![]() ![]() “It’s making sure the systems are working,” he says. McDonells and his team will spend the rest of the year, and into early 2017, ensuring the first Massage Envy locations are properly setup and growing on par with the business’s US-counterparts.Īfter setting up the first eight to 12 franchises, McDonell says the rollout of new franchises should start to scale quite rapidly so having the right marketing team and franchise model in place is critical. “In the US, you don’t have to have a sink in every room but you do here,” he says. “The fit-out from a tech point of view has been a little slower,” he says.īecause of the cost of importing fixtures and fittings, the McDonell have spent time finding high-quality local suppliers and designers, while also ensuring they meet building regulations. When bringing in a franchise from overseas, he says it can take longer than planned to localise systems. McDonell says the biggest challenges with Massage Envy has been localising the US-originated franchise system, finding the best sites and then building them out. “The first ten are the slowest to open,” he says. McDonell also recommends using tech and data to help inform decisions about where to set up new sites. “How scalable is it to grow across the network?” “If you’ve got a really good restaurant or café, how systemised is it so the manual book can be given to someone else to roll it out?” he says. Get the first franchises rightīefore breaking out and setting up multiple franchises, the first franchise in a network needs to be set up well with the right infrastructure, manuals and processes in place to make it as easy as possible to redo, McDonell says. “We think there’s a real sweet spot for making massage more accessible to more people so it’s not just a luxury product,” he says. Similarly, with Massage Envy, he says they’re appealing to consumers in a niche market. “Many big players won’t do that,” he says. ![]() McDonell says Anytime Fitness found success by taking its affordable gym establishments into outer suburbs and regional towns. “It’s finding a brand where there is a niche market,” he says. The secret to developing a franchise network comes down to finding a gap in the market and resolving it with a highly scalable, multipliable solution that creates new value for customers, McDonell says. ![]() Here are McDonell’s top tips for getting a franchise network off the ground. “Consumers like brands – it’s just really finding the niche for what you’re passionate about.” “Franchising is a real good opportunity for people who want to run their own business and want the network and support of the brand,” McDonell says. The entrepreneur has hungry to launch into the next big opportunity, having grown Anytime Fitness Australia – which the McDonells became master franchisors of in Australia in 2008 and still own – into a franchise group that operates 400 fitness clubs and turns over nearly $400 million annually. “I thought this is going to work in Australia,” he says. McDonell says he decided to bring the concept to his home country after becoming a Massage Envy member himself while travelling in the US. If the facial or massage is not used in a given month, it’s rolled over to the next month, and members can buy additional services at discounted rates. Free treatments and special offers are also provided for referrals. The Sydney locations’ standard membership starts from $79 a month for a 60-minute facial or massage, although new members can currently access an introductory price of $59 per month. “They’re tracking really well,” McDonell told SmartCompany. ![]() McDonell recently opened company-owned Massage Envy outlets in Lane Cove and Paddington in Sydney, rebranding the outlets from Massage Collective to Massage Envy, and is planning to bring Massage Envy franchises to Melbourne and Brisbane by early next year. ![]()
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