#SAFranchiseFriday featuring The Drain Surgeon

BACKGROUND
The Drain Surgeon Franchising Africa (Pty) Ltd has been franchising since 1989 and through the years has established many successful businesses that still operate today.

In support of the strategy to expand their franchise footprint, their ‘old’ franchise model was dusted off and invigorated with new technology and offerings to support their franchisees. The new franchise model allows for an investor or lifestyle entrepreneur to invest in a maintenance plumbing business at a low entry cost and with minimal investment in office infrastructure.

THE CONCEPT
The Drain Surgeon franchise system allows a would-be business owner to establish a maintenance plumbing business with little to no knowledge of plumbing and requiring limited infrastructure. With a small initial investment in tools, training and marketing material and with the backing of the well-known Drain Surgeon brand and their unique franchised methods, the business will be operational in no time at all.

The National Call Centre (NCC) provides franchisees with a 24/7/365 professional call centre service. All calls are received by the NCC and the jobs are logged and parked on the work order queue for dispatching by the franchisee. Franchisees do, however, have the option to request that the NCC dispatch plumbers on their behalf.

The plumber receives the job details on the mobile app, where he can access the route via GPS, as well as invoicing, payment system, stock management, quality control tools, images and forms management functions.

Franchisees must provide safe overnight parking for their vehicle, oversee the execution of the local marketing plan, and perform basic business management functions such as debtor collections and creditor payments. With the system seamlessly integrated into the Sage One Accounting system, administration is easy and efficient, and the information is available online in real time. Other tasks include ensuring that the team(s) are neatly dressed and presentable, equipment is neat and clean, and the vehicle is stocked.

FRANCHISOR SUPPORT
The franchisor assumes responsibility for the NCC as well as managing the systems used to facilitate job dispatching, invoicing and related services. The franchisor has the required quality control processes in place and there is also a team of experienced managers available in the event of technical queries. While the franchisor also drives marketing initiatives, training, group deals, system improvements and protection, etc., the franchisee is responsible for executing the localised marketing plan with the goal to establish themselves as the preferred neighbourhood plumber.

FRANCHISEE PROFILE
While this opportunity is aimed primarily at investors who want to diversify their portfolio, or lifestyle entrepreneurs who would like to set-up a small, home-based maintenance plumbing business to earn additional income, there is also an open invitation to existing plumbing companies who would want to become part of the brand.

SNAPSHOT

HISTORY
Founder: Glenn Pratt
Year founded: 1979
Area of origin: Pretoria, Gauteng
CEO: Glenn Pratt

NETWORK
1st SA franchise opened: 1991
Number of SA: outlets 11

FRANCHISE AGREEMENT
Royalty fee: 12.5% of turnover
Marketing fee: 10% of turnover
Management fee: Available on request
Agreement term: 5 Years
Renewal term: 5 Years

FINANCIALS
* Amounts quoted are VAT exclusive
Establishment cost: R250 000
Franchise joining fee: R75 000 (incl in set-up cost)
Working capital required: R50 000 (incl in set-up cost)
Total average set-up cost: R250 000 (plus leased vehicle)
Average monthly turnover: R120 000
Achievable gross margins: 58%

WANT TO KNOW MORE?
Contact Ben Booysen on +27 12 443 5000 or ben@drainsurgeon.co.za
www.drainsurgeon.co.za