Fonehouse is showing positive signs of growth with the announcement that it intends to increase the number of its retail stores in the next twelve months, from fifty to over eighty. The brand is reigniting its plans for expansion by adding thirty retail outlets by the end of the forthcoming year, despite having previously failed in similar attempts at expansion.
The retailer brand currently has around fifty stores operating via the franchise model, which is the same number as it had back in April this year, when it planned to have a total of one hundred stores open within a twelve-month period. In fact, it originally aimed to have up to 170 stores opened by December 2012.
The Managing Director of Fonehouse, Clive Bayley, explained that he had seen an increase in interest from customers who were looking to join the franchise network, as well as a number of existing franchisees who were keen to take on additional stores.
In September, Fonehouse did open a number of new stores, including ones in Hawick in Scotland and Hanley in Stoke-on-Trent. Another six are set to be opened by Christmas, including stores in Birmingham's Coleridge, Coventry and Washington in Tyne and Wear in the North East.
Bayley explained that a large number of potential investors were showing a keen interest in joining the Fonehouse franchise network, which demonstrated the traction that the programme had already gained. He added that if the current level of momentum could be maintained, he was 'confident' that an additional thirty stores could be achieved by the end of 2013.
He added that the brand had already closed the stores that they'd identified strategically as surplus to requirements, which meant that the new store openings would be carried out with minimal closures of other stores. He explained that a lot of their partners were looking to open their second retail store, a situation that Fonehouse describes as the 'acid test' and an indication that the franchise programme is working.
The brand believes that the market is ripe for opportunity, particularly with the release of the iPhone 5 and the rollout of the EE 4G network.
Franchise Expo is pleased to see that the Fonehouse business model is ready to roll out its expansion plans again and continues to demonstrate ambition and good planning. Fonehouse is proving to be an interesting franchise model that is certainly offering plenty to attract its existing franchisee base and prospective investors with the will to succeed as self-employed business people.