Elite Franchise Magazine April 2015

APRIL 2015

Delivering the goods Having made his dough in fast food, Domino’s Pizza chairman Stephen Hemsley wants a slice of the home franchise market with latest venture, Franchise Brands

APRIL 2015

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Reach out for renewables The renewable market in the UK has a predicted value set to reach £50 billion by 2020 and the sector presents fantastic opportunities for entrepreneurs who want to establish a new business in a rapidly growing market.

Green Square is looking for like-minded people to join their team and experience a business model that is in high demand from domestic and

commercial customers looking towards rds greener alternatives for practical renewable energy solutions for the future.

The Green Square franchise offers the e opportunity to work in an ethical environment and penetrate a ring fenced business area, while minimising the risks associated with starting out alone, with a sales potential of over £1 million in three years.

Other benefits include: • Exclusive products • Fully certified training and qualifications in renewable technology • Quality Management system for microgeneration technologies in place (MCS)

• Bespoke software allowing full system design and calculations for complex installations • Full marketing support: website, launch event and marketing campaigns • Turn-key business concept

• Supported by legislation • Reasonable franchise fee

For further information please visit our website, or to express an interest in finding out more information email: franchise@greensquare.co.uk

T: 03333 707 707 www.greensquare.co.uk

The future is green, the future is a Green Square franchise Green Square opened its flagship store in March 2013 in Raynes Park, London and instantly made its mark on the renewable energy scene. With demand from homeowners and small businesses across the UK, Green Square realised it had to offer more showrooms across the UK to display their impressive product portfolio. The future of Green Square and their renewable energy offering came in the form of a franchise.

Green Square is a member of the British Franchise Association (BFA), and their first franchisee was Oliver Thyne who opened his showroom in Kelso, The Borders, in January this year, and others are quick to follow suit to ensure they secure their part on the Green Square map.

Meet Oliver Thyne, Green Square, Kelso I wasn’t actually looking to invest in a franchise, in fact, I hadn’t even considered franchising until I read about the opportunity with Green Square. I had an interest in renewables so I was naturally drawn to the business opportunity and after exploring Green Square’s franchise offering I quickly realised that this was an industry I wanted to be part of.

Not only do they have their own private training centre in the UK and a product range that meets the highest European and UK certifications, but realising that I was investing market worth millions and heavily supported by Government initiatives, I knew my investment was a safe and wise decision.

Green Square offers invaluable and impartial advice to a ready-made audience. I am able to help customers make financial savings on their energy bills while helping protect the future of our planet.

574 Kingston Road • Raynes Park • London • SW20 8DR

14

The Elite interview Hannah Prevett grabs a slice with Stephen Hemsley, Domino’s Pizza’s non-executive chairman

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Contents.indd 1

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30 53 60 Close protection

With 2014 being the year of the data breach, IT security should be a priority

7 Editor’s letter 8 Contributors 10 News & events 12 Talking point 80 Franchise diaries

22 One to watch

North Yorkshire’s Hot Box Stoves is cooking on gas

30 Knowledge is power

43 Out of sight

Franchises need to be wary of hidden costs

50 Community spirit

Getting close to the locals is a great way of getting your brand out there

The cost of litigation has risen and franchising should be worried

64

53 Military precision

Franchising provides a great opportunity for anyone looking to teach

Army, navy and airforce training makes for battle-fit franchisees

37 Growth spurt

58 Winds of change

Sherpa Kids is striking the balance between rapid expansion and a personal touch

64 David versus Goliath

Bill Pegram says we need to get with the times on franchisee recruitment April 2015 elitefranchise 5

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ADVERTISING FEATURE

Are you looking for an opportunity to

Earn a Big Income

...with a low cost base, residual income and huge growth potential Then congratulations, you’ve come to the right place!

W

elcome to thebestof – quite simply one of, if not the best business opportunity, in the UK today...

Founded over nine years ago by millionaire and entrepreneur, Nigel Botterill; thebestof promotes the very best businesses, events and local info in your local area. Thebestof began life as the UK’s first independent web directory. Today though, it’s much, much more than just a website.

For the right people, it is an amazing business opportunity with extraordinary rewards. With an established track record, a host of top national awards and thousands of great local customers... thebestof franchise has huge potential growth. thebestof has franchisees all over the UK, Australia and launched in Ireland in 2014. If you were to become a ‘thebestof franchisee’ you would truly be able to engage with your local community and give them a voice.

Not only would you become a ‘word-ofmouth’ specialist, but you’d become the most influential person in your town and get to build relationships with the very best businesses!

It has been the most amazingly, fun experience that we’ve ever had - running a business. The support from the franchisor has been nothing less than spectacular.

Adrian and Amanda Keeling thebestof Woking

Through their franchisees, thebestof is bringing back the close ties we used to have in our towns; keeping the pound in their area.

With relationships like this, you will be able to build yourself a very significant income, a business that gives you lots of flexibility and you’ll also be giving back to your community.

After just 6 months I was earning £2,500 residual income a month. I am now aiming to earn £150k per year by year 2 or 3.

This really is achievable – thanks to thebestof.

What I liked about them is that it’s all so low maintenance – the three big reasons I chose thebestof over all of the other franchisee opportunities were; Freedom, unlimited earnings and I’m helping people.

Simon Jones thebestof Colchester

Quite simply, thebestof is the go-to place for everything happening locally. They have an extensive track record, and no-one understands better than them, what it takes to start a business, and how to build it into something super-successful.

With all these advantages there’s no wonder why thebestof is celebrating it’s 10th year in franchising. After all, what securer way is there to start your own business? Franchising has a faultless formula – throw together an ambitious business owner and a successful business model with all the support you could dream of, and your business has a far better chance of success…If done well that is!

You will have the opportunity to build your capital, as well as your earnings; especially

as major banks tend to be very supportive of successful franchises. What’s more, as a business owner, you’ll be in control. You’ll be able to decide what works and what doesn’t.

Although becoming your own boss may seem like a daunting task, it can be a very exciting one too. If you have a strong desire to see your local area and the people within it prosper – becoming a ‘thebestof franchisee’ might be the thing for you.

So what does a thebestof franchisee do?

Our franchisees identify the best businesses in their local area and then, using a suite of marketing tools unique to thebestof, work with the business owner to showcase and promote them.

Your core income will be from the monthly membership payments made to you by local businesses. Because of the multi-faceted approach of thebestof, there are also additional revenue opportunities available to franchisees.

After two to three years, when you’ve got 200 featured businesses paying you £99 upwards a month, you’ll have built up a fantastic regular monthly income. Remember: residual income is a beautiful thing.

There’s only room for one thebestof franchisee in each town – one individual, partner or team who will champion and promote the very best local businesses in each area. Could that town’s hero or heroine be you?

To request your free franchise information pack visit: getthebestof.co.uk/elitefranchise

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VOLUME 03 ISSUE 04 / 2015

SALES Adam Reynolds – Account Manager adam.reynolds@cemedia.co.uk Matthew Witchalls – Account Manager matthew.witchalls@cemedia.co.uk EDITORIAL Hannah Prevett – Editor hannah.prevett@cemedia.co.uk Adam Pescod – Web Editor adam.pescod@cemedia.co.uk Josh Russell – Feature Writer josh.russell@cemedia.co.uk Ryan McChrystal – Feature Writer ryan.mcchrystal@cemedia.co.uk Jade Saunders – Junior Writer jade.saunders@cemedia.co.uk DESIGN/PRODUCTION Leona Connor – Head Designer leona.connor@cemedia.co.uk Rishita Devji – Junior Designer rishita.devji@cemedia.co.uk Dan Lecount Web Development Manager dan@cemedia.co.uk Marketing Kelly Dunworth – Head of Communications kelly.dunworth@cemedia.co.uk Claudia Laing – Marketing Manager claudia.laing@cemedia.co.uk Lucy Jones – Marketing Assistant lucy.jones@cemedia.co.uk CIRCULATION Paul Kirby – Circulation & Data Manager paul.kirby@cemedia.co.uk ACCOUNTS Sally Stoker – Finance Manager sally.stoker@cemedia.co.uk Colin Munday – Management Accountant colin.munday@cemedia.co.uk ADMINISTRATION Daisy Jones – Administrator daisy.jones@cemedia.co.uk DIRECTOR Scott English – Managing Director scott.english@cemedia.co.uk Circulation enquiries: CE Media Call: 01245 707 516 Elite Franchise is published by CE Media, 4th Floor, Victoria House, Victoria Road, Chelmsford, CM1 1JR Copyright 2013.

All rights reserved No part of Elite Franchise may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of the editor.

Elite Franchise will make every effort to return picture material, but this is at the owner’s risk.

Due to the nature of the printing process, images can be subject to a variation of up to 15 per cent, therefore CE Media Limited cannot be held responsible for such variation.

A hands-on approach to problem-solving is key in franchising There aren’t many people who know more about franchising than Stephen Hemsley. After all, he was chief executive of Domino’s Pizza, one of the UK’s most successful franchises, for seven years until 2008 and has since served as nonexecutive chairman.

What’s the secret to his success? Part of it is down to the power of persuasion. It’s a skill Hemsley learned during his stellar career in venture capital. As he explained to me, you can make all the demands you like of a company you’re about to invest in, but once they’ve cashed the cheque, you must rely on the power of persuasion to coax them into doing what you want.

It’s much the same with franchisees: franchisors can explain all the rules, provide comprehensive training programmes and hand over extensive brand guidelines, but ultimately they must rely on franchisees to do the right thing – and offer advice and guidance where they can.

Also key to Hemsley’s franchising prowess is his hands-on approach to problemsolving. When he took over as chief exec, he made it a priority to get out there at the coalface and solve some of Domino’s franchisees’ biggest problems. He even got an oven manufacturer to invent new products to help expand capacity.

During our meeting, he told me that the boardroom is one of his least favourite places: he’d far rather be out there on the ground, helping franchisees, than be sat in an ivory tower making commandments.

Never mind franchising, to me that sounds like a savvy approach to business in general.

HANNAH PREVETT EDITOR

cemedia.co.uk

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C

Emilie Sandy

Cover star Stephen Hemsley’s house is a photographer’s dream, and Sandy took full advantage with her fantastic shoot this month. Our super snapper managed to squeeze the trip to Knightsbridge into a busy schedule, which has included teaching commitments and giving her website a makeover. And of course, there’s also the challenge of keeping her cake-loving son Freddie happy over Easter. He was somewhat spoiled on his second birthday so Sandy is trying to keep sugar intake to a minimum. Good luck with that, Emilie.

Kate Lester

When EF caught up with the Diamond Logistics CEO, she reported that February had been a record month for the company, which has just opened its 25th depo. The award nominations are stacking up too: the firm made the final of the Toast of Surrey Awards and a couple of franchisees are up for gongs at the FTA (Freight Transport Association) everywoman in Transport & Logistics Awards. Success hasn’t come easy though. As Lester says in her column this month (p80), it’s all about learning from your mistakes.

Leona Connor

A veritable powerhouse of production, head-designer Connor spends most of her time beavering away and beautifying our fair pages. She does get a little time away from her desk however; last month she popped over to gay Paris for her birthday. After munching on croque-monsieur and scouting for bargains at Marché aux Puces de la Porte de Vanves, Connor came away with a beautiful Ulysses butterfly and letter stamp engraved with a zebra. Sounds like a bon anniversaire to us.

Bill Pegram

Pegram has been in franchising for over 20 years. His enthusiasm for the field of franchise sales stems from his early years as a salesman with Century 21. Since then, he has seen the sales area of franchising develop at breakneck speed to encompass today’s web-based marketing and lead-handling solutions, such as the one he provides through The Franchising Centre. Pegram lives and breathes sports, particularly snowboarding; this Easter, he will be found searching out the last of the good powder on the slopes.

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Own your part of the world’s largest residential estate agency organisation!

BECOME CENTURY 21...

CENTURY 21 is officially the world’s largest estate agency organisation with over 7,000 offices in 77 countries worldwide. With franchise territories available across the UK, now is the right time to BECOME CENTURY 21 and grow a thriving estate agency business with the following support...

We will help you to find a premises, brand your business, recruit and train your staff, and provide ongoing in-the-field support to you and your business You will be able to market your client’s property locally, nationally, through our new website century21uk.com and internationally, through century21global.com, the property portal exclusively built for CENTURY 21 agents

You will benefit from excellent marketing support; we are constantly creating new materials and investing in new marketing tools and systems to help you with all aspects of your marketing strategy Become part of a growing family with ever increasing market-share and recognition both at home and overseas.

In 2014, we signed 21 new franchise territories, making us the fastest growing estate agency franchise in the UK! To find out more, please contact our Franchise Sales Directors today using the contact information below, or visit our website:

www.century21uk.com

Let us bring the world to your door!

Speak to our Franchise Sales Directors today to find out more: Tel: 0115 902 1002 Email: opportunities@century21uk.com Web: www.century21uk.com

CENTURY 21®.

If you’re not with us, you’re watching us grow.

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Congratulations were in order as the Franchise Marketing Awards 2015 recognised those franchises with the most innovative marketing campaigns. Now in its tenth year, the FMAs were judged by an independent panel of experts, with awards handed out to the likes of Gas-elec, which won best print advert, and Dream Doors, which was given the gong for Best Franchisee Marketing Support. Elsewhere, Papa John’s earned the Best Online Marketing Campaign, whilst Pyjama Drama scooped the award for Best Website. Platinum Property Partners went home with the Best PR Campaign award while Expense Reduction Analysts won Best Overall Marketing Campaign.

Many dream of packing their bags and moving to the sunny beaches Down Under, and one Pyjama Drama franchisee has made the move from Exeter to Perth in the first international opening for the franchise. After a successful reign in Exeter, franchisee Amanda Plumridge set her sights on Australia’s west coast and despite only being there since February, she has been quick off the mark. “I just like to get things done,” said Plumridge.“What’s the point of spending your life dreaming when with a little bit of effort and imagination you can turn those dreams in to reality?” That’s the spirit.

Home Instead Senior Care had to dust off its

trophy case last month after scooping two presitigious awards. The Cardiff franchise of the care company was awarded the Investors in People Gold standard award, which saw it join the top 7% of accredited organisations in the UK that have been recognised for realising the potential of their people. Home Instead was also named the Homecare Provider of the Year at the Independent Specialist Care Awards. The founders, Trevor and Sam Brocklebank, collected the award, which was presented by the BBC’s Bill Turnbull.

Pizza delivery firm Papa John’s has served up its first franchise north of the border as it looks to expand beyond its southern England homeland. Waleed Saleem, who has past experience in the pizza market, is to take over the Ayr outlet and has his sights set on ten more franchises across Scotland in the coming years. Earlier this year, Papa John’s launched a franchise initiative scheme, offering discounted royalty fees, free equipment and marketing spend for all new franchises opened in the Midlands, North West, North East, Wales and Scotland. That is one tasty proposition.

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Belvoir celebrated its 20th anniversary in style this year, but instead of fine china, it opted for a touch of glamour with a glitzy red carpet Oscar-style awards ceremony. The black-tie event saw Terry Lucking, franchisee of Belvoir in Peterborough, win the prestigious Gold Award for Franchise of the Year 2015 and the award for Highest Annual Turnover.

Winners also had the honour of collecting their trophies from none other than TV presenter Dominic Littlewood.

When the awardwinning children’s sports specialist A-Star Sports met leading children’s physical activity providers Sports Xtra, you could say it was a match made in heaven. The two companies have now merged, creating the perfect blend of children’s physical activity ‘Xperiences’ and the outstanding A-Star Sports multi-sports programme. The combined company will now have a joint network of 40+ franchise territories to reach out to more families of children aged three to12 years with weekly classes, after school and holiday clubs as well as those all-important parties.

