Expansion in Peru
Jorge Caballero, General Manager of T-Copia, says that franchise sales will begin in the north. “We know how many stores can be opened in each target city,” says Caballero, who commissioned a market study that spanned from Tumbes to Trujillo to determine the size of each market.
The goal is open 20 locations this year, so each franchisee will be told how many stores it can open and will be given period to do so. Subsequently, T-Copia will expand its franchise to the south and finally to the center and east of the country.
The cost of the franchise will be US $10,000 and US $20,000 for leases of 60 square meters and 100 square meters, respectively. The remaining investment in equipment can be done through leasing. Additionally, T-Copia will charge a royalty ranging from 2 to 4 percent of the annual turnover of the franchisee.
For Caballero, the creation of the franchise and the need to supply them will make his company a logistics operator. Next year T-Copia will install a warehouse, but in the meantime it will work with the logistics operator M&M.
The association between T-Copia and Office 1 will also include the expansion of the U.S. company in Latin America. In addition to Peru, Office 1 also has operations in Mexico and Venezuela. A first experience with the franchise Office 1 T-copia will be in Guadalajara, where a franchisee will implement the T-Copia format at a price of $15,000. He will receive the know-how and will possibly be sold copying equipment directly from the U.S. According to Caballero, it is expected to place at least three franchises in Mexico this year.
The firm expects the franchises will increase revenue from US $9 million in 2009 to US $20 million over the next three years.