Wave of new franchise sytems unveiled at Sydney expo but recruitment remains tough

A host of Australian and US franchises were unveiled at a Sydney franchising expo, despite experienced franchisors suggesting conditions remain tough for franchise recruitment.

The Sydney Franchising and Business Opportunities Expo, held last weekend, attracted a wave of new Australian franchises including mobile catering business Pizza Event and Sergio’s Cake Shop.

Other new franchise brands included The Music Bus, a mobile studio that visits schools, and kids’ educational program Eureka Multimedia.

Established in 1999, Eureka Multimedia is the brainchild of managing director Tony Alevras, and now has more than 100 software titles across a range of categories including mathematics, literacy and games.

Alevras says the software has been sold through major retailers, but adopting a territory-based franchising model means a new face-to-face selling approach will allow for more informed purchasing.

He says while franchisees must be motivated, he also highlights the benefits of the work-as-you-please model, stating: “This would suit mums at home wanting flexible hours.”

Other new franchising opportunities were presented at the expo in the form of party plan and online wine cellar The Butcher’s Table, and window coverings showroom business Luxaflex.

Fitness franchise Muscle Beach, which supplies sports and nutritional supplements, is also new to franchising after 18 years of trading in the Australian market.

Muscle Beach founder and chief executive Michael Clunne says Australia’s booming health and fitness industry is worth around $100 million a year in turnover.

“Our franchisees will not only enjoy an opportunity for high financial success but also enjoy a healthy work/life balance,” Clunne says.

Clunne says prospective franchisees must be passionate and energetic, with a genuine interest in the industry.

Several US brands were also launched at the expo, including Mr Sandless, a mobile floor service that uses a sand-free method to treat and seal floorboards, engineered wood, ceramic tiles and laminates.

Another new US franchise was Kooler Ice, a large-scale vending machine that serves up takeaway bags of ice.

However, experienced franchisors say the market for franchise recruitment remains tough.

John O’Brein, founder of Poolwerx, recently told SmartCompany that “franchise candidates are at the lowest ebb probably in 20 years in Australian history” while Jim Cornish, founder of car washing franchise Nanotek (formerly known as Ecowash Mobile) says that recruitment has been “ridiculously quiet for probably a year and a half, almost two years” and is only starting to pick up.

“It’s starting to pick up and the ones that are coming through, it’s the same as at the beginning of any cycle, it’s the more entrepreneurial. It’s the guys who’ve been watching and waiting. The ones that we’re getting through have been checking us out for a year or two years.”
Meanwhile, the FCA is at loggerheads with fast food king Jack Cowin over proposed franchise laws in WA.

Cowin, who runs Competitive Foods, which owns Hungry Jack’s, told a WA Parliamentary inquiry yesterday that strengthening WA’s franchising laws in favour of individual business owners will set a welcome national precedent.

The inquiry is examining proposed laws introduced as a private member’s bill last year by Liberal MP Peter Abetz in a bid to protect franchisees from “rogue” franchisors.

The FCA has slammed the bill, arguing the laws will undermine franchisors’ ability to get rid of bad operators.

This article first appeared on StartupSmart, Australia’s top site for entrepreneurs starting a business.