Wrapped up for success - Franchise Council of Australia

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