The Opportunity
Franchising is about a group of independent businesses being linked through a proven business format and brand. While these businesses are financially independent of each other, the fact remains that the success of BMI as the franchisor is intimately linked to your success as the franchisee.
At the last count there were 759 franchisors in the UK offering franchise opportunities in everything from cleaning to print and promotional services. We believe that the bottom line is this: What return can you expect, not just from your initial investment, but from your hard work too? We have track records of delivering a franchise system which returns both annual profits in excess of £100,000 and a capital asset which can be easily sold when you are ready to exit the business.
We are the emergency service to the hydraulic power industry.
Hydraulic power is used in every sector of industry; hydraulic hoses are by far the most vulnerable part of the system, requiring regular replacement cycles or indeed replacement for damaged parts.
Our customer base ranges from local councils and blue chip companies to the local golf club. Wherever fluid is moved, we are able to offer a solution either by an emergency repair, or a regular maintenance program.
Our total market is estimated to be worth in the excess of £600 million with each market segment broken down as follows:
| OEM | £296 m |
|---|---|
| Distribution | £222 m |
| Emergency | £82 m |
The OEM market is supplied by the main hose and fitting manufacturers. This market involves high production capacity and large volumes. Orders are almost exclusively secured by price.
The distribution market is about reliability, range of product supply, and lower prices. Service is less of a differentiation. The emergency market is driven by the requirement for service where speed of response is the most critical requirement.
BMI compete in both the distribution and emergency markets.
Each BMI franchise has its own territory, all of which were drawn up based on a statistical analysis of local businesses to ensure viability. The franchises each operate a small industrial unit of around 2,500 square feet, and typically start with three service vehicles. Our franchise is a managed franchise, so it is only right for you if you want to start and grow a business rather than just be self-employed. You will have your own team of service engineers, a service manager and book-keeping staff. All this is underpinned by our support team and regular training on our products, IT systems, and finance.
We ask that you have liquid capital of circa £70,000 although have opportunities for both larger and smaller investments. We have established relationships with the major high street banks to ensure that you can easily borrow the balance of the total investment, subject to normal lending criteria.
Our current franchisees come from various walks of life; we are a service driven business and wish to work with motivated and friendly people who are prepared to go that extra mile for our customers. We don't look for prospects to have technical background in hydraulics as full training is given initially and on an ongoing basis. We welcome any prospect to talk with our existing franchisees so that they a share their experience of both setting up a BMI service centre and its ongoing viability.
We encourage our prospects to visit both our UK headquarters and a nearby BMI service centre to discover the opportunity. Please feel free to contact us on 01902 867800.
