O2 Franchise: Is it a Franchise?

24/10/2018 08:00 | Start a business

o2 franchise

O2 is one of the most recognisable brands in the UK. It's the second-largest mobile network operator in the country after EE, with Vodafone in third place.

Even if you dont rely on O2 for our mobile or internet needs, then youll still know who the telecommunications giant is. You may have watched a concert at The O2 arena or seen O2s logo on the England Rugby Team kit in their role as official sponsors.

Now imagine being able to run your own O2 store. The great news for aspiring entrepreneurs that have this very dream is that there are over 200 franchisees already doing just that in the UK.

O2 franchise UK

O2 have an impressive 23 million mobile customers in the UK alone but where did it all begin?

O2 was established in 1985 as Cellnet. This was a 60/40 joint venture between Securicor and BT Group. In 1999, BT Group bought out Securicor's share and became known as BT Cellnet. In 2005, the company underwent a rebrand and O2 was born.

The Spanish telecommunications company Telefnica then bought O2 for £18 billion in 2006. However, it was agreed that Telefnica would retain the O2 brand and the company's UK headquarters in Slough.

O2 franchise for sale

The first O2 franchise shop was opened in 2005. While developing the O2 franchise business model, the company were able to use the 400 company-owned shops that existed at the time as a valuable blueprint for success. The franchise initiative was part of a programme to expand O2's UK store portfolio significantly.

The very first franchisee, Daniel Fountain, had been an O2 employee for five years and opened his store in Rotherham shopping centre. Opening an O2 franchise in his hometown was a dream come true for Daniel, and he was passionate about delivering fantastic customer service and great deals to the people of Rotherham.

Like many of the franchisees that came after him, Daniel has benefited from the strong O2 brand. Theres a very high level of competition among mobile operators on the high street so being able to become his own boss while enjoying the support and experience of a recognisable brand was vital.

And your ambitions dont have to end with owning and operating just one O2 franchise. There is scope for you to run several O2 stores as your experience and confidence build so you can create your own business empire. An independent survey carried out by O2 showed that 81% of O2 franchisees surveyed stated that they were satisfied with their financial performance and returns compared to expectations. This could mean that you become a multi-unit franchisee sooner than you think.

Unfortunately, if youre interested in becoming an O2 franchisee, then you may have to wait a while. There are currently no immediate plans to open any new franchise stores, but this could change at some point in the future. When an opportunity becomes available, you'll also be able to draw upon the strengths of the O2 brand, systems, services and products to create a first-class shopping experience for your customers.

Why franchising?

O2 was a very successful and reputable brand before they started franchising in 2005 so why did the company choose to go down this route?

For O2, franchising was the perfect way of combining the owner-operator strengths of the franchisee with the power of the brand, systems, services and products. It also allowed the store footprint to be increased quickly and cost-effectively so that more customers could have access to a local O2 shop.

This presence on high streets up and down the country allow O2 to communicate with its customers most effectively and engagingly by putting more knowledgeable staff at the front line of the customer experience. Customer loyalty is more fickle than ever, and the success stories in the UK market are those who can meet customers' needs better than anyone else.

O2 franchise package

When a franchisee joins the O2 brand, they are supported by a dedicated team which includes a Franchise Manager, Training Manager and Recruitment Manager. But before they even sign the franchise agreement, prospective franchisees are helped by specially trained existing franchisees to guide them through the business planning process. Once up and running, franchisees will receive all the help they need from the O2 marketing, product supply, retail operations and finance teams from around the UK.

Support is also available to find the right location for a new franchise store. However, O2 is keen to benefit from the local knowledge of each franchisee regarding where their potential store should be located. So if youd like to open a franchise in an area youre familiar with, O2 are happy to take your advice on locations that offer the best business opportunities.

The O2 franchise team can only help with so much though. Youll need to possess the right qualities to be considered as a franchisee. To be in with a shot, you must demonstrate that youre a team player, offer excellent customer service and have respect for the O2 brand and values.

O2 franchise cost

As there are currently no O2 franchise opportunities available for investment, accurate costs cannot be provided.

Previous franchises, however, have required a minimum investment of £40,000 and a total investment of between £100,000 and £250,000, depending on the size and location of the store.

In return for the franchise investment, youll benefit from being part of one of the largest mobile telecommunications retail portfolios in the UK. The strong brand presence will attract more customers than enable you to stand out from competitors on the high street.

Youll also get the chance to build value in your very own business by applying a tried and tested franchise system with a proven track record of success.

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