Frequently asked questions

1. NZ will remain our head office location. We have discussed this among the directors several times and all agree that NZ is where we want to be.
2. NZ will always be the base for Refresh. As the business grows internationally, it allows us to invest in better systems and other resources that each franchise benefits from.
3. We appoint a GM with their own team to provide local support and leadership in each country as required.

Unlike many other businesses, we are growing Refresh as a long-term asset for ourselves; not as a business for sale. This means we are investing in creating a robust business infrastructure, not a quick fix to get a good sale price. You will see that reflected in the large number of people at our head office.

There are three companies in the group. Refresh Renovations, Zones Landscaping and Oncore Maintenance. As of May 2023, we have over 141 franchisees operating within the group across Australia, New Zealand, the UK and the USA. Refresh has over 85 franchises operating globally.

Yes, some businesses have failed. Mostly, they have left for a wide range of random reasons: some quite surprising (one franchisee decided to retire when a family member won the Lotto). Quite a few had health issues, some decided to leave the country. However, there are a few who have failed because they didn’t run their business properly. In every case it was because they didn’t follow the proven process:

1. Most are people who refused to hire a construction manager and tried to manage construction themselves. This meant they could never grow their business and, because they were not experienced building project managers, they got trapped in running the projects and had no time left to run and grow their business.
2. Another group is people focusing only on large projects and rejecting small projects. This is risky because, even if you have quite a large turnover, you will have geared up your overheads and then, if one project falls over, it leaves a big gap in cash flow and you still have overheads to cover. That’s why we have targets to maintain an even balance of revenue from small, medium and large projects.
3. The final reason for businesses failing is franchisees who refuse to do any marketing. They can get to a certain turnover but, unless you are filling up your pipeline with leads, you can’t bring on enough work to grow. We know what the levels of marketing need to be but if people refuse to invest appropriately, their business doesn’t grow.

In all cases, we work with franchisees to help them out of any holes they fall into but, in the end, if they refuse to make the necessary changes and follow the business model, their business will not prosper.

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We have learned a lot based on our experience and have evolved the business accordingly - which is an advantage for new franchisees coming on now!

These are the key insights that we have learned:

1. Builders don’t naturally make good business managers: In our pilot phase, we recruited builders and tried to turn them into managers. That didn’t work and we helped them out of the business and realised we needed to recruit commercial people with a customer focus to run and manage the business and they employ builders to run and manage the construction side of the business.
2. Design and build is much better than the tender model: We originally had ‘design and build’ as an option but also responded to requests for tenders. Data from the franchisees showed that ‘design and build’ was a far superior model so that has become the standard process.
3. Follow the model and process: As outlined in the answer to question 4 above, franchisees who invest in building their team, invest in marketing and maintain a good mix of projects - are the ones who prosper. As we have constantly invested in analysis, process improvement and IT systems; we have seen the speed of growth of new franchises increase.

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Keys to success 

1. Invest to drive leads 
2. See all leads 
3. Customer focused 
4. Utilise the franchisor and franchisee network 
5. Follow the process 
6. Invest in resources/team...
7. Pitfalls are the opposite

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1. Focussing on delivering a great customer experience
2. Driven to succeed and invest in their business
3. Good leadership, ability to build the team and make sure everyone is doing their job
4. Following the established process and successful formula
5. Using the systems to keep on top of sales, administration and business results

1. Refresh CONTROL (our Franchise Business Management system) is proprietary and we continue to develop/improve it with our in-house team of developers.
2. The business is web and digital system oriented. We are constantly identifying new opportunities and developing new systems.

1. We have excellent relationships with a number of the major banks, who rate the Refresh franchise system highly.
2. For finance, we recommend going through brokers who will get you the best deal. The most common way to finance is through equity on property you may have.
3. Refresh is a very low cost of entry model with very little required in the way of overheads. There is no requirement for commitments such as property leases, fit-outs, stocks or machinery, etc. (which are often required in other franchise systems).

