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A frAnchise OppOrtunity

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Page 1: A fAnchi e OppO ni - Clothes Aidclothesaid.co.uk/wp-content/uploads/2017/08/Clothes-AID-Brochure.… · mavericks or people who donAt like systems. WeAve made the mistakes and can

A f r A n c h i s e O p p O r t u n i t y

Page 2: A fAnchi e OppO ni - Clothes Aidclothesaid.co.uk/wp-content/uploads/2017/08/Clothes-AID-Brochure.… · mavericks or people who donAt like systems. WeAve made the mistakes and can

We’rejump(er)ingfor you!

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Hello, we’re Clothes Aid and we’re delighted that you want to find

out more about our organisation and how our franchise

operates. Within the next few pages you will understand why

we’re the UK’s leading Clothes collection company to start to

decide if this could be part of your future.

We’re looking for individuals to join us who share our commitment to

providing a high quality professional service to the charity partners that we

work with and to the householders who donate their clothing to support

their work.

You don’t need previous experience in the Charity Bag collection sector to become a

franchisee with Clothes Aid (but if you’ve got it great). We have a comprehensive induction

training programme and a very robust model to follow. You do need to be fit and healthy and

happy to work outdoors. You will need a van for the business and we can help you to

arrange that through one of our preferred suppliers.

As a franchisee with Clothes Aid you can either be a single van franchisee (where you carry

out the bag distribution and collection work with a small team) or you can build the business

into a multi-van franchise (operating out of an industrial unit) where you eventually take on

the role of the business manager. Both options have significant financial potential in relation

to the income and profit that the business can generate and the money that we raise to

support our charity partners.

We really want you to understand our business so can we also suggest you visit our website

at www.ClothesAid.co.uk for further information once you have read this brochure. If you’d

like to progress your interest in a franchise there is a short questionnaire online or you can

complete the PDF version of the questionnaire sent to you with this brochure and we’ll get

back to you to progress.

Best regards

Laurie Hollande

Founder oF CLotHes Aid

A great business withhuge social benefits

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At Clothes Aid we help to do good things for great UK charities and our

planet. We work with some of the UKs leading charities who can trust us

to recycle their donors preloved frocks, tops, sports kits, and tutus into

charitable funds. Raising funds for charity and recycling is at the heart of

what we do. Last year the great British public helped us raise over £1.5

million. That’s a lot of charity bags to collect!!

Clothes Aid is the UK’s leading collector of used clothing. Since 1996 we have

raised over £10 million for our charity partners. As the doorstep collection

market has grown and developed we have expanded our operations. Clothes

Aid now has contracts with many national and regional charities who rely

upon us for the support that we give to their great work.

We are the largest contributor of funds for some of our charities and we offer

charity partners either national or regional coverage, depending upon their r

area of operations. Details of the scope of our operations on behalf of the

individual charities that we work with currently can be accessed via our

website www.clothesaid.co.uk

As fashion has become more and more disposable, households in the UK

now generate so much surplus clothing that it’s impossible for charities to

take it all into their local shops and so they work with Clothes Aid to raise

funds for them.

“WRAP (Waste Resources Action Programme) estimate that between 1.1 and

1.4 million tonnes of textiles are thrown away each year in the UK. Of this,

about 430,000 tonnes are good quality clothing items that could be re-used.

That’s why we believe there is room for both charity shops and clothing

collections. Both raise money for charities whilst helping to reduce our

environmental impact at the same time. Clothes Aid collects many 1,000s of

tonnes of clothing a year and converts this into cash for UK charities.”

Alan Wheeler

textiLe reCyCLing AssoCiAtion

We are

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Our franchise offers the opportunity to build

your own business backed up with the help

and support of an experienced and substantial

organisation. Not only can your business

produce good income and profits, but you will

be part of a unique network that has huge

social benefits.

Our model is very simply - our franchisees run a

team or teams carrying out the distribution and

collection of charity bags to targeted areas and

households within their franchise area. Each team

needs a van with the capacity to carry at least one

tonne of clothing (high top, long wheelbase

‘Transit’ type panel van).

Initially we deliver to every house within the area

on a 3-4 week cycle but as we become more

aware of who the regular donors are for each

charity we can then become more selective about

the bag distribution whilst still maintaining the

response for donations. This system of data

management enables our franchisees to reduce

their distribution costs and improve profitability on

an ongoing basis.

We are expanding the number of collection teams

that we work with and we can only appoint a

limited number of franchisees in any area so the

opportunities to work with us aren’t open ended.

