Do you have Specsavers on your radar as an entrepreneur as a potential franchise opportunity? They are a massive brand with thousands of stores across Europe and seem like a fantastic opportunity.
However, unfortunately, Specsavers is not a traditional franchise. They have another model which is similar to franchising. In this article, we will deep dive into Specsavers, give you all the information about their partnering model, differences with franchising, what to expect, and all other aspects.
About Specsavers And Specsavers History
Specsavers Optical Group is a multinational optical retail chain with over 2,100 stores across several countries, including Ireland, Canada, and the Nordics. Specsavers offers optometry and optician services as part of their eye care services. In addition, they also sell eyewear such as sunglasses, contact lenses, normal glasses, and hearing aids.
In 2012, the company had 42% of the market share in the United Kingdom in the optician market. The company has never franchised, but they have their own special model called the Joint Venture Model, which focuses on partnership via shareholder method.
Franchise Model Table
| Cost Or Fees | Amount |
|---|---|
| Franchise | Joint Venture Model |
| Franchise-Fee | $10,000 |
| Estimated Outlets | 2,100+ |
How Much Does It Cost To Open A Specsavers Franchise?
Specsavers is not a traditional franchise business. That’s why there is no specific investment range to expect. Each store comes with different specifications, which might bring very different costs.
You only need a loan of just $10,000, which is called a shareholder loan, to get started. This is the investment you require to start the business at the minimum.
Why Don’t Specsavers Offer Franchising?
There is no specific information as to why Specsavers does not offer the traditional franchising method. They have a special method called the joint venture model. This joint venture model comes in two different ways. A or B shareholder option.
A type of shareholder oversees the daily operation of the business, and they keep the profits while enjoying capital growth. B shareholders receive training and continuous support to start the business. In return, Specsavers receive a percentage of the turnover as a management fee. This is more like the traditional franchise method.
Specsavers Joint Venture Requirements
Even though Specsavers only offers the Joint Venture Model, they still have specific requirements for participants of this model. These are not financial requirements like in the franchising model but rather experience requirements.
You need to have experience in retail and retail leadership. You also must possess the right attributes for a Specsavers Joint Partnership. These could include communication skills, management performance, and partnership mindset. You do not need to be an optician or an audiologist.
Profit & Revenue Of Specsavers Franchise
The company had 3.43 billion GBP annual revenue in its latest financial report. This represents a 24% growth from the previous year in annual revenue. The operating net profit was 326 million GBP, which was a decrease of 39% from the previous year’s 453 million GBP.
There is no direct information on the average pay for partners. However, A and B shareholders have different income schemes.
B shareholders have A fixed monthly salary, and A shareholders get an annual profit share of the business based on the percentage they own from the business. Your profit becomes your salary.
Specsavers Franchise Training & Support
You will receive training before becoming an official partner, and the training will continue after you become a partner. You will get access to an account where you will have full access to online Specsavers training materials. These materials include videos, interactive modules, and workshops.
After you become a partner, you will attend a two-day training in the Guernsey office to meet with the support team. You will receive a business mentor and a regional relationship manager to support the operations and development of the partner store.
What Are Some Alternatives To Specsavers?
If you don’t like the Specsavers Joint Venture Model, you can also opt for other optical companies that offer traditional franchising. Here are two of them.
1. My Eyelab
My Eyelab is a new company in the eyecare and optical franchise industry. The company’s special offering is that they focus on technology-based experiences to find your eyewear.
They also have their own special software for optical telehealth to give eye exams remotely to their clients. These telehealth exams can update a prescription and detect eye diseases.
They were founded in 2006 and started franchising in 2016. The company currently has over 150 outlets. The franchise fee for My Eyelab is $34,900, and the expected initial investment is between $299,858 and $601,197. You also need to pay a 4% royalty fee.
2. Sterling Optical
Sterling Optical is a retail optical franchise chain in the United States. They were founded in 1914, and they started to franchise in 1966 when they acquired IPCO, another retail optical company. They currently have over 120 stores across the United States and continue growing via franchising.
The total estimated investment for a Sterling Optical franchise is between $212,000 and $580,000. This includes the $20,000 franchise fee; the royalty fee is 8% of the gross sales.
Entrepreneurs considering a venture into the eye care franchise sector might explore options such as the Pearle Vision franchise.
Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Cohen’s Fashion Optical | $10,000 | 10% | Not Available |
| Pearle Vision | $30,000 | 7% | $639,239-$990,710 |
| Specsavers | $10,000 | NO | NO |
Conclusion
Specsavers is one of the biggest optical retail chains that does not offer franchising but offers a partnership model with the joint venture. You do not need a lot of cash to get started, and you can choose A or B shareholder partnerships, both of which have different ways of working.
If you are based in one of the countries where they operate and have retail management experience, Specsavers could be a great choice. You can also reduce your risk or increase it based on your wants with the two different partnership models they have.
FAQs
Is Specsavers a franchise?
Specsavers is not a franchise. They have a Joint Venture Model, which is like a franchise model but focuses on partnership rather than ownership.
How do I become a Specsavers Joint Venture Partner?
You can apply by completing the Joint Venture form on their website. Once you apply, they will give you a call and start the process.
Who is the owner of Specsavers?
Currently, Doug and Mary Perkins are the owners who are also the founders of the brand. All the partners of individual businesses also own a part of that specific store but not the brand.
Sources
https://join.specsavers.com/uk/explore-careers/partnership-at-specsavers/partnership-faqs/
https://content.specsavers.com/canada/assets/files/specsavers-annual-review-2022.pdf