The S2M2 franchise has established 12 outlets from Joondalup to Mandurah since expanding its importing, wholesaling and distribution business into a vertically integrated retail chain just more than three years ago.
The S2M2 franchise has established 12 outlets from Joondalup to Mandurah since expanding its importing, wholesaling and distribution business into a vertically integrated retail chain just more than three years ago.
Started by Stanley and Maureen Sebastian in November 2003, S2M2 offers consumers a wide range of products, branded under the ‘digital lifestyle’ sector.
Stocking everything from printers and printer cartridges, to computer accessories and digital office supplies – all from a sole-operator kiosk – S2M2 seeks to offer a one-stop shop and an experience unlike anything else in the current marketplace.
After opening its first outlet at Whitford City shopping centre in 2003, the chain rapidly grew to five outlets, before the founders made the decision to go into franchising to aid the company’s expansion.
Developing the business into a franchise was part of the founders’ original plan, according to Mrs Sebastian, but they decided to trial the business and the market first before venturing down the franchise path.
“We did a number of years of study into franchising systems, locally as well as internationally,” Mrs Sebastian told WA Business News.
The owners then engaged consultancy group Franchise Alliance for assistance, which started by undertaking a case study on the business, assessing its suitability to a franchise model.
Eight months later, once the case study was finalised, S2M2 had already grown to 12 outlets.
With the case study giving the company the tick of approval, the transition began in September 2006.
Mr Sebastian describes the transition process to a franchise as a nightmare, which was made somewhat easier by the assistance of Franchise Alliance.
“Going through this process, working through from starting up the shops, then calling in Franchise Alliance to help us model our vision, which was to get franchisees throughout Australia, was a very long and tedious process,” he said.
This process involved almost 18 months of meetings between the Sebastians, Franchise Alliance and the company’s lawyers, Downings Legal.
Going through all of the company’s accounts, Franchise Alliance then devised a financial model for the franchise, including all fees, bringing in its extensive market knowledge and experience.
Since September, a total of four S2M2 outlets have become franchisee owned, with a further three to be finalised in the coming weeks.
The demographic of the S2M2 franchisees is broad – from an 18-year-old former employee to an engineer, a marketing manager and a business manager.
Their franchise model, which was developed according to the founders’ vision, encourages proactive franchisees who are able to contribute to the growth of the business.
“We believe that, as a franchisor and a franchisee, it is no longer an employee and staff relationship; it is a team relationship,” Mr Sebastian said.
“So a franchisee – a person who invests their money into our business – must be confident enough, and also has that right to say ‘I think we should do things like this now’.”
This open and highly interactive relationship has also allowed the franchisees to be the company’s eyes and ears out in the marketplace.
“Our franchisees are owner operators so they are involved with the running of the kiosk, and they see a lot more than head office would see sitting here,” he said.
Going forward, S2M2 has an ambitious, but attainable, growth plan, as outlined in the Franchise Alliance model.
If the company keeps growing along with the forecasts, it should be on target to reach 227 franchises throughout Australia in 10 years.
This expansion will start with regional WA, before and working its way across the country, Mr Sebastian said.’
