Hello entrepreneurs! A warm welcome back to this Springtime edition of Franchise Focus, fresh from the Tubz Vending team’s bookmarks bar. Every month we keep tabs on what’s hot in franchising, collecting the most interesting and helpful news, views, ideas and resources to keep you in the franchising loop.
This month, find out more about the latest trends in franchising, from a fresh focus on women in the niche, to a rise in community involvement amongst franchises, discover what it takes to build a franchise with strong foundations, plus get a lesson in SMS marketing.
Franchising Trends in 2016
Want to find out what the buzz is all about in franchising right now? The Brand Mark Franchising blog is bursting with the latest big ideas and trends in the industry, from the ever-growing involvement of women in the franchising community, to the rise of franchises taking their brand overseas, there’s a lot going on right now and a lot to keep up with. Brand Mark Franchising‘s blog will give you a helpful roundup in a nutshell of everything which you should be keeping an eye on and getting involved in.
How to Build a Franchise with Strong Foundations
Workers on construction site
Not every individual involved in franchising is a franchisee, many in the sector are franchisers, or entrepreneurs working to build their business into a local, national or even international name. So how can these aspiring franchisers grow a franchise which has the strong foundations required to give their enterprise longevity and security?
This is the question which this insightful blog from Franchize Consultants sets outs to answer. From developing a great franchise structure, to keeping the philosophy of designing a “win-win” system in mind, this post is an interesting read.
Should You Market via Text?
Female Hands Texting Phone Concept
Marketing texts can feel invasive, but from the right kind of business they can be useful, giving you access to exclusive deals that you’ll genuinely want to take advantage of. So how can a business guage whether or not marketing via text will work for them? How can they pitch their marketing messages correctly? And how can they build campaigns which generate return on investment?
If your franchise is looking for fresh ways to reach new and old customers, SMS marketing is an option you might want to look into – but it isn’t for everyone. In this expert blog, published on Franchise Gator, SMS marketing specialist Paul Crane dishes the dirt and explains precisely what it takes to make it work. Interesting stuff.
Would you consider using SMS to market your franchise? Which franchising trends are you most interested in in 2016? Have your say and find out more about our franchising opportunities by dropping the Tubz Vending team an email at: info@tubzbrands.co.uk
George Sielicki is a former tour operator who made a late career change to franchising, in order to provide himself with a retirement income.
Tubz: What kind of business were you looking for?
George: Something I could run myself, be my own boss, choose my own hours. Obviously, job satisfaction, to be happy doing what I was going to do.
T: What were you doing before?
G: I was working for a tour operator behind a computer. Monday-Friday, 9-5. It was okay. When I started it was three private owners, three directors who set it up. A couple of years later after I joined they decided to sell out, take the money and run for it. They sold out to the banks. Then everything went downhill. I got fed up.
T: Were you left without a job when that finished?
G: Yes. Well I was forced to leave because I was so fed up. A lot of us were doing quite important work and there were constant interruptions and extra tasks we had to do. That was the final straw.
T: What other options did you look at before you chose Tubz?
G: Quite a few. One franchise where you would be employed by a number of estate agents to put up for sale signs, and look after the signs. Then there was an internet estate agency. There were a couple of other things that I looked at but I was looking for something fairly straight forward, nothing complicated, without too big an investment.
T: When you decided to start up with Tubz, what challenges were you expecting?
G: Initially it looked fairly straight-forward. Going round pubs or social clubs, topping the machine up, emptying it, giving it a bit of a clean, making sure everything’s okay then going away. That was it, it sounded straight-forward. You go in, take the money out, top it up, clean it, go away. You do that about eight or ten times a day. When the reality set in I realised there was more to it than that.
T: How long did it take to get up and running?
G: About six months. Site finding is not that easy these days, but they [Tubz] found some sites and it was a gradual build up. Once I got to 30-40, I was getting into the swing of things. I was still working part time for the tour operator. Once I got to 35-50 machines that’s when I packed up with the tour operator.
T: How easy was it to find suitable sites, or did Tubz do that for you?
G: I tried to find my own sites but that’s not that easy because at the same time you’re looking after your business. You pop into a potential site, but the person you want to speak to may not be there. Because of this I initially left everything up to Tubz.
T: What were your goals when you first started out?
G: To make it into a profitable business. Not work too many hours a week, take it steady, but have a reasonable return. The job is an enjoyable job, you get out and about, you meet all sorts of people.
Plus the fact that Tubz has a contract with Starlight, the charity, which does help. I gain everything; I gain supporting a charity – if it’s not Starlight then some of the pubs or social clubs or hotels, they’ve got their own charities to support. So, there are good causes, I meet all sorts of people and the hours are my own.
T: You said after six months you had 35-40 machines, how many do you have now?
G: I did have about 120 but I’ve lost a few sites. I’d say, at the minute, I’ve got about 110 machines in sites.
T: Would you say that is enough to bring in a comfortable income?
G: I’d like another 15 or 20. Some of the ones I’ve got are really good, most are good. At the minute I’ve got about 15 spare machines going so could do with finding a few more sites.
