O2 Franchise: Is it a Franchise?

Originally posted on 24/10/2018. Updated on 22/05/2019.

O2 comprises 26 percent of the mobile network operator market and, as a result, is ranked as the second largest operator 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.

It’s no wonder, then, that many people are interested in running an O2 store. In fact, there are over 200 franchisees doing just that in the UK right now. Let’s take a closer look at the O2 brand.

Read more:

• Franchise Costs and Fees Explained
• Investing Money with a Franchise in the UK
• How Investing in a Franchise is Worth it
   

History of the Brand

O2 was established in 1985 as a joint venture between Securicor and BT Group. This 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 underwent a rebrand and O2 was born, but, in 2006, the Spanish telecommunications company, Telefónica, bought O2 for £18 billion.

Today, O2 have 23 million customers in the UK alone, which is testament to the company’s dedication to network coverage and customer satisfaction.

O2 Franchise UK

O2 decided to capitalise on its success by rapidly expanding its store network in 2005. In doing so, the business was able to build upon its existing network of 400 company-owned stores to create its business model. The stores were a crucial element of the business for the O2 leadership team, who valued them as a way of facilitating communication between the company and its customers. The stores provided a physical space on the high street where customers could meet with knowledgeable staff, learn more about the business or even be persuaded to O2 from another mobile network operator. Customers have to be fickler than ever if they want to take advantage of the best deals out there, so the success stories in the UK belong to those businesses that can meet customers’ needs better than anyone else.

The very first O2 franchise store was opened in Rotherham shopping centre by Daniel Fountain, who had been an O2 employee for five years beforehand. Fountain 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 that is vital when it comes to surviving on the British high street. There is a lot of competition among mobile network operator stores, so entrepreneurs that have the backing of the O2 brand, with its reputation and expertise, are set for success. This is why many entrepreneurs have leapt at the chance to start an O2 franchise.

The business is also popular among prospective businessowners because it enables franchisees to adapt their business venture 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. An independent survey carried out by O2 showed that 81 percent of O2 franchisees surveyed stated that they were satisfied with their financial performance, considering their initial financial expectations. Therefore, you could become a multi-unit franchisee sooner than you anticipate.

O2 Franchise For Sale

Unfortunately, although O2’s franchise system has seen success in the past, the business is not currently recruiting new franchisees. However, this could change at any point and, if the opportunity to launch franchise stores becomes available in the future, you will be able to draw upon the strengths of the O2 brand, systems, services and products to create a first-class shopping experience for customers.

O2 Franchise Cost

As there are currently no O2 franchise opportunities available, it is difficult to say exactly how much starting up a franchise would cost. However, previous franchise opportunities with O2 have required a minimum investment of £40,000 and a total investment of between £100,000 and £250,000 – but these costs would depend on the size and location of the store. In return for your investment, you would benefit from being part of one of the most recognisable mobile network operator businesses in the UK. The reputation of the brand would enable you to stand out from lesser-known competitors on the high street and attract more customers. You would also get the chance to increase your profitability further by applying the tried and tested strategies that have already been successfully implemented throughout O2’s franchise network.

Opening an O2 Franchise Store

If you are interested in opening your own O2 store, you should first make sure you have the right qualities to represent the brand. To be in with a shot of being accepted as a franchisee, you must be able to demonstrate an ability to provide excellent customer service, work well within a team and are passionate about the O2 brand and its values.

If you make the cut, you’ll be given extensive support from O2. You will be put in contact with a dedicated franchise team, including a franchise manager, training manager and recruitment manager. What’s more, you will also have the chance to learn from existing franchisees, who are enlisted to provide guidance throughout the business planning process. Once your franchise unit is up and running, you will receive additional help from the O2 marketing, product supplies, retail operations and finance teams based around the UK.

You will also be supported in finding the right location for your new franchise store. However, O2 is keen to benefit from the local knowledge of each franchisee, so if you’d like to open a franchise in an area that you’re familiar with, O2 are happy to take your advice on sites that offer great business potential. Therefore, it’s worth keeping an eye on the O2 website to find out about future franchising opportunities.

Alice Tuffery, Point Franchise ©