Spring FG pursues franchise-based expansion
Spring Financial Group has declared its intention to roll out a financial planning franchise model based on its graduate academy and centralised business model.
The company's founder and managing director, Keith Cullen told the annual general meeting on Friday that Spring FG would begin the rollout of its first franchise outlets from mid-2016, with its first locations being in key regional markets and capital city fringe markets not readily served by its offices in central business districts.
"From mid-2016, we will embark on our most ambitious expansion program to date, as we commence a rollout of franchised outlets that will see the Spring brand expand across Australia," Cullen said.
He said the goal was for up to 10 outlets by the end of the 2017 financial year, with a vision for 80-100 outlets across Australia within a five to eight year period.
Cullen said the company's modelling was based on minimum annual revenues of $1 million per outlet, with a pre-tax contribution per outlet of around $350,000 expected.
"Over time, we will expand our footprint across our capital cities to improve the ease of our customers accessing our services by taking our brand into suburban commercial hubs," he said.
Cullen's formal presentation to the annual general meeting noted the manner in which he believed its centralised approach to recruitment, training and the delivery of technical expertise, lent itself to supporting a broad geographic network of offices.
He said that rather than "branding" existing accounting, tax and mortgage outlets of independent third-parties, Spring's franchise model is based on green-fields opportunities, ensuring each franchisee has complete alignment with the company's fresh approach.
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