What is the role of Head Office?
The Franchise Network is supported through an Administration Office. The key objective of the Head office is to ensure the profitability of the franchises. This is achieved through the provision of recruitment support services and business development guidance to franchise owners.
The key functions of the franchisor are listed below and all are conducted in accordance with prescribed policy and procedure:
• Selling franchises
• Provision of operational support to new franchisees including initial orientation training and on site mentoring and assistance with recruiting of staff
• Approve premises for franchisees
• Provision of mentoring support to existing franchisees, conducting weekly KPI’s with all franchisees
• All aspects of invoicing, collection and banking
• Remitting payments to franchisees
• Organising four franchisee meetings each year, one of these being an Annual Sales Conference for all team members in the region in July (this conference includes an Awards ceremony recognising the achievements of Frontline Recruitment Group staff over the previous twelve months)
• Conducting two on site visits to franchisees each year for the purpose of auditing recruitment processes and service levels
• Conducting annual business development reviews and planning sessions with individual franchise owners
• Writing and distributing a monthly newsletter to all clients listed on the database
• The development and delivery of approved staff training programmes
• Promotion of internal communication both formal and informal
• Publishing of monthly internal newsletters
• Provision of incentive prizes to consultants
• Conducting annual surveys
• Securing publication of surveys and articles in trade journals and the media.
• Coordinating a promotional series within the regions (E.g. breakfast series)
• Coordinating the advertising fund expenditure for the regions
• Ensuring implementation of policy and procedure
• Coordination of auditing actions
• Assisting in accounts that require a strategic relationship
• Overseeing the pricing integrity of the region
• Conducting negotiations with suppliers to the region
• Handling escalated client and candidate complaints
• Overseeing the operation of and development of a database and website
• Overseeing the operation of central servers supporting a remote office network
• Authorisation of any materials that include the Frontline Recruitment Group Trademark and Logo
How do I establish a franchise?
As a franchise owner, before you begin operating you will be required to source and furnish a suitable office, install technology systems and data line facilities.
All franchises share in the cost (both rental and maintenance) of centralised Servers, which administers users, the database, applications, data backup, and mail functions for all franchises. The cost is determined monthly on a pro rata basis of licence usage (number of users) on the Servers.
Is training provided?
The purchaser of a Frontline Recruitment Group franchise is required to spend three days in training in the Head Office located in Sydney, Australia prior to the opening of the Agency. The agency owner’s training will expose the purchaser to all aspects of both running a franchise and conducting the business of Frontline Recruitment Group. The cost of this visit (e.g. travel and accommodation) will be borne by the new franchise owner.
The new franchisee will then receive further “on the job” training in their new office for four days with the Training and Business Development Manager who will be assisting in all aspects of the set-up of the business.
Additionally the new franchisee will then receive further “on the job” training via dedicated phone support on a daily basis until they have demonstrated the ability to achieve KPI’s in accordance with the Frontline Recruitment Group system, then ongoing phone support as detailed in policy and procedures but no less than twice weekly contact.
The franchisee will also be required to attend a two-day consultant induction course, at the Head Office, within the first six months of opening the business. This course will enable the franchisee to solidify the skills that they would have already learnt through working in the business, as well as providing the opportunity to receive further training. The cost of this visit (e.g. travel and accommodation) will be borne by the franchisee.
The franchise owner will receive a subsequent visit from a Frontline Recruitment Group executive two months later to audit all processes within the franchise and again assist in any aspect of business development required at that time.
After this, the franchise owner will receive regular visits (usually biannual) from a Head Office executive and attend the two conferences each year. All visits by Head Office Executives to the franchise will be scheduled in advance and the cost will be borne by the Head Office not the franchise.
How often will I communicate with Head Office?
Franchise owners are in constant communication with Head Office, usually three to four times each week and are encouraged to discuss any aspect of the business. As well, franchise owners are encouraged to communicate with all other franchise owners on a formal and informal basis.
Internal communication between the franchises and Head Office is a very important part of franchise development and is necessary as the market matures and the franchises become more established. We strongly promote and encourage open communication.
How can we develop and grow?
The key to developing a successful franchise is the development of a strong and diverse client base. The client base provides a consistent flow of jobs, this is a critical business development indicator.
