HIRE A HUBBY

Brendan Green, Hire A Hubby CEO, says the brand’s income guarantee is designed to be a security blanket.

“All income guarantees are for 12 months and work on gross profit figures.”

Hire A Hubby has bronze, silver and gold territories, allocated according to the potential of the average person going into a territory, and each has a set income guarantee.

“If you meet the criteria, at the top end it is $125,000 for gold, and $100,000 for bronze. That’s $500 a day in gross profit.”

Brendan is confident the franchise’s systems, if followed, can produce the minimum figures.

He is also clear that this is a stop-gap procedure, not something that franchisees can learn to rely on. “This is a top up, not a gift. This is not a chance to sit back.”

It is crucial franchisees appreciate the need to do the hard work in building the business themselves and understand they are “fully supported”, says Brendan.

The guarantee was introduced 20 years ago in a much looser form than it is today. Lessons learned over the years brought a tweak of the process, providing some working conditions such as franchisees being available weekdays between 8 am and 6 pm, and an occasional Saturday; taking on new opportunities; following local area marketing initiatives; and notifying the franchisor on a specified day that upcoming bookings are low.

“These are not hoops you can’t jump through,” says Brendan.

There is a weekly basis for the top up, allowing franchisees to keep trading. Many have to buy materials for real estate jobs but are not paid for 30 days.

“This is a way to top up to give them the confidence that what they thought was a benefit proves to be a benefit.”

Unlike some income guarantee packages, this is not optional – it’s included in the cost of every new franchise. And that has meant a more stringent approach from the franchisor in selecting sites.

“We won’t sell a location anywhere we can’t meet the guarantee. We’ve been a lot more selective about this,” he says.

And despite the standard inclusion the take-up of the guaranteed income is very low, says Brendan.

“I’ve got one out of 29 (new franchisees) relying on it.”