Ever since we learned of its franchise plans, we have kept a keen eye on Pan Chai, the pan-Asian restaurant whose flagship site resides in the hallowed halls of Harrods. As we await the company’s move towards the East of England, it’s encouraging to hear of its first foray outside of London. It is to open its doors in Bicester Village, a designer shopping centre in Oxfordshire, where it will serve hungry shoppers everything from sumptuous sushi to Thai green curry and delectable dim sum. Please don’t keep us waiting much longer, Pan Chai.

One of the UK’s largest bookkeeping franchises Cloud Bookkeeping has launched a new central processing centre.

Staffed with skilled bookkeepers, it will help new franchisees who are not ready to take on additional staff but have a workload higher than they can manage. This additional support will help franchisees focus their time on networking to build relationships and to expand operations; it also includes a dedicated ‘Cloud Vault’ for storing documents. The bookkeepers in the central processing centre will have the same skill set as franchises. New franchisees will be on cloud nine.

upcoming events Business Scene: Newbury Dinner April 7 Old Oxford Road, Donnington RG14 3AG Business Junction: Networking Lunch April 9 Babble City 45 Old Broad Street London, EC2N 1HU

London Angel Club Session 2 Angels Den April 15 Nabarro, 125 London Wall EC2Y 5AL Finance and business briefing for SMEs Smith & Williamson April 21 Portwall Place, Portwall Lane, Bristol BS1 6NA

Sustainable Built Environment: a vision for the future April 21 Environment Agency, Horizon House, Deanery Road, Bristol BS1 5AH bfa Discovery Day 2015 April 14 Madejski Stadium Reading, RG2 0FL

Property Angels Den April 28 Druces, Salisbury House London Wall, London EC2M 5PS Scottish Social Event 2015 April 29 Rox Hotel, 17- 23 Market St, Aberdeen, AB11 5PY

A full event listing is available on our website: elitefranchisemagazine.co.uk/events April 2015 elitefranchise 11

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Depressed wages could hamper productivity

Zero tolerance How worried should franchises be that UK inflation has fallen to zero?

WORDS: Ryan McChrystal

F

or the past three decades, defeating inflation and achieving price stability have driven UK economic policy. Now, for the first time since records began in 1960, UK inflation has fallen to zero, down from 0.3% in January. It will, in all likelihood, fall again this month, resulting in deflation. From 2008 to 2012, inflation was allowed to run significantly above the Bank of England’s (BOE) 2% inflation target, without an aggressive interest rate response. The current flat rate comes as falling oil prices put the skids on prices.

Business groups overall seem to be welcoming the news but uncertainty about future inflation could cause companies to delay investment. Low inflation makes the repayment of outstanding debt more difficult and could even be the result of something more sinister.

There are signs, however, that the current situation won’t last.

This fall in inflation hands the chancellor George Osborne a pre-election boost as people go to the polls with more money to spend.

He took to Twitter to write: “Inflation at zero is a first for the British economy. Low inflation due to falling oil prices is good news for family budgets.”

British holidaymakers heading abroad this summer may not be so pleased as Sterling was down 0.4% against the Euro, but just how worried should British franchises be by the news?

It seems increasingly likely that inflation will remain significantly lower than 2% for the foreseeable future. With the recent Cyrus Afkhami, announcement earlier this week that the founder, official inflation figure is a paltry 0%, there My Tutor Club are some implications for business of falling prices. The short-term consequence is that people feel richer; in short, their spending power increases and every pound goes further. On the face of it, this bodes well for businesses as consumers, buoyed with this extra confidence, make purchases that otherwise they may not have made previously. However, if inflation remains at 0% or turn to deflation, the medium-to-long-term impact on businesses, and indeed the wider economy, would become damaging – we would experience stagflation.

The risk with deflation is that if consumers expect prices to continue falling then over time they are more likely to defer purchases in an effort to secure even lower prices in the future. This deferment can depress economic activity and have negative knock-on effects throughout the rest of the economy, just as Japan has experienced since the 1990s.

The spectre of deflation may also provide an opportunity for business to freeze wages; this may reduce costs in the short term but depressed wage growth can reduce incentives amongst employees and hamper productivity. It does seem that we are some way off the negative effects of deflation – Eurozone countries are slightly more concerned – but nevertheless even the mere possibility of falling prices can dampen

Zero inflation is great for franchises The news UK inflation has fallen to zero is great for franchises and anybody who has ever considered joining the small business franchise ownership sector. Franchises are Ivan McKeever, already a lower-risk solution and now the CEO, risk has been lowered further. This should SwitchMy lead to a rise in franchised businesses across Business.com the UK, giving a healthy boost to anyone who wants to take advantage of the benefits of a ready-made business.

As anybody who has ever looked into starting a franchised business will know, while there are benefits, some of the biggest financial outlay comes in the early stages and this is where some can fall before they even begin.

Crucially, you will incur costs even before signing the franchise agreement with a brand, from professional fees including an accountant, to costs for equipment, insurance, employee training, business licences, rent, signage, advertising, to name just a few. With zero inflation bringing more steady and predictable costs, a franchise will be a very real possibility for the first time for many, whether setting up their first business or adding to an existing portfolio. For those setting up, the amount they will need to invest in that franchise will now be lower, which will lead to growing confidence in the sector.

The knock-on effect will be that everything from supplies and salaries to uniforms and expansion will be cheaper. A rise in franchised businesses and an increased confidence in their take-up is a win-win situation for the UK economy as a whole.

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THE ELITE INTERVIEW

A second

slice

WORDS: HANNAH PREVETT PHOTOGRAPHY: EMILIE SANDY

After fulfilling his mother’s wish and becoming a chartered accountant, Stephen Hemsley went on to become chief executive of Domino’s Pizza.

Now chairman of the pizza delivery chain, he is serving up his latest offering, Franchise Brands, which is on an acquisition spree

T

he news that Stephen Hemsley had been appointed chief executive of Domino’s Pizza in 2001 received a mixed response from his nearest and dearest. Whilst his three kids reckoned it was “the coolest job”, his mother was horrified. “She said, ‘What are you doing darling? Running a pizza company? You’re a chartered accountant.’”

Hemsley’s sterling financial background certainly stood him in good stead when it came to taking the reins at Domino’s. Trained as a chartered accountant, his first job was at professional services firm Stoy Haywood, now known as BDO. While the auditing side of the job bored him rigid, he enjoyed conducting due diligence on companies that were about to float on the stock market.

He went on to take a job in New York with Saracens, a small investment bank, and after a year wound up at investment titan 3i.

“Working for a private Swiss bank, investing a tiny proportion of the funds they had under management, wasn’t that thrilling,” explains Hemsley, from the boardroom of his Knightsbridge house. “I wanted someone with deeper pockets and 3i certainly fitted the bill.”

His time at 3i was a steep learning curve – it was a chance for him and his peer group to apply all the theory they’d learned up until this point.

“It taught us how to negotiate. We were young guys in our mid-20s negotiating with these crusty old businessmen in order to invest in their companies, so you needed to be taught how to do that,” he says. “Quite a few people teach you how to sell but not many actually teach you how to negotiate.”

Hemsley flourished at 3i and became investment director before being reposted in Jersey. He and his family loved the island lifestyle and when his three years were up, he was told he’d be working in Guildford, Surrey. “‘That’s not very thrilling,’ I thought.”

After being back in the UK just a few weeks, he accepted a partnership at a chartered accountancy firm in Jersey and shipped the family back to the Channel Islands – he and wife Sherron had three children by this point. But, unfortunately, the quality of the new job didn’t match the quality of the lifestyle. “Sadly, I realised why I’d left the profession ten or 12 years before that. I hated it.”

Once he’d served a year, the family moved back to the UK for good.

As he contemplated his next move, the chief executive of a company Hemsley had invested in during his time at 3i got in touch. “I’d done quite a number of stock market flotations on the junior markets whilst I was at 3i and the company wanted to float on the AIM market, which was just being launched at that time.”

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Quite a few people teach you how to sell but not many teach you how to negotiate

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Like in all franchise businesses, you need a certain critical mass of stores to cover the fixed central overheads

He became financial director of Meltech, which “repaired the bits that go into computers”, for three years.

“Then I had a difference of opinion with the chairman about the direction of travel and we decided to part ways.”

It was onwards and upwards for Hemsley, who then joined Domino’s Pizza, which he describes as being in its “embryonic” stages in 1998. Though the pizza delivery company had opened its first UK store in 1985, “the master franchisee effectively went bust and the Americans took it back in the late 1980s,” he says. “They ran it themselves from [the HQ in] Ann Arbor in Michigan, which wasn’t very good.”

They decided to take a chance on a second franchisee, Colin Halpern, who bought the master franchise in 1993. Domino’s was a far cry from the leviathan it is today, says Hemsley.

“There were 50 or 60 stores, it was losing £1m a year and it was run out of

a very modest shed in Milton Keynes.

But it clearly had potential.”

Domino’s needed to grow quickly in order to shore up the balance sheet.

“Like in all franchise businesses, you need a certain critical mass of stores to cover the fixed central overheads,” explains Hemsley. Halpern had installed his brother, Gerry, as CEO and in 1997 raised some money from Nigel Wray, now Hemsley’s business partner in Franchise Brands.

“One of the things that Nigel did then and still does now with every business he invests in is to improve the management,” says Hemsley. Under his steer, Domino’s floated in 1999, at which point it became more apparent that a new leader was needed. “We still had this 65-year old chief exec. I said, ‘We need a younger, more dynamic leader.’ It’s a young person’s business, or at least it was then. Students and under-25s comprised a huge part of

our market. It’s no longer the case: the biggest market segment is now young families,” adds Hemsley.

After candidates brought forth by headhunters failed to meet the grade, Hemsley found himself in the frame for the top job. “I’d said that I didn’t think any of them were up to it and Nigel and Colin said, ‘Alright then – you do it.’” It was a big decision. Though it’s common for financial directors to transition to CEO, this hadn’t previously appealed to Hemsley. “I didn’t expect to be running a pizza company. I do all this financial stuff and I got companies ready to float.

And I always took a shareholding so I was making some fairly decent money floating these companies. Once I’d done one, I moved on to the next.”

He struck a deal with Wray and Halpern and got to work finishing the to-do list he’d started tackling as FD. “One of the issues with stores in the early days was that they were capacity constrained. They’d been built to handle a certain volume and the problem with a pizza business is that you do half your business on a Friday and Saturday night.

“I put in place a programme we called Dambusters, where we did an analysis of the things that were constraining the volume.” This included things like installing additional phone lines and the extra employees needed to man them. He also persuaded the oven manufacturer to make stackable, wider ovens.

Though he was reasonably new to the franchising world, the skills he’d learned during his time as an investment director proved invaluable.

“My financial background and an understanding of business modelling helped but the other thing that helped is coming from a private equity background. In private equity or venture capital, you’re in charge until

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THE ELITE INTERVIEW

the moment you put your money in. The day after, the management’s in charge. You can have as many agreements as you like on what they’ll do after you invest but really you can only get them to do what you want them to do or what needs to be done by persuading them. That’s exactly the same relationship as you have with a franchisee,” Hemsley explains.

“You have a franchise agreement, they’re bound to comply with all the brand standards, do this, that and the other. If they don’t want to do it, you have got only one ultimate solution which is to sling them out. But you don’t want to do that because you’re trying to build a business and your franchisees are the lifeblood.”

A key challenge for Domino’s around the turn of the millenium was getting to grips with the birth of the web.

“The internet was starting to get some traction but nobody was really using it that much for ordering stuff so we decided we wanted to be the first,” says Hemsley. There were some inherent problems in this noble aim. “We had a point-of-sale system in the store that obviously wasn’t designed with the internet in mind. No one was capable of providing the infrastructure we needed and even less so in a timely way.”

They came up with a ramshackle solution: once customers placed their order on the website, this generated a fax which was then sent to the relevant store. The Domino’s employees would then manually enter the order before it went through the usual systems. It was rough and ready but left other takeaway companies flummoxed. “None of the competitors could work out how we’d gone from zero to hero in such a short space of time. It was like a state secret how we were doing it.”

It’s a far cry from Domino’s modern-day digital strategy, which has been credited with helping boost revenue to £294m last year. Its latest financial results, released in February, revealed that customers’ increasing tendencies to order online had helped deliver a whopping £54m in profits last year. Hemsley suggests that the figures look even better because the previous year’s results had been diluted after some major write-offs in Germany; still, by anybody’s reckoning, the UK’s number one pizza company is looking rosy.

But whilst the P&L may be nice and healthy, how wholesome are Domino’s products? “There’s nothing wrong with pizza in terms of healthy eating,” he starts. “Healthy eating is all to do with a balanced diet. If you eat a pizza every night, you’ll get fat. If you eat it once a month, it won’t do you any harm at all.” Hemsley, whose favourite is the firm’s best-selling Pepperoni Passion, admits he now tucks into a pizza “probably less than once a month”.

It was a different story when he was in the company’s head office full-time. Now, as chairman, he spends just a day a week on Domino’s business. His other main business interest

None of the competitors could work out how we’d gone from zero to hero in such a short space of time

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6552 - Franchise Ad_Layout 1 11/03/2015 16:47 Page 1

Turn over £988k a year with this management franchise opportunity Entry-level investment from £35,000 (licence fee £30,000) Help available with purchase finance

Our offer to you: Invest in a start-up or an existing business Your own postcodedefined territory National customer contracts with leading companies Comprehensive training and marketing support

Unique software package

Driver Hire is

People like you

Financial returns

• One of the UK’s leading specialist recruiters • A proven franchise with a 30-year record of success • Providing logistics staff to private and public sectors • Over 100 offices, supplying some 3,000 workers per day

• Franchisees from a wide range of backgrounds • No previous knowledge or experience required, but...

• A passion for excellent customer service and the commitment and desire to build a successful, profitable franchised business • 93% of franchisees would buy a Driver Hire franchise again!

• Average full year franchise turnover of £988k in 2014/15 • 37% of offices achieved sales of £1m+ in 2014/15 • Low fixed costs and attractive resale values upon exit • Net profit potential of over £100,000 per annum • Opportunity to boost revenue significantly by offering complementary products

Get in touch to discover more about this fantastic business opportunity.

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www.driverhirefranchise.co.uk

01274 361073

franchise@driverhire.co.uk

AWARD WINNER - bfa HSBC ‘Franchisor of the Year’ 2006 and 2012 EliteFranchiseApril2015.indd 1

27/03/2015 11:01

THE ELITE INTERVIEW

is Franchise Brands, which he set up with Wray in 2008.

“Nigel and I like the franchise model as a way to organise and build a business and there was a public company called Myhome, run by an Australian guy,” he explains. “When we first invested, it probably had half a dozen brands and was expanding by acquisition. Nigel and I ended up owning 20% of it.”

But all was not what it seemed. “The chief exec turned out to be a crook; the company went into receivership and he did a runner back to Australia.” The receivers called Hemsley and revealed that as the biggest shareholders they could double their investment and prop up the business or walk away and lose everything they’d put in so far. “We bought it, completing the deal at the beginning of September 2008.”

Their timing couldn’t have been worse. “The world came to an end. Lehman’s went bust. We were aware at that stage that we now owned 12 businesses and probably only three of them were generating any cash – the rest of them were too small, growing or had negative cashflow.” It fell to Wray and Hemsley to make some difficult decisions. “I rang up Nigel and said, ‘I’m afraid we’re going to have to perform some fairly radical surgery here because I can’t risk carrying on with the business as it’s currently structured, a. because the overheads are too high and b. because we’ve got too many businesses bleeding cash.’”

