First Choice launches franchise scheme

FIRST Choice is to target independent agents as franchise partners.

The group wants 200 independents to join its high-street network and is offering marketing, IT, training, finance and commercial benefits.

But it is demanding agencies terminate consortium membership as part of the deal.

If successful, the move would increase the group’s high-street presence to 500 shops.

The franchise partners would be expected to double their First Choice business.

However, consortia chiefs poured cold water on the move. Midconsort chief executive Charles Eftichiou said: “Independents need to look across the whole spectrum of suppliers. If they concentrated on selling First Choice, it would go against the grain.”

He said the arrangement would amount to commercial suicide as independents would be penalised by other operators for supporting First Choice.

Advantage managing director John McEwan said: “This is not a threat. I’d be surprised if there is a big take-up. Independents like being in consortia. Committing to First Choice could undermine their business.”

But First Choice has already held talks with some agents and hopes the first will rebrand under its banner by November.

Shops will have to pay for the rebranding, but will receive benefits in return. Retail trading director Cheryl Powell said: “There’s no point agents talking to us if they don’t want to build up their First Choice business.”

Thomson is still pursuing franchising, but Thomas Cook and Going Places said they have no similar plans.