Download - Stirling info kit 2013 online
INFORMATION GUIDE
FRANCHISEOPPORTUNITY
Dear Prospective Franchisee,
Thank you for your interest in becoming a member of the Stirling Sports team.
The Stirling Sports brand has a clearly defined space within the marketplace based around providing a great retail experience in high foot traffic locations, providing excellent service and ranging better lines. We are continually seeking the newest, hottest products and brands that make for a compelling offer that is differentiated from our competitors.
Our experienced team and brand partners are focussed on ensuring our 48 stores nationwide offer a superior retail experience and have the latest and greatest ranges. The product differentiation, backed by the exceptional enthusiasm and quality customer service of our owner operators and their teams, gives us a point of difference.
We welcome anyone who displays a genuine interest in sports goods retail, has the financial and management capabilities and the drive and enthusiasm to succeed in business, to join our team.
We look forward to having an opportunity to meet and further discuss the Stirling Sports Franchise Systems with a view to a developing a successful long term business partnership.
Yours Sincerely,
Mark Anderson Managing Director
Wayne Turner General Manager
STIRLING SPORTS A UNIQUE OPPORTUNITY
Stirling Sports opened their first
Store on Dominion Rd in Auckland
in 1964. They have always been
about stocking the best brands and
hottest product lines and delivering a
great retail experience and service.
The group grew to twelve stores
across the North Island and in 1983
the first Stirling Sports franchises
were awarded, after investing
almost 20 years in developing and
testing the business format.
The Stirling Sports group, under the direction of the group founder and Managing Director, Colin Taylor, pioneered franchising in New Zealand and
is a founding member of the Franchise Association of New Zealand. Within a few years of issuing its first franchise, Stirling Sports became, and still
remains, the largest independently owned sports retail group in New Zealand.
Today the name Stirling Sports has powerful
brand awareness and nationwide customer
loyalty with high profile stores servicing the
community in almost all major cities and towns.
Stirling Sports continues to enjoy a strong
compound retail sales growth, sound return
on investment and offers Franchisees an
opportunity for real financial independence.
The original Stirling SportsSince — 1963
The Franchisor’s Association of Australia
and New Zealand (FAANZ) define a
franchised system as “The granting of a
licence by one person (the Franchisor)
to another (the Franchisee)”.
A Franchise is fundamentally a set of
proven business practices, operated by
a group of capable and responsible
Franchisees backed up by professional
services and support from the Franchisor.
The Franchisee is granted the right to use
the trademarks and Stirling Sports’ name,
and in return, is required to conduct the
business in accordance with the Franchise
Agreement and Business Manual which
specify the marketing, business and
operational systems and standards to
be met.
The Franchise agreement is designed to
protect the “system” developed over 5
decades for the benefit of all Franchisees
participating in that system. Stirling Sports
works diligently to uphold the quality
and standards of the Franchise System
which in turn delivers not only satisfied
customers and brand partners but profitable
business for our Franchisees.
STIRLING SPORTS FRANCHISE SYSTEM
In a study that covers more than a decade of data, the
U.S. Department of Commerce reported a rate of over 95% of Franchises succeeded in any given year compared to a failure rate of between 30% and 65% for all non-franchised
businesses.
• The Franchisee owns the right to use and trade under the Stirling Sports
brand within a designated territory
• Stirling Sports assists with site selection and lease negotiations
• Stirling Sports assists with store design and layout and initial stock planning
• In-depth management systems and in-store training, covering store operations,
budgeting, buying, use of reporting systems and group data and policies,
covering all vital information and business knowledge required to successfully
operate in sporting goods retail
• Systems for Staff recruitment, induction, sales training and product
knowledge and tracking of results
• Buying groups, which provide assistance and guidance with buying across
a wide number of categories and access to the best ranges and information
on sell through performance & holding orders for at once replenishment
business through the year
• Buying power of a nationwide chain that gives you more margin and
competitive pricing
• Multi-million dollar advertising campaigns across various media channels
and in store support in terms of point of sale material, windows and instore visits
by merchandisers
• Comprehensive set of weekly and monthly benchmarking of results covering
all KPIs
• On-going in-store support from Stirling Sports Operations Managers
covering Stock / Operations / Merchandising and Marketing / Staff Training /
IT Support
• Via regular Regional Meetings, Buying Meetings and at National Conference
the Franchisee can network with a team of experienced, motivated and
successful Franchisees
Being awarded a Stirling Sports Franchise entitles the Franchisee to many tangible benefits and significant on-going support
Franchisee Benefits and Support
Upholding the Stirling Sports system, which at its core is
about marketing, presentation of the store, product availability,
product differentiation, customer service standards and
product knowledge, is very important to us.
