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Choosing a franchise

Sarah Stowe

A top performing Hairhouse Warehouse franchisee, Tony Zoobi was named Multi-Unit Franchisee of the Year 2010 in the Franchise Council of Australia awards. So how did Tony finalise his choice of franchise system seven years ago?

“I looked around at about 10 different systems. My criteria was finding a system to accommodate my ambition, and one which entertained the idea of creating an empire within an empire. Hairhouse Warehouse had a few multi-unit franchisees who were already successful.”

Describing himself as “an extremely ambitious young guy”, Tony also looked for a system he could predict would grow significantly, make him the most money and take him furthest in his career.

The internet played a large part in his research. He visited online forums, searched to find business information, and any negative news related to the systems. But he didn’t leave it at that. “Expansion depends on branding, so it’s important to find a franchisor who is behind it. I called some of the multiunit operators to find out what sort of support they received and how easy it was to work in the system and be creative.”

Tony spoke to franchisees and visited stores to check traffic flow and what customers would buy.

Other important criteria he considered were sales turnover, franchiseesÕ bottom line and a strong leasing department. Tony Zoobi has built his business by watching his numbers.

“I look at the bottom line, the opportunity for sales within model. I wanted to find a system good for cash flow. Hairhouse Warehouse has so many different revenue streams, a basic infrastructure but one that was complex enough to challenge me.”