Keeping Future Franchisees a Keen Market As a business investment, few options in the Australian market outpace franchises in popularity. Franchises offer the security of an existing brand name and identity and varying degrees of technical and administrative support, usually for a fixed cost with basic ongoing royalties. But even as the market for franchises grows and more and more people invest in long term options over braving the casual employment market, the industry of franchising is still finding its feet and is still ripe for some big changes.
Brijesh Purohit, Managing Director of the Keen to Clean Group, believes he has identified one of the big trends that is starting to form. “Franchise options by nature grow and become more elaborate, and expensive, as the brand name grows in power,” he said on the matter of the future of franchises in the Australian business market. “But despite the pulling power of a bigger name, it never fully negates the risk that any investment represents and perhaps more significantly it means that many potential investors are priced out of contention.”
His franchise system, running for 5 years in its current incarnation, has won multiple service, managerial and placer. franchise business awards and is listed on the BRW Top 100 list as well as being a 2013 BRW Fast Franchise Top 10 Significantly, the Keen to Clean Group offers its franchises under for $100,000, making them one of the most affordable franchise options on the market.
After thoroughly reviewing the requests and feedback of a year’s worth of potential franchisees the Keen to Clean Group has reflected on the collated data in conjunction with multiple legal and business coaching groups. Many of these people, including the franchisees already part of the established stable, investigated many different franchises as potential investments.
Mr Purohit says? “We found based on the feedback that, ultimately, the initial investment will be the basis of the decision on whether a person will pursue a franchise. A larger cost, whether for a well known brand or not, will always be a concern and cause trepidation for an investor. A good name is a plus and will always be a factor, but investors have learned to see past big names alone.”
Based on this research, the Group developed a new range of ‘Flexi-franchises’ that offer low initial cost/low risk investment options to meet the needs of a more savvy and cautious investment market. Mr Purohit believes that his new series of franchise models are going to represent an increasingly growing trend in franchising over the next few years.
The new line of franchises will offer significantly lower investment thresh-holds, as low as $13,500 + GST, that includes a guaranteed roster of fixed, ongoing regular work as well as all equipment costs in the turnkey solution fashion the group has become recognised for. Depending on the level of investment, the guaranteed established roster of jobs will increase or decrease, meaning franchisees will have the ultimate say in their workload.
Where the flexi-franchises differ from a typical fixed part time contractor position or a standard franchise position is in its flexibility. An investor can opt for a minimal workload, comfortable embracing the predefined workload of their investment tier. However, they can also opt to work casual jobs on top of this, in essence allowing them to function as a standard franchise sans a defined territory. Taking advantage of casual work as well as the established workload, a franchisee can recover their investment costs in as short a timeframe as seven months.
All of this comes with the advantages of being an integral element of a broader franchisor. The procurement and administrative management of the initial work stable as well as any casual bookings will be managed by the franchisor, meaning that flexi-franchisees can focus on the maintenance of workload and dedicate themselves to quality services, aiding in the growth and empowerment of the franchisor itself.
“Ultimately it is win-win for both parties. We give people new franchise avenues to explore while also allowing ourselves to grow and develop a dedicated and invested fleet of franchisees,” Mr Purohit said. “We feel this will become a popular trend in smaller service based franchises and will allow for the way small franchises and contractors function to be revolutionised.”
Those interested in a Keen to Clean Group Flexi-franchise can get in contact via email firstname.lastname@example.org or please dial 1300737978.