See our existing franchisees on the page of this web site titled 'OUR PEOPLE', HERE
It is our franchisees who will become the person regularly delivering water to your door, and with whom you can build a rapport, and enjoy direct contact and expect very good service.
Let us know if any aspect of service is not to the very good level we seek to maintain. Please understand there might be some initial glitches as we progressively establish this side of our operations.
BECOME A FRANCHISEE
We begun operations in mid 2015. We seek to increase the number of people operating in our franchised territories.
This web page sets out the parameters of our franchising opportunity.
We invite interest from potential franchisees and/or from franchising consultants and agents.
Our target sales regions is to be inclusive of all of the wider Auckland Region, from Franklin to Howick, Manakau, West Auckland, the North Shore up to Albany. It will also include Hamilton, Tauranga and Thames. We are also contemplating servicing Palmerston North.
We calculate there are about 1,875,000 people living in our above stated target region.
Dividing this by an arbitrary factor of 3 (say 3 person per home on average) we assess that there are about 625,000 homes in our overall territory (excluding Palmerston North).
Thereby if we have 25 franchise territories, then on average each should include about 25,000 homes (25 territories x 25,000 homes = 625,000). Each of the 25 proposed franchise territories is thereby proposed to include approximately 25,000 homes.
Click HERE to see map of the 25 franchise territories we intend to progressively allocate.
Wiri to add here once map obtained via Joc.
SOME PEOPLE EXCLUDED
It is intended that Heartland Springs appoint also some non-territory franchisees/agents, such as an Auckland business-commercial franchisee/agent, and some church franchisee/agents and also some for some marae. The specific exclusion within a franchise contract, of people living within the franchise territory, who may not necessarily be allocated to that franchisee, include:
- retail shops/garages which may be selling Heartland Springs products
- marae where the marae is offered separate to the franchisee a supply deal direct with Heartland Springs or its marae agent (this does not stop or limit a franchisee him/herself selling direct to a marae)
- church groups and the congregation (this does not stop or limit a franchisee him/herself selling direct to a church group or members of the congregation)
- schools, sports clubs and gyms and yoga groups or their like (this does not stop or limit a franchisee him/herself selling direct to a such groups or their members)
- businesses where such customers have been sourced by Heartland Springs or its business agent (this does not stop or limit a franchisee him/herself selling direct to a businesses or their staff)
- bulk deliveries of 300 or more litres per client (this does not stop or limit a franchisee him/herself selling direct to such a bulk buying client)
- farmer markets, where Heartland Springs may decide to attend and to gift or sell water and/or to appoint a separate market exclusive agent at any market (but this does not stop or limit a franchisee him/herself attending any market to assist a market-agent or to seek to obtain 12 month customers from clients of that market --- and note most 12 month home delivery customers obtained by our market agents will pass onto the franchisees in their respective territories)
- exhibitions or other public events where Heartland Springs may decide to attend and to gift or sell water
- food and drink manufacturers in the territory
- export, where the export agent or client intermediary or client is located within any franchised territory
COST OF ACQUIRING A FRANCHISE TERRITORY
All interested persons should consult with their own investment advisor in respect to any interest they might hold in obtaining a franchise territory.
We do not purport to be an investment advisor to anyone; nor are we. On this page we set out the approximate parameters, so you can take this information to your investment advisor for his/her consideration and advice to you.
