It's trendy to shop (Daily Mail franchise story)

It's trendy to shop

Daily Mail

By: Linda Whitney

OPENING a shop is not the crazy idea you might think.

Shopping habits have changed, and retail franchises catering to new trends are thriving.

Some sectors of the retail business, such as fast food, niche products and buy-and-sell franchises, are expanding.

At buy-and-sell store Cash Generator, sales during the past year are up 5.6per cent, buying of pre-owned items from the public has increased by 18.5per cent, cheque cashing has improved by 11.1per cent and pawnbroking has increased by 83.3 per cent.

It is looking for franchisees to open another 20 stores this year. Investment starts at £70,000. Julian Urry of Cash Generator says: 'To stand out among others applying for the franchise you need energy, good communication skills, an understanding of successful staff-management techniques, and be self- motivated with team building experience.'

You don't need experience in retail, but as with all franchises, you must follow the franchisor's tried-and-tested system.

The franchisor's experience is one of the benefits of getting into retail with a franchise. You also start with a name that shoppers know. Dream Doors is known for fitting new doors and worktops to existing kitchens, and needs more franchisees. The £20,000 investment includes training, a showroom and help recruiting fitters, so you need no experience in the trade.

Franchisees can get access to better sites than individual startups.

Landlords will often offer leases only to companies with established trading records, which an established franchisor can provide.

Robin Stenhouse of sandwich shop franchise Baguette Express, where investment is £15,000 to £20,000, says: 'The franchise negotiates favourable rental contracts from landlords, so they are likely to be concluded on reasonable terms.'

You also benefit from better wholesale prices because franchisors can bulk buy, so franchisees benefit from the discounts. Franchisors also vet your suppliers to ensure you're getting the right quality of goods and shopfittings..

Mr Stenhouse says: 'One nominated shopfitter carries out all the new outlet supply and performs an ongoing facilities management role.

So if you have a broken piece of equipment or need to replace furniture, you know who to contact.'

If you are a frog fan, The Frog Shop is a new franchise that is looking for pilot franchisees. The first shop opened in Llandudno and sells items such as mugs, sweatshirts, soaps, chocolates, collectables and trinkets, all with a frog theme.

'We source all the goods on your behalf and provide all the shopfittings, including giant frogs for the windows,' says franchisor Lyn Smith, who prefers franchisees to have previous retail experience.

Investment varies according to location. Retail does not always mean opening a shop. Franchisees with Shoes Glorious Shoes sell shoes and bags at parties in homes and at charity events.

'All the items come from Spain or Italy, so customers get something different at High Street prices,' says franchisor Maria Darling.

It can be run as a flexible business around a family and investment starts at £4,800, which includes £3,000 worth of stock.

Cash Generator 01204 574 444, Baguette Express 0845 070 4360, Dream Doors 02392 604630, The Frog Shop 0845 130 6475, Shoes Glorious Shoes 01202 659595.

CHOOSE YOUR MARKET

DAVE ELWOOD, 44, opened his first Cash Generator franchise in 1998 in Barry, Vale of Glamorgan, and plans to open his sixth outlet in April, in Bristol.

'If you want to get into retail, choose a niche market,' says Dave, a former teacher.

'I chose Cash Generator because in a competitive retail market, it helps to be offering customers something different. I also liked the fact that it offered a variety of income streams'.

That is paying off, he says, because the stores are selling fewer graded goods (those with minor faults that have been sent back by consumers, and are repaired and resold at a discount) but more secondhand goods, which are more profitable.

He advises: 'Going into retail with a franchise is better than going it alone, because you have an established business model and the support of the franchisor.'