2010 Media Kit Feb 10

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In the spotlight:

Franchisors share their passion

volume 1 | issue 2 | july 2009 Franchising2010 YEARBOOK AND DIRECTORY

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FranchisingWhat

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Why casual dining

– what’s the difference?

is on the menu

A licence or a franchise

Franchising Expo – Melbourne preview

In the spotlight:

Franchisors share their passion

volume 1 | issue 2 | july 2009

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BRISBANE EXPO PREVIEW

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CHURNING 39

MARCH/AP

39

Caught in the web?A franchisee spends up to $450,000 on what he or she believes to be a viable

business. A year or two later, the business folds and the franchisor reclaims the business

for a significantly lower price. Is this a rare and unfortunate consequence of poor business

skills and misguided expectations? Or is it the result of the unscrupulous and unlawful

practice known as churning or recycling?

Churning is the term usedwhen a franchisor sells abusiness to a franchiseefor full price, forces thebusiness to fail, purchases it back fora nominal cost and then sells it onceagain for the full price. It might involvemisrepresenting the potentialprofitability of a business ordeliberately creating financial hardshipfor an apparently successfulfranchisee. Andrew Terry, Professorand Head of School of Business Lawand Taxation at the University of New

South Wales, describes it as the most serious of all possibleaccusations which could be levelledagainst a franchisor.The term first came to generalnotice last year when tv programToday Tonight Perth ran a story onformer Bakers Delight franchiseeDeanne De Leeuw. Sydney radiostation 2UE picked up on the storyand talk-show host Glenn Wheelerdedicated a series of hour-longsegments to the subject. Other

By Domini Stuart

> Story continues on PAGE 40

WHAT’S NEW 39

Youthful franchise businesses have enthusiasm, flexibility,

potential and perhaps a great new idea, on their side. Are you joining them in 2008?

When you survey the

franchise market in

Australia household names

on the high street and in

business and services convey a sense of

well-earned success; established

businesses look good and who wouldn’t

want a piece of the action? After all,

among prospective franchisees surveyed

last year for a recruitment report by 10

Thousand Feet (see page 7 for more)

those interested in food cited McDonalds

as the kingpin.

But as the recent

PricewaterhouseCooper Excellence in

Franchising Awards indicate, plenty of

franchises are maturing nicely into

substantial businesses. We asked two of

the awarded franchisors what has made

their business a success.

The son of two hairdressers, John

Brennan, has been cutting locks since

1978. His six year old franchise business

John Brennan Hair, started out as a

simple barber’s cutting concept for men

and women but Brennan quickly learned

that no business can stand still and

indeed requires a flexible approach.

“We realised we had to look at the

system and we had to adapt to get the

best for our franchisees. If you’re running

a shop in Sydney, if you’re in Liverpool or

Bondi Junction, the model must be able

to adjust to the different demographics.”

Innovation is a necessity in business as

Brennan can testify. His company recently

won the PricewaterhouseCooper

Excellence in Franchising Innovation

Award 2007 for a massive investment in

training. “Basically we got back to square

one and looked at our training – not only

for franchisees but their managers and

staff and first year apprentices. We are

conscious of our industry’s enormous

shortage of staff and want to encourage

hairdressing as a career.

“It’s been an investment second to

none,” he adds, “but we needed to

invent, re-invent and install the John

Brennan culture. We want to be seen as

a franchise with an industry conscience.”

For Michael Renwick, recipient of a

Judges’ Recognition Award, Hotondo

Homes has built its success on customer

satisfaction.

“A customer in our industry has

JANUARY/FEBRUARY 2008 FRANCHISING

This franchise

needs you!This franchise

needs you!

