MYOB 2008 – Excellence in franchise awards

Award winning franchisees and franchisors, plenty of glamour and excitement: it can only be the MYOB 2008 Excellence in Franchising Awards. It was the night of nights: more than 450 people glammed up for the franchising sector's most prestigious event, the Franchise Council of Australia ’s awards, held this year at Sydney's Luna Park.

Following a champagne reception that spilled out into the warm spring air, guests enjoyed the glitzy gala dinner and awards presentation; the tables dressed with black sequins and dramatic peacock feather centrepieces.

Entertainment was provided by a scarlet-satin clad red-haired violinist who roamed the room playing the fiddle and who turned out to have a singing voice too.

Once the speeches and awards were over, drinks and music continued until nearly midnight, when the last revellers caught the ferry to Darling Harbour to carry on until the early hours at the after party.

So who were the winners in the 2008 MYOB Excellence in Franchising Awards?

MYOB Franchisor of the Year and Retail Franchisor of the Year - 7-Eleven

"I think we've got a great team between our staff and our franchisees," said Warren Wilmot, CEO. "All of them will appreciate this award. We still think there's so much opportunity for us. We're on that journey from good to great. We use the franchising model as a way to go to market, we focus on the customer." Franchisees with the convenience retailer come from 27 countries and this, he explained, brings diversity.

"We're very proud of our franchisees and their cultural diversity that brings a richness to our business. It's enriching, challenging and rewarding." 7-Eleven was not new to this accolade however, as the chain won this award in 1997, 20 years after launching in Australia. "We were good at retailing," said Wilmot "but in the last 11 years we've become quite good at franchising."

Across three states (New South Wales, Queensland and Victoria) the convenience retailer has 323 franchisees with 367 stores serving more than 77 million customers. The high presence of the brand has contributed greatly to customer awareness of the retailer.

This highly coveted title is awarded to one of the winners of the Service, Retail and Food franchisor categories.

The retail franchisor category was heavily contested; other nominations were: Autobarn, Battery World, Caltex, Gametraders, Hairhouse Warehouse, Howards Storage World, Minit Australia and Snap On Tools.

MYOB Service Franchisor of the Year - Hotondo Homes

Accepting the award Michael Renwick thanked the audience for the support received. "We're in the construction industry and we're pioneering what we do. Franchising is all about people and you can't do it on your own," he added.

The family-owned home building business has 111 franchisees across Australia's easterly and southern states, and has been offering franchises since 1993.

The franchising structure has allowed for greater brand awareness across the regions as well as economies of scale, offering the customer an effective system but through a local and personal experience.

To scoop this award, Hotondo Homes, which last year was given a Judges' Recognition Award, had to out-perform other nominees: ANZ, Fernwood Women's Health Clubs, Harvey World Travel, Mortgage Choice and Wizard Home Loans.

MYOB Food Franchisor of the Year - The Coffee Club

CEO Rod Wakefield accepted the award with a reflection on where the company stands now, 19 years after its inception. "Two hundred stores down the track, 21 stores in New Zealand, and we're about to open in Thailand. This year we will make about 45 million cups of coffee."

The Queensland-based franchisor, which invests in high level TV advertising and sports sponsorship, scooped the award from its fellow high profile nominees Boost Juice and Gloria Jean's Coffees.

MYOB Innovation Award - Gloria Jean's Coffees

Karli Furmage, global capability manager, told the audience: "Gloria, our online communication tool, has really changed the way we do business."

After the ceremony she explained to Franchising magazine the impact of the online development.

"It was introduced to address the needs of communicating with 35 countries, across time zones, and with 574 stores in Australia. We really want to build a community of best practice."

The solution was an online business tool with email access that has a library of individual tools and more than 6000 forums.

"We don't need to monitor them, there's quite a bit of self-regulation from franchisees who respond and solve problems," she explained. The company has just launched a notice function which gives update information at log in.

"Franchisees can focus on their emerging business," she says. Gloria has become a personality, Furmage admits, helped by a strong pre-launch hype, with staff running around in t-shirts and wearing funky wristbands. This online system is now global and is available in Spanish, German, Korean and Arabic.

To take this award, the coffee business had to scoop other nominees in this category: Australia Post, Crust Gourmet Pizza Bars, John Brennan Hair and Refund Home Loans.

MYOB Export of the Year - Ecowash Mobile

"Franchising is such an awesome business opportunity," said Jim Cornish, who thanked his partner Stewart Nicholls for his support and friendship over four and a half years. Nicholls added: "It's a credit that franchise systems can be applied to countries around the world. All our franchisees and masters always put in a large amount of work in the background, and Jim has spent many hours in planes getting the export up and running."

