O2 is one of the biggest mobile network companies in the UK. But is it open to investments and can you take advantage of its proven business model? In this article, we ask whether there are any O2 franchise opportunities.
O2 makes up 26 percent of the mobile network operator market and, as a result, is the second largest in the industry after EE. The O2 brand is valued at a total of £5.79 billion, operates over 450 retail stores and employs more than 6,700 people. It also ranks highly for customer satisfaction and was recognised as the operator with the best network coverage by uSwitch earlier this year.
So, does O2 franchise? Let’s find out.
History of O2
O2 was established in 1985 as a joint venture between Securicor and BT Group. It was originally named Cellnet, but in 1999, BT Group bought out Securicor’s share and the business became known as BT Cellnet.
In 2005, the company rebranded and O2 was born. The newly named company decided to capitalise on its success by rapidly expanding its 400-strong store network.
The O2 stores were incredibly important to the O2 leadership team, who saw them as a way of facilitating communication between the company and its customers. They provided a physical space where people could meet knowledgeable staff, learn more about the business and even be persuaded to join O2 from another mobile network operator.
These days, customers have to be fickle if they want to take advantage of the best deals out there. So, the success stories in the UK belong to businesses that can meet customers’ needs better than anyone else.
In 2006, the Spanish telecommunications company, Telefónica, bought O2 for £18 billion. Today, O2 has 23 million customers in the UK alone, which is testament to the company’s dedication to network coverage and customer satisfaction.
>> Read more:
Does O2 franchise?
O2 has used the franchise model to expand in the past, but unfortunately, the business is not currently recruiting new franchisees. However, O2 may reveal franchise opportunities again in the future, giving you the chance to draw on the strengths of the successful and nationally recognised brand.
How to get involved with O2
When the O2 management team want to expand the business to new territories, there’s a chance they’ll use the franchise model. So, it’s worth keeping an eye on the brand if you’re considering different franchise options over the coming months or years. Here’s a bit more information about the O2 franchise:
The very first O2 franchise store was opened in Rotherham shopping centre by Daniel Fountain, who had been an employee of the mobile operator for five years. Daniel was thrilled to be able to open the store in his hometown and was enthusiastic about delivering fantastic customer service and value for money to the people who lived there.
The O2 brand offers franchisees support to help them survive on the British high street. There’s a lot of competition among mobile network operator stores, but O2 franchisees have the backing of the huge O2 brand, with its reputation and expertise.
The business is popular among entrepreneurs because it lets franchisees adapt their business to suit them. You could choose to launch and manage one O2 franchise unit or open multiple stores as you gain experience and confidence, allowing you to develop your very own business empire.
According to an independent survey, 81 percent of O2 franchisees are satisfied with their financial performance, considering their initial financial expectations. So, O2 is a good brand to keep in mind if you’re interested in joining a telecommunications franchise.
If you’re determined to join the O2 brand, you could also become an employee with the business. Following this step could give you the chance to be first in line to take on any franchise resales in the O2 network.
The mobile network sector in the UK
It’s an understatement to say the telecommunications sector is huge. It covers a multitude of different business types, including mobile network operators. Today, the industry generates more than £30 billion yearly in the UK.
This significant revenue is hardly surprising, given 79 percent of adults in the UK use a smartphone, as well as an average of 2.9GB worth of data per month.
The mobile network operator sector is largely made up of key, international brands like O2, so there’s great potential for budding business owners investing in one of them. Keep reading to find out how you can get a slice of the action.
>> Read more:
Similar franchise opportunities
BT Local Business
BT Local Business is a franchise opportunity that offers you the chance to set up your own independent business backed by BT – the oldest telecommunications business in the world. The network of businesses brings technology, expertise and BT services to local communities. It combines the local knowledge and understanding of franchisees with national resources supplied by BT itself.
- Becoming a BT Local Business franchisee: The perfect candidate to run their own BT business needs the necessary finances. BT is also looking for candidates who can showcase their ability to create and put business plans into practice, recruit their own staff and consistently offer a quality service.
- How much you need to invest: If you’re looking to start up your own BT Local Business branch, you will need to raise an initial investment of £120,000. Potential franchisees should expect to invest a total of £350k into the business. However, funding is available for up to 70 percent of the investment cost, and you’ll have the benefit of a strong, reputable company name behind you if you apply to banks for a loan. BT franchisees have access to the brand’s customer base in their area, meaning they will already have existing clients at their disposal. Commission is also uncapped – the more work franchisees carry out, the more they will earn.
- What you get for your investment: The training and support that BT Local Business franchisees receive will guarantee them every success. Franchisees will be updated on any development within the company and will have a team of BT specialists at their disposal. They’ll also enjoy access to sales campaigns and practice toolkits on how to generate more profit. Not only that, BT will work with its franchisees to assess where they will take their businesses in the future and ensure they have the resources to execute these plans.
Find out more
If you’re keen to join the telecommunications sector, why not browse our investment opportunities with IT, high-tech and online franchises? Alternatively, you can read up on the top five telecommunications franchises in the UK.
Alice Tuffery, Point Franchise ©