You do not need industry experience to be a successful Franchise Owner. As a Franchise Owner/Renovation Specialist, your focus will be on managing the growth of your business while your Construction / Project Manager will coordinate a team of skilled trades. Our existing franchise owners have backgrounds in business, sales, law, customer service, hospitality and more. One of the things that make Refresh so unique is that business-minded professionals run the business while project managers and  trades focus on their area of expertise. This is key to creating a smooth renovation experience for customers and also helps to keep employees and contractors happy within their roles.   

1. One way of looking at Refresh is as a ‘web-enabled’ business. We invest heavily and continuously in this area. Many of those within the renovation sector are pretty much “digital dinosaurs”, so this gives us a massive advantage. We have a strong IT team constantly improving the web and digital infrastructure and providing training and IT support to franchisees. We also have a programme of producing video clips in the manuals for ongoing support.
2. The renovation market steadily increases over time at about 2-4% a year. It does not fluctuate like the new home and commercial construction markets. Those markets are volatile and fluctuate in response to the current economy. In the GFC, New Home Construction fell by over 40%, The renovation market had a very minor dip of about 5-7%. The same pattern happened in NZ, Australia, the USA and the UK. The renovation sector is exceptionally robust and recession-proof.

We're a building company and like all other building companies, we use sub-contractors for specialist trades. What we've added is our process and project management all the way through from planning to build. 

The reason you might think we're a project management company is simply because no other companies provide proper project management - you can't have effective project management without proper planning. Project management is essential and drives a lot of value. The fact that no-one else offers planning and project management in the we do explains the 30% industry average blowout in timelines and budgets.

The number of franchisees in your area is limited and protected in your franchise agreement. The size of territory is calculated based on the size of the renovation market with a ratio of one franchise for every $80 - $100m (NZD) of annual renovation work. Your territory can not be eroded by another franchisor, it is protected in your agreement which states the number of franchises in your area.

Different sectors of the market have different drivers. For example, property owners are looking for low-cost renovations; so we don’t focus on that segment. The segment we focus on is homeowners in the top three socio-economic groups. The initial target is women who are looking to improve their homes for social and lifestyle reasons. Common triggers are changes in family life stage (births, ageing of owners, parents and children), selling or buying homes. We have years of research on this topic through the Traffic marketing group.The reasons for renovating are pretty varied but our marketing team tracks the queries being made in Google and produces articles to answer the main query clusters.

The renovation market is extremely resilient. In the GFC the new home and commercial market dropped by 40 - 50% and the renovation market only dropped by about 7%. When the economy is tight, banks are still happy to lend money on renovations as there is an asset they can lend against. In summary, demand for renovations stays high during recessions and finance remains available because banks have an asset to secure loans against.

The renovations market has been one of the sectors that has been least affected by Covid. In fact in NZ, Australia, the UK and USA Refresh has seen a noticeable increase in leads. The reason appears to be that as homeowners are constrained from spending in many areas, they are choosing to spend the money saved on renovations. This reinforces the point above that the renovation sector is an extremely stable sector to invest in.

Target demographic

• Women in the top 3 socio economic groups between 35 and 65 who own their own homes. 
• There are of course customers who fall outside this group but that's the core target.

Their motivation is 

• To have a lovely home to bring up their family and socialise with friends
• To have the peace of mind of engaging a national brand
• To have someone who will look after the project from concept to completion
• To have the reassurance that the project will be well managed and avoid the risks of budget and timelines blowing out

We are not targeting:

• Landlords and commercial customers who are not motivated by the points above and will want to break up the project into its components and want to tender each component.
• The exclusive highest end of the market who are looking for 'trophy' architects.
• The bottom end of the market who are cash strapped and will want to do parts of the project themselves.

1. The marketing programmes are based on constant research on what terms get the most leads for the lowest cost. That's a continuously managed process day by day by the Refresh marketing team and specialist agency.
2. The sales material and training help convert the leads as efficiently as possible

Yes, they do. They bring in additional future renovation work. In general, people will look to renovate their bathrooms and kitchens within about three to five years.

A rising new build market does not cannibalise the renovation market. 