In establishing a business it is a constant challenge to

determine the feasibility, viability and acceptance of your

offering into the marketplace

AN08_P039.PDF Page 1 12/10/07, 10

Source: Franchising reader survey

Your ultimate recruitment tool!Franchising reader surveys revealed:

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

42.8% earning between $50K – $100K

• 61.4 % of readers are seeking to invest in a franchise:

- 37% want to invest under $100K

- 15% want to invest between $100K – $150K

- 16% want to invest between $150K - $160K

- 11% want to invest between $250K – $500K

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

www.franchise.net.auwww.franchise.net.au is an essential online source of information

for all prospective and existing franchisees. This site complements

and extends the community of the iconic market leading

magazine – Franchising.

Content-driven, our site features the latest industry news, advice

about purchasing a franchise, franchisee and franchisor case

studies, in-depth articles, business and government information,

and opinion from industry experts.

The site is updated daily with a variety of news stories and

multimedia.

5Minute Franchising: E-NewsletterTo further drive relevant and targeted traffic to each site, readers

have the option to subscribe to our free of charge e-newsletter

delivered weekly.

The site is targeted at anyone researching the franchising industry

prior to a franchise purchase.

Franchising MagazineThe iconic publication for Australia’s franchise sector, Franchising is

directed at the potential franchisee. Published bi-monthly the

magazine is packed full of the most relevant information on

franchising issues, industry developments, brands and marketing,

legal and financial matters, trends and expectations, and franchisee

experiences to help potential franchisees gain a thorough

understanding of the issues before investing in a business.

• Established for 23 years Franchising is Australia’s most trusted

and longest running magazine dedicated to the franchising sector

• Each issue of Franchising delivers independent, targeted editorial

and expert opinion

• Potential franchisees read Franchising for impartial advice about

franchising issues during their decision making process

• A content-driven website provides all the magazine’s benefits

plus daily news and a regular email newsletter

• Six issues a year, plus the Franchising Yearbook and The Profiler

The 2011 Franchising Yearbook and DirectoryThe annual issue of the Franchising Yearbook is a valued and

sought-after publication offering the best of the year’s features

including industry perspectives and advice to provide an essential

one-stop showcase of excellence.

Add to this more than 900 listings across 40 categories in this

Directory to make the publication the ultimate reference tool.

The ProfilerThis popular supplement to Franchising magazine is an opportunity

for the franchisor to showcase their company to potential investors.


Readership and circulationSmokeand

The high profile investigationinto complaints of churningmay be over, but thecomplainants have notgiven up. Domini Stuartreports on the continuingsaga of franchisee fury.

On 22 April 2008, theAustralian Competition andConsumer Commission(ACCC) announced that it

had concluded investigations intoallegations against Bakers Delight. Noevidence had been found that thecompany had engaged in misleading,deceptive and unconscionable conducttowards franchisees, or breached theFranchising Code.

The investigation began in April 2007after the ACCC received a number of

complaints, predominantly from formerBakers Delight franchisees, that thecompany engaged in the practicecommonly described as ‘churning’ – sellinga franchise site repeatedly in circumstanceswhere the franchisor is aware that it will fail.

The ACCC found that there was noevidence of churning within the BakersDelight system – in fact, the report went sofar as to say that the company is generally

INVESTIGATION 105

given the bargaining disadvantage franchisees often find

themselves in, where the ACCC forms theview that there is evidence supporting a claim that a franchisor has behaved

unconscionably or in a systematicmisleading manner it will take action

fire

propertyHow to win at

Franchising can benefit from a slowing economy. For a new franchiseebacking the property market as a long term investor bucking the negative trend could be the surprising result, reports Domini Stuart

satisfactionServing up

Running a restaurant business demands more than a good menu, clean venue andgreat customer service. A successful food franchise relies on excellent cateringsupplies at a good price. So what’s the franchisor view on the supply chain?

