Directory
Mr Rental Franchise Featured
#1 franchise in Renew on topfranchise.com.au
#3 franchise for lifestyle and rewards on topfranchise.com.au
#3 franchise for lifestyle and rewards on topfranchise.com.au
Area: Home Appliances, Rental
Business Established: First store opened in 1991, first franchise in 2001
Units/Locations: 74
Initial Investment: $110,000
Agreement Terms: 10 yrs (5+5)
Training: 2 weeks in class room, 2 weeks in store, ongoing training, each store has its own business coach
Marketing Support: Local area marketing 3%, national marketing fund 2%, national TV and radio campaigns, local shopping centre displays and sponsorships
FCA Member: Yes
Awards: Mr Rental has won numerous national and international awards including winner of 2010 Australian Business Awards - Excellence in Marketing, winner of 2009 FCA Excellence in Marketing, winner of the FCA QLD Emerging Franchise System of the Year 2007 & 2008, national finalist in the FCA Media campaign of the year 2007 & 2008. Kerrianne Hickman was FCA QLD Franchise Woman of the Year 2006 and they were winners of the 2005 Family Business QLD (2nd Generation). Internationally Mr Rental Hamilton won the FANZ 2007 Franchisee of the Year (retail category) and Mr Rental were finalists in the 2007 & 2008 NZ Franchise System of the Year.
Multi-Unit Ownership Allowed: Yes
Average Set up time: 6-8 weeks
How many products or services: 40
Ratio of Support staff per franchisee: 1:3
Business Model:
Keeping it simple: 2-3 staff members in a retail outlet, the majority of enquiries come over the phone. Low rent locations are chosen. The model is based on recurring revenue. It's a predictable business. Working hours are 8am-5pm Monday-Friday which makes it lifestyle friendly. There is a strong working "on the business" focus for franchisees. Franchisees have access to a software program developed to manage the business and a benchmarking software
Main Costs:
Ongoing stock purchasing, rent, wages
Main products or services:
LCDs/TVs, freezers, dryers, fridges, washing machines, , computers, furniture, fitness equipment and more
Last Surveyed: April 2010
Participation Rate: 64%
Survey Results
Description
DescriptionMr Rental’s story started back in 1991 when the company was founded by Glen and Kerrianne Hickman on Bribie Island. 10 years later they decided to franchise the Mr Rental business with a vision to become “the world’s first choice in home appliance renting”. Within two years they had over 30 stores throughout Australia and New Zealand, growing to 74 stores today.Future Plans
“While the Mr Rentals management team are very pleased to be rated as the 2nd highest Franchise in the all important areas of “I intend to Renew”; and very highly in key areas such as “I would recommend the Mr Rental Franchise”, Work Life Balance, Ability to Sell Franchise, Business Systems, Information Sharing Systems”, to name a few; we are very focussed on improving our rating in areas where we need to improve, and in areas where we perform well against our peers, but our Franchisees do not always perceive this. We are engaged in: “Franchisee can Renew Early” – Our recent Franchise Agreement review incorporated the ability for Franchisees renew for extended terms at any time. “Provision of Training Opportunities” – We have just launched a multi tiered, ongoing, nationally recognised and funded training programme; to significantly boost access at all levels of our Franchisee’s businesses” “Brand Recognition” – A 5 year old brand will always play catch up. But our recent rebranding and the launch of national electronic media last year means we have, and expect to increase brand recognition by 10% PA. “Relationship Issues” – We have always had a strong relationship with our Franchisees. But, like all developing systems, we have recently experienced growing pains. We have put a lot of work this year into measuring “Franchisee Satisfaction” (this and another independent survey in 12 months); and improved FAC structures, communications tools (intranet forums, Franchisee Focus Groups, etc.) are starting to pay dividends. “Mentoring and Financial Guidance” – We have invested heavily in coaching our Coaches and in adding financial benchmarking and analysis to our detailed proprietary KPI systems. These improved skills and tools, (quality) will combine with the high direct contact and support ratios we maintain (quantity).
