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1 Partner Prospectus 2014

2 Contents Why fonehouse? Why fonehouse? How to get started Why franchise? B2B Franchise What your shop will look like It could be you: success stories What you need to know An introduction from Fonehouse MD, Clive Bayley: Welcome to fonehouse You re interested in opening a franchise, so why go with Fonehouse? Proven successful business model. A nationally recognisable brand. Over 120,000 customers + growing. Buying power + highly competitive commercials. Be the go-to mobile retailer in your local community. Cost of entry from less tthan 10,000. Quick and high return on investment. Profit from a number of categories - including accessories, repairs, airtime and B2B What s new in 2014? Support every step of the way: How Fonehouse will get you set up I founded Fonehouse in 1994 on my return from the US, where I had been refining my knowledge of retail and distribution, supplying most major US retailers such as Walmart, Macy s, Target, JC Penny and my own store in Bloomingdales. Fonehouse began franchising in The Franchise Programme took the next step in its evolution after appearing on Channel 4 television show Mary Portas: Secret Shopper. Mary redesigned, our store look and we opened up many new franchisees as a result of the programme Thanks Mary! In 2014 we are going from strength to strength Clive Bayley Chairman & CEO Now in 2014, with 50 stores across the country, we are going from strength to strength, having built up an elite team of a team of experienced professionals with years of experience in retail, mobile and telecommunications, as well as sales and distribution. The management team is not in place to sell you a franchise business. We are fluent and experienced in the operation and execution of mobile phone retail. Through these strengths, we aim to grow the Fonehouse brand. Please read on to learn more about the benefits and processes behind our franchise programme. If it s right for you, I look forward to working together and sharing in each other s success. Help every step of the way Best-in-class training and support. Marketing support and knowledge through proactive, localised marketing account management, monthly POS refresh, digital content and more. Regular customer feedback and experience testing. website presence to drive footfall. Clive Bayley Managing Director 3

3 Why franchise? How to get started Get set up for as little as 10k. Have 10k of working capital. Great rewards - What can you expect Earn over 5000 per month once you have got the business through the first 12 months. An ongoing revenue income which you receive every month on top of monthly profits which will build up your long term profits. Become a master franchisee with multiple outlets and create a really big business which has an exit value. Incentives Fonehouse will run incentive schemes from time to time for the most successful or promising franchisees including ski trips, holidays and other VIP events. Turnkey We hand you a fitted store ready to go. You pay for the shop fit unit over 6-12 months period. We retain the lease, you operate the shop and build your own business. Operating costs are your responsibility. Working Capital required. You could be running and operating your very own store within 3 months What you will need: Be your own boss: own a mobile phone retail outlet - or portfolio of stores - with support. Benefit from multiple revenue streams. - Mobile airtime - Insurance - Accessories - Repairs - Insurance - Business to business Get payback from your investment within two years. Work with the biggest brands in a recession-proof industry. Be the go-to phone store in your local community. In just three months you could be trading. The recipe for success: have you got what it takes? Are you an ideas-led born leader looking to set up your own business? Can you sell? If so, we want to hear from you. You: Will have sales experience (preferably retail). Will be approachable and confident. Will have people management/coaching skills/experience. Will be highly self-motivated. Will be entrepreneurial. A business plan that Fonehouse agree to (we can help with this). Liquid funds that support the business plan and the running of the business for at least four months. Experience of running a business or able to demonstrate the right people will support you. Experience of the mobile industry or the ability to employ someone from the industry. To acknowledge and understand all of the revenue streams available. 4 5

4 B2B Franchise Branded Partner Exclusive Territory. Access to market leading commercials with unrivalled Pre & Post-Sales. Support. Opportunity to diversify & future proof your business with our wide range of complete communications solutions. Branded Airtime for both fixed and mobile solutions on a single invoice. Complete customer proposition control with the ability to provide bespoke solutions in a moment. Up to 50 qualified leads generated in your territory each month. What Will This Mean To My Business? Put simply it will give you the opportunity to increase your profile as well as your profits. Adding 4 additional revenue generators will also ensure future security. What Does It Cost? No upfront outlay to get the store ready. We will find and fit the store to the Business Centre Standard Specification We have a proven track record of targeting the right geographical areas based on population and competition. Fonehouse will supply you with an Interest Free Business Expansion Loan which is repayable over the first 6 months of trading. High Street Business Centre 48% B2B Airtime Where Is Your Business Now? Do You Want To Grow In 2014? Need To Add Additional Revenue Streams? Struggling To Win Larger Opportunities? Want To Diversify? A High Street Business Centre will give you the opportunity to address all of the above. High Street Business Centre Margin by category 21% 11% 9% Consumer Airtime Accessories Repairs & Service What Is A High Street Business Centre? Retail Access To Market Leading Consumer Commercials. Availability Of Latest Handsets. No Credit Check fonehouse Branded Consumer Network. Full Level 1 & 2 Handset Repairs In Store. Accessories Sales. Handset Trade In Program. Dedicated Business Bay. 7% 4% Trade in handsets Sim Free & PAYG Never Worked In Retail Before? Don t worry with the intensive induction program you will be fully up to speed ready for the opening. Remember with our dedicated team you will be supported every step of the way. Next steps Arrange a meeting with one of our dedicated Franchise Development Managers. 6 7