T: What kind of income do you bring in?
G: I make a reasonable living. I pay for the bills, I pay the expenses. I won’t be a millionaire, but it’s reasonable.
T: So you aim to get a few more machines out there?
G: I’d like to get another 15 machines out.
T: How much of your week would that take up if you had 120 or so machines?
G: I used to go round every two weeks but I find with some sites it’s enough to go round every three to four weeks.
My theory is that if somebody has got their favourite sweets and they sell out, but they’ve got a craving for a bit of sugar, then they’ll try something else. Seems to be working on the whole. When I went round once a fortnight, an average machine would sell about 30 products. If I go round every three to four weeks, it’s more like 60 or 70. Sometimes the whole machine is emptied.
I’m finding that I don’t need to go out as often but I’m trying to make sure that most of the sites I do go to, if they’re running short, give me a call. It saves me time and expense, and allows me a little time off. The nice thing about the job is I can work whichever days I like.
T: So you enjoy the flexibility it has given you?
G: Yes. Overall, it’s a nice, pleasant job. There’s a lot of job satisfaction. You meet a lot of people, you’re your own boss, working for good causes, which does help.
T: What are your business plans for the future?
G: I’m getting on a bit, almost 65. So I’m looking forward to taking it a bit easier. I’ve got a colleague across the road and I’m hoping that he might help me out a bit. So if I do take the time off, he’s there to help out. If I go away for a week, he can take calls and go out in case of emergencies.
T: So it’s a retirement income?
G: Yes. I think, these days, with all the bills coming in, you do need to work that extra bit.
Read about another retiree who has chosen franchising to provide an income here.
Tubz Australia is an expansion of the UK company Tubz Brands, which offers vending machine franchises. These business opportunities have recently been made available in Australia.
Tubz Australia Pty Ltd is a new business offering Tubz Brands vending machines throughout Australia for the first time.
Once the franchise is purchased there are no ongoing payments to the franchisor. The business is essentially purchased and the only costs are restocking and repairing machines. Operators have access to support from the franchisor on an ongoing basis.
Tubz Brands vending machines are coin operated and mechanical rather than electrical, so require no power to run. They are installed free of charge into sites throughout Australia and, there are no contracts and no liability.
The vending machines stock savoury snacks, toys and confectionery, including brands such as Rolo, Skittles and Pringles.
Franchisees can choose from ‘business bundles’ which currently start at $24900 including GST. More information can be found at http://www.tubzaustralia.com/.
Tubz Brands has been operating since 1990.
John at one of his vending sites
Tubz: Before you invested in Tubz what kind of opportunity were you looking for?
John Welsh: Well, I wasn’t particularly looking to invest in anything at the time. I just sort of fell into it. I used to fix fruit machines and I stumbled across them while I was doing that.
T: So you weren’t really looking at franchises or other opportunities?
JW: No, I wasn’t. I basically started doing it as a bit of a sideline and it grew.
T: How many machines did you start off with?
JW: I only started off with one, funnily enough. I must have been one of the first people in the UK, it was about 10 years ago. So unlike a lot of people I didn’t actually buy a franchise package off Tubz, I just bought one machine.
T: How many machines do you think you need to be able to go full-time?
JW: A hundred, I would say.
T: When did you go full time operating vending machines?
JW: It’s probably about 2 years ago actually as I had a full time job and not many machines until then. But since then we’ve really ramped it to have machines in lots of locations.
T: What area do you cover?
JW: The whole of the North West, pretty much. We’re actually based in Liverpool but we cover Chester, North Wales, Wigan, St Helen’s, part of Manchester. Quite a large area.
T: Are you still expanding or are you quite happy as you are?
JW: No, we’re still expanding. We just added another 20 machines yesterday.
T: Is it a joint operation?
JW: Yes, there’s two of us. He was someone who was selling up and I offered to buy him out, then we had a bit of a chat and in the end we decided, rather than do that, we’d come together.
He’s got money behind him, I’ve got time. So it works quite well. Hence why we’re growing.
T: As you grow do you think you’ll be able to handle the business with just the two of you?
JW: No, we’ll have to take staff on. We have had staff in the past but it’s just the two of us at the minute. We’ll need some help which will free up some more time for me. I’m pretty good at finding sites, you see. I find probably 80% of the sites myself.
T: Are you happy with your career move from fixing machines to owning them?
JW: Yes, definitely. And the team at Tubz are really helpful as well. I wouldn’t hesitate to recommend them and look forward to a prosperous future working with them.
Find out more about Tubz franchisees and their stories and experiences in our Testimonials.
Tim out and about at one of his sites
Tubz: Before you decided to invest in a Tubz bundle, what kind of opportunity were you looking for and why?
Tim Beckley: Basically I wanted to be self-employed. So I had a look on the internet, I searched a few opportunities and Tubz was one of them. There was another option I tried first, but they didn’t deliver what they promised where Tubz did. So I lost a bit of money on them. Tubz did exactly what they said they’d do. I’m happy I’ve gone with them. (more…)
