|
9/6/2002 |
|
Riding the NextWave
In the wake of downsizing and disaster in the technology sector, one local company is hoping to ride a new trend to success on a national level.
Port Charlotte's NextWave Computers is attempting to duplicate itself as a computer sales and repair business nationwide. The company, originally called The Computer Store, is now licensed to sell franchises in 38 states. NextWave holds local contracts to do warranty repairs for several major computer and equipment manufacturers, including Hewlett-Packard.
Founder and president Tom Welchman has had big plans for the company since its beginnings as a Web site and a warehouse. He has been talking about taking his Computer Store national since it outgrew its first storefront and moved into its current location at 1825 Tamiami Trail, Suite 3B.
But a little luck can go a long way, too.
Welchman and NextWave -- renamed so it could be trademarked for franchising -- are launching their new business venture at a time when being a franchiser has never looked so good.
Franchising tends to be counter-cyclical, peaking when the economy is gloomy, said Terry Hill, spokesman for the International Franchise Association.
"When the economy starts to take a nose dive, we notice a pick-up in what we call leads, people looking for new franchise opportunities," Hill said.
Frustrated investors and displaced workers see a franchise as a fairly safe business venture, he said.
In 2000, the Subway restaurant chain sold 500 franchises. So far this year, 1,502 new Subway shops have been opened, according to Subway's Web site.
Some credit for the jump goes to a new healthy-alternative campaign and gourmet extras, but Subway officials say the economy is also working in the chain's favor and helping it to break its own franchise records.
Although 76 percent of Subway franchises are sold to people who already have one Subway restaurant, many new franchisees are former middle- and upper-management executives, said spokesman Les Winograd.
"They may be a little disappointed with the corporate world and they might want to take the bull by the horns and go into a business to be their own boss," he said.
For a fee ($10,000 for a Subway restaurant plus at least six times that amount in start-up costs), franchisees get the tools of a proven business model.
In the case of NextWave Computers, an aspiring entrepreneur can have a tech franchise for $25,000 and some start-up costs. A two-week training session in Port Charlotte is provided for every franchisee.
Welchman said he hopes to sell 24 to 40 franchises the first year.
He has a lawyer who specializes in franchise law, six months of research, eight months of development and articles on franchising trends. For the past year, he has been working to turn the company into a systems-dependent operation that could be duplicated by following his blueprint.
But Welchman admits, with a grin, that timing and ambition may have collided: "We were doing this at a very advantageous time."
He hasn't inked a deal yet, but he only received word on approval of his franchise license this week.
Service Brands International CEO David McKinnon said his company is clearly having its best year ever in terms of franchise sales.
The Ann Arbor, Mich.-based company owns service companies including household cleaning business Molly Maid Inc. and fix-it business Mr. Handyman.
In a good year, Service Brands International will launch about 50 new franchises. So far in 2002, it's sold 130 franchises.
McKinnon, who chairs the International Franchise Association's technology committee, said NextWave is part of a fairly new set of franchises based on computers and related technology.
If the launch and business plans are well-executed, these companies could gain a lot of momentum by taking advantage of franchises' popularity.
"There's a lot of people being down-sized out of the tech industry," McKinnon said.
Tom Welchman, president of NextWave Computers, based in Port Charlotte, is hoping to sell 24 to 40 franchises in the coming year, now that he has received permission to sell computer sales and repair franchises in 38 states.
Source - Sarasota Herald-Tribune
|