The cost of establishing yourself in a Heartland Springs Franchise is likely to equate to about $(nz)99,000. Some of this should be able to be financed by a licensed finance institution, such as an organisation which may lease vehicles to the franchisee. We make no guarantee here, but will assist when asked. It may be that for the first few franchisees, we will accept a lesser initial set up standard, but the detail set out herein is our proposed structure. The overall set up cost is assessed to include:
- 1x Vehicle, being smallish truck (second hand truck check by expert to be in excellent working order is ok) that can be driven with car license. Must be able to carry min 1.5 ton weight, and at time be able to also pull a minimum 1.25 ton loaded trailer. This is likely to be a truck with a tare weight of between and ( Wiri to add details) COST anticipated to be about $55,000
- Re-painting truck and/or sign writing to colors of Heartland Springs. COST anticipated to be about $3,000
- 1 x trailer. This must to be able to carry weight of min 1.25 tons COST anticipated to be about $6,700
- 4 x min 600 litre stainless steel (s/s) tanks for carrying water (second hand ex brewery or wine or dairy factory is ok) COST anticipated to be about $750 each= $3,000
- Fitting s/s tanks and adding s/s pipes to enable ease of water delivery COST anticipated to be about $2,000
- 20 x 20 litre black plastic containers with white taps (as initial stock). These will be sold to customers and inflow $ will enable re-stocking by franchisee. COST anticipated to be about $400
- 100 x 10 litre black plastic containers with white taps (as initial stock). These will be sold to customers and inflow $ will enable re-stocking by franchisee. COST anticipated to be about $1,400
- 20 x 4 or 5 litre glass containers (as initial stock). These will be sold to customers and inflow $ will enable re-stocking by franchisee. COST anticipated to be about $400
- 500 x Labels for containers and 100 brochures COST anticipated to be about $400
- Smart Phone & Apps COST anticipated to be about $900 plus pa cost
- Lap Top computer COST anticipated to be about $500
- Home Phone COST anticipated to be about $200 pa
- Uniform COST anticipated to be about $500
- Stationery COST anticipated to be about $200
- Other/Sundry COST anticipated to be about $200
- Cost of acquiring franchise and training COST anticipated to be $25,000
The above cost assume the franchisee has a home and garage already, were he/he can store the vehicles and also where they can operate from and live.
TOTAL ESTIMATED COST AS ABOVE = $ nz 99,000
It is possible a franchisee could use their own existing truck and trailer, in which event the overall set-up costs could be reduced accordingly.
Alternatively, much of the above could be financed...whereby perhaps a cash deposit of about $30,000 could be sufficient to secure a franchise territory and enable operations to begin.
APPOINTMENT & TRAINING A FRANCHISEE
The appointment and training of a franchisee will consist of FIVE initial steps.
FIRST there will be a meeting at the offices/farm of Heartland Springs. This will include a sharing of background of each party (potential franchisee is to bring detailed CV), to establish if there seems to be a genuine meeting of minds, and if so, then the potential franchisee will be shown around the farm, and have explained the spring water source/supply/distribution operations.
SECOND the potential franchisee will be asked to read all of the web site of Heartland Springs and watch all videos thereon.This could take about a week or two of solid reading/watching and learning about water. The potential franchisee is to make notes which will enable him/her to ask many questions of Heartland Springs after this week or two of learning.
THIRD there will be a discussion about the web site, with the potential franchisee asking all/any questions on any point. Thereafter there will be a verbal test, which the potential franchisee will be asked 25 questions about water and the Heartland Springs water/operation (all correct answers will be on the web site). The potential franchisee will be required to get at least 20 of the 25 questions asked correct, before progressing to the third stage of training. During this test the potential franchisee will be able to refer to the web site, using their own knowledge gained of the web site, to assist in answering the 25 questions. There will be a 3 minute time limit to answer each question.
If the potential franchisee cannot get 20 of the 25 questions correct, they need to re-read the web site, and return in another week for a second test.
FOURTH. After passing the verbal test, the potential franchisee is invited to become a probationary or trainee franchisee. The probationary trainee franchisee period is to be for 3 months. During this time the probationary trainee franchisee will begin their own operations as a franchisee, but for 2 days each week for the first month, and 1 day each week for the next 2 months they will be accompanied by a Heartland Springs consultant, who will guide and teach them the on-site operational procedures and other aspects related to the franchise as will be set out in the franchise contract and manual. The probationary trainee franchisee will also be required to undertake some phone communication and laptop training at Heartland Springs.
After three months of acceptable performance the probationary trainee franchisee becomes a fully fledged franchisee. A franchisee can employ drivers, and do not need to be the driver themselves; but in such instances all new drivers must go through a training period with Heartland Springs at a small cost to the franchisee and the franchisee must ensure drivers are operating efficiently and in line with the contract and manual.
