It is a case of David and Goliath as the new master franchisors in the signage world go to work full time on expanding the smaller Signwave network even as major player Signarama opens its 100th store.
With 17 stores in Australia, the three Signwave owners - Leo Baker, Dean Rowland and Linda Sultmann, who took on the role in February – are determined to take the fight to their larger competitor. They expect to not only open new centres but say they are fielding queries from existing sign businesses that want to co-brand.
Baker, who sold his own South Melbourne store, established in 2000, to Craig Buchanan in order to work full-time growing the franchise believes it was a sound business decision.
“Selling South Melbourne allows me to fully focus on my role in franchise support and development,” he said.
He believes the sale has given him first-hand experience on what is required for a smooth transition on both 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. Through Linda’s recent market research and business analysis, we have discovered there is still strong market generated demand for signage and graphics … 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.”
Certainly the reported notion that the sector is contracting is not supported by the ambition of Signarama, which declares it intends to open10-15 new stores in Australia this year. According to Evan Foster, national director, United Franchise Group – Signarama’s parent franchisor – the opening of the 100th store in Australia, in Mosman NSW, is a milestone that represents a rapid expansion of the signage franchisor in this country and the company’s success in growing local businesses.
“Signarama is proud to announce this 100th store achievement. The opportunity to extend Signarama’s marketing knowledge and signage services to businesses in Mosman and throughout Australia is an honour and we will continue to contribute a valuable, supportive role to maximise the bottom line for all businesses we work with,” he said.
Signarama has been operating in Australia for 25 years where it employs over 500 people and is the largest global franchise company of its kind.
When it comes to points of differentiation the Signwave people maintain their franchisees are on the whole larger operations, moving away from shop fronts towards industrial facilities. According to Linda Sultmann, director, their franchises are focused on higher volume businesses, forming strategic partnerships with larger clients. The new master franchisors initially intend to remain focused on improving the service and back up for existing clients, before embarking on a three to five year plan to double the number of franchises.