Inside Franchise Business - - Global Eye -

In­side Fran­chise Busi­ness looks at the trends for mo­bile busi­nesses, fit­ness, and beauty which are de­liv­er­ing what today's Aus­tralian cus­tomers want.


Mo­bile ser­vices are a cur­rent trend in the fran­chise sec­tor.

“From a mar­ket per­spec­tive, mo­bile fran­chises are less in­vest­ment than a tra­di­tional food court or fast food busi­ness. So, it ap­peals to a wider de­mo­graphic,” Ja­son Daniels, part­ner, busi­ness ser­vices, BDO, wrote in a re­cent blog.

“One of the big­gest chal­lenges with a bricks and mor­tar fran­chise is that trends change, and mo­bile ser­vices can re­spond to them better.”

Food trucks have emerged as a trendy al­ter­na­tive to larger food restau­rants.

The big­gest shift is said to come from mil­len­ni­als. It’s no longer seen as ‘off putting’ to buy food from a truck as the food is usu­ally of a high qual­ity. Hav­ing a mo­bile busi­ness means fran­chisees can take their busi­ness to the con­sumer.

Con­ve­nience is at the heart of the de­liv­ery/mo­bile trend, which is a global phe­nom­e­non.

It’s a trend that spy store chain OzSpy has picked up on – the re­tailer with the coolest gad­gets has shifted its busi­ness model to open up a mo­bile op­tion. Now fran­chisees can fo­cus on pro­vid­ing an ex­pert on-site ser­vice for what ac­counts for the bulk of the busi­ness, CCTV in­stal­la­tion.

Ser­vice fran­chises on the go have come into their own. With con­stantly con­nected con­sumers, many of whom work flex­i­ble hours, the tra­di­tional mo­bile busi­nesses such as dog groom­ing ser­vices, car de­tail­ing and lawn mow­ing, are now right on trend.

Blue Wheel­ers, for ex­am­ple, is a mo­bile wash, clip, and groom ser­vice that trav­els to client’s homes. Fran­chisees have the flex­i­bil­ity to choose their own time and clients don’t have to worry about the lo­gis­tics of get­ting their dogs to the groomers.

For re­tail op­er­a­tions, go­ing mo­bile means fran­chisees can also avoid the high rental costs com­mon in today’s re­tail arena and can in­vest in a low-cost fran­chise op­tion


Two brands, Any­time Fit­ness and Jetts, were in­stru­men­tal in de­vel­op­ing this sec­tor in Aus­tralia. The con­ve­nient, 24-hour fit­ness club fran­chise with ac­cess to a wide va­ri­ety of high qual­ity car­dio, strength and free weight equip­ment is now a stan­dard. The gyms es­pe­cially fit the life­style of fast-paced mil­len­ni­als who thrive on flex­i­bil­ity and con­ve­nience.

Ac­cord­ing to IBISWorld the fit­ness mar­ket as a whole will grow at 1.5 per cent till 2022.

US pub­li­ca­tion Entrepreneur re­ports “The US mar­ket cur­rently brings in about $31 bil­lion an­nu­ally and around one in 10 of those dol­lars comes through a fran­chise, but in re­cent years, fran­chise growth has out­paced the over­all in­dus­try.”

In­sta­gram has also played a part in the suc­cess of 24 hour gyms as peo­ple en­joy be­ing ‘in­sta-fit’ and show­ing off their 5 am mus­cles be­fore start­ing their day.


Today there is a trend for niche, per­son­alised op­tions that de­liver both con­ve­nience and re­sults. New fit­ness mod­els are pro­vid­ing per­sonal train­ers, Pi­lates and yoga in­struc­tors, with new busi­ness op­por­tu­ni­ties.

The fit­ness in­dus­try is see­ing trends such as cus­tom built gyms and spe­cial­ity fit­ness train­ing, which is start­ing to build mo­men­tum in the fran­chise sec­tor. Spe­cial­ity fit­ness is all the rage right now and box­ing and kick­box­ing fran­chises are gain­ing a ‘cult fol­low­ing’.

Specialty fit­ness pro­grams fo­cus on a par­tic­u­lar style of ex­er­cise, piece of equip­ment and some­times even a philo­soph­i­cal ap­proach. This is start­ing to ex­plode in the US and it prob­a­bly won’t be long till Aus­tralia starts fol­low­ing suit. Cur­rently in the US there is even a gym

that is fo­cused on rodeo train­ing!

