Home' The Franchise Review : March 2015 Contents The Franchise review
On education and training...
what has been the most worthwhile investment into training in
the Gelatissimo network?
Our recruitment of a highly qualified training manager, as well
as the recruitment of a product training and development
manager. having these resources on board means that we are
able to provide our franchisees with great support and coaching
to help them achieve success.
Just cuts attended the recent international Franchise
association convention and usa study Tour. what major
learning did you bring back to australia?
Denis McFadden: Our biggest learning was seeing firsthand
that australia is a small market and that everything is scaled up
in the united states. For instance, if we had started Just cuts
in the united states 25 years ago, today, we would likely have
2000 units and a private jet (with our own pilot). The united
states has better finance options, which allows people with a
passion to be recognised and given the opportunity to follow
their goals. if lending options were better resourced in australia,
a lot more people could have their own businesses.
how do you use your international network to ensure australian
franchisees are at the forefront of training and development?
There are more than 4000 snap-on franchisees around the
world. as we are an internationally proven system, we have
a wealth of experience to draw on from both employees and
franchisees here and across the world. snap-on australia has a
dedicated Training Manager, and also uses training facilities in
the united states to support our franchisees.
On growth and the future...
where do you see Gelatissimo in five years’ time, and what
strategies do you have in place to reach these goals?
Our aim is to be the market leader in the gelato franchise
space. This includes the strong growth of the brand within
australia and internationally. To achieve this, we have a national
Franchise Development Manager, and we recently introduced
an international Franchise Development Manager.
Just cuts has just turned 25. what are Just cuts’ plans for
growth and expansion before its 30th birthday, and does this
include expansion beyond the australian and new Zealand
Amber Turnbull: Our 2015 strategy is centred on our vision
to achieve 200 operating salons and five per cent market
share. we have identified an additional 100 sites throughout
australia – these are opportunities for kiosks as stand-alone
salons or additional satellite sites for franchisees making the
transition into multi-site franchises. we have also identified
more regional shopping centres with less foot traffic, which
can support kiosk salons, as they have a lower entry point and
lower ongoing operational costs than a traditional salon. The
kiosk is a more financially viable and sustainable option for a
potential franchisee, with less capital buying-in at a lower initial
investment. with a fixed franchise fee, this is an opportunity for
a change of lifestyle with unlimited earning potential. Most Just
cuts franchisees go on to become multi-site owners, with each
currently owning approximately 2.4 salons.
in september 2014, we announced the expansion of our
focus to the global hairdressing industry, with expansion plans
into south-east asia, the Middle east, india, and the united
Kingdom. This is a natural progression for our franchise system
that has only been limited by geography to date.
what are snap-on Tools’ plans to grow its presence within the
australian market over the next five years, and how does this fit
within the broader international strategy for the business?
Over the next five years, our plans are to grow and expand our
franchise network by aligning our franchise list of calls with how
they are offered internationally.
The average tenure of a franchisee in australia and new
Zealand is 15 years, and this means we have to work closely
with our existing franchisees to implement any expansion
and development plans; for example, snap-on australia is
currently working with franchisees to highlight our multi-unit
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