FIFTH. Each year there will be a Heartland Springs annual conference for a minimum of 7 days, where all franchisees will be expected to attend. For any franchisee who in the past year (or lesser period) has introduced 100 or more new 12 month customers to Heartland Springs the cost of travel, food (2 main meals per day) and accommodation at the conference will be met by Heartland Springs. Other franchisees will have to meet their own costs of attending. Once the total number of Heartland Springs 12 month customers exceeds 500 individuals, then each annual conference thereafter will be at some pacific overseas locale.
THE proposed INCOME OF A FRANCHISEE
It is anticipated that an efficiently run franchise operation once it reaches a minimum of 250 customers (about 1% of total available home market) should be able to gross between $100,000 (250 customer deliveries) and $400,000 (1000 customer deliveries) per annum. The net (before operators salaries, but after extra drivers salaries) should be able to be about $70,000 (250 customer deliveries) to $175,000 (1000 customer deliveries) per annum.
For full details of the calculations supporting theses figures, cick HERE (note to sight this page a password is required to be prior obtained from Heartland Springs).
wiri to load in password protected lightbox...david will send draft
SOME OTHER KEY POINTS OF THE FRANCHISE DEAL
Where Heartland Springs or its agents or sales people source a new customer in any franchise territory , the franchisee will agree deliver the first months water to that new customer free of all delivery /franchisee costs. This does not apply when a franchisee sources a new customer themselves.
All cash payments and other invoicing of clients will be managed by Heartland Springs.
Franchisees will collect bulk water from the back gate area of Heartland Springs farm, each morning before they begin deliveries. Franchisee MUST use Heartland Springs spring water, unless permitted otherwise in WRITING by Heartland Springs CEO.
The time taken to efficiently complete a reasonably compact delivery area, with say about 250 to 300 clients (including pick up of spring water each day) is about 4 to 5 days a week of 8 hours per day. A very efficient operator has been able to do this in 7 hour days for 4 days a week in another area we have observed.
By example: say 250 homes, with deliveries twice a month per home. Then if 5 days work a week, could involve 21 days per month, which = about 24 deliveries per day. Say 5 hours a day on deliveries (and 2 hours in collecting water and travelling) then this would be about 5 deliveries per hour, or about 12 minutes per delivery.
Plus franchisees must be responsible for cleaning their trucks and bulk water containers, and to manage their clients to ensure clients clean their own containers.
For each 250 to 300 customers in each franchise area we anticipate the franchisee will thereafter have to acquire another fully fitted truck and trailer unit and employ another driver for such extra customers, and such costs are taken account of in the budgets/guesstimates.
Franchisees can sell their business to a third party, strictly subject to that third party passing the passing the Heartland Springs franchisee tests, and subject to that third party being pre-approved by Heartland Springs (this latter general approval not to be unreasonably refused).
The franchise territory will include all home and groups and clubs and offices/factories WITHIN the defined territory of each franchise area that the franchisee sources him/herself. The franchisee is entitled to do as much marketing and cold calling and other sales promotion as he/she can manage in his/her territory.
It will also include (except for exclusions listed herein) new customers who are sourced at a farmers market, and which relate to people living within that franchise territory.
It will also include (except for exclusions listed herein) new customers who are sourced by way of cold call door knockers or phone cold calls, who are commissioned by Heartland Springs for such sales and which relate to people living within that franchise territory.
It will generally also include (except for exclusions listed herein) new customers who are contact Heartland Springs directly and which relate to people living within that franchise territory.
Click HERE to read the franchisee contract. Note to sight this page a password is required to be prior obtained from Heartland Springs.
wiri to load in password protected lightbox...david will send draft
The franchisee operating manual is still being prepared. The key terms can be discussed verbally when the parties meet.
FREE OVERSEAS TRIP : bonus
Once the total number of Heartland Springs 12 month customers exceeds 500 individuals, then any franchisee who in the past year (or lesser period) has introduced 100 or more new 12 month customers to Heartland Springs, will receive from Heartland Springs as a bonus, the cost of travel, food (2 main meals per day) and accommodation at the overseas 7 day conference. This must be spent on the conference travel by the franchisee, and will not be otherwise payable in cash.