One of the franchises was sold, and others were effectively shut – the businesses were handed over to franchisees, which was both a blessing and a curse. “We said to the franchisees of eight brands, ‘We’re not going to continue as franchisor, you can have the business for nothing, which basically means you’re not going to be paying any I’m far happier more royalties or anything to us but equally you’re not going being out with to get any support.” Two other franchises were merged and sold, the franchisees leaving behind just Chips Away, a car scratch repair company, or in the stores and Ovenclean. than I am “We battened down the hatches to get through the recession,” sitting in the says Hemsley. “We knew that we weren’t really going to be selling boardroom many new franchises because the banks were out of business for two or three years. It was a case of hanging on to what you’ve got, supporting the franchisees to get through some fairly difficult times and then having another look to see what we’ve got in a couple of years’ time.”

It’s an approach that’s served him well: both businesses continued to be profitable throughout the downturn and generated “a reasonable amount” of cash, which was repaid to shareholders. Then, a couple of years ago, both brands begun aggressively expanding again. ChipsAway and Ovenclean now have around 350 franchisees apiece.

Hemsley and Wray are looking further afield for

opportunities too. They are aiming to spend around £10m bringing some new franchises under the Franchise Brands banner in the next year. “They will have reached critical mass, so maybe they’ll have 25-plus franchises, but they probably won’t be making much money for their existing owners,” says Hemsley.

He says the expertise and central services that Franchise Brands can offer franchises entering the fold include marketing, financial and legal expertise.

While not perusing the franchise world looking for acquisition targets, Hemsley can either be found in his study working on the family’s property interests or, more likely, on his classic boat, which he raced in the Mediterranean last year. He and wife Sherron also travel a lot, taking at least one ‘adventure’ holiday a year – they’ll shortly be off hunting Komodo Dragons in Indonesia.

One place you’re unlikely to find Hemsley, if he can help it, is the boardroom. “It’s not my favourite place. I’m more of a doer than a talker, really. I’m far happier being out with the franchisees or in the stores than I am sitting in the boardroom talking about corporate governance.”

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ADVERTISING FEATURE

Dublcheck doubles down the decades Now entering into its 21st year, Dublcheck reflects on its anniversary celebrations and the success of franchisees

A

s one of the fastest growing and most successful franchises in the UK, 2013 has certainly been a big year for Dublcheck, not least because it marked 20 years of business for the leading commercial cleaning company. Deciding to celebrate in style, the franchise hosted a glittering ball to recognise the many achievements of the organisation and its franchisees.

The ball, hosted by founder and Chairman Carol Stewart-Gill, was held in the Leverhulme Stand at the historic Chester Racecourse. Over 120 guests attended the superb occasion and enjoyed a champagne reception, dinner and an evening of entertainment. Guests were treated to a dazzling performance from world modern jive dance champions and franchisee owners Hazel Surguy-Price and John Lloyd. An outstanding performance by acoustic reggae and Latinostyle band Duncan Disorderly & The Scallywags brought everyone to the dance floor and got the evening into full swing.

Speaking passionately on the night about the company she founded in 1993, Carol StewartGill said, “It is fabulous to be sharing the achievements of this wonderful organisation with our franchisees. Success only comes with hard work, grit and determination, and this evening demonstrates the commitment of our franchisees and dedicated head office team.”

Len Donnelly won the prestigious Dublcheck 20th Anniversary Award. Since joining the

member of

Dublcheck network over six years you a success. Dublcheck’s “We can’t thank make ago, Len has amassed an annual approved training programme our franchisees will make you a professional in turnover in excess of £325,000.

To recognise his ongoing growth your field. Having been in the enough for and exceptional quality service, business of setting people up in the sustaining our commercial cleaning business for Dublcheck awarded Len a holiday reputation as for two at the luxurious Bellagio twenty years, Dublcheck knows Hotel, Las Vegas. how to deliver. When you invest in a high quality Carol congratulated and thanked a franchise, our committed head and committed office team will not only walk you franchisees for maintaining Dublcheck’s values and for through a comprehensive training organisation” providing exceptional customer course but it will also go that Carol Stewart-Gill, founder and Chairman, Dublcheck service standards, “We can’t extra mile by obtaining cleaning thank our franchisees enough for contracts on your behalf. sustaining our reputation as a high quality and Founded in 1993, Dublcheck is the UK’s leading committed organisation. We look forward to even franchised commercial cleaning company and more exciting and prosperous years ahead.” has been recognised as the 20th fastest growing private company by Virgin Fast Track and The About Dublcheck Sunday Times. With over a hundred franchisees Dublcheck is a franchise that requires few sales in operation, Dublcheck remains a wholly owned skills. All the business is obtained on behalf British company. Carol Stewart-Gill says with of our franchisees so they know exactly what confidence, “If you put in the effort and follow the their turnover will be. You can start with a Dublcheck System, huge rewards can be realised!” minimum turnover of £14,950 per annum if you want to run a hands-on business, starting small whilst retaining the security of your current employment, or you can purchase a franchise Dublcheck worth half a million pounds per annum by operating a management business. Opportunities Website: www.dublcheck.co.uk are endless: there is no upper limit.

Email: franchise@dublcheck.co.uk Whatever your background, investing in a Phone: 0800 317236 Dublcheck Commercial Cleaning Franchise can

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A warm

welcome

ONE TO WATCH

W

WORDS:RYAN MCCHRYSTAL

North Yorkshire’s Hot Box Stoves is on the hunt for talented franchisees to help it spread its range of luxury stoves across the UK

age growth may have slowed but wellheeled individuals will always have a taste for luxury items. This is especially true in the UK, which is set to become the largest luxury goods market in Europe by 2018, by which time the continent’s market will have grown to £96bn. It would seem there is no better time to get a piece of the action, which is exactly what Hot Box Stoves is doing. The North Yorkshire firm specialises in the supply and installation of high quality wood burning and multi-fuel stoves. It installs around 160 stoves each year for a pretty penny, both for domestic and commercial customers across the Yorkshire region. It is now in search of new franchisees to help it expand its business throughout the UK. Demand for wood burning and multi-fuel stoves is increasing, largely because of the cost and environmental benefits they offer.

Stove Industry Alliance manufacturers have experienced a surge in interest, reporting that an estimated 200,000 stoves were fitted in the last year alone, reflecting the fact that consumers are seeking more efficient and cheaper methods of heating.

After leaving university with a degree in economics and management, Hot Box Stoves’ cofounder Oliver Neal worked in the construction

industry for six years. This experience gave him a lot of technical insight, and in 2009 he wanted to install a wood burning stove in a house he had bought and was renovating. “I’d purchased the stove online and had gotten quite a good deal but when I approached one of the local stove shops to install it they wouldn’t as I’d bought it myself.” And so he set about doing it himself.

Neal enlisted the help of his old school friend Tristan Andjel, who at the time was running his own small plumbing outfit and had plenty of hands-on knowledge. “Somewhere in the installation process we both looked at each other, realising there was a gap in the market, and decided that we’d have a go,” says Neal. “I sat that evening scribbling on a pad with some ideas for names and came up with ‘Hot Box’.”

He knew that corporate identity would be key and so enlisted professional help with the logo.

“The Hot Box brand was born and it is now instantly recognisable.”

Hot Box currently has four directors. Neal is MD and focuses on business development; Andjel takes care of a lot of the day-to-day stuff like surveys, quotes and overseeing installations; leading biomass technician Adam Tyler takes charge of much larger projects; and

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45083 DD Franchise advert_Layout 1 27/03/2015 11:33 Page 2

Your New Life Starts Here • Run your own business with earnings of £100,000+ • Work close to home and build an asset you can sell • Manage your diary to spend more time with your family

Dozens of people, just like you, enjoy freedom and financial rewards with a Dream Doors franchise

“Everything has panned out exactly as we were told it would. Dream Doors has been honest from the start, painting a realistic picture with real figures. I'm really enjoying being a business owner and have absolutely no regrets at all.”

Ex-teacher, Lesley Wallace, joined in 2012 and sold half-a-million pounds in her first year.

“This franchise works and the returns are much better than we'd expected.

The figures we were shown are very conservative; we beat our first year targets in just four months. We should have done this sooner as I love coming into work every day.”

Ex-police officer, Mark Battin sold three-quarters-of-a-million pounds in his first full year.

“This business gets better and better all the time. We've had more record breaking months already this year. Sales like ours can only be achieved if you have the right support network around you; whether that is staff or suppliers, the franchisor or your family.”

Ex-IT specialists, Angela and Clive sold more than £1 million last year.

“We wanted to start our own business, but take some of the risk out of the equation. Dream Doors ticked every box: it's well-established with a strong track record, plus it has an excellent support network. And, with such a busy start, we've relied on that support.”

Ex-police officer, Gareth Kavanagh-Dixon, sold £450,000 in his first year.

NO KITCHEN EXPERIENCE NEEDED this is a sales and management franchise Dream Doors is the UK's largest kitchen facelift retailer and a FULL member of the British Franchise Association.

10-time award winners, the company has been trading since 1999 and has transformed more than 40,000 homes across the country.

To start your new life, and join 60 fellow franchisees, contact Dream Doors today.

Tel: 02392 988685 EliteFranchiseApril2015.indd 1

www.dreamdoorsfranchise.co.uk 27/03/2015 18:06

ONE TO WATCH

Neal’s dad Geoff, who is a silent partner with a wealth of experience, provides much-valued advice when it’s required. Neal and his father collectively own three businesses: Hot Box, a family roofing company specialising in listed

The hours I put in were due to my pure belief in the brand buildings and churches and another business that buys and sells reclaimed building materials.

The first ad Neal put in a local newspaper cost £150. This was on February 11, 2009 and by Valentine’s Day Hot Box had its first installation – and it has been growing ever since. Given his connections in construction Neal was also able to spread the word quite easily.

The early stages of any business can be financially tricky but with the economy in such a state, 2009 was an especially difficult year. Neal was working 17 hour days across his various roles to drive Hot Box forward. “The hours I put in were due to my pure belief in the brand and the products that we were looking to supply and install.”

He was fortunate enough to have money from his other businesses. “From here we very quickly found ourselves able to self-finance our initial growth,” Neal says. “We reinvested everything and continue to do so today.”

Over the past seven years the team has built a very strong business with a turnover of £500,000 and anticipated growth of around 15% per year. This success comes down to Hot Box’s relentless focus on high-quality products and excellent customer service. One need only look to the testimonials on its website to see it has a lot of very happy customers. The firm has also embraced technology by developing a webbased, instant ordering and quotation system, and its continued investment in the training and development of its employees makes for a 24 elitefranchise April 2015

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ONE TO WATCH

skilled and committed workforce.

The next stage is franchising. Neal and his team are keen to develop a successful, well-managed franchise network throughout the country and are confident Hot Box represents a great opportunity for people with the right skills and customer focus. The company recently took a stand at the Franchise Show at London’s ExCeL. “The event gave us a great insight into the sector,” says Neal. “It was a good opportunity to talk to a number of people interested in taking a franchise.”

Controlling any business that has a construction element, and in particular one that is in people’s living rooms, can at times be challenging. Health and safety is of upmost importance and a continued relationship with customers is essential. Furthermore, the stove industry presents a number of barriers to entry in terms of dealerships and territories which can hinder a company’s ability to get certain products in certain areas.

“Franchising seemed sensible to us as we could, by distributing products through ourselves, remove any such barriers for our franchisees,” says Neal. “This meant that they immediately had access to a rage of great products at very preferential prices,” says Neal.

“We’ve done all the hard work, from getting the products to creating a really effective online ordering system that’s very easy to use; we’ve learnt on behalf of franchisees.”

Hot Box has spent a great deal of time honing its business in York and obtaining the right products. “Our success can be replicated elsewhere so long as our franchisees follow our lead and don’t deviate from the products and services that we suggest that they provide,” says Neal. “There is a high mortality rate amongst

fledgling stove businesses because of barriers to entry and poor product choices leading to issues with installations.”

The basic franchise package includes everything a franchisee needs to start an installation business; Hot Box will even supply the firewood. It can also tailor a package to a franchisee’s individual requirements. “You can either run it from a van, a small warehouse where you can take deliveries and keep some stock or you could go for a retail outlet and run your business from there; it’s really down to the individual and what they want to do.”

In terms of training, there are a few very specific courses that franchisees need to attend in order to gain an initial insight into the solid fuel industry. “We are more than happy to offer as much support as necessary until our franchisees feel confident and are always on hand to talk through any issues even if we are not able to physically be there,” says Neal. “A franchisee is part of what we have worked very hard to

The old adage that ‘first impressions last’ is very appropriate

build and supporting them is part of our role as franchisor.”

It is imperative that Hot Box has a good working relationship with its franchisees. “If you cannot immediately find common ground with a person you are unlikely to be able to build a sound working relationship,” says Neal.

“The old adage that ‘first impressions last’ is very appropriate.” Ultimately it is Neal’s aim to have 30 franchises throughout the UK. Fundamentally, one of the biggest challenges in the solid fuel industry is avoiding cowboys doing installations badly, which presents a huge risk to the homeowner. “As the industry develops, more regulation will be imposed. I would like to see Hot Box at the forefront of this as a trusted household name that offers its customers not only the installation but annual service and maintenance packages to ensure safe and proper use.”

Whatever way you look at it, Hot Box is firing on all cylinders.

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Sanondaf backs up its bestin-class products and services with unparalleled training and support. This prepares new franchise owners not just on disinfection but on successful business ownership, with marketing and operations guidance from the best in the business.

It’s not what you spray?

It’s how you

SPRAY IT

With no High Street competitors, a Sanondaf franchise offers you the opportunity to be your own boss and operate your own TOUCH-LESS disinfection business using the Sanondaf process in a protected territory servicing local and national contracts.

Highly effective at killing 99.99% of bacteria, mould, fungus and hazardous germs without posing a threat to humans, animals or plants and can operate in a wide variety of sectors including Healthcare, Education, Transport, Farming, Hospitality and Catering.

No Wipe No Rinse No Cross-contamination Can be used in all Sectors & Industries 100% Eco Friendly & Bio Degradable

How much does a Sanondaf franchise cost?

The franchise package is £20,000 and this includes the initial franchise fee, all training and your starter pack which includes Sanondaf machines and chemical, uniforms and safety equipment, initial stationery and bespoke marketing material.

Low Cost & High Income Territory Exclusivity Business Support Industry Leaders

We are offering single unit, territory and regional franchises with a gross profit margin achievable in excess of 80%.

Tried & Tested

We are looking for business owners and entrepreneurs with a strong demonstrable track record of success who can recognise an exceptional business opportunity and who have the depth of talent required to drive dynamic business growth for this unique service in their local market.

www.sanondaf.uk.com • franchise@sanondaf.uk.com • 01236 702028 Atrium Business Centre, North Caldeen Road, Coatbridge, ML5 4EF Sanondaf have just been voted Best New Business at the Lanarkshire Business Excellence Awards and is the first European disinfection and decontamination franchise.

