Australian and New Zealand home appliance rental franchise Mr Rental has again secured its status as one of Australia’s best franchise systems, finishing fifth in the top ten for 2010 and also securing the number one ranking for franchisee intention to renew.

Strategic marketing intelligence agency 10 000 FEET compiled the research for this year’s survey with Mr Rental also being recognised as the fifth best franchise in providing support to franchisees and third in the rewards and lifestyle criteria.

Franchisees were surveyed on a number of different areas relevant to the business including level of financial and social rewards they received, feedback and support from the franchisor, passion, improvement and overall best franchise.

Mr Rental General Manager Alan Payne said the franchise had worked particularly hard on improving its support and communication to franchisees which was reflected through an 18 percent improvement and a jump from seventh to fifth position in 2010.

“Following last year’s results and continuous feedback from the network we have worked hard to establish new communication processes with our franchisees,” he said. “This includes developing a company intranet, expanding our social media communications and improving networks for business owners to discuss problems. We also like to support our franchisees so they can ‘work on the business’ instead of in it so they can really build their investment and improve their lifestyle which we believe is strongly recognised by the fact we were the number one ranked franchise for renewal.”

Mr Rental is still relatively new to the franchise industry only becoming a registered franchise system in 2001.

The Mr Rental story started back in 1991 when the company was founded by Glen and Kerrianne Hickman on Bribie Island. Ten years later they decided to franchise the Mr Rental concept with a vision to become ‘the world’s first choice in home appliance renting’. Within two years they had over 30 stores throughout Australia and New Zealand, growing to the current number of 80 outlets in Australia and New Zealand.

Mr Rental has enjoyed success due in part to the slowing economy which has increased demand for renting computers, whitegoods, electrical and furniture instead of purchasing outright.

Mr Rental Franchise Information

Last year 2009 1 franchise in Renew

3 franchise for lifestyle and rewards

Area: Home Appliances, Rental

Business Established: First store opened in 1991, first franchise in 2001

Stores: 70

Agreement Terms: 10 yrs (5+5)

Training: 2 weeks in class room, 1 week in store, ongoing training, each store has its own business coach

Awards: Mr Rental has won numerous national and international awards including winner of the FCA Excellence in Marketing Award 2009 & FANZ Media Campaign of the Year 2009, Australian Emerging Franchise System of the Year 2008 & QLD Emerging System of the Year 2007, National finalist in the FCA Media campaign of the year 2007 & 2008. Kerrianne Hickman was FCA QLD Franchise Woman of the Year 2006 and they were winners of the 2005 Family Business QLD (2nd Generation). Mr Rental Hamilton won the FANZ 2008 Franchisee of the Year (retail category) and Mr Rental were finalists in the 2007 & 2008 NZ Franchise System of the Year.

Business Model: Keeping it simple: 2-3 staff members in a retail outlet, the majority of enquiries come over the phone. Low rent locations are chosen. The model is based on recurring revenue. It’s a predictable business. Working hours are 9am-5pm Monday-Friday which makes it lifestyle friendly. There is a strong working “on the business” focus for franchisees. Franchisees have access to a software program developed to manage the business and a benchmarking software

Main Costs:
Ongoing stock purchasing, rent, wages
Main products or services:
fridges, washing machines, TV, computers