• In New Zealand, the underlying new home construction rate is about 22,000 new homes a year. The housing stock in NZ is about 1,600,000 homes of which, according to BRANZ industry research, 20 - 30% are undertaking renovations, so that’s 320,000 - 480,000 consented and non-consented renovation projects a year. Even a large change in the new build rate is insignificant compared to the number of renovation projects.
• Over 170,000 new homes were built in the UK for the year ending June 2019, according to govt.uk
• Approximately 220,000 new homes are built per year in Australia according to The New Daily. 
• According to NAHB approximately 1.20 million houses are built per year in the USA (according to 2017 statistics).  

The market size used for the territory calculation is based on renovation activity, so new build activity is not counted in the figures.

1. Due to confidentiality, we cannot share actual accounts. The spreadsheets we have provided are based on the data we have across our franchise group.
2. During the due diligence process, you have the opportunity to meet some franchisees and will be able to discuss financials with them on a one-on-one basis.

1. When we meet to have our regular business reviews, we look at progress versus business plan and also benchmark versus other franchisees on conversion rates and also financials (P&L).
2. We provide benchmarking data across a wide range of business drivers.

This is covered in the briefing. All you need is a car, phone and computer and you can run your business from home. Working capital, such as an overdraft facility, is to help cover your costs while ramping-up the business. This data is all provided in a spreadsheet during due diligence.

1. Franchise fees are paid upon the signing of the agreement
2. Working capital is typically an overdraft facility rather than an upfront cost, which is only used as required.
3. Royalties and local marketing are monthly costs. Many franchise systems require royalties based on invoice but the Refresh royalties are only due once revenue is received by your business which is a big help to early cash flow. Unlike many franchises, there is no minimum royalty or national marketing fee paid which is helpful for cash flow, especially in startup stages when you are building your pipeline.

1. There is not a launch event as we are not a food franchise that requires a big launch to start.
2. Your marketing will be activated when you commence. Leads will start being entered into your Refresh Control for you to follow up.
3. Your franchise fee covers the cost of signwriting your car, setting up your web presence and other marketing collateral.

You would probably run it from home for the first year or two. As your team expands, you may want to look into a small commercial office. This cost is covered by your business.

The Guarantor of the franchise agreement is the person or persons who personally guarantee the obligations of the franchisee (i.e. the business entity) under the franchise agreement. There are no guarantees registered against the personal assets of the Guarantors to secure the personal guarantee.

We lodge a GSA (General Security Agreement) against the "franchisee". To be clear, the "franchisee" is the business that is registered, not a person. The GSA is over the assets of the business.

In addition to the national branding and marketing, we provide a great deal of marketing support for your local franchise marketing that breaks down into 4 types:

1. Digital and online marketing: we provide resources to plan and implement cost-effective campaigns on your behalf.
2. Customer relationship marketing: we provide tools, databases and training to help you generate repeat sales and referrals.
3. Channel and trade relationship marketing: we help you build networks and campaigns to generate leads from various trade sources.
4. General marketing communications: we provide collateral and marketing support to help you run local campaigns. A personalised 0800 number is one of these tools.

We provide a marketing toolkit, training, benchmarking and other marketing resources to help you with local marketing.

1. Refresh spends over $1 million (NZD) a year on national marketing and resources to build the brand, develop online platforms, programmes and other marketing material.
2. You spend the specified minimum spend per month on local marketing and we help you put together the most effective programmes based on experience from the group.
3. The marketing support we provide can be targeted to generate different types of leads to manage your mix of small, medium and large project leads. Small projects like bathrooms might have a cycle time of six weeks from lead to completion. Large extensions might take six months to go through planning.

Yes, we do have a launch and induction plan. You should have that document in the pack that has been sent to you.

There is an extensive digital and web programme. During induction, we will set up a regional section on our website where you can work with our H.O. team to add your team profile, projects and other content to help to establish the local online presence. All this is managed and provided for you.

Our main competitors are small builders. We don’t directly compete with them because they enter the sales process at the tender stage and we win the customer much earlier in the design stage. There is no one who is a direct competitor to us. The closest to us is Smith and Sons who is a national buying group for existing builders - they don’t compete with our value proposition. However the segment is huge and there is plenty of room for a number of competitive companies.

