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Franchising
volume 1 | issue 2 | july 2009

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JULY/AUGUST 2009 VOL.22/NO.4 WWW.FRANCHISE.NET.AU Franchisors
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volume 1 | issue 2 | july 2009
2010 YEARBOOK AND DIRECTORY

Your strategic What

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media alliance partner Why casual dining
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HOW TO
GET AHEAD
In the Drive your franchise future

spotlight:
A licence or a franchise
– what’s the difference?

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Franchising Magazine
The iconic publication for Australia’s franchise sector, Franchising is
www.franchise.net.au
www.franchise.net.au is an essential online source of information

Code of Conped
The directed at the potential franchisee. Published bi-monthly the for all prospective and existing franchisees. This site complements

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magazine is packed full of the most relevant information on and extends the community of the iconic market leading
franchising issues, industry developments, brands and marketing, magazine – Franchising.
legal and financial matters, trends and expectations, and franchisee
Content-driven, our site features the latest industry news, advice
experiences to help potential franchisees gain a thorough
about purchasing a franchise, franchisee and franchisor case
understanding of the issues before investing in a business.
studies, in-depth articles, business and government information,

On trackss and opinion from industry experts.

Mobile fran
to succe
chisees in th
e spotlight
• Established for 23 years Franchising is Australia’s most trusted
and longest running magazine dedicated to the franchising sector
The site is updated daily with a variety of news stories and
multimedia.
for all? k • Each issue of Franchising delivers independent, targeted editorial
ll for on e anyndstoroesninea franchise networ and expert opinion 5Minute Franchising: E-Newsletter
A Compa To further drive relevant and targeted traffic to each site, readers
• Potential franchisees read Franchising for impartial advice about
chisor have the option to subscribe to our free of charge e-newsletter
• US fran
franchising issues during their decision making process
HEADS Ali Baba
inc GST

•
NZ$ 7.95
$4. 95 inc
GST
KING Habits delivered weekly.
• Healthy
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WHAT’S
NEW 39 plus daily news and a regular email newsletter The site is targeted at anyone researching the franchising industry
A franchisee
spends up
By Domini
Stuart • Six issues a year, plus the Franchising Yearbook and The Profiler prior to a franchise purchase.
business. A to $450,000
year on
for a significan or two later, the busin what he or she believes
tly ess folds and to be a
skills and misg lower price. Is this a the franchisor recla viable
rare and unfo
practice know uided expectations? Or rtunate cons ims the busin
ess
n as churning is it the resu equence of
or recycling lt of the unsc poor business
? rupulous and
unlawful

Cbusiness to
hurning is the
when a franch
business to
for full price,
term used
isor sells a
a franchisee
forces the
South Wales
most seriou
accusations
, describes
s of all possib
which could
it as the
le
The 2011 Franchising Yearbook and Directory Your ultimate recruitment tool!
fail, purcha against a franch be levelled
a nominal cost ses it back isor.

Franchising reader surveys revealed:

for

The annual issue of the Franchising Yearbook is a valued and

and then sells The term first
again for the it once came to genera
full price. It notice last l
misrepresent might involve year when
ing the potent Today Tonigh tv progra m
profitability ial t Perth ran
of a busine former Baker a story on
deliberately ss or s Delight franch
creating financ Deanne De isee

• 17.1% are currently earning more than $100K with

e
ial hardship Leeuw. Sydne

This franchis
sought-after publication offering the best of the year’s features
for an appare y radio
ntly successful station 2UE

needs you!
franchisee. picked up on
Andrew Terry, and talk-sh the story
and Head of Professor ow host Glenn
School of Busine dedicated a Wheeler
and Taxatio ss Law series of hour-lo
n at the Univer segments to ng
sity of New the subject.

42.8% earning between $50K – $100K

Other
> Story continue
s on PAGE 40
including industry perspectives and advice to provide an essential
8?
flexibility, them in 200
enthusiasm, side. Are you joining
chise busi
nesses have
Youthful fran perhaps a great new
idea, on their
training. “Basic
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g – not only
one-stop showcase of excellence. • 61.4 % of readers are seeking to invest in a franchise:
potential and franchise busin
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six year old but their mana
1978. His d out as a for franchisees are
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look good
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and who would
? After all,
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system and
d we
we had to
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franchisees.
to look at the
adapt to get
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If you’re runnin
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adds, “but
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to

to be seen
as Add to this more than 900 listings across 40 categories in this - 15% want to invest between $100K – $150K
of the action best for our you’re in Liverp Brennan cultur
.”
want a piece
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isees surve a shop in l must be
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ective franch a franchise
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among prosp 10
report by

Directory to make the publication the ultimate reference tool.

