Accountants For Vodafone
The decision for Vodafone to franchise its stores is nothing new, globally Vodafone already franchises over 80% of its stores and the trend is to be continued here in the UK. There are already over 100 franchise partners in the UK and this figure is set to rise over the coming years. The idea of franchising mobile phones stores is deeply embedded in other Mobiles phone service providers such as O2 and EE, who have franchised their stores coming to a decade. So why franchise? Well the figures speak for the themselves, franchise stores tend outperform most retail stores on a like for like basis.
The Vodafone franchise opportunity is however a truly unique one. Firstly, there is no upfront cost and all Vodafone ask for is that there is sufficient working capital for 3 months operation of the stores. Another unique feature of Vodafone franchise is that the stock is owned by Vodafone, again different to the other telecommunication franchises out there. This means there is no need to purchase stock. Which in turn provides a significant cashflow advantage for you make the process of working your mission that simpler.
So, What’s The Catch:
From what we can see there isn’t one! Vodafone do however have different rates cards for different stores which from what we can see is based on the current performance of the stores. In a nutshell bad performing stores tend to have more favorable rates cards than those who are better performing or perhaps have better footfall. The exact criteria for determine what rates are applied to each store is not publicised, but Vodafone intention is to give everyone a fighting chance of being successful.
Steps To Becoming A Vodafone Partner
The Selection Process
1. Online Application
You can register your interest online and uploading your CV
2. Open Day
Once shortlisted your will invited to an open day where you can meet other potential partner agents and the franchise manager. You will also have a short one to one with the franchise manager.
3. Telephone Interview
The franchise manger will shortlist the candidates and conduct short, you will be then sent details of two or three potential stores.
4. Presentation 1 - Power Point Presentation
You will be required to present how you aim to improve the performance of these stores. This is your time to show that you are the right candidate for the job, you will be provided with inters on how you can improve your presentation in from the the franchise director
5. Presentation 2 – Business Plan
This is your final stage; you will be in front of the franchise director.
The Formation Of A Business
Once you have been selected to become a Vodafone partner this is where the exciting bits start and where the road to running your own business truly begins. Below is a guide of what you need to successfully ensure you are set up.
1. Company Formation
You will be required to operate as a franchise as a limited company.
2. Legal Representation
This is not a strict requirement as you may choose to review the legal document yourself alternatively you van get a solicitor to review the following documents as follows:
1) Franchise agreement
2) Lease agreement
Your will be required to ensure that you have the following insurance in place:
Professional indemnity Insurant
Public Liability Insurance
Employee Liability Insurance.
Death in service Insurance
4. TUPE Details
As a franchise you will be required to take over the exiting staff currently in store. This will mean that you will need to provide like for like salary and benefits.
5. Bonus Formulation
As a franchisee you can offer a bonus scheme as you see fit.
6. Staff Meeting
You will be given the opportunity to meet your new staff and present to them your new employment condition under your company.
7. Launch Day
Now that you have your store up running, you need to ensure that you are aware of the responsibilities as a director, ultimately the buck stops with you.
Must offer to all staff
How Can We Help?
Unlike most accountants who will be able to provide general advice, we have industry specific knowledge and our services are tailored as such. There are essentially two function that you must think of when it comes to running a successful franchise, ‘external compliance’ and ‘Internal reporting’.
External compliance is basically keeping the tax man happy, this is ensuring all your taxes are kept up to date.
Internal reporting on their other hand if for you, knowing your numbers internally is key to driving your performance. This will include knowing what targets individual staff have against actual performance, whether stores performance is on right projection to meets its targets. The internal reporting function can be tailored so that it can to meeting such as Handset conversion or HBB targets are being met. Below is a summary of what we can do from initial approaching Vodafone to ensuring the successful operation of your partner stores. Our aim is simple, we take of the numbers so that you can concentrate on ensuring the store performs to its fullest potential.
1. Preparation For Interview
2. Company Formation
3. Registration Of All Necessary Taxes
You will need to register for PAYE in order to run payroll.
As an employer you are now legally obliged to offer staff a pension. The Staff will then have the option opt out should they wish
All commission payable is subject to VAT. The Vat paid to you will be offset against you incur on your expenses and the balance paid to HMRC on a quarterly basis.
Al Limited companies will pay Corporation Tax on their profits
Self-Assessment – For You As A Director
Now that you are a director you will rewarded by extracting your earnings from the company via dividends, these amounts will need to declared on your personal tax return/
As a business owner it is your responsibility to ensure that your keep records of your finances, At Valentis we use cloud-based applications to ensure the timely and accurate recording of all your business transactions.
6. Trackers & Internal Reporting
It is important to keep track of day to day sales and whether you are on the right path to meet your targets.
Working for yourself is a daunting prospect, you may have been a store manager or had staff working under you in the past, but its whole different ball game when it comes to having your name above the door. Most likely situation that occur in the process of running a store we have experience in dealing with it, whether is disgruntled employee or a formulating a bonus scheme, we can help.