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Established in 1982, Kwik Kopy provides printing and design services to small and medium businesses. With over 100 established Kwik Kopy franchise centres across Australia, and with Australians increasingly leaving the corporate world to start their own small business ventures, Kwik Kopy is seen as a relatively safe franchise investment.
Not only is this good news for franchisees in terms of the potential profitability of a new Kwik Kopy franchise, it also makes it easier for interested franchisees to obtain finance.
If you love all things print and design and enjoy providing services to small and medium business owners to help them achieve their business goals, a Kwik Kopy franchise could be the perfect choice for you. Read on to find out more about the costs and profitability of this franchise system, as well as how to obtain finance for a Kwik Kopy franchise.
The initial investment to establish a new Kwik Kopy franchise is $210,000. The term of a franchise agreement for a new Kwik Kopy franchise is 15 years.
If choosing to purchase an established franchise rather than setting up a brand-new business, initial costs will vary considerably depending on the location and profitability of the existing franchise. As with the purchase of any other business, the existing franchisee will need to provide full audited financial statements for you and your accountant to verify the figures and make an assessment as to the feasibility of the initial cost.
As with any franchise system, Kwik Kopy franchisees will be subject to royalties and other ongoing costs. All Kwik Kopy franchisees pay 7% royalties on all sales, in addition to a marketing levy of 2.5% of all sales.
Of the 2.5% marketing levy, 1.5% is directed towards a fund that purchases national marketing for the benefit of all Kwik Kopy centres across Australia, while the remaining 1% is intended to fund local marketing efforts.
Having been established as a franchise system for 35 years in Australia, Kwik Kopy is regarded as a stable business model that provides a regular income for franchisees. No matter how profitable, most franchisors are unwilling to guarantee a particular income for new franchisees, or to even give a ballpark figure as to the income they can expect. This is understandable, given that the profitability of any individual business will always depend to a large extent on the individual franchisee, the business's location, the day-to-day staff and a multitude of other factors that are specific to each franchise.
New franchisees are often unaware that the profitability of their business will be at its worst for at least the first year of operations, as they struggle to gain a foothold in the local economy and build up a client base. Some franchisors will, from time to time, offer a guaranteed income for a limited time following the opening of a new franchise. This is designed to encourage new franchisees to take the risk of opening a new franchise and offers a level of stability in those tumultuous first few months or years.
Until 30 June 2018, Kwik Kopy is offering a guaranteed income of $52,000 to new franchisees for their first year of operation. As part of the offer, Kwik Kopy will match marketing expenses associated with the launch of a new centre. The offer is available to new Kwik Kopy franchises opened in Adelaide, Brisbane, Melbourne or Sydney metropolitan areas only, while franchises opened in other areas of Australia will be considered on a case-by-case basis. Note that new franchises do not have to be up and running by the cut-off date of 30 June 2018, provided the franchise agreement has been signed before this date.
With the cost of a new Kwik Kopy franchise set at $210,000, and the cost of purchasing an established franchise varying depending on the businesses location and past financial performance, most people looking to enter into the Kwik Kopy system will need finance.
Kwik Kopy is considered to be a low risk, accredited franchise and has existing relationships with the ANZ and Westpac banks. These pre-existing relationships make it easier for potential franchisees to convince lenders that the proposed business is viable and low risk. You will still need to present a compelling business plan and prove that you will be able to service your loan repayments if approved for finance.
Consider the following finance options:
Even with Kwik Kopy's relationship with some of the major Australian banks, it can still be a difficult process to get a finance application approved. The key to finance approval is to have a good understanding of the lending criteria before you submit your application and attend your appointment.
Unfortunately, this can be easier said than done, as there are no standard lending criteria across various lenders, nor are lenders obliged to make information about their lending criteria publicly available.
On the other hand, there are basic criteria that seem to be a starting point across many lenders in Australia.
When preparing your business loan application, aim to convince the lender of the following:
Kwik Kopy is a registered franchise with the Franchise Council of Australia (FCA) and won the FCA Franchisee of the Year award in 2009. Kwik Kopy is considered to be a strong, easily recognisable brand that is trusted within the small to medium business sector.
As a business to business (B2B) franchise model, Kwik Kopy franchisees work Monday to Friday during normal business hours, with no pressure to extend their working hours to weekends.
In addition, Kwik Kopy is known for its innovation, and continues to introduce new products and services for its small to medium business target market.
Existing, well-established franchise businesses have the advantage of an established customer base and a proven record of financial success. From the point of view of obtaining finance for the purchase of an established Kwik Kopy franchise, the existing financial records will prove invaluable when convincing lenders that the purchase is a sound one.
However, the established customer base and proven financial success often comes at a price, with existing Kwik Kopy franchises typically costing much more than the cost of setting up a new franchise.
No, all training is provided during the four-week extensive training period prior to opening a new franchise. This training gives new franchisees all the knowledge and experience they need to produce the full range of products and services offered by Kwik Kopy centres.
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