Bondi Junct ics.”
last year for
a recruitment more)
to adjust to
the differe
nt demograph
challenge to
and Feet (see
page 7 for
nalds it is a constant ptance of your
cited McDo
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those intere
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recent a
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Excellence
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For Micha
el Renwick,
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Awards indica sity in busin Judges’ Reco ss on custo
mer
Franchising nicely into is a neces recently built its succe
MARCH/AP Innovation company
are maturing two of testify. His Homes has
franchises . We asked Brennan can oper
businesses aterhouseCo satisfaction. try has

The Profiler - 10% want to invest between $500K - $1M

substantial made in our indus
isors what has won the Pricew Innov ation custo mer
ed franch “A
the award in Franchising in
ess a succe
ss. Excellence mass ive investment
busin John for a
their essers, Award 2007
two hairdr FRANC HISING
The son of g locks since JANUARY/FEBR
UARY 2008
been cuttin
Brennan, has

This popular supplement to Franchising magazine is an opportunity Source: Franchising reader survey

for the franchisor to showcase their company to potential investors.

home magazine profile circulation features rates mechanical details print

 10FEET THOUSAND

In-time Intelligence
10FEET THOUSAND

In-time Intelligence

FranchisorExpansionStudy FranchiseeRecruitmentReport
Reinforce Franchising Magazine’s Reinforce Franchising Magazine’s
INVESTIGATION 105

Smoke Readership and circulation

and Brand Preference Brand Preference
fire The high profile investigation
into complaints of churning
may be over, but the
complainants have not
given up. Domini Stuart
STATE COPIES PERCENTAGE In your opinion, which of the following publications Publication that is the most credible source
reports on the continuing
saga of franchisee fury.

given the bargaining
disadvantage franchisees often find
themselves in, where the ACCC forms the
view that there is evidence supporting
a claim that a franchisor has behaved
unconscionably or in a systematic
misleading manner it will take action
O
n 22 April 2008, the
Australian Competition and
Consumer Commission
(ACCC) announced that it
is the best for advertising in? of information on Franchising
had concluded investigations into
allegations against Bakers Delight. No
evidence had been found that the
company had engaged in misleading,
deceptive and unconscionable conduct
towards franchisees, or breached the
NSW 1966 27%
Franchising Code.
The investigation began in April 2007
after the ACCC received a number of
complaints, predominantly from former
Bakers Delight franchisees, that the
Franchising Magazine 52%
company engaged in the practice
commonly described as ‘churning’ – selling
a franchise site repeatedly in circumstances
where the franchisor is aware that it will fail.

VIC 2159 29%

The ACCC found that there was no
evidence of churning within the Bakers
Delight system – in fact, the report went so

Other 9%
far as to say that the company is generally

Business Franchise 15% Wealth Creator 3%

QLD 1295 18%
Australian Financial Review 8%
BRW 3% Which Franchise? 6%
WA 1446 20%
Management Today 2%
My Business 5%

property
How to win at SA 466 6% My Business 11%
BRW 20%
Franchising can benefit from a slowing economy. For a new franchisee

ACT 17 0% Management Today 0%

backing the property market as a long term investor bucking the
negative trend could be the surprising result, reports Domini Stuart Franchising
SOURCE: 10THOUSANDFEET Franchisee Recruitment Report 2007 40%
TAS 9 0% Wealth Creator 1%

NT 1 0% Age/Sydney Morning Herald 24%

SOURCE: 10THOUSANDFEET Franchisor Expansion Study Edition 2 2009

OVERSEAS 32 0%
Not to be used without written permission from 10THOUSANDFEET I www.10thousandfeet.com

TOTAL 7391

Serving up
satisfaction
Running a restaurant business demands more than a good menu, clean venue and
great customer service. A successful food franchise relies on excellent catering
supplies at a good price. So what’s the franchisor view on the supply chain?

