Brothers in Arms

Two franchise businesses are proving that rules are made to be broken. Hairhouse Warehouse and Trios have not just ignored the 'don't work with family' adage but have actively built the family spirit into their companies.

Good ideas are usually simple and not always planned. Spotting the opportunity at the right time is essential to starting up a good business, as the Melbourne-based Lattouf brothers, Tony and Joseph, can testify. Tony Lattouf explains: "Recognising the need for a combined retail store and salon like Hairhouse Warehouse was accidental, but we put a strategy in place to make the concept work. I recognised there was a gap in the market while my brother Joseph and I were running a successful silver service hairdresser, 'Lattouf International'.

"We both grew up in a family business and it is always something that has been important to us. Joseph is a very talented hairdresser, and I have a background in retail so it was a perfect mix."

But the brothers learned early that giving clients that little bit extra - a cappuccino while they had their hair styled and providing advice on professional hair care products - might be appreciated but it didn't equate to customers buying product.

"They would buy them somewhere else because the professionalism of the hairdresser made them perceive our products as too expensive," reveals Tony.

"This is when I recognised the need for a business that offers customers professional products at affordable prices and which covered all aspects of hair and beauty, including a hair salon, waxing, nails, piercing and spray tanning - all under the one roof."

So Hairhouse Warehouse hairdressing franchise was born.

And the result has been satisfying, admits Tony. "After years of hard work, dedication, and strategy implementation, I have achieved my goals, filled that gap, and taken the Hairhouse Warehouse brand Australia wide."

It has taken time and dedication, and hasn't always been easy.

"Being partners with my brother Joseph for 21 years has been a challenge, but a good one. I find comfort in saying that we have managed to keep our work and personal lives separate which has allowed us to maintain a close and healthy relationship. Like I said, we both grew up in a family business and it is always something that has been important to us. We have a lifetime of understanding between us, so we know how each other thinks.

"My parents always taught us that family comes first and that we're one team. My brother Joseph and I have been a strong team and because of our close family upbringing we've adopted the same mentality and applied it to our business. Hairhouse Warehouse is like one big family which makes the environment a very happy and positive one to work in."

Family values

However, for both families, who share a background, cultural heritage has played a strong part in their business success.

Sam Elia of Trios healthy fast food franchise explains. "As first generation Lebanese migrants the purpose of migrating was to create a dream, a future for your family; this continued ideology is the drive to succeed and contribute to the greater multicultural Australia, More importantly, being instructional and being actively involved on steering committees in planning the building of our first ever church in Thombury, Melbourne, an old care hostel facility and a community centre bringing all young and old Lebanese families together."

The Lattouf brothers have a religious foundation too. "This background has taught me many lessons that I apply to my company such as respect, perseverance, and treating others the way you'd like to be treated," reveals Tony.

"My definition of family values comes down to respect, honesty and recognition. In terms of the Hairhouse Warehouse family, it's about standing by your people and believing in them. You must recognise the good in people and reward and motivate them so they remain determined and positive. This provides the foundation for further success.

"Maintaining a close and friendly environment within our company helps to make the work more enjoyable for all of us. Whether you're in our central support team or a franchisee or salon staff member, enjoying the work you do is essential in order to stay motivated and to succeed."

The Trios business has been operating for more than 20 years and has grown out of necessity and strategy, says Sam Elia, middle brother and chief marketing director with a history in food retailing and restaurants. Sharing a meal with family and friends was an integral part of the brother's upbringing and the common denominator was always laffe flatbread. As CEO of the Elia Group and the eldest brother, Elias is responsible for the menu of laffe wraps, oven-baked spuds and crunchy salads; he had extensive experience in franchising as a manager for Airport Doors and now manages the Elia Group's portfolio of companies including Trisand and ESD property management, as well as a number of other restaurants.

David is the youngest of the three brothers. As managing director his role is to create the vision, develop the structure and recruit the key consultants and advisors that will assist the company to fulfil its mission. He values the importance of family working together and ensures that the decisions affecting the company are always made three ways.

Sam is in no doubt that the business has benefited from this strong family unit and continues to benefit by operating within the same core values that keep family together: honesty, support, generosity and hard work.

"These are the cornerstones to a strong family unit, likewise across franchisees. Franchising succeeds on the basis of the franchise system sharing mutual goals, success and benefit.

"For instance the ability to operate with complete understanding that all the brothers work as one, there is no sense of jealousy or greed. The confidence that when things get tough, you have support to see you through and when things are going great, likewise.

"The philosophy that giving is greater than receiving is certainly true in this family and certainly evident between us. And of course there is hard work: no timesheets and a burning passion for success. The saying 'If you want something done, give it to a busy person and it will get done' applies here."

Yet it isn't always a smooth ride. "We would not be human if there was never a conflict," he admits. But having a common vision and goal without any greed or selfishness ensures conflicts are short lived.

To keep business at work and not take it with you during family gatherings is the greatest challenge for the Trios brothers.

A vital element of a franchisee's success is often cited as the support of family and friends, particularly through the difficult stage of business building. Yet it isn't any different for the franchisor, says Sam,

"Originally financial support from parents laid the foundation to the business; but the continued support and understanding of partners and children is critical toward continued success over a longer period."

Tony Lattouf agrees.

"I've had an enormous amount of support from my wife who's raised our five beautiful children and has always stood by me through the good days and bad, always understanding the importance of my work and believing in me. My parents and immediate family believed in me which allowed me to work with a positive attitude. The few people who doubted what I was doing made me try to work harder to prove that I could do it - and I did.

"The greatest challenge is definitely not being able to spend as much time with my wife and children as I would like, but this can happen in any industry. Thankfully my family loves the industry I am in, works in it with me, and love being a part of it."

Succession planning is always an issue, but never more so than with a family business. As the next generation moves in, what plans are there for business growth and will the business be driven by family members? The Lattouf's plan international growth and hope to one day pass on the company to their children, "to keep the family legacy alive", says Tony.

The next Elia generation could be involved in this growing business agrees Sam, but with a caveat. "The business certainly has the opportunity to involve the next generation but only on the basis that they are capable and share the passion to continue growing the business."

Elia Brothers’ best 10 tips for success

1. Treat staff as assets not liabilities
2. Have mentors and take on business coaches.
3. Employ people that are smarter than you and learn from people in your team.
4. Network, network, network - to realise great potential opportunities.
5. Make time for family and friends.
6. Don't be afraid to take risks.
7. Have fun while working.
8. Pay for good advice.
9. Be passionate and forward thinking.
10. Put back into our communities for future generations.

This article appears in the Franchising Articles listing courtesy of Franchising Magazine