Regal makes owning a small business easier!
Being a factory direct retailer of Australia’s best-made mattresses, our aim is to increase our distribution rather than make money out of franchise fees" Rob Simon, Regal Managing Director stated yesterday.
"I have been watching the fantastic growth of our business over the last 18 months and realised that supporting the right type of potential franchisees with an innovative fee structure, will help us grow whilst giving our franchisees even more profit moving forward" Mr Simon said.
Whilst most franchisors request an upfront fee, Regal mattress franchise has removed this fee giving franchisees more cash to operate their business in the vital start up phase. In conjunction with this, Regal has also altered the ongoing franchise fee structure so that franchisees have a real chance of making profit from day one.
"Our objective is to grow our points of presence and feed our factory with orders. We don’t rely on franchise fees for profitability and as such, we think we have come up with a model that is a real ‘win-win’ situation for both us and our franchise partners."
"The new innovative fee structure is simple and we are keen to share this with potential franchisees", Mr Simon said.
Moving forward, upfront costs have been simplified to the following model:
- $0 upfront fee
- $10 000 training fee
- $10 000 rolling credit towards stock
- Initial stock outlay*
- Cost of fit out *
- Initial advertising*
* These costs will vary depending on the site but are significantly lower than our competitors
The ongoing fee structure has also been simplified and is:
- 0% for the first $10 000 in turnover ($0 - $10 000)
- 10% for the second $10 000 in turnover ($10 001 - $ 20 000)
- 2% over and above $20 001
- Advertising contribution of $900 or 5% per week (which ever is greater)
Mr Simon expressed that "this structure gives us the opportunity to talk to more potential franchisees, the ones who have some cash and the right attitude and want to be part of a professional retail operation which ultimately enables us to partner with the right people."
Regal Mattress Outlets is a factory direct manufacturer of quality mattresses and by August will have 8 company and franchise stores in Melbourne. The business is seeking an additional 4 home services franchise sites in Melbourne. More information about Regal can be obtained from the company website.
Contact Regal Mattress Outlets
Tel: 03 9532 1003
Fax: 03 9532 0031
