The UK’s retail scene is always changing. One Stop has caught the eye of many who want to start their own business. Since 1979, it has grown to over 950 locations, offering a wide range of products every day of the week.
In 2014, One Stop started its franchise model. This lets people own and run their own One Stop store. This guide will cover the costs of starting a One Stop franchise in the UK. We’ll look at the initial investment, ongoing fees, training, and support, and the chances for growth for franchisees. By the end, you’ll know what it takes to be a successful One Stop franchisee.
What is a One Stop Franchise?
One Stop is a part of Tesco, the top supermarket chain in the UK. It has grown by offering a successful franchise to independent retailers. With over 10,600 employees, it gives store owners the perks of a well-known brand and support.
Overview of One Stop Stores
One Stop stores are between 1,000 to 3,000 square feet big. They sell food, drinks, groceries, and general merchandise. This makes shopping easy for local people, offering a wide range of products in one place.
One Stop Brand and Business Model
The One Stop franchise lets independent retailers run their own shops. They use the One Stop brand’s strength and support. This way, franchisees get to use the brand’s success while still controlling their stores.
This mix of a strong brand, support, and local flexibility makes the One Stop franchise appealing. It’s great for entrepreneurs and independent retailers wanting to grow in the convenience store market.
One Stop Franchise Cost in the UK
Investing in a One Stop franchise in the UK is a great chance for those wanting to start their own business or for retailers looking to expand. The cost to start a One Stop store is set to be competitive and easy to get into the convenience retail market.
The start-up cost for a One Stop franchise is £92 per week for those already in retail. This fee includes the initial setup costs, branding, and ongoing support from the company.
There’s no need for a minimum personal investment to become a One Stop franchisee. But, you’ll need a good credit history to get the best funding deals. One Stop helps its franchisees a lot, offering up to £50,000 to refit an existing store with their brand.
The One Stop franchise offers a full package that lets franchisees focus on growing their business. They don’t have to worry about the hard parts of starting a new store. This makes One Stop a good choice for those wanting a simple and affordable way into convenience retail.
Knowing the typical one stop franchise cost and the support available helps potential franchisees make a well-informed choice. This way, they can see if a One Stop franchise is right for them in the UK.
Initial Investment for a One Stop Franchise
Starting a One Stop franchise needs a big upfront investment. But, the rewards can be huge. The key part is the £10,000 franchise fee. This fee lets franchisees use the One Stop brand and get full business support.
Franchise Fee and Initial Costs
The £10,000 franchise fee is just the beginning. You also need to think about the costs of getting a good retail space. This should be at least 1,000 square feet and can grow as your business does. Also, the place must have an alcohol licence or be able to get one. This is key for serving the local community’s varied needs.
Required Retail Space and Location Criteria
- Minimum retail space of 1,000 square feet
- Ability to expand the retail space as the business grows
- Active alcohol licence or the ability to obtain one
- Situated in a densely populated area or village/suburb with a minimum of 3,000 residents
Choosing the right location for a One Stop franchise is very important. It must be in a spot that meets the local community’s needs. With these strict rules, franchisees know their investment will have a strong customer base and a successful business model.
Ongoing Costs of Owning a One Stop Franchise
Buying a One Stop franchise means more than just the initial cost. You also need to think about ongoing expenses. These costs are key to figuring out how profitable your franchise can be.
Royalty Fees and Marketing Funds
One Stop franchisees pay a 5% royalty fee on their sales. This money goes towards running the brand, support, and marketing. They also put some sales into the One Stop marketing fund. This fund helps promote the brand and bring customers to stores.
Breakdown of Typical Investment Required
Starting a One Stop franchise costs about £92 a week. This covers royalty fees, marketing fund contributions, and other expenses like rent and staff. It’s a big part of the total cost.
Potential Return on Investment
Even with ongoing costs, One Stop franchisees can make good profits. They often see margins of 18% to 25%. This is thanks to the brand’s strong market position and the support from the franchisor. Last year, stores made an average of £1 million a week and saw a 6% increase in sales. This shows the franchise’s potential for a good return on investment.
Training and Support Provided by One Stop
If you’re thinking about joining One Stop as a franchisee, you’ll get a lot of training and support. The first 13 weeks of training will cover everything you need to know to run a successful One Stop franchise. You’ll be ready to start right away.
Initial and Ongoing Training Programmes
The training begins with a detailed 13-week course. It includes learning about EPoS systems, back-office tasks, sales strategies, and how to serve customers. You’ll learn through classroom sessions, practical exercises, and mentoring from experienced franchisees.