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GREAT TO WORK WITH

®

BE YOUR OWN BOSS WITH A MAC TOOLS FRANCHISE 4

Part of £7 billion global organisation Stanley Black & Decker

4

The strength of world famous brands like like Mac Tools, Facom, Britool Expert & DeWalt

4

Opportunity to earn £50,000 - £75,000 a year

4

Be your own boss in a market worth £150 million

4

Professionally-equipped van stocked with some of our 18,000 strong product line

4

No ongoing royalties so you keep 100% of your profits

4

Head office support and a comprehensive training programme

4

We now offer two options to finance your Mac Tools franchise:

POTENTIAL TO EARN OVER

£75,000 pa

- With £15,000 liquid capital and a £35,000 bank loan you receive our highest trading terms - With £3,750 liquid capital and a £8,750 bank loan you receive our lower trading terms

with our new low investment level

“After days out with other franchisees I saw what can be achieved. The rewards, job enjoyment and satisfaction were obvious and lead to an easy decision to pursue the chance of becoming a Mac Man”

Steve Marchant Mac Tools Northampton

08450 6000 60 www.mactools.co.uk franchise@mactools.co.uk EliteFranchiseApril2015.indd 1

Mac Tools UK

MacToolsUK

Mac Tools UK

+MacToolsUK

Mac Tools UK

27/03/2015 10:52

DO YOU WANT TO BE PART OF AN INDUSTRY LEADING PROGRESSIVE BRAND? As part of the franchise package, Envirogroup franchisees receive: • A Franchise Licence permitting them to trade under the name and style of the Envirogroup • A comprehensive initial and on-going training programme • A comprehensive technical and operational support package • Use of Manuals detailing the company’s methodology • Vehicle livery and racking • An exclusive trading territory • Specialised equipment • A professional initial launch package • Own website • Exceptional individual telemarketing campaign in your exclusive territory

Franchise Investment Prospective franchisees will be required to invest £29,500 + VAT. For this fee, all items of the Envirogroup’s Franchise Package will be included and delivered. In addition, a provision should be made for a minimum of £6,000 for working capital.

Envirogroup is a truly distinct brand and the combination of its attractive vehicle livery, modern website, own label products, bespoke software and servicing guarantees for its customers, make it a distinct and exciting franchise opportunity.

At the Envirogroup, we thrive on success by providing our clients with the highest possible service levels, ensuring the development of long-standing business relationships.

Working to ISO 9000-2008 quality: ISO 14001 Environmental and OHSAS 18001 Health & Safety Standard, as audited by the UKAS accredited body, URS, our goal is to develop a national and international franchise network that is universally respected

For more information please call: 028 4175 4035 email: info@envirogroupni.com www.envirogroupfranchising.com

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New investment level ÂŁ19.5k +VAT Envirogroup have business ready to pass on to franchisees with major UK companies in: North West, Scotland, North East, Birmingham, South West and London Get a green light for your own business with our guaranteed funding opportunity - you only need 50% of our investment fee the rest can be borrowed once approved.

Follow us

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ANALYSIS

Live and E learn

Franchising offers a great way for people to make a living educating the next generation, giving budding tutors a system of support whilst running their own business

ducation. Education. Education. Listing his three main priorities for a Labour government way back in 1996, former prime minister Tony Blair touched on something we all know to be true: education is vital. This is something clearly borne out by the wealth of education franchises in the UK. But what is it about the franchising model that lends itself so well to education? And what kinds of people are attracted to buying an education franchise?

WORDS: JOSH RUSSELL

Firm foundation

With a heritage of more than 60 years working in the education space, there’s few better to speak to than Kumon, the supplementary education franchise. “Despite being this global corporate organisation, Kumon was founded purely as a way for a father to help his son,” says Seán McKeon, franchise development manager at Kumon Educational UK & Ireland. Founded by Toru Kumon in 1954 as a way to help his son Takeshi brush up on maths, the franchise quickly spread like wildfire through its native Japan, before setting its sights on international expansion. “Today the Kumon programme is studied across 48 countries with approximately 4.3 million students,” he continues.

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ANALYSIS

In McKeon’s eyes, a significant benefit of education franchises is that they help individuals cut their teeth in teaching by offering them a professional framework within which to work. “There are a lot of passionate educators out there who really want to have the flexibility that being their own boss offers,” says McKeon. “But, coupled with that, they often lack the experience of having run or set up their own business.” A real benefit of the franchising model is it allows these individuals to get involved in the industry and start helping kids, whilst knowing they have the support network that comes as part and parcel of operating under an established brand.

McKeon also feels another strength of education franchises is that they can offer valuable support to the existing education system. “The demands on our state system do mean that parents are increasingly looking for different ways to supplement their child’s education,” he says. The strain state schools are under is only exacerbated by the fact that the next generation will have to fight ever more fiercely to secure a footing on the career ladder. “We are in an ever increasingly international market and competition is high not just for jobs but for university places,” he says.

One way Kumon helps address this issue is by aiding students in developing skills that will give them the leg up they need to really benefit from state education. “It doesn’t just develop a child’s English or maths,” McKeon says. “It instills in a child a set of lifelong skills that teach them how to learn and study, as well as developing their self-study disciplines, problem-solving skills and analytical thinking.”

Beat of a different drum

Angie Coates, managing director of Monkey Music, the music class franchise, is no stranger to the world of music, having trained both as a musician and a teacher prior to setting up her franchise. After spending some time teaching pre-school children Coates began to realise how music can help facilitate a young child’s development. “I was a musician so I used music as a tool to support all aspect of development at the heart of the curriculum,” she says. Monkey Music was naturally born from this premise; the franchise now offers music classes from threemonth to four-year-olds, giving them their experience with music learning and play.

Part of the value Coates believes education franchises offer are the benefits they can impart for both the children and the education system.

“Any sort of educational opportunity that you can give your child from a very young age is absolutely brilliant for them,” says Coates.

Beyond giving a budding Beethoven their taste of the world of music, this kind of franchise can

A lot of passionate educators really want the flexibility that being their own boss offers Seán McKeon, Kumon Educational UK & Ireland

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ANALYSIS

Images courtesy of: Monkey Music (L) & Tutor Doctor (R)

Doctor, a franchise that focuses on one-onone tuition and now operates in 15 countries across five continents.

Whilst the majority of franchises focus on creating a standardised model that impart a broad range of softer skills that can can be replicated uniformly across significantly impact a child’s future education. the network, Tutor Doctor focuses “Having done Monkey Music, they’re more on creating a plan that tutors can confident, they’re more sociable, they listen tailor to the individual child’s better,” she says. “Because they’ve been needs. “We don’t use a standard involved in group activities and interacted curriculum for all the kids,” says with other children, they’re going to be better Martinez. “Our certification off when they start school.” program gives tutors the tools This is partly why she feels many franchisees they need to identify the learning are drawn to this kind of opportunity. “Lots style of each kid – kinaesthetic, of people feel passionate about education and visual or auditory – teach based Angie Coates, Monkey Music the role that music can play in education,” says on that learning style and adapt Coates. Whilst franchisees will share certain to the learning rhythm of the things in common – inevitably being passionate about helping children student.” This has helped Tutor Doctor create and owning their own business will be a factor – one of the things a replicable model that franchisees can use to Coates finds most inspiring about the industry is the diversity of people best serve pupils’ needs. involved. “There are so many different personalities of people that own One of the things Tutor Doctor feels makes education franchises,” she says. “We come from all walks of life so it’s education such a great opportunity for quite an eclectic mix of people.” franchising is that it addresses a universal And Coates believes that there will always be massive potential for need. “This is not like, ‘I want to go to a sushi innovation in the sector. “Twenty years ago, it was not common to sign restaurant’,” says Martinez. “It’s, ‘our kid is your baby up to a course of classes,” she says. “It was unheard of really.” struggling and, if we don’t do something, he Monkey Music has been at the forefront of driving this expanding might not pass to the next grade’.” This means market, helping to cement the concept of classes for babies and toddlers. that education franchises present a golden Coates feels this demonstrates the huge opportunities for innovation opportunity that cannot be overlooked, as they there are in the education market. “Everybody who’s currently in the address a demand unlikely to ever go away. market has just got to keep getting better and better,” she says. “And “The need is always there,” he says. “All parents there’s always room for people to come through and do new things.” want the best for their kids.”

And this is definitely borne out by the Tailored teaching economics; Martinez reveals that the current As with any good business, the best franchises address clear pain points. value of the UK industry is £6bn a year and Tutor Doctor, the tutoring franchise, is no exception. Having run his that it is only set to increase from there. “The own learning centres in North America, founder John Hooi identified growth that it’s been experiencing is 7% to that the format wasn’t providing the best learning experience for 10% a year,” says Martinez. “By 2020, it’s students. “Learning centres teach at a group setting, they go at a rhythm expected to surpass $122bn worldwide; that’s that is not tailored to each student and the learning style of each child about £80bn.” In light of this, it seems the was not considered,” explains Rogelio Martinez, VP of international opportunity for education franchises is set development at Tutor Doctor. To address this, Hooi founded Tutor only to increase exponentially from here.

There are so many different personalities of people that own education franchises

32 elitefranchise April 2015

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31/03/2015 23:20

Ableworld

Franchise Opportunity Ableworld, one of the UK’s leading mobility and home care retailers, is looking to award a limited number of franchises for its successful retail and stairlift businesses.

According to government statistics, in 10 years time over 25 per cent of people will be aged over 65 and the figures for those over 80 and 90 are even more striking. Ableworld’s products and services are designed to capitalise on this growing market and you can capitalise too, as an Ableworld franchisee.

Franchisees will get: • Two integrated businesses for one price • The opportunity of earning up to £95,000 p.a. by Year 3 • Use of the Ableworld™ brand in an exclusive territory • A first class training and support programme

Franchisees will need: • Drive, energy and enthusiasm • A customer service mentality • A passion for helping people • The desire to want to run their own business in a growing market

033EliteFranchise0415.indd 1

For more information call

01270 627 185 or visit

www.ableworldfranchise.co.uk

31/03/2015 20:22

Not just a pipe dream!

Make you dream a reality and become your own boss today with:

We are looking to expand nationwide and we are seeking highly motivated individuals or couples who are enthusiastic, good communicators and have a desire to succeed. By choosing Clear Brew Ltd, you can become your own boss, running a highly successful franchise with your own huge protected territory, comprehensive training package, full equipment pack and full ongoing support.

Complete Franchise Package £12,500 +vat • Fantastic business opportunity

• Comprehensive franchise package • Huge protected territory • High profit margins

• Massive growth potential • Excellent daily cash flow • Grow at your own pace • Full training provided

• Full on-going support • Vital repeat service

For more information email: enquiries@clearbrew.co.uk call: 0800 7810 577 clearbrew.co.uk

Clear Brew FP Advert Apr15.indd 1

27/03/2015 10:36

s coaching t r o p s g in w o ies. est gr The UK’s fast hools and local communit sc provider for

rn on Proven restu ent tm e your inv

Reasons to become a PTC Franchisee

y compan We are a bition full of am sion and pas

Let’s get the children of Britai n active again!

Top class ambassadors to support yo ur franchise

Great job satisfaction

To start your journey call us on

01709 913600 www.ptcsports.co.uk/franchise or e-mail info@ptcsports.co.uk

PTCGroupUK

@PTCGroup_UK

Cent Building, Sheffield Road, Rotherham,S. Yorks, S60 1DX PTC Sports is part of the PTC Group

EliteFranchiseApril2015.indd 1

Endorsed by Muzzy Izzet, Steve Walsh, Steve Claridge and Paul Nixon

27/03/2015 10:55

Your Franchise is at Risk!

Strengthen Your Brand

Best practice guidelines

You can mitigate this risk and protect your brand with Concordia, because we will train your Franchisees to identify early complex employment situations, and will support them through active case management.

Strengthen Your Bottom Line Comprehensive HR policy pack

Employment & skills training for Managers

Empowering you and keeping you informed

Employment related disputes are time consuming and expensive. Even when employment tribunals rule in favour of the employer.

Did you know: • Discrimination awards in 2013/14 have exceeded £200,000, not including legal expenses incurred (frequently a multiple of the award themselves)?

• Some awards can put a franchisee (or even possibly You!) out of business with the highest unfair dismissal award in 2013/14 being £3,402,245!

On-site Investigation

Professional support

Coaching

We are your partner and remain with you every step of the way

Employment Practice Liability insurance

Strengthen Your Value Proposition The service we offer will add further value to what you currently offer to your franchisees, and will further differentiate you from other Franchisors. By grouping across the entire franchise, similarly to a “shared service” approach

give our team a call 03300 889 637 or visit www.concordia-employment.co.uk To find out more about protecting your franchise

Complete Financial protection

Concordia Employment Services Limited is an Appointed Representative of Ambant Underwriting Services Limited, which is authorised and regulated by the Financial Conduct Authority.

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31/03/2015 18:58

Guiding the way

WORDS: JOSH RUSSELL

Going from a New Zealand-based venture with just 19 sites to a global childcare franchise with a presence in five continents, Sherpa Kids has found a way to balance rapid expansion with a personalised touch Franchisees have so much flexibility to change the structures that we use Vicki Prout, Sherpa Kids International

T

aking care of people’s children requires a personal approach and, for this reason, it may seem incompatible with a truly consistent global brand. But Sherpa Kids, the international childcare franchise, has created a model that enables franchisees across countries as far afield as Canada, South Africa and Australia to tailor their offering to individual children’s needs. And it has been able to achieve this with a little bit of tech and a whole lot of franchising experience.

Vicki Prout, managing director of Sherpa Kids Australia and co-director of Sherpa Kids International, is certainly no stranger to international franchising. After 12 years serving in the Royal Australian Navy, she bought a pet food business and quickly helped it to triple in size. Once she had sold the business, she went to a franchise show to scout out opportunities and bought a promotional products franchise, of which she became state master. “Due to my success there, they asked me to come over to England and launch the pilot, which I did in 1998,” she says. “We then sold 80 franchises off the back of that.”

By this time Prout was looking to return to Australia. During the five years she spent growing her franchise in the UK, she’d met the directors of Cartridge World. As the ink and toner franchise was based in her native

Adelaide, she decided to approach them for a job – and they took her on. “They had 436 stores,” Prout says. “By the time I left they had 1,604 in 40 countries.”

Understandably, after such an intensive period, Prout was drained and looked to change gears. She headed to New Zealand and set up Sherpa Group, a consultancy firm. “I was working with a lot of businesses to help them franchise or license or grow,” she says. It was whilst attending a franchise show that she first came across Safe Kids In Daily Supervision (sKids), the franchise that would one day become Sherpa Kids. “They were looking to come across to Australia so they engaged my consulting company Sherpa Group to do a market entry plan,” she says.

This was when she first met Dawn Engelbrecht, CEO of sKids New Zealand and co-director of Sherpa Kids International.

Engelbrecht wasn’t a founder member of sKids; her involvement with the childcare franchise actually began as a franchisee. But eventually she and her business partner bought out the original franchise owner and became the franchisors for New Zealand in 2006. After they met Prout through her consultancy work, she seemed like the perfect addition to drive the brand’s international growth. “They liked me, I liked them,” Prout says. “So Dawn and I joined April 2015 elitefranchise 37

Guiding the way.indd 1

31/03/2015 23:21

A business opportunity that works around you!

EXCELLENT EARNINGS POTENTIAL • REWARDING • SIMPLE TO MANAGE • FLEXIBLE WORKING HOURS

Would you like a better work/life balance?

Ovenclean is the longest established and most successful oven cleaning franchise in the UK. With over 27 million households nationwide, Ovenclean franchisees provide specialist services to a large, virtually untapped marketplace.

The Ovenclean franchise model has been developed to suit individual lifestyles and business aspirations. Low overheads and the flexibility to dictate working hours, benefits franchisees wishing to retain control over their work/life balance whilst also delivering high profitability and great job satisfaction.