Hard wired for the future

STATE COPIES PERCENTAGE

NSW 1966 27%

VIC 2159 29%

QLD 1295 18%

WA 1446 20%

SA 466 6%

ACT 17 0%

TAS 9 0%

NT 1 0%

OVERSEAS 32 0%

TOTAL 7391

Average Net DistributionApril 09 – September 09

7391

Market Analysis

CAB Audit of 7,391 copies (prospective franchisees)

Franchising magazine is also delivered to more than 1000

franchisors and senior managers both locally and internationally

There are 1100 franchisors in Australia*

Total turnover of Australian franchise systems is estimated at

$130 billion*

There are an estimated 413,500 employees in franchising and

71,400 units*


SOURCE: 10THOUSANDFEET Franchisor Expansion Study Edition 2 2009

Not to be used without written permission from 10THOUSANDFEET I www.10thousandfeet.com

SOURCE: 10THOUSANDFEET Franchisee Recruitment Report 2007

10THOUSAND

FEETI n - t i m e I n t e l l i g e n c e

Franchising Magazine

Other

Wealth Creator

Australian Financial Review

Which Franchise?

Management Today

My Business

BRW

Franchising

Business Franchise

BRW

My Business

Management Today

Wealth Creator

Age/Sydney Morning Herald

9%52%

15%

3%

5%

0%

1%

24%

3%

8%6%

2%

11%

20%

40%

FranchisorExpansionStudyReinforce Franchising Magazine’s

Brand Preference

FranchiseeRecruitmentReportReinforce Franchising Magazine’s

Brand Preference

In your opinion, which of the following publications is the best for advertising in?

Publication that is the most credible sourceof information on Franchising

10THOUSAND

FEETI n - t i m e I n t e l l i g e n c e

(Source: Griffith University 2008 Franchising Australia survey)

2010 Features

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

SMALL BUSINESS 115

JANUARY/FEBRUARY 2008 FRANCHISING

Buying a franchise might be

buying your freedom from a

salaried position, or it might be

the alternative to setting up a

business from scratch by yourself

– either way, with a new

franchise at your fingertips you

have joined the ranks of the small

business brigade.

Running a small business

requires a set of skills quite

different from the talents needed

to do the work itself. Whatever the

task at hand that brings in the

dollars, there are still taxes,

insurance and salaries to pay,

health and safety considerations,

security issues, employment

processes, record keeping… the

list goes on.

So we have introduced a

brand new element to

Franchising magazine, the

publication that offers you an

independent insight into buying

and running a franchise.

Our dedicated Small Business

section will provide useful

information on a variety of small

business issues – subjects that

are shared with all other small

business owners, whether or not

they are also franchisees.

If you have never run a

business before we hope you will

find them a useful starting point,

a helping hand with the time-

consuming aspects of business

that are so easily put aside for a

later date.

In this issue we have a guide

to tax: Taxing issues looks at

what you need to consider

before putting together your tax

return.

In a regular Tech Spec slot we

aim to show you in table form

how a variety of products

compare for suitability, features

and price. In this issue we look at

the technical specifications of

alarm systems, to help you make

the decision of what security tool

you need to suit your business.

In upcoming issues we will

have guides to superannuation,

health and safety, employment

and choosing an IT system.

NEW SECTIONSmall business

FR_JAN08_P11

SAVING MONEY32

Buying a business is daunting and a bottomless pit for

your finances so anything you can do to cut back the

costs has got to be good news. We’ve asked fran-

chisees, franchisors and business advisors for their

personal tips on saving money, from asking for discounts, clever

stock ordering, bill payments, services and saving the money by

doing it yourself! Have a read…

The retail franchisee

Debbie Wines, Holy Sheet franchisee in St Kilda

and Fitzroy.

The most important money-saver is having good staff

who are doing their job. I consistently employ older

staff; I have some younger casuals, but you need

someone with a bit of passion at the heart of the business.

Another tip – pay your suppliers on time. You have to

build up a relationship with your suppliers, they

become part of your business framework, so late

payments can cause problems.

I also pay my top 10 suppliers on time every month.

Greg Murphy, Holy Sheet franchisee in Rhodes, Sydney

Have a look at what the franchisor suggests you

buy in, then ask other franchisees what you really

need. You can cut back your initial costs by not

over-stocking.

Always get more than one quote when you are having

work done, and for a fit-out.

FRANCHISING JANUARY/FEBRUARY 2008

1

2

45 ways to saveyour cash!

