Inside Franchise Business - - Contents -

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…


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.


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.


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.


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.

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