5 What your shop will look like? Fonehouse s strong relationships with the manufacturers give me a huge advantage over my competitors: whether it s getting stock quicker than competitors, receiving direct marketing support or just getting better commercials. Kamran Nadim Fonehouse Kilburn In this game, it s all about having the right stock at the right time. Being part of Fonehouse allows me to produce handsets that customers have seen on TV or on the side of a bus that morning: you just can t get that if you operate as an individual. 8 Having previously worked with other network stores, fonehouse provides me with the all the support needed but allow me to use my expertise and knowledge of the local area to make the difference. Sohail Riaz Fonehouse Darlington I am in a very busy shopping centre; thanks to Fonehouse, my store is professional, up to date and credible. Once the customer is through the door it s down to me and my team, but the power of Fonehouse marketing is something to be admired. Michael Donnelly Fonehouse Sunderland H Qureshi Fonehouse Waltham Cross 9

6 It could be you: success stories I average 150 contracts a month and make 100 gross profit on each one Katan Fonehouse Sheldon After opening his Sheldon store in November 2011, Katan quickly bedded in and is now bringing in a gross profit of around 12,500 every month. He has already opened 2 further stores in Cotterige and Selly Oak. what you need to know Get set up for as little as 10,000 We stock all major UK networks I average about 150 contracts a month and make about 100 gross profit on each one, says Katan. Getting started is difficult but Fonehouse are there to help and the hard work you put in can certainly reap huge rewards. His strategy is simple and one the Fonehouse actively promotes local community integration through targeted local marketing campaigns. He has used the in-house marketing support to great effect to help him with local mail drops, leafleting and other activities. Katan adds: Building a relationship has been crucial for me. There is a Carphone Warehouse and other competitors in the immediate vicinity of all my stores, but customers will choose me, because my store is already at the heart of the community. fonehouse mobile We work with global manufacturers Gamma Business Communications There is a real community feel with other Fonehouse franchises and the commercials are really strong Micky Fonehouse Sunderland Micky Donnelly joined the Fonehouse Franchise Programme back in May His store in The Bridges shopping centre in Sunderland is surrounded by Carphone Warehouse, Phones 4U and all of the network stores, yet he is making a monthly profit of around 18,000. With around 140 connections a month, business is booming - and accessories are a big part of driving revenue: 1,000 of the monthly profit comes directly from accessory sales something Fonehouse supports through supplying official branded accessories. Sony Z1 Compact Starting a Fonehouse franchise was definitely worth it, says Micky. There is a real community feel with other franchisees and the commercials are really strong. Plus Fonehouse allow me to be flexible to meet the needs of my customers so that I never lose one that s been crucial in helping me fend off competition from the likes of Carphone and Phones 4U

7 what s new in 2014? Support every step of the way: how fonehouse will get you set up Get the right tool kit: we now offer more revenue streams than ever. On top of airtime sales you can maximise profits by selling other services, devices, accessories and B2B - which means you can target businesses in your area. Get in touch to find out more. Lowered cost of entry: set up for as little as 10,000. Turnkey option allows Fonehouse to take the lease and fit the store on your behalf. Interested in setting up a Fonehouse franchise? What now? 01 Initial 1:1 meeting with Fonehouse Agree specification and shop fit design 05 Renewed focus on smaller towns and local communities: we re looking for franchisees in secondary towns. Click and Collect service for online customers. Commission when they collect from your store. Ability to secure a master franchise with your own multisite operation in an exclusive territory. (subject to terms and conditions) 02 Complete application forms, network checks and commitment to proceed Complete legal's and pay fees 06 Fonehouse Mobile Network: A market changing proposition to ensure everyone can have contract handset. - No Credit Check fonehouse mobile has launched and we have seen great success to date. - Offering fantastic value to customers with generous allowances. - Customers can build up their rating with fonehouse to allow them to upgrade to the latest handsets after 6 months. 03 Business plan submitted and reviewed with advice and feedback Training and pre-launch marketing campaign 07 Multiple revenue streams 04 Identify location and visit site Open new store 08 setup devices services sim only pay as you go sim free What are you waiting for? To arrange a meeting, or ask any questions, call us NOW! accessories second hand devices Tel: B2B no credit check contracts Feel free to visit any of our stores all the numbers and addresses are available on our website insurance repairs On request: Sample profit and loss sheet FAQs 12 13

8 blog fonehouse fonehouse.co.uk/blog

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