James Home Services Australia is launching a new subscription model to lower barriers of entry to business ownership. The only one of its kind in Australia, the franchising subscription model was developed to help more Australians run their own business, with subscriptions starting from $100 per week.
CEO Rhiannon Simcocks said franchising needed a revamp in the current economic climate.
“Franchising has always enabled people who might otherwise struggle to start their own business to do just that by leveraging an established brand and processes to mitigate risk and reduce costs,” she said. “But, with rates rising, it’s getting more expensive to take out a loan to buy into a franchise, and fewer and fewer people have the cash in hand to purchase their business upfront.
“We knew we had to rethink our offering to continue making business ownership a possibility for Australians.”
How the subscription model works
James Home Services offers cleaning, gardening and other home services throughout Australia, particularly along the east coast. The new subscription model will be available first to those wanting to launch an Interior Cleaning business, with the goal of making the model available across the entire suite of services by the end of 2022.
Currently, a James Home Services Interior Cleaning franchise costs $26,600 to buy. The subscription model divides that price into manageable payments of less than half a per cent each week. If a new franchisee doesn’t have all the necessary equipment, an extra $25 a week will cover everything they need. Standard franchising fees are calculated as a percentage rate of the individual franchise turnover, and there’s also a $1,000 upfront investment.
Satisfying demand
The new subscription model is the most significant innovation in James Home Services’ 30-year history.
“This is a very realistic opportunity, to be a business owner for as little as $100 a week,” Simcocks said.
