a fairfax media custom publication•september 2010 4 Success sells: awards recognise and drive excellence The 2010 Excellence in Franchising Awards Gala Dinner will be held at the Marriott Resort & Spa in Surfers Paradise on Tuesday, 12 October. This dinner will announce and celebrate the national winners of the 2010 Excellence in Franchising Awards, which recognise the hard work and achievement of Australia’s franchising sector. Categories range from Franchisee and Franchisor of the Year to Field Manager of the Year; to Franchise Woman of the Year and Marketing Excellence –plus many more. Here we profile two of the finalists. Wrapped up for success Shane and Sally Cole, Pack & Send Melbourne Winner VIC/TAS Franchisee of the Year (less than 2 staff) S hane Cole had an advantage most other franchisees don’t when he became a Pack & Send franchisee six years ago. After seven years as a franchisee support manager with a successful printing franchise, Shane had extensive inside knowledge of the world of franchising, in particular what it was like to be a franchisee and, more importantly, how to become a successful one. “In the last couple of years in the role there is no doubt it (franchising) was the direction I was heading in,” Shane says. “The only decision for me was which franchise company would I choose?” Shane eventually joined Pack & Send, working with the company for 12 months to recruit franchisees to the business. But he eventually did his job too well, recruiting himself to the Pack & Send franchise. “I fell in love with the company, they’re a genuine bunch of people.” Now running the business with his wife Sally, Shane has been able to put his franchising knowledge and experience to work. “We were lucky, a fairfax media custom publication•september 2010 5 we bought a store that was already in existence. It had been open 18 months so we weren’t going into the business without a customer base.” The Coles experienced good growth right from the beginning, although Shane says it has been a gradual process. “We had growth of 25-30 per cent on the previous year in the beginning but that has tapered off as the business got older. It’s now about 10 per cent a year.” Shane attributes his and Sally’s success to a number of factors. First, he says, you need to have a good franchise system and group and it needs to have a good product and service. Location is also part of it. The Coles’ Pack & Send business is based in West Melbourne, close to the CBD, and they have a good business bringing their services to large corporate customers in the city. Shane says the key to success is simple. “Follow the franchise system. The franchise is successful for a reason.” As a franchise support manager, Shane saw many people who had been successful in their career and were used to doing things their own way struggle with following the system. “Most franchisees have no experience in the industry they go into. Those that follow the system have the greatest chance of success.” Shane and Sally’s success was recognised by Pack & Send with a recent Franchisee of the Year award for best risk management. In an industry that’s all about packing and sending fragile goods, the Coles’ lack of claims for damages was an indicator of the success of their business. Applying for the FCA awards was the next step. “It’s great recognition for us but also for the franchise. It shows the group as a strong organisation with a reliable system in place.” Catering to local customers Barry and Gayle Hill, Autobarn Maitland Winner NSW/ACT Franchisee of the Year (2 or more staff) W hen the global financial crisis struck in 2008, Gayle and Barry Hill thought times were going to be tough. Instead, they have “completely turned around their business,” Gayle says. The Hills last year won the state and then the national franchisee of the year title in the Autobarn Awards and, with Autobarn’s support, were persuaded to give the FCA awards a go, taking out the 2010 award for Franchisee of the Year (NSW/ACT). They have been Autobarn franchisees for only six years and one of their main reasons for deciding to become small business owners was the flexibility it offered their family. “We have nineyear-old twins so it is very important,” Gayle says. “Although it’s a seven-day-a-week business and can get pretty hectic, I can work from home and take time to go and see the kids at sporting events when I need to. Barry and I are interchangeable in the office.” The Hills are the first to admit they have not been an overnight success. “We struggled at first, we were extremely green,” Gayle says. “And when the GFC hit, we thought: this is an absolute nightmare.” Yet Gayle admits now that the GFC actually worked to their advantage. “People weren’t buying new cars, “We employ good staff and have a great relationship with our local customers.” instead they started looking after the cars they had.” After starting out in the business with a lot to learn, Gayle says their Autobarn franchise has since become an extremely professional operation. “We hired an executive salesman who has brought a lot to our business. We now have seven full-time staff and five casuals and we like to treat them well. They are all good staff.” Barry’s son, Jason, is a store manager and Gayle says the operation couldn’t be left in better hands. Building good relationships has been a focus for the couple and they have made sure they have a great relationship with their franchisor. “They help us sort things out when we have a problem, they fix problems quickly and they are always accessible,” Gayle says. Being locals in the area has also helped the Hills build good relationships with their customers. Gayle says the key to their successful franchise operation is straightforward. “We have the system in place, a good relationship with