Once you’ve read the information in this brochure

if you think that you can do what we do then

please complete the short questionnaire that’s

attached and return it to us and we’ll contact you

for an initial informal discussion.

• Comprehensive start-up package including corporate clothing and initial supply of charity bags

• Full use of the Clothes Aid and relevant charity partners branded charity bag collection materials

in your franchise area

• Advice and support on pre-trading requirements - sourcing a vehicle, recruiting and training

teams, arranging licenses etc.

• A comprehensive induction training programme for you and your team

• Initial ‘on-site’ support during the early stages by operational manager

• Regular on-site visits to provide ongoing help and business advice

• Central purchasing for specified items (bags and corporate clothing)

• License applications on behalf of franchisee to enable you to trade legally and meet currently

regulatory standards

• Regular meetings with other franchisees

• Central warehouses to store the collected clothing

• Weekly secure payment for clothing collected

our Franchise opportunity

Franchise support Clothes Aid has developed a unique operational model

around the collection of donated used clothing.

We have been franchising for over twenty years and still

have some franchisees that joined us twenty years ago that

are working with us today. As an experienced franchisor, we

support our franchisees with:

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MondAy tuesdAy WednesdAy tH

MondAy tuesdAy WednesdAy tHursdA

Very simply, our franchisees arrange the

distribution of charity bags and the subsequent

collection of clothing donated from households

in their area. The clothing is bought by weight

from our franchisees and sold to third parties,

to generate an income with a proportion of the

funds raised going to the nominated charities.

Each collection needs either a

household collection license for

the individual charity or a

national exemption certificate.

This is part of our role; every

year we obtain hundreds of licenses

from local authorities across the UK on behalf of

our franchisees.

Distribution is the key to our business. If the bags

don’t go out the collections don’t come in. Each

franchisee has one or more distribution teams to

cover their local area intensively. A small team of

three people can distribute twelve to fifteen

thousand charity bags per week. From this they

expect to pick up around three tonnes of clothing.

Some franchisees have more than one team but

it’s important that you start with one and get to

know the business before potentially expanding

into a multi van operation.

Franchisees must be very well organised and have

a reliable workforce. We put a great deal of time

and effort into identifying the best ways to recruit

and retain reliable distribution teams and

supporting our franchisees in this process.

Franchisees can have one or more teams and each

team will consist of 2, 3 or 4 people depending

upon the area that they are going to cover.

All Clothes Aid team members are required to wear

identification badges and wear our smart

corporate uniform featuring the Clothes Aid logo.

It’s part of our operational model and a

requirement of our charity contracts so that donors

know who we are and that their clothing is helping

to support the charities that we represent.

Two to three days after the bags have been

distributed, the van returns to the same area and

collects bags of donated clothing from the

households. The franchisee takes the bags to a

storage unit which is located within the franchise

area. Sometimes two collections the same van

makes a day. When a container load of clothing

bags has been collected, we arrange transport to

pick it up directly from the unit. Payment for the

clothing collected is made directly into the

franchisee’s bank account within five working

days. Most franchisees are producing sufficient

tonnage to require a weekly collection. As a new

franchisee, you can be generating income from

week two or three when you start your business so

the cashflow is good.

MondAy tuesdAy WednesdAy tHursdAy FridAy

A week in the life of aClothes Aid Franchisee

MONDAY

MONDAYMONDAY

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ursdAy FridAy

Ay FridAy

We hold memberships with the following industry

bodies:

• Institute of Fundraising (IoF)

• Fundraising Standards Board (FRSB)

• London Community Recycling Network

• London Textile Forum

• Sustainable Clothing Action Plan (SCAP)

Steering Group

• Signatory to SCAP 2020 Commitment

• Textile Recycling Association

We keep good company by working side by side with

some of the UK’s leading authorities in fundraising

and textile recycling. We spend deserved time

lobbying for better standards in the collection

industry because we feel it is integral part of our

protecting our partnerships with charities and the

public. As a result, we were invited to sit on the IoF

Code of Fundraising Practice working group.

“The Institute of Fundraising is delighted to work with

charities and fundraising organisations, like Clothes

Aid, and recognises the value all legitimate forms of

fundraising brings to fundraisers in generating

income. Fundraisers are the experts in working with

donors and their experiences clearly show that

different methods of giving preferred by different

people and that different forms of fundraising work

for different organisations.”

