in the provision of financial services to the New Zealand franchise sector. We deliver this through a nationwide team of Business Managers in all major centres throughout New Zealand. Our Business Managers assist existing and start-up franchise business owners achieve their short-term and future business needs.

National Y P 0800 251 858 M 027 232 1505 E [email protected] W anz.co.nz franchise.co.nz – search: ANZ

ASBCraig McKenzie

20 ASB provides a comprehensive range of financial solutions for both franchisees and franchisors including finance, insurance, savings and investment options, everday banking and more. So if you are thinking of starting or buying a franchise, talk to our franchise specialists on 0800 272 476.

National Y P 0800 272 476 M 021 805 425 E [email protected] W asb.co.nz franchise.co.nz – search: ASB

Silver ChefDan Toms

58 Silver Chef are an equipment finance company that specialise in funding equipment for the hospitality industry. Silver Chef has a unique finance offer that allows customers flexibility while conserving their capital.

New Zealand & Australia

Y P 0800 443 334 M 0061 488 068 537 E [email protected] W silverchef.co.nz franchise.co.nz – search: Silver Chef

Westpac New Zealand LtdDaniel Cloete

30, 83

Westpac is New Zealand’s most experienced bank in franchising and the only bank offering dedicated franchise only specialist managers throughout the country. Westpac has a high level of expertise in the franchise industry; this has been built up over the past two decades by working closely with franchisors, franchisees and industry specialists. The resulting depth of experience enables us to provide you with informed specialist advice regarding franchise funding and franchise specific transactional solutions. Specialists in franchise financing:Auckland/Northland - Dean Madsen, Chris Gavin, Ashika Lal & Rohann DobbinWaikato – Connie Short Christchurch/South Island - Andrew MalcolmLower North Island – Nick Virtue Otago/Southland - Graeme Wyllie

National Y P 0800 177 007 E [email protected] W westpac.co.nz franchise.co.nz – search: Westpac

LAWYERS

ASCO: Agmen-Smith LawyersMiles Agmen-Smith

4 New franchise system set-up, franchise agreements, disclosure documents, brand name, trademarks, IP, master licensing, import/export, leasing sale and purchase structure compliance, disputes. Highly experienced team. Wide experience in all aspects of franchising. Extensive network of franchising contacts NZ and internationally.

National & Worldwide

Y P 0-9-308 8070 M 0274 779960 E [email protected] W ascolegal.co.nz franchise.co.nz – search: ASCO

Botting LegalBradley Botting

Franchise and commercial law specialists. We provide practical legal advice in plain English for both franchisees and franchisors at very competitive rates. Preparation and review of franchise documentation, advice on structuring and IP protection, franchise operation and dispute resolution.

National Y P 0-9-950 3880 E [email protected] franchise.co.nz – search: Botting

Davenports Harbour LawyersScott Goodwin

3 Davenports advise on all aspects of franchising including developing franchise systems, preparing franchise documents, reviewing franchise arrangements and advising on disputes and intellectual property protection. Team of leading law experts that are well-known in the franchise industry and who focus on making it possible.


Y P 0-9-915 4396 M 027 700 7396 E [email protected] W davenportshourbour.co.nz franchise.co.nz – search: Davenports

Deirdre Watson - Barrister 25 years’ experience in litigation, disputes, court cases and mediation. Franchise dispute specialist. National Y P 0-9-309 6988…M 021 791 740 E [email protected] W deirdrewatson.co.nz franchise.co.nz – search: Deirdre

Gaze BurtMichael Bright

66 Lawyers providing full legal services for franchisors and franchisees including advice and documents relating to franchise development, franchise evaluation, risk management, transactional management and dispute resolution. Our experience is extensive over many years and we understand the important and significant fundamentals required for quality franchising.

National Y P 0-9-414 9800 E [email protected] W gazeburt.co.nz franchise.co.nz – search: Gaze

Gibson Sheat LawyersClaire Byrne Dave Robinson

77 We provide comprehensive advice on the legal aspects of franchising to both franchisors and franchisees. For details see our website. We can quickly establish the issues each party is likely to encounter and address these at the outset before they become problems.

