Perth-based Mpower Franchising Group, which owns the Housework Heroes and Car Care franchises, announced today the purchase of Melbourne-based United Home Services, which has more than 100 franchisees on the east coast.
The deal, finalised after negotiations that spanned two years, sees the total number of Mpower franchisees jump from 150 to 250 nationally.
The deal also makes Mpower one of Australia’s largest domestic cleaning franchises.
Mpower national franchisor, Mike Stringer, said the difficulty in setting up franchise operations on the east coast was the impetus for the decision to make the deal.
“Our brands, Housework Heroes and Car Care, started in WA, which makes it difficult to grow from scratch over east, especially when size is becoming more important. United Home Services has been trading for 15 years and was already well-established.”
United Home Services offers home and office cleaning, carpet cleaning, ironing and gardening services and featured in BRW magazine’s Fastest Growing Franchise list in Australia for the last six years.
Mr Stringer called the acquisition of 100 franchisees helpful in an industry that thrives on size and needs “consolidation and economies of scale.”
“Besides organic growth through our own brand, we have actively been looking to grow assets through acquiring other growth businesses,” Mr Stringer said.
“United Home Services stood out to us because of the strong geographic synergy between our own Housework Heroes cleaning franchise presence and the States where we are yet to expand.”
United Home Services began franchising in 1998 and now operates not only in Melbourne and South East Melbourne but also in Sydney, Newcastle, NSW Central Coast, and Brisbane South.
Housework Heroes commenced business in Perth, Western Australia in 2001 and has grown to become the dominant domestic cleaning franchise in WA.
In 2003, the business expanded into Queensland and South Australia through the appointment of two Master franchisees and has since appointed franchisees in New South Wales and Victoria.
Mr Stringer said the success of a franchise business rests heavily on master franchisers, who are the key component that determines whether a franchise business will take off.