As energy costs continue to rise due to climate changes, interest in building energy efficient homes becomes more apparent. Green Homes Australia aims to give its franchisees all the training required in order to provide a complete service from scratch to finish for its customers. ZEN’s model is different in that actual sales transactions occur between ZEN and the customer. A ‘franchise service fee’ is paid to the franchisee from ZEN for every energy system sold.
Green Homes Australia
Concept: green home building
Established: 2006
Franchising commenced: 2013
Why green
With the high and rising costs of energy in current climate conditions, it is only natural for people to start looking for ways to build homes that are cheaper to run and maintain.
Green Homes Australia is a business model that has been developed over 20 years and challenges the problems faced when planning to build homes efficiently and cost effectively.
GHA believes that by understanding the principles of green building, standard homes can be built at a standard cost and are three times more efficient.
Business advantages
GHA’s franchise model allows franchisees to provide each client with a customised and tailored home design that is based on their needs, wants and available block size.
The business does not rely on expensive new building methods but achieving an understanding of the fundamentals of green building and the green design process.
Support and training
New franchisees will be trained and supported in the areas of green building, design and drafting, national and initial launch marketing, business processes, online training, legal, accounting and material and partner relationships.
Cost and agreement term
A GHA franchise has a start-up cost of $30,000 ($25,000 to purchase the territory and $5,000 to cover training costs) and includes a marketing campaign for the initial launch. The agreement term is two terms of three years with no cost to continue as a GHA franchisee after that point.
Green Homes Australia showcases its green building skills by constructing standard homes that are three times more efficient. Image source: Green Homes Australia
ZEN Energy Systems
Concept: renewable energy sales
Established: 2004
Franchising commenced: 2010
Number of units: Nine
Why green
Owning and operating a business in an industry with a lot of government regulation and standards can become complicated and difficult to manage.
A Zen Energy Systems offers a business opportunity without the complexities of dealing with the trade of solar rebates and installing the systems themselves. However, people with electrical and/or plumbing experience (appropriate accreditation required) can enjoy the benefits of being a franchisee and operate as an accredited Zen installation technician.
Business advantages
Zen is a franchise where the actual sales transaction occurs between the franchisor (Zen) and the customer.
This means that the financial investment is reduced because franchisees do not hold stock themselves. This business model, therefore, involves Zen paying its franchisees a ‘franchise service fee’ whenever an energy system is sold.
With a ZEN Energy Systems franchise, sales transactions occur between ZEN and the customer and franchisees are paid a ‘franchise service fee’ for every energy system sold.
Support and training
New franchisees will be required to complete a two to four week competency based training program that provides training in all operational policy and procedures and small business management.
A small marketing levy is deducted from each franchise service fee paid which is then put towards a marketing fund and spent on national advertising campaigns and promotional initiatives across the network. Local marketing initiatives are also developed by head office in conjunction with the franchisee to boost local community awareness and involvement.
Cost and agreement term
A standard $50,000 franchise fee secures a five year agreement and covers initial training and for franchisees looking to accompany their business with a retail store, an investment of $200,000 to $350,000 (ex GST) is required.
The retail store set up includes the initial franchise fee, shop fit outs, territory set up, vehicles and the initial training fee.
An option for extension is available after the five year agreement has been completed.