Franchise cleans up with focus on people

HOME and commercial cleaning services have again claimed the top spots as Western Australia’s largest franchises, according to Data & Insights.

This was despite fast food franchises making up 40 per cent of the state’s top 10, when measured by number of stores.

The list was led by the national franchising conglomerate Jim’s which, according to its website, franchises more than 50 services across the country.

Jim’s has 354 franchises in WA.

Jumping from third into second spot was Cleantastic Perth, a commercial cleaning franchise with 164 franchises operating in WA.

The growth and retention of WA franchises is significant vindication for the company’s director, Tony Kearney, who relocated to Perth from Melbourne in 2004 to get the west coast business off the ground.

Cleantastic is also one of the newest WA franchises on the list, behind only Zambrero at 10, which made its entry to the market in 2013.

“I still have franchises that started with us in 2005, so this shows we must be looking after them,” Mr Kearney told Business News.

He said the company had built a model of accessibility, and he prided himself on being the first person each new franchisee met at Cleantastic.

Low turnover at head office gave Cleantastic’s Perth franchisees confidence they would be dealing with the same people throughout their business journey, he said.

Availability of management was a key part of the business model.

“All of our franchisees have my direct number to call whenever they feel the need,” Mr Kearney said.

“I find that the extra personal service they receive from day one makes a big difference.

“They know the person they meet initially is the same person they will meet when they come back.

“This is of huge benefit to them. It’s about putting the franchisee before the dollars.”

In third spot on the list was Jani-King WA, with 142 franchises.

Dollars, specifically the outlay for franchise entry, makes an interesting comparison when analysing the Data & Insights top 20.

Services led by Cleantastic Perth dominate when ranked in order of barrier to entry, with franchising costs from $5,225 plus GST.

Fast food and cafes sit at the other end of the list, led by well-established WA coffee outlet Dome, which has 52 franchises in the state and a business entry point in the millions of dollars.

Food offerings remain a dominant presence in the Data & Insights list.

While unable to compete with the low entry point offered to franchisees at the top of the list, quick service restaurants are well represented.

That’s led by Subway, tied for third with Jani-King, despite the much higher franchise acquisition entry point.

Domino’s, Red Rooster and Zambrero each sit in the top 10, joined by Bakers Delight and Chicken Treat just outside it.

Craveable Brands, the parent company of Red Rooster, Chicken Treat and Oporto, has a combined presence of 122 franchises across its three brands.

As a relative newcomer, Mexican food chain Zambrero has bucked the trend with its rapid growth in the state since entry in 2013.

There are 54 Zambrero franchises in WA, up from 47 last year and placing it in the top 10 for the first time.

It’s an interesting outlier.

Outside of Coffee Club, founded in 2003, the common theme among food offerings in the top 20 is longevity in the WA market.

With the much-publicised proposed expansion of American fast food chain Wendy’s into the Australian market over the next decade, it could be a space to watch.

The oldest franchise with a presence in WA in the top 20 is hardware store Mitre 10 Australia, established in 1959, which rose from outside the top 20 last time this feature was published to sit 17th.

The only hardware franchise in the list, there are currently 41 Mitre 10 franchises in WA, with 36 outside of Perth and Mandurah.