Feeds

User 2 seeks refurb franchisees

But they don't come cheap

  • alert
  • submit to reddit

The essential guide to IT transformation

The failure of franchising in PC retail is being challenged by User 2 Computers, which has launched an ambitious programme to sign up around a dozen franchisees. The retailer based in the North East of England, claims that - for the £110,000 cost of a franchise - it can provide franchisees with a fully fitted shop and stock to trade. Allan Mitchell, franchise development manager at User 2 Computers - a retailer with a turnover of around £ 1million - said that it offered technical training to franchisee staff, and group purchasing which meant low cost PCs. User 2 Computers builds its own PC and also sells re-conditioned units. Franchisee owners have to build PCs from approved component suppliers in order to ensure consistency said Mitchell. "The terms of the franchise mean that certain standards of build must be met," he said. User 2 Computers is combining the franchise scheme with its own expansion programme - funded by 3i - to build its name and open a dozen new stores, from its base in the North East. Mitchell said that the value of the franchisee would be increased as the User 2 Computers chain expanded. The history of franchises in the PC retail industry is not a happy one, however. Few have attempted franchising and even fewer succeeded. The reason according to Brian Burke at Dun & Bradstreet's computer market intelligence unit is that the valuable brands in the PC industry belong to the PC manufacturers not the resellers. "There is little value in the retailer's name," said Burke. "Customers will not have heard of most of them. What they will have heard of are vendors names - like Compaq and IBM - which will be of little help to the franchisee." ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.