United Home Services Franchising Questionnaire 2008

United Home Services offers cleaning, ironing, gardening and carpet cleaning business in various regions of Victoria, New South Wales and Brisbane.

Franchisee commitments:

Capital investment: $10,202 - $29,500 depending on the area and service selected.

Franchisee fee: $3265 - $23,000 depending on the areas selected. Ongoing fixed monthly fees range from $435.00 to $517.00 depending on the service selected. The franchisors do not take a percentage of turnover from our franchisees.

Advertising and promotions levy: Not applicable - Monthly fee covers all ongoing fees and charges other than stationary and supplies.

Length of agreement: 5 years

Hours of work: Generally our franchisees will work Mon-Fri 9-5 however some will choose to work a longer week to attain a higher income. United Home Services encourages our franchisees to work according the lifestyle they choose. Some will work Saturdays to do deliveries or extra work for their customers. As an example of the flexibility we encourage many of our franchisees will work Saturday but take Thursday afternoon off to play golf or spend time with family.

Franchisee support:

Training: United Home Services domestic cleaning franchise offers a comprehensive 6-7 day training program. The first three days are spent in house with our business trainers. The course includes all areas of running a small business and will cover issues such as;
Business Induction – vision, mission, core values and unique selling propositions. Occupational Health and Safety – the Law, obligations, duty of care and risk identification and management (safety plan). Business start up and registration – business structures, ABN, GST, business banking, insurance, business startup and equipment kits.

Business Administration – fees, reporting, business administration, customer administration and communications system, your territory and planning your work, vehicle and stationary, employer obligations, operating your business, quoting and service provision.

Marketing and Selling – regional marketing, local marketing, key perforance standards, tips and tricks to sell yourself, gaining more work and increasing the customer value, pricing and quote role playing.

During the three days we conduct tests at the end of each day to ensure our trainees have understood what has been covered and do continuous role plays to help them improve face to face interaction with customers.

At the end of the in house training we then send the trainee out with some of our longest serving and most repected franchisees for on the job training. This training inlcudes re-inforcing the customer interaction training and the”how to” aspects of the division they are operating. This training can last 2-3 days depending on the trainer. If the trainee or the trainer believe they are not ready we extend this period as necessary.

Forms of head office support: United Home Services operates as regional franchisors. The Regional Franchisor is generally available to franchisees and customer during normal business hours but will also be available in emergencys out of hours. Each region has the ability to manage customers and franchisees from their own region and offer support and/or advice whenever necessary.

Admin/payroll support: Administrative support is available during normal business hours and provided by the regional franhcisors. Generally payrol support is not required.

Centralised phone call system: United Home Services Australia operates and manages an online central communications system with a central call centre able to send out customer messages directly to the frnachisee or managers mobile phone. All regional franchisors have access to details of inbound calls within their own region and can manage the allocation or re-allocation of excess calls within that region.

Integrated IT: Online Call management system transmits customer enquiry information to franchisees andregional franchisors mobile phones. Regional franchisors have access to the online database to manage call allocation and reporting functions.

On the job:

Specialist equipment [part of franchise fee?]: Yes includes comprehensive kit including where relevant safety equipment. Ongoing product purchases are as cost to franchisee.

Proprietary branded products: No (considering in future)

Secondary revenue stream: Franchisees are encouraged to offer customers a small range of high quality products and achive a secondary income stream.

Insurance provided: Yes – $10,000,000 Public Liability Insurance included in purchase price up to the first anniversay date– ongoing annual insurance fees are at cost to franchisee.

Uniform: Included in Business kit, franchisees are expected to purchase new uniforms as required.

Company stats:

How long franchising? Current owner has operated United Home Services for 5 years. The business itself has been operating as a franchise since 1994.

No. of franchisees: 99 including Regional Franchisors at at 7/7/08

No of multiple units: 3

Highest franchise turnover 2007: Turnover is not measured by franchisors as we do not take a percentage of turnover fee from franchisees. However one of the Victorian franchisees boasts an annual turnover of $130,000. (Not audited)

Lowest franchise turnover 2007: Turnover is not measured by franchisors as we do not take a percentage of turnover fee from franchisees. United Home Services offers a flat fee structure.

Number of closures in 2007: No regional franchisors have closed their business in the 2007 year. Unit franchises closures are rare, most business are re-sold to a new owner as a going concern. However as an example of the low rate of closures the Melbourne Region had 1 franchise agreement not renewed when expired and 2 franchises that ceased to operate as at 30th June 2007. One of these was due to an illness.

Percentage of franchisee renewals after term: 95% in 2007/2008 year