Aussies flock to become franchisees amid coronavirus jobs crisis
As hundreds of thousands of Aussies remain jobless due to the coronavirus-induced shutdown, many are flocking to one particular business sector to re-enter the work force in a brand new way.
VIC News
Don't miss out on the headlines from VIC News. Followed categories will be added to My News.
More Australians are moving to set up their own businesses like garden maintenance as the franchise industry booms amid the coronavirus pandemic.
Franchise operators such as Jim’s Mowing are reporting big spikes in inquiries and sign-ups from people who have lost their jobs or who are mulling a career change during the shutdown.
The Jim’s Group had 601 mowing franchise inquiries in May – up from 327 for the same month last year.
Handyman inquiries more than doubled to 134, while there were also big increases for businesses like fencing and pest control.
Group founder and owner Jim Penman said interest in franchises had gone ballistic.
“So much of the economy is cactus, in terrible trouble, but we have masses of work,” he said.
"People are not spending money on restaurants and travel, but those working have got money for other things like garden maintenance.”
Mr Penman said that people interested in a franchise needed to have some business sense.
“We are cautious of young men under 25 because of the high failure rate, but those aged 50-plus are fine, especially as it’s hard finding a job in the older bracket,” he said.
“We train and weed out people, and have a very high strike rate. There is millions of dollars of business opportunity out there – people just want a good service.”
Another franchise attracting strong interest is home care and disability services operator Just Better Care.
Development manager Andrew Lyme said the number of monthly inquiries this year had doubled compared to the same period in 2019.
“We’ve had some who lost their jobs and others reconsidering where they’re heading, such as looking at business ownership,” he said.
A Just Better Care franchise costs around $250,000 to set up, including capital expenses, as the health care sector is highly regulated and the work requires significant skills.
Claire Kunc, who runs a Just Better Care business for Melbourne’s southeast with husband Christian, said the work included in-home support for the elderly and disabled, meal preparation, shopping assistance and cleaning.
“The franchise offers flexibility to develop business the way we want it, but to also have the support of head office,” she said.
The couple have 65 field staff and five in their Mentone office.
Chris Taylor, from Aussie Pooch Mobile Dog Wash and Grooming, said the pandemic had changed people.
“What’s happened is people have slowed down, which has allowed them to reassess their lives,” she said.
“They are looking at what they might enjoy and being in control of how much they make and what they do.”
An Aussie Pooch franchise costs from $15,000 plus equipment, with more expensive packages on offer.
THE GRASS IS GREENER FOR JUSTIN
When group training manager Justin Green was made redundant due to the pandemic, he opted for a new work direction.
Mr Green, 42, swapped his white-collar lifestyle to get down and dirty as a Jim’s Mowing franchisee.
“Ive always enjoyed gardening, and it was a chance to review where my life was going,” he said.
Mr Green said he always enjoyed customer service during his career, although doing it now as a blue-collar worker was a tad different.
“I’ve been building up a client base, I like the fact that everything you put in you get back,” he said.
A Jim’s Mowing franchise costs about $20,000-$30,000 to set up, including equipment and training.
MORE NEWS
ECONOMIC CLIFF PLUNGE MAY NOT BE AS STEEP AS WE FEARED