Choosing the right franchise or marketing group is a significant decision for any newsagency owner. While the promise of collective buying power and marketing support can be appealing, it’s crucial to delve into the details before committing. As the saying goes, the devil is often in the detail – detail that can be buried within a lengthy contract you might not have the time to scrutinise thoroughly.

To help you navigate this important process, we’ve compiled a list of 20 key questions you should ask any prospective newsagency franchise or marketing group before you sign on the dotted line or renew an existing agreement. Taking the time to seek clear and comprehensive answers can save you considerable headaches and financial strain down the track.

Here are the questions we believe are essential:

1. Product Obligations: Will I be required to accept any specific products? If so, what are these products and what is the frequency of supply? What exactly does your contract stipulate regarding mandatory product? newsXpress does not obligate you to take any product.
2. Unsolicited Deliveries: Is it possible for products to be sent to my newsagency that I haven’t directly ordered? If this has occurred in the past, could you please provide a list of such products sent within the last year? newsXpress does not arrange or support unsolicited deliveries.
3. Business Sale Autonomy: When I decide to sell my business, am I free to sell to any buyer of my choosing without your group having the first right of refusal or requiring advance notification? What are the specific clauses in your contract regarding business sale? newsXpress does not interfere in the sale of your business.
4. Supplier Freedom: Can I source products from any supplier I choose, or am I obligated to purchase exclusively through suppliers approved by your group? Please specify the relevant terms outlined in your contract. With newsXpress you can buy from anyone.
5. Preferred Supplier Pricing: Regarding your preferred suppliers, do they inflate the product price before offering a discount to your group members, or is the discount genuinely applied to the standard wholesale price that other independent newsagents would pay? newsXpress deals are a discount off regular wholesale.
6. Recent Closures: Could you please provide a list of all newsagencies trading under your banner that have closed down or entered bankruptcy within the past two years? newsXpress will provide this.
7. In-Store Business Support: Do you offer an in-store business advisory service? If so, how often and for what duration are these visits conducted? What is the background and experience of the individuals providing this advisory service? newsXpress will help in the manner in which you prefer.
8. Stationery Supply Support: Does your group actively support the newsagency-owned GNS for stationery supply? If not, which stationery supply organisation do you endorse and what are the reasons for this preference? newsXpress supports.
9. Lease Negotiation Assistance: Do you provide a lease negotiation service? If so, are there any additional costs associated with this service? Furthermore, will the lease agreement be solely in my business name, without any reference to your group’s entity? newsXpress offers free lease negotiation assistance and advice.
10. Mandatory Software: Am I required to use a specific newsagency software program? If so, what assurances can you provide that I will receive this software at a preferential price, better than what I could obtain independently? newsXpress does not require you to use any specific software.
11. Ownership Structure: Who are the owners of your franchise or marketing group? newsXpress discloses this.
12. Direct Contact with Owners: Am I able to contact the owners of your group directly at any time should any issues arise? With newsXpress you can.
13. Territorial Protection: What guarantees do you offer that you will not permit another newsagency to join your group in close proximity to my existing business? Is this assurance provided in writing within the contract? newsXpress supports you.
14. Post-Contract Freedom: Upon the expiry of the contract, am I immediately free to join another franchise or marketing group, or are there any restrictions or waiting periods? With newsXpress you are.
15. Central Billing Requirements: Am I obligated to use a central billing service to access supplier discounts or rebates, or can I maintain control over my own business cash flow? newsXpress proffered extended terms through central billing.
16. Business Closure Liability: In the event that my newsagency is forced to close, will I still be liable for ongoing franchise or marketing fees? With newsXpress: no.
17. Sales Data Sharing: Am I required to provide you with my newsagency’s sales figures? If so, what is the purpose of collecting this data and how is it utilised? newsXpress data sharing is voluntary.
18. Conference Attendance: Am I mandated to attend your group’s conferences, and if so, what are the associated costs of attendance? newsXpress members are welcome at our optional national conferences.
19. Initial Joining Costs: What is the complete and total cost associated with joining your franchise or marketing group? Please provide a breakdown of all initial fees. newsXpress has no additional joining fee.
20. Ongoing Monthly Costs: What is the total monthly cost of being a member of your franchise or marketing group? Please itemise all recurring fees and charges. newsXpress has a single low monthly cost.

By asking these pertinent questions and carefully reviewing the contract, you can make a more informed decision and choose a newsagency franchise or marketing group that genuinely aligns with your business goals and provides the support you need for long-term success. Don’t hesitate to seek clarification on any point that is unclear – your future in the newsagency industry may well depend on it.

Whether you’ve got a traditional newsagency or you’ve already made some changes, understanding your current position is absolutely essential. It’s the very first thing newsXpress focuses on when working alongside newsagents.

Think of it this way: having a clear picture of your business’s present state is the solid ground upon which everything else will be built. It involves taking a thoughtful and thorough look at your operation from all angles. So, what information will be most helpful? Here’s what we consider important:

• A profit and loss statement that reflects the current situation.
• Up-to-date reports on who currently owes money to the business (your debtors) and who the business currently owes money to (your creditors).
• A comprehensive list of all outstanding amounts owed to the business, both through formal invoices and any less formal arrangements.
• A recent stocktake that provides the total value of all the stock you currently hold.
• A specific listing of any stock that hasn’t sold for six months or more (often referred to as dead stock), along with its total value.
• A floor plan of your newsagency that indicates the gross profit percentage generated by each product department or category, as well as the amount of floor space allocated to each.
• The total number of hours rostered per week for all staff members, including yourself, and the total revenue generated per hour.
• A comparison of your revenue across different product categories for the past six months when compared to the same six-month period in the previous year.

While a desire for change is good, it’s equally important to have a clear understanding of your business’s present circumstances and its capacity to accommodate change. The information outlined above will highlight immediate opportunities and provide insight into your ability to invest in making those changes. This is always the initial step in any business transformation we undertake together.

When you’re reviewing this data, we suggest focusing on identifying some achievable early wins to help build momentum. For example, if you find you have, say, $10,000 or more tied up in dead stock that has already been paid for, consider making a concerted effort to move it. Freeing up that capital and the physical space it occupies can have a surprisingly positive impact on your business. Perhaps setting up a designated clearance area with a consistent, reasonable discount, such as 50%, could be a good approach.

As you’re addressing the dead stock, take some time to carefully analyse the rest of your data. This will help you understand your current performance across different areas and identify potential opportunities within your existing product categories. This deeper understanding will provide a thoughtful direction for your initial steps forward.

As you gently explore the data, make notes of any ideas or specific actions that come to mind. You might just uncover some valuable opportunities that you hadn’t previously considered.

Some retailers find it helpful to seek advice from accountants or business consultants. While this can certainly be a valuable resource, it’s wise to ensure that anyone you consult has current, practical retail experience within the newsagency industry specifically.

Remember, this is ultimately your business. You are the one guiding the process of change and transformation. Embrace that ownership.

Begin by gathering this essential data, gently streamlining your operations where possible, and building a strong, clear understanding of your current position. This will thoughtfully prepare you for more significant and rewarding developments in the future.

newsXpress is here to help.

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