123 Refills is an international concept specialized in the imaging consumables industry. The brand started in 2002 online, selling ink and toner refills and remanufactured cartridges to consumers in the USA and abroad. The company developed a brick and mortar concept in 2004 to refill customers cartridges in store, and the ensuing 123 Refills franchise concept was launched in Europe in 2005. The company has taken careful steps to ensure that its growth is controllable and that territories and franchisees are carefully selected. In the country of Greece, the brand has grown to over 22 stores as of December 2007 and has become the 2nd largest inkjet and toner refill franchise in that market. The franchise also expanded in neighboring country Cyprus, with 2 stores operational since early 2007. The stores are mostly franchised, with at least 6 of the stores being company owned and operated as of early 2008.

The store concept offers consumers the option of bringing their empty cartridge for a refill, with most popular cartridge types being refilled on site. 123 Refills uses a patented 3 step approach to its cartridge remanufacturing, which includes cleaning, refilling, and testing cartridges that are remanufactured on site. The stores remanufacture almost all HP, Lexmark and Dell inkjet cartridges on site, as well as the most popular toner cartridges. The toner remanufacturing is done manually, with the use of toner vacuum and a clean room for environmental purposes. The inkjet remanufacturing is done partly by machine, including but not limited to the use of suction equipment, vacuum equipment, and professional grade inkjet testing equipment.

The company was founded in Los Angeles, California, where it currently operates its distribution / support out of approximately 8,000 square feet. The company also has a support and distribution center in Greece, as well as in the Philippines. 123 Refills does its own product R&D, warehousing and distribution, and technical support. The company warehouses and ships over 2,000 unique products.

The 123 Refills franchise operation doesn't require store operators to have any prior technical skills. The company provides detailed and intensive training for 3 weeks for new franchisees, including 1 week at the franchisees location after they open their store. 123 Refills is a private company and as such does not disclose its financial results, and under franchise disclosure laws the company can not release nor predict what new franchise stores may expect in terms of revenues or profits. According to industry articles, over 800 million inkjet and toner cartridges are sold in the USA each year, with a steady growth rate increasing into the foreseeable future. Industry articles also claim that about 50% of US consumers have not tried a remanufactured cartridge, and 123 Refills feels that these trends pose an incredible opportunity as there is room for growth in the aftermarket industry. Also estimating that it takes about 1,000 years for a cartridge to decompose, it is very environmentally friendly to remanufacture.

123 Refills expects consistent growth in this industry, but realizes that there are market forces that make it more difficult to remanufacture. Legal as well as price wars by the OEM manufacturers such as HP, Epson, Lexmark and others are some of the threats to the industry. Another threat which 123 Refills believes is more important, is the speed to market by printer manufacturers of new cartridge types, and the use of more anti-refilling devices such as chips. These market threats are a positive sign for 123 Refills, because they raise the barriers to entry for other competitors and allows the better competitors to out-perform. The company is vertically integrated as a an R&D / manufacturer / distributor / reseller, and feels like it is best positioned to out-compete by being first or quick to market with new refill technologies, and to continue its gradual and steady growth as a quality provider of printer cartridge refills.

In the US (as of early 2008) a franchise from 123 Refills requires an investment between $87,000 to $170,000. According to the company's UFOC (uniform franchise offering circular), the price covers an initial franchising fee, marketing materials, training, store layout and buildout, inventory, equipment as well as 3 months estimated overheads such as rent and employees. The company is franchising only in the State of CA as of early 2008.

Franchising History

Year U.S.A. International Corporate
2007 1 24 7
2006 0 10 3
2005 0 3 2
2004 0 0 1

See also

Ink cartridge

External links

123 Refills franchise website

123 Refills ecommerce website

Franchise Gator lists 123 Refills

PR Newswire 123 Refills