United Home Services began in Melbourne as a family owned cleaning business over 15 years ago. It began franchising with a focus very much on the Victorian market and now has over 100 franchisees in areas including Sydney, Newcastle, NSW Central Coast, Melbourne and South East Melbourne. In 2003 United was taken over by new owners who have reinvigorated the business and have expanded it further into other states of Australia through the appointment of regional franchises.
Number of regional master franchisees:
Six.
How many multi-units:
Six.
Total franchise investment:
Regional master franchises available Australia-wide with an upfront cost of $100,000 plus. You will be allocated a broad geographic region with a high income demographic. As a regional master franchisor you will be responsible for attracting and recruiting new franchisees to your region, providing ongoing support (motivating and mentoring) as well as regional strategic development and marketing.
Set-up costs inc fit out/stock:
Included.
Vehicle loans:
None.
Working capital required:
About $50,000.
Ongoing marketing and royalty fees:
20 per cent.
Training costs:
These are included in the franchise purchase price.
Any franchisor funding available:
Approximately 20 per cent vendor financing is available.
Average time it takes from initial enquiry to franchise opening:
It normally takes between one and three months.
Term of agreement:
10 years.
Lease:
None.
Main method of franchisor/franchisee communication:
Phone conferencing, email, newsletters.
Frequency of BDM visits:
Six months according to needs.
Do you have a franchise advisory council?
Yes
Lead generation – is it centralised or local?
There is a centralised call management and email management system.
What and when was your last investment in back office reporting?
$5,000 six months ago for ongoing enhancement.
Percentage of franchisees up for renewal who have renewed since November 2008:
N/A.
The number of closures since November 2008:
None.
Frequency of franchisee profitability reporting:
Annual.
Average franchise turnover July 2008 to July 2009:
$120,000.
Growth plans for 2010 to 2011:
To expand regional master franchises in Victoria and Queensland, and to expand into Perth. There are aims to increase profitability of the current regions by expanding the services offered, and we will enhance and implement a stronger public relations program.