In Aus­tralia the Col­lec­tive Well­ness Group, which runs Any­time Fit­ness, has opened Orangeth­e­ory Fit­ness and just ac­quired Xtend Barre, a Pi­lates-based fran­chise of­fer­ing a multi-stu­dio bal­let barre work­out pro­gram. Xtend Barre ex­pects to grow to 80 stu­dios or more in the next five years.

Turn to page 32 to read about some new and up­com­ing fit­ness brands.


Well­be­ing, re­sults-driven beauty treat­ments and cos­met­ics are fo­cal points in the beauty sec­tor.

In the US 7‑Eleven is broad­en­ing its prod­uct of­fer with the launch of an af­ford­able range of cos­met­ics, Sim­ply Me Beauty. The con­ve­nience fran­chise plans to gain mar­ket share in this multi-bil­lion dol­lar in­dus­try com­pet­ing with drug stores and su­per­mar­kets which have 30 per­cent of the mar­ket.

In Aus­tralia phar­macy chains are keep­ing ahead of the trends.

A new big box phar­macy brand that fo­cuses on de­liv­er­ing a holis­tic ap­proach to health­care and healthy liv­ing is the re­sult of an ini­tia­tive link­ing the phar­macy group Dis­count Drug Stores and two Cairns phar­ma­cists.

Whole­health Dis­count Drug Store and Health­foods was founded by broth­ers and phar­ma­cists Frank and Vince Pap­palardo. Frank Pap­palardo says the aim is to de­liver a sought af­ter re­tail ex­pe­ri­ence to the com­mu­nity as con­sumers shift to­ward liv­ing health­ier life­styles.

The new model fo­cuses on de­liv­er­ing a holis­tic ap­proach to health­care in or­der to im­prove pa­tient out­comes, life­style and well­be­ing, by of­fer­ing ex­pert health ad­vice and pro­fes­sional ser­vices along­side the coun­try’s widest and most af­ford­able range of or­ganic and nat­u­ral prod­ucts across nutri­tion, health foods, skin­care and beauty.

The big­ger for­mat model, which en­sures all new stores oc­cupy a min­i­mum of 500 sqm, will al­low the Dis­count Drug Stores brand to ex­pand into stand­alone and des­ti­na­tion re­tail sites.

At a niche level, fran­chised beauty chain en­dota spa has taken its branding to the next level, an­nounc­ing beauty and well­be­ing am­bas­sador part­ner­ships with stylists Sheree Com­mer­ford and Si­bella Court and makeup artist Teneille Sor­gio­vanni, and re­veal­ing its lat­est re­sults-based prod­uct range.

In Jan­uary the chain of 100 spas will in­tro­duce a new anti-age­ing range of 24 prod­ucts de­signed to meet cus­tomer de­mands for re­sults-based treat­ments. The prod­ucts are de­signed to work in con­junc­tion with en­dota spa’s cur­rent anti-age­ing treat­ments in spa which of­fer a su­per­charged fa­cial ex­pe­ri­ence, with take home prod­ucts to main­tain re­sults.

Founded in 2000, the en­dota spa chain today em­ploys more than 1000 peo­ple; 90 per cent of them women, and it has had more than 120 suc­cess­ful fran­chisees.

Read about one phe­nom­e­nally suc­cess­ful fran­chisee who has nine en­dota spa out­lets in our fea­ture about multi-unit fran­chisees on page 50.

And for Aus­tralian Skin Clin­ics, the move into West­ern Aus­tralia with the open­ing of its Man­durah out­let is the first step out­side the east coast.

Aus­tralian Skin Clin­ics’ CEO, Kevin Waite, said the com­pany’s ex­pan­sion into West­ern Aus­tralia is the re­sult of a grow­ing de­mand for medi-aes­thet­ics in the state.

“Our fo­cus is to em­power our clients to look and feel fan­tas­tic by of­fer­ing af­ford­able, ac­ces­si­ble and re­sults driven cosmetic treat­ments in high qual­ity fa­cil­i­ties, de­liv­ered by ex­pe­ri­enced, qual­i­fied and highly trained team mem­bers.”

Our fo­cus is to em­power our clients.

Xtend Barre


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