COVER STORY

Inside Franchise Business presents the second in a series showcasing franchisees. In this edition we celebrate long-term franchisees who have notched up 12, 16, 20 or even 30 years in their franchise.

Showcasing franchisee success: nine longterm franchisees share their stories.

TODDAGIUS

FERGUSON PLARRE

15YEARS

When Todd Agius joined the Ferguson Plarre Bakehouse chain he was young and knew nothing about the historic brand. He didn’t step into the business full time for 12 months. In fact, he wasn’t even a franchisee.

“My wife started it up. At the time, it was leased through the company. We just paid an annual fee.”

After a while, Agius and his wife negotiated a franchise agreement and threw themselves into the bakery business. He was was only 23, but had a wealth of hospitality and customerservice experience.

“I didn’t know much about Ferguson Plarre, but I knew I could make it work with my communication skills.”

The bakery was in a growing Melbourne area with young families and a good community feel, he says, and locals are more inclined to spend money with a familiar face, which helped get the business off the ground.

“We were both full on. We had just one staff member help out over lunch time for four years. We were working weekdays, 60 to 65 hours, but we could alternate our shifts. Then we had a child and my wife stepped away from the business.”

His ambitions to expand the business took shape when a shopping centre opened at Craigieburn. Then, he signed up to a second franchise outlet.

“I was running both stores. It was difficult, juggling work and family, trying to be a father.”

The original store was set back in the process. “I dedicated my time to the new store. It was a greenfield site, and I probably neglected the older store for a bit.

“Occupany was projected to be 75 to 80 per cent but it was closer to 50 per cent at the time of the grand opening in 2013.”

The original store was sold in 2015. Today’s challenges are longer trading hours and penalty rates.

“I generally don’t work from 5pm on a Friday to 5am on a Monday, and some days I start at 5am and finish at midday; other times I’ll work until 6 or 7pm.”

But the balance, he says, is not so bad “when you have your own business that’s open every day of the year except two days”.

“I have full control of my business, of the payroll. I stay on top of it all, assess the numbers – I can summarise it fairly quickly.”

This is quite different from the early days of trading. “When I started out I knew nothing about franchising, expenses, profit and loss or bookkeeping. But I was willing to learn. I had faith.

“It’s all about getting the customer to come back, and when I had setbacks I believed I could turn it around into success.”

No doubt his can-do attitude has been fundamental to his success.

“I get to work early and have the first two hours to prepare by myself. I’m able to focus and channel all my energies into how to make it work and set a plan for the day.

“Hospitality was my calling – I get it from my dad, he’s a real people person. That’s why the day goes quickly. It flies by, talking to customers, getting to know people. I don’t always want to do it, but when the money starts coming in...you think, let’s keep doing it, let’s grow the business.”

As one of the longest-standing franchisees, Agius has found himself something of a sounding board for management. He is involved in a franchise development group that reviews products, and is often asked to share his perspective with prospective franchisees.

“I’m fairly transparent and so is the business. Steve Plarre [franchisor] always encourages me to be honest about the business to new franchisees.

“This is still a family business. There are 72 stores, but it still feels like a small family doing things better.”

The franchisor’s support has developed over the years, he says, with improved communications, regular business-manager visits, and a tightened-up audit process to ensure consistency across the network.

“I haven’t grown tired of the business, I’ve not outgrown it. I’m not looking to move away from this – I could do this for the rest of my life.

“I consider myself a franchisee for life.”

“I haven’t grown tired of the business, I’ve not outgrown it. I’m not looking to move away from this – I could do this for the rest of my life.

“I couldn’t walk away. If I did anything else it would be second best.

CHRIS EDWARDS

SNAP-ON

27 YEARS

After 27 years in the mobile tool retail franchise Snap-on, Chris Edwards hasn’t looked back. “I was buying the product as an employee. I was in the trade and was excited by it. I’d always been interested in sales and was really attracted to selling a quality product. It was something I believed. It was just logical – I’d be working for myself and working in sales.”

He and his wife took on the franchise together, relocating from Perth to Bunbury where Snap-on was not known.

“Small business is always a challenge,” he says. “But I was young and had blind enthusiasm. A lot of people asked if I would go broke, but I never thought about it.”

Quite the reverse in fact. Edwards has shown his business smarts; he’s a member of the Snap-on Million Dollar Club, a select group of franchisees bringing in turnover of more than $1m. Not bad for a mobile set-up!

In almost 30 years, technology has had a major impact on the Snap-on world. While the day-to-day routine of visiting mechanics at their workplaces is still the method of doing business, Edwards says he has seen massive changes within the automotive industry, most significantly the introduction of multiple computers into single vehicles.

Providing the right tools for a mechanic to do their job is essential, which is where Snap-on’s R&D is crucial to business success. “There’s no doubt the company is a world leader in diagnostics,” says Edwards. This makes it an attractive proposition to both franchisees and customers.

It is not uncommon for him to be on the road servicing customers for up to 10 hours a day, then at the weekend he is washing and restocking the truck. “I work long days but I enjoy it,” he says.

“We have a break of seven to 10 days mid-year and two weeks at Christmas because most of our businesses are closed then,” says Edwards.

“When I started, if you had told me I would still be here in 27 years I wouldn’t have believed you. After six months I thought I had saturated the market, that I couldn’t possibly sell any more product. I misled myself.

“It keeps going. There are innovations, new products, new demands. As long as you can keep abreast, and keep up your service and enthusiasm, you can work a lot.

“I think for anyone in business it’s about being self-sufficient and successful. If you really, really enjoy it, why retire?”

Self-motivation has to play a significant role in continued success, particularly over nearly three decades. So what is different now in how Edwards stays focused?

“You have to reinvent yourself and your enthusiasm for what you do. Back at the beginning there is the pressure to reach targets, to break even, so you stress.”

Staying on top of the job is fundamental, and that means investing in the business as well. Tired, worn-out trucks do not present the right image to customers, so Edwards has invested in updating his trucks over the years. “Business is all about image,” he says.

It helps if the franchisor is also investing in the brand’s development and presence.

“In 27 years I have never seen another brand with a similar number of products spread across an array of industries. No other manufacturer, supplier or equipment company comes near.

“There is loyalty to the brand, and the company’s loyalty to the franchisee. We have a strong bond, company, dealer and customer.

“I couldn’t walk away. If I did anything else it would be second best.”