Drain-Surgeon-Archive
ABOUT THE DRAIN SURGEON
The Drain Surgeon was established by Glenn Pratt in 1979, initially as a Pretoria-based plumbing repair company. By 1989 the company was well-established in the greater Pretoria area and the time seemed right for national expansion. Appreciating that establishing branches in all major centres would require vast amounts of capital and that effectively managing remote branches could pose a problem, Glenn opted to pursue franchising instead. Today, The Drain Surgeon is widely acknowledged as the pioneer of branded services in the plumbing repair services industry and by dint of aggressive marketing and a service-oriented approach The Drain Surgeon is an established household name across South Africa.
The first Drain Surgeon franchise was launched in 1991, but before setting his franchising plans in motion Glenn approach The Franchise Association of South Africa (FASA) for advice and conducted an extensive study of similar operations overseas. He then employed the services of leading consultants and a specialist attorney to create the franchise package and draw up the franchise agreement.
MEET THE TEAM
GLENN PRATT
Managing Director
As the founder of The Drain Surgeon brand Glenn is also the Managing Director of The Drain Surgeon Franchising. A qualified Master Plumber by trade, Glenn worked as a plumber himself for 12 years and has been a franchisor for 29 years. Under his guidance The Drain Surgeon has grown from a single outlet to a multimillion rand enterprise with more than a hundred employees.
LOUIS MINNAAR
General Manager
Louis joined the Surgeon Group in early 2018. Louis has extensive experience in franchising and has owned numerous own businesses.
BEN BOOYSEN
Group Franchise Manager
Ben (B Com Law, MBL) joined The Drain Surgeon in 2008 as National Franchise Manager after having worked in the financial industry for 13 years. Ben is primarily responsible for overseeing the franchisees and building the franchise base.
OUR CULTURE & VALUES
With a 40-year pedigree, certain values, such as family values, responsible citizenship and entrepreneurship are embedded in the fabric of the company. With Glenn pioneering branded plumbing services and then pursuing an aggressive marketing and advertising strategy our culture is one of innovation, creative thinking and pushing the know boundaries.
OUR FRANCHISE OFFERING
With The Drain Surgeon franchise opportunity available since 1989, the system had reached a level of maturity which necessitated a revamp of the franchise model. After a great deal of research and with the advent of new mobile workforce applications, the prospect of centralising certain functions at HQ became the driving force behind the new investor-friendly franchise model that affords investors the opportunity to choose their level of involvement in the day-to-day running of the business. Group marketing, a centralised call centre and system-driven dispatching to the plumbers allows for a low level of involvement in the daily running of the franchise.
Every franchisee is provided with a cell phone that will serve as the primary communication tool used by the plumbing team. A software program installed on the cell phone will allow the plumbing team and franchisee to receive job cards, issue invoices, and manage their stock on-hand.
OUR VALUE PROPOSITION
Increasingly, consumers prefer to deal with names they know and trust making it difficult for smaller plumbing operations to grow. With the support of The Drain Surgeon’s brand, tried and tested systems, and continuous innovation in marketing and management control systems, we provide a solution that is unmatched in our industry.
PRODUCTS & SERVICES
The fact that every office block, factory complex, hotel and private dwelling has plumbing installations which needs to be maintained no matter the state of the economy, means that this is a virtually recession-proof business opportunity.
While The Drain Surgeon primarily provides plumbing repair services to commercial/industrial clients and home owners, the company also has a range of add-on services and house brand products such drain cleaning chemicals, root killer, leak detection, high pressure jetting, camera inspections and septic tanker services.
MARKET TRENDS & TARGET MARKET
With the advent of Google and the increased utilisation of mobile phones for people to search and find solutions, the plumbing industry had to adapt, and that is where The Drain Surgeon has excelled. Surviving in an online world, The Drain Surgeon’s application of a Mobile Workforce Application to log, dispatch and manage all aspects of a plumbing job is setting trends in the plumbing industry.
In terms of a target market for franchisees, we want to establish a Drain Surgeon franchise in every neighbourhood. The franchisee should be mom and dad wanting to setup a small business to supplement their home income.
BECOME A FRANCHISEE
Our founder Glenn Pratt believes strongly that the services we provide are merely tools for the attainment of wealth, and that if a franchisee invests the necessary time, follows the franchise model and works hard, the wealth should follow.
While our franchise model allows for different levels of franchisee involvement, compliance with the franchise system is a must. Franchisees must have an outgoing personality who can promote our services in their local community and introduce the business to new clients. Last but not least, our franchisees must share our service-oriented attitude as we consider this the very foundation of the Group’s long-term success.
ESTABLISHMENT COSTS
LEASED VEHICLE FORMAT:
Establishment cost: R125 824
Joining fee: R75 000
Working capital: R50 000
Total set-up cost: R250 824 (excl VAT)
- TOTAL set-up cost = Establishment cost + Joining fee + Working capital
- Own cash contribution requirement is equal to the Total Set-up Cost
FINANCED VEHICLE FORMAT:
Establishment cost: R294 404
Joining fee: R75 000
Working capital: R50 000
Total set-up cost: R419 404 (excl VAT)
- TOTAL set-up cost = Establishment cost + Joining fee + Working capital
- Own cash contribution requirement is equal to the Total Set-up Cost
LOCATION REQUIREMENTS
Teams operate from the franchisee’s house and the minimum requirements are safe overnight parking and ablution facilities for the plumbing team.