The success of the business has been focusing on two global trends, believes Cornish: environmental concerns and lifestyle. "The structure of overseas expansion has been joint ventures, and that helps us understand the cultures," he revealed to Franchising magazine. That the company will evolve is not in question; Cornish predicts this will be behind the scenes in terms of systems rather than product: "we're thinking from an efficiency point of view."

The award is great recognition for the franchisees, he adds. "It's not just us. Our franchisees are really proud of going global, it's not just going to another country." Ecowash has been established just four years. Other nominees in this category were: Cookie Man and Howards Storage World.

MYOB Media Campaign of the Year - Bakers Delight

Thanks to its commitment to the community, Bakers Delight has walked away from the awards night with the Media Campaign of the Year trophy for its Top Sports community engagement program.

The Top Sports campaign was entered as an example of an integrated marketing approach designed to make an impact at a local community level for Bakers Delight's 630 Australian franchisees.

Encompassing PR, online and print advertising and direct marketing the campaign was supported by Australian Basketball legend and father of three, Andrew Gaze, and generated more than 130,000 entries Australia-wide.

The award was presented for the inaugural schools campaign, which in April awarded 20 schools across Australia with cash grants of $5000 each.

Chris Caldwell, general manager of marketing and operational support for Bakers Delight said the success of the campaign demonstrated the increasing importance of community engagement and the impact of the 'triple bottom line'.

"As a franchise business it's important that we invest in programs which make a difference to our franchisees. The Top Sports program allowed each and every franchisee to make an impact within their local community," said Caldwell.

On the night, Kate Adamson, senior brand manager, collected the award, saying: "Our 630 bakeries really embraced the campaign and what it was supposed to be - engagement with the community."

Nominees in the Media Campaign of the year Award included Autobarn, Brazillian Beauty, Caltex Australia Limited, CHOOKS fresh & tasty, Hairhouse Warehouse, Hotondo Homes, Jim's Mowing and Mr Rental.

MYOB Emerging Franchising System of the Year - Mr Rental

The story of franchising at Mr Rental is the tale of how a well-known store developed to an international network of 57 stores in just seven years. Thanks to some rebranding 18 months ago and the launch of a TV advertising campaign across the country this year (Mr Rental was a nominee this year for the Media Campaign Award), more Australians are familiar with the franchise brand.

The system had already won the Queensland regional award; vying for the national trophy were NSW and ACT regional winner, Vision Personal Training, the Back In Motion Health Group, regional winner in Victoria and Tasmania, and Chooks Fresh & Tasty, the Western Australia regional winner.

MYOB Franchise Woman of the Year - Debra Shugg, Award Bookkeeping Company

"This is without doubt one of my most significant achievements," Shugg told the glamour audience. "I have never won a trophy in my life.

"I started with $36 I borrowed from my mother and my goal has been to help people and help them make changes in their lives. I'm privileged to be able to make changes in people's lives through franchising."

The founder and CEO of the decade-old business, Shugg has developed and implemented all the initiatives and established the Award Business Consulting franchise models, using her business accounting and management expertise.

To win this award, Debra Shugg has beaten some tough competition in the shape of Price Attack's multi-unit franchisee Ruth Swan, regional winner for NSW and ACT; Lyn Wicks, who has driven a successful mentoring program at PoolWerx, regional winner for Queensland and Northern Territory; Vicki Prout, the director of franchising services for Carbon Planet, South Australia's regional winner for three years running; and Linda Steele, the general manager of Chooks Fresh & Tasty and regional winner in Western Australia.

MYOB Supplier of the Year- Pacnet

The inaugural award for suppliers to the industry was won by telecommunications service provider Pacnet, which offers solutions for business of all sizes. An international concern, it has more than 1400 employees around the world.

MYOB Franchisee of the Year - Mark Maumill and Jason Love, Banjo's Corporation

Franchisees of the Year regional winners for Victoria and Tasmania, Maumill described receiving the award as a "fabulous honour". The pair made history as the first Tasmanians to take a national award at the FCA event.

Maumill started with Banjo's Corporation in 1984 in Launceston as an employee and is now "proud to be in three of the four states" that his company operates within.

"This is a great brand and a great team behind us," he said.

Business partner Love said he was impressed by the calibre of his fellow nominees in this category. "It's humbling to see how astute they are," he said.

Maumill admitted when he went into franchising his first goal was to join the corporate world but a change in focus saw him work with partners to establish a network of bakeries.

"We want to grow so we sat down and planned it all," he revealed. "Our turnover is now nine million."

His advice to new franchisees looking to emulate successful franchising? "You have to respect the system and want to be in and contribute to its growth. Our brands have been really growing.

"We've made a deliberate attempt to be involved with our franchisor in the Franchise Advisory Council and in research and development; we have a say in future directions."

