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Friday, August 08, 2014
As its name suggests, the company's franchisees specialise in repairing leather goods that may be damaged due to wear and tear, age and so on. "The majority of work that comes to franchisees is from the commercial furniture industry. This work is secured by head office and requires no advertising on the part of the franchisee," says CEO and director of marketing, Dean Reid.
"Each job is done onsite at the customer's home or place of business. Franchisees are also responsible for answering phone calls from customers, completing the repair reports on their iPad after each job and filling in their invoices." Franchisees are directly involved in their business, and Reid explains there are opportunities for growth.
"Each franchisee works hands on as a repair technician. Head office provides support to contact and schedule appointments for customers to allow the franchisee to concentrate on doing the work. Some franchisees have their partner assist with administration and bookkeeping tasks.
"Each Leather Doctor franchisee is also given the opportunity to add additional franchise brands to their business, being The Timber Doctor and The Fabric Doctor. These franchise brands follow the same system as the Leather Doctor, only working with timbers and fabrics. In effect, they can own three franchises for the price of one." Reid says new franchise territories start at $55,000 including GST. "This includes all tools, materials, uniforms, training, van signage, stationary, an iPad and some initial advertising. "New franchisees must lease or purchase their own white van "" depending on the model and age, this can range from $500 to $800 per month on a lease." Reid advises franchisees have enough working capital to see them through the initial phase of the business.
"This should be enough to cover normal living costs for the first four weeks given their earning capacity will be slow during the first months training." As with most franchises, there are also ongoing fees to consider. "The franchise licence fee is $600 + GST per month. There is also a support services fee which is calculated at five percent of all commercial work that comes to franchisees via our online job system." The term of the agreement is five years with the option to renew every five years after that.
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