Franchise Information
Grab a Slice of the Action
Are you:
- Interested in a retail business?
- Looking for a business that's fun and profitable?
- Prepared to work hard?
- Able to invest around £30,000?
THEN you could soon join the exciting world of video games and run your own CHIPS store.
CHIPS, which celebrates its 23rd birthday this year, is the first to franchise its highly successful formula across the country and now you have the chance to grab your very own shop-in-a-box.
CHIPS started in the mid-1980s at the birth of the video games industry and now has 11 company-owned stores, an award-winning e-commerce site and 20 franchised outlets in Skipton; Stafford; Hartlepool; Arnold; Lytham St Annes; Yeovil; Consett; Chester le-Street; Guisborough; Chorlton; Portslade, Orpington, Stockton, Newcastle-Under-Lyme, Woodley, Ashford, Glasgow West End, Ormskirk, Dudley & Longton. More stores are planned for 2008.
Each of CHIPS own company stores and franchise outlets buys, sells and trades all leading brands of consoles, games, accessories and DVDs.
The video games industry has entered a new era with the launch of the next generation of consoles. Microsoft’s Xbox 360, Sony's Playstation 3 and Nintendo's Wii are all vying for top slot and with a host of exciting new games, business is booming.
By the turn of the 21 Century the UK's leisure software market was worth £934.4m. Almost £600m was spent on consoles and hand-held game titles and now you could be part of the action.
WHAT CHIPS OFFERS YOU
- Assistance with site acquisition
- Expert retail design and shop fit
- Opening stock
- Fully integrated stock control system, updated daily from HQ
- Full sale or return terms on both new and second-hand goods
- Full pre and post-opening training
- Ongoing business support (book-keeping, VAT, PAYE, marketing, business development etc.)
- Access to suppliers and preferential buying terms
- A comprehensive training service
- Direct link to all company expertise
- CHIPS Operations Manual
HOW MUCH WILL IT COST?
In total a fully-fitted, fully stocked store will cost in the region of £80,000, inclusive of VAT, depending on location. CHIPS does not charge a licence fee so in essence you are investing that money in yourself and your business. Bank finance is available (subject to status).
Like many franchisors our income is related to the success of our franchisees and this is calculated as a percentage of sales. CHIPS charges a management services fee of 7%, a marketing fee of 2% of sales and a 1% stock distribution contribution.
The management services fee covers the cost of providing ongoing support services whilst the marketing fees are paid into a separate bank account and used to fund marketing and promotional activity for the benefit of the whole network. Any stock bought via CHIPS Franchise Ltd from Chipsworld Ltd is on sale or return and the Stock Distribution Contribution contributes towards the cost of distribution and returning stock.
WHAT'S IN IT FOR ME?
A top established franchise can turnover more than £270,000 with an average gross profit of around 30%.
WILL IT SUIT?
We are looking for franchisees who are able to give a full-time commitment to the business and work in it hands on.
You don't have to be young or a computer whiz but you or family members will probably have an interest in computers and the video games market.
You must be prepared to follow our tried-and-tested business format - but we are always looking for improvement and new ideas.
You need to have a positive attitude and be enthusiastic about running your own business.
As a retailer you must have good interpersonal skills, be prepared to work hard and have lots of commonsense.
You need to be able to raise the necessary capital and you must have some cash of your own to put into the business.
STILL INTERESTED?
The first stage is to fill in an inquiry form.
You will then be sent a brochure and questionnaire. Once that is returned you will be invited to visit our stores for an in-depth discussion.
Please feel free to contact joint managing directors Don McCabe and Nik Agar or Debra McCabe for an informal chat or visit any of our stores to talk to the managers or franchisees. CHIPS believes you should have access to everyone within the company.
You must be right for us and we must be right for you!