Love, whose background is in banking, cites the pair's success as a focus on people. "If you embrace and engage, they give a lot back and give back to customers," he explains.

The pair now employ more than 170 people across their outlets in Tasmania, Victoria and Queensland.

So what's next? Love reveals the franchisees have recently engaged a business coach and have already seen changes in their business as a result and, adds Maumill: "We've done a lot of business planning. We know where we want to be in five to seven years."

Franchisee Regional Winners - Regional winner NSW/ACT

Tony Zoobi from Hairhouse Warehouse Paramatta, was an economics and marketing graduate, with some time spent in Dubai as an area manager before entering the franchising world. On returning to Australia he launched the first Brisbane franchise for Hairhouse Warehouse, then went on to hold a licence agreement for the Queensland state. Now he has the NSW licence and owns four stores in Sydney.

"I work out what I want to do personally and professionally. I have about 30 employees in four stores - my staff run my business. I spent about $50,000 last year on business and personal training. I like to network a lot, I call fellow franchisees a lot - that's the important reason to be in franchising. There is nothing better than talking to other franchisees and finding out what's working for them."

"You need to adapt quickly, to understand your business model and what's working, you need to understand stock control," he advised incoming franchisees. He believes new franchisees coming from other industries can suffer what he calls "disconnect" and can lose sight of their own responsibilities. "A lot of the time the onus is on the franchisee to correct themselves," he cautions.

"It was helpful to understand the business financials and understand money. If you don't understand the bottom line, talk to an accountant," he advises franchisee prospects.

Regional winner SA

For Karmen Wakelin and Kylie Leopold it was love that took them from Melbourne to Adelaide, and in franchising with Endota Spa they found the solution to their work and life balance. Now each is settled with a family, the pair of ex-corporates have achieved the control over their lives they were looking for, working just a few days each week.

The Rundle Street outlet was their first venture, opening in 2004. Today the central Adelaide franchise operates seven days a week, supported by a team of 15 therapists. Two years ago the state's first resort spa was opened by Wakelin and Leopold in the Barossa Valley.

Wakelin admits their business background helped them in setting up and running their own franchise.

"All the corporate skills have transferred to small business in the planning and the processes. We have a clear strategy for our first five years. We have maintained our friendship and our business partnership, and have great confidence in each other's skills."

The spa franchise has grown very rapidly, with Wakelin and Leopold at the vanguard of the operation as the first multi-unit owners in the system and poised to open their third outlet before Christmas. To move to the next stage the two women are looking at business coaching.

Regional winner WA

Bronwyn Butcher is Perth-based, representing the Frontline Recruitment Group across three streams - retail, hospitality, and banking and finance in Melbourne. After six years she is still passionate about the business and has overseen more than 400 per cent growth.

Butcher, who started her franchise career with a Grinners buffet and catering business, plans to continue adding to her portfolio.

For her the big challenge for any franchisee is the management of cash flow, something the franchisor in this case gives assistance with. "We get support in this with managers, we don't retrieve our own debts, head office does this."

Taking on constructive criticism and feedback is important for a franchisee, she believes, and in the relationship with the franchisor openness and honesty are the keys.

Also important is access to business skills.

"If you don't have someone with a business background around you, it's a good idea to get a business coach," she suggests. "I've had coaching and I’ve tried meditation. I've learned from my mistakes, and I've had to learn different communication skills."

Being regional winner was a surprise, Butcher admits, but a pleasant one. "It's six years of hard work and someone has really recognised it."

Regional winner Queensland

Also from Frontline Recruitment are Mark and Colleen Hart. They admitted to nerves before the gala event: "We're really excited, it's been fantastic for us as a business and as a brand."

Colleen was a state manager in retail before starting with the agency as a manager. She says: "I was tapped on the shoulder" to become a franchisee. Along with husband Mark, experienced in business to business sales and account management, she has been a franchisee for three years. At one stage with five agencies under their belts the couple has since sold the Brisbane and Cairns outlets.Echoing the major concern of franchisees - staff retention - the Harts are, like Butcher, particularly well placed to see the impact in the marketplace.

"We allow consultants to work from home, we provide a competitive remuneration package but the challenge is a glass ceiling. Providing strong career progression and training is critical," says Mark.

As is maintaining consistency of service, something that Colleen highlights as a challenge. "Clients have different service levels, we try to stay on top of this," she says. "What we do on a local level impacts nationally."

In the first year opportunities emerged but now she says the pair are a lot more strategic about their business.

As Mark reveals, keeping on track is important. "We're very clear in our objectives, especially when it comes to finance."

Successful franchising is all about dedication and hard work, admits Colleen. "It hasn't been draining, we just love the business so gave it everything and we've been able to reap the rewards."

This article appears courtesy of Franchising Magazine