With new funding, Velofix expands with company-owned vehicles, Austin workplace
VANCOUVER, British Columbia (BRAIN) — With a vast new investment from a clean technology fund, cell service franchiser Velofix is leap-beginning its growth with plans to add 30 company-owned vans within the U.S. And Canada inside the subsequent one year.
The corporation-owned vehicles might be similarly to the ones owned by Velofix franchisees, who currently perform vehicles in one hundred twenty territories in North America.
Velofix has employed retail enterprise veteran and creator Donny Perry, who will open the U.S. Headquarters in Austin, Texas, to guide the company vehicles and franchisee operations. In the approaching year, Velofix will become a far larger operation, with plans to add 20 new personnel in Austin and at its offices in Vancouver, plus 50-60 new mechanics to function the company trucks, CEO and co-founder Chris Guillemet stated. Besides the brand new employees and centers, the privately held agency will, for the first time in years, personal vehicles and stock.
“It’s a shift for sure,” Guillemet told BRAIN. “But whilst we released, we did very own vans corporately. We’ve performed it before.”
He emphasised that Velofix will maintain to promote and assist franchises however stated corporate-owned locations — which can be not unusual inside the franchise enterprise — will assist Velofix extend its footprint, including logo visibility and buying strength.
Last mile achievement is the huge opportunity
An improved presence in key markets throughout the continent will also make Velofix more appealing to bike brands, mainly customer-direct manufacturers seeking out assembly partners, delivery and assurance service. Contracts with the ones brands give Velofix operators an advantage over impartial mobile operators and offer the corporation a big promoting factor when drawing close capacity franchise owners.
“The extra vans on the street, the more dots at the maps, the extra appealing we’re to bike producers,” Guillemet stated.
He said Velofix receives 30-40 requests a month from bike brands seeking out “ultimate-mile” achievement.
Velofix presently has varying agreements with extra than 20 manufacturers to offer delivery and assembly and/or to offer motorcycle income or after-sale assembly and assurance provider. The agency is one of the delivery alternatives offered by Canyon Bicycles and Amazon, notably. VeloFix currently hired former FSA supervisor Cameron Simpson to control vendor relations and the VeloFix Direct software.
Guillemet said Velofix is underrepresented in several main markets. It has simplest one franchisee working inside the Chicago region, for example, and one in the Boston area. Both markets could guide greater vehicles.
“There is a false impression that certain territories are bought and long past — it is been one of our demanding situations,” he said.
While Velofix will honor exceptional territories it has offered to franchisees, he stated company vans are probable to be introduced in a few large regions in which franchisees perform.
Sales boom slows
In current years, Velofix’s new franchise income increase has slowed. It delivered 40 new U.S. Franchises in 2016, 37 in 2017 and 26 last 12 months, in line with its March 2019 U.S. Franchise Disclosure Document. In every yr, that wide variety became beneath public projections.
Velofix additionally ended preceding plans to expand into Europe in the brief term, although Guillemet said international growth stays a long-time period goal.
The March disclosure, available from the California Department of Business Oversight, changed into published at the Ashburn Bicycle Repair internet site. Operated by way of Rob Crangle, Ashburn is an independent cellular motorbike repair operation in Virginia. On the site, Crangle speculates approximately Velofix’s company monetary viability and the performance of its franchisees. He tries to compare Velofix franchise costs and blessings to alternatives.
“Although I’ve were given a critical eye on Velofix, I’m additionally a massive fan,” Crangle instructed BRAIN. “They’ve finished a ton of proper for the cell bike store enterprise (if I can call it that). We ‘independents,’ I trust, have benefited from Velofix and all of their marketing and outreach. I desire they live to tell the tale and prosper. Likewise, in the event that they fail, that might placed a piece of a stain at the relaxation folks.”
Guillemet said on a corporate level, Velofix is financially wholesome; including that Velofix become not looking for additional out of doors investment whilst MKB Partners Fund LP, a Montreal-primarily based smooth generation fund, approached. The length of the funding, announced in May, changed into no longer disclosed.