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Thursday September 2nd 2010


  Franchising
Case Studies

CONSUMER DEMAND DRIVES FRANCHISE FORWARD

Leading automotive industry supplier, The Pentagon Group, has begun a dynamic campaign to recruit more franchisees across the UK in response to an escalating demand from an increasingly safety-conscious motoring public for its security and safety laminate and solar tint products.

The quest to combat rising car-related crimes and the need to improve vehicle safety have created a boom for Pentagon's award-winning product called SupaGlass, an incredibly strong polyester-based laminate bonded to the inside of car windows. It can withstand all types of violent impact and is designed to hold broken glass fragments in place. It is a cost-effective way of making car glass safer in accidents and more resistant to smash and grab crime and even bomb blasts.

Pentagon supplies this innovative product to all sectors of the automotive industry, including leading manufacturers, dealers and fleet users such as police forces and fire brigades. Recently Pentagon won contracts with Land Rover for the Range Rover Autobiography and with Citroen for its Xsara Enterprise van. Pentagon's customers also include the popular TV programmes "Big Brother", "Fame Academy" and "The Salon".

One of Pentagon's many accolades is its recognition by Thatcham, the motor insurance repair research centre that was set up the British insurance industry in l969, which awarded SupaGlass the coveted Thatcham Q Vehicle Security listing. The market leader in Europe for applying protective film on vehicle glass, Pentagon has 17 franchisees in the UK with licensees in France, Ireland and the USA. The recent AIM flotation raised £750,000 to invest in additional equipment and more people to develop and manage the growing franchise network.

Geoff Russell, managing director, pioneered vehicle window film applications in the UK and has some 25 years' experience in this field. He spent three years and almost half a million pounds developing SupaGlass.

The company is also well known for its automotive window tints, ranging from a light grey to almost black, which reduce glare from the sun and protect against damaging UV rays. Solar tints also improve security and are now a "must-have" for many celebrities, media and sports stars, politicians and diplomats who want to travel in privacy. It is rumoured that people like Robbie Williams, Posh and Becks, Mohammed Al-Fayed and Tony Blair all use Pentagon.

This is a franchise for people who enjoy cars, have strong business development and man management skills, as well as experience of sales and marketing. Franchisees must also understand technical issues because Pentagon is a "hands on" business.

Geoff Russell explains: "We believe that there are fantastic opportunities in this sector, especially since SupaGlass leads the field and has attracted so much media attention. We are looking for special people with a range of skills and experience but also recognise that it is rare to find all these in one person. We can often introduce a strong candidate to another one from a different discipline so that they can capitalise on their combined strengths and abilities.

"An example of the ideal partnership and how successful it can be is the franchise in Romsey, whose partners were formerly part of an international investments team at Price Waterhouse Coopers and a Pentagon employee who trained our franchisees," Geoff continued.

A franchise costs £20,000, plus £15,000 to cover the comprehensive training programme, which lasts up to two months. A further £25,000 - £30,000 may be required for stock, tools and equipment, working capital, painting and fitting out a workshop. The amount depends on location, the type of building and the level of work required to convert it into suitable premises.

Pentagon is being advised on its franchise development programme by Horwath Franchising, one of the UK's leading franchise consultancies which is part of an international group of specialist consultancies and lawyers with 415 offices in some 90 countries.

Horwath's managing director, Brian Duckett, said: "There is enormous potential in this sector and I believe that the Pentagon franchise has a great future as more and more people become aware of the benefits and advantages of its revolutionary products."

Geoff Russell plans significant expansion to meet an ever-increasing demand, aiming to achieve a £20 million turnover within the next five years and welcomes enquiries from people all over the UK.

More information about a Pentagon franchise is available by ringing the company's West London headquarters on 0208 749 9749 or from the website at www.PentagonGlassTech.com.

Company background note

The Pentagon Group was set up in 1992 by Geoff Russell and Peter Mukherjee with the specific intention of becoming the country's first nationally franchised network specialising in vehicle film applications.

Geoff Russell pioneered vehicle film applications in the UK and has some 25 years' experience in this field. He was a founder of Australia's market-leader window film franchise operation. He has developed window film businesses and trained related franchisees in New Zealand, Spain, Germany and Holland.

Geoff is the managing director of the Pentagon Group, head of franchise development and training and, also, overall operations. He runs the company's research and development programme and led the three year development of SupaGlass from initial concept to market.

Co-directors are David Thomas, the chairman who was formerly a senior board member of Procter & Gamble; Ron Bambra, former group managing director of Kwik-Fit Fleet; and Danielle Stewart, a partner in Warrener Stewart, the top London accountants advising owner-managed businesses.

Co-founder Peter Mukherjee, managing director of the Group until the end of 2000, continues to be involved in the business as a consultant. He also chairs the Automotive Film Group of the Glass and Glazing Federation.

Pentagon's achievements include an impressive list of accreditations and awards: ISO9002 certification; the ThatchamQ listing for SupaGlass; Vehicle Safety Company of the Year; Land Rover Supplier Quality award; UK Motor Sports Association Product Endorsement. Pentagon is a member of the Glass and Glazing Federation and the Association of Police and Public Security Suppliers.

FACTS AND STATS

  • Almost one fifth of all crime is vehicle- related*· Almost one fifth of all crime is vehicle- related*
  • Half the thefts from cars are through smashed side windows*
  • There were around 1.5 million car-related crimes in 2001/2 - one every 21 seconds*
  • "Thefts from vehicles account for nearly 2/3 of all vehicle crime", Home Secretary, October 2000
  • Vehicle related crime costs insurance companies around £3 billion annually
  • Smash and grabs are usually opportunistic
  • New and worrying trends include:
    - the growth of car-jacking, especially involving luxury cars
    - accident and injury from heavy objects dropped from motorway bridges on cars passing underneath
  • With normal glass it takes a single blow and just a couple of seconds to smash a side window
  • A sustained attack is required even to crack SupaGlass which is usually long enough for the criminal to abandon the break in
  • A government committee called VCRAT )Vehicle Crime Reduction Action Team) was established in September 1998, charged with reducing vehicle crime by 30 per cent over a five year period. It has published recommendations to achieve this goal, including one regarding the improvement of vehicle perimeter security, ie door locks and glazing
  • The UK's Health and Safety Executive is considering extending the definition of the workplace with all its associated safety regulations to include vehicles used for work. This has considerable implications for employers and their responsibilities to employees
  • In 2002, the RAC Foundation recommended that motorists should consider having protective film professionally applied as a way of helping to protect their cars from smash and grab attacks
  • * Statistics taken from Crime in England & Wales 2001/2 Report (July 2002)


    Supaglass being fitted by a Pentagon technician.


    Geoff Russell and David Thomas.


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