A new business is exciting. Get off to a good start by managing your cash flow. We’ve got 45

fabulous insider tips for ensuring you don’t squander that hard-earned money.

FR_JAN08_P032.PDF Page

SNAPSHOT144

FRANCHISING JULY/AUGUST 2008

There are a lot of things to consider before becoming a franchisee. Do you believein the direction the business is going and are you confident you will get anadequate return on your investment? Is there a natural fit between the culture of

the company and your own personal views and beliefs? To help kickstart yourresearch we’ve put the spotlight on the following franchise.

Under $100k Under $100k

How would you define your brand? While our franchisees do not need to be electricians, through itsfranchise network, ATS provides to organisations acrossAustralia specialist electrical safety testing and tagging asrequired under OH&S legislation.

How old is the company and when did you start franchising?ATS was established in 2002 and due to the resounding successof the business, began franchising in 2006.

How many franchises do you have?Eighteen

How are you going to grow the business in 2008?We plan to continue to drive the business in our five territoriesalong the Eastern Seaboard, working closely with our growingfranchisee network.Franchisees have the tools and training to grow their ownbusinesses locally, as well as continuing to grow the network’snational client base. We will also be working towards expandingthe franchise operation to include Western Australia.

Where do you expect the business to be in 2010?By 2010 ATS aims to have 80 franchisees in order to service agrowing client base in every state in Australia and New Zealand.

What do you expect from a franchisee?Passion and enthusiasm, a genuine interest in the safetyindustry, commitment to the highest level of customer service,loyalty to ATS and its customers, professionalism, accountabilityand a strong team ethic.

The ATS franchisee network is integral to the future growthand success of ATS as a whole. This is underpinned by ourcommitment to customer service, our high standards of serviceexcellence, our professionalism and the strong workingrelationship that exists between ATS management and itsfranchisees (business partners). As specialists, our goal is to be

the leaders in our field and to offer a consistent professionalservice to all ATS clients irrespective of location and ourfranchisees are as committed to this goal as we are.

What are the start-up costs for a franchisee and what work-ing capital should they have?Start-up costs are as follows: $27,000 +GST in franchise fees;$8,000 +GST for equipment. Franchisees also require a suitablework vehicle and we recommend approximately $15,000 inworking capital.

What is the length of agreement?Five years with an option to renew for another five years.

What sort of hours will the franchisee have to work to getthe business established and how long should that take?To ensure a good steady income a franchisee should expect towork on average eight hours per day, five days a week. Afterhours and weekend work may also be available, however is notan ongoing business requirement.

What profit can a franchisee reasonably expect to make aftertwo years?We would expect that within two years a franchisee should beachieving net revenue of between $80,000 and $100,000 perannum.

Contact: Kim Davies, franchise development managerPh: 1300 287 669Email: [email protected]: www.appliancetaggingservices.com.au

Appliance Tagging Services

Putting safety first: Appliance Tagging Services

SNAPSHOT 149

JULY/AUGUST 2008 FRANCHISING

Fastway CouriersTell us about your brand

Fastway is a franchised national courier organisation, establishedin New Zealand in 1983 and in Australia in 1993. It is in ninecountries, operating from more than 104 locations and with atleast 1,500 courier franchisees. Group sales now exceed $385million. Market-share in Australia is believed to be in the order offive to 10 per cent, making Fastway one of the largest dedicatedcourier operators in Australia.Australian Couriers Pty Ltd trading as Fastway Couriers(Australia) is the national master franchisor.

How many franchisees do you have?Twenty-five regional franchise territories across all capital citiesand most major regional centres as well as 617 courier territoriesof which 500 are franchised.

How are you going to grow the business in 2008?Targeting sales growth of more than 10 per cent to $121 million,through like-on-like sales growth using our proven local areamarketing system that we call saturation marketing.We are planning to add another 16 sales reps this year tobring our national field sales team to 45. New technologydevelopments over the past few years are helping us win somemajor national accounts to the benefit of all franchisees.

