8 minute read
SEEKING ADVANTAGE
VALUE ADDED
Q&A with home loans business MoneyQuest
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If you see a home loans business as a value-add for your career, here is what you need to know about one of the players in the market.
Michael Russell, managing director of MoneyQuest, answered our questions about the market and the brand.
Q: HOW LONG HAS MONEYQUEST BEEN FRANCHISING? A: Five years. We launched our franchise model in May 2016.
Q: WHAT DO YOU OFFER TO FRANCHISEES THAT MAKES YOUR BUSINESS A COMPELLING INVESTMENT? A: We offer the ability to earn an uncapped income while building a readily saleable asset.
The nature of our remuneration – upfront commission at the time of settling a loan and an ongoing trail commission paid monthly for the life of a loan – is commercially attractive when joining, throughout the life cycle of the franchise, and upon exiting.
Additionally, we have waived our initial franchise licence fee of $9,500, and allow our franchisees to choose their working environment, whether it be a home office, an unbranded office, or a fully branded office.
Q: WHAT QUALIFICATIONS DO FRANCHISEES NEED TO HAVE TO BUY A MONEYQUEST BUSINESS? A: First and foremost, prospective franchisees need to display a passion for helping others to improve their financial positions and realise their property dreams.
Franchisees need a Certificate IV in Finance & Mortgage Broking FNS40815. They also need to obtain a membership with the Australian Financial Complaints Authority (AFCA), and join an industry association.
Once they are officially onboarded, MoneyQuest franchisees must meet the accreditation requirements of our approved lenders and suppliers, and within two years they need to complete a Diploma of Finance & Mortgage Broking Management FNS50315.
Q: WHAT TRAINING DOES MONEYQUEST PROVIDE? A: It is imperative that our franchisees are well trained as they assist clients with making significant financial decisions and they handle sensitive information. So the training we offer new members is extensive, and importantly, ongoing, due to the ever-changing nature of the mortgage broking industry.
Initially, new franchisees are required to complete an online induction course, which is accessible via MoneyQuest’s bespoke learning portal ‘eAcademy’ before one week’s face-to-face training at head office.
SURVEY REVEALS JOB SATISFACTION
A recent survey of MoneyQuest franchisees reveals 96 per cent of those who responded describe themselves as either ‘totally happy’ or ‘mostly happy’ with their decision to become a mortgage broker.
Mortgage & Finance Association of Australia (MFAA) CEO, Mike Felton, says this positive response is likely linked to the pivotal role mortgage brokers play in helping others to achieve their property dreams.
“The fact that the vast majority of brokers are content with their choice of profession despite the trying circumstances of recent months and years is not only a testament to the resilience of those working in our industry, but also reflects the key role mortgage brokers play in the economy and the communities they serve.
“Mortgage brokers play a critical role in providing access to credit, helping people to achieve one of life’s great goals in purchasing a property. This provides tremendous professional and personal satisfaction for brokers which I believe contributes to this survey outcome,” Mike Felton says.
This training covers everything from loan application scenarios and role playing, to prospecting and marketing, to compliance and risk management.
We also offer a variety of professional development sessions, including a fortnightly network-wide Zoom led by the CEO and executive team, a session with our lenders and franchisees held on the last Wednesday of every month, and an annual national conference.
Q: WHAT OPPORTUNITIES ARE THERE FOR FRANCHISEES TO EXPAND THEIR BUSINESS? A: The options are virtually limitless; we have single operator franchisees, and franchisees that have more than 10 staff. If the demand is there, franchisees can increase the size of their teams to meet it.
Q: THERE ARE A LOT OF HIGHS AND LOWS PREDICTED AROUND HOUSE PRICES. HOW DOES THIS AFFECT YOUR BUSINESS AND WHAT CAN YOU TELL US ABOUT THE MARKET POTENTIAL OVER THE NEXT FEW YEARS? A: House prices rarely stay flat for extended periods and are generally either rising or falling. It is difficult to predict changes in residential property prices too far in advance, however market economists believe that the property market will stay very buoyant, in the near term at least.
However, the New Zealand Government recently introduced a series of measures to curb rising dwelling prices, and our Reserve Bank and APRA (Australian Prudential Regulation Authority) are closely monitoring this.
Q: WHY IS MONEYQUEST WELLPOSITIONED TO TAKE ADVANTAGE OF THIS? A: MoneyQuest brokers are well trained to adapt to changes in the property market. Activity levels continue to remain high and our franchisees have the knowledge and resources to assist clients regardless of whether the property market is rising or falling.
