Navigating through a New Franchise Purchase? - Here is what to look for …

Alan Dean
General Manager - Sportzing

We put Sportzing Court Care Services Under the Microscope..
 
Purchasing a new Franchise is a life changing decision, so when deciding how you will spend your life for the next 5 - 20 years you need to make sure that a number of indicators are being met.
 
Eden Exchange put the microscope on a tennis court maintenance Franchise called Sportzing, and assessed how they rate in terms of value. The list below is by no means complete, but works very well as a starting point. 
 
It is a growth market?
 
No use buying into something that is not going to provide growth. Researching this should be a big part of your due diligence process. When we researched Sportzing (tennis court maintenance Franchise), we looked into the growth of tennis in Australia.
 
We found reports from Tennis Australia (2015 - 2016) that quoted 319 new or reconditioned courts built in the past 12 months with a total of 2154 courts delivered as part of Tennis Australia’s National Court Rebate scheme. Tennis at junior levels is also immensely popular. From this information we can ascertain that demand from the Tennis industry is a growth vertical, so Sportzing scored very well here.
 
The Australian Bureau of Statistics Website can also help out with research. For simple enquiries there is the hotline.  Call 1300 135 070 and they will help you with information like the population in your particular territory and information on your target market.
 
The ABS also publishes generic reports like their ‘typical Australian’ study. Another great source of information is the ANZ Business Insights website, it has excellent information on the competitiveness of your business.  
 
How easily is the Franchise replicated?
 
Buying a great Franchise may mean a great brand name that can not be copied. In our examination of Sportzing, we found that although the brand did not have a household brand name, they are highly regarded and well known within their field and market and had developed specific patented tennis court servicing machinery.  The type of services Sportzing provides its tennis court owners could not be provided by any other competitor.
 
As a further point of uniqueness, Tennis Australia awarded Sportzing official approval of their servicing techniques and practices in 1994. There was no higher endorsement in that industry.
 
Is it a ground floor opportunity?
 
The Franchise world is full of stories of simple ideas that made people rich because they were at the right place at the right time. This one is hard to quantify, but the indicators should be factors like access to management and owners; and size and exclusivity of the territories.
 
According to Sportzing, the business anticipates having new Franchisees set up in WA, SA and Tasmania, and also expanding existing territories in Victoria and NSW. For a Franchisee these are sizeable chunks of geography to own, with only 14 new areas available in Australia. For new Franchisees there is a full three weeks of intensive in-house and on-site training. You will also have direct access to the owners as you build your business. This is gold as the right business mentor is a critical for you to excel in any new venture.
 
Is your Franchisor prepared to give you the entire list of Franchisees to talk to, not just the successful ones?
 
This is a litmus test for any new Franchisee. Phone calls to current Franchisees should be part of your due diligence process, but a bad call may not necessarily mean a bad opportunity. Perhaps the Franchisee in question was not driven enough, or just wanted to buy a job. It is important to delve deeper in these conversations whilst always being respectful. Sportzing was very transparent with the entire list which was reassuring.
 
Does the Franchise opportunity really fit your personality?
 
Working in an outdoor business is very different from working in an office. A Franchise like Sportzing means that you will be spending time outdoors with the elements, maintaining tennis courts, which is a physical process. The hard questions have to be asked...can I do this? Would I enjoy it?
 
With any Franchise, you need to be able to spruik your business, your income depends on it. So personalities that do well are those that can go out there and meet people and get known to their customers.
 
Sportzing provided great examples of people taking on a Franchise after years in the corporate world and being really successful. Scott Askew’s story can be seen here. Other Franchisees have been in their businesses for long periods of time.
 
Overall, Eden Exchange was very impressed by the Sportzing opportunity. Given the value and IP on offer, the purchase price of $49,950 is affordable with the accompanying Franchise fees also very reasonable. 
 
Some things we note, in comparison to many on many franchises on offer:
  • No leases
  • Low fees
  • Low buy-in
  • Excellent value
  • No staff needed
 
Sportzing ticks all of the boxes pointing to a lucrative opportunity, but also includes many valuable intangible qualities, like the support and access to the directors. If you love working outside and want to look for a niche market that is very well defined and growing, you need to look into Sportzing.
 
Sportzing is now recruiting new Franchisees around Australia.
 
For simple enquiries, you can call their hotline on 1300 135 070 and they will help you with information like the population in your particular territory and information on your target market.
 
For media inquiries or to arrange an interview please contact Eden Exchange on +613 8658 2292 or +612 8880 5535.


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