AS SEEN ON

TV

“It was a really easy decision, I love being my own boss” Robbie Freeman, franchisee since 2010

 Massive, virtually untapped marketplace  Potential to earn £1,000 per week*  Regular, repeat business  Flexible working hours to suit your lifestyle  Potential to expand to multi-unit operation  Unique cleaning system and products

Call now for more information

0800 988 5434 www.ovenclean.com

*Based on existing franchisees

We support, you succeed.

With unrivalled training and ongoing support, together with regular national television advertising, extensive marketing campaigns and a UK-based Call Centre passing on £32 million worth of repair leads last year alone, brand leader ChipsAway provides a proven business opportunity and the potential to turnover £80,000+pa and generate a great living from day one!

❱ ❱ Leaders of a multi-billion pound marketplace ❱ ❱ Full training & ongoing support ❱ ❱ National TV advertising as standard ❱ ❱ Potential to turnover £80,000+pa ❱ ❱ Guaranteed funding available

For your FREE information pack please contact us on 0800 731 6914 or visit www.chipsaway.co.uk *Guaranteed funding is subject to availability and available to candidates approved by ChipsAway International with a minimum personal investment of £15,000. Total Franchise Investment £29,995+VAT.

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Approved Centre

27/03/2015 11:17

INTERNATIONAL

forces and we went international together as 50/50 owners.”

One of the first things the team decided to review was the franchise’s brand; whilst sKids had proven popular in the New Zealand market, the team decided it wasn’t the best name for international expansion. “My consulting firm was getting really good reviews and raves and comments about its name,” says Prout. “Sherpa is Tenzing Norgay; when you look at him he’s confident, he’s an expert, he’s a guide.” This made it a great analogy for a childcare franchise, particularly one so set on global expansion.

And it has certainly lived up to the fearless reputation credited to its namesake. Since beginning expansion in 2011, Sherpa Kids has already grown rapidly. Not only has it added Australia but it sold the master rights to England in 2012, Ireland and South Africa in 2013, Canada in 2014 and the Middle East in the early part of this year. “It’s a bit quick,” laughs Prout.

“But we’re experienced; I’ve been franchising for 18 years so that helps.”

Prout credits its ability to expand to more than just the pair’s experience in international franchising though; first of all, demand plays a significant part. As we increasingly work longer hours and schools become more stretched there’s a real need for childcare brands to take up some of the strain. “Parents are all working much longer and nearly every day in the paper you see that there are stress points in schools,” says Prout. “Teachers have got their full-time job to do, never mind worrying about, ‘what are the children going to do between three and six?’”

This has meant there is a huge demand around the world for franchises like Sherpa Kids.

But there’s a little more to it than time-poor parents and schools. While many franchises focus purely on replicability, localisation is a key thread of Sherpa Kids’ offering and is helping it to expand to new locations with ease. Regulations can vary massively from country to country; OFSTED standards are entirely different to equivalents in Australia or South Africa. “We decided to use the country master mythology to franchise because of that localisation and regionalisation of the documents,” says Prout. “We needed someone to come in and own them in each country.”

However, even outside the localisation usually afforded by master franchising, Sherpa Kids franchisees are much freer to tailor their offering to the requirements of the local area. “Franchisees have so much flexibility to change the structures that we use,” Prout says.

Sherpa is Tenzing Norgay; he’s confident, he’s an expert, he’s a guide Vicki Prout, Sherpa Kids International

April 2015 elitefranchise 39

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BE YOUR OWN BOSS We provide all you need to own your own commercial cleaning business!

Every day nearly 11,000 JAN-PRO owner-operators across the world bring our clients the kind of high quality service we not only promise, we guarantee. It’s a reflection of the commitment that comes from the best training, equipment and measurable processes available. More importantly though, it’s a commitment that begins with a positive attitude and a drive to always do better, and that is what makes JAN-PRO a different kind of commercial cleaning company.

Training - Guaranteed Customers - Financing - On-going Support The Processes Are Ours. The Benefits Are Yours.

• Jan-Pro Regional Directors provide all your sales, marketing and admin support • You choose your investment level and working hours - part time or full time • Training and ongoing coaching to help you build a business and your future • The Entrepreneur Magazine 2010 Report went on to rank JAN-PRO as the Fastest Growing Franchise globally • A JAN-PRO® franchise allows you to make investment decision that best suits you, and then provides you with all the systems, support services, and training you need to be successful

Industry Recognition for JAN-PRO In the latest Franchise 500 Awards Entrepreneur Magazine ranked JAN-PRO #1 in Commercial Cleaning and the Fastest Growing in Commercial Cleaning Overall. In addition JAN-PRO is the only franchise commercial cleaning company to have ever been ranked as the Fastest Growing for three consecutive years, 2008-2010.

No one Supports you Better To learn more about JAN-PRO, please visit: www.jan-pro.com or contact your local JAN-PRO repesentative Ann Mary Wardman 07933 753 228 email: annmary.wardman@jan-pro.com

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Commercial Cleaning with a Difference 31/03/2015 20:23

INTERNATIONAL

“It’s all down to what that school’s or individual child’s needs are. It’s done locally.” This makes it something of a curiosity in franchising terms as the model can be adapted far more than one would usually expect for an international franchise. “We’ve got access to global lessons and themes but it’s really then supported by a local owner,” she explains.

Whilst managing this across an international franchise empire might sound like more than a slight headache, Sherpa Kids has a secret weapon up its sleeve. “We have an online platform instead of having traditional operations manuals in hard copy that we can’t change,” says Prout. “Our changes can be immediate.” This means that the franchise can understand what is happening across the entire brand, as well as roll out new best practice or react to legislative changes across the network. “It allows us as the franchisors to know what’s going on there so we can advise and add value,” she explains.

Its ability to tailor its service exactly to the requirements of local parents and schools has proven a hit during its exploration of our fair shores. The franchise is currently working in six schools in London; as its presence grows it has found demand begin to soar. “We’re starting to get the groundswell from parents saying, ‘I want to enrol in this school but you

Nearly every day in the paper you see that there are stress points in schools Vicki Prout, Sherpa Kids International

haven’t got after school clubs,’” Prout says. “And, as I’ve said, it’s hard for schools to offer them.” This means Sherpa Kids has found the enquiries are now coming in thick and fast.

However, despite this, the franchise isn’t letting itself be drawn into growth that is unsustainable. “We won’t let the tail wag the dog,” says Prout. Rather than splurging money on advertising and finding itself unable to keep up with demand, it carefully identifies areas that can best support a Sherpa Kids franchise. “The business model means that around 3,500 enrolled students is one franchise,” she says.

“That might be ten, 12 or 14 schools in one area.”

Even factoring in the significant international growth it has seen in the last five years, Sherpa Kids isn’t rushing its expansion plans. “We’re getting enquiries around the world every day but we plant them,” says Prout. The franchise is striking a balance of controlled yet significant growth that will consolidate its position on the international stage, priming new markets as they become ready and organically growing the national franchise base from there. And when the time is right – what then? “Global domination,” Prout laughs.

April 2015 elitefranchise 41

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31/03/2015 23:21

Build an asset for your future with your own Accountancy Practice TaxAssist Accountants are the UK’s leading Winning Tax and Accountancy Franchise. With over 220 shops and offices serving over 52,000 clients we are continually growing across the UK and Internationally.

Operating from highly visible Shop Front locations, each franchisee provides a range of Tax and Accountancy services to small businesses. The primary role of a TaxAssist franchisee is Business Development and Practice Management, you do not need to be an Accountant to join us - you will employ Accountants for your production work. With our Award Winning training we will support you in building a successful business and a profitable asset for your future.

We are looking to expand our network and our opportunities across the UK. To be a successful TaxAssist Accountant you must be able to demonstrate high levels of financial acumen, excellent communication skills and a passion to grow and drive your business.

When joining TaxAssist you will receive an Exclusive Territory, Comprehensive Training, Technical, Business and Marketing Support and the experience of our highly skilled Support Centre Staff - all that you would expect from a franchisor with nearly 20 years’ experience.

To stand out from the crowd with our fresh approach to Accountancy and to be a part of our successful Network please contact our Recruitment Team to learn more about this opportunity on; 0800 0188 297 or info@taxassist.co.uk Follow us @franchisetax

www.taxassistfranchise.co.uk

EliteFranchiseApril2015.indd 1

27/03/2015 10:57

FINANCE

Expect the unexpected Franchisors need to be increasingly mindful when finalising the predicted franchise costs for franchisees, whilst franchisees need account for small costs racking up

WORDS: JADE SAUNDERS

B

usinesses in the UK are feeling the brunt of rising costs. We are all told to expect the unexpected and prepare a rainy day fund but research by AXA Business Insurance found that business leaders are underestimating business costs and as a result facing nasty surprises. Franchisees are just as susceptible to unexpected costs and franchisors can often support new franchisees better by considering what other costs could be faced and need to be accounted for.

The AXA research showed that the biggest shock to businesses starting out was the cost of employees: 33% of leaders stated that salaries racked up a higher bill than they anticipated. Determining a salary for each employee is daunting for any business leader. Pay too little and risk a lack of talent; pay too much and wave goodbye to hard-earned cash. For franchisees, the suggested salary for each role will be on their franchise guide. However, many franchisees neglect to factor in the varying regional salaries.

Desirie Lea, director of Morris & Co Chartered Accountants, says it’s not as simple as some franchisors may think. “Look at it realistically – look at what the given rate in the area is. This is particularly relevant to new franchisees; they do have to look at what the going salary is in the area and whether or not they might have to pay more.” Lea suggests that salaries can be calculated according to the nature of the franchise industry along with the regional area. “You have also got the employer’s National Insurance; that is the element that the business has to pay on behalf of the employee,” warns Lea. “But, quite often, that is not necessarily factored in, particularly when the franchisees are starting out.”

For businesses new to franchising, Lea also warns that many franchisors often neglect to factor in the cost of support staff around them during the franchising process.

However, employee costs can extend further than just salaries and employer obligatory costs. Many franchisors hold awards ceremonies and Christmas parties for all of their

It’s just about carefully monitoring and trying to control the costs whenever possible Desirie Lea, Morris & Co Chartered Accountants

April 2015 elitefranchise 43

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Join the UK’s leading packing and shipping specialists

PACK & SEND is very different from a simple courier or shipping company Our retail-based one-stop shop franchise for collection, packing and delivery to anywhere in the world is unrivalled in the UK and is used by individuals and businesses alike. We are now in the process of expanding our UK store network, and are keen for more high-calibre candidates to join the team!

• High gross profit margins • Rapidly cash generative business model • No direct competitors • 20+ years of trading success since our global launch in Australia • Low staffing levels and B2B trading hours • Low levels of non-perishable stock • Comprehensive pre-launch training • Hands on in-store support post-launch To learn more about owning your own PACK & SEND store contact our franchise development team now on 0118 958 4628 email them at franchises@packsend.co.uk or visit packsend.co.uk/pages/uk-franchise-opportunities/

Pack Send.indd 1

27/03/2015 10:40

FINANCE

franchisees. This is a nice gesture to recognise those who have faith in the franchisor’s business model and rewarding those dedicated franchisees creates a close community and brand loyalty.

Caroline Sparks, co-founder of Turtle Tots, likes to give gifts to each franchisee at the Christmas party. “Now that we’re established, this is a normal part of our annual cashflow,” reveals Sparks. “But when we started, we thought it would be really nice to take everyone out at Christmas to say thank you but we hadn’t put the money aside to do that. You are more inclined to think about website, leaflets, marketing and getting the first franchisee.” When launching Turtle Tots, a lot of the costs in franchising were upfront and calculated accordingly. But all was not well elsewhere: Sparks and her co-founder encountered a legal issue. “We had an issue where someone breached our trademark.

There’s just time and money taking legal action on that type of thing that we hadn’t really thought of,” Sparks says.

There could always be something that crops up unexpectedly and cripples finances, so having a rainy day fund for life’s hurdles can prepare leaders. Lea advises that another cost that business leaders often overlook is sickness; if a franchisee becomes ill, for example, the franchisor will need to subcontract or call somebody in to carry out operations in the boss’s absence.

The AXA research also found a further unexpected cost was the price of keeping a fleet moving. 13% of business leaders felt that fuel was their biggest cost; this can be particularly high for logistics franchises that rely heavily on transport. “Over the past couple of years they have taken quite a hit because the price of fuel has gone up quite a lot,” says Lea. “It’s all about planning and you just have to consider such costs. It’s difficult but it’s just about carefully monitoring and trying to control the costs whenever possible,” she says. For logistics franchises and man-and-van franchises, budgeting for any vehicle breakdown and wear and tear is vital in case of the inevitable punctured tyre or worn brakes.

Whenever you’re faced with any kind of expenditure, think: ‘Actually, what will the return on this expenditure be?’

Caroline Sparks, Turtle Tots

Other costs that raised eyebrows were stationery and printer ink: 13% of those surveyed by AXA revealed that the cost of fine stationery racked up higher costs than anticipated. “I think most of our franchisees have a bit of a penchant for stationery,” Sparks jokes. “I can think of one franchisee recently who thought, ‘Actually, I would really like nice envelopes to send out my stuff in,’ and those things, while they are nice to have, aren’t really essential at all.” Turtle Tots’ iconic pink and green branding is very visually pleasing when paired with matching stationery but Sparks tries to get people to pull back on the nice-to-haves and to look into the return on these expenditures. “Whenever you’re faced with any kind of expenditure, think: ‘Actually, what will the return on this expenditure be?’

Having a nice file for leaflets to go in isn’t going to bring in any more customers.”

Different franchises will encounter different costs; some are part and parcel of the business world but others are dependent on the nature of the industry. “We give potential franchisees a cashflow forecast template,” Sparks says.

“On there are things like fuel and telephone bills. I think from our point of view, we try to capture everything that they could possibly be spending. But from time to time, like with any business, there are things that you don’t expect.” Sparks tells franchisees to have a contingency for anything – preparation is key April 2015 elitefranchise 45

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31/03/2015 23:22

Property Franchise Group

GENERATE INCOME OF £1/4M P.A. 95 OF OUR OFFICES ALREADY DO! “My partner and I previously worked for a national pub company in recruitment, training and customer service. We decided we wanted to take on a new challenge, setting up a property business. Within 2 years we broke even! Day-to-day business is fast paced and dynamic, something we both enjoy and we have already opened a 2nd office. Our aim is to continue to grow and we have already completed on an acquisition which has taken our managed portfolio to over 400 properties.

Being able to provide a sales service has made a big difference to our profitability and it is just the icing on the cake! In years to come we will have a business with a substantial asset value, providing many options for our future.”

Peter and Rani Grieve, Worcester and Gloucester Franchise Owners

01202 292829

propertyfranchise@martinco.com

Grow a valuable business with the 4th biggest estate agency and lettings business in the UK, 2nd largest in London.* With nearly 300 franchise offices across 5 franchise brands, we have a wealth of expertise to help you be a success in the property sector.

To find out how you can be as successful as Peter and Rani, visit www.propertyfranchise.co.uk

Book a place on our Discovery Meeting in Central London Tuesday 12th May 2015 6.30 - 9.00pm

* Based on number of offices

EliteFranchiseApril2015.indd 1

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FINANCE

We want licensees to come in with their eyes fully open, but inevitably there is always the odd thing that crops up Caroline Sparks, Turtle Tots

to avoid most mishaps. Each franchise has their own industry specific costs. For example, many franchises working with customer data hold a regulatory cost.

