Franchising

Franchise Opportunities

Experience Counts

Aussie Disposals have successfully traded for more than 46 years and in that time there have certainly been some tough economic times and we have seen many of our opposition close their doors. In 1980 a decision was made to embark into franchising and in those days, franchising was relatively new in Australia following on the back of American ideas. This has resulted in Aussie Disposals now having over 20 years of successful franchise retailing behind them and there are not many other retailers who can attest to this.

Although experience is not everything in retailing, it certainly is a comforting fact to know that an icon like Aussie Disposals has plenty of experience to look back on as they move forward.

The Misconception

There is a common misconception that occurs with some people who are not sure about Aussie Disposals and what they do or sell. One of the most common misconceptions is that people believe we only have Ex-Army gear in our stores and some believe we are even owned by the Army! It is true that in the early days we did have a majority of surplus products, however now the stores have 90% new products predominantly camping, clothing, footwear, workwear, fishing and four wheel drive gear as well as ski gear.

Army Surplus is still found in our stores and in fact we would still carry the best range of surplus products in Australia even though this part of our business represents around 7% of our total turnover currently.

Franchisees currently within the system realise the uniqueness that surplus brings to our stores and this is one of the big differences between Aussie's and the opposition. Our buyers still travel to far reaches of the planet looking for surplus bargains and we will continue to carry these interesting and unique products forever, knowing realistically that this part of the business will remain even though relatively small as a percentage of our total business.

"Ex-Army Products Made To A Specification Not A Price"

Marketing Concept

Aussie Disposals is the best known disposal store in Australia and deals with over half a million loyal customers each year.

This loyalty has been built from over two years of continually advertising across all mediums. Our most successful form of advertising so far has been via catalogues. We drop in excess of one million catalogues at a time and find that this type of saturation into customer's homes is both efficient and cost effective.

We provide a specific amount of catalogues to each franchisee based on turnover; free of charge and any requirements over and above this are at franchisees costs. Distribution is at franchisees cost also.

Other forms of advertising are T.V., radio and press as well as magazines and individual marketing campaigns and promotion with individual territories.

All the necessary information and mock-ups of advertisement are produced via our in-house marketing department at no charge to the franchisee.

Financial Requirements
There are three ways of looking at this, one is a "green site" that is a start from scratch scenario, or secondly, a buy out of an existing franchise operation, or finally, the buy out of a company owned store. Below are the details of each individual scenario.

1. Green Site
   Capital required between $150,000 to $250,000
   Included in this amount
   - Stock
   - Signwriting / Signage
   - Fixtures and Fittings
   - Franchise Fee
2. Buyout of existing Franchise Business
   - These range dramatically as with any business on turnover, profitability, suitabililty, location and of course good will.
   - A range for indication only is between $150,000 to $350,000. This is based on sales of business over that last 5 years.
   - These figures above are all inclusive and include stock in trade
3. Buyout of existing Company Owned store. This is similar to point 2 and the price range is virtually the same, and again is an all inclusive price. We are proactive with our company owned managers on this level and have already sold some existing company owned stores to managers and other executives within the company. We believe there is no better opportunity than to buy a business that you know and have actually worked in for several years.
   N.B. All above examples do not include working capital from the time you commence trading, an effective overdraught facility needs to be in place for this.

The Fees

• The franchisor charges a flat 11% royalty which is charged on gross sales excluding G.S.T.
• The franchise fee of $25,000 is a once off fee but does not get charged in the sale of existing franchise.
• The franchisor does not charge an advertising levy.
• Advertising is produced corporately with catalogues, T.V., radio and press.
• However local distribution is at franchisee cost. A percentage of free catalogues is given to franchisees based on a formula identical to company owned stores.

Testimonials
These are testimonials from some of our existing franchisees.

We have been Franchisees of the Bairnsdale store for nearly 5 ½ years. We have been happy to resign for another 5 year contract. The business has been running in Bairnsdale for over 30 years, with only three business owners in that time. It is a well established business in our town. The ethics of the business, with promoting good service to customers appealed to us, along with good teaching from Franchisors. Over the past 5 years, we have been encouraged and taught to run our business to achieve increase in sales weekly, monthly, yearly. This business works well as a husband wife team, partnership with plenty of interest for both parties. The products we sell are certainly of appeal to the public and also such a variety keeps us all interested. We find communication between Franchisors and Franchisees open and responsive. Director, Buyers and Staff of the company are always available to communicate with Franchisees. We see the future as a bright and positive one.

AUSSIE DISPOSALS FRANCHISEE
BAIRNSDALE

An Aussie Disposals franchise offers the opportunity to enter into a system, where you receive the support of Directors, Executive and team members, that have the combined experience of over 40 years in retail.

Aussie Disposals is a unique company, successfully selling an interesting and diverse range of products.

We are more than happy with our own store and have found a balance in our personal life as well as financial security, which we all strive for.

AUSSIE DISPOSALS FRANCHISEE
BENDIGO
Mal & Jacinta Heavyside - Franchise owners of Aussie Disposals, Bendigo store.

40 Years of Good Will and
OVER 20 YEARS OF
FRANCHISING SUCCESS
If you require more info about sites or our Twenty Years of successful Franchising, contact:

Mal Walford
Franchise Director

Phone: 9799 5777 Fax: 9799 5755
mal.walford@aussiedisposals.com.au
PO Box 121 Hampton Park, VIC, 3976