An Australian Franchisee Case Study
Name: Rod Poxon
Franchise: Jetts Caroline Springs & Jetts Melton
Why did you go down the franchise route? And why did you choose Jetts Fitness franchise?
I worked in the mining industry as an employee for 21 years before deciding that I’d like to be my own boss with more control over my life, and so become self employed. That was in 2001 when I purchased a mortgage broker franchise. I liked the franchised business model due to the lower risks involved, given that the franchisor can provide a tried and proven recipe for new entrants to follow. The first foray into franchising proved very successful, and that mortgage business was sold after 11 years for a substantial profit. I then searched for a franchised business model to invest in that involved less time commitment, so a business that could be worked on but not in. Jetts Fitness was identified as a good fit at that time, and so now two Jetts franchises are operated.
What did you do before taking up your Jetts franchise?
Geologist in the mining industry.
How did you raise the finance?
Bank loan and cash savings, after preparation of a detailed business plan.
What training and support did you receive initially and ongoing?
Prior to business commencement, I had several meetings with Franchisor staff to learn more about the fitness industry and how Jetts fits in. I then visited existing Jetts Gyms and interviewed existing franchisees. And finally, the formal Jetts owner training program was comprehensive and high quality.
What is a typical day for you as a Jetts Fitness franchisee?
- Business updates from my Gym Managers, generally via email
- Monthly reviews, and planning for the months ahead, including promotion
- Ordering of supplies, consumables, promotional materials
- Financial analysis and monthly financial summaries
- Overview of daily sales and daily usage statistics
- Visits to the Clubs and meetings with the managers and staff
What challenges have you faced?
Getting staff focused on the bottom line of the business has been a challenge especially as those that work in the industry tend to be very young and inexperienced.
Ensuring that staff understand the sales process and follow a sales system has also been challenging as has controlling and minimising costs, which have been escalating significantly.
Challenges also lie in maximising revenue in a competitive industry and within a business model where customer attrition is very high.
Has becoming a franchisee changed your life, if so how?
Yes, it has provided me with much more freedom and personal control, compared to being an employee. It has also provided an opportunity to learn many new business related skills.
What advice would you give to someone thinking of buying their first franchise?
- Do lots of due diligence, and talk to as many existing franchisees as possible
- Prepare a detailed business plan, including P&L forecast
- Evaluation the strength, quality and success of the franchise program
- Find out what emphasis the Franchisor provides on training and development of its people and franchisees
What are your plans for the future?
Remain in franchising until retirement. Optimise the existing business to maximise profit, thereby adding to their commercial values. Consider selling one business to wipe out debt – thereby keeping the 2nd business that is debt free, and that provides passive recurring income.
Would you do it again?
Request information on franchise ownership of