Best-known for its presence in the UK and the Netherlands, fast-fit specialist Kwik Fit is planning to use the franchise route to expand into other European markets with the aim of having over 500 additional outlets in place by 2019. Both its British and Dutch operations are wholly owned, with over 600 and some 200 branches respectively.

Its ambition is to establish a master franchisee for part or all of each target country, which will in turn appoint sub-franchisees to run local centres.

Countries being targeted include Poland, the Czech Republic, Slovakia, Austria, Norway, Sweden, Finland and Slovenia, with Denmark, Belgium, Luxembourg, Romania and Croatia in the pipeline.

All these countries are relatively small markets and at least have the virtue that they are manageable. What about bigger ones such as France and Germany?

Kwik Fit has already been in both, admits UK fleet director, Peter Lambert; and the experience was not a happy one.

‘We sold our Pitstop operation in Germany back in 2009 because we found that customers went to franchised dealers for their tyres,’ he says. Its Speedy operation in France was not a success either, because of the fragmented nature of the aftermarket and the strong loyalty shown by customers to small local garages, he adds.

‘Every village in France still has a Renault dealer,’ Lambert remarks.

Kwik Fit’s experience has not put it off tackling larger and more challenging new markets however, he says. ‘We are looking at appointing a Master franchisee for Russia but it’s early days,’ he comments.

In the meantime Kwik Fit’s branches in the Netherlands are benefiting from the established Dutch practice of switching to winter tyres before winter sets in then back to summer tyres in the spring ready for the holiday months. In the UK it is rolling out 25 centres upgraded to the new "Plus' standard, all of which should be trading by the end of the year.

‘We’re hoping to have 150 Kwik Fit Plus sites in place nationwide by the end of 2015,’ says Lambert.

"Plus" branches are geared up to handle quite complex mechanical and electrical repairs, using what Kwik-Fit refers to as slow-fit technicians, as well as the more usual activities of fitting tyres and replacing batteries.

The company also has an operation in Hungary under the Speedy banner with a dozen outlets which were being switched to the Kwik Fit brand at the time of writing. Despite tough economic conditions, Speedy Hungary has seen turnover and pre-tax profits increase every year for the past five years, says Kwik Fit.

Kwik Fit’s acquisition by Japan’s Itochu Corporation in July 2011 for €740 million meant that it became part of a vast, multi-faceted, trading conglomerate with other automotive interests. They include working closely with Suzuki on a variety of projects in Hungary.

Over half the Isuzu commercial vehicles sold worldwide are handled by Itochu and it has stakes in Isuzu distributors in the USA, Vietnam and Turkey. It holds a 25% share in Isuzu Motors Sales in Japan, which has just set up an auto leasing operation under the Isuzu Leasing Services banner.

Itochu has also invested in Century Tokyo Leasing Corporation in Japan as well as in brake manufacturer Akebono and in Yanase: a specialist importer of luxury cars.