Where do you expect the business to be in 2010?Our long-term Australian sales target is $178 million per annumby 2013.

What do you expect from a franchisee?At a courier franchisee level, we expect enthusiasm and reliabilityfrom applicants. At a regional (master) franchisee level, weexpect prior business experience, administrative or sales skills orboth, plus passion and reliability for the brand.

What are the start-up costs for a franchisee and what work-ing capital should they have?At a courier level, the typical cost is about $30,000 plus thelease or outright purchase of a late model long wheel base van.It is usual that an income guarantee of between $1,200 and$1,500 per week is provided for a period of between five to 12months from start up.

At a regional (master) franchisee level, a small operation mighttypically require between $100,000 and $1 million for goodwill,while the larger metropolitan regional franchises which rarelycome on to the market can fetch much higher prices.

What is the length of agreement? Our franchise agreements are perpetual. As a consequence ourfranchisees have more confidence that their investment inbuilding the business will be returned to them as goodwill whenit comes time for them to sell.

What sort of hours will the franchisee have to work to getthe business established and how long should that take?It takes hard work and dedication and 12 hour days arecommon. If you don’t like hard honest work, then don’t buy aFastway franchise. However, we are a Monday to Fridaybusiness, so your weekends are your own.

What profit can a franchisee reasonably expect to make aftertwo years?At a courier franchisee level we target average weekly earningsof between $1,250 and $1,500. The profitability of the regional(master) franchisees varies greatly with size and maturity but weexpect these to be returning six figure profits or higher for themetropolitan operations.

Contact: Ken RoseberyPh: 02 8263 3999Email: [email protected]: www.fastway.com.au

Under $100k Under $100k

Fastway is one of the largest dedicated courier operations in the country

JAN/FEB

Vending

Child friendly franchises

Building

Food: multi-cultural cuisine

Plus branding

+ The Profiler

MAR/APR

Retail

Automotive

IT and telecom

Food: chicken, burgers and chips

Plus marketing

SYDNEY EXPO PREVIEW

(extra copies distributed FOC)

MAY/JUNE

Printing and signage

Transport and logistics

Convenience stores

Food: coffee and chocolate

Plus leasing

PERTH EXPO PREVIEW


JULY/AUG

Leisure

Professional services

Environmental

Food: On the go

Plus location

+ The Profiler

MELBOURNE EXPO PREVIEW


SEPT/OCT

Promotional

Mobiles

Hair and beauty

Food: Bakeries and cafes

Plus funding

BRISBANE EXPO PREVIEW


NOV/DEC

Sport and fitness

Photography

Domestic

Rental

Food: Pizzas

Plus franchisee support


Advertising rates 2010 (AUD) excl. GST

Mechanical Specs {height x width}

Yearbook advertising rates

www.franchise.net.au

Double page spread

image area: 245 x 380mm

trim: 275 x 410mm

bleed: 285 x 420mm

Full page

image area: 245 x 175mm

trim: 275 x 205mm

bleed: 285 x 215mm

Half double page spread

trim: 115 x 388mm (17mm gutter width)

Half page horizontal

trim: 115 x 177mm

Half page vertical

trim: 230 x 85mm

Third page horizontal

trim: 76 x 177mm

Third page vertical

trim: 230 x 55mm

1/6 A-Z listing

Please refer to StephanieGiannetto for specifications

Magazine sizes

Double Page $6,585Full Page $3,625Half Page $2,420Cover inside back cover $5,100Cover - outside back / inside front $6,115Specified Position Rate + 15%

NB: Advertising sizes for the Yearbook are the sameas Franchising magazine’s dimensions (see above)with the exception of ‘third page’ advertising.