“All of our franchisees (and us) have to be signed up with the ICO [Information Commissioner’s Office] because they hold personal data about all of our customers. It’s only £35 a year but those sorts of little things can get overlooked,” Sparks explains.

“The main costs for our franchisees are hiring pools in which to teach their swimming classes. Pools vary massively in what they cost, we have some pools that are £10 per hour and we have some pools that are £120 an hour,” Sparks says.

“We say if you have an expensive pool, perhaps either you charge a bit more to your customers or you make sure you’ve got as many customers as you can in it so that you are not running it at a loss.” Sparks also notes that franchisees often don’t factor in their teacher kits that from time to time will need replacing due to being subject to wet and chlorinated environments.

Support from the big guys up top can go a long way for new franchisees facing the trials and tribulations of launching their own business. Turtle Tots provides a thorough cashflow forecast to franchisees, which details all of the expenditure franchisees will be making on a day to day basis. “We give them different scenarios: if you grow to teach 250 babies over the course of the first year then we think their expenditure on leaflets would be £200 for example,” Sparks says. “If you grow to teach 500 babies, then you are going to be doing a lot more mileage. So naturally, some of your expenditure will go up,” Sparks points out.

Lea advises that taking different scenarios into consideration is vital and franchisees will need to consider the costs of the region they plan to launch in. “The franchisor will have a model based on the representative cost, but the franchisee might not appreciate that some areas of the country might be more expensive. If you were to run premises based on an average cost, it might be £20k a year to rent, and that’s what the franchisors have in their model. But in London, it might cost £50k,” Lea warns.

The over-arching theme is: make sure you build in costs to cover the unexpected. “We want franchisees to come in with their eyes fully open, but inevitably there is always the odd thing that crops up,” Sparks acknowledges.

April 2015 elitefranchise 47

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31/03/2015 23:24

No+Vello UK are seeking owner operated, or management franchisees who are keen to develop with an internationally successful brand by operating or managing between 1 to 4 centres.

Could This Be You??

Our ‘Low Cost’* Franchise set-up includes the following:

?

?

• 3 Month local marketing plan • Marketing & advertising support • Patented IPL & +esthetic LED equipment • Initial stock of products • Premises advice & lease negotiations • All furniture and centre design • Full training & operations manuals • Cloud based software & Online booking

Over

1000

centres in 16 countries

& lots more!

*£ 15,000 Franchise Fee+ set up costs & equipment lease. Min. personal investment £22,000

For more information call Helen Thompson on: 033 3344 0105 or email: ukfranchising@nomasvello.co.uk Novello DPS.indd 1

31/03/2015 17:20

Why No+Vello?

With the back up and support of a global organisation together with your desire to run your own business we will help your business become successful from the moment you join our network. Our passion is your desire to succeed. Our industry leading equipment and treatments together with our flat rate pricing strategy will create loyal customers from the very start. You will have piece of mind from the full support of head office and will be able to advise you on anything from running your business to health and medical advice from our Head Quarters.

With over 1000 centres opened in the last 5 years you are sure to be investing in a highly profitable and rewarding business model. No+Vello is the undisputed, world leader in IPL hair removal and the first company to introduce sessions at a FLAT RATE for both men and women. After its creation in November 2007, No+Vello witnessed rapid expansion. An immediate success story, due to the broad customer appeal high demand for treatments.

Meet some of our franchise owners

Permanent Hair Reduction using IPL (Intense Pulsed Light Technology) & other Aesthetic Treatments are a growing market at present, more than 80% of women & 50% of men claim to have unwanted hair

Our Franchise Owners are attracted to our brand from all backgrounds. Whether it be owner operated or a management franchise No+Vello has the perfect model.

“Having spoken with owners of other centres, we know that the level of support we have been delighted to receive is the norm not the exception. And we also know that the support will continue now the centre is open. We couldn’t recommend the No+Vello franchise highly enough.”

Davina Stander – Management Franchisee Fareham

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WORDS: JOSH RUSSELL

Getting the word out

Forming links with the local community and getting their brand out there is vital for any franchisee looking to go the distance

W

hen running your own business, there’s no question that marketing can be the difference between success and failure.

And this holds just as true in the world of franchising. “Franchisees are seen as independent business owners,” says Caroline O’Connor, sales and marketing consultant at ads advertising & design, which handles the franchise marketing for Dream Doors. “Marketing is as vital [in a franchise] as if you’re opening up your own business.” Franchisees that want to secure significant returns need to get their brand out in the local area and begin to engage with the community if they want to keep the money coming in.

It can be tempting to think that when you’re buying into an established brand that it comes with a ready-made user base; after all everybody’s heard of Subway right? But a recognisable brand will only carry you so far. “There can be that perception when somebody buys a franchise but they learn very quickly that the hard graft is the important part,” O’Connor says. As with any area of franchising, with marketing you get out what you put in; O’Connor feels that, by the three to five year mark, the difference between those franchises that really commit to marketing and those that don’t is truly remarkable.

So how can new franchisees begin to get the word out?

Whilst the sheer breadth of traditional marketing mediums available can seem overwhelming, O’Connor emphasises that a blend is key. “There’s a million and one mediums you can buy, so it’s about identifying the way in which you can layer your marketing to get your message out there,” she says. Standard spots in local directories can form a good base, as can ads in the town paper or on local radio.

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SALES & MARKETING

Local links Belvoir Lettings

But one thing it is worth emphasising is that there are no instant returns on this kind of marketing. “What we often see with people is they book four to six weeks, then they say, ‘that hasn’t worked’ and they pull it,” O’Connor says. “They don’t understand that it takes time to build your engagement through media.”

This means, rather than splurging loads of money on a high-visibility blanket campaign for one month, it is better to invest one’s spend over a longer and more sustainable period.

Traditional marketing is only the beginning however; franchisees really wanting to make a splash need to get out and represent themselves in the community. Forming connections with other independent Word of mouth is retailers, getting involved with as strong as any local charities marketing or and community groups and media buying joining the Caroline O’Connor, local chamber ads advertising of commerce & design can all help a franchise come to be seen as an integral part of the community. “Word of mouth is as strong as any marketing or media buying,” she says. “The ones that have put a face out there effectively are the ones that are more successful.”

But it is important to recognise that the local community isn’t confined just to the physical world. “Depending on your brand and how you engage with it, social media is another community,” says O’Connor. “We advise our franchise owners to share strong imagery and post interesting stuff to engage people.” Whilst a franchisee’s customer base won’t necessarily always be looking to make purchases, maintaining a relationship and keeping the conversation going through social media keeps its brand fresh in their minds. “You are constantly reaffirming that you are there and that you are passionate about your business,” continues O’Connor.

These techniques can all help a

Vaughan Schofield, owner of Belvoir Lettings Wrexham, knows how important it is to engage with customers in the local area. “It’s imperative for any business to be seen as part of the community,” he says. When starting his franchise, he knew it would be vital to form connections in the local community, not just to engage customers but because he had no existing business contacts in the town.

“I wanted to be seen to be making a contribution back to the community that was supporting my business,” he says. “But, equally, I had to do it from a practical point of view as I was starting from scratch.”

Networking and relationship building certainly played a significant part in boosting the franchise’s fortunes.

Not only did Schofield join various business clubs and landlord associations but he built up a network of contacts in the construction and maintenance field.

“They are very often aware of properties that were currently being refurbished,” he explains. He also formed connections with big organisations like the University of Wrexham, the hospitals and the town’s technology park. “We would furnish them with a monthly email to say, ‘these are the properties that we currently have’, in case they had employees that wanted accommodation,” he says.

But it didn’t stop there. Another thread that has proven to be utterly invaluable is press coverage. “The local newspaper, the Wrexham Reader, phoned me up to ask, ‘would you like to write some articles for us on residential letting?’,” Schofield recalls. This helped cement the brand as the expert in its field. “It’s very effective because when property owners read these articles, it enhances your reputation as being someone who is knowledgeable,” he says.

Schofield has put a lot of effort into building his franchise but he is definitely now harvesting the fruits of his labour. “It’s surprising how easy it becomes once you get that momentum,” Schofield says. He compares it to getting a heavy weight spinning; it takes a lot of effort to get it moving but once you have built up the momentum, keeping things moving takes far less. “The trick is to never believe that it will always be self-generating,” he concludes. “You always have to keep on doing it.”

franchisee get its first customers through the door but how can they maintain these relationships in the long term? O’Connor refers to a franchisee she has worked with that does cookery demonstrations in the showroom at certain points throughout the year. “They invite existing customers back, they get them to invite new customers and they just keep re-engaging with their customers,” says O’Connor. This helps nourish existing relationships as well as cultivate new ones.

Ultimately reaching out to the community is going to be key to any franchisee looking for success. “People want to buy local, they want to buy from business owners they recognise,” O’Connor concludes. “So engagement with your local community is fundamental.”

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Insurance claims management & Building repair

Give your vote to

CONCEPT C

M

Y

CM

MY

Why choose us?

CY

K

The Concept Building Solutions Franchise Opportunity

What do Concept Building Solutions do?

Concept handles thousands of insurance claims, first assessing property damage and then preparing a work schedule and quotation. Concept then negotiates and settles the claim with the policy holder's Insurance company or appointed loss adjustor. Each Concept Claims Manager typically uses a local contractor base to carry out all property repair works.

EL EC TO UR

Concept Building Solutions provide you with a proven, results-driven structure for operating and growing your business. As a Concept Franchisee your earning potential will be considerable, with average franchisees earning a six figure sum.

FR AN CH IS EO PP OR TU NI TY

With Concept you will benefit from: • An established brand that has been franchising for over 12 years • The most comprehensive training package in the industry including an initial induction training course followed by the 200 day LEAP programme • A dedicated mentor from day 1 of your training with additional support from HQ based staff and field based surveyors with a wealth of knowledge in insurance and property repair • A business coach to assist you in developing your business in your territory • A National and local territory websites focussed on sales with a specific area PPC campaign • A multiple item Operation Pack allowing for a turnkey business model

MY

Concept Building Solutions has become the leading specialist in the industry providing an end to end solution for the management of full disaster recovery programs and national building repair and installation solutions.

If you would like to learn more about the Concept Building Solutions franchise opportunity and arrange an in-depth one-to-one meeting then contact Concept on

0800 037 0315 www.conceptpropertyclaims.co.uk

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From the forces

to franchising Leaving the army is a daunting prospect for service people. But for those looking to get back into business, franchising is an attractive option

WORDS: JADE SAUNDERS

T

he training that the forces personnel receive is second to none and their unique skills can be transferable across all industries. Each individual is highly trained to be disciplined, determined and able to work under extreme pressure. This training extends beyond life in the Army, Navy or Air Force; service personnel become equipped with valuable training that they can utilise in all walks of business.

One option that is well suited to exforces members returning to civilian life is franchising. Buying into a franchise gives individuals a tried and tested model that lets them be responsible for their own business.

For ex-forces who received a steady income for years, integrating back into society can be daunting if their career and income is uncertain. A franchised business is a proven success and more often than not a safe bet for individuals looking to be their own boss.

Just like starting any business, launching a franchise takes determination and the belief that success is achievable. In the forces, individuals are trained to be driven and goal-

didn’t really know anything else other than soldiering,” Darby explains. He started looking at his options whilst utilising the resettlement courses that the army offered. “I really fancied working for myself and I went to one of the franchise exhibitions in Birmingham and it just made sense,” he said. “It was something that somebody else had done and I could oriented and the structure of the forces can follow suit.” He’d always enjoyed working with be applicable to franchising as the support cars so it was a natural progression to tailor his network in the forces is similar to that between career to his passion with ChipsAway. franchisors and franchisees.

As his military experience and training has

helped progress his career, ChipsAway was Attention to detail a perfect fit for Darby. He has excelled as a Andy Darby, franchisee of ChipsAway franchisee and is one of the few ChipsAway car centre in franchisees Huntingdon, was at with a car a career crossroads centre. He It just kind of made sense upon leaving the will celebrate really; it was something that his 15th Royal Engineers after 11 years. He somebody else had done and anniversary served as a combat with the engineer in various company next I could follow suit different roles month. “Being Andy Darby, throughout his an engineer, Chipsaway career, stationed I was used mainly in Germany, to working with time served in Bosnia. Darby had the with my hands, working hard, long hours challenge of deciding his career all over again; outside and you need to be able to do that with a tough prospect for many but especially so ChipsAway.” Darby values the ability to master for ex-forces personnel who have lived a very new skills and attributes this to his time with different way of life to civilians. “I joined the Royal Engineers. His determination and as a boy soldier straight from school so I dedication led him to buy out his local accident April 2015 elitefranchise 53

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PEOPLE

repair centre so that he could complete bigger after years of working away from his family, jobs rather than wave goodbye to money he was Gaskell began to explore his career options. losing by recommending the local repair centre. “Family had come second and I wanted to adjust that so I started thinking about what Driving force I could do when I leave. You start to look After 28 years in the Queen’s regiment, Steve around at the opportunities out there and I Gaskell had worked his way up the ranks found coaching was quite a good niche for me. and finished his army career as a captain.

I thoroughly enjoyed it.” When reading Quest, Gaskell was stationed in Cyprus, Northern Ireland, Iraq, Afghanistan and Bosnia amongst other countries, often working under extreme pressure in harsh environments. Whilst in the latter part of his army career he began to develop his skills ready to transition back into civvy street.

He studied for a degree in Steve Gaskell, leadership and management ActionCOACH at Northumbria University sponsored by the Army. For most students, the dreaded dissertation means a magazine for returning armed forces, Gaskell many all-nighters but Gaskell faced unusual came across an advert for ActionCOACH, difficulties. “Trying to write a dissertation which led him to ExCeL in London for the in Afghanistan or finish off an assignment Franchise Show. “I had a conversation with in Iraq was a challenge.” He then started to the team on that particular day, which led me get involved with coaching in the Army and to think about buying a franchise and to ask

myself, ‘am I the right person for them?’ and, ‘is it the right business for me?’ Very soon I realised that ActionCOACH, in many similar respects to my military career, offered a great community and it was a no-brainer,” Gaskell says. He feels that he was able to utilise all of his transferable skills and leverage his passion for coaching.

“As a business coach I haven’t come across a challenge where I haven’t been able to relate it to my military history and my military experience,” Gaskell says. He left the Army in 2013 and in November 2013 he launched his ActionCOACH franchise – and has not looked back. “Since November I have had a great journey; I have absolutely prepared myself for the transition and I have been able to utilise all of my transferable skills.”

The systemisation and support network within franchising is very similar to the forces; it’s a tried and tested model for personnel to free themselves from the instructions of others and be their own boss.

As a business coach I haven’t come across a challenge where I haven’t been able to relate it to my military history and my military experience

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Why It’s Time To Open A Your Zone Fitness Franchise

The British health and fitness industry was worth over £4bn in 2014 90,000 PEOPLE IN BRITAIN USE A PERSONAL TRAINER REGULARLY

THERE ARE NOW 6,112 FITNESS FACILITIES IN THE UK, UP FROM 6,019 LAST YEAR

93 +

increase

50% When asked why people joined over 50% said it was for a new, unique gym experience

YOUR ZONE IS RAPIDLY GROWING THROUGHOUT THE UK WHEN ASKED WHY PEOPLE STAYED AT YOUR ZONE, OVER 40% SAID IT WAS DUE TO THEIR CONTINUED WEIGHT-LOSS RESULTS YOUR ZONE HAS AN AVERAGE ATTRITION RATE OF 2.5% PER MONTH - FAR BETTER THAN THE NATIONAL AVERAGE!

