Just Cabins
great returns from MAKING SPACE

Not many franchises can claim to save people money for their home purchase, but Just Cabins does just that. ‘The rental market is not landlord-friendly at present,’ explains franchisor Fenton Peterken. ‘Various governments have put in legislation which has reduced cashflow, such as removing depreciation on real estate, and some political parties have raised the spectre of land taxes. It all makes buying rental property less attractive and being a landlord more expensive.’

But Just Cabins has a solution. Rather than buying property, prospective landlords can instead invest in a Just Cabins franchise, while prospective tenants can save on rent. ‘We have several customers who have given up their $300 a week flat and taken one of our Just Cabins to their parents’ backyard at only $65 a week,’ says Fenton. ‘Within a year, they’ve saved $10,000 as a deposit towards their own home.’

Just Cabins rents out simple, cost-effective and robust portable cabins as extra rooms, offices or on-site accommodation. The stylish units come complete with built-in lighting and power, insulation, carpets, lockable ranch-slider and window, all on a steel-framed trailer base which can be towed easily by a four-wheel drive.

Excellent Cash Flow, Very Lucrative

Fenton was first attracted to Just Cabins as a franchisee when he saw the passive income potential the business offered. ‘Being a Chartered Accountant, I’m always looking for ways of maximising the use of money,’ he says. ‘Just Cabins looked like a great investment because they earn for you with very little input. So I bought the West Auckland franchise in 2010 and, when the franchisor later decided to sell up, I bought the whole business.’

Fenton was so attracted by the business that he actually sold his own accounting firm to put all his energy into it. ‘The figures stack up and I had already proven its worth as a franchisee,’ he explains. ‘You simply tow the cabin to the site, secure it in place then receive the rent on an ongoing basis. The business is very lucrative – six figure incomes are not uncommon for franchisees – and, as portable buildings such as trailers and cabins are clearly classified as depreciable items by the IRD, it means there is that much more to put back into the business to fund continued growth. It provides an excellent cash flow.’

Build Your Own Empire

Tom Priest can attest to that. Tom spent much of his working life buying ailing businesses and setting them back on their feet, but when he reached the age of wanting a retirement business, Just Cabins ticked all the boxes as a long-term investment that would provide good passive income. ‘I bought my franchise in September 2007 and put on 13 cabins in the first six months.’

In fact Tom’s ‘retirement business’ began to look more like empire building as the years rolled by. ‘I absolutely love this business,’ he says. ‘I’ve added many more cabins and expanded by offering extras such as furniture, which is a genuine add-on value that many clients really appreciate for its convenience. It is about the easiest business to run that I’ve ever been involved in.  Over the last few years, I’ve built things up at Rotorua, Taupo and Mount Maunganui and sold them all on to new franchisees who didn’t want to start from scratch. What has surprised us all, I think, is just how much growth we have found despite the global recession. It’s pretty recession-proof, and in my area I have at least three examples of children returning to live at home in a cabin in the garden, as Fenton mentioned.’

Good Territories & Finance Available

Just Cabins now offers a variety of cabin sizes to its customers, from the original standard and large cabins (both designed to meet all local planning restrictions) through to the new extra-large 4.8m long option which appeals to the growing number of commercial customers. Depending on the area, the franchise fee for Just Cabins is between $45,000 and $75,000, plus the cost of the cabins themselves. ‘I’ve found a good starter pack is twenty standard cabins, which should bring a turnover of around $67,000 at $65 per week per cabin,’ Fenton explains. ‘Thirty standard cabins will get you $100,000 a year, and I’ve recently negotiated finance packages with two banks that will enable franchisees to grow their business by borrowing 50-60% of the cabin valuation to acquire more cabins.

There are still 14 exclusive Just Cabins territories available around New Zealand, including some prime opportunities such as East Tamaki and South Christchurch. ‘Our North Christchurch franchisee is swamped with enquiries and is building extra cabins as fast as he can, and anyone taking the south of the city is going to walk into a goldmine,’ says Fenton. ‘But there’s growth in all areas. Demand is continuous, and currently I am employing six people turning out new cabins by the score. I even have 32 cabins rented in unsold areas bringing in over $100,000 per year which are available as an instant paycheque for anyone buying those territories. Contact me now to see how Just Cabins can help you create your own nest-egg.’

This advertorial is taken from Franchise New Zealand magazine Volume 20 Issue 4

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