Vodafone's partner strategy

Vodafone is a British telecommunications company used by over 444 million people around the world. The company was originally founded by Racal (a British radar and electronics firm) in Newbury, England, as a subsidiary company in 1983, who won a license bid to build Brittan’s first cellular telephone network. The Vodafone analogue network was launched on 1 January 1985; the first call being made from St Katherine’s Dock in London to Newbury.

Vodafone in its modern form emerged in the early 90’s after Racal Telecom demerged from Racal Electronics to become the Vodafone Group. Vodafone has been a high street retailer since 1993. It is a globally recognised brand that constantly reinvests in retail to stay highly competitive in a fast-moving technological world.

Vodafone owns and operates networks in 22 countries, with partner networks in a further 48 countries. It predominantly operates in Europe, Asia, Africa and Oceania. Vodafone has over 15,000 stores globally. Their franchise systems are set up all over the world. 80% of their global retail estate has seen investment and there are already over 200 live Partner stores in the UK. The company believes this is the most sustainable way to grow, using the skills they’ve learnt over the last 20 years to give their Partners the best chance to shine.

In the last financial year ending in March, 2022, Vodafone generated a total revenue of 45.58 billion Euros. This was an increase of approximately 1.7 billion Euros compared to the previous year. The company believes through the power franchising, Partners can take a share of their profits. On average, Partners can earn between £45k and £100k per year depending on the number of stores they take (up to three - subject to availability). These figures are uncapped, so it's completely in the control of Partners to earn even more.

Established in 2017, UK's Vodafone franchise programme offers investors the chance to be their own boss of up to three branded stores. They receive a fully fitted store offering the latest smartphones, connected devices and Vodafone’s home broadband service. According to the company, this latest milestone reflects Vodafone’s ongoing investment in providing shoppers with a blend of in-person support through traditional retail outlets and access to the company’s online digital services.

Max Taylor, Vodafone UK Consumer Director, said upon launching their 200^th UK franchise partnered store: “Through this successful programme and the continued roll-out of our network to more areas, we are helping local entrepreneurs and communities stay connected through improved digital connectivity.”

Vodaphone are looking for external entrepreneurs who want to own a small number of stores in the UK on their Partner Agent Programme. Investing in one of their stores means you become an ambassador of a big-name brand with all its support, while still keeping the freedom of being your own boss.

What’s more, there is no upfront cost. All one needs to do is demonstrate that they have the funds to cover the cost of running your business for the first three months. If you don't have enough funds, the company says they are recognised by major banks who are familiar with their franchise model and will be happy to discuss a bespoke arrangement the right candidates.

A prime example of their successful franchise program is their Partner, John Fanibe. John was a Vodafone store manager for 10 years before he became a Partner. He wanted to run his own business and so when the opportunity arose, he became “very interested”. He has since been delighted with his choice.

“My highlights are the continued growth in all my stores. Every month we are seeing increased sales and benefiting from repeat business due to our great customer service. I'm very proud of my team. All three stores are now operating at least 50% more than when I first took them over,” said Fanibe.

“My advice to others is that you need to believe in yourself and have the self-confidence to succeed. Take the plunge as the rewards are worth it.  This is a great opportunity and one that will change your life. You get a lot of support and you will have other franchisees to seek help from as well so you can only succeed. The sky is the limit,” he said.

FRANCHISE UNITS

• Vodafone have franchise systems set up all over the world.
• They currently operate in 22 countries and have partnership networks in over 48 more, operating over 15,000 stores globally
• For example, there are over 200 live Partner stores in the UK

SUPPORT FOR THE FRANCHISE

• Innovative shop concept
• Fully stocked and established store
• Loyal customer base
• Transparent and competitive commissions on sales
• Regular marketing and promotions
• Ongoing training and business support

KEY FIGURES

• No upfront fees: Franchisees have to demonstrate they have access to funds to cover the first three months of business
• Minimum equity capital: £60k-£100k
• Partners may open up to 3 stores
• ROI: Up to 2 years