STAFFING REQUIREMENTS
If the plumber is properly qualified, they should still have at least 3 years’ maintenance plumbing experience. If the plumber is not qualified, at least 5 years’ experience is required. The assistant and or plumber should have a drivers’ license.
TRAINING
New franchisees receive 1-week training on all aspects of the franchise system, while plumbers receive 1-week training on such practical aspects as the mobile workforce system, customer service and sales. The training takes place at the head office in Pretoria.
AVAILABLE LOCATIONS
Eastern Cape:
Port Elizabeth
Gauteng:
Johannesburg Eastern Suburbs
Mpumalanga:
Nelspruit
Western Cape:
All towns & cities
FRANCHISOR SUPPORT
While the investor is solely responsible for managing the finances of the business, the franchisor runs monthly reports to ensure that the franchise is financially profitable and that each business performs within the expected parameters.
The franchisor conducts advertising and marketing campaigns on a national basis to ensure that The Drain Surgeon brand remains top of mind with consumers and to support these initiatives franchisees are required to contribute towards the national advertising fund. Franchisees in turn are assigned a geographical area in which they must execute their own localised marketing plan.
The National Call Centre, outsourced to The Surgeon Group is manned by highly experienced staff and operates 24/7/365. Calls received by the National Call Centre are dispatched to franchisees on the basis of their availability, but it is up to the franchisee whether or not to accept the job.
Franchisees also benefit for the Group’s buying power, including competitive prices on materials from the national supplier network.
TERMS OF AGREEMENT
Agreement term:
5 Years
Royalty fee:
10% of turnover (payable weekly)
Management services fee
The MSF is a variable amount set on a quarterly basis, in advance, by The Surgeon Group. The amount is dependent on volumes processed and resource costs.
Marketing fee
10% of turnover (payable weekly)
COMPANY INFORMATION
Registered name:
The Drain Surgeon Franchising Africa (Pty) Ltd
Registration number:
1995/004486/07
Head office address:
350 Jan Shoba Street, Hatfield, Pretoria, 0083
Postal address:
PO Box 912100, Silverton, 0127
Phone:
+27 12 443 5000
Email:
Website:
Shareholding:
Ttarp Trust 100% — represented by Glenn Pratt
INDUSTRY ASSOCIATION
The Drain Surgeon is a Full Member of FASA. The Drain Surgeon was featured in two successive editions of the How To Franchise A Business guide as well as several editions of The Franchise Book of South Africa, all published by FASA. In each instance, aspects of The Drain Surgeon’s franchisee support system were presented as examples of sound franchise practice. The Franchise Digest, FASA’s newsletter, featured The Drain Surgeon repeatedly, for example under the heading Adherence to Sound Franchise Principles Translates into Phenomenal Success for Service Franchise, which recognised The Drain Surgeon’s professionalism in building franchise operations.
Glenn Pratt has served as Vice-President of the Institute of Plumbing South Africa (IOPSA) and Mark Pratt is serving as treasurer on the IOPSA executive committee.
In 2014 The Drain Surgeon Franchising Africa was a finalist in the prestigious E&Y World Entrepreneur Award – Emerging markets.
FAQ's
FUNDING APPLICATION
The consideration of an application for funding by an individual to a financial institution, whether it is a commercial bank or a development funding institution, always pivots around two principles:
- The profile of the applicant candidate with reference to financial position and the way in which an individual conducted his or her personal financial affairs. In certain cases, prior experience in the industry in which the franchise brand operates will be required, e.g. the restaurant and hospitality industries. The funder will also assess the current lifestyle of the applicant in order to determine if the size and profitability of the new business suits the applicant and if expectations could be met.
- The parameters of the actual opportunity available, whether it’s a new or existing business. The business case for the repayment of a loan is always dependent on the numbers, which is a function of location, projected sales, overheads, etc.
It is therefore not possible for a funding application to be processed unless all the details of the applicant, as well as the details of a business’ plan, demonstrating that the business will be able to repay its debt, are available. The initial step will always remain an application to the franchise brand in order to introduce a candidate, after which specific opportunities would be communicated to be followed by an application for funding.
What could be stated is that once a prospective franchisee has completed the online 6-step application process below, the same application will be submitted to the funder, i.e. no additional forms will be required.
ABOUT THE APPLICATION PROCESS
Should you wish to proceed with the application process, you will be required to register online and navigate your way through a 6-step application process. Only after completing the application process will the franchisor provide you with a detailed Disclosure Document as required by the Consumer Protection Act.
The 6-step application process is designed with three objectives:
- To allow the prospective candidate an opportunity to disclose and communicate all the personal information required by the franchisor and the funder to take a view on how well-suited you are for assuming the role of franchisee.
- As intimidating or time consuming as the application process may seem, it exposes you to a fraction of the level of resilience required to ultimately own and manage your own franchised business.
- Successful franchisees comply with the rules and procedures of the business system. Completing the five steps of the application process can be deemed your introduction to adhering to The Drain Surgeon’s business system.
While the application process is not intended to discourage prospective franchisees or to create barriers to entry, the process by its very nature will serve as an early deterring mechanism for candidates who should not be pursuing business ownership. The truth is that the challenges a franchisee will face in their own business is significantly more complicated and daunting than the application process. If you are intimidated by the 6-step process running a business will likely be more challenging than you are anticipating, essentially putting yourself, the franchisor, the funder, the landlord and your future staff at risk.
From a cost perspective the charges relating to the entrepreneurial assessment, application review and credit profile verifications are insignificant when measured against the cost of buying a franchise, and it could be the best money you ever spent should the outcome confirm that you should not venture into business or that you would not be able to attract funding.