Q: HOW DO YOU SEE REGULATORY ISSUES AFFECTING THE BUSINESS? A: Our industry recently underwent significant regulatory change with the introduction of the Best Interests Duty and we do not anticipate any further significant changes to be made in the near future. n IS MORTGAGE BROKING A GOOD DEAL? IBISWorld Mortgage Brokers in Australia, October 2020 report author Yin Huey Yeoh wrote of the housing sector, “Housing prices recovered slightly in 2019-20, but are expected to fall in the current year as a result of the Covid-19 pandemic. Consequently, industry revenue is projected to fall 0.6% in 2020-21.
“Residential property loan rates are anticipated to rise over the next five years, reducing investor demand for residential property. Higher competition both internally and externally will likely exert downward pressure on industry participation growth. Overall, industry revenue is projected to rise at an annualised 1.7% over the five years through 2025-26, to total $2.7 billion.”
There is a more prominent place for brokers now in the market, Yin Huey Yeoh suggests.
“Mortgage originators tend to consider brokers an efficient way to increase brand recognition in areas where they may not have a strong presence. Some smaller lenders find brokers particularly useful, as these companies may offer competitive rates and quality products but lack the brand recognition, size and marketing power required to compete against larger institutions.
KEY SIGNS OF SUCCESS IN MORTGAGE BROKING Having links with multiple lending institutions An experienced and knowledgeable work force A franchise operation that provides support and training Economies of scale Maintenance of excellent customer service which leads to referrals
Source: IBISWorld, Mortgage Brokers in Australia, October 2020
PREDICTIONS FOR 2020-2025 1.7% annual revenue growth 3.4% wages growth 1.5% employment growth
HOW BIG IS THE HOME LOANS MARKET? $2.5bn revenue $267.3m profit 10.6% profit margin 7,374 businesses 18,165 employees $1.3bn wages
Crust has big plans for a very prosperous new year
What are your plans 2021? Crust pizza is going for growth, including opening 10 new stores. Could one of those stores have your name on it?
Australia’s #1 premium brand
Since its launch in 2001 Crust has focused on quality, freshness and innovation. There are now over 140 outlets in Australia, plus two international territories, and premium products have set the brand apart. Roy Morgan Research Institute recently named the pizza chain Australia’s leading premium brand in the Quick Service Restaurant category.
It's a very good place to be. The research also found that there are over 4.7 million premium consumers in Australia who spend more, and more frequently, than anyone else. But Crust doesn’t stop there when it comes to optimising franchise partners’ .
“We recently opened up to a whole new segment of the market to sit alongside our premium o erings,” says Jon Paul Partyka. “An $11 pizza deal with a $5 side option is now available now from many of our stores.”
Crust has already sold more than 5.4 million pizzas this year. The number of customer transactions has risen by 21.8% with 15.1% year on year growth. “The fact that sales increased significantly at the peak of lockdown demonstrates the success of our new menu options,” says Jon Paul Partyka. “In tough times, many people look forward to the lift they get from eating our gourmet pizza while other look for a ordable options. It’s an example of the innovations our franchise partners welcome and enjoy.”
All the support you could need
“We’re not just a franchise, we’re a family,” says Jon Paul Partyka. “When you join us, your initial six-week training teaches you everything you need to know about running a Crust pizza store and a small business. You’ll then have support from our friendly team of specialists whenever and wherever you need it.”
Crust o ers the competitive edge that comes with an established, well known Australian brand. And you don’t even need previous experience to share the benefits – there are expert to guides you through all the key milestones and work with you every step of the way.
“The whole set up is easy because we do all the hard work for you,” says Jon Paul Partyka. “You can enjoy maximum e ciency and productivity right from the start. And, with our streamlined payroll, rostering and HR systems, you can spend a lot more of your valuable time focusing on building your business.”
In 2021, Crust will also be supporting current franchise partners with brand new designs for stores and the menu.
“We never stop thinking about ways to Improve the opportunities for our franchisees,” says Jon Paul Partyka.
Get in touch
Crust stores range in price from $200,000 and leasing specialists are on hand to help you find your preferred territory and negotiate terms. So, if you’re ready to connect and cultivate customer experiences, contact Kellie Cranch on 0401 058 607 or email kellie.cranch@rfg.com.au, for your first taste of being a Crust above the rest.
