and a business that can be operated under management so that you are not always at the coalface.
• A scalable franchise – whilst franchisees can earn a decent income with just the one territory, many decide to reinvest their cashfl ow as soon as they see what they can earn. It’s not uncommon for a franchisee to own multiple territories and once you have proven yourself, head offi ce will be more than willing to fi nance you into another territory
What are the benefi ts of working with a franchise such as Local Appliance Rentals over going it alone? As well as training and support, and being part of a network, there’s also a few ways that Local Appliance Rentals helps to minimise risk for its franchisees, such as: • Your money is spent as-and-when you sign up a new customer. You don’t have to hold expensive stock.
• Your money goes straight into real- world items with a resale value. Even if a customer drops out, you still own a nearly-new item that can be sold on or rented out to another customer.
• You’re not tied to one product type, so you can adapt to match your local market’s needs. Local Appliance Rentals started with household appliances, and has since grown to include smartphones, furniture, electronics and more.
You’ll be amazed at how quickly the business grows. Few businesses can
Inside Story Byron Hill
“Our franchisees are personable, savvy business operators with the hunger and resilience needed to build an income stream for the future”
off er work-life balance, cash, income and freedom of a Local Appliance Rentals.
What level of investment is involved? As a new franchisee, you’ll need to spend £50,000 to £100,000 in the fi rst two years of trading. What makes Local Appliance Rentals unique is what you’ll spend that money on – business assets that produce immediate returns.
Entry-level investment starts at £24,950 (plus vat) for our gold franchise package and £39,950 (plus vat) for our platinum level franchise. You will also need to have further working capital to fuel business growth. A line of credit of approximately £50,000 will get you started.* Achieving £250,000 inside 24 months is typical, however, our Taunton franchisee generated £470,000 of gross contract receivables (GCR) in 15 months; our Wolverhampton franchisee wrote £285,000 GCR in 18 months and in Stoke the business hit £650,000 GCR in 30 months. 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 profi ts to reach scale.
Who are you looking for? Anyone prepared to follow the system and willing to understand how the business works. Our business model has been fi ne-tuned over a decade with more than 150 successful franchisees. The most successful franchisees are personable, savvy business operators with the hunger and resilience needed to build an income stream. We need long-term partners who can commit to a 10-year franchise agreement, and who have the necessary cash reserves to make their territory work.
Local Appliance Rentals Rental services
localappliancerentals.co.uk/franchising
byron@localappliancerentals.co.uk 0800 160 1517
Case study: Matt Hall, Local Appliance Rentals, Guisborough
Tell us about the training and support. Training was very thorough and left me feeling confi dent enough to write my fi rst few contracts. The training material is easily accessible to go back to at any point if you come across situations that you’re unsure of. The support network is also great; everything is in place in terms of infrastructure and regulation. There’s always help from head offi ce and our business development manager helps me keep me on track and the marketing manager makes our marketing strategies easy to implement. You never feel you’re out there on your own.
How is trading so far ?
The demand is as I thought it would be, having had experience in this sector in the past. And I can only see it getting bigger, too, as the brand becomes more established in the UK! My loan book is worth over £100,000 after only four full months of trading, and I honestly feel that I’ve only scratched the surface. These contracts have been achieved without putting a lot of eff ort into marketing yet. The arrears are less than I expected. Due to Local Appliance Rental’s fl exibility on arrears we have a slight advantage over some of the other operators
in this sector. However, don’t walk into this business and expect not to have arrears. Arrears management is an essential part of the business and as important as sales.
Would you recommend a Local Appliance Rentals franchise to others? I would – highly! – to anyone out there looking to build their own business, one that they will enjoy, with low overheads, that means they can work fl exible hours and, most importantly, is one that comes with a business model that work and is easily scalable.
September 2018 |
BusinessFranchise.com | 53
*Based on typical results achieved by franchisees who have met targets over an extended period of time.
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