We collect 1% of all revenue as a National Marketing fund to apply to developing a brand platform, creating marketing assets for the Franchise Network, promotion, advertising, agency fees, marketing research and development, establishing loyalty programs, operating the website, operating a call centre, test of target marketing, marketing and consulting fees, relevant industry memberships and subscriptions, public relations activities and incident including but not limited to (social media and traditional) media programs and activities, providing promotional brochures and other marketing materials for the Approved Services and Approved Products.

1. Our team at head office (whose wages are partly funded by the 1% National Marketing Fee) have created design and style guides for the home show kits. Each franchise/territory orders their own kit, which our team at HO can help organise. Our team have also created checklists and guidelines on how to run home shows effectively for maximising lead generation at a show - we have also designed the signage and other materials needed by the group
2. When it comes time to run a home show, a franchisee can submit a request for support to head office, and we can assist with this. For design and marketing support, there is a charge for our teams time
3. We have developed a marketing and merchandising online ordering system that enables franchisees to order directly from printers with our standard branded material for a more efficient and cost-effective process

The size of the renovation market is based on independent research

1. New Zealand: BRANZ
   Refresh estimates the NZ renovation market to be approximately $8.2 billion, based on a projection of this BRANZ report.  
2. Australia: HIA
   HIA’s 2017 report stated that Australia’s home renovation market was sitting at $33 billion. 
3. UK: Refresh Renovations Independent Research
   On average, UK homeowners spend approximately £26 billion per year on home renovations. 
4. USA: JCHS
   According to estimates from the Joint Center for Housing Studies, the remodelling market was sitting at almost $425 billion, in 2017.

We will provide you with a draft of the legal agreement for you to peruse and take to a franchise lawyer to get independent advice (this is normally supplied 2 - 3 weeks into your due diligence, once you are ready to proceed to legal). We do not change contracts because we would soon lose any structure which would undermine the whole franchise. However, we can acknowledge certain clarifications or amendments in attachments if we all agree to them. Generally, we find it is best for you to focus on getting to grips with the business model first; when you are comfortable with that, turn your focus to the legal side. If you try to do both at the same time it can get confusing with lawyers trying to provide commercial advice (which is not their expertise) and accountants trying to provide legal advice (which is not their expertise).

We don’t have a minimum fee. We do agree on minimum performance levels with you, as that helps you decide on the speed you want to grow your business and is necessary for planning and benchmarking. If franchisees don’t meet them, we work with them to see what’s needed to bring them back on track. We don’t use this as a mechanism to weed out franchises - it takes a huge effort to get good franchises so our incentive is to do everything we can to make it work for both parties.

We develop a business plan and an annual operational master plan with you and have quarterly review meetings with benchmarking to help you achieve your plans. Everything in the plan is part of the coaching. We work with you for as long as it takes, providing support.

The agreement is 5 + 5 + 5 years with a right of renewal at terms no less favourable. In other words, the agreement doesn’t revert back to us. You carry on and just cover the legal costs to renew the agreement. Details are in the legal agreement.

1. The business is your asset to sell. You can go to a broker and ask for as much as you like. We don’t take a fee out of the sale. We will recover transfer costs - see the legal agreement. If you want us to, we will help you with the sale. It is in our interest to get a new franchisor to carry on the business. We do retain the right to make sure the new franchisor is suitable for the business. We provide the necessary training and support to help the new owner be successful.
2. You will set up a business that acquires the franchise. You can bring new partners into that business at any time. If you are intending to change the franchise management, we need to approve the change.
3. If you want to sell your franchise business, you are free to do so (provided you are not in breach of your franchise agreement). You set the price that you want to sell it at. We do not take a commission but will recover costs incurred in the administration of the sale. We reserve the right to approve the new owner to make sure they are suitable and will not damage the brand for the existing franchise holders.

You can sell the business as long as you are not in breach for some reason. See the legal agreement.

There is a breach process outlined in the legal agreement. For example, if you are damaging the brand. It is not in our interest to terminate franchises so we always do everything we can to support a franchisee.

The number of franchises in a territory is determined by the size of the renovation market in that area. The number is defined in your franchise agreement.

