Business Opportunities
Introduction to the Tekion Business
Thank you for your interest in the Tekion Climate Control business. The information below is designed to outline all you need to know about the business opportunity. We already have attracted much interest but we are naturally looking for more franchisees or business partners. The information below will help you form a better understanding of the marketplace within which we operate, and how we intend to stay in the forefront of our industry by creating a network of franchised businesses.
Above all, we hope this page will give you enough information to enable you to decide that the Tekion Climate Control franchise provides an exciting opportunity for you. This is your opportunity to join a leading supplier of climate control solutions and operate one of our franchises in many ways at the start of our brand life. Market conditions indicate that we will grow quickly. The structure of franchising enables us to work with you in business partnership to help you develop your business while developing a nationwide Tekion brand - in short, it represents a win/win scenario for us both. We believe that once you have read the information that follows, you will agree with us when we say that this is an ideal business opportunity for the ambitious professional who is willing to work hard and be committed to develop the brand to obtain the maximum results.
Since our foundation in 2003, Tekion has achieved a great deal; our brand has come to represent trust and reliability to a wide range of big blue-chip organisations as well as in a host of small and medium-sized businesses and households throughout the country. Our plan, quite simply, is to continue to do what we do best - to make sure we have the technology and the know-how to look after our customers, supplying them with a range of market-leading products at competitive prices. Not only our existing customers, but a whole range of new customers, too. Sounds simple. Achieving it takes a lot of hard work - and teamwork.
That’s where our franchisees come in. In short, our franchisees are true partners of Tekion Climate Control. This information will give you details of the approach that we strongly believe will keep us satisfying our customers, and ahead of our competitors, for many years to come. Once you’ve had a chance to read the enclosed information, we hope you’ll share our excitement and enthusiasm.
Tekion first started developing air conditioning units in 2003, and exported 1600 units to Spain in its first six
months of operation. The components for those early units were sourced in Japan, and gave rise to the name
Tekion, which means “comfortable temperature” in Japanese.
After its outstanding success in 2003, Tekion Limited was incorporated in February 2004 and since that time
has continued to distribute and install units throughout the UK and in Europe, supported by a network of approved partners throughout Europe and a team of highly-skilled installation engineers. In that same year, Tekion opened its own Training School to guarantee the highest levels of back up, service and support to customers.
Tekion Climate Control, the franchising arm of the business, was established in February 2006 - and it is this company that will take advantage of the huge growth in the market. We moved to our current address in Guiseley in autumn 2006.
Joe Cahill, joined as Head of Franchising, at the end of January 2007 to take us to the next stage of our franchise development. Joe was up until December 31st 2006 a Board Director at the current ‘BFA Franchisor Of the Year 2006’. He had seven years experience with that company and is looking to use his expertise to push Tekion Climate Control forward. His franchise experience will be invaluable to both the franchisor and any new franchisees.
Picture of Head office
CloseThe company continues to be driven by the highest customer service levels and is rightly proud of its reputation as a market leader in temperature control.
Pictures of customer premises from our colour leaflet
CloseOn a more objective measure the UK air conditioning market is valued at £675.6 million*, and has grown by £40.3 million since 2004 - a trend that is set to continue. The UK market for air conditioning equipment is expected to reach some £693 million (at 2005 prices) by the year 2010.
* (source: Market & Business Development report, issued September 2006)
Our cool and wet climate means that climate control systems are much in demand, especially in a commercial environment, designed as they are to reduce humidity, damp and odours and to provide warm air in the colder months. And that’s without the changes in climate brought about by global warming. The increasingly long “summer weather” each year always boosts sales of air conditioning and climate control systems in the following year.
It’s important to remember, too, that an air conditioner isn’t limited to cooling a property in the warmer months - it can also provide heat in winter and in the periods between. This is a very important message that the industry has yet to get across in the UK. In short, many people are now coming to realise that climate control systems help to remove the unpredictability of the British weather.