There is no aspect of the business, which does not, or could not involve the Stirling Sports Ltd management team.
We are available at any reasonable time to discuss any matter relative to the Franchisee’s business.
Put simply, we provide opportunities and expertise to help
our Franchisees to achieve better sales and profitability than
could otherwise be attained by standalone sports stores.
We believe communication with our Franchisees
is a top priority. Our business philosophy is to
allow data, information and ideas to flow via
regular intranet site newsletters, regular meetings
and in store visits.
This means we get access to key lines and exclusive stock at great prices, and marketing support from the brands.
We are proud to associate ourselves
with the likes of ...
FAQ
Q: What is the investment required to set up a new
Stirling Sports?
A: The following is the estimated capital required to
completely establish a new Stirling Sports franchise.
These estimates are based on a site of 200m2.
Franchise Territory Fee $40,000
Joining Fee / Training / Set Up $10,000
Stock $180,000
Signage, Fixtures and Equipment $120,000
Trading Cash Requirements $10,000
Total $360,000
The $360,000 estimated cost is based on a new site fitted
out to a Mall standard. No allowance has been made for
creditor’s funding nor allowance for landlord contributions.
The above estimated capital requirements are approximate
only and will vary depending on each and every franchise’s
individual location. We recommend that you verify all
financial assumptions with your own professional advisors.
FAQQ: What is the Franchise Fee?
A: 3.275% of turnover, there are certain elements of
the turnover that are exempt from fees
Q: What is the National Advertising Contribution?
A: 2.5% of turnover, there are certain elements of the
turnover that are exempt from fees
Q: May I see actual accounts which support and help
me make my own financial projections?
A: We do not make any predictions, warranties or
projections for your particular store, but we will make
available historical data as to the performance of existing
stores and will give you general guidance as to the sorts
of factors you and your accountant or business advisor
may wish to take into account when preparing your own
business plan, cash flow forecasts and profit projections.
Q: What financing arrangements are available?
A: Stirling Sports does not provide financing or financial
assistance. However, Stirling Sports can introduce
Franchisees to bankers who are familiar with the Stirling
Sports System Franchise and who will consider applications
from Franchisees, subject to the banks’ normal lending
criteria.
Q: What services will you provide after the business
has commenced?
A: Stirling Sports will provide ongoing support and
assistance in the following areas: buying coordination
of ranges and purchasing terms; marketing, advertising,
in store pos, windows and merchandising; IT training
and support; operational field support; weekly and
monthly performance monitoring; regular meetings on
and off site designed to support and develop your
business; and general advice concerning the use of the
Stirling Sports franchise system in your business.
FAQQ: What systems do you have for keeping Franchisees
in touch with you and each other?
A: There are weekly bench marking results and weekly
emails regarding day to day operational requirements;
fortnightly there is a newsletter covering all aspects
of the business; there are regular store visits from
Stirling Sports field support staff, both merchandisers
and operational managers. Buying meetings are held
quarterly and Regional Franchisee meetings are held
at regular intervals 3 times a year. A National Conference
is also held once a year. Stirling Sports operates a
Franchise Advisory Council (FAC) made up by elected
Franchisees that represent all Franchisees interests,
this body meets at regular intervals with the Franchise
company.
Q: Do I need retail experience to be successful?
A: Relevant business experience is ideal, although not
necessary. What we are seeking are people with the
required financial capacity, drive, ambition and the
ability to be a team player and operate within a franchise
business system.
Q: Can I speak to current Stirling Sports Franchisees?
