Snap asserts 'strength' following Worldwide's strife

Active Links: 1334
Pending Links: 77
Todays Links: 0
Pending Articles: 28
Total Articles: 767
Total Categories: 40
Sub Categories: 0

Date AddedApril 28, 2010 02:06:08 PM

Author

Snap Printing has moved to reassure its franchisees of the model's strength in the wake of Worldwide Online Printing's administration.

In an email sent to its franchise network and seen by ProPrint, Snap chief executive Grant Vernon said: "Please rest assured that Snap Franchising is in a very strong financial position. We are profitable with good cash flow and we continue to invest in pursuing our vision."

In the email, Snap's Vernon (pictured) added: "This is obviously not good news for Worldwide franchise owners. Everyone in Snap should handle this matter in a professional and respectful manner."

Vernon told ProPrint that Snap, which has more than 150 franchise stories around Australia - nearly twice Worldwide's 85 outlets - had strength through "scale that Worldwide doesn't have".

Snap's franchise model is said to be different to Worldwide's in that Snap HQ earns revenue solely through franchise royalties not the production hubs, which Vernon said keeps the model transparent.

According to an old listing from Worldwide on online directory AustralianFranchises.com.au: "You don't need to have any print or design experience to own a Worldwide Online Printing design and print centre.

"With Worldwide, you can even run a successful print and design franchise without having to invest in a single press," according to the listing.

"Our 'hub and spoke' business model was the first of its kind in the Australian print industry; most of the big jobs from our 79 local design and print franchise centres across the country are actually printed, finished and delivered to clients on-time from our print factories," reads the listing.

Worldwide appointed McGrath Nicol as administrators last week, led by Wayne Turley. Neither the administrators nor Worldwide's Perth head office could be reached by ProPrint.