Questions and Answers

 
How long has Helium Work Search been operating and how long has it been franchising? If there are already successful franchisees in New Zealand, it suggests that the system works and your risk is therefore lower. On the other hand, a new franchise may offer better opportunities and have a wider choice of locations. But you'll need to take a lot more care with your research.

Helium Work Search has been operating since mid 2003. Our franchising model was set up and began running in April 2008. Our Wellington office is the first franchise in operation.

 
Is the market right for the product? Is there a long term future for the business? How will it be affected by the growth of online marketing?

There will always be an ebb and flow in the recruitment industry and this is often driven by the state of the economic climate at the time. Yes there is a long-term future for the business as we have a number of innovative recruitment options that make using Helium Work Search a viable option for potential clients in the recruitment process and thus the franchisee. Helium has also developed a unique brand in the market place that is distinctive and catching to both clients and candidates alike.

 
Who is the competition? What advantages does the franchise have to offer its customers?

There are a range of recruitment agencies in the market. All can be considered as competitors, particularly those who also work in the same recruitment space as Helium eg Information Technology. Helium is seeking to expand into other areas of recruitment.

 
Is the franchise a known name in New Zealand that will attract customers for you?

Yes. We work with a client base that is NZ wide although most clients are based in the 3 main centres' of Auckland, Wellington and Christchurch.

There is a national database of candidates and clients already established in our systems. It is not a comprehensive list and will be further developed over time.


How does the franchisor make money? Is there a large initial franchise fee, an ongoing royalty fee that's fixed or based on turnover, and/or markup on products sold to you by the franchisor? Beware of large initial fees as franchisors who only make money from selling franchises may not be interested in you once you've bought your franchise.

There is an initial franchise fee and an on-going royalty based on turnover. It is in our interest to ensure any future franchisees get the support they need to ensure success. This does not necessarily mean we will supply a full range of client contacts – this is the role of the franchisee to market Helium's services and to reap the rewards that hard work in this area ultimately delivers.

 
Do you have to buy products or services from the franchise? If so, are these at the same or a lower price than you could buy elsewhere?

No, although there will be costs associated with leasing some equipment e.g. computer hardware. Helium also has invested in its own psychometric testing tool which franchisee's can utilize at cost and then place a mark up.

Helium also provides bulk purchasing rates across various job boards, telecommunications and printing and as the Franchise grows so will the discounts available.

Helium will also provide accounting support for the first 6-12 months to assist franchisees develop their business. After that time period there will be additional charges.

 
What training will you receive initially? How long is it? What does it cover? Is there an additional fee for training?

As much training as required will be given. This will cover both the overall franchise process and also any IT system based training. This could initially take as long as 2 weeks. There is an additional fee for training.

 
What level of support can you expect? Will you have regular visits from a member of the franchisor's team to help you analyze your performance and suggest improvements?

You will be provided as much support as is required although ultimately your success will depend on the work you do yourself. Our overall aim is to ensure you are successful. Helium views franchising as a partnership and to that extent we view our commitment to franchisee's as ongoing and open. The Director's are committed to providing the help necessary to build your success.


What benefits can the franchisor offer you through group purchasing of goods and services? In some franchises, the value of the discounts alone offsets the cost of the ongoing fees.

There are no products to purchase and any equipment required is generally leased.

As stated in an earlier question, Helium has invested in its own psychometric testing tool which franchisees can utilize at cost and then place a mark up. We also provides bulk purchasing rates across various job boards, telecommunications and printing and as the Franchise grows so will the discounts available.

Helium has made considerable investment into its marketing collateral and will continue to do so.

 
What figures can the franchisor produce to back up claims? Are they based on fact? Are the sales levels realistic? Who is already achieving them and can you talk to them? What are the total costs?

We can provide accurate models that will allow you to create ‘scenarios' as the business grows. Sales levels are uncapped and initial targets are just that and are set at realistic levels. The Wellington franchise has been achieving excellent results since we started. Again results are dictated by the level of economic activity, the commitment of the individuals involved. Helium has a record for reinvesting in its business.