ChipsAway looks to its next phase

ChipsAway’s parent company has been reflecting on the exciting future of the brand in its 2018 end-of-year report.

As parent company Franchise Brands reflects back on its 2018 results, van-based franchise ChipsAway has been looking ahead to the future, which will see it undergo big changes.

Although 2018 didn’t bring as many new franchisees in as ChipsAway had hoped, it’s already seen a significant increase in the number of franchise enquiries from prospective franchisees. The franchise will begin transitioning from van-based mobile repair centre to operating from larger Car Care Centres and the executive chairman of Franchise Brands, Stephen Hemsley, explained why this is significant:

“ChipsAway continues to grow Management Service Fee income with 30 percent of the network now paying turnover related, as opposed to fixed, fees. ChipsAway is in a transition from a van-based operation undertaking SMART repairs where the franchisees pay a fixed monthly fee, to Car Care Centres which undertake larger repairs and where the franchisees pay a turnover-related MSF of 10 percent. As a result of this transition and the relative decline in recruitment income, MSF income now represents 62 percent of ChipsAway income (2017: 57 percent) and 30 percent of MSF income is turnover-related rather than a fixed monthly fee. This represents a significant improvement in the quality of our income. To encourage franchisees to invest in Car Care Centres (of which we already have 33) and the specialist equipment needed to deal with driver-assist technology and electric vehicles, we will shortly be opening a new model facility in Kidderminster. This will give us the ability to test the effectiveness of new equipment and to train our franchisees in its use.”

As part of the successful Franchise Brands family, ChipsAway has grown its number of franchisees significantly in the last few years. It hopes to continue its success in the coming years.