How do they know about air -con? A major reason for the growth of the climate control market is the use of air conditioning and climate control systems in cars and vehicles - the car doesn’t have to be a superbrand these days to have a system installed, and when people get used to them while they’re on the move, they expect the same quality of air in their work and home environments.
It’s been proven that there are commercial benefits associated with climate control. Disaster Recovery procedures in businesses always focus on the potential for overheating machinery and steps that can be taken
to minimise that risk and the potential downtime associated with it. For staff and private individuals, too, there are benefits: climate control systems contribute to everyone’s wellbeing, and can solve the normal tired “slowdown” we all feel in a heatwave, caused by our bodies mobilising blood towards the skin and leaving our muscles and cardiovascular system less well irrigated. Climate control systems also help to control dust mites, smoke, pollen and other impurities, giving people (especially those with hay fever and allergies) the opportunity to breathe healthy air all year round. Don’t forget, too, that in a noisy or polluted environment, climate control systems means that windows can be kept shut. Here at Tekion, we offer a range of products to suit every environment - whether business or domestic, and so are ideally placed to capitalise on this predicted growth.
licensing, distributor and agency arrangements. The more popular use of the term has arisen from the
development of what is called ‘business format franchising’.
Business format franchising involves one party or company developing a successful business format, and then granting a licence to another party or company to set up and run a wholly identical venture in a particular area for a specific period of time.
The party or company granting the franchise - in this case, Tekion Limited - is known as the franchisor.
The licence is called the franchise. The party or company buying the franchise is referred to as the franchisee. Franchisees own and operate the business themselves, but the franchisor retains control over the way in which their products and services are marketed, in exchange for supplying a complete, tried and tested business concept together with the know-how to make it work successfully.
The principle is simple: it is the uniformity and consistency evident in all successful franchise systems which has enabled the franchise industry to develop to a stage so that now in the UK alone it is worth over £10 billion in sales and there are now over 700 franchisors alone in the UK.
What are the advantages of franchising?
The main advantages of purchasing a franchise system can be summarised as follows:
training
proven track record with a proven system
initial help and advice
brand name
continual support and guidance
In short, so many people become franchisees because they know that they will receive comprehensive training in all aspects of running a business according to the blueprint developed by the franchisor. This will not only include sales and technical training but also marketing methods and business management. This is backed up by the Operating Manual, the ‘bible’ of how to run the franchised business.
Secondly, franchisees are buying into a proven business concept and system. The franchisor has proved that the business works, making all the mistakes in advance and learning from them, and can therefore make sure that the franchisee will not repeat those mistakes in his or her own business.
The franchisor will have developed a reputation in the market place and therefore provides automatic credibility for the franchisee. Customers like to deal with businesses which have a solid foundation but which provide a personal service, a balance which is often lost as a national non-franchised network grows.
In summary, one phrase below is often heard when describing the unique business relationship called franchising.
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Work for yourself - but don't be by yourself.
Training
In any franchised business, training in the franchisor’s business systems is hugely important - you are, after all, buying a licence to reproduce a business format that has been proven over a period of time, so you will need to know what that business format is and how to make it work for you in developing your own business.
Tekion Climate Control goes further than that, though - it’s important that we train you how to survey a building, how to specify the right products, how to install and how to maintain them, as well as how to match our customer-driven service levels.
A proven track record
As a franchisee, taking a franchisor’s idea and experience and operating the same business along identical lines in similar conditions implies your chances of success must be high - and certainly far greater than the lone businessperson starting from scratch and slowly progressing on a trial and error basis.
The benefits of a proven track record become even more obvious when you launch a franchise - certainly, you would be viewed more favourably by business contacts than an independent sole trader would be.
Similarly, some High Street banks remain wary of backing new small businesses unless the owner is able to provide an equal £ for £ investment and sometimes excessive security for even the most modest loan or overdraft facility. With a proven franchise system, raising finance is usually easier. All of the leading banks now offer special financial packages for prospective franchisees on more favourable terms and conditions than those given to the totally independent trader. This is due to a far lower failure rate for franchisees than for a completely independent business.
