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Franchises Are A
Natural Fit ‘n Fix for All Those Computers
by Nancy Rathbun
Scott USA Today
Bill Gates' much celebrated goal of “a computer on
every desk” may be coming true faster than we thought, and that reality
is spawning a computer services industry destined to overshadow even the
world's most famous computer gee k. Already, franchise companies are
lining up to help owners buy, fix and learn how to use all that hardware
and software.
How Big Is Big?
Just last year, studies by Ziff-Davis, International
Data Corporation, and USA Today reported that computer and Internet use
had created a $300 billion computer services market, comparable in size
only to the home improvements market. The computer services industry is
experiencing double-digit growth that is projected to continue into the
foreseeable future.
Blame the Internet for much of the expansion. The
number of people going online from U.S. homes went from 88.2 million in
July 2000 to 102.1 million a year later, a 16 percent jump, according to
a Nielsen/Net Ratings August 2001 report. And that was considered a slow
year. Usage increased 41 percent from July 1999 to July 2000.
Don't look for a slowdown any time soon. A January 2002 survey by
the Information Technology Association of America expresses optimism
that growth will continue in the IT Services industry. Seventy-six
percent of the IT Services industry respondents expect to see increased
demand for IT services within the next three months, while 88 percent
believe that the demand will improve within the next year.
Franchises Build on Computer Growth
All this growth hasn't escaped entrepreneurial
attention, especially among franchise investors. When Mark Williams
decided to parlay his eight years as a computer support engineer into
his own business, he looked to the franchise market.
“It [computer services] is the most current and
marketable skill that I have,” says the classical violinist turned
computer pro. “I am motivated by any type of computer technology. For
me, it was a natural fit as a business."
Williams says he has been doing due diligence and can
easily recite the investment pros and cons of the industry's top
franchisors.
The Doctor Prescribes A Name Change
One
franchise that Williams considered was Expetec. The Expetec system began
franchising in 1996 under the name Computer Doctor, specializing in
fixing PCs. As their technology services expanded to more than
computer repair, the franchisor began a nationwide rollout of its new
name, Expetec Technology Services. Today the franchise system provides
services on a wide variety of technology equipment throughout the United
States and Mexico. Expetec also services more than 40 national accounts
and provides warranty work for several major manufacturers with its more
than 100 locations that are either operating or in development.
“They strike me as being fairly balanced,” says
Williams. “They are not totally tech-oriented and seem to have a
little more business flair.”
Mom Knows Best?
Computer MOMS, an
acronym for mentors on the move," bills itself as the first nationally
franchised computer training service, offering one-on-one instruction in
the home or office. Typical courses cover a range of topics from
Windows basics to surfing the Internet to QuickBooks, Excel and other
advanced software programs. Customers range from the home user to the
small business owner. Clients can select training services from a
variety of special packages or opt for unique mentoring and support
services on a weekly or bi-monthly basis. In addition, Computer MOMS
offers shopping assistance and help with such personal technology
devices as digital cameras.
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The Renaissance Returns
If buyers are in the market for used computers,
Computer Renaissance has them covered. Founded in 1988, this franchise
thrives on three distinct offerings: used or refurbished computer
products; do-it-yourself components; and service. National leasing
organizations and major manufactures are turning to Computer
Renaissance as a national distribution outlet. Obtaining products
at substantially less than the cost of new computers, Computer
Renaissance franchisees hope to garner dramatically higher profit
margins, while consumers benefit from brand-name, factory refurbished
equipment at a fraction of the retail cost.
“We are the only chain to focus on refurbished
computers and one-on-one service,” says Jack Hollis, an ambitious
Computer Renaissance owner. “The closest we have to a
direct competitor is the Internet, where people can go through online
auctions to find a used product. However, with that option, the
customer blindly buys from a stranger and without the
confidence of buying from a chain with a nationwide warranty
program.”
Do Geeks Have An Edge?
Walter Ewell is a franchise wizard and a key player in success stories
like Jackson Hewitt, LibertyTax and Econo Lodge. Richard Cole is a
turnaround guru whose specialty is reviving ailing advertising and
insurance ventures. Michael Vanderslice ran a nonprofit. And Tim Holadia
was an inspector for a vacuum pump company for seven years.
Now the four head up Norfolk based Geeks on Call, a
national computer support services franchise. Last April, Geeks
transformed from a local franchise company that predicted it would open
six operations in 2001. One month into 2002, Geeks has already launched
its 32nd franchise and estimates there will be 100 franchises opening
across the country in 2002.
Unlike most computer repair operations, Geeks isn't
built with bricks and mortar. The consumer typically hauls a
malfunctioning unit into a shop, where it often stays for up to a week.
Today's consumer wants instant gratification because, for business
owners, every day without the computer can translate to dollars lost.
“The frustration that you feel if you've ever taken a computer to the
shop is what drove our business model," says Cole.
House calls make up 60 percent of the company's
business; visits to small businesses account for the other 40 percent.
Computers for the Older U
While most people associate computer geeks with
Generation X, Computer U Learning Centers has built a franchise business
teaching seniors how to send email and use programs like Quicken to
manage their finances.
It's a growing market some might not realize
exists-more older people are buying computers, logging on, and surfing
the Internet. In 2000, the U.S. Department of Commerce published Falling
Through the Net. In its report on computer access and the Internet, they
found “age is becoming less determinative of computer ownership."
In 1984, only 2.5 percent of adults older than age 55
had a computer. The 35-to-44 age group had six times as many computers.
That ratio changed in 1998. Among the older age bracket, 25.8 percent of
them had computers and 54.9 of those in the younger bracket had
computers, according to an article in the Desert Sun.
Show Me How
Analysts predict expansion in the computer training
industry from $19 billion in 1999 to $41 billion by 2005. Tapping into
that market, New Horizons Computer Learning Centers now bills itself as
the largest independent IT training company worldwide. The franchisor
says that its 220 centers in 36 countries offer more courses, at more
times, in more locations than any other company in the computer training
industry.
Even with the
tremendous growth of computer sales, maintenance and training
franchisors, the potential exists for much more as we move toward the
vision of a computer on every desk.
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HOT
FRANCHISE CONCEPTS CATER TO CONSUMERS
