Building a future through hard work and entrepreneurship is still part of the Australian dream. On top of the financial success that can be achieved as a business owner, there are lifestyle benefits too.
However, it can be a financial challenge to get established in business.
Now one franchise is offering a Partnership Program that seeks to ease financial pressures for newbie franchisees.
Maximus is a new generation industrial brand operating in a niche market; it’s a one-stop-shop for customers searching for hydraulic, industrial, irrigation and water products.
Maximus Partnership Program is a joint investor option
The Maximus Partnership Program is an exciting, entry level joint investor option. It is a smart way to empower hard-working, ambitious Aussies who lack the investment required for a fully funded franchise.
Wally Davey, franchise marketing director at Maximus, points to the challenges everyday Aussies face today in the battle to get ahead.
“Home loans are more stressed, and now there is little capacity to remortgage to buy a business. It’s even more difficult for young people. So, we decided to give hardworking Aussies a helping hand,” he says.
Franchisees in the partnership program receive a shareholder loan which is repaid by the success of the business. Within the agreement they may be able to secure further shareholding as their business grows.
The joint venture model is a business solution Wally is familiar with from his experience as co-founder at Pirtek.
He says this option also works well for families anxious about too great a financial risk in today’s economic climate.
The joint venture model is tailored to the franchisee
The partnership model is tailored to the individual applicant. A high-quality applicant might put in just 30 per cent of the franchise cost and over five years use the profits to buy out the remaining business.
“Maximus can invest all of the system, inventory and equipment which leads the franchisee with the shop fit out to fund. Alternatively, we can establish the shop and the franchisee invests the working capital,” he explains.
“This is a fantastic way we can bring someone into business.”
Maximus is also working with an alternative funding business so franchisees can have their loan requests assessed by a financier who understands its business model.
The Maximus model allows for a standalone store, or a bolt-on business for retailers operating in a complementary market.
Wally says “At Maximus we have recognised the real value of a partnership with young men and women who aspire to ownership.
Maximus Partnership Program is helping ambitious Aussies
“We don’t run mobile services which are high capital costs. This partnership opportunity is reflective of million-dollar business without the costs.”
As partners in the business, the franchisor delivers skills, systems, and training and one-on-one connection with the franchisee.
The Maximus Rutherford store is a prime example of how it works.
Former sales manager Jason Masters and wife Michelle took the opportunity to partner with Maximus managing director Scott Hudson in developing a Maximus Trade and Retail centre.
The Hudson family behind Maximus has been in the business for over 35 years.
Scott and his team delivered products, IT, marketing programs, supply chain connections and business systems.
A Hunter Valley local, Jason delivered the sales and local market outcomes.
Four years on and the business is now a purpose built 750sqm trade and retail centre alongside a massive ARB four-wheel drive facility.
Jason is negotiating to purchase the remaining shares in his retail business.
Another option for franchisees is to sell the business entity and receive a percentage of the sale value.
“There is always the opportunity to sell ongoing business,” says Wally.
An opportunity for a family business
A franchise business like Maximus is a long-term investment that delivers quality of life outcomes for the family. It can also provide an easy, intergenerational succession plan and deliver career paths for family members.
Jason’s wife, sister-in-law and teenage sons work in the Rutherford business; it is a true family affair.
Another interested potential franchisee keen to invest as a partner and provide his two teenage sons with a future, first as employees, then perhaps as owners, runs a small transport operation.
He is typical of the ideal small business owner looking to bolt-on an allied business in a regional centre.
Wally believes the partnership model is also an ideal way for tradies to get out of their trucks and tools and into a retail model.
“They’ve got a great customer base; they just don’t want to be on the tools anymore. This is a progression for them; they are building a retail business, not just setting up a mobile operation.
“Once we know the franchise candidate is bringing in a high-quality customer base we can see value in supporting them into business.”
Every potential franchisee needs to invest some capital in to their Maximus business. However the Partnership Program enables would-be entrepreneurs short of capital to step up into business ownership.