Once you have decided a franchise is the way forward to reach your personal, financial and career goals, choosing just which system to invest in becomes the essential step. Investing about $400,000 will more than likely lead you to a retail based franchise system, and all the challenges it entails.

Retailing is a business with its own appeal, and while not everyone warms to the demands of the opening hours, managing stock and staff, constant customer interaction, and weathering the ups and downs of the consumers’ spending habits, for those who enjoy the engagement, retailing can be immensely satisfying. Add to this the benefits of being in a franchise network, with a support team behind you and the experience of other franchisees to guide you along the way, and this might be just the option.

One retail outlet that attracts regular customers is the newsagency; according to the franchised Supanews chain, more than 80 percent of the Australian population visits a newsagency once a week. And according to Business Review Weekly (Mar 25, 2008), newsagents handle 80 percent of magazine sales and 45 percent of the nation’s gift card purchases.

Supanews sites stores in high traffic locations like shopping malls and transit centres and plans to grow its network to 60 stores by the end of this year, with a goal of more than 200 outlets by 2012.

Supanews

Number of franchisees: there are 36 franchise stores and 13 corporate stores.

Franchise cost: no initial upfront fee.

Set-up costs/vehicle loans: start up costs from about $250,000 plus stock dependent on net profit derived to franchisee or if a Greenfield dependent on start up cost.

Working capital required: typically between $40,000 and $50,000.

Marketing and royalty fees: royalty of six percent for general sales lines and one percent for commission lines. Marketing fee of 0.5 percent of general sales only.

Income guarantees: none

Average franchise turnover financial year 2009 to 2010: this is dependent on the store a franchisee buys. A typical range would be between $1.5 and $2.5 million in turnover including commission lines.

Term: five years with two options to renew for a further five years.

Opportunity for multi-units: yes, we have multiple operators.

Percentage of renewals June 2009 to June 2010: two.

Number of closures June 2009 to June 2010: none.