This month we are interviewing Kasia Baldwin from Driver Hire regarding their franchising opportunity.
1.What are the benefits of having a Driver Hire franchise?
As with any franchise the main benefit is that you are not alone. Driver Hire franchisees are part of a larger network of over 100 offices within the UK who can access ongoing training and support from over 70 key staff at the Driver Hire head office in West Yorkshire. As we’re a B2B management franchise opportunity, our franchisees don’t have to worry about storing perishable stock or leasing expensive high street business units. Many of our franchisees choose to keep their overheads low by basing themselves within a serviced office complex.
2.How long have Driver Hire been franchising?
Driver Hire has been in business supplying a flexible workforce to the transport and logistics sector for over 30 years. Franchising since 1987 prospective franchisees can feel confident that they are buying into an established and proven business model.
3.How much does your franchise opportunity cost, franchise fee, equipment and working capital?
The franchise licence fee for a new-start Driver Hire business is from £30,000. This includes:
* A 5-year renewable licence to trade within a postcode-defined territory
* Assistance with business planning and financial forecasting
* Advice on finding premises and recruiting staff
* Comprehensive training on our 2-week Foundation Training Course
* A starter pack of marketing and promotional materials, including a personalised customer newsletter
* 3 months free subscription to dhOps (Driver Hire’s client and candidate management system)
* Intensive post-launch support from an Area Development Manager
In addition we recommend a further £7,000 to £10,000 is required for other start-up costs such as furnishing and equipping the office and professional fees.
The cost of a Driver Hire franchise resale is determined by, and payable to, the selling franchisee. It will depend upon a number of factors including the length of time the franchise has been established, its trading history, profitability and current growth trends. Previous resale values have ranged from £40,000 to £500,000.
4.What are the average gross and net profits and do you provide accounts and a business plan?
Profitability as a Driver Hire franchisee will depend upon a number of factors, not least your personal effort, determination and activity levels. The rate at which your business grows will depend largely upon your sales activity but you should aim to achieve minimum annual sales of at least £750,000 by Year 5 and then continue to build sales to £1m and beyond. The success of existing franchisees within the Driver Hire network certainly demonstrates that this is achievable. Provided that your fixed costs (staff, premises, and finance and general office overheads) are controlled effectively, then a net profit of between 11% and 14% is achievable.
5.How much/what training do you provide and is it on-going?
Prospective Driver Hire franchisees don’t require any past experience of working in recruitment or the transport and logistics sector, our training provides you with all the required knowledge and skills to get your business off to a flying start. All franchisees attend a 2-week Foundation Training course. This is then followed up by a 6-month Franchisee Support Programme to help put the initial training into practice. Each office is also allocated an Area Development Manager to provide additional support on a one-to-one basis and regular regional meetings and conferences are organised so Driver Hire franchisees can network, share knowledge and best practice.
6.How much head office support do you provide?
At Driver Hire we firmly believe that successful franchising is built upon the strength of the business partnership between franchisor and franchisee. From day one and throughout the term of your franchise we work hard to provide you with all the support that you need to make a success of your business. Our comprehensive franchise support package equips you with all the tools (National Accounts, IT, Marketing, Training…) that you need to build a highly profitable business and give you a significant advantage over your competitors.
For more information on current franchise opportunities with Driver Hire:
Call: 01274 361073 Email: franchise@driverhire.co.uk