But the training doesn’t end after 13 weeks. One Stop offers ongoing support to help you keep improving and growing your business. You’ll get regular updates, workshops, and access to online resources and support materials.
Dedicated Business Development Support
One Stop also gives each franchisee a dedicated Business Development Manager. These experts visit your store every four weeks to offer direct support and advice. They help you make your operations better, increase sales, and boost profits.
Your Business Development Manager will work with you to create strategies for growing your one stop franchise. They use their knowledge of the local market and the One Stop model to help you. They offer insights, share best practices, and help you overcome any challenges. This ensures you have the support you need to succeed.
Territory Rights and Exclusivity
One Stop franchises are not yet in some UK areas like AB, BT, DD, GY, HS, IM, IV, JE, KW, PH, TR, WC, and ZE. But, the brand wants to grow its one stop franchise territory across the UK. They’re focusing on busy areas and small towns.
The one stop franchise exclusivity means each franchisee gets a special area. They have the right to run their One Stop store there alone. This protects their investment and lets them grow without worrying about competition from other One Stop stores.
One Stop is growing carefully, picking new partners and places to make sure they succeed in the long run. They limit the number of franchises in an area. This helps each franchisee do well and enjoy the brand’s strong customer support.
| UK Postcode Areas Not Currently Offering One Stop Franchises |
|---|
| AB, BT, DD, GY, HS, IM, IV, JE, KW, PH, TR, WC, ZE |
Prospective franchisees should think about the one stop franchise territory and exclusivity. These things are key to the success and growth of their business. By understanding them, they can make smart choices and be ready for franchise ownership.
One Stop’s Franchise Agreement Terms
Looking into a one stop franchise agreement means understanding its main terms and conditions. These rules set out the duties and rights of both the franchisor and the franchisee. They make sure both sides work well together.
Contract Length and Renewal Terms
The first one stop franchise deal lasts for five years. This gives franchisees a solid base to grow their business and gain loyal customers. When the contract ends, they can renew it. This lets them keep using the one stop brand and get support from the franchisor.
Renewing the franchise is easy, making sure the business can keep going smoothly. This shows the franchisor’s commitment to its franchisees and their success.
| Contract Length | Renewal Options |
|---|---|
| 5 years | Renewable after initial term |
The franchisor offers a lot of support and money, up to £50,000 to fix up an existing store. This makes the one stop franchise a great choice for potential franchisees. It shows the franchisor’s commitment to its franchisees and the growth of the network.
How to Start One Stop Franchise in the UK?
Starting a One Stop franchise in the UK means going through a detailed application process. This ensures the brand’s high standards are met. If you already have a retail store or have found a good location, the first step is to contact One Stop. You need to give them details about the place you want to open.
The One Stop franchise application process includes several key steps:
- Initial Inquiry: Prospective franchisees should reach out to the One Stop franchise team to express their interest and get info about the brand’s needs and the application process.
- Site Assessment: One Stop will check the retail location you suggest to make sure it fits the brand’s criteria for size, easy access, and visibility, among other things.
- Financial Review: You must show you can afford the initial investment and ongoing costs of running a One Stop franchise.
- Interview and Due Diligence: You’ll go through an interview and more checks to see if you’re a good fit as a One Stop business partner.
- Approval and Contract: If you pass the application process, you’ll be given a franchise agreement. Then, you can start setting up your One Stop store.
The One Stop franchise requirements make sure new franchisees have the right skills, resources, and commitment. This helps them uphold the brand’s reputation and give customers a great experience. By going through the application process, you can start your journey to join the One Stop franchise network in the UK.
Financing Options for Franchise Investments
Getting the money to start a franchise can be tough for many new entrepreneurs. One Stop knows this and works with banks and lenders that focus on franchising. This makes getting the funds to start a One Stop franchise easier than starting on your own.
One Stop helps franchisees with the finance process, making it easier to get the money needed. There are many ways to finance your franchise, including:
- One Stop Franchise Financing: One Stop has links with lenders that specialise in franchise investments. They offer customised finance options for those wanting to start a One Stop franchise.
- Bank Loans and Overdrafts: High-street banks have special departments for franchise finance. They offer loans and overdrafts that are good for franchise investments.
- Alternative Lenders: Besides traditional banks, there are new lenders like peer-to-peer platforms and franchise finance specialists. They provide unique finance options for franchise investments.
