Kwik Kopy print franchisees are holding their own in the downturn, recording a seventh consecutive year of growth through 2008. According to David Bell, managing director of the retail printing franchise, the current climate of economic uncertainty is providing opportunity for franchisees to increase their business share.
"In the current climate all companies are looking at their cost structures and considering what changes they can make to reduce costs," said Bell. "The industry is very fragmented which means that those who are fleet-footed are able to pick up business that others are not able to respond to quickly enough. Typically, when times are tight customers order shorter runs more frequently. Our franchisees are profitable, well-capitalised, have a strong support network around them and are successfully competing on price against the larger printers on this business, whilst the independents are often too small to tackle corporate needs."
Kwik Kopy Hilton (Adelaide, SA) franchisee Garth Anesbury said 2008 was a record year for his business. "In the last 12 months we have seen a growth rate of 17 percent, against 9 percent over the previous period. For the last five months including December 2008 we have had record growth, and that’s over the last 12 years of the business."
Annual benchmarking across the 109 Kwik Kopy business services franchises in Australia has shown a consistent increase in sales and profits throughout the group. "In 2008 we recorded a seventh consecutive year of record sales and profit. The results of our benchmarking prove that the Kwik Kopy Franchisor's commitment and focus on the sustained and increasing profitability of its franchisees is working and we are achieving great results," said Bell.
The findings of the Franchise Council of Australia’s biennial survey of the sector, announced late 2008, revealed business format franchised units represent some 3.7 percent of all small businesses in Australia and overall growth rate is 15.4 percent (up from the 14.6 percent from 2004-2006). Total sales turnover for the franchising sector was estimated to be $130 billion, a significant contribution to the Australian economy and the sector is extremely stable with 93 percent of franchising units remaining under the same ownership.
This article appears courtesy of 5 Minute Franchising Newsletter