A: Yes. We actively encourage all potential franchisees
to talk to any of our franchisees. A contact list of all
Franchisees will be made available on application.
Q: Does the Franchise Agreement permit me to sell
the business?
A: Yes provided the purchaser is approved by Stirling
Sports.
Q: Can I order directly from suppliers?
A: Yes. Individual Franchisees order directly from
suppliers under advantageous terms negotiated by the
Franchisee Company. Indicative Indent orders are written
by the Franchise Company for the stores and reviewed
by the Franchise Company when placed by the Franchisee
with the Suppliers. Holding orders of key lines will also
be exclusively available to Stirling Sports Franchisees.
STEPS TO BECOMING A STIRLING SPORTS FRANCHISEE
Stirling Sports places the utmost
importance on selecting the right
person before granting a franchise.
The financial resources available to
the candidate, while important, are
only one element in the selection
process.
Everyone who decides that they
would like to have their own business
should subject themselves to an
examination of their attitudes,
capabilities and long term goals.
The provision by the Franchise of
know how, systems and business
format does not guarantee success.
The success of any operation depends
on the Franchisee’s ability and skill
in maximising the opportunity that
the Franchise represents and in
managing the Franchise business.
Stirling Sports Ltd requires that all
new Franchisees complete an
on-line Psychometric Test through
Selector NZ Ltd. This process allows
Stirling Sports Ltd to see if the
potential Franchisee is a good fit for
the business and the group.
Franchisee Selection
STEPS TO BECOMING A STIRLING SPORTS FRANCHISEE
How to Apply for a Stirling Sports Franchise
1. You will have had to have read the information kit and know something about how Stirling Sports operates and believe that you have the enthusiasm
and drive to become a successful Franchisee. You must want to buy / set up and operate a store, this decision you must make for yourself without any external
pressure. We want the Franchisees to be keen and enthusiastic buyers. It is a very important decision for you, probably a change of your lifestyle and not
without some risk therefore the decision to apply should not be taken lightly.
Some key questions to ask yourself before you proceed are:a. Do I have the drive and passion to succeed?
b. Do I like dealing with people?
c. Am I a good communicator?
d. Am I keen to work as part of a team of Franchisees, while leading my own team?
e. Am I capable of exercising a disciplined approach to managing my business?
f. Do I have the appropriate financial resources to meet the investment?
2. If you have answered yes to the questions in step one, then we invite you to fill in the attached application form, so we can understand your background
a little better. Most potential Franchisees will be familiar with our Brand and product offer, and after reading the enclosed information will have more
understanding of the Stirling Sports business and so should be in a position to disclose their own circumstances by completing and signing the enclosed
“Statement of Personal Details” and “Deed of Confidentiality”.
STEPS TO BECOMING A STIRLING SPORTS FRANCHISEE
3. After the point where you have registered your interest, and we are in receipt of your personal data, then you may feel free to call on, or talk,
to any Stirling Sports Franchisee.
4. Once we have your application we will check out the references and request a psychometric test be completed. Assuming there is a positive
outcome we will then approve your application and begin to work closely with you against our new store / new franchisee check list and planner-gram
to ensure all elements of a new store or purchase of an existing store happen within the agreed timeframe. We will issue you a copy of our franchise
agreement for you and your legal council to review.
5. We do not ask for any payment nor deposit, nor do we ask for a For Sale and Purchase contract with you until we are both well past the point
where we have approved you as a potential Franchisee and you have had a chance to talk to our existing Franchisees, view our new store / franchisee
check list, are comfortable with the franchise agreement and have finalised the sale and purchase of an existing business or secure the lease and finance
for a new Stirling Sports business.
We look forward to receiving your signed “Statement of
Personal Details” and “Deed of Confidentially” documents
should you decide to take the next step towards investigating
owning a Stirling Sports franchise.
As previously mentioned, the process through to you owning
your own Stirling Sports needs to be carefully thought through,
investigated thoroughly and independent advice sought. At every
stage we need you to question whether you are making the
right decision, for the right reasons.
“Believe you can and you're halfway there” — Theodore Roosevelt