Average Net Distribution

April 09 – September 09
7391

Hard wired Market Analysis

for the future
CAB Audit of 7,391 copies (prospective franchisees) Total turnover of Australian franchise systems is estimated at
$130 billion*
Franchising magazine is also delivered to more than 1000
franchisors and senior managers both locally and internationally There are an estimated 413,500 employees in franchising and
71,400 units*
There are 1100 franchisors in Australia* (Source: Griffith University 2008 Franchising Australia survey)

home magazine profile circulation features rates mechanical details print

2010 Features
144 SNAPSHOT

JAN/FEB JULY/AUG There are a lot of things

SNAPSHOT 149

to consider before becoming

in the direction the business a franchisee. Do you
is going and are you believe Under $100k
Vending Leisure adequate return on your
the company and your
investment? Is there
own personal views
confident you will get
a natural fit between
and beliefs? To help
an
the culture of
research we’ve put the
spotlight on the following
franchise.
kickstart your
Fastway Couriers
Under $100k
Child friendly franchises Professional services Tell us about your brand

Appliance Fastway is a franchised

in New Zealand in 1983
countries, operating from
national courier organisation
and in Australia in 1993.
, established
It is in nine

Building Environmental Tagging Services million. Market-share in

five to 10 per cent, making
more than 104 locations
least 1,500 courier franchisees and with at
. Group sales now exceed
Australia is believed to
$385
be in the order of
How would you define your brand? Fastway one of the largest
dedicated
courier operators in Australia.
While our franchisees Australian Couriers Pty
do not need to be electricians, Ltd trading as Fastway

Food: multi-cultural cuisine Food: On the go franchise network, ATS

provides to organisation
Australia specialist electrical
required under OH&S
safety testing and tagging
legislation.
through its
s across
as
Putting safety first:
(Australia) is the national

How many franchisees do you

master franchisor.

Twenty-five regional franchise

have?
Couriers

Appliance Tagging Services territories across all capital

How old is the company and when and most major regional
centres as well as 617
cities
did
you start franchising?
Plus branding Plus location ATS was established in of which 500 are franchised. courier territories
2002 and due to the resounding the leaders in our field
and to offer a consistent
of the business, began success service to all ATS clients professional
franchising in 2006. irrespective of location
franchisees are as committed and our How are you going to grow the
to this goal as we are. business in 2008?
How many franchises do you have? Targeting sales growth
of more than 10 per cent
through like-on-like sales to $121 million,
Eighteen What are the start-up costs for growth using our proven
ing capital should they have? a franchisee and what work-
+ The Profiler + The Profiler marketing system that local area
we call saturation marketing.
How are you going to grow the Start-up costs are as follows: We are planning to add
another 16 sales reps Fastway is one of the largest
We plan to continue to
business in2008? $27,000 +GST in franchise bring our national field this year to dedicated courier operations
in the country
drive the business in our $8,000 +GST for equipment. fees; sales team to 45. New
five territories Franchisees also require developments over the technology What is the length of agreement
along the Eastern Seaboard, work vehicle and we recommend a suitable past few years are helping
working closely with our
growing approximately $15,000 major national accounts us win some ?
franchisee network. working capital. in to the benefit of all franchisees Our franchise agreements
are perpetual. As a consequenc

MELBOURNE EXPO PREVIEW Franchisees have the tools . franchisees have more e our
and training to grow their confidence that their investment
businesses locally, as
well as continuing to grow
own What is the length of agreement Where do you expect the business building the business will in
national client base. We the network’s ? Our long-term Australian
to be
in 2010? be returned to them as
goodwill when
will also be working towards Five years with an option sales target is $178 million it comes time for them
to renew for another five per annum to sell.
the franchise operation expanding years. by 2013.
to include Western Australia.
What sort of hours will the franchisee What sort of hours will the franchisee
have to work to get What do you expect from a franchisee? have to work to get

(extra copies distributed FOC)

Where do you expect the business the business established and the business established and
By 2010 ATS aims to have
to be
in 2010? how long should that take? At a courier franchisee It takes hard work and
how long should that take?
80 franchisees in order To ensure a good steady level, we expect enthusiasm dedication and 12 hour
to service a income a franchisee should and reliability days are

MAR/APR
growing client base in work on average eight expect to from applicants. At a regional common. If you don’t
every state in Australia hours per day, five days (master) franchisee level, like hard honest work,
and New Zealand. a week. After expect prior business we Fastway franchise. However, then don’t buy a
hours and weekend work experience, administrati
may also be available, ve or sales skills or we are a Monday to Friday
What do you expect from a franchisee? an ongoing business requirement however is not both, plus passion and
reliability for the brand. business, so your weekends
. are your own.
Passion and enthusiasm
, a genuine interest in
the safety What are the start-up costs for What profit can a franchisee reasonably
industry, commitment What profit can a franchisee reasonably
ing capital should they have? a franchisee and what work-
to the highest level of
customer service, expect to make after two years? expect to make after

