Public Relations Company

 
Public Relations Company  
 
MEDIA RELEASE 8 February 2006

BBX looking to expand franchise operations in 2006
With growing acceptance by the business community of barter trading as a valuable tool, Business Barter Exchange (BBX) is looking for franchisees to grow its business and membership base.

Last year BBX floated on the Australian Stock Exchange, putting it in an ideal position to capitalise on the market potential. BBX members already transact around $100 million trade on an annual basis and the company is the second largest barter operator in Australia, facilitating the ‘cashless’ trading of goods and services between members

BBX founder and Managing Director Michael Touma said that they were looking to establish new franchises throughout metropolitan areas in all Australian States and Territories plus the major NZ Cities and Provinces, as well as Master Franchisees throughout South East Asia, but the main requirement is to find the right people.

“BBX’s growth strategy includes the roll-out of several franchises across Australia, which will result in some excellent opportunities for well-credentialed business operators,” Mr Touma said.

“Running your own BBX franchise gives people flexibility they wouldn’t normally have if they were working for someone else. There are currently not a lot of white collar franchises available and BBX offers people a great opportunity to be part of a relatively new, growing industry and to be self-employed.

“The people we seek have worked in white collar jobs in industries such as finance, banking or insurance, or with a similar business background. They don’t necessarily need strong sales skills or experience but must be able to manage a business, manage people and converse with business owners by phone and face to face.

“To support new franchisees whilst they are learning and gaining experience, we provide a minimum income guarantee of $1,000 per week for the first three months of operation. BBX also provides the new franchisee with a computer network comprising two networked computers plus a server, with all proprietary software loaded and ready to go.

“We also offer an interest-free BBX line of credit, in trade dollars, to assist with the start up costs, so in essence the additional costs to a franchisee, beyond the initial franchise fee, should be fairly minimal given the income guarantee provided by BBX and the fact that this will be supplemented by income that the franchisee is expected to earn during the first three months.

“There is an initial franchise fee of $65,000 plus GST, but we estimate that $90-$100,000 is required for the franchise. This allows approximately $25,000-$35,000 for working capital to cover business needs in the start up phase.

“The income potential is largely unlimited because you have control over the level of activity and degree of effort you put in, and results are usually commensurate with the effort,” said Mr Touma.

David Freeman, General Manager of BBX said that in the early stages of opening a franchise, based on introducing up to ten new BBX members a month, the income for a franchise could be between $5,000 and $8,000 per month. BBX supplements this income in the first three months by $1,000 per week.

“Having owned and operated my own BBX franchise for more than eight years, I have found that it can be a very rewarding experience helping business owners improve their income and profitability by introducing a captive market of potential new business in a way that no one else can. Our system of generating business is unique to the barter industry and the financial growth potential for members is largely unlimited,” Mr. Freeman said.

“Additional income is received from the trading activity of the new members introduced to BBX by the franchisee, and over time this will build into a very healthy passive income stream.

“People with a strong will to succeed, a degree of business maturity and the ability to talk to different people, should find it easy to succeed as a BBX franchisee,” he said.

The principle of barter, exchanging one article for another without the use of money, goes back to the dawn of history and was used by most primitive tribes as a means of obtaining the goods they wanted.

Today, the system has become much more sophisticated with a business joining a trade exchange so that they can exchange goods or services with other members, with the trade exchange acting as the regulator and the generator of trade between members in what is essentially a cashless trading economy.

A trade exchange uses trade dollars, which have par value with the local currency, to assign value to the transactions that take place between members. In essence, the exchange acts as the third party record keeper, similar to a bank, and issues members with monthly statements, showing the purchases and sales they have made during the month and plastic identification cards similar to other credit/debit cards in order to conduct business.

In the United States, barter has become a widely accepted business method with total annual sales of billions of dollars.

BBX has approximately 4,300 Australian and New Zealand member businesses, with offices and/or franchises situated in NSW, Queensland, Victoria, South Australia, Western Australia, and Tasmania, as well as New Zealand.

The company, and its franchises, currently employs approximately 60 staff and consultants.

BBX can be contacted on (02) 9476 6655 or 1800 222 229. The website is www.ebbx.com.
***

Released for BBX by Dennis Rutzou Public Relations.
For further information contact Dennis Rutzou
or Fiona Pennington on (02) 9413 4244.



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