Your initial questions answered
1. RISK
What risk factor is involved?
Make no mistake, there is always some risk involved in every business venture.
Purchasing a franchise model that has been operating for over 25 years with 120 current franchisees and operated in Australia by committed and experienced Franchisors should provide some comfort. Entering a growth market with a unique service should also reduce risk.
2. WHAT HOURS WILL I NEED TO PUT IN TO BE SUCCESSFUL?
This depends on your knowledge, skills and personal ambition. Centres are open 7 days per week and Franchisees can work in the business as Physiotherapists ( if qualified), Therapists, Trainers or in an administrative role. Franchisees may also work from outside the centre in a management supervisory role, however, fully absentee or silent franchisees are not permitted.
How will this affect my current business/ investment interests, family time and lifestyle?
That is up to you, however the team roster templates provided to Franchisees permit work schedules from 4 hours to 35 hours per week.
Can my family be involved?
Kieser Training may provide excellent opportunities for career direction of family members through our comprehensive ongoing training programs and employment opportunities both within Australia and overseas.
3. RETURN ON INVESTMENT
Can you provide sufficient information for me to make accurate projections?
The Franchisor will provide complete financial and demographic data on existing centres that have been operating in Australia. You can overlay this data on your franchise territory statistics and compile your projections.
Can you estimate how long it will take me to reach break even level?
Existing centre break even levels will be made available and your projections will uncover this level.
4. COST OF START UP AND CAPITAL REQUIRED
How much money will I need to get started?
Estimated $300,000 to $375,000 + applicable GST
What is the initial franchise fee and term?
Franchise fee is $50,000 + GST for a 10 year term.
5. POTENTIAL FOR FIRST YEAR PROFITS
What could I expect to take out of the business in the first year?
If you work in the business, you could expect to take a salary. For a management/ supervisory role it is realistic that you would not draw funds in the first year.
6. POTENTIAL 5 YEAR PROFITS
When I have gathered all the information and proceed, what profits could I expect over the first 5 years?
( naturally, providing that I follow the franchise system )
These figures would become apparent from your projections which you commence after Step 6.
7. LEADERSHIP AND DIRECTION
What history of success in franchising do the Franchisors have?
The Master Franchisor, Kieser Training AG, have extensive experience in franchising and support for Franchisors and their Franchisees and company operated centres in Europe.
More importantly, the Australian Franchisor has Directors with a combined 50 years of franchise industry experience both as Franchisors and Franchisees. These Directors are actively involved in the business and have proven success in icon brand franchise systems in Australia.
Can they provide me with the team dynamics and communication network that I require and reward me for my effort and contribution to the system?
They are committed to the success of their Franchisees as their first and foremost goal and understand from personal experience what it takes to grow a successful franchise network.
8. PROVEN FRANCHISE MODEL
Are there successful franchisees that I can talk to?
Not in Australia as of the first half 2010.
9. UNIQUENESS AND MARKETABILITY OF THE PRODUCT
Is the product and brand patent protected?
The Kieser Training and MST marks are protected in Australia and the machines are made by Kieser Training AG for exclusive use in Kieser Training centres. The KIS and ForceMed software systems have been developed exclusively for Kieser Training Franchisees.
Has a comprehensive competitor analysis been conducted?
There are no known competitors in Australia.
Is the product in the right business space for growth potential?
Medical Strengthening Therapy MST™ is a unique health enhancing and muscular pain reducing product that has proven appeal to the over 40’s market. ABS statistics show that the baby boomer market is growing rapidly in numbers and predicted to reach 40 % of the Australian population by 2030. Kieser Training is positioning to capture this market.
10. DO I HAVE, OR CAN I GET, THE RIGHT SKILLS FOR THIS BUSINESS?
Do I have any advantage eg. previous health industry knowledge, strong sme business network contacts, computer literacy, particular skills ie. Does this business suit me, is it the right match for me?
We will help you decide that as we meet you and you provide answers to our questions and application form. A match is very important and we may enlist the use of business and personality profile analysis. If you have the necessary business and entrepreneurial skills and/or health modality qualifications, our comprehensive initial and ongoing training programs will provide you with complementary required skills and knowledge.
Have induction and ongoing training programs been prepared and tested and what level of regular support can I expect?
The Swiss are very organised and structured people and the Kieser Training franchise system reflects this quality. You will be trained in the use of and supplied with operations manuals and handbooks that provide an incredible level of support.
11. PROFILE OF FRANCHISORS AND SUPPORT TEAM
Who are the people who own this business?
Kieser Training Pty Ltd, a company registered in Australia, holds the rights to develop the Kieser Training franchise system in Australia and New Zealand has two shareholders – Gary Harley and Mark Brown.
Do these people have the necessary experience, good character and integrity to help me achieve my goals and do they work in the business on a daily basis?
You will need to do your own investigations, police and credit checks and thoroughly read the Disclosure Document.
What areas of involvement will they have?
Both Gary as Chairman and Mark as CEO are actively involved in the business.
12. WILL THIS BUSINESS GROW IN CAPITAL VALUE?
The Directors goals and Master Franchise criteria are that franchise centres will be opened throughout Australia and NZ. As the numbers of successful centres expands and the brand matures, it is projected that each successful franchise should grow in capital value.
13. CAN I BUY A FRANCHISE IN THE AREA THAT I WANT?
Every effort will be made to meet your location preference subject to availability and demographic suitability. It is your decision whether you wish to proceed based on the territories available.
14. COULD MY MARKET AREA BECOME SATURATED AND, IF SO, WHAT STRATEGIES ARE IN PLACE TO PROVIDE REPLACEMENT REVENUE?
You purchase an exclusive territory by geographic boundary that has been demographically analysed to be potentially suitable. This is a transparent process and all information is available to you. No other Kieser Training centre can open in that area unless it is a sub franchise of yours. There is no known competition as of current date.
15. EXIT STRATEGY
What systems are in place to help me exit the business when I wish to?
When you wish to sell, the Franchisors will assist you by providing current incoming franchise leads, templates of advertising copy and advise you on what is necessary to prepare your business for sale to a Franchisee approved by the Franchisors.
Expression of interest