Gary Shearer, founder and CEO talks about what’s involved in being a SafetyQuip franchisee.

How would you define your brand?

National distribution of workplace health and safety products and services.

How old is the company and when did you start franchising?

SafetyQuip began operating on the Sunshine Coast in 1992. The first franchise opened in Brisbane in 2001.

How many franchises do you have?

SafetyQuip has 14 franchises operating in all mainland states.

How many are multi-unit franchisees?

The SafetyQuip business model allows franchisees to expand their existing operation within their defined geographic territory without paying an additional franchise fee.

The current franchise model has enormous scope for growth without purchasing an additional franchise.

Where do you expect the business to be in 2010?

We are planning to increase our franchisee number to 16. Our ongoing focus is to assist all our franchisees to exceed $100,000 turnover per month.

What are the start-up costs for a franchisee and what working capital should they have?

Approximately $295,000.

What is the length of agreement?

The initial term is five years with two options to renew for a further five years.

What are the royalty fee and marketing levy?

There is a 5.25 per cent (plus GST) royalty fee. The marketing fee varies with the numbers of years in business – from $100 per month and capped at $250 per month.

What skills does the franchisee need?

No specific experience in the safety industry is required as we provide comprehensive training. SafetyQuip is suited to people who are organized, IT literate, outgoing and personal and comfortable in a sales and marketing role.

What will you teach them?

Our initial training covers safety subject knowledge, business management skills, sales and marketing techniques and business management software usage.

Training is ongoing including field visits from the head office staff.

What is the most common mistake made by new franchisees?

Having spent up to a year on the road building customer relationships, franchisees open their Safety Centre and at that time they slacken off in proactive customer acquisition believing that the customers will now come to them. It doesn’t work like this.