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

If 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.

$100,000–$150,000

SPEEDFIT

Get into a fitness franchise with a difference. Instead of requiring clients to squat, lunge and run their way through a fitness program several times a week, SpeedFit provides a similar but more intense workout for a much smaller investment of time.

The Aussie business harnesses electrical muscle stimulation with personal training techniques to maximise effort and produce results without the commitment of several trips to the gym each week.

The business was established in 2013 and began franchising three years later.

It’s a turnkey business, so site selection, studio fitout and deployment of marketing is part of the package.

While franchisees don’t need to have a fitness qualification, anyone conducting client sessions is required to hold a Certificate III in Fitness.

Every franchisee undertakes an initial two weeks of comprehensive training covering fitness techniques and business methods. Marketing support includes monthly campaigns, partnerships and local area marketing activities.

There are additional costs: a $50,000 franchise fee, and $53,000–$55,000 equipment fee – however, equipment can be leased for $1000 a month.

Right now the Perth-based business is expanding across the east coast of Australia.

$100,000–$150,000

MINUTEMAN PRESS

If you’ve never owned a business before, Minuteman Press could be just right for you. To get you started there is a comprehensive two-week training program based on all the experience of 40 years trading.

There is marketing support and strategies in place to maximise the services on offer in this B2B model, which is a weekday operation with multiple revenue streams and a royalty incentive program.

With almost 1000 outlets to its name around the world, Minuteman Press has considerable purchasing power. Franchisees also benefit from proprietary software.

A good work ethic is essential for successful operation of the franchise. So too is a passion for providing top quality service and helping other business owners build their businesses.

$75,000–$100,000

HOME CARING

The at-home care sector is really taking off and this franchise is a joint venture model, with franchisees receiving a salary package and a 50 per cent share of ongoing profits.

As a partner with the franchisor, a new franchisee invests $100,000 – the only extra costs are lawyers and accountancy fees. A finance package up to $85,000 is available for approved applicants.

Home Caring is an approved Aged Care and National Disability Insurance Scheme (NDIS) provider, so many of its services are covered by NDIS funds and Home Care Packages.

Services include aged care, dementia, disability and rehabilitation.

While nursing, disability or dementia care experience is ideal for franchisees it is the alignment with the company’s values that is most important.

Franchisees benefit from a comprehensive training program, ongoing operational support and a full suite of management tools to assist with the growth and success of their home care business.

$60,000–$75,000

DECKSEAL

This is a hands-on business opportunity at an affordable $60,000–$70,000. DeckSeal began back in 2007 and traded for 11 years before venturing into the franchise field.

As this is very much a hands-on business opportunity franchisees will need to add in the cost of a van or trailer.

The business is so much more than the name suggests – it isn’t all deck work. In fact, the services on offer are quite varied, from timber structural services such as fences and screens, bench seats, garage doors, outdoor furniture, planter boxes, through to high pressure washing and concrete/paving cleaning and sealing.

Key to the high standard of work franchisees deliver is access to top quality products backed up by software and training in quoting and estimating.

Franchisees come from a variety of careers such as construction, government, corporate and the motor vehicle industry but share practical skills, a capacity for hard work, and are self-motivated.

$64,950

INXPRESS

The logistics industry has been fundamental to business over the past two years with the ever-rising demands from e-commerce and the challenges of the pandemic.

It’s something InXpress franchisees can handle; they love a fast-paced business environment and have a passion for sales and business building.

In this B2B operation that started out back in 2009 franchisees are focused on finding the best shipping solutions for their customers. The company’s shipping platform is a one-stop shop for multiple carriers, but customers are only issued one invoice.

InXpress works with renowned courier companies such as DHL, DNT, Startrack, Toll and UPS, and the scale of the business delivers franchisees access to competitive rates.

Franchisees don’t need any experience in the freight sector as two weeks comprehensive training backed up by innovative software sets a firm foundation for the business.

Read more about this brand and the logistics sector on page 44.