Initial help and advice
Tekion Climate Control will actively assist a franchisee to set up a concern - from unique full training in our business systems through to supplying equipment, branding, manuals and access to state-of-the-art products. All of our accumulated know-how will be made available to you.
This wholly comprehensive, hands-on service makes it less time-consuming and expensive for you to open a franchised outlet than the equivalent completely independent concern. We already know what and what not to do - we’ve seen and done it all several times before. So we can help you to avoid making costly mistakes.
An established name
Tekion Climate Control is a solid, reputable and profitable company that has established and maintained a winning formula, as well as a respected reputation. When you choose to work with us, you automatically acquire a recognisable name, image and built-in goodwill. You will have a standing that might normally take many months - or more probably, years - to earn if you operated on your own.
Continual support and guidance
Tekion is willing and able to help a franchisee as and when necessary - no matter where, no matter when. As
well as providing you with an operating manual that specifies all of the ingredients of a successful venture, we also have troubleshooting experts on call to answer queries and resolve problems. Our franchisees will have access to all our ongoing product research, and will be able to participate in updating
training programmes, enjoy the benefits of our bulk buying and be included in regional and national marketing campaigns.
At this stage of our development the Head Office personnel ratio to franchisees is very high which must mean individual attention and greater support to franchisees
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Why Tekion is Franchising?
The team at Tekion Climate Control has achieved much in a very short space of time, and is ready to take the next step in the long-term development of the Tekion brand.
The formation of Tekion Franchising is designed to help us work with a network of franchisees, each of whom can provide our unique temperature control products and accessories designed to meet the needs of both the residential and business communities.
You have already seen that the UK market is growing at an incredible rate, providing a stable background of growth and opportunity for every franchisee. Tekion has a successful track record, and is in a strong position to develop the franchise concept - we know our business, and we will work with our franchisees to make sure that they know it too.
Tekion Climate Control was attracted to franchising because we want to attain national and regional coverage at the earliest opportunity, in order to be able to capitalise on the growth opportunities presented by the climate control market. We have great products, we have a highly successful business model and we are keen to develop regional franchised installation teams to capitalise on that, backed by quality installation and support services.
The Tekion franchise is special, offering not only exclusivity of products but also full in-house training and specific support. There are other air conditioning franchises in the market, but at the time of writing they do not distribute or provide exclusive branded products. Let’s be clear - Tekion products are known throughout the world and they are only available from Tekion franchisees. By having our own brand we have greater control of our own destiny. As you will appreciate this has been shown in many walks of life particularly in the retail sector .
We are confident that by working with our franchisees we can more quickly develop a truly nationwide brand and identity, one that will quickly become even more widely known throughout the UK.
We cannot deny that as a commercial operation we want to achieve more wealth and we can do that more easily by helping you to make money. As an ethical franchisor, we don’t make money from the franchise license fee (look at the “What do I get for my investment?” page to see for yourself) ! we only make money when our franchisees make money, so it’s in our best interests to support you to the hilt and to work with you to make your business as successful as possible.
We are actively looking for franchisees with strong people and business skills, people who wish to achieve high levels of rewards and earn what they feel they are worth, and we know from experience that such people are attracted to the Tekion franchise opportunity. By working together with people who share our own ambition and desire for excellence, we can all succeed.
All Tekion franchisees are granted a licence to operate a Tekion franchise for a period of five years, which is
renewable (at your option) for further periods of five years subject to contract.
The fee for this opportunity is £21,300 plus VAT.
Gross profit projections are difficult for any business starting up but we realise that is what some people are looking for. We would like to sit down and discuss first the size of your team and other factors that will influence your earnings. The biggest factor is probably your hunger to succeed!