Retail
loyalty to ATS and its customers,
professionalism, accountabil
two years?
and a strong team ethic. ity We would expect that At a courier level, the typical At a courier franchisee
within two years a franchisee cost is about $30,000 level we target average
The ATS franchisee network should be lease or outright purchase plus the of between $1,250 and weekly earnings
achieving net revenue of a late model long wheel $1,500. The profitability
is integral to the future of between $80,000 and base van. of the regional
and success of ATS as growth annum. $100,000 per It is usual that an income (master) franchisees varies
a whole. This is underpinned guarantee of between greatly with size and maturity
commitment to customer by our $1,500 per week is provided $1,200 and expect these to be returning but we
service, our high standards for a period of between six figure profits or higher
excellence, our professiona of service Contact: months from start up. five to 12 for the

Automotive SEPT/OCT
metropolitan operations.
lism and the strong working Kim Davies, franchise
relationship that exists Ph: development manager At a regional (master) franchisee
between ATS managemen 1300 287 669 level, a small operation
franchisees (business t and its Email: typically require between might Contact:
partners). As specialists, kim@atservices.com.au $100,000 and $1 million Ken Rosebery
our goal is to be while the larger metropolitan for goodwill, Ph:
Website: www.appliancetaggings regional franchises which 02 8263 3999
FRANCHISING JULY/AUGUST ervices.com.au come on to the market rarely Email:
2008 can fetch much higher ceo@fastway.com.au
prices.
Website:
IT and telecom Promotional www.fastway.com.au

JULY/AUGUST 2008
FRANCHISING

Food: chicken, burgers and chips Mobiles

Plus marketing Hair and beauty
SYDNEY EXPO PREVIEW Food: Bakeries and cafes FR_JAN08_P11
FR_JAN08_P032.PDF
Page

(extra copies distributed FOC) Plus funding SMALL BUSINESS

115 32 SAVING MONEY

BRISBANE EXPO PREVIEW

NEW SECTION
(extra copies distributed FOC) Small business
MAY/JUNE Buying a franchise might
buying your freedom from
be
a
be
business issues – subjects
are shared with all other
business owners, whether
that
small
or not
salaried position, or it might
up a they are also franchisees.
the alternative to setting
If you have never run a

Printing and signage business from scratch

– either way, with a new
franchise at your fingertips
by yourself

you
business before we hope
find them a useful starting
the small a helping hand
you will
point,
with the time-
have joined the ranks of business
consuming aspects of
business brigade. are so easily put aside
for a

Transport and logistics NOV/DEC

that
Running a small business
later date.
requires a set of skills quite guide
needed In this issue we have a
different from the talents at
to tax: Taxing issues looks

ways to save
45your cash!
the
to do the work itself. Whatever
in the what you need to consider
task at hand that brings your tax
before putting together

Convenience stores Sport and fitness dollars, there are still taxes,
insurance and salaries to
health and safety
pay,
consideratio
security issues, employment
ns,
return.
In a regular Tech Spec
aim to show you in table
slot we
form

the how a variety of products

processes, record keeping… features
compare for suitability,

Food: coffee and chocolate Photography list goes on.

So we have introduced
brand new element to
Franchising magazine,
the
a and price. In this issue
we look at
the technical specification
alarm systems,
s of
to help you make
tool
an the decision of what security
publication that offers you
you need to suit your business.

Plus leasing Domestic

buying
independent insight into will
In upcoming issues we
and running a franchise.
have guides to superannua
tion,
flow. We’ve got 45
Our dedicated Small Business by managing your cash
Get off to a good start
t
health and safety, employmen
section will provide useful A new business is exciting. r that hard-earned money.
ensuring you don’t squande
and choosing an IT system.
fabulous insider tips for
of small
information on a variety

PERTH EXPO PREVIEW Rental uying a business is daunting

and a bottomless pit for
2
Another tip – pay your
build up a relationship
suppliers on time. You
have to
with your suppliers, they
framework, so late

B
the
you can do to cut back become part of your business
your finances so anything
news. We’ve asked fran-
costs has got to be good payments can cause problems.

