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Frequently asked questions regarding the purchase of an Andrew's Affordable Mowing Service Franchise

 


Aside from the initial franchise purchase price, what are my set-up costs?

A reliable vehicle is essential to tow your trailer. Generally allow $10K for a standard 1 tonne ute. Your Franchise Agreement is drawn up by our lawyers and the cost for this is $700 +GST. Public liability insurance for $5M cover is compulsory -annual policies are in the region of $500. Income protection isurance is also required. You will need to register your business name which is around $230 for a 3 year term. A mobile phone with SMS capability is essential as we will use this to transmit leads to you.

What territories are available?

We have a number of territories available throughout Greater Brisbane, the Gold Coast and the Sunshine Coast. Master Franchises, interstate franchises and regional Queensland franchises are also available. A Master Franchise gives you the rights to operate and sell franchises in your allocated region. An up to date register is maintained at our head office. Just let us know the area you are interested in.

 Do you provide me with all the work I need?

We have sufficient experience in our business and marketing strategies to ensure we will provide you with a regular stream of customer leads. You are then responsible for dealing directly with your customers to offer your services, provide a quotation and carry out the services required. You will also invoice the customer and receive payment directly. The prices you charge are up to you but we will provide guidance if required or if your ‘hit rate’ is low. Your ‘hit rate’ is basically the percentage of jobs won versus the number of leads provided. For example, for every 10 leads we send you, it is reasonable to expect that you will win 7 of them. Thus giving you a 70% hit rate.

 Will I be offered work outside my territory?

Yes, you will be offered work outside your territory – sometimes this will be in an unoccupied territory and sometimes it will be in a neighbouring franchisees territory who may be too busy to accept it. Just let us know how far you will be willing to travel and we will send you any available leads.

 When I win customers outside my territory will I have to give them to a new franchisee if they purchase the territory?

No, once you add a customer to your schedule, they remain with you regardless of what happens to the territory they are in.

 Are there any hidden fees associated with the fixed franchise fee?

The franchise fees cover your marketing and rights as a franchisee as per your Franchise Agreement. The franchise fee is reviewed annually and may be increased in accordance with the Consumer Price Index. (Usually around 3%) However, this increase is often not passed on to our franchisees.

 How much can I earn?

Income varies dramatically throughout our franchise system. Some franchisees employ several staff and have invested in equipment. However, a single operator, mowing domestic properties on a full time basis should expect to turnover from $1000 to $2000 per week. At the other end of the scale, we also have franchisees turning over in excess of $1M per annum and have made significant investments in equipment and staff. The amount of time, effort and investment you put into your business is proportionate to the turnover you can expect.

 Can I concentrate on larger domestic, acreage and commercial work?

If you decide that you wish your business to target this type of work, let us know at Head Office and we will forward you any suitable, available work. You will either already have, or be willing to purchase, suitable equipment to handle this type of work. Plus you will inevitably need to hire extra staff to achieve the requirements of some commercial contracts. We also operate a  4 tiered franchise fee structure which differentiates between larger and smaller franchises. This allows all our franchisees to operate their businesses with a very fair and reasonable franchise fee overhead.

 What are the working hours?

We expect all of our franchisees to operate their businesses as their primary means of income. This generally means full time working hours. Local council laws state that in some areas you are not permitted to commence motorised work prior to 7am however, you are free to decide your working hours and working days as you wish. Generally, you will agree on regular scheduling with all of your customers that suits both the customer and you.

Can I take holidays or have time off?

You will be an independent business under our franchise system and you are free to take time off whenever you wish. You will need to ensure that your customers and Head Office are aware you are taking a break and let us know what you would like us to do with any customer enquiries of new leads.

What is the procedure for purchasing an Andrew’s franchise?

When you have decided that you are ready to purchase an Andrew’s Affordable Mowing Service franchise, the next step will be to reserve a territory and place a deposit of 10% of the purchase price of your franchise. During discussions with our Head Office staff, we will help you select a franchise type and territory for your business.

You will then be issued with a draft Franchise Agreement, Disclosure Document and Trades Practices Regulations. These documents form the detailed contractual and legal aspects of our franchise system. We are legally obliged to give you copies of all of these documents for a minimum period of 14 days prior to becoming a franchisee. During this period, we encourage you to seek the advice of your accountant, lawyer and any other friends or colleagues who will be able to help you with your decision to purchase an Andrew’s Affordable Mowing Service franchise.

The next step will be to pay the final balance of your franchise cost and we will arrange for you to embark on your 2 week training program. Following this, you will be issued with your full equipment and stationery package and will commence operating as an Andrew’s Affordable Mowing Service franchisee.

Do you offer finance?         

No, we do not offer finance. However, we are happy to provide information regarding our company, our franchises and an estimate of projected expenses that may be useful for you to present to prospective loan agencies or banks.

What does the income guarantee offer?  

For the first 6 week s of operating your franchise, we will be building your business in a new territory. We will actively market your services in a number of ways but we recognise that the first few weeks will generally not achieve a large income. Every week, we ask you to submit a summary of work you have carried out and we will top up your income to the value of $800.

How long will it take for me to build a full customer base?       

It is difficult to offer a set time for you to achieve a full customer base. Your customer service skills, speed of operation, work ethics, territory demographic, efficiency, flexibility and equipment used are all factors that can affect what is defined as your capacity and ability to achieve it. Other outside factors such as seasonal changes, the weather, competition, regional trends and customer perception are all factors that make accurate workload projections virtually impossible. Often, some of our franchisees never consider that they have a full customer base as they continue building their business capability by increasing capacity through investing in equipment and employees!

What support can I expect from the franchisor?

It is in our interests that all franchisees operate efficient, profitable businesses as that in turn is a measure of our success as a business. To this end, we ensure that we work with our franchisees to ensure they achieve their potential. Every franchisee is different and we customise our approach to suit their needs.

We offer ongoing training and support in all aspects of running your business and our Director, Business Manager and Head Office staff are always freely contactable to respond to requests for help, guidance and assistance. Other franchisees in the network are often a great source of information for new franchisees as they have already experienced everything that a new franchisee may encounter.

We are confident that the pool of knowledge within our organisation is well equipped to offer a personalised, well informed support network. Ultimately, friendly and experienced advice is only a phone call away.

What are my exit strategy options?

Our Franchise Agreements are valid for a 10 year period. If you wish to cease operating, there are a number of exit strategies you may wish to consider. These are as follows:-

Ø  Remain as a franchisee and employ a person to run the business for you.

Ø  Sell your franchise as an ongoing business – this is by far the most common method. Head Office can help you source buyers and organise the smooth, profitable sale of your business.

Ø  Sign a “Deed Of Surrender” which is raised by our lawyers to relieve both you and us of your/our obligations under the Franchise Agreement. The cost of this deed is approximately $330 and is to be paid by the franchisee. However, your customers and territory will be retained by the franchisor. You will retain ownership of your equipment.

Note:

This document is intended to be an informal, friendly guide to frequently asked questions regarding our franchises and is not necessarily legally binding or exhaustive in its content. All of this information and more is included in the Franchise Agreement, Disclosure Document and Trades Practices Regulations. These documents form the detailed contractual and legal aspects of our franchise system. We are legally obliged to give you copies of all of these documents for a minimum period of 14 days prior to becoming a franchisee. During this period, we encourage you to seek the advice of your accountant, lawyer and any other friends or colleagues who will be able to help you with your decision to purchase an Andrew’s Affordable Mowing Service franchise.