It’s a simple process. We do a letter of agreement which both the franchisor and yourself sign. This can happen if a territory is still available. There is even an opportunity to transfer to a territory in another country if you were considering that as an option in the future.

Yes, as long as your current territory is meeting its targets and there is a franchise available in the territory you are interested in.

1. As mentioned in the briefing, we are looking for commercially-oriented people who want to grow a large business by investing in the business and their team. We are not looking for builders who want to be on the tools.
2. Because we have limited the total number of franchise territories that will ever be available, we need to make sure we appoint people who will be successful because our success depends on making sure they are successful.
3. We do not appoint people who we feel do not have the capability to succeed.

The most important attributes are a positive attitude and a strong motivation to succeed. We recruit growth-minded franchisees that understand that they are managing a business, not a series of projects. That means managing teams of employees, trades, suppliers, etc. This is a sales-oriented, people business. Franchisees must understand that we are accountable to the customer for issues that arise.

Our initial training/induction is done at the HO or on-line and normally takes 3-4 full days.

1. Yes, we agree to a 6-month onboarding program and all of the above, which are included in your fees.
2. Training on the Refresh systems and processes is ongoing and generally not charged for separately.
3. Travel, accommodation and personal expenses are covered by the franchisee

We regularly offer lead management and sales training, as well as project delivery and various admin/business management training. We require you to attend some of those training sessions with your employees so that everyone understands their roles in the business. Generally, this is included as part of the fees. Exceptions would be discussed on a case-by-case basis.

You can expect a lot of support in general and, yes, there is technical support for Refresh CONTROL; which is being constantly enhanced. We developed it as a cloud-based business management platform because none existed that fit our global design and build business for residential renovations.

1. Each franchisee starts with a 3-4 day induction at head office or on-line that covers business management, marketing lead management and sales. Project delivery comes later when you sell your first project. 
2. Additional support is ongoing - coaching over the phone, in person and via teleconference is on an as-needed basis. 
3. Much of a franchisee’s needed support is built directly into Refresh CONTROL in the form of manuals, FAQ’s, etc. that all comprise a vast knowledge centre. During the due diligence process, you will be given access to our live manuals to explore the depth and breadth of our knowledge base, which we are constantly developing.
4. The Franchise Business Manager will also conduct quarterly reviews and arrange additional training as needed/on request.
5. We also require all franchisees to attend annual conferences, where we share updates and best practices, both formally and informally via networking with other franchisees.
6. You also get support from fellow franchisees! We have a forum on Facebook to ask anything you need, from referrals for trades and suppliers to costing in GST for projects (which we already train you to do anyway).

If you talk to the existing franchisees they will tell you that we offer great support. Most operational problems are teething issues that every franchisee goes through and we’ve built up our answers over time in the form of coaching, system functionality, training and documentation. You most likely won’t encounter an operational issue we haven’t already addressed a dozen times over.

1. Support from franchisees: franchisees establish their own informal networking but we also encourage and provide opportunities to network in more formal or facilitated environments like annual, mid-year conferences and webinars.
2. Performance feedback - definitely. We establish your revenue targets from day-1 of induction. Your dedicated franchise business manager will conduct your quarterly reviews to go over your goals, and make sure you’re on track to achieve them. If you are not, we will give you the support you need to achieve them.
3. The franchise portal is incorporated into Refresh Control and is an active source of advice and support.

We review the agreed annual business plan and also benchmark versus other franchisees in lead conversion and also the Profit & Loss statement/business financials.

1. No fit-out is required as you are running it from a home office and then eventually you’ll move into a small commercial office. This cost would be for your business.
2. The HO marketing team will provide you with all the branding and design support required at a cost-recovery rate.

As much as you need, including: a 3-4 day induction, weekly catch-ups with your FBM in the first couple of months, 6-month onboarding and then (minimum) a business review every 3 months.

1. Yes, we do a minimum of quarterly business reviews. You will be supported by a Franchise Business Manager. Their role is to help you get up and running and then help you to grow your business.
2. We have a half-yearly operational franchise conference and an annual international conference which includes training, benchmarking and networking with other franchises.

