Help with getting it right will keep business on track
STARTING a retail business can be tough on your own, but a franchise can help. Rachid Kader opened a branch of French furniture retailer Gautier in Chiswick, London, last year.
Gautier has outlets in 45 countries and is recruiting for around 15 franchisees to open shops in UK cities.
Rachid, 53, says: ‘I have a property company and had no retail experience, so when I decided to open a shop, doing so through a franchise made sense.
‘The brand has a retail track record and offers help with choosing a location, shopfitting and on-going support. I felt that it was a lower-risk option than setting up on my own.’
Advising others considering a retail franchise, he adds: ‘ Success requires a combination of the right product, the right customers and the right area. You’ll find an experienced franchisor will know about these things.’
Harvey Roberts, director of Gautier, says: ‘Franchisees do not need retail experience, but you must be service-oriented, sociable, and share the company’s values.’
Gautier helps franchisees to find the right location and shares some of the costs of fit-out, displays and stock. The maximum investment is £ 250,000, but loan opportunities mean you can start with liquid capital of around £100,000.
Mr Arkwright’s Tool Emporium, a traditional store offering household, DIY, baking, building and garden products, is looking for its first franchisees.
Michael Ziff, executive chairman of Mr Arkwright’s, says: ‘Franchisees can either manage the shop themselves or employ a manager, and they are able to go multi-site from day one. And although you don’t need retail experience, an interest in DIY does helps.’
Franchisees get help with finding premises and access to an established supply chain where 100pc of wholesale discounts are passed back to them.
The franchise fee is £25,000, plus variable associated opening costs.
Subject to acceptance, you might get funding for shopfitting costs and the franchise fee through a government loan, and most applicants can get help funding stock. This leaves you to find £20,000, plus working capital, yourself.
Gautier, 01727 875114; Mr Arkwright’s, 020 7034 7552.