the profitable and well respected business has it’s routes in a pre-owned car dealership dating from 1946. Started by the vendors father, the business successfully traded in used cars from a high-profile location in an affluent area of south west london. After many years in charge of the business, and with a change in the used car marketplace, the vendor decided to expand the vehicle hire side of the business. After meeting with a number of respected and well known international car rental firms, the vendor signed an initial franchise agreement with a growing national chain in 1996. The original agreement was to cover a number of post-codes in south west london, serving a wide radius in a affluent part of town. In 2002, he decided to take on an adjoining patch, which extended the coverage of the businesses reach across west london. The franchise agreement is very flexible, and allows the owner to operate in a very independent nature as a business owner, sourcing and managing his fleet and additional marketing and business operations. When needed he can call on the larger national network to supply vehicles with a lower – but profitable margin, and as part of the franchise, enjoys regular high-profile advertising and a central company support structure. The business operates with a range of leased vehicles, all under 2 years in age. Previously the owner purchased vehicles outright, and sold back after a couple of years. If done right, this could add a great deal of profit to the bottom line, and can easily be re-started. The business serves the local residents with daily / weekly short-term rental vehicles, and covers the range from small mini sized cars to large commercial vehicles. With a national fleet to call on, all requests can be met in an efficient and professional manner. The other great advantage of being part of a national rental chain, is the ability of customers to pick-up vehicles at one location, such as the airport, and drop off at another closer to home or final destination. Approximately 70% of rentals are for cars, and 95% of customers are private individuals. The franchisor company is a member of the bvrla, and adheres to all legal and regulatory requirements. Equipment: in the sales office the business operates with a central computerised client database, allowing for efficent customer contact, and targeted marketing. The business utilites credit card payments systems, and takes telephone bookings alongside personal visits to the sales counter. At the rear of the building, the business operates a small garage area where vehciles can be cleaned, inspected and maintenance and repairs taken car of. Currently the vendor is offering hand car wash facilities to passing trade. This could be greatly expanded on with marketing, or sub let to someone looking to expand these services. Customer service: the business is proud that over 50% of customers will regularly make repeat bookings once they have used the companies service for the first time. This is in no doubt due to the friendly, courteous and professional service they receive, from the initial contact, to handing back the keys at the end of the agreement. Key strengths: the prominent high street location in an affluent area is obviously a great asset to the business, as is the lengthy continual trading history on site – with a great reputation built-up over 50 years. The franchise agreement offers reassurance to customers, a national pool of vehicles for flexibility and national pick-up / drop-off scenarios. Whilst the franchise name and marketing is a great strength, the flexibility in the model, provides the opportunity for the owner manager of this site to their own business. The business is in the enviable position of owning the franchise rights to two connected geographic regions, with only the overheads of running one operation, but limiting the opportunity for competition. Growth and expansion opportunities: there are many opportunities for growth with this business. There is a large forecourt currently used for parking of the hire vehicles, and sub-let at weekends to a local car dealer. Whilst this sub-let arrangement is profitable, there is every opportunity to return to dealing in pre-owned cars, not only to increase margins on the hire vehicles, but also as an added revenue stream. The vendor has started a hand car wash operation at the rear of the premises. This could be marketed more visibly on the high-street, and extended to a full service wash / valet facility.