As above, your dedicated Franchise Business Manager/operations person will help.

1. Your Franchise Business manager will be helping you get up and running in your first 6 months and then at least every 3 months when we do your quarterly business review.
2. You are also welcome to make contact and come see us at HO at any time if need be.
3. Through Refresh Control we are able to see what your pipeline is looking like compared to your peers and if we spot any issues we will contact you.

Yes, we benchmark conversion rates, and also financials so we can help improve your business.

1. There are some minor seasonal aspects but renovations happen year-round. The types of projects can vary with seasons, for example, you may have more insulation/heating enquiries in the autumn/winter and more deck enquiries in the spring/summer.
2. The only strong seasonal pattern is a drop of renovation work in January but even that drop is beginning to even out. This pattern is reflected in the spreadsheets we provide in due diligence.

It’s not a state secret of what creates success - our business model is well defined and the market opportunity to consolidate the residential renovations sector is now self-evident. Follow the process and use the systems in order to deliver our value proposition - giving customers a less stressful renovation experience while delivering a high-quality outcome. Franchisees have problems when they do not follow the process! Many franchisees have proven this to themselves when they try to disprove it. 

We’ve learned the hard lessons in the past from franchisees that have acted in some way counter to our business model and executed our process poorly. Refresh Control, and the Refresh Process, are designed to allow franchisees to successfully sell and deliver projects to their customers while scaling a multi-million dollar business. The onus is on the franchisee to adhere to their operating obligations as stipulated in the manuals and to achieve their revenue targets, which we help with.

1. Project Managers range from $80k (£40) to $120k (£60) plus vehicle. This varies by region.
2. Renovation Consultant (sales) $45k (£23) to $65k (£30) plus vehicle and incentive-based on Concepts, working drawings and projects sold… we can advise on this.

Refresh provides excellent on line systems and manuals through Refresh Control to help you and your staff manage all aspects of the business.

Absolutely - we need you to do business the “Refresh way,” so offer training on all of our platforms, not just Xero. From time to time we may change the IT systems but there is a consultation process with franchisees if we do this.

1. White non-trade based vehicle (so a management style vehicle and not a van or ute which looks like a trade-vehicle). You need it from day 1 as you need to go and see customers.
2. If your vehicle is in good condition but not white, a very viable option is to have it ‘wrapped’ in white as part of the sign-writing process.
3. Your vehicle will be sign written for you as part of your start-up pack.

Sign writing the first vehicle is part of your initial start-up pack (excluding wrapping, if that is required).

1. Franchisee intranet in Refresh Control.
2. Contact details of all franchisees globally on Refresh Control with local time zone settings so you don’t wake them up in the middle of the night.
3. Weekly newsletter from HO.
4. Monthly Webinars
5. Direct emails from HO managers.
6. Quarterly individual, 6 monthly operational and annual international conferences and meetings.
7. Individual business plans and coaching from area managers and head office managers.
8. Plus many more...

1. You can submit new ideas via email and they will go into the development schedule to be prioritised and considered as new features. You can also submit new FAQs, glossary terms, etc. for consideration to help us grow our knowledge base.
2. Refresh Control has a facility to make suggestions in various places on the site.

We have excellent communications with franchisees. Several areas have informal groups which we support if required. A FAC hasn’t been requested.

1. A Business Plan and Operational Master Plan is set up with each franchise (3 year plan). This includes the individual  marketing plan for the franchise based on their growth aspirations. This plan is reviewed with each franchise quarterly and adjusted as required.
2. The GM’s from each country develop a Refresh company Operational Business Plan that incorporates the franchisee’s business and marketing plans.
3. Business and marketing plans are discussed at 6 monthly and annual conferences which provide input for improvements.

1. Refresh is responsible for national brand marketing and providing the web and digital platforms for marketing. The 1% marketing fee makes a contribution to this resource.
2. Franchisees are responsible for the marketing required to generate sufficient leads to meet their growth targets. Their local marketing budget covers this.
3. Refresh HO provides digital and marketing staff resources and the web and digital platforms for the franchisees to run.