The projected gross profit for year one is over £49,000*, with year two rising to an impressive £58,000 and year three to more than £65,000. Every Tekion franchisee receives full training prior to commencement of the franchise, as well as on an ongoing basis. The training and induction programme includes an introduction to Tekion, marketing skills and product and technical training,
as well as an introduction to the company’s systems and how to manage your business finances.
We will also teach you how to specify, sell and install our systems.
A stock of promotional material is included within the starter pack, which also includes branded stationery, and a prospect list for sales generation - together with the software to enable you to manage that database.
As a franchisee, we offer you the opportunity to operate your business following the Tekion format, with
dedicated support from us. Each Tekion franchisee has access to our Operating Manual, which in essence lays out all of the processes and procedures that Tekion has developed and still follows in order to achieve its winning formula.
This business is then yours to develop to its optimum size; but please remember that you are free to sell your
business if at any stage you want to realise the investment you have made.
*Neither Tekion Climate Control Limited nor any of its Directors, employees, professional advisors or associates makes any representations, warranties or guarantees as to the reasonableness or accuracy of the financial information provided nor any assumptions used therein.
The Business Package: What do I get for my investment?
A licence to use the Tekion Climate Control brand and business format in your exclusive territory
Initial training in the Tekion business system
Full in-house CITB Refrigerant Safe Handling Course
Full in-house air conditioning training course
Full product training
Full marketing training and support - including a marketing launch in your territory
The support of a dedicated Franchise Manager
Ongoing training and support from our team of experts
An Operating Manual (on loan)
A Technical Manual (on loan)
The right to renew your business package for a further five-year period at no fee (subject to contract)
AS WELL AS ...
a full tool kit containing all the essential tools needed to carry out surveys, installations and maintenance
a laptop
air conditioning calculation software
Tekion polo shirts, fleece jackets and other branded clothing
a starter pack of stationery and marketing materials, including a dedicated web page on the core website
a prospect database to assist you in developing your customer base, together with the software to
manage that database
a Tekion e-mail address and ‘phone number (calls not included)
an introduction to your local vehicle supplier with ou paying the costs associated with logo up your vehicle
the ability - and training - to sell to both domestic and business customers
The Benefits of becoming a Franchisee with Tekion
Strong existing client base
Marketing and sales support, including local PR on set up
Technical support hotline
Fully-trained installations team
Clear territory of on average 20,000 businesses and a minimum of 100,000 homes
Assistance with preparation of all aspects of start up of business
Full training programmes prior to commencing
On-going support, training and information on technology and market developments
Structured quarterly business reviews
Tekion’s support will enable you to concentrate on running and developing your business on a daily basis,
without the never-ending pressure of needing to devise policies, systems and procedures as you go along.
Compare this to a sole trader, who constantly has to make far-reaching decisions, select alternative courses of action, worry whether the right choices have been made and often suffer the consequences if and when things go wrong. At the same time, your operating costs ought to be lower than those of the sole trader who cannot benefit from group research and development, buying and advertising arrangements.
If you feel you have the ability and determination to be successful as a Tekion franchisee and would like to know more about this unique and highly rewarding opportunity, the next step couldn’t be easier. Simply either call Joe Cahill on 01943 871848 or complete the form on this site.
Please note that by making contact with us, you are under no obligation at all, and all information you provide will be held in the strictest of confidence.
We will then either arrange to meet you or send you a franchisee application form, asking questions relating to, for example, the town or area you’d like to operate in, how soon you’d be able to start work as a Tekion
franchisee, and the background to your current business activities.
If we haven’t already met, we’d then arrange a one-to-one meeting with you - on a strictly confidential business, of course - to discuss the opportunity in more detail, and specifically to run through our unique business model.
At this time we’ll also share with you detailed projections of the profits you could expect to make when you
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Request for Consideration
I am interested in the Tekion franchise and would like to know more about this exciting opportunity. I understand
I am under no obligation whatsoever.