This month, Pegas launched its franchise business line. Within a few days after launching the news business line, Pegas already received over 30 applications it received from prospective entrepreneurs from all over the country. Next, the company is eyeing Italy for the international expansion of its franchise line, Andrei Botescu, co-founder of Pegas Workshops told BR.
For Pegas, Botescu, explains, the timing of the franchise line launch was based on the fact that the company, set up in 2012 reached this year the right level of maturity required by the move. “Right now, Pegas has reached a certain level of maturity that allows for transfer of knowledge and experiences. We opened our mono-brand shops already a few years ago, we have well-prepared employees, and, not least, a rich portfolio. We managed to position this brand the way we wanted and, more than that, we are active on a growing market. Therefore, expansion under a franchise model was the necessary step,” he tells BR.
Although it received 30 applications within the first days after the launch of the franchise line, Botescu says it is still early to forecast how many shops will open their doors in the near future. “It is difficult to estimate a certain number of shops right now,” he says. ” We will go the way of demand and potential while following the principle of exclusive areas. Once we open a shop in a region we will not open a new location in the same area,” he explains.
Screening prospective partners
According to Botescu, when choosing prospective partners, retail experience is not a prerequisite. “We will select our partners among those who can support a retail business, know what approaching clients entails and, more than that, can quickly absorb technical information related to bikes and biking.”
The way to compensate for lack of retail experience is by means of the prior training before the shops open their doors. “Our partner needs to be open to communicate, to have entrepreneurial spirit and, more than that, to be a good team player,” the entrepreneur says on the desired profile of the franchise holders. “The key to success will be the proactive approach based on the principle that every problem has its solution, while always paying attention to the client and its expectations,” he explains. “We discuss with every candidate, we find solutions, identify the potential so that, when signing the contract the expectations are met on both sides,” he adds.
Pegas offers assistance starting with the selection, design and staff training to franchise holders. “The mix of technical abilities with sales techniques is very important” when selecting future partners, Botescu argues. Pegas also provides access to an operational manual, assistance throughout the opening process and post opening and with communication and targeted marketing. “We support franchise holders to adapt their selection, services and at the same time communicate efficiently with clients,” he says.
Franchise fees of EUR 5,000 to EUR 25,000
The difference between the franchise fees, which range between EUR 5,000 and EUR 25,000, come from the size of the shop, and its facilities. Moreover, alongside preparing the shop, the investment will continue with the franchise tax and investment in stock. “The EUR 5,000, which represent the franchise tax, will cover the initial stages, such as design, staff training, indoor branding elements, access to a dedicated portal, continuous assistance and holding a location opening. The initial tax also includes the creation and implementation of an adapted marketing program. In what regards the stock, it is proportional to the size of the store, starting from EUR 10,000,” Botescu explains.
Pegas opened two shops this year, in Suceava and Constanta, which are doing very well, and three other, in Bucharest’s Baneasa, Afi Palace and Parklake. “We are planning to open some in the near future in Cluj, Iasi, Brasov and Sibiu,” Botescu said.