(extra copies distributed FOC) Food: Pizzas chisees, franchisors and

personal tips on saving
stock ordering, bill payments,
business advisors for their
money, from asking for
services
a read…
and
discounts, clever
saving the money by
I also pay my top 10 suppliers

Greg Murphy, Holy Sheet

on time every month.

franchisee in Rhodes,
Have a look at what the
Sydney
franchisor suggests you
doing it yourself! Have franchisees what you really
buy in, then ask other
your initial costs by not

Plus franchisee support The retail franchisee

Debbie Wines, Holy
and Fitzroy.
Sheet franchisee in
St Kilda

r is having good staff

need. You can cut back
over-stocking.
Always get more than
one quote when you are
work done, and for a fit-out.
having

The most important money-save

I consistently employ older
1 who are doing their job.
staff; I have some younger
casuals, but you need
the business.
passion at the heart of
someone with a bit of

ARY 2008
FRANCHISING JANUARY/FEBRU
2008 FRANCHISING
JANUARY/FEBRUARY

The publisher reserves the right to change editorial features at any time.

home magazine profile circulation features rates mechanical details print

 Mechanical Specs {height x width}

Magazine sizes
Double page spread Half page horizontal
image area: 245 x 380mm trim: 115 x 177mm
Advertising rates 2010 (AUD) excl. GST trim: 275 x 410mm
bleed: 285 x 420mm Half page vertical
FULL COLOUR CASUAL 3X 6X 12X trim: 230 x 85mm
Double page spread $6,585 $5,985 $5,390 $5,005
Full page
Full page $3,625 $3,265 $3,015 $2,770
image area: 245 x 175mm Third page horizontal
Half page $2,420 $2,070 $1,935 $1,815 trim: 76 x 177mm
trim: 275 x 205mm
Third page $1,870 $1,630 $1,405 $1,280
bleed: 285 x 215mm
Third page vertical
A-Z LISTINGS CASUAL 3X 6X 12X
trim: 230 x 55mm
1/6 Page $530 $500 $470 $440 Half double page spread
trim: 115 x 388mm
(17mm gutter width) 1/6 A-Z listing
PREFERRED POSITIONS
Please refer to Stephanie
Cover inside back cover $5,100 Giannetto for specifications
Cover - outside back / inside Front $6,115
specified position rate +15%
Yearbook advertising rates
OTHER OPTIONS POA
Double Page $6,585
Full Page $3,625
“Advertising is imperative for every business. If someone makes the decision to Half Page $2,420
cut down on advertising all he or she is doing is cutting the revenue stream. An Cover inside back cover $5,100
economic downturn is the time when you should promote, promote, promote. Any Cover - outside back / inside front $6,115
spend is actually an investment in the business and future sales – I’m not even Specified Position Rate + 15%
sure that advertising should be considered as an expense.” NB: Advertising sizes for the Yearbook are the same
Steve Hansen, Chief Chook, Chooks Fresh & Tasty as Franchising magazine’s dimensions (see above)
with the exception of ‘third page’ advertising.

Publication deadlines
www.franchise.net.au
ISSUE NO. SALES MATERIAL ON SALE Contact: David Strong 02 9422 2905 for pricing
JAN/FEB 10 24 NOV 09 01 DEC 09 04 JAN 10 and availability of web inventory
MAR/APR 10 27 JAN 10 03 FEB 10 08 MAR 10
MAY/JUN 10 24 MAR 10 31 MAR 10 03 MAY 10
JUL/AUG 10 26 MAY 10 02 JUN 10 05 JUL 10
SEP/OCT 10 28 JUL 10 4 AUG 10 06 SEP 10
NOV/DEC 10 22 SEP 10 29 SEP 10 01 NOV 10

home magazine profile circulation features rates mechanical details print

Contacts
Mechanical details
National sales and marketing manager
David Strong
All ads must be supplied as PDFs generated using the correct Acrobat Distiller settings. Reed Business Information provides Distiller settings to assist you
T: 61 2 9422 2905
in producing print-ready PDFs. How to use the RBI.joboptions file: 1. Double-click on the RBI.joboptions file to add it to your Distiler settings list. 2. When
F: 61 2 9422 8777 creating a PDF to go to print, export using the RBI distiller setting or print a postscript and distill using the RBI distiller setting.
M: 0411 366 656
E: david.strong@reedbusiness.com.au
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T: 61 2 9422 8900
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PROOFING
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F: 61 2 9422 2633 • All transparencies must be flattened.
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