One of the two Signwave owners who recently bought the Australian master franchise rights has sold his South Melbourne shop to a newcomer to focus on broader national development.
Leo Baker, who with Sydney’s Newtown store owner Dean Rowland and corporate management consultant and Signwave Australia general manager Linda Sultmann bought the rights in February, says the company will ‘expand significantly’ this year as there is still strong growth potential in the wide format franchise market.
“It is obvious there is scope for so much more market growth, despite some recent, incredibly short sighted claims by others that the industry is contracting,” he says.
Baker is likely referring to comments by Signarama national director Evan Foster last week, who said his sign chain could probably only support another 25, mostly regional, locations after opening its 100th shop.
Baker says: “There is still strong market-generated demand for signage and graphics, combined with the project trends that are emerging as a result of new print technology innovations.”
“We believe turning a franchise into a highly profitable enterprise is more easily achieved by individuals with a strong commercial background, experience in people management and who are skilled in sales.”
[Related: More wide format news]
Baker is selling his franchise to newcomer Craig Buchanan – the group’s first new owner-operator since the entrepreneurs acquired the license from US parent Fastsigns.
Buchanan will turn his 20 years of experience in sales, marketing and business management in commercial environments to managing the busy Signwave store.
“The attraction for me was a combination of the commercial return the business model can generate, the support offered by the Signwave network, and, most importantly, the company’s B2B focus means the hours are lifestyle and family friendly,” he says.
Baker says Buchanan exactly fits the profile of owner-operator the franchise is looking to attract, not just for his store but for future expansions beyond the existing 17 Australian outlets.
Baker established the South Melbourne store in 2000 and built it into one of the organisation’s top earning franchises.
He says the sale means he will now be able to focus entirely on his role in franchise support and development.
“Things are definitely hotting up for Signwave in Australia. Since taking over the local ownership of the brand, we have received many enquiries from people interested in opening new centres, converting their existing sign business or co-branding with Signwave,” he says.
The power trio say they have been working to assess the company’s systems and processes and will now instigate change across the group to further support the existing centres.
They plan to move to a proactive strategy for developing the network in 2015, in response to expressions of interest from prospective franchisees like Buchanan.
Baker says the sale of South Melbourne has equipped the group with firsthand experience in creating a smooth transition on entering and exiting the franchise.
“Both Dean and I can relate to the franchise owner experience and know how to make it work for everyone’s best interests,” he says.
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