You could buy a “low royalty” franchise
Seriously Addictive Mathematics (SAM) is a mathematics learning and enrichment program. Director Sonja Oosthuizen says franchisees are expected to allocate a percentage of their revenue toward local marketing to drive customer growth.
“Client referrals is the most effective way to the business,” she says.
“We believe that one good referral is better than 10 chest-thumping advertisements.”
As franchisees run their own centres, overheads include rent, utilities and other outgoings. Franchisees can work alone or employ training and administration staff. Franchisees should allow extra funds to invest in fit-out, marketing and working capital.
“Other than the competitive market forces, one of the major challenges is to be able to maintain the quality of teaching,” says Oosthuizen.
“This means we need franchisees who are not only passionate about teaching but also suitably qualified to deliver course content.”
On top of a Working with Children Check, franchisees are expected to become certified SAM trainers.
Oosthuizen says profitability is maintained by meeting a critical number of enrolments.
“Low royalties and contributions toward the franchisor maximise potential profitability for each franchisee.
“As a business owner, you have the flexibility to work around personal circumstances and lifestyle. You can scale up the business to the point you want it to be.”
Depending on location, the initial cost of a franchise is $10,000 and includes continuous development, training and support.
“We urge potential buyers to do their research well,” says Oosthuizen.
“They should not only ensure they are buying into a potentially profitable business, but that they believe in the product/service and that they will have the conviction to put their name and reputation behind the brand.”
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