OzSpy shakes up franchise model to be more flexible, ready to expand with 120 territories
Retail chain OzSpy has given its franchise model a big shake up, dropping the cost of the purchase price and turning the security solutions business into a more flexible opportunity for franchisees.
Now a new franchisee can invest in either a regional territory, priced at $25,000, or a metro territory, costing $35,000. There’s a $10,000 deposit required and there are interest free terms available over five years.
Director Craig Mitchell reveals he turned to franchisees in the network for their suggestions on improvements to the model.
“I asked our franchisees what would be the perfect franchise system and agreement, and worked from that base, so our new system truly is a franchise system, designed for and by franchisees,” he says.
Craig tells Inside Franchise Business “We tipped OzSpy upside down and gave it a good shake, then rebuilt it from the ground up, keeping the best aspects, and improving the rest.”
He describes the business as “Australia’s most new age franchise system, with less policing, and an easy exit policy”. Franchisees can give notice they intend to leave, pay a small exit fee and move on.
Changing the fee structure
Craig has also ditched a set royalty fee, choosing instead a cascading system that reduces the royalties down from 8 per cent to 0 per cent when the franchisee brings in $30,000 in monthly gross sales.
“Looking at all the models, this one is the fairest as a percentage based system by its design supports a franchisee if they have a bad month, compared to the franchisor favouring fixed fee systems,” he says.
Instead of paying a marketing fee, franchisees can now access the marketing assist program for free. This coordinates and set ups marketing campaigns under the franchisee’s account, allowing them to adjust the spend according to need.
OzSpy franchise model
Franchisees can choose to purchase a bricks and mortar store, or a mobile business (operating on a full or part time basis) and can opt to subcontract equipment installation or handle it themselves.
With some franchisees working full time, others semi-retired, the key to a good system is options, says Craig.
“We have found that people nowadays are not looking for a rigid system.”
New tools, new services
As part of the mega overhaul, an in-house software upgrade includes a mobile friendly quote-building platform.
A new franchising website allows prospective franchise buyers to learn more about the business in a hassle-free environment.
“We have also launched our new Bug Detection TSCM service focusing on domestic violence victims with car sweeping, and house sweeping,” says Craig. “This combined with our hidden cameras, own branded equipment, and speciality products, has given OzSpy points of difference.”
Ready to expand
While there are more than 120 franchise territories ready to sell across the country, once the state borders reopen, right now the focus is on Queensland sites which are most likely to be mobile, says Craig.
Territories are available in Queensland: Rockhampton, Ipswich, West Brisbane, South Gold Coast, Maroochydore, Noosa, Cairns, Townsville, Mackay, Gladstone, Gympie, Hervey Bay, Caboolture and Toowoomba.