Special Feature Local Appliance Rentals
With minimal overheads and weekly cashflow, franchise sales manager Byron Hill explains what makes a Local Appliance Rentals opportunity so attractive
“As an LAR franchise owner, you’ll serve a customer base of thousands, with low churn rates and high profit margins. By your third year, it’s realistic to expect a salary and dividends of more than £250,000 per annum, which isn’t an exaggeration – it’s happening now for existing LAR franchisees. “It takes time in the beginning to build up
your rental book, but you’ll soon find you have a stable weekly cashflow that requires almost no maintenance whatsoever. “As a new franchisee, you’ll need to spend £50,000 to £100,000 in the first
Guinot
Louise Marie Jordan runs the Darlington branch of Guinot and has been trading since May 2013
What did you do before franchising? I began my career working for Regis for 10 years, which is where my relationship with Guinot started. A self-employed beauty therapist for 17 years, I used Guinot products and treatments (among other brands), and knew I could always rely on the results.
Why franchise with Guinot? I decided to become a franchisee when I saw an article in the Guinot Gazette – a
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BusinessFranchise.com | March 2018
two years of trading. What makes LAR unique is what you’ll spend that money on: business assets that produce immediate returns.
“The initial investment for an LAR franchise is £100,000. In the first 12 months, you’ll invest your startup capital in brand new, top-of-the-line rental goods. Your investments will exceed your income in your first year, but you’ll still be able to draw a salary of £25,000.
“In months 13 to 24, cashflow improves
dramatically as you approach the payback period on your first round of contracts. Keep growing your rental book in this pivotal year and expect to draw a £50,000 salary. “Your rental book becomes self- sustaining from month 25. From here on, you’re building your rental book with cashflow from weekly repayments. This is the stage where you can typically draw £300,000 plus. As time goes by, your weekly rental payments will start to cover the capital expenditure of new contracts and, before you know it, you’ll be reinvesting your profits to reach scale. “All franchisees receive exceptional support, with comprehensive training on policies, procedures, sales and marketing. You’ll also have access to support throughout the lifetime of your franchise, with permanent assistance available from head office.”
quarterly magazine sent out to all Guinot accounts. I could see times were changing in the industry and felt I needed to do something to gain an advantage over my competitors. The Guinot brand has achieved that – we really stand out from all the other salons.
What training and support have you received (at the start and ongoing)? At the start, I spent a week retraining with Guinot to make sure I was up to date with treatment and product knowledge. I also had franchise-specific training; everything I needed to know to run the business smoothly. Guinot’s support was amazing; we had a whole team come to stay up in Darlington for a few days to help us get set up at the start and answer any questions we had. Guinot is really hot on training – continuous training is provided to make sure we maintain our high standards.
How has franchising changed your life? Definitely, I feel so much stronger running my business with the confidence of the brand behind me. If I hadn’t gone down the franchise route then I don’t think I would have been able to expand my business potential as far as I have.
How hands on are you in the business? I’m hands on day to day with the running of the business, but I also get to spend time on treatments, making clients feel good, which is what I love!
Have you encountered any problems? Not so far! As with any business, I have come across challenges, which I have successfully overcome with the support from Guinot.
What has been the highlight so far? Getting to the five-year mark. It has been a turbulent time for the business with the recession. However, with Guinot’s fantastic support we have continued to run a successful business. I do not know where the time has gone! I am so proud to be a Guinot franchisee.
What are your plans for the future? I was the first Guinot franchise to open in 2013. My initial contract was for five years and I am delighted I will be signing my new contract for 10 years in 2018. I will carry on building the business to become the best that we can become. Guinot is always investing into the treatments, so there will be lots more fun to come!
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