SPECIAL REPORT
Be your own boss
FOR LESS THAN $150,000 There’s plenty of choice for keen investors to buy a franchise for less than $150,000 and take the first step to business ownership. By Sarah Stowe
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f you intend to spend between $60,000 and $150,000 on buying a franchise, where should you start? Well, like any business search there are three key considerations. What can you realistically afford, and what kind of business do you want to operate? Do you in fact want to be a hands-on owner-operator or is an investor option your preference? It is really worthwhile spending time on evaluating your financial situation to clarify how much you can afford to invest upfront, taking into account repayments of loans, franchise fees and your living expenses. Armed with a fairly accurate budget you’ll be able to make more informed decisions about the viability of a business venture to suit your circumstances. If your preference is to invest in a franchise that someone else will manage, allowing you to remain with other employment or business opportunities, this will help refine your choices. And if you intend to own and operate your new business, then it’s crucial not only that you pick a venture that has profit potential but one that you will enjoy working in for some time to come. So what are the options? Here is just a taster of businesses in the range of $60,000 to $150,000 (add in GST too) available in the Australian marketplace.
TOP OF THE RANGE: $150,000 DONUT KING
While a full retail store will set you back several hundred thousand dollars, thanks to a new mobile van option, budget-conscious Aussies can invest in a Donut King business. Donuts to your door – this exciting development is now out and about, and ready to roll out across Australia. Q: How long has Donut King Mobile been in the pipeline? A: We spent time trialling the vans in different regions using existing franchise partners. Based on the results from these trials, we are excited to move forward and offer Donut King Mobile to the market. Q: How many franchisees do you plan to sign up in the next 12 months? A: We would like to have on the ground in excess of 30 vans. Q: This offers a more flexible and affordable option for franchisees – what’s the investment level? A: It will cost $139,000 + GST and normal franchise service fees will apply. As a launch bonus we are offering $2000 worth of coffee beans and we have a sales revenue guarantee for the first two weeks of trade. Q: Do you expect existing store owners to add this to their portfolio? A: This is an option that could complement our existing franchisees who would like to branch out and add events, or a mobile option to their existing Donut King businesses.
We are also expecting a lot of new interest, from people who want to be out on the road, being in charge of their own destiny. Q: How will you manage training etc if lockdowns continue over the next few months? A: We have had to look at different ways to facilitate training over the Covid period. In an ideal world we would like the new Donut King franchisees to train in our new training facility at Miami on the Gold Coast. If the franchisee lives in an area where travel is restricted, we will find an alternative way to train them close to their home. Q: Who are typical customers for the mobile business? A: The typical customers are from industrial areas, sporting groups, schools and corporate offices. Q: What’s different about this business model from other coffee vans? A: Donuts are the biggest staple of the Donut King business. By adding the DK product range to our vans, it enables our franchisees to tap into the equity of the brand and offer for sale products not commonly found on a coffee van.
NOV/JAN 2021-2022 | 36 | WWW.FRANCHISEBUSINESS.COM.AU
