How would you define your brand?
Open, passionate, innovative and approachable; these are our four core values that we promote in-store. We all ourselves the “total gaming destination” as we are the only company in Australia that deals in everything to do with computer games and Anime.
What are your goals for the next 12 months?
We are revisiting busy shopping strips and shopping hubs as locations because they can show an excellent return on investment and the entry cost is about half that of shopping centres.
How old is the company and when did you start franchising?
Gametraders began in 2000 and our first franchise was opened 12 months later in 2001.
How many franchises do you have?
We have 32 franchisees and two company stores.
How many are multi-unit franchisees?
We have two multi-store owners.
What are the start-up costs for a franchisee and what working capital should they have?
For shopping centres the cost is in the vicinity of $400,000 with working capital requirements of approximately $80,000 depending on the personal commitments of the franchisee. For shopping hubs it is approximately $190,000.
What is the length of agreement?
Five years with one option to renew for a further five years.
What are the royalty fee and marketing levy?
They vary depending on the format but on average 3.5 percent for franchise fees and two percent for advertising fees.
What skills does the franchisee need?
Firstly the franchisee must start with a vision of a successful business then add in courage, passion and hard work to achieve the goal.
What will you teach them?
Just how important it is to follow our business model; our training program runs over three weeks and includes all in-store procedures. We also require our franchisees to undertake an extensive training program in cash flow management with Westpac called “beyond survival” and training in our POS and accounting systems.
What is the most common mistake made by new franchisees?
The most common mistake is not surprising really; very few franchisees really understand at the beginning just how hard you have to work to make a business successful.
Contact: Mark Langford
Ph: 08 8338 2557
Fax: 08 8338 4552
Email: marklangford@gametraders.com.au
Website: www.gametraders.com.au