Fonehouse puts brake on franchises

Fonehouse puts brake on franchises


Fonehouse has slowed its programme to roll out 100 franchise stores by the end of the year.

Instead, the retailer is aiming to open 75 stores by the end of 2010 and ‘at least’ 25 stores in 2011 as part of a drive for quality rather than quantity.

Fonehouse MD Clive Bayley told Mobile that the move is prompted by tougher economic conditions that require partners to raise their game. Fonehouse has parted company with a number of partners over the past few months who failed to make the grade.

Bayley (pictured) said: ‘We have added loads of stores in the past year and it has been going really well. However, we have slowed the pace and now plan to take on 75 new partners by the end of this year, and at least 25 by the end of 2011.’

He added: ‘We are upping the quality of the partners we take on – we  have lost four or five of our partners recently that were not doing it right, so we have to be more careful about who we accept and how we train them. What we don’t want is growth for no reason. We have to be selective about who we take as partners, especially in a tight market.’

Bayley said Fonehouse is also increasing its training programme for partners, opening a new training centre in Chelsea, London.

Bayley is predicting the continuing rise of retailers and the demise of dealers in the mobile phone franchise arena.

He said: ‘Some of the dealers will fall away as we up presentation – it will attract more retailers than dealers – a lot of the original mobile phone dealers have gone into b2b simply because retail works for retailers – it’s tough.’

Written by Mobile Today
Mobile Today


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