I was surprised to see fifteen Supanews newsagency outlets listed for sale by the company at Seek Commercial. Supanews is a franchise model where franchisees pay a percentage of turnover as the franchise fee.
I was surprised to see fifteen Supanews newsagency outlets listed for sale by the company at Seek Commercial. Supanews is a franchise model where franchisees pay a percentage of turnover as the franchise fee.
Hi Mark,
Supernews must be a good franchise business. The store listed for franchise at Bayside Frankston was taken off the previous franchisee less than 12 months ago after losing about $400k. They got next to nothing and here it is on the market again for $200k.
Have a good day
Is that the one next to Coles on the left? I thought there was only one in the Frankston shopping centre?
Garden City must be a great newsagency – the ad gives it a top price of $10,000,000!
Michael,
The Supanews is in the newer section of Bayside North. Nearer the Safeway. It has been struggling since it was opened according to suppliers.
Apparently the local traders call that section of the centre the ghost town.
Oh, I forgot about the newer section! I’ve only been through there a handfull of times and it didn’t have the right mix of shops, where’s the older section does.
There is obviously a huge imbalance in the franchise arrangement.
I am considering buying a supanews business but know nothing about newsagency. Is it a good business?
Tran,
Take care on considering any business. be sure you understand the real costs of entry and on-going. Get every promise and guarantee in writing and signed by a Director. Shop around too – there are other newsagency franchise groups well worth considering.
Mark
My understanding is that Supanews corp sets up the newsagency, and then they sell the site as a franchise. That would explain a few of them at least.
Still don’t understand why you would pay franchise fees when you can buy a newsagency without. What do you get for the money. Nothing you can’t do on your own , and on your own terms.