Adventurous franchise buyers are in luck right now.
There is always a buzz around a fledgling business model, and for franchise buyers keen to buy into an emerging business there are new concepts on the board.
We look at few new franchise opportunities, embracing fitness and food…
ORANGE THEORY FITNESS
The company behind Anytime Fitness in Australia has launched a studio-based fitness franchise brand. The Orange Theory Fitness concept delivers individual fitness within a group environment: members will do a fitness session that splits into two groups to maintain heart rates alongside other routines.
Each fitness class changes routines daily in step with what its studios are doing around the globe.
Arthur McColl, CEO of the parent company Collective Wellness Group (CWG), which also includes the Massage Envy chain, says the new brand offers a different service to the 24/7 gym model.
“At Orange Theory, instructors arrive 15 minutes early to ensure that everyone joining the class feels welcome. There’s a huge element of customer service.”
Confident both CWG fitness brands can sit side by side, McColl says he didn’t want the brand to cannibalise existing business. “I have data to show the two could cohabit.
“We’ve just opened the first Orange Theory in Canberra, and it was profitable on day one.” Its studio is just a few hundred metres from the largest Anytime Fitness gym in Australia.
The two brands appeal to franchisees looking for different management techniques, says McColl, and while there will be a big crossover of existing Anytime franchisees looking to take on the Orange Theory brand, he promises a stringent selection process.
There is a distinct membership split across the two chains: Anytime has a predominantly male clientele and a $60 to $70 monthly membership; Orange Theory is popular with women who can buy a $235 premium membership, a package of sessions, or pay as they go.
Originating in the US and established in 10 countries, the brand was previously under a different master franchise in Australia but did not scale beyond three outlets. Under CWG, 40 Orange Theory franchise units have already been sold.
“I hope potential franchisees will have confidence in the brand itself, and also see the benefits of being part of a bigger business with all the infrastructure,” says McColl. CWG works on a shared-services basis across all brands.
“I’d like franchise buyers to walk into any franchise and ask what they think of head office,” he says.
Orange Theory units need to be highly visible, and finding the appropriate properties will be a challenge, says McColl. “We have a very tight demographic. We need affluent suburbs with disposable income.”
Franchise buyers can expect a
Adventurous franchise buyers are in luck right now as ever more business opportunities open
up. Options range from fitness to food.
business to cost about $400,000.
HARRY’S SCHNITZEL JOINT
Fast-food franchise Harry’s Schnitzel Joint is growing beyond its Newcastle roots, with local and interstate sites up for grabs.
Inside Franchise Business s peaks t o founder Harry James to find out more...
The expansion strategy this year includes targeting sites within the New South Wales Central Coast and Western Sydney region. We plan to get our network up to the 10-store mark, surround ourselves with the right expertise across all elements of the business and gain as much feedback as possible from our partners, then re-evaluate if necessary before continuing the journey.
We have our fourth store opening in June, will launch two more outlets in the Central Coast and Western Sydney, and establish our third franchisee store by the end of the year. That will take our store count to seven.
Initiatives are in the works to drive our franchise to even greater heights next year, so we’ll be out there meeting and greeting prospective franchisees and looking at new locations - quite possibly Melbourne and Brisbane.
Greenfield or newly established sites, depending on the size and type of store, will range from $300,000 to $450,000, and that’s for an all-inclusive turn-key operation. The support you will receive from Harry’s head office will be extensive, interactive and effective, and will be maintained throughout the franchise partnership - that’s the promise we make.
Franchising is our preferred way to go from now on. It’s a win-win for all, and we love working with enthusiastic business owners who share the Harry’s vision and passion.
5 THINGS THAT ARE NEW AT HARRY'S
1. It has taken us the better part of 18
months and a whole lot of investment, but thankfully the Harry's Schnitzel Joint franchisee operations and training manual is ready for storewide launch. Lots of time and heaps of sweat have gone into this, and we're sure it will be in a constant state of refining and adding components, but it's well worth it, especially for our new franchisees.
2. As we prepare for the market beyond Newcastle, we have introduced and upgraded our range of sauces with a few recipes that will be found only at Harry’s.
3. We have spent a fair bit of time working on our store layouts. The strategy is to become more efficient and keep down labour costs. We are implementing this design at the Thornton site in Newcastle.
4. We're always looking to create a better, more convenient customer experience, so we have invested heavily in upgrading our in-store technology, especially at point of sale. I promise you we will turn heads and lead by example. Considering we live
in a world of experiences, we've made it our mission to introduce best-ofbreed technology that allows Harry’s to p rovide t he b est s ystems a t t he right cost for our franchisees.
5. With all the news on wage disputes, we have taken it upon ourselves at Harry’s to make sure we have that right for now and for the future. For the past year we have been working with a company that provides rostering, payroll and HR services at an individual store level, which is also integrated into our POS system. This allows for a reporting link back to Harry’s head office. It’s the best way to ensure we always have things right by our employees.
THE FUNKY MEXICAN CANTINA
After four years trialling the concept, a new Mexican franchise is launching. The Funky Mexican Cantina aims to provide a full-service, full-flavour experience restaurant, and it starts with head chef Ariel.
“I was born in Tequisquiapan, Queretaro, Mexico,” he says. “When I was a child, my mother would hold large family gatherings and cook everything from scratch. I spent many hours in the kitchen with her and Nana expanding my knowledge of traditional Mexican cuisine. Their teachings continue to have a major influence on me.”
From eight years old, Ariel worked in his uncle’s restaurant. He continued his career at exclusive restaurants and hotels before arriving in Australia 11 years ago.
Behind the casual-dining concept is Hog’s Australia, which sees the second brand as a valuable addition. “About five years ago we were looking at ways to continue to evolve the company, and looked at the food trends,” says CEO Ross Worth.
A visit t o t he US c onfirmed the direction Hog’s would take, and once Worth was back in Australia the business started working with its head-office landlord to find a neighbouring space for a restaurant.
W ith A riel o n b oard, t he b usiness opened its first venue, next door to the Hog's Breath Cafe in Cleveland, Brisbane, and tested the menu on head-office staff members. Four years on, the business is ready for franchising.
Flavour profiles are important, says Worth, and with Ariel using a pestle and mortar to grind spices, some of his family recipes have been toned down to suit local tastes.
“At Funky’s you can expect carefully crafted, authentic Mexican cuisine developed to suit the Australian palate. Our menu is based on traditional recipes and ingredients, combined with a fresh and healthy approach,” says Ariel.
Dishes include tacos, enchiladas, chimichangas, burritos and chorizo burgers.
Existing Hog’s franchisees keen to embrace the new initiative and take on a second brand will be first in line to invest in The Funky Mexican, but opportunities to join the network will be available to the public.
The first two franchise outlets will open in Perth with a Hog’s Breath Cafe franchisee at the helm.