40%

2.5%

average attrition per month

Your Zone has provided group personal training for thousands of people since 2003

SINCE 2003

SUPERVISED EXERCISE VERSUS NON-SUPERVISED EXERCISE

Your Zone is a great opportunity to take advantage of an already tried and tested business model.

You’re given constant guidance and support, it’s a great way to take that first step in owning your own gym.

Your Zone Franchise Owner, Mark Stonebank - Colchester

Number of lbs lost

16 14 12 10 8 6 4 2 0 0

1

2

3

4

Months Without Group Personal Training

With Group Personal Training

J Sports Med Phys Fitness. 2009

yourzonestudio.co.uk/franchise E franchise@yourzonestudio.co.uk T 01268 200168

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PEOPLE

The changing world of franchisee recruitment When dealing with enquiries from potential new franchisees, you’ve got to get with the times. Bill Pegram, director of marketing at The Franchising Centre, says updating your recruitment systems for the digital age is the key to expansion

T

he world has changed in many ways in recent years. One major change has, of course, been the growth of the internet, which itself has accelerated the speed of change in many areas of life. Interestingly, it has had a huge impact on franchisee recruitment – unfortunately, most UK franchisors are yet to respond to this change.

A few years ago, if you wanted to buy a new car or a TV, what did you do? You went to a car dealer or an electronics store and browsed.

In short, you did your research in-store with the assistance of a helpful salesperson. What would you do today? You’d go online to do your research. Retailers have responded to this change in behaviour; for example car manufacturers allow you to spec your vehicle on their website so that you can see exactly what it will look like and how much it will cost. Electronics retailers give you full product descriptions and reviews to help with your assessment and enable you to buy online or honour their online offer in-store.

Either way, you will have done your research online and, even if you don’t buy online, by the time you walk through a retailer’s door you know exactly what you are looking for.

The internet has conditioned our behaviour to do our research online regarding any major purchase. And it’s not just for consumer goods.

Exactly the same principle applies in many areas of business, including how prospective franchisees do their research on which franchise to buy. And this is the very issue that most franchisors have failed to grasp.

The issue breaks down into two areas: firstly it’s important how franchisors make information available online to prospective franchisees. Secondly it’s how they respond to online enquiries. Many franchisors are starting to get to grips with the first issue and are making more and more information about their franchise available on their websites and by other means. But it’s in the second area that most fall short.

The internet has conditioned us to expect an instant response to any request we make.

Whether it’s a general enquiry, the provision of relevant information about a product or service or the provision of website live-chat services, we expect an immediate response and to be able to engage with the business we are dealing with at any time of day.

Now contrast this expectation with the way

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PEOPLE

most franchisors respond to an enquiry or request for information. The vast majority still attempt to phone the prospect and, possibly, send out a hard copy prospectus. Aware of a growing disconnect in this area, we carried out our own research to find out exactly what is happening in the franchise recruitment market with an extensive mystery shopper exercise. The results of the research were shocking.

Amazingly, 34% of franchisors who were mystery shopped did not even respond to a request for information. Of the remainder, 29% sent out a hard copy prospectus followed up by a phone call or e-mail, 51% sent out a PDF of their prospectus followed up by a phone call or further e-mail, 10% had no meaningful prospectus and the final 10% refused to give any information until after they had spoken to us on the phone.

However, the real shock was how quickly franchisors gave up trying to contact the enquirer. We found 35% only made one attempt to follow up on the enquiry and 18% only made two attempts before abandoning the candidate. So, all in all, 65% of the franchisors who were mystery shopped effectively abandoned the enquiry within about ten days or receiving it.

The internet has conditioned us to expect an instant response to any request we make Compare this with our new internet-conditioned expectations to immediately engage with any company and receive information when and how we want it. You can see how wide the gap is between prospect expectation and franchisor response. In fact, looked at from the prospect’s point of view, carrying out research into which franchise to buy must be a pretty frustrating experience.

As a part of our research, we took a long hard look at the US market and how franchisee recruitment is dealt with there. Not surprisingly it has been quicker to embrace change and US franchisors have adapted their franchisee marketing and recruitment systems accordingly. So the good news is this isn’t a problem without a solution. Yes, it requires an investment in terms of time and money to address the issue but many other sectors have done it and franchising will follow in due course.

We have demonstrated it is possible to produce a solution with our own franchise-enquiry handling process. It immediately engages the prospect, responds instantly to requests, feeds them the information they want, in the way that they want it, when they want it. It allows us to track prospects in real time, monitor their areas of interest and score them based on their level of activity, so that we can identify and concentrate on the hot prospects.

It has taken years of research and development for us to develop this kind of service but the game has changed and franchisors have to make this kind of investment to survive. And as franchisee recruitment is so fundamental to a successful business, franchisors are faced with a stark choice: adapt their recruitment systems to the internet age or get left behind by their competition.

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TECHNOLOGY

Protect yourself

C

WORDS: RYAN MCCHRYSTAL

Data breaches are at an all-time high so maybe it’s time for franchises to take more responsibility

ybercrime isn’t just the stuff of sci-fi; it can have a devastating impact on your business. Last year the accountancy firm PwC found that almost 70% of UK firms experienced an incident in 2014, which is higher than the global average. This coincides with some very high-profile data breaches. American retailer Target experienced something of a nightmare before Christmas in 2013 when a spill of information belonging to 70 million customers led to losses upwards of $148m (£100m). Similar incidents occurred with Office and Home Depot and they are by no means isolated incidents – we just don’t always hear about them. This is also a massive problem in the UK and small companies bear the brunt, making up 85.7% of hacking incidents.

Franchises are just as much at risk and can leave themselves open to attack if they don’t prescribe the right approach to security, both centrally and for individual franchisees.

Stuart Facey, VP of EMEA at Bomgar, a company specialising in enterprise remote support solutions for computers and mobile,

says IT security should be a much bigger concern for franchises. “A lot of bigger brands require that franchisees give the mothership access to their back office systems, and in that case security should be very important but based on what we’ve seen, it isn’t a top priority.”

Because there are now so many platforms on which you can store data, not having proper measures in place is very risky. “In the old days it was pretty straightforward as there were maybe only two PCs working through a server, but now, with everything being wifienabled, you’ve got a massive potential hacker problem,” says Facey. He cannot stress enough the importance of encryption when it comes to protecting data. “Consider if you were to leave your mobile device with your work emails or a USB stick on the train; if they’re not encrypted it’s a massive liability.”

Keeping data secure is a major responsibility and your customers trust you to keep theirs

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TECHNOLOGY

safe. If you lose it or expose it to others, you’re at liability for that exposure or loss. This can lead to lost revenue, legal and regulatory costs, and all the associated disruption to business. Franchises are built on brands and so reputational damage should be a particular concern. Why then are so many still so lax when it comes to security? “A lot don’t understand or are too busy selling, promoting and doing all those other essentials,” says Facey.

“IT is still largely seen as a service other than being business critical – until things go wrong, that is.”

Not all threats are new, however. Some of the most common breaches occur because of security risks that have been around for a long time – code injection or malicious web shells, for example. Innocent looking programmes that have been on your system for an age can also wreak havoc. Take PC Anywhere, a perfectly good product in its day but it has since been discontinued. Despite this it is still in use by some. “With PC Anywhere, if you aren’t careful you could leave ports open on your devices where you had a session running and so it was relatively simple for a hacker who knew about the programme to access your network,” says Facey. “Once they’re in they can start placing all sorts of malware and do naughty things.”

While no measures are 100%, software exists that will keep companies as well-protected as possible. The problem is that so many businesses aren’t using this software or don’t update theirs regularly enough. “If you kept upto-date with all your products and patches, you could be incredibly secure,” says Facey. “One thing we find, however, especially with larger companies, is that there is a ‘legacy’ product – one which they’ve been using for a long time – and you can’t modify, update or replace it easily, which can lead to security issues.”

Credit cards are of particular interest to hackers, and over the last three years British businesses have paid out more than £878,000 as a result of unauthorised access to cardholder data. According to card processing services company Worldpay, instances of fraud rose

Once they’re in they can start placing all sorts of malware Stuart Facey, Bomgar

XXXXXXX

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TECHNOLOGY

We’re now in a situation where there is a big gap in cyber liability in most businesses Maurice Logie, Moreland

by 80% in February alone this year, following the Christmas shopping period. Tim Lansdale is head of payment security at Worldpay and works with some pretty big names in the franchising world, including Clarks.

Lansdale recommends that when endeavouring to prevent data breaches, franchises should should be Payment Card Industry Data Security Standard (PCI DSS) compliant, which is a standard for organisations that handle branded credit cards from the major card schemes including Visa, MasterCard and American Express. “This inevitably makes your company more secure,” he says.

Once you are compliant Worldpay can work with you on a one-to-one basis at an affordable rate to ensure you stay on top of your IT security.

The cost of cyber liability and data cover is overall relatively inexpensive when compared to the damage that can be done. You can take the decision now to invest in some decent software, or risk not paying that £100 for another year and leave yourself open to all sorts of trouble.

As smaller companies often have less money to spare, they are most open to risk. It therefore makes most sense for a franchisor to include data breach prevention measures in their initial package to franchisors.

In his experience, it makes most sense for IT security to be more comprehensively included at the outset in the franchisor package.

Lansdale also recommends measures such as changing passwords, regularly testing your firewalls and destroying all card data records when you no longer need them.

Another area you could look into is insurance. Moreland is one of six brokers in the UK that has been chosen to pilot a new product to protect businesses against cybercrime.

“We’re now in a situation where there is a big gap in cyber liability in most businesses,” says Maurice Logie, director at Moreland. “They take it for granted but when it comes to insurance coverage the market is only now catching up.” But the UK isn’t alone – even in the US only 40% of companies have got cyber insurance. “It’s a big, big issue,” says Logie.

Everyone has a story, whether they were hacked or their credit card was used for something dodgy. The same is happening in the world of business – and a lot goes undetected. “If you’ve been the victim of cyber crime, you’re not going to put your hand up and admit it,” says Logie. “It’s a kind of iceberg syndrome in that here’s a lot happening below the surface.”

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Ethical best practice in the UK franchise industry

The Franchise Alliance (TFA) has been created to deliver a combination of services to the franchise industry for franchisors, and franchisees.

Our services are predominately designed to simplify the interaction between franchisor and franchisee to create more productive relationships that benefit all parties.

Other organisations delivering similar accreditations are expensive, exclusive and often are unwilling to move away from their pre-set rigid criteria for joining.

Want to know more?

Feel free to call us for a friendly chat

0845 862 6767 Or email...

Just drop us a message at info@thefranchisealliance.org

www.thefranchisealliance.org TFA Full page Ad.indd 1

31/03/2015 19:02

LEGAL

Last month the government quintupled court fees and it is those least able to pay that will be hit hardest

WORDS: RYAN MCCHRYSTAL

Day in court

D

o you have £10,000 to spare? This is exactly what your franchise would now have to fork out if it needed to recover £100,000 though the courts. As a result, businesses that have lost a significant amount of money may not have deep enough pockets to seek justice.

This is the result of the government going ahead with plans to hike up court fees on March 9 this year, despite uproar from both the business community and the legal profession. The Law Society launched a campaign against the proposed increases because of their size.

Seeking redress is more expensive than ever, and considering last year’s cuts to legal aid, you’d be forgiven for thinking that the UK’s legal system favours the rich. Many business owners will now see justice as simply not worth the hassle.

It used to be the case that if you were going

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The Oven Cleaning Franchise

from just

£9,950 + VAT

Practical | Professional | Personable

Your route to a successful future!

If you’re looking to join a highly successful and very profitable franchise in the service industry sector then you’re reading the right advert!

Domestic Oven Cleaning is big business and, with our 20 years of unrivalled knowledge and experience, we’re in a unique position of being able to offer you the best possible opportunity of making a very serious return on your initial investment and significant profits into the future.

Our bespoke systems are easy to manage and our support team will always be on-hand to help you along the way.

Find out more by visiting our recruitment website or why not call today to get the ball rolling?

www.ovenfranchise.co.uk www.ovenufranchise.co.uk

01325 251455

Our international brand - your local business

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JOIN THE LOW COST FITNESS REVOLUTION! Own a Fit4less franchise and get your working life and financial future into the best possible shape.

Fit4less is the market-leading budget gym and the smarter way to exercise.

Our members enjoy first-class fitness facilities with state-of-the art equipment from as little as £14.99 a month.

With Fit4less franchisees enjoying spectacular success, consistently exceeding their business plan targets and reaching profitability in record time, this is the franchise that is taking the market by storm.

Fit4less is fully supported by the énergie group, the UK’s leading fitness franchisor.

With over a decade of empowering our franchisees and their members to transform their lives, you’ll have the best possible team in your corner every step of the way.

“After opening my Fit4less gym last year I have already sold just under two thousand memberships, meaning I’m well on track to achieving my 3 year target of 2,100 members almost two years ahead of schedule.”

Ian Rajan, Fit4less Highbury

“The operational support offered by énergie allows you to focus on what is most important – driving membership sales and generating revenue.”

Adrian Lea, Fit4less Cheadle Hulme

Join the revolution and request our full franchise information pack today.

www.energiefranchise.com/elite We pride ourselves on our ability to empower successful new business owners to create successful new gyms.

That’s what we do every day.

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0845 363 1020 the smart affordable gym

27/03/2015 11:57 10:41

LEGAL

Well-heeled litigants are much more capable of paying Michael Lent, Annecto Legal

to litigate, you should either be very poor or very rich because if you were very poor then you would have legal aid and if you were rich then you could afford it anyway. “Sadly, we’re now in the situation where if you’re litigating, you just have to be very rich because even legal aid is now decimated,” says Michael Lent, insurance and litigation funding consultant at Annecto Legal.

We already have a situation where a third of UK companies with potentially valid cases don’t take action because of the financial burden and this situation can only get worse.

Lent says the increased cost of litigation should be one of the main issues facing SMEs ahead of next month’s election. “This is a big chunk of

money that they’ve got to find, and it comes at a time when they don’t typically have much,” he says. “The reason they’re having to litigate, typically, is because somebody did not pay them the money that they owe them.”

Lent makes the point that while the courts are experiencing a huge deficit – £100m, in fact – the government is targeting the wrong people to solve it. “The government make no bones about the fact they regard this increase in fees as a money-making exercise but they are targeting the people who can afford it the least,” he says. “Well-heeled litigants are much more capable of paying.”

There are no two ways about it; the courts do need to be better resourced. They are woefully undersupplied in terms of IT and they are still largely paper-based. However, one would think that the government can find a better way to

spread the cost. “It has all the hallmarks of something that’s not been thought through,” says Lent.

“One of the dangers is that if people can’t afford to use the legal system it encourages all sorts of other behaviours that are potentially very dangerous,” he says. “If people can’t get the results through using the courts, then all of a sudden you’re moving towards a third world situation which encourages corruption and criminality.”

Clearly the person with most money is now in a better position with the courts. “The big players are back in the position where they can behave pretty badly and make life very expensive for poor claimants who, unless they’ve got funding behind them or very deep pockets, will frankly get a bit of a kicking,” says Lent. “It’s not fair that if someone hasn’t got the right money, they just don’t have access to the courts in order to pursue their case.”

One person who knows all about just how burdensome litigation can be is Jon Welsby, director of Insolvency Assist CIC, which helps businesses understand their options when reviewing financial products. He is currently litigating against a high street bank, which he is accusing of misselling him an interest rate hedging product that had catastrophic consequences for his property business.

