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Dutch Profile Switches to Hard Franchise

Industry- & Retail Organizations

BREDA, The Netherlands (Jan 26) –Birecto recently introduced the hard franchise version of its Profile shop formula. The Dutch retail organization is the world’s first to operate a hard franchise concept in the bike sector. It is offering the new concept to its current 275 Profile members of which the first 8 already made the […]

BREDA, The Netherlands (Jan 26) –Birecto recently introduced the hard franchise version of its Profile shop formula. The Dutch retail organization is the world’s first to operate a hard franchise concept in the bike sector. It is offering the new concept to its current 275 Profile members of which the first 8 already made the switch to the much stricter formula.
“Yes, it’s hard franchising with all that goes with it,” says Biretco CEO Ron te Riele on questions about the new concept. He continues: “This means that there are rules and obligations for the dealer on the in and exterior of his shop as well as on his shop-collection. 80% of that collection is fixed and will be catered for by strict rules for deliveries by 14 core suppliers that are selected now.”
Reason for the introduction of the hard franchise version of Profile, according to the Biretco CEO, is the fact that bike retailing in Holland and Belgium suffered during the last few years. “And with Basel 2 approaching it doesn’t look any better in the near future,” continues Te Riele. “The only way to achieve better results for bike dealers at this moment is through chain integration or by an integrated dealer-supplier market approach. Hard franchising enables such a approach”.
Profile’s hard franchising concept recently started with the approval on the Birectco franchise contracts by the Dutch Franchise Association. As said, already 7 Dutch and 1 Belgian Profile member switched to the franchise version. Biretco expects that the majority of its Profile members will eventually switch to the franchise concept. In the longer term the retail organisation will also roll it out in Germany. (JO)

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