Greater Wellington

Y P 0-4-916 7483 M 029 916 7483 E [email protected] W gibsonsheat.com franchise.co.nz – search: Gibson

Harmans LawyersMark Sherry

Comprehensive legal service for both franchisors and franchisees including franchise and disclosure documentation, employment, leases, terms of trade, dispute resolution and business structures. Full service legal firm that prides itself on being solution driven. Franchise specialists with a proven track record.

South Island and National

Y P 0-3-352 2293 M 021 524 890 E [email protected] W harmans.co.nz franchise.co.nz – search: Harmans

Harris Tate David Foster Katrina Hulsebosch Oliver Moorcroft

79 All aspects of franchising and business advice including disputes resolution. Advisors to franchisees and franchisors locally and nationally. Experienced in advising the franchise industry. Franchisor and franchisee advice. Full commercial advice.

Bay of Plenty and National

Y P 0-7-578 0059 E [email protected] W harristate.co.nz franchise.co.nz – search: Harris


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We’ve had franchise specialists longer than most NZ franchisees have been in business.


CONSULTANTS & OTHER SERVICES

Cardplus Z Energy FuelcardJohn Morgan

18 Discount Fuel Cards

Cardplus provides cost savings, benefits, and convenience to customers via discount fuel cards. The Cardplus Z Fuelcard can offer you a competitive discount on fuel.

National N P 0-4-569 9099 0274 435 932 E [email protected] W cardplus.co.nz franchise.co.nz – search: Cardplus

CDQ Communication DesignPaul Donovan

Graphics & Print Management

Quality graphics and print management from franchising’s design and print specialists. Your brand’s awareness and value will grow stronger with CDQ’s expertise. Brand/corporate identity design for advertising, promotional, recruitment and operations materials. Over 20 years’ experience with leading franchise brands.

National N P 0508 CDQ CDQ M 021 64 45 45 E [email protected] W cdq.co.nz franchise.co.nz – search: CDQ

Cumulo9Jason Simons

Email Branding We deliver standardised, professionally branded, every-day business email. Our technology applies a feature-rich consistent template to every company email communication. Standardise your most popular business communication tool. Unlock the rich sales potential on every email with tracked promotional messaging.

National N M 027 938 0840 E [email protected] W cumulo9.com franchise.co.nz – search: Cumulo9

Dualcom TechnologyBrendon Wallace Craig Barnes

16 Cash Counting Solutions

Specialising in affordable cash counting solutions for SMEs. Able to custom-build cash counting machines that integrate into your software. Provide products that complement your current cash counting systems.

South Pacific

N P 0-9-889 0246 M 027 226 0735 E [email protected] W dualcom.co.nz franchise.co.nz – search: Dualcom

Expro NZ LtdBrett Rodger

62 Expo Organiser

An expo helps people get into business by providing access to available franchise and other business opportunities, as well as business, professional and government service providers.

National Y P 0800 439 776 P +64 7 544 5058 E [email protected] W franchisingexpo.co.nz franchise.co.nz – search: Expo


77 Franchise Consultants & Accountants

Specialist advice on franchise system development, feasibility studies, recruitment, documentation, manuals, ongoing mentoring, strategic planning and partnering to grow your business.

National Y P 0-9-265 2657 M 021 229 9657 E [email protected] W franchiseaccountants.co.nz franchise.co.nz – search: Franchise Accountants

Franchise CoachDavid McCulloch Fiona Macky

81 Franchise Consultants & Recruitment

Comprehensive advice on franchise system development. Feasibility studies, manuals, documentation, legal briefs, franchisee recruitment, exporting and importing, mediation and ongoing mentoring to grow your business. The Franchise Coach has been a major contributor to the success of franchising in New Zealand since 1983. Consultants, trainers and speakers.

National & Worldwide Australia 1800 834 440

Y P 0800 4FRANCHIS M 021 943 776 P 0-9-580 1556 M 021 616 519 E [email protected] E [email protected] franchise.co.nz – search: Coach

Franchise Relationships InstituteDavid McCulloch Fiona Macky

Franchise Research & Development

Franchisee selection systems, satisfaction surveys, recruitment and training for franchise management. Assistance with organisational change and restructuring, conference presentations on managing the franchise relationship. “The Franchise Coach” has been awarded the agency for the Franchise Relationship Institute’s products, including Greg Nathan’s popular books.

