Snap-on Australia has introduced the Snap-on Gateway Programme. For qualifying prospective franchisees Snap-on will finance the franchise fee, consign the inventory as well as finance a percentage of the necessary working capital, together with renting them the mobile store. If we feel that an individual has all the makings of becoming an outstanding franchisee then we will get them into business.

Why do we do this? Well, Snap-on has accreditation under the franchise-specific finance programs offered by all of the major banks, yet some prospective franchisees still struggle to obtain finance.

There can be a variety of reasons for this: typically insufficient equity in the family home when valued by the banks is a very common one. Also of concern is the length of time it takes to go through the banks’ processes before funds are available to be drawn down.

We have some vacant territories in NSW and Victoria where we are unable to service our customers and there is nothing worse than customers who want to buy our products but are unable to purchase them. So if we have the right franchisee in these territories but finance is a hurdle then it makes sense for us to help them.

The potential franchisee does have to access to about $30,000, but if we feel they are the right person for our business and they are passionate about joining the Snap-on network we will arrange the balance.

Elsewhere in the world Snap-on subsidiaries have access to Snap-on’s own finance company Snap-on Credit for the finance of franchisees. We have not had access to this in Australia and New Zealand but it is coming … the corporation is actively working to meeting all the local criteria so that we hope to be able to offer Snap-on credit towards the middle of 2011.

Money isn’t everything

ThatÕs why we have the Gateway Programme. And because some potential franchisees perceive that a Snap-on franchise is a very expensive system to join, any number of them can disqualify them_ selves without even making an enquiry.

The truth is it’s a great value franchise system with no royalties or advertising levies payable. It is a departure from the more conventional franchise fee structure due to Snap-on being the product manufacturer; we sell the products to franchisees who in turn sell to the customers.

All the training, plus the associated costs, including air fares, transfers, meals and accommodation are covered by the initial franchise fee.

So we want anyone who thinks that Snap-on may be the right business for them to contact us, come in and talk about the options and possibilities.