our franchisor, we employ good staff and have a great relationship with our local customers.” In the past 18 months, the Hills have substantially increased their business, adding more products and taking on more staff. Turnover has increased by $500,000. “We’ve got a really good business here,” Gayle says, “and now we’re even thinking about building our own building so we don’t have to rent.” Buying a franchise has been a great business decision for the Hills and their family and it looks as if they already have two new staff members in the making. “Our twins want to be up here too,” Gayle laughs. The regional winners VICTORIA/TASMANIA New South Wales/Act South australia western australia Franchisee Community Service Award: Brian Denvir, Bakers Delight Patterson Lakes Franchisee Community Service Award: Leanne Maslen, Bakers Delight Tamworth Franchisee Community Service Award: Greg Campbell, Mortgage Choice Unley Franchisee Community Service Award: Michael Caddy, Mr Rental South West Franchisee of the Year – 2 or more staff: Ashely Coburn, Bakers Delight Rosebud Franchisee of the Year – 2 or more staff: Barry and Gayle Hill, Autobarn Maitland Franchisee of the Year – 2 or more staff: Tim & Cassie Lewis, SafetyQuip Adelaide NW Franchisee of the Year – 2 or more staff: Michael Caddy, Mr Rental South West Franchisee of the Year – Less than 2 staff: Shane & Sally Cole, Pack & Send Melbourne City 3 Franchisee of the Year – Less than 2 staff: Stephen Jones, Minit Australia Franchisee of the Year – Less than 2 staff: Mark Carn, ActionCOACH South Australia Multi-Unit Franchisee of the Year: Fadi Mikhael, Looksmart Alterations Multi-Unit Franchisee of the Year: Brad & Katherine Underhill, Matchbox – Eastland, Doncaster & Knox Multi-Unit Franchisee of the Year: Tony Zoobi, Hairhouse Warehouse Multi-Unit Franchisee of the Year: Kylie Leopold & Karmen Wakelin, Endota Spa Franchise Woman of the Year: Sara Pantaleo, La Porchetta Field Manager of the Year: Alan Sammut, Minit Australia Franchise Woman of the Year: Louise Curtis, Lollypotz Head Office Field Manager of the Year: Alan Fardon, RAMS Financial Group Franchise Woman of the Year: Vicki Prout, Sherpa Group Franchise Woman of the Year: Bronwyn Butcher, Frontline Retail Perth Field Manager of the Year: Diane & Darrell Doust, PoolWerx Full steam ahead for franchising From page 1 previously minority owner to not only build its stake, but actually take ownership of the system. And what lies ahead? Despite the global economic uncertainty, there is good reason to be optimistic that franchising will keep on keeping on – and will weather any future storm in the same way it has in the past. There are about two million small businesses in Australia, including about 70,000 franchise outlets. If the old axiom is true, that 20 per cent of businesses in a specific population make 80 per cent of the profit within it, where would you guess that the majority of the 20 per cent would be – inside the franchising community or outside it? My guess would be that the top 20 per cent would be in the businesses that were the best organised, had the best operating systems and disciplines, the best supply certainty and price leverage and the best brand recognition and customer loyalty across multiple regions and territories. “There are, of course, no guarantees – and no substitutes for good planning and hard work.” Which, of course, would mean the franchising businesses. There are, of course, no guarantees – and no substitutes for good planning and hard work. But at least with a franchise, you know there is a track record of success and a network of others operating very similar enterprises on whose experience you can draw. For anyone contemplating buying into the franchise sector – congratulations! It may well be a great business choice! And what is the best way to make sure new businesses have the greatest prospect of success? As with anything else in life, the answer is: do your research, go in with eyes wide open and make sure you and your partner agree it is a good idea for you and your family (if you have one). And the best place to start your research is at the Franchise Council website, www.franchise.org.au, and at the No. 1 franchise buying and selling website, www.franchisebusiness.com.au. Good luck! Queensland/northern territory Franchisee Community Service Award: Jo & Maurie Patterson, Bakers Delight Caneland - Mackay Franchisee of the Year – 2 or more staff: Elton & Cindy Berrange, Grill’d Chermside Franchisee of the Year – Less than 2 staff: Bruce Campbell, ActionCOACH Business Coaching Multi-Unit Franchisee of the Year: Carolyn McManus, The Coffee Club Franchise Woman of the Year: Louise Broekman, HR Coach 7-Eleven heaven The acquisition by convenience store franchisor 7-Eleven of Mobil Oil Australia’s retail fuels business has created franchising opportunities in Australia’s eastern states. 7-Eleven will convert more than 200 Mobil/Quix sites in Victoria, NSW and Queensland into 7-Eleven franchised stores by the end of 2011. 7-Eleven will invest $100 million in renovations and upgrades to all the new sites. This is an average of $300,000 a store. The integration brings significant gains in supply chain efficiencies, greater buying and marketing power and an enhanced brand presence. The company has also launched a new 7-Eleven fuel card for its 450 fuel sites. Paul Stevens, National Franchising Manager, said: “Interest in and demand for the stores that will be converted to the 7-Eleven brand has never been stronger. It’s encouraging to see the number of existing franchisees and employees that have started securing some of the soon to be converted sites. There remain many stores in prime locations available for purchase.” n www.7elevenfranchise.com.au
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