- Personal Savings and Equity Release: Some franchisees use their savings or equity from homes to fund their franchise.
One Stop’s support helps franchisees with their finance, making it easier to get the money needed to start their business.
| Financing Option | Pros | Cons |
|---|---|---|
| One Stop Franchise Financing |
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| Bank Loans and Overdrafts |
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| Alternative Lenders |
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| Personal Savings and Equity Release |
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Working with One Stop and looking at the different finance options can help aspiring franchisees find the right way to fund their one stop franchise financing, franchise financing uk, and franchise investment loans dreams.
Growth Potential for One Stop Franchisees
The UK’s convenience market is set to grow strongly in the next few years. This offers a great chance for One Stop franchisees. The sector is expected to increase by 17.6% in value from 2018 to 2023. Online sales are also expected to jump by more than 50%.
This positive outlook, along with One Stop’s strong brand and support for franchisees, means big growth potential for franchisees.
Convenience Store Industry Forecast
The UK convenience store market has shown strength in recent times. It has adapted well to changes in what customers want and the market’s needs. Reports show the convenience store market’s value will hit £47.2 billion by 2023, up from £40.1 billion in 2018.
Trends in the UK Convenience Market
- Increasing demand for healthier and more sustainable product offerings
- Growing popularity of click-and-collect and online grocery services
- Customers seeking convenient, low-cost and time-saving shopping experiences
- Evolving store formats to cater to diverse consumer needs
These trends, along with One Stop’s strong brand and support for franchisees, make a great case for growth in the UK convenience store market.
| Metric | 2018 | 2023 (Forecast) | Growth |
|---|---|---|---|
| UK Convenience Market Value | £40.1 billion | £47.2 billion | 17.6% |
| Online Grocery Sales Value | £12.3 billion | £18.5 billion | 50.4% |
The good trends and forecasts, along with One Stop’s strong brand and support, mean franchisees have a great chance to grow in the UK convenience store market.
Conclusion
The One Stop franchise is a great chance for entrepreneurs and investors wanting to join the UK’s convenience store market. It offers full support, competitive prices, and special deals. With more stores opening, One Stop is set to grow even more.
This guide highlights the one stop franchise‘s strong business plan. It covers the costs to start and run a one stop franchise. The guide also talks about the training and support for franchisees. Plus, it shows the big growth potential in this convenience store network.
To sum up, the one stop franchise is a strong choice for those eyeing the UK’s convenience store market. It has a solid base, offers great support, and looks promising for the future. It’s a great option for those wanting to start or invest in a business.
FAQs
What is the typical start-up cost for a One Stop franchise?
Starting a One Stop franchise costs about £92 a week for those who already run a shop. You don’t need to invest personally, but you must have a good credit score for the best funding options. One Stop will put up to £50,000 into making an existing store fit the One Stop brand.
What is included in the initial investment for a One Stop franchise?
Starting a One Stop franchise costs a £10,000 franchise fee. You’ll need a retail space of at least 1,000 sq ft, ready for expansion if needed. The shop must have an alcohol licence or be able to get one. It should be in a busy area or a village with at least 3,000 people.
What are the ongoing costs for a One Stop franchise?
Ongoing costs include a 5% royalty on sales and marketing fund contributions. The total weekly cost is around £92.
What type of training and support does One Stop provide to franchisees?
New franchisees get a 13-week training programme. They also get ongoing support. This includes a Launch Support Manager for the store’s start, training on the EPoS system and back-office tasks. A Business Development Manager visits at least once every four weeks to boost sales and margins.
Are One Stop franchises available throughout the UK?
One Stop franchises aren’t in some UK areas like AB, BT, DD, GY, HS, IM, IV, JE, KW, PH, TR, WC, and ZE. But, the brand wants to grow its network across the UK, especially in busy areas and villages.
What is the initial franchise contract length and renewal terms?
The first One Stop franchise contract lasts five years. You can renew after that.
What are the requirements to become a One Stop franchisee?
To be a One Stop franchisee, you must either own a shop or find a good location. Contact One Stop, share your site details, and go through their approval process.
What financing options are available for One Stop franchise investments?
One Stop helps with finance challenges by working with banks that support franchising. This makes getting the funds to start a One Stop franchise easier than starting a business alone.
Disclaimer:
The featured image used in this blog does not belong to “UK Entrepreneur Blog.” It has been sourced from One Stop.
Source: https://openaonestop.co.uk/