Australia & New Zealand

N P 0800 4FRANCHIS M 021 943 776 P 0-9-580 1556 M 021 616 519 E [email protected] E [email protected] W franchiserelationships.com franchise.co.nz – search: Relationships

Franchise Solutions LtdPeter Montgomery JP Thomas Grube

75 Consultant Innovative and effective solutions from international skilled franchise advisors. We have been franchisors/franchisees/franchise support managers so we really understand franchising. Quality advice without obligation. Leading mentors, coaches, facilitators, advisors, and mediators with over 15 years’ experience in franchising.

National Y P 0-9 578 2318 M 0274 966 901 E [email protected] W franchisesolutions.co.nz franchise.co.nz – search: Franchise Solutions

Franchize Consultants (NZ) Win Robinson Callum Floyd

31, 77

Franchise Consultants

Specialists in franchise development, strategic planning, legal briefs, systems and manuals, recruitment processes and documentation, ongoing mentoring and sound advice on franchising and licensing. Recognised as New Zealand’s leading management consultancy specialising in franchise development. Experience with many of NZ’s top franchised companies.


Y P 0-9-523 3858 E [email protected] W franchize.co.nz franchise.co.nz – search: Franchize

Jones Lang LaSalleChris Beasleigh

Retail Real Estate

We specialise in finding suitable retail premises for franchisors and franchisees in New Zealand. We also manage a number of shopping centres throughout New Zealand.

National N P 0-9-363 0286 M 021 597 856 E [email protected] W joneslanglasalle.co.nz franchise.co.nz – search: Jones Lang

LINK Business FranchisingKevin Atkinson

6 Franchisee Resales & Recruitment

LINK are franchised specialists in business sales, franchise re-sales and recruitment and sales of franchise opportunities. We provide professional, practical franchise advice to our clients. LINK has more brokers, in more locations, and has more businesses for sale than any other brokerage.

National Y P 0-9-579 9226 E [email protected] W linkbusiness.co.nz franchise.co.nz – search: Link

MEGA Services Franchise ConsultantsRay Lindstrom

34 Franchise Consultants

MEGA Services Franchise Consultants are the most professional and cost effective way of developing your franchise documents and recruiting franchisees to expand your business world wide. Expand your business with MEGA Services Franchise Consultants now! Check out our free Feasibility Report – can you franchise your business? (normal value $1,500).


N P 0800 006 444 M 027 2525 334 E [email protected] W megafranchise.co.nz franchise.co.nz – search: Mega Services

Switch BusinessDavid Newport

45 Business Brokers Business broker with 15 years’ experience. Able to provide information and advice on both buying and selling franchises. Our comprehensive service managing the entire sales process is essential to completing a successful transaction on your behalf.

National N P 0-9-377 7735 M 021 304 414 E [email protected] W switchbusiness.co.nz franchise.co.nz – search: Switch Business

Waipuna Hotel & Conference CentreWayne Billings

31 Conferences Hotel accommodation with fully integrated conference centre suitable for small meetings through to international conventions. Full food, beverage and leisure facilities complete the offering. “World famous in New Zealand”, Waipuna Hotel and Conference Centre is an icon in the mid-range meetings and leisure market.

Greater Auckland Area

Y P 0-9-526 3024 M 0274 992 413 E [email protected] W waipunahotel.co.nz franchise.co.nz – search: Waipuna


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Izard WestonHamish Walker

Wellington and lower North Island experts in the specialised field of franchising and licensing. We are practical, personable and professional. We can help both franchisor and franchisee clients with all their legal requirements.

Wellington and National

Y P 0-4-499 7809 M 0272 882 339 E [email protected] W izardweston.co.nz franchise.co.nz – search: Izard

MacDonald Bailey LawRory MacDonald Lizandra Bailey

81 Commercial law firm specialising in franchising. A specialist firm based in Parnell offering sound, practical and timely advice, we can assist with all business legal requirements.

