Franchising: Cleaning firm chasing expansion

By Graeme Kennedy

Friday 9th August 2002

Rene Mangnus

Dunedin-based commercial cleaning franchisor Crest will continue chasing growth with or without the $1 million it hoped to raise through a share offer to fund expansion.

Crest managing director Rene Mangnus said his company, which is listed on the Stock Exchange second board, and three others had earlier this year each sought $1 million from investors.

"We were part of a group of four which went to the market together offering potential investors choice to invest in one or several of us," Mr Mangnus said. "But a couple of recent large offers swallowed up a lot of investment cash and the election and New York Stock Exchange slump had an effect on the local market.

"There is still time and we are persevering with it. The offer has been extended to August 16 and if investment has not reached the $300,000 minimum by then we will return the money to investors and probably launch it again next year."

Mr Mangnus said Crest would continue to expand but at a rate slower than with the $1 million. He said Crest needed investment capital for its in-house finance company Franchise Finance which funded franchisees into the company's commercial cleaning franchises.

"Lack of capital can be a problem for franchisees and our company is there to help people finance themselves into our businesses. There is a lack of business finance in New Zealand, not only for franchises but also across the whole range."

Mr Mangnus started Crest Commercial Cleaning seven years ago and the company has grown to 46 franchises in both islands.

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