Top value franchises listed by AFR Smart Investor

By Sarah Stowe | 06 Nov 2015 View comments

Home services franchise VIP has been listed as the franchise system with the highest score for value under $50,000 in the December issue of Financial Review's Smart Investor magazine.

Given an 84 percent rating by the magazine the 30 year old franchise system offers franchisees a total capital investment of $35,000. Founder and chairman Bill Vis said "While we know that we have a good system, it's great to be recognised through an independent study as the best franchise system under $50,000.

"Since finishing number two last year, we have implemented new changes to our system, including the introduction of a website giving franchisees the opportunity to showcase testimonials, photos and information about themselves to their own area incorporating the latest in Google map technology."

Keeping VIP company are Superfinish Express and The Shed Company, with an equal score of 77 percent, and Aussie Pooch Mobile listed at 73 percent.

For potential franchisees looking for an initial investment of $50,000 to $150,000, Jim's Test & Tag at 76 percent, and Cafe2U at 75 percent, are highlighted by the magazine.

Snap-on takes best value slot for the $150,000 to $300,000 investment category, and scores the highest overall with an 89 percent rating.

Domino's Pizza Enterprises and The Coffee Club are listed as good value investments over $300,000, rating 88 percent and 80 percent respectively.

The article included national brand, a well established system, competitive capital outlay, low borrowing requirements and bank accreditation, low ongoing fees, a long agreement term and competitive expected franchisee turnover among the necessary standards for its best value rating.