National & Overseas

Y P 0-9-307 3324 E [email protected] W mblaw.co.nz franchise.co.nz – search: MacDonald

Stewart Germann Law Office, Lawyers and Notary PublicStewart Germann Hashad Shiba

61 Over 30 years’ franchising and licensing experience. Legal advice to franchisors and franchisees nationwide. Stewart Germann is a Past Chairman of FANZ and is passionate about franchising and small to medium businesses. Awarded Franchise Law Firm of the Year for New Zealand – Dealmakers Law Awards 2012 – Winner.


Y P 0-9-308 9925 M 021 276 9898 E [email protected] W germann.co.nz franchise.co.nz – search: Stewart

c:fnzm/Adcopy2202/Dir2202Consultants

Directory of Franchising - Consultants

Cardplus Z Energy FuelcardJohn Morgan

18 Discount Fuel Cards

Cardplus provides cost savings, benefits, and convenience to customers via discount fuel cards. The Cardplus Z Fuelcard can offer you a competitive discount on fuel.

National N P 0-4-569 9099 0274 435 932 E [email protected] W cardplus.co.nz franchise.co.nz – search: Cardplus

CDQ Communication DesignPaul Donovan

Graphics & Print Management

Quality graphics and print management from franchising’s design and print specialists. Your brand’s awareness and value will grow stronger with CDQ’s expertise. Brand/corporate identity design for advertising, promotional, recruitment and operations ma-terials. Over 20 years’ experience with leading franchise brands.

National N P 0508 CDQ CDQ M 021 64 45 45 E [email protected] W cdq.co.nz franchise.co.nz – search: CDQ

Cumulo9Jason Simons

Email Branding We deliver standardised, professionally branded, every-day business email. Our technology applies a feature-rich consistent template to every company email communica-tion. Standardise your most popular business communication tool. Unlock the rich sales potential on every email with tracked promo-tional messaging.

National N M 027 938 0840 E [email protected] W cumulo9.com franchise.co.nz – search: Cumulo9

Dualcom TechnologyBrendon Wallace Craig Barnes

16 Cash Counting Solutions

Specialising in affordable cash counting solutions for SMEs. Able to custom-build cash counting machines that integrate into your software. Provide products that complement your current cash counting systems.

South Pacific N P 0-9-889 0246 M 027 226 0735 E [email protected] W dualcom.co.nz franchise.co.nz – search: Dualcom

Expro NZ LtdBrett Rodger

62 Expo Organiser

An expo helps people get into business by providing access to available franchise and other business opportunities, as well as busi-ness, professional and government service providers.

National Y P 0800 439 776 P +64 7 544 5058 E [email protected] W franchisingexpo.co.nz franchise.co.nz – search: Expo


77 Franchise Consultants & Accountants

Specialist advice on franchise system development, feasibility studies, recruitment, documentation, manuals, ongoing mentoring, strategic planning and partnering to grow your business.

National Y P 0-9-265 2657 M 021 229 9657 E [email protected] W franchiseaccountants.co.nz franchise.co.nz – search: Franchise Ac-countants

Franchise CoachDavid McCulloch Fiona Macky

81 Franchise Consultants & Recruitment

Comprehensive advice on franchise system development. Feasibility studies, manuals, documentation, legal briefs, franchisee recruit-ment, exporting and importing, mediation and ongoing mentoring to grow your business. The Franchise Coach has been a major con-tributor to the success of franchising in New Zealand since 1983. Consultants, trainers and speakers.

National & Worldwide Australia 1800 834 440

Y P 0800 4FRANCHIS M 021 943 776 P 0-9-580 1556 M 021 616 519 E [email protected] E [email protected] franchise.co.nz – search: Coach

*Westpac’s current lending criteria apply to all applications for finance. See westpac.co.nz for further details. Westpac New Zealand Limited.

Starting a new business is a big step and franchises have their own particular challenges. Because Westpac is experienced in franchise banking, we understand what you need to plan for. We have franchise-only specialists across the country, so you’ll get the support you need with your new venture.

We can offer specially designed franchise banking packages and finance options* to get you up and running. There’s no substitute for experience, so call our team today for great banking advice and the best start for your new business.

A franchise takes care of a lot of the tricky start-up stuff. So do we.

Call 0800 177 007 to find out more.

Franchise New Zealand - Vol 22 Iss 02 - Winter 2013

Documents

Transcript of Franchise New Zealand - Vol 22 Iss 02 - Winter 2013