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Interview with Mister Johan Englund - Managing Partner, Mr CAP, Romania

What plans of development do you have for 2011? How about plans for long term?

During our first year in Romania the market and the customers has really responded above our expectations and our plans for 2011 is intact from the start. We are looking to expand with about 2-5 shops in Romania during 2011. There is a great market for Mr CAP in Romania and even though the future is hard to predict our expansion plans is to open 2-5 shops per year for the next coming years.

What strategy do you use during this period of crisis to attract franchisers?

The Mr CAP concept, products and services has been proven to be successful for over 20 years in several countries with different market conditions and we have gone through many economical crisis during this time. We know that our services are highly appreciated among our customers and that there is a need for them regardless of an economic upturn or downturn. However, in an economic downturn, like the one we see in Romania right now, we see many more clients coming in to treat their cars instead of buying a new one and in an economic upturn we see more people coming in with their new cars.

What places do you have in mind for new units’ openings ?

We are generally targeting any city with more than 30,000 inhabitants but since we are new on the Romanian market we target the larger cities like Brasov, Cluj, Timisoara, Constanta and of course Bucharest.

What opportunities do you offer to franchisers during this crisis?

The Mr CAP model is a very attractive one since it usually generate a fast return on the investment compared to other models which requires a larger investment and therefore also a longer time for the return. Furthermore, The Mr CAP model is also not as sensitive to an economic crisis since we can use the crisis as an advantage by promoting the fact that people can treat their old cars so they look more or less new instead of buying a new one.

How much time can a franchiser regain his investments in?

It mainly depends on the size of the station and if the franchiser already have a space or if he or she needs to build one. A standard Mr CAP shop with 300 square meter usually generates around 240,000 Euros / year in sales with a 45-50% operational profit margin. From there it all depends on rent conditions or investment costs to construct the station.

What forms of promotion do you use to attract new partners of franchise?

Most request comes from clients that has made a treatment with us or from word of mouth from these clients. In addition to this many people finds us through our website and of course we get help from Thinkbig.

When was opened the first unit of your brand?

In october 2009.

How many franchises did you give until now in Romania?

As planned one in Bucharest.

Please tell us more about the support that you offer to franchisers.

We offer a complete package including reviewing premises, setting up the shop, education of the technicians, a complete marketing plan and a close partnership from the first day. When the shop is up and running we also provide ongoing operational, technical and marketing support.

How much is the franchise tax, royalty and global investment for your franchise?

This depends on a number of things but mostly by the size for area of exclusivity.

What else can you tell us about your franchise?

Mr CAP is now in 14 markets with the latest shop opened in Dubai. The founders is still the owners which makes a strong foundation of experience and knowledge. Owning a Mr CAP shop is simply put a great investment with a strong and proven business concept.