Ceri edwards

direCtor oF PoLiCy And CoMMuniCAtions

institute oF FundrAising

our industryComrades

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What are we looking for from you?To build a successful Clothes Aid Franchise, you must be willing and able to work hard and get actively

involved in the business. Once established, you can employ team leaders to run the distribution and

collection teams but in the beginning there is no substitute for leading from the front.

You’ll need to learn the ropes as far as distributing and collecting bags is concerned, so you’ll also need to be

reasonably fit. You will also need to be able to be very organised, or have an organised

partner who can be involved actively in the business. Our business

system uses simple software packages so you (or your

partner) will need to have reasonable IT skills.

To maximise your tonnage returns you must operate the

business according to our model. We don’t want

mavericks or people who don’t like systems. We’ve made

the mistakes and can train and support you so that you

don’t make them all again.

We’re only interested in taking on franchisees who are entirely

committed to building a successful business and with whom

we can work closely to make this happen.

training All new franchisees attend one-week’s

induction training at our national

training facility in Blackburn,

Lancashire. This consists of class

room and field based training with an

assessment at the end. Each new

franchisee will also receive a high

level of ongoing operational training

and support over the first 6 months of

joining Clothes Aid.

Please note that all franchisees are

selected carefully and must also vet

any staff that work for them as part of

their team. We are the donor face of

the charities that we work with and we

must support them and reflect their

values at all times.

FranchiseAreasOur experience shows that a viable franchise

area contains around 50-60,00 households. A

franchisee will work this area over a one-month

period, visiting the same house three times

within the same month using a different charity

bag from our portfolio of well-known British

charities each time to avoid donor fatigue. Areas

can be covered up to 12 times per year for each

charity, depending upon location, tonnage,

quality of the clothing and the availability of the

local licenses. Once established in an area,

franchisees find that householders will wait for

their Clothes Aid charity bags to arrive so that

they can support the partner charities.

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Financial Model

Like all businesses, our franchises vary in their income and profit levels.

Different franchisees produce different tonnages and have different overhead

structures and personal income requirements. During the recruitment

process, we will share our financial model with you (subject to you signing a

confidentiality undertaking) to ensure that you understand the financial

potential of the business. However, these figures will give you an indication

of projected earnings:

yeAr 1 Turnover - Approx £95K

Pre-tax net trading profit - £34K

(Approx. £700 per week based on a 48-week operating year)

yeAr 2 Turnover - Approx - £99K

Pre-tax net trading profit - £45K

(Approx. £950 per week based on a 48-week operating year)

yeAr 3Turnover - Approx £111K

Pre-tax net trading profit - £56K

(Approx. £1150 per week based on a 48-week operating year)

The Clothes Aid franchise offers entrepreneurial-minded

individuals the opportunity to achieve a high level of personal

income leading to financial security and independence whilst

helping to support some of the leading charities in the UK.

initial start-up Costs The initial start-up costs and working capital requirement for the business is around

£11,200 + VAT. This value includes the cost of a second-hand van at £5,000 - if you’ve got

a suitable van that can be used that’s fine and your start-up costs will be around £6200 +

VAT. All franchisees must be registered for VAT so this can be claimed back.

The costs of signwriting the van, uniforms for a 3-person distribution, team, induction

training and initial supply of bags are included in the franchise fee.

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If you would like to find out more,

please complete and return the

attached questionnaire and return it to

[email protected]

Once we’ve received your

questionnaire we’ll contact you for an

initial telephone discussion about the

business and then if both of us want

to proceed we’ll arrange a meeting at a

location convenient to both of us.

We want you to fully understand

what’s involved in the business before

you make any decisions so we’ll give

you all the information that you need

to decide if this is the right business

for you. We’ll discuss your aims and

objectives and your personal and

financial circumstances.

Thank you for your interest in the

Clothes Aid franchise and we look

forward to hearing from you again.

What’snext?

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nAtionAL CHArities

NSPCC

Make-A-Wish Foundation UKMake-A-Wish has one very simple objective – to grant magical wishes to

children and young people fighting life-threatening illnesses. The charity was

founded in the UK in 1986 and since then, it has granted over 4,700 wishes.

Cancer Support UK

regionAL CHArities

Birmingham Children’s Hospital CharitiesBirmingham Children’s Hospital is one of the best children’s hospitals in the

UK, treating children with rare, complex, life threatening conditions. The

hospital’s pediatric specialists rank amongst the most highly regarded in the

world, delivering the very highest standards of treatment, care and research

every day.

Manchester Children’s Hospital

CHAS (Scotland)

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e: [email protected]

www.ClothesAid.co.uk