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Brands to watch in 2017: part 2

Sarah Stowe

In part two of this three-part series, Inside Franchise Business presents newer brands to keep an eye out for this year. 

Peak Physique Hot Yoga

Brand snapshot: Established five years ago and franchising for 18 months, Peak Physique is a hot-yoga studio committed to offering classes to Australians. The franchise offers a work/life balance through its 23-hour working week, together with low risk.

The model: The initial investment is $70,000 and includes fit-out, help with lease negotiations and business training. Franchisees receive mentoring and coaching, as well as access to Yoga Alliance Australia certified teacher training.

Expansion plans: The brand will be opening 20 studios throughout Australia, including regional areas.

Interested in Peak Physique Hot Yoga? Find out more about the brand.

Diaco’s Garden Nursery

Brand snapshot: Diaco’s Garden Nursery is a family business with humble beginnings as vegetable market stalls in 1949. The first outlet opened in 2000, and there are now three family-owned locations in Victoria with Geelong’s first franchise opening this year.

The model: The establishment costs for a franchise start from $450,000, depending on the business format. There are two options: a bulk yard or a nursery. Ongoing fees include a 2 per cent marketing-fund contribution and 8 per cent royalty fees. Typically, the business model will provide a return in two and a half to three and a half years.

Expansion plans: An estimated 10 new locations are expected in Victoria in the next three to five years.

Like the sound of a retail franchise? Browse the category.

Little L

Brand snapshot: Little L started as a family business in Sydney’s Bondi community in 2008 with the aim of making the best chicken burgers.

The model: To establish a Little L franchise, investment begins at $300,000 with a five-year agreement with an option to renew. The investment includes initial training, store design and help with site and lease negotiation. New franchisees will also receive marketing and administrative support. There is a 2 per cent marketing levy, and ann ongoing 7 per cent royalty fee.

Expansion plans: The business aims to increase its franchise locations in Sydney to five next year, with inner-city locations already in the pipeline.

Want to know more about the burger category? Check out the major brands.

HR Dept

Brand background: HR Dept offers practical HR and employment services for the SME community. It was set up in the UK by Sue Tumelty in 2002, and after franchising in 2005 had 13 franchisees within a year. There are now 63 franchisees in the UK and Ireland, running 85 territories, and the brand has just landed in Australia.

The model: Rather than act as consultants, franchisees work as an SME’s entire HR department, providing everything an in-house HR team would in a large business. The initial investment for the Australian market is likely to be $35,000 to $45,000, and includes training, business coaching, and marketing and sales support, as well as unlimited HR, employment law and business advice.

Expansion plans: Just launched in Australia, the group hopes to recruit between five and 10 franchisees in its first 12 months.

Want to learn more about the advisory services space? Find out more about the category.