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Spanish firm Jeff to replicate grant program for Chilean entrepreneurs

InvestChile - April,14,2021

The gym, beauty and laundry services franchise company has some 2,500 stores in 40 countries, including Chile, which has become one of its largest markets with 50 sales outlets.


Spanish firm, Jeff, which started 5 years ago offering an online marketplace for laundry services with delivery, is expanding internationally.

Just a year ago, it redefined its business model and replaced the app through which it connected local laundry services with end customers with a franchise model of home delivery laundry services under the brand Mr. Jeff and also adding the following new franchise options: Beauty Jeff hair salon franchise, Fit Jeff gym franchise and Relax Jeff massage franchise.

“We’ve evolved to having entrepreneurs with their own laundry delivery businesses, who acquire Mr. Jeff’s technologies and logistics so they can manage orders, attract clients and arrange delivery routes,” explains Jeff CMO, Aarón Rodríguez.

To become a Jeff franchisee, entrepreneurs must have the necessary capital to set up the store, pay the rent, personnel and furnishings (to start up the business). The Spanish firm charges a monthly royalty fee of around US$350, enabling the business to use the brand and technologies, including a training platform for employees and delivery.

Investment in Chile

They have used this model to grow their presence in other markets and now have some 2,500 franchisees in 40 countries, including Chile. They started operating in Chile with the support of the Endeavor Catalyst co-investment fund and this has become one of its biggest markets with 50 sales outlets. They recently began operating in the United States.

“We’ve achieved an average of 30% growth in revenue across all markets,” says Rodríguez.

He adds that a few months ago they raised US$21 million in a financing round to improve their product, enter more markets and consolidate the operation of the new verticals in countries where they are already established.

Entrepreneur Grants

In Spain they have a grant program for entrepreneurs interested in opening a franchise, offering them half-price access to stores in premium areas. Rodríguez says they are working to implement this model in Chile and Mexico, which are markets where they have a higher density of sales outlets and brand penetration.

“We create alliances with local investment funds that can invest in acquiring stores located in premium areas – based on foot traffic, quantity and types of business, and the presence of competitors – and through Mr. Jeff rent them to entrepreneurs at half price. We will sign 5-year contracts with investment funds, where we provide loan guarantees,” says CMO Aarón Rodríguez.

Thus, if an entrepreneur needs to invest a total of US$40,000 to open a business, they will only need to provide US$20,000.

So far, they have only launched these grants in Spain, where they have signed an agreement with a fund. “In Chile we’re still looking to make deals with real estate funds to enable us to launch grants very soon. The idea is to expand this model to our other markets and reach a total of 7,500 grant beneficiaries worldwide over the next three years,” says Rodríguez.

To find out more about startups and entrepreneurship in Chile, read the following article.

Source: Diario Financiero


Topics: Global services- Spanish investment



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