Contact: David Strong 02 9422 2905 for pricingand availability of web inventory

FULL COLOUR CASUAL 3X 6X 12X

Double page spread $6,585 $5,985 $5,390 $5,005

Full page $3,625 $3,265 $3,015 $2,770

Half page $2,420 $2,070 $1,935 $1,815

Third page $1,870 $1,630 $1,405 $1,280

A-Z LISTINGS CASUAL 3X 6X 12X

1/6 Page $530 $500 $470 $440

PREFERRED POSITIONS

Cover inside back cover $5,100 Cover - outside back / inside Front $6,115 specified position rate +15%

OTHER OPTIONS POA

Publication deadlines

ISSUE NO. SALES MATERIAL ON SALE

JAN/FEB 10 24 NOV 09 01 DEC 09 04 JAN 10

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


“Advertising is imperative for every business. If someone makes the decision tocut down on advertising all he or she is doing is cutting the revenue stream. Aneconomic downturn is the time when you should promote, promote, promote. Anyspend is actually an investment in the business and future sales – I’m not evensure that advertising should be considered as an expense.”Steve Hansen, Chief Chook, Chooks Fresh & Tasty

Contacts

The largest business-to-business

publishing company in the world

Reed Business Information Pty Ltd

A division of Reed Business

ABN 80 132 719 861

National sales and marketing manager

David StrongT: 61 2 9422 2905F: 61 2 9422 8777M: 0411 366 656E: [email protected]

Editor

Sarah StoweT: 61 2 9422 8900F: 61 2 9422 8777E: [email protected]

Journalist

Danielle BowlingT: 61 2 9422 2667F: 61 2 9422 8777E: [email protected]

Production co-ordinator

Eryk CleghornT: 61 9422 2379F: 61 2 9422 2722E: [email protected]

Subscription inquiries

Customer serviceT:1300 360 126F: 61 2 9422 2633E: [email protected]

Publisher

David HovendenT: 61 2 9422 2274F: 61 2 9422 8777E: [email protected]

HEAD OFFICE

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O• We do not accept TrueType or CID fonts. Use Postscript fonts or create

an outline of the fonts.• All fonts must be embedded.• Type size must not be below 8 points, or 10 points for reversed type.• If supplying fonts please include all printer and screen fonts.

O• All material must use CMYK colour space.• Convert spot and PMS* colours to process colours.• Do not embed colour profiles.• Do not use colour patterns, duotones or tritones.• Black type should be process black only.• Total ink weight should not exceed 310% and allow for a 14-18% dot gain.

* Conversion of PMS may alter colours. Special PMS printing can be arranged atan additional cost.

O• CMYK• 300dpi at 100% print size.• Format - JPEG, EPS or TIFF.• Black & White Line Art - 2400dpi at 100% print size.

O• All transparencies must be flattened.• All live copy must be kept within the type area.• Bleed must be set to 5mm and must include trim marks.• Double page spreads must be supplied as 2 separate files (LHP and RHP)

with 5mm bleed.• Avoid running type across the gutter. For headings that need to run across

the gutter please allow a minimum of 1mm clearance on both sides. Allow3mm clearance on both sides of the gutter for Perfect Bound publications.

O• Quickcut by Adstream is the recommended method of supplying ad material.

To set up an account please call Quickcut on (02) 9467 7500 or visitwww.quickcut.com.au.

• Websend is another recommended method of supplying ad material. To set up an account please call Websend toll free on 1300 798 949 or visit www.websend.com.au.

• Email to relevant production coordinator. Maximum file size 10MB.• On CD or DVD. Address to relevant production coordinator. Material

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OFor accurate colour reproduction a full size 3DAPv3 PAPERTYPE 3 compliantproof must be provided. For details on how to create a 3DAPv3 proof andapproved proofing systems visit www.3dap.com.au.

OReed Business Information offers an in-house design service. Please contact therelevant production coordinator for further information.

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OReed Business Information cannot be held responsible for the reproduction ofmaterial that does not adhere to the specifications outlined within this documentor if material has been supplied late.

Updated July 2009

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All ads must be supplied as PDFs generated using the correct Acrobat Distiller settings. Reed Business Information provides Distiller settings to assist youin 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. Whencreating a PDF to go to print, export using the RBI distiller setting or print a postscript and distill using the RBI distiller setting.


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2010 Media Kit Feb 10