The Future
Over the coming years Supanews plans to continue its rapid growth and expansion. The majority of this expansion will come from the acquisition of existing profitable newsagencies as well as slect few prime greenfield sites. The advantage of this growth strategy is that incoming franchisees are able to rely on historical figures, which helps ensure that franchisees and their advisers are better able to make appropriate business decisions.
The model is very simple. Supanews buys a newsagency at a negotiated price, which is based on the purchase multiple of the stores net profit. It then uses an independent accountancy firm to do the financial due diligence with a strong focus on the verification of the turnover and profit. When Supanews takes possession, it then installs its own systems and implements the Supanews fit out to get its corporate “look and feel”, typically spending $170,000 to achieve this.The store is then offered for franchise on the similar multiple that Supanews purchased it for, based on the new profit of that business as a full model franchise with all associated fees factored into the purchase price. The prospective franchisee is able to complete their own due diligence of the business having access to the entire original due diligence data.
The model is very simple. Supanews buys a newsagency at a negotiated price, which is based on the purchase multiple of the stores net profit. It then uses an independent accountancy firm to do the financial due diligence with a strong focus on the verification of the turnover and profit. When Supanews takes possession, it then installs its own systems and implements the Supanews fit out to get its corporate “look and feel”, typically spending $170,000 to achieve this.The store is then offered for franchise on the similar multiple that Supanews purchased it for, based on the new profit of that business as a full model franchise with all associated fees factored into the purchase price. The prospective franchisee is able to complete their own due diligence of the business having access to the entire original due diligence data.
It is envisaged that by the end of 2010, Supanews will grow to between 60 and 70 stores and serve over 17 million customers per year.
Supanews plans to grow to over 200 stores, servicing over 50 million customers a year by 2012 and alwyas strives to be one of Australia's best retailers.
Key to this objective is the constant development and improvement of the business model and retail offering.
Supanews aims to be the benchmark for all other newsagencies and this will be attained though the strength of the system, our strong supplier relationships and the motivation and enthusiasm of our talented franchisees.
Supanews plans to grow to over 200 stores, servicing over 50 million customers a year by 2012 and alwyas strives to be one of Australia's best retailers.
Key to this objective is the constant development and improvement of the business model and retail offering.
Supanews aims to be the benchmark for all other newsagencies and this will be attained though the strength of the system, our strong supplier relationships and the motivation and enthusiasm of our talented franchisees.