Mister Minit

Why is Minit franchising shops as opposed to operating them with employees?

In a service business such as ours the motivation, energy and customer service of the individual operator is a critical success factor in the success of the business.  It is a generally held belief in the franchise sector that a person who owns the business and whose income is directly related to his own efforts will be more strongly motivated to provide excellent service with a resulting improvement in trading.

Will I earn more money as a franchisee than as an employee?

Minit cannot guarantee any returns to a franchisee. It is Minit’s hope that a franchisee who is motivated and enthusiastic will be able to generate a higher earning potential.  However the franchisee needs to balance the potential upside with the risk of operating its own business, and make its own assessment.

Why is Minit considering me as a franchisee?

Minit’s current preferred choice of franchisees are those team members who have a demonstrated history of successfully building a customer base and a good trading record. Minit believes those team members have earned the opportunity to have first right of refusal for any franchise opportunities.

How does Minit select the shops to be franchised?

It is Minit’s objective to franchise those shops where it reasonably believes there is a good trading potential and where it reasonably believes there is a good opportunity for the franchisee and the company to make satisfactory returns.

Under what entity should I own my franchise?

There are a number of options available to own a franchise including as an individual, company, partnership or trust. The most appropriate entity will depend on individual circumstances. It is recommended that you seek specific professional advice from an accountant or solicitor on this matter.

Can I have more than one franchise?

Yes, subject to performance and capability. Minit would prefer franchisees to be successful in its first franchised Mister Minit business before expanding.  You will need to obtain Minit’s consent before opening a new Mister Minit business.  Minit has certain criteria that a franchisee must meet before Minit will grant a further franchise.

Will Minit open up another franchise in my territory?

Usually a franchisee is given an exclusive right to operate a Mister Minit business in their territory, which is normally defined as the shopping centre they are in. If a new shop was to be opened in a different centre in the same geographical locality, subject to franchisee performance it is probable that Minit would offer the franchisee the option to purchase a franchise for that new shop.  However this is entirely at the company’s discretion.

What sort of advice should I get before committing to a franchise agreement?

Minit complies with the Franchising Code of Conduct and will provide a Disclosure Document, copy of the Franchising Code of Conduct, and copy of the Franchise Agreement at least 14 days prior to the franchisee committing to enter into a franchise agreement. It’s the Mister Minit Franchise Agreement is also consistent with the Code and other laws. It is strongly recommended that you seek independent accounting, business legal advice prior to making a binding commitment to enter into a franchise agreement.

What support do I need to run my franchise?

From a trading and operational perspective, Minit as the franchisor would be looking to provide you with support and a proven system. From a bookkeeping and tax perspective you should consult an accountant to ensure that your regulatory obligations are met. Your accountant should be able to provide you guidance regarding simple book keeping packages that are available.  You may also need to engage employees to assist you to operate the business.

How much money do I need to buy a franchise?

The initial up front establishment costs principally consists of a small one off fee, stock purchases and the costs of obtaining your own professional advice.   You will also need to provide a bank guarantee securing performance of your obligations (including payment obligations) under the franchise agreement.  . However you must have sufficient cash or credit facilities available to properly manage the business.

Under what terms do I employ staff?

The terms of employment are a matter for the franchisee and staff members. One cannot employ people for less than the relevant award. Some franchisees have employed their staff under the same terms as the Minit Enterprise Agreement. The incentive element (if it exists) varies by individual franchisee. However it is generally tied to shop profitability rather than just sales.

Where do I get public liability insurance?

This is a responsibility of the franchisee and would typically be purchased through an insurance broker. Alternatively Minit is prepared to cover individual franchisees under its group cover (so long as this facility remains available) on a cost basis. To date this option has been significantly cheaper than obtaining individual cover.

Can I sell my franchise?

A franchisee can sell its franchised business, but may only do so in accordance with the procedure set out in the franchise agreement. Minit must approve any sale and will only do so if the sale is to someone who has the requisite skills and satisfies Minit’s other criteria for franchisees.  (All franchisees must be accredited to Diploma of Excellence standard).

What happens at the end of the franchise term?

At the end of the term the franchise ceases. In general terms it would be the intention of Minit to enter into another franchise agreement with the existing franchisee subject to mutual agreement. However this is entirely at Minit’s discretion. Entering into a new franchise agreement will also be dependent on the willingness of the landlord to provide another lease under satisfactory commercial terms.

Do I as a franchisee have to negotiate with the landlord regarding lease terms?

No, Minit has specialist property skills and is focused on achieving the best possible outcome for the franchisee.

What information do I have to provide Minit?

There are certain reporting obligations under your franchise agreement.  Typically you will be expected to provide the same information and reports as you currently provide. This allows us to meet our obligations to third parties such as landlords as well as legal requirements. Importantly it also allows the opportunity to benchmark each franchisee’s performance. This assists in providing information to franchisees to assist in lifting their trading performance.

How do I order stock?

You will order as you do now on a monthly basis for A Stock or four monthly for the balance. ASR’s are also available for orders outside of cycle. Each franchisee is provided with a stock list with wholesale prices. Apart from covering its warehousing, administration and packing costs Minit takes no margin on the stock.

Can I purchase stock outside of the nominated range?

With the permission of the franchisor. It is important for the success of all shops that the offer is consistent and related to the core services. Generally permission will be granted for related stock such as engravable giftware. However Minit is very strong in protecting the Minit Brand and the purchase of stock as a substitute for Minit branded component materials such as key blanks and shoe materials would not be approved.

How do I organise my days off and holidays?

Staffing is a responsibility of the franchisee and your planning should incorporate this.

What if I cannot meet my fee obligations?

If a franchisee is having problems making payment he should bring this to the attention of Minit at the earliest possible time. It is in Minit’s interest to assist franchisees to be successful, and operational support will be given where required. Ultimately failure to pay the fees in accordance with the franchise agreement will result in a default under the franchise agreement and may even lead to termination of the agreement. Minit will call on the Bank Guarantee in the event that payments are not paid.

Where do I go if I need help?

Each franchisee has a nominated company representative as their first point of reference who is there to assist the franchisee. Additional to this representative there is specialist assistance at Support Office for other matters. These services are all included in the license fee paid to Minit. There is no extra charge unless there is a requirement to seek outside professional or legal advice.

How can I be sure that the information provided is Franchising documents are accurate?

The Mandatory Franchising Code of Conduct places very strict conditions on disclosure of Franchise offerings. The ACCC ensures that all businesses are operating to ethical standards.

Do I hold the Head Lease?

No, the Franchisor holds the head lease.

Does my Minit Franchise require me to be involved 24/7?

A Minit Franchisee must be hands on in their business and are responsible for their business. However, we also acknowledge that Franchisees must balance their time at work.

What is the length of a Franchise Agreement?

The upcoming Franchisee will take over the remainder of the agreement for that shop. The Franchise agreement is tied to the lease agreement of 5 years.