Exiting a franchise is a lucrative move

by Caroline Dann10 Sep 2012

Mortgage Choice claims its exit strategy for franchise owners is offering significant financial rewards, which is contributing to increased sales activity in its franchise network this year.

 
It said exiting franchises were sold for “multiples of three times net trail” in 2011/12 FY.
 
“It is tremendously rewarding for the brand that not only are we attracting quality new franchise owners, but we are providing them with a system that upon exit, provides them with industry leading sale prices,” said CEO Michael Russell. 
 
Mortgage Choice also reported an increase in new ‘greenfield’ franchises, from 19 in 2010/11 to 20 in 2011/12.
 
“[It] augers well for the sustainability of our business and the industry as a whole,” said Russell.
 

COMMENTS

  • by ozboy 10/09/2012 10:10:13 AM

    If you only get 50% of the trail payments then you really only get 1.5 times, which is the starting price for everyone else. Nice sales spin!

  • by sidbroker 10/09/2012 10:48:44 AM

    Good on you ozboy. On the money again. I wish they would print all of my comments. I think the world is a better place with rednecks and our not so politically perfect comments!!

  • by 1martym1 10/09/2012 2:37:53 PM

    50% is generous. It is based on rolling average upfront settlements so if you are not settling good numbers the trail dwindles regardless of the size of your book.