Electric Company: Are There Franchises?

While franchising is a popular business model in many different industries, it's yet to penetrate the electrical sector. Here, we take a look at whether there are any electrical franchises and, if so, what opportunities they offer investors.

Are there franchises?

While there are several franchises in the electrical sector, there are few compared to other major industries. First and foremost, electrical services are still primarily dominated by contractors and the self-employed. Very few franchises have attempted to break into the industry, and there are still questions as to whether the franchise model is well-suited to this type of business.

When it comes to retailing, there are a number of franchises who stock electrical goods as a small part of their product range (DIY stores, for instance) but not too many that specialise solely in electrical products. This is probably because this market is typically dependent on the construction industry and wholesalers. Wholesalers are notoriously tricky to compete with on price, making it difficult to establish yourself as a well-respected supplier.

However, if you’re looking to open a business in the sector, there are some electrical franchises to consider.

Mr Electric

Mr Electric is the electrical industry’s leading franchise opportunity and the only business in the sector to have genuinely embraced the franchise model and succeeded in applying it. This makes them a particularly special case and a business to keep an eye on in the future. Franchisees are responsible for providing customers with high-quality electrical services (both residential and commercial), that includes basic repairs, installations, upgrades, and maintenance.

To become a franchisee, you'll need to invest a total of £70,000. This electric company is famous for its excellent training programmes and for providing its franchisees with word class learning opportunities. As with most successful businesses, customer service is considered all-important, and there's a strong emphasis on ensuring that all franchisees can offer their customers the best service possible.

Local Appliance Rentals

Local Appliance Rentals are a consumer hire store that stocks a diverse array of products, including a large number of white goods, such as fridges, as well as furniture and entertainment equipment. The rentals typically cover a period of up to 24 months and the business prides itself on renting equipment at incredibly affordable rates. The franchise was established in 2013 but has already grown to encompass a network of 60 franchisees. This impressive growth demonstrates how much demand there is for second-hand electrical goods in the UK.

A Local Appliance Rentals franchisee must raise £100,000 if they’re to join the organisation. The franchise is famed for its robust support systems and the steady cash flow that many franchisees achieve within a matter of months.

Aire Serv

Aire Serv is a franchise dedicated to the sale, installation, and repair of air conditioning and heating systems. As a management franchise, franchisees are responsible for organising the business, attracting custom, and hiring and managing trained technicians. The franchise is set up as a van-based business, which franchisees can grow by adding further vehicles to their fleet or moving into a new territory. Founded in 1992, the franchise now boasts more than 200 franchisees across the globe and hope to keep adding to this figure.

Franchisees need to raise a total investment of £50,000 before they're given their franchise unit to manage and run. This initial investment allows you to access the franchise’s highly successful systems that help generate leads, close sales, and grow your business. The training opportunities offered are second to none and franchisees will also benefit from the extensive research and development work carried out by the franchisor.

Mr Arkwright’s Tool Emporium

Mr Arkwright’s Tool Emporium is an example of a general DIY franchise that stocks an extensive range of electrical goods and supplies. Having developed a strong brand identity, the business has gone from strength to strength in recent years and is known for its excellent customer service and warm and friendly staff. The franchise network currently consists of three franchisees, though the franchisor is keen to find individuals who are capable of expanding the business further.

To become a franchisee, a total investment of £130,000 is required. This covers the entire setup process, with the franchisor proving guidance on how to choose a location and then fit and stock it. The franchisor also operates the supply chain, ensuring the shop is always stocked with affordable goods from some of the most respected brands around. The franchise has developed different business models for different circumstances. For instance, a different model is used for city centre locations and suburban businesses.

Mr Handyman

Mr Handyman is a home repair franchise that has a strong electrical maintenance component. Originally founded in the US, this van-based franchise quickly expanded to become one of the country's top repair businesses and a significant player on the franchising scene. In recent years, it has made the leap across the Atlantic and begun to set up operations in the UK. It has an international presence, that includes franchise networks in several European countries, and is actively looking to grow its operations across the globe by hiring new franchisees and master franchisees.

To become a franchisee, you'll need an investment of approximately £25,000. This gives you the right to utilise the brand and its trademarks, as well as granting you access to the franchise’s training and support systems. With an enormous amount of franchising experience, the central franchisor team is ready to help franchisees with any problem they may encounter.

Conclusion

While there is a serious lack of “pure” electrical businesses in the franchise sector, many sell electrical products or services alongside other goods. Mr Electric is the leading service provider in franchising, while Mr Arkwright's is an up and coming DIY store with a lot going for it. Our remaining three franchises are fairly established and could be considered an excellent investment opportunity.