New business is derived from enquiries from the following sources:
• Scheduled weekly contact with potential clients
• The monthly newsletter
• Client referrals
• Direct enquiries through advertising
• Direct contact with business owners usually through reference checking and
• Follow up telemarketing initiatives
As the number of jobs increases, there is a need to employ consultants. Head Office will assist this process providing feedback on when and how to introduce new staff, along with prescribed orientation, induction and ongoing training. It is the successful introduction of consultants, which ultimately leads to success and increased profitability. Again, Head Office will advise on all support aspects regarding the restructuring of the franchise as the business increases in size.
How big can we grow?
Once the franchise has matured through the initial 3 to 5 years of trade, the size of a franchised operation will be dependent upon the following:
• The number of Permanent, Temporary, Executive and Government subsidised unemployment placements
• Ongoing training and development
• Population size of the city and the outlying region
What obligations do we have to each other?
The franchisor - franchisee relationship is unique, franchisees are not our customers or employees, just as franchisors are not employees or customers of franchisees. The relationship is that of business people who have agreed to work together, under an agreed system, for mutual benefits and the benefits of our customers. To this end we both have some basic obligations to one another, these are:
As a franchisor, there are obligations, which include:
• Providing clear, positive leadership
• Helping franchisees achieve their goals
• Protect the strategic position of the brand and
• Monitor and maintain standards
As franchisees, the obligations include:
• Running a profitable, growing business
• Growing a customer base
• Supporting the brand and the values of the franchise system and
• Holding the franchisor accountable for delivering on obligations
What sort of background do I need?
The best qualifications are business knowledge and common sense. Frontline Recruitment Group will teach the purchaser all they need to know about the services and running the business. However, there are certain criteria against which prospective purchasers will be assessed.
Previous experience in any of the following areas is not essential but is beneficial to a prospective franchisee:
• Franchisee experience
• Relevant industry experience
• Self-employment (sales focused business)
• Recruitment industry experience
Prospective Franchisees should have some experience in the following:
• Sales and achieving sales budgets
• Managing forecast expenses to actual expenses
• Profitability through management of the above
In the course of establishing, developing and managing a franchise the following skills will be utilised. Frontline Recruitment Group conducts ongoing training and mentoring with franchisees to continually upgrade these skills areas:
• Business and Financial Management
• Sales Management
• Client Relationship and Development
• Team Building
• Communication and Interpersonal Skills
• Conflict Resolution and Negotiation
• Business and Financial Management
• Change Management
Are there any laws to regulate franchising, and if so, what are they?
Franchising in Australia has been regulated by the Franchising Code of Conduct since July 1, 1998, which is administered through the Australian Competition and Consumer Commission (ACCC).
The Code provides for a number of franchisee protection mechanisms including:
• Mandatory disclosure of information from the franchisor, including financial details, directors' interests, franchisee list, and litigation information;
• Seven-day cooling-off period after signing the contract;
• Recourse to mediation in the event of a dispute;
• Free association of franchisees;
• And others.
As a prospective franchisee, you should read the Code prior to buying a franchise in order to understand your rights.
Can I talk to other franchisees?
Absolutely. A list of franchisees will be included as part of the disclosure information we must provide by law.
We recommend contacting several franchisees, especially those who are in locations near the one you are considering. Use your own judgement about the information that is provided, and bear in mind that should you proceed, these franchisees may well be your future colleagues.
What is a franchise agreement?
The franchise agreement is the contract that joins you and FRG in business together.
Franchise agreements can vary in length depending on the complexity of the business. They outline the rights and obligations of the franchisee and the franchisor under the franchise arrangement.
Franchising is successful because a "business formula" is developed and tested by the franchisor before being franchised. It is important therefore that the franchise agreement allows the franchisor to protect that "formula", while at the same time providing for future innovation and development.
For this reason, the franchise agreement may appear to be in favour of the franchisor.
It is essential to obtain qualified and experienced legal advice before signing any franchise agreement. We also recommend that any potential franchisee who is considering investing their life's savings into a franchise business should also read the agreement themselves (in addition to their lawyer) to gain a better insight into the nature of their future franchise relationship. We want you to be happy as well!
Where can I learn more about franchising?
The Franchise Council of Australia run many seminars and workshops around Australia, and these are also very useful to learn more about specific aspects of franchising. For a list of events and locations, click here.
You can also visit our useful Links page.