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You could buy a pool franchise

Sarah Stowe

Owning a home with a pool is part of the great Australian dream.

But what about running a pool business? Well, we’ll let the numbers speak for themselves: across the country there are 1.2m pools installed in backyards; 25,000 new pools are built each year; the pool aftercare business is worth about $1.5bn in retail sales.

An indication of how the pool business is forging ahead is Narellan Pools’ new manufacturing space opening in January in Picton that is three to four times the size of the previous New South Wales base. There is room to expand further on the site and include R&D facilities.

Manufacturing and shipping is handled from a number of interstate bases, each pool delivered by road. The workforce has grown too, and the reach of the franchised units around the country continues. With 27 franchisees there is room for just another 20, CEO Peter Baily predicts.

There’s an export market in New Zealand which is growing, and the development of a global business through joint ventures around the world (with local manufacture) is a significant step. Canada is next in line.

“We’re very strategic about international growth. We have done lots of homework, thought out the strategy and the model we will provide. Every system we’ve built we think, how can it work overseas?

“In technical terms, quality and share of market for fibreglass pools, Australia leads the way,” Baily adds.

Narellan buys resin and glass locally. Everything is Australian-made. A pool takes three days to install, says Baily, and each pool comes with a 25 year warranty.

In the past franchisees have been the in-stallers and they’ve had the requisite construction skills. Now though the company is looking to grant franchises to more sales-minded individuals, professionals who have a passion to own and drive a business, and who have leadership skills.

“The best franchisees have teams of sales people and installers. They are two very distinct processes,” says Baily.

The franchisor provides lead generation, so it’s fairly easy with the right set of skills to sell to clients, he says.

“This is a business where you can get in really cheaply, you only need a computer and a few tools. You don’t have to be a builder.”

Servicing the dream

Once the pool is installed, then it’s time for a business like Poolwerx to step up.

About 30 percent of pools are serviced on a regular basis says founder John O’Brien, that’s one a month.

“It’s a day time business. People like coming home to have their pool fresh and clean.

“We’re in the business of people having fun under the sun in their own backyard.”

Poolwerx too looks for a more professional profile in its franchisees than when the business started out. While the business has been built on pool servicing, and entry level franchisees can still be a man in a van for a year, a retail store is an integral part of the business model.

“We’re a hub and spoke model. The typical franchisee will have a store and three vans, and a $1m turnover. Now we look for middle managers with the capacity to run a million dollar business.

“We want leadership skills and a strong drive to achieve. You can hire in technical knowledge and service,” says O’Brien.

Technicians can learn the skills required at the company’s Queensland headquarters which houses a world-class training facility.

Two fibreglass pools are set above ground “with every bit of technology attached”, says O’Brien.

Much of the focus has been on residential but commercial clients account for nearly one third of the Poolwerx business. This can be divided into six categories: real estate, hospitality, hotels, strata units, institutions, federal buildings.

The franchisees could also find themselves working with pool builders and on insurance claims, a clear advantage of having a countrywide footprint that can cater to national firms.

The apartment trend is favourable for the pool sector as well. “Every apartment block has a luxurious pool,” says O’Brien, and a licensed business like Poolwerx is best placed to fulfil the strict health and testing regulations.

O’Brien has been instrumental in establishing in Australia a national accreditation for technicians, and this helps franchisees attract staff looking for a career path, he says.

“Franchisees can bring someone in and groom them to become a store manager.”

Like Narellan Pools, Poolwerx sees potential overseas. “We’ve bought four brands in four locations in the US. It’s about conversions right now. We’re very optimistic, and are aiming for 300 stores in five years.”

Importantly for the Australian franch-isees, O’Brien believes in finding the next opportunity for growth or an extra income stream.

“About 80 percent of pools are now more than 20 years old. There is a massive need for renovation, particularly as baby boomers move into apartments and a younger generation moves into a family home.”

Renovating a pool can be a $20,000 investment and can include lining the pool, painting, tiling, tiling the surrounding area, putting in a new deck, updating equipment.

Read more: Why pools have potential if you want to buy a franchise.