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TINO Stone Group begins to franchise its business


The Spanish natural stone textures and accessories firm, which has five of its own showrooms in Spain and five throughout the world, is opening its first franchised showroom in Sanxenxo (Pontevedra).

TINO Stone Group has decided to speed up its expansion using a franchise system. The company, which opened its first natural stone showroom in 2003, has demonstrated the profitability of its business with a network of five of its own showrooms in Spain and five in other countries. These will now be joined by new establishments throughout the world operating under different schemes – franchise, partner showroom, own showroom, master franchise – to reach a total of more than 40 TINO brand establishments by 2010. This May the first franchised TINO showroom will open in Sanxenxo (Pontevedra) and will have exclusive rights to sales throughout Galicia.

TINO Stone Group is a company which originated in Almería. Founded by Antonio Valdés in 1984, it has expanded its natural stone-related business. The firm produces and markets natural stone textures for paving, flooring and wall coverings, as well as other stone accessories such as washbasins and bathtubs, and products like taps and showers.

The company sells its products for large construction projects as well as to individuals. To this end it has a network of showrooms which serve architecture, decoration and construction professionals and end customers, allowing them to discover the full range of TINO products. The company, which exclusively operates close to 20 natural stone quarries all over the world and has two treatment centres in Spain, is completing construction of a treatment centre, logistics centre and offices in China. This will allow it to tackle the Asian market, which will represent approximately 30% of TINO’s sales by 2010.

Expansion under a franchise system, at the heart of TINO’s business

The decision by TINO Stone Group to make use of a franchise system to expand its showroom network is part of a worldwide expansion plan drawn up by the company for the 2003-2010 period. The goal of this plan is to increase sales from 42 million euros in 2006 to some 200 million in 2010, and have a network of 40 showrooms (20 of its own and 20 franchises) by the end of that financial year. The first stage of showroom openings has borne fruits in the form of the current network, made up of five shops in Spain (Madrid, Barcelona, Marbella, Bilbao and Palma de Majorca), and five in other countries (London, Hamburg, Munich, Vienna and Dubai).

The second stage of openings now beginning with the TINO Sanxenxo showroom is a highly profitable alternative for professionals connected to the sector who want to develop their own business with an exclusive product and a commercial formula of proven success. Given the specialization of the natural stone business, TINO seeks a very specific type of franchisee: a professional from the natural stone sector with many years’ experience and local knowledge of the market who, in addition to being an investor, is someone who is absolutely dedicated to the business.

Before reaching the point of moving forward with the launch of the first franchised showroom, TINO effectively tested its franchise project, carrying out a detailed viability study in order to guarantee that it had a concrete business and management model and a profitable and successful business concept. Not for nothing did TINO not start out as a chain of franchises, but as a wholesale natural stone company with fully-owned showrooms, and it has operated exclusively with its own network of showrooms for four year¬s. In this way, through its own showrooms it has confirmed its franchise business system during these years, under the same conditions as it will now begin transferring to the network. Concepts such as investment, profitability, returns and the actual situation of the property market were some of the elements for analysis which TINO will take into consideration when it comes to opening its future franchises.

Strategic location and the very best in interior design

Given the exclusive nature of the various products marketed by TINO, the company seeks strategic locations for its showrooms in the most prestigious areas of each city – the ‘Golden Mile’ in Madrid, Puerto Banús in Marbella, Opera House Square in Vienna, etc. These are always close to other major home design brands. In addition, TINO takes the greatest care with every detail of the architecture, interior design and décor of its own and franchised spaces. In business premises between 250 and 400m2 in size, the TINO showrooms display a wide variety of textures, washbasins, bathtubs and all sorts of accessories in the style of an art gallery, like sculptures, created using natural stone from all over the world.

The approximate average investment for a possible TINO franchise is 400,000 This figure includes the entry fee refurbishment and decoration of the premises and everything necessary to start up the business. However, the franchisee must also have access to a warehouse with a small workshop which will enable the showroom to provide after-sales service at the local level. In addition, TINO franchisees must pay out a royalty of 3% of the total volume of sales and an advertising royalty of 2% of sales. Lastly, the franchisee must invest 1% of sales in advertising, under TINO’s supervision. This will be allocated exclusively to local advertising for the franchised business itself.

Significant training for the franchisee and their professionals and partners

TINO, for its part, will present an initial commercial training programme to the franchisee and those professionals hired by the franchisee, as well as an initial technical training programme. Additionally, the company will provide ongoing training for all natural stone installers the future franchisee works with and will continue to present updated courses to the franchisee to ensure the regular transfer of TINO know-how in the various areas of the business.

TINO showrooms, inspiring spaces for individuals and professionals

The showrooms, designed for architecture and design professionals as well as individuals, are spaces which offer complete service. In this way TINO provides its customers with the materials and details necessary to carry out an entire project, as well as advice and technical support to get the very most out of each of the solutions put forward. TINO showrooms enable the customer to sit down at a work table and actually touch the materials, combining the different colours and textures. In addition, a plasma screen makes it possible to view the results obtained by covering floors and walls with natural stone or incorporating bathtubs, washbasins, staircases or countertops made of this material into homes and public spaces.

Various formulas for expansion: own showrooms, partnerships, franchises and master franchises
As part of the brand’s growth strategy, TINO has designed various formulas which vary according to geographical area. Therefore, TINO will continue opening its own showrooms in those places which are strategic to the brand’s development. In Spain, the company plans to open franchised showrooms in the provinces of Asturias, Cantabria, Girona, Tarragona, Castellón, Alicante, Murcia and Cádiz. For other areas such as Seville, Valencia and Zaragoza, TINO plans to establish itself with partnered showrooms in which the capital is distributed between the franchisee and TINO itself. Lastly, TINO wants to have regional offices – with or without exclusive rights, depending on the area – in the remaining Spanish provinces. For the rest of the world, TINO will consider developing the master franchise formula for a country, with the master franchisee being responsible for building the showroom network and logistics warehouse and its own showrooms.