This business is part of an Australasian Franchise with highly developed systems and support mechanisms which has been operating since 1991, franchised in 2001. There are now 50 stores throughout Australia and New Zealand . The territory for sale is the Dunedin territory which includes all of Dunedin city and extends North to Shag Point, West to Middlemarch, and South to Milton . The Dunedin store was opened by the current owner in 2004.

Products / Services
Approximately 900 units are currently rented to our customers, made up of a mixture of washing machines, dryers, stereos, TVs, microwaves, Fridge/Freezers, Freezers, Computers, Treadmills, Rowing Machines, Elliptical or Cross Trainers, Dehumidifiers and DVD players. We do not currently offer rent to own.

A number of new products and offerings are soon to be introduced and are currently being trialled by the franchisor throughout Australasia , which promises to grow the business substantially based on trial results.

Leasehold Premises
The premises are primely positioned on State Highway 1, the main road through Dunedin with in excess of 26,000 vehicles passing the store each day. The store is opposite Elite Fitness, and just one block away from a major shopping destination which includes Rebel Sport, Briscoes, Bond and Bond, and Noel Leeming.

The store is approximately 160sq metres and was fitted out in accordance with the franchise requirements in 2004. The lease expires in March 09, with two further five year rights of renewal, and an indication provided from the landlord already that they don’t intend to increase the rent. Two carparks are also included in the lease.

With the lease expiring soon, this represents a great opportunity for anyone wishing to relocate the business into their own premises, or extend the showroom.

Plant and equipment being sold
Items included in the sale of the business are:

• 2002 Fiat Ducato 2.8 Diesel Van - signwritten
  
• Two times two year old computers with LCD screens running Cairo
  
• Electrical testing unit
  
• Water blaster
  
• Reception Desk and office furniture
  
• Table, chairs and fridge in staff kitchen
  
• Shelving
  
• Imported service trolley
  
• Workshop tools
  
• Store signage

NB Also included in the purchase price is the franchise license, and all rental stock – see below.

Day to Day Management

Staff
Two staff are employed full time in the business and the current owner works part time. Staff include a Mobile Representative who does deliveries, pick ups and services, and helps out in the office when necessary, and a Customer Service Officer who answers the phones, maintains the database and administration.

There is a lot of flexibility with the role of the owner in the business with some franchisees focusing on growing the business themselves working full time in it, to others who have employed a manager to run the business with them overseeing progress with less day to day involvement.

Hours of Operation
Monday to Friday: 8.00am – 5.00pm

Stock
Approximate value of stock $400k – full stock list is available upon enquiry as it varies. We have chosen to purchase quality late model stock with most items being less than three years old, and no units more than four years old. Almost all units purchased within the past two years have been purchased with a 5 year extended warranty.

Systems and Database

Included in the sale of the business is a database of over a thousand current and previous customers as well as a significant database of rental properties in Dunedin .

The software programme which is at the heart of the business is the most advanced rental software programme available today with a comprehensive list of functions including stock management, CRM package, financial processing and direct debit interface, sophisticated reporting of KPIs and advertising activity and responses. The programme has been developed to provide information at the click of a key allowing the business owner to make informed business decisions.

The business systems which dictate how the business is run have been evolving for many years across many stores. They are proven to work when followed. Documented systems include sales and marketing templates and processes, financial processes, and stock management processes – in fact everything needed to run a turnkey business. It was these well evolved systems that helped the Hamilton Mr Rental Franchisee win the Franchisee of the Year Award at the New Zealand Franchise Awards in 2007.

Relationships

We have developed a number of great relationships with businesses and organizations over the years which has helped to build a strong and well respected community profile. We often provide rental equipment for use at University, School and Sports events free of charge and receive great publicity in return. This was one of the reasons our Dunedin store won the Community Spirit Award in 2005.

We also have referral programmes in place with a number of local businesses. One of our newest national alliances is with Plunket and it will be exciting to see what happens with this.

Stock purchasing is flexible with a number of great relationships developed with local businesses to allow us to achieve great savings on stock without the requirement to buy in bulk, allowing us to source as and when needed. These relationships will continue under new ownership. There is also the option to purchase in bulk as part of nationwide deals negotiated by the franchisor.

Training and Support

New franchisees and store managers are required to complete a ten day training programme usually held on the Sunshine Coast in Australia near the Bribie Island based Head Office. This provides a great foundation for anybody new to the business.

Existing team members are aware the business is for sale and will be a huge asset to new owners as they are very capable and happy to help. The current owner is also happy to stay on for a mutually agreed period of time to help the new owners find their feet in a non stressful environment.

Franchisees communicate frequently with others to discuss what is and isn’t working and the phone system is set up to call any franchisee or store throughout New Zealand any time free of charge. Franchisees also work together on the Mr Rental Franchise Advisory Council, as well as Product and Marketing Committees to ensure the business continues to benefit from constant and never ending improvement.

The franchisor also provides two Franchise Coaches in New Zealand to help franchisees stay focused, and on track to achieving their goals.

Economic Outlook

As with all businesses, this business is affected by economic cycles. Since 2004 when the business opened in Dunedin , the economy has experienced high employment and significant growth. During a credit crunch like the period we are entering, more people are attracted to the rental market as people prefer greater flexibility than long term financing options allow, and it becomes more difficult to source credit in order to buy. With these conditions over the next few years we anticipate strong business growth. Other similar territories and businesses have proven that even without the introduction of new products and services the business has the potential to grow approximately 30%.

Purchase Options

Sourcing business funding should not be too much of a problem for most potential buyers if it is required. However, vendor financing or part purchase of the business may be an option for buyers who are prepared and able to run and grow the business. An outright sale is preferred.

Website: www.mrrental.co.nz

About Dunedin
Dunedin and Coastal Otago has an approximate population of 160,000 people. We are well renowned for, and very proud of the tertiary education providers in the city including the Otago Polytechnic and University of Otago . Both of these institutions attract a large number of students each year and academics. The Otago Medical School works very closely with the Otago Public Hospital in Dunedin which is the primary health provider for all of Otago, and one of only two centres in the South Island for specialist medical care. Together, these institutions attract a large number of visitors and temporary residents each year. During term time the city is vibrant with 25,000 students.

Dunedin enjoys all of the benefits of a large city without the pitfalls. It has a wonderful array of shops, restaurants, theatres, as well as art gallery, museum, public and private schools and sports facilities including the very popular Moana Pool. (We won’t talk about the rugby at the moment). It’s a very safe city, and rarely suffers from traffic congestion usually taking no more than 15 minutes to travel from one side of the city to the other. It has a wonderful sense of community.

Being coastal and with a great harbour there are some of the most beautiful beaches in the country within a few minutes drive of the city, and a rich wildlife including the famous Albatross colony.

Dunedin International Airport is a 30 minute drive from the city with frequent flights to all major New Zealand , and East Coast Australian destinations. We’re also just a two or three hour drive away from the beautiful adventureland of Queenstown and a host of ski fields, and boating and biking meccas.

Temperature – expect average daytime temperatures in Dunedin in Winter to be about 10 degrees Celsius, and in Summer about 20 degrees Celsius. Dunedin is a little too well renowned for it’s unpredictable weather with sometimes four seasons in a day, but we tend to avoid the weather extremes and damp that more tropical zones experience.

Photos of Dunedin : http://www.davidwallphoto.com/searchresults.asp?tx=dunedin