“Smaller businesses have been struggling with high legal fees for a long time as it is and the last thing we needed was for the government to make it harder for us to access justice,” Welsby says. “However, this is exactly April 2015 elitefranchise 67

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Contact us on 01494 484664 for a free brochure pack or visit our website on www.pacerleisure.com

ARE YOU LOOKING FOR A BUSINESS THAT YOU CAN RUN FROM HOME? You’ve just found it!

Pacer Leisure Vehicles International Ltd have manufactured and sold the renowned Cub Electric Karts for more than 23 years.

Cub has been designed for children age 3 to 10 and Pacer now proudly present the Panther Electric karts for children 3 – 11.

This is a exciting opportunity to run your own business in the lucrative children’s birthday and entertainment market using Pacer electric karts.

Cub and Panther can be used almost anywhere at birthday parties, shopping centres, fetes and fairs, holiday camps, leisure centres, school playgrounds, car parks, sports grounds and corporate functions just to name a few.

*Full or part time *No ongoing fees *No fixed overheads

PACER VEHICLES • Are extremely safe • Virtually no noise • No pollution • Can be operated full or part time • Can be used indoors and outdoors • Runs on grass, shingle and tarmac • Do not mark polished floors • Circuit only takes seconds to inflate

Panther Electric Kart

Cub Electric Kart

Turn-key business packages start from £11,999.00 + VAT, which consists of 4 x Pacer karts, batteries, chargers, Inflatable track, electric blower, track accessories, owners manual and 12 month Test certificate. There are no monthly fees. All Pacer karts are EC directives certified, easily maintained and full training, business information and ongoing support will be provided. Finance and insurance details are available. Secure your financial future and have fun doing it!

The potential for this unique business is enormous!

Freedom to run your business, support to help it succeed With our help you can replicate our success in your own territory! Following our proven system is far more likely to generate you a successful business than if you try to go it alone. You’ll still be your own boss, and be able to benefit from all the financial rewards that being self-employed entails. You’ll have the freedom to work where you want, when you want, but we’ll be there to help you.

investment

25k+vat

✔ ✔ ✔ ✔ ✔

Proven business model Full training & on-going support Repeat business Growth market Good profit margins

Tel: 0800 073 5252 | Mob: 07973 328 555 email: franchise@lawnkeeper.co.uk | www.lawnkeeperfranchise.co.uk

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LEGAL

The Liberal Democrats in particular should hang their heads in shame Jon Welsby, Lloyd’s TSB

what it’s done.”

We are living in a time where businesses have ever tighter budgets. Large upfront sums – which Welbsy describes as “ridiculous” – will put huge pressure on cash flows. “How are we ever going to get the dynamic enterprise culture that the government wants and the country needs?” he asks.

In Welsby’s view, the increase in court fees means that we are going to see a lot more of the “big boys abusing someone smaller”. In other words, big businesses can sit back with the peace of mind that they can pay a lawyer and be much be less concerned about being brought to justice.

The solution, as he sees it, is for the government to refine its current policy.

“It’s quite scary that you can’t access any form of justice just because you can’t afford representation,” he says. “There doesn’t seem

to be any real concern for businesses outside a certain spectrum of wealth.”

Welsby does believe that the government are warming to the idea that smaller businesses are important and that more needs to be done to ensure they get the help they need.

He echoes the views of many when he says that there needs to be a recognition that institutional, systemic, institutional fraud, perpetrated by PLCs – that kind of systemic problem that’s picking up traction in the marketplace – must be resolved without individual litigation cases.

Lent says the current administration has taken some really big steps to disable the country’s justice system. “The Liberal Democrats in particular should hang their heads in shame, as it’s very much against their supposed approach to making access to justice affordable to all,” he says.

To be fair, Lord Tim Clement-Jones, the Liberal Democrat peer and the party’s spokesman for culture, media and sport in the House of Lords, describes the hike in court fees as “totally wrong”. Speaking at the Elite Business Event National Conference & Exhibition, he said: “Access to justice is absolutely vital; in a year when we are celebrating 800 years of Magna Carta, to start denying access by the cost of litigation would be wrong. I know many of my colleagues on all benches feel the same.”

Lent is under no illusions that a Labourled government would repeal everything the current has done in this area, but he does believe it is the party which will most likely do something to assist access to justice. “They’re much more likely than the other two to do something for the underprivileged, and so they should.”

April 2015 elitefranchise 69

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FRANCHISE FOCUS

A-Star Sports

A-Star Sports is a multi award-winning children’s sports coaching franchise, specialising in delivering weekly classes, holiday clubs, parties and events direct to families. We offer an exciting opportunity to coach ten core sports and more, promoting the all-round benefits of sport and a lifelong commitment to being active.

Franchisees are offered a bespoke training programme but they all have three things in common – a passion for sport, an affinity with children and the drive to succeed in business.

• Low cost start-up at £12,500 (+ VAT) including equipment to deliver all levels of the programme (10 core sports) • Unique eight year coaching programme for children aged 2-10 years • Ongoing support with detailed business and coaching resources

Contact phone 0845 459 2210 | email: gary.bassett@a-starsports.co.uk | www.a-starsports.co.uk

ABC Photography

Our franchise opportunity is ideal for anyone who enjoys working with children but not necessarily an experienced photographer!

We specialise in photographing Nursery schools, pre-school groups and Mother & Toddler groups. Also, as a mobile Studio, we take portraits in customers’ homes, providing top end quality photographs, reasonably priced.

• An exclusive territory • Extensive and on-going training in photographic techniques • The photographic equipment and stationary to start up your business.

• Marketing and Accounts training • On-going Technical, Marketing & Management Support Services • Your own personal Web Page

Contact phone 0121 704 1016 | email: info@abcphotos.co.uk | www.abcphotography.co.uk

Angela’s Swim School

Angela’s Swim School was started in 2002 by former Team GB, Commonwealth and European swimmer Angela Wilson and franchised in 2014. We started 9 franchises in our first year. We offer an exciting way to run a swim school with the benefit of the backing of an established and successful brand.

Our franchisees receive a bespoke training course and continued support and guidance from the Head Office team.

Join our growing network and be part of something exciting.

• £20,000 franchise fee • 10 established franchises in our first year • Territories available nationwide • On-going support and guidance • Client longevity

Contact Jackie Miles on 07500 696 866 | email:franchises@angelasswimschool.co.uk | www.angelasswimschool.co.uk/franchise

ChipsAway

It couldn’t be a better time to join the UK’s biggest ‘on-the-spot’ automotive paintwork repair brand. We are recruiting motivated, tenacious and ambitious individuals with the determination to succeed, to take ChipsAway to the next level.

Make sure you choose the market leaders who can offer the very best support and business offering available! Take control of your future and be your own boss with ChipsAway, the UK’s original and market leading automotive paintwork repair franchise.

With guaranteed funding available to approved candidates, there’s never been a better time to join.*

• Excellent earnings - potential to turnover £80,000+pa • Proven demand with brand leaders of the marketplace • Unlimited business support from a dedicated team • Unrivalled training course and business launch

*Guaranteed funding is subject to availability and available to candidates approved by ChipsAway International with a minimum personal investment of £15,000.

Call: 0800 731 6914 | www.chipsaway.co.uk

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FRANCHISE FOCUS

CNA Executive Search Ltd

Build a global business with no territory boundaries Build your own business with the brand, support and benefits of being part of one of the largest recruitment companies in the UK and Europe. CNA Executive Search specialist (Partners) forms the executive search and senior appointment arm of the Pertemps Network Group Ltd.

• Instant brand recognition and credibility with global corporations • Full Training on how to build and grow your business • Superior and constantly evolving systems from the Pertemps Group • Start your business with low overheads from your home office

Call 01676 822 222 | email: nick.sprang@cna-international.com | www.cna-international.com

Driver Hire Nationwide

A straightforward business with huge potential A proven B2B management franchise with over 100 offices and a 30 year track record, Driver Hire is one of the most successful franchise brands in the UK. A specialist recruitment company supplying temporary staff to the transport and logistics sector. Average full year sales for Driver Hire franchisees in 2014/15 were £988k.

• Entry investment level from £35,000 (including start-up capital) • Run your own business in a sector worth £28.7bn in the UK • Net profit potential of over £100k per annum • No previous recruitment, transport and logistics experience required

Call Kasia Baldwin 01274 361073 | email: franchise@driverhire.co.uk | www.driverhirefranchise.co.uk

Goldgenie

Goldgenie was formed in 1995 and is now the most influential and trusted brand of its type in the world. Clients include HTC, Blackberry, Lexus, Viacom, American Express and Visa, and numerous A list Hollywood and international stars.

Business in a box: This amazing business opportunity truly can give you the Midas touch turning hundreds of everyday items into luxurious gold or rose gold.

Our success can also be your success with a small investment of just £2447.50 plus Vat.

• Complete business in a box • Minimal investment • Unlimited income only limited by your imagination • Change your life by visiting this link: www.goldgenie.com/ goldgenie-businessopportunity.php

Contact phone 0208 804 6200 | email: frank@goldgenie.com | www.goldgenie.com

Harry Ramsden’s

Celebrating over 85 years in operation, Harry Ramsden’s is Britain’s longest established restaurant chain and is world famous for its Fish and Chips. With almost 30 Harry’s outlets operating across the UK and Ireland, we’re looking to increase our presence and are offering an amazing opportunity to become part of a British Institution.

• Fish and Chips remain the nation’s favourite cuisine with 382m portions sold annually • Harry Ramsden’s is the brand most closely associated with Fish and Chips globally • Brand awareness and recognition, along with the popularity of the offering, ensure Harry Ramsden’s outlets compete effectively from the outset

Contact phone 0203 077 5880 | email: franchise@harryramsdens.co.uk | www.harryramsdens.co.uk/franchise

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FRANCHISE FOCUS

Home Instead Senior Care

Home Instead Senior Care specialise in providing older people with non-medical care in their own homes. We take the lead not only in the care we provide, but also for the industry leading support we provide to our franchisees. Choosing a Home Instead franchise will enable you to combine making a difference with running a substantial and rewarding business.

• The bfa Gold Franchisor and Franchisee of the Year • Smith & Henderson Best Franchise Award • No.1 Home Care Provider • 5 star Franchisee Satisfaction

Contact phone 01925 732460 | email: franchiseinfo@homeinstead.co.uk | www.homeinstead.co.uk/franchise

The Interface Financial Group

IFG 50/50 is an affordable home-based franchise that provides short-term working capital to small businesses by purchasing current, quality invoices at a discount.

In IFG 50/50, all transactions are syndicated 50/50 with the franchisee and franchisor. IFG is also responsible for the due diligence and paperwork for the transactions, while IFG 50/50 franchisees build the referral relationships. Also available is an innovative Capital Leverage Programme to allow franchisees to grow their capital even faster.

• Excellent ROI • Low overhead • Home-Based • Exceptional training & support • Non-territorial & Portable

Contact phone 0845 834 0332 | email: ifg@interfacefinancial.com | www.interfacefinancial.co.uk

JAN-PRO Cleaning Systems

Jan-Pro is committed to helping individuals start their own commercial cleaning business at whatever level they choose – part time, full time or executive, with an entry level investment of under £10,000. Our training is excellent, our support ongoing and our vision is for you to grow your business to support the lifestyle of your choice.

• Join a rapidly expanding industry.

• Learn and benefit from our training, our processes, our unique guarantee and our reputation.

• Invest and grow at a pace that suits you and your individual goals.

Contact phone 01934 740472 | email: phil.ryan@jan-pro.com | www.jan-pro.com/centrallondon

KARE PLUS

Kare Plus is a leading provider of quality nursing and domiciliary care, supplying medical and non-medical personnel to the NHS, some of the UK’s largest private hospitals and nursing care groups, and those requiring care in their own home. We have new Service Level Agreements in place with the NHS, a portfolio of established National Contracts and full CQC accreditation. Join us and earn healthy profits by delivering valuable services to your local community

• Established brand recognised by health professionals • On-going support, including recruitment and customer development • Access to national contracts nationwide • Competitive franchise fee of £40,000

Contact phone 0845 094 9288 | email: info@kareplus.co.uk | www.kareplus.co.uk

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FRANCHISE FOCUS

Kiddleydivey

Kiddleydivey have a fantastic reputation as a very successful company delivering structured, fun packed, music based sessions to the elderly, and young children since 1996. We are offering an incredible opportunity to franchise an enormously varied, fun, rewarding business! The unique, low-cost franchise gives you the opportunity to work with children, the elderly or both! You could make a real, tangible, positive difference to the lives of young children, the elderly and others. No two days are the same!

• Low start-up costs – individual franchises are £3,500 and, the combined package is £4,999 plus VAT.

• High income potential • Large exclusive territory • Flexibility - full or part time • No previous experience required – full training given in all aspects of the business

Contact: Sally Murphy 07740679054 | email: kiddleydivey@yahoo.co.uk | www.kiddleydivey.co.uk

Mail Boxes Etc

Mail Boxes Etc. is one of the world’s largest non-food retail franchises. It is the only High Street chain that offers consumers and local companies a truly comprehensive range of national and international courier delivery, postal, print and copy services. As well as mailbox rental, stationery and packaging supplies plus many other complimentary profit streams. When you join Mail Boxes Etc. you get the full support of a globally-recognised brand with a proven business model and a comprehensive induction and training system.

• Established, fast-growing network with a proven system • Full support of a globallyrecognised brand • A complete turnkey start-up package from £60,000 • Comprehensive start up and initial training • Continual operational and marketing support

Call 01608 649238 | email: mbe.co.uk/franchise_opportunities | www.franchise@mbe.co.uk

Martin & Co

Martin & Co is one of the only UK property agency franchises that offers lettings and estate agency with UK-wide recognition. With a network of just under 200 franchise owners, they are the largest property franchise business in the UK. With strong high street and online presence, the secret of their franchise owners’ success is that they can provide local property knowledge whilst being backed by a national brand.

• Buoyant rental market • Growing sales market • Turnover £245k in year 3 • Build a business worth over £380k in just 5 years

Contact phone 01202 292829 | email: propertyfranchise@martinco.com | www.propertyfranchise.co.uk

Ovenclean

Ovenclean is the longest established and most successful oven cleaning franchise in the UK. With over 27 million households nationwide, Ovenclean franchisees provide specialist services to a large, virtually untapped marketplace.

The Ovenclean franchise model has been developed to suit individual lifestyles and business aspirations. Low overheads and the flexibility to dictate working hours, benefits franchisees wishing to retain control over their work/life balance whilst also delivering high profitability and great job satisfaction.

• Flexible working hours to suit your lifestyle • Potential to earn over £1,000 per week* • Massive, virtually untapped marketplace • Regular, repeat business • Great job satisfaction • Unique cleaning system *Figures based on existing franchisees and are not guaranteed

Call: 0800 988 5434 | www.ovenclean.com

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FRANCHISE FOCUS

Rainbow International

Rainbow International is the leading supplier of restoration and specialist cleaning services following fire, flood or accidental damage in domestic and commercial premises.

These services are offered to many of the top insurance companies as well as large companies and private customers.

Business opportunities are available throughout the U.K including new territories and re-sales. All training will be provided in our in-house training facility

• Recession proof business • Recognised brand • Protected territories • Personalised Rainbow website • Ongoing support from a team of experts at Head Office • Extensive 3 week training onsite at Head Office

Contact phone 01623 675 185 | email: businessopportunites@rainbow-int.co.uk

Surelet

SureLet has been providing a fresh, exciting and innovative lettings franchise opportunity for over 10 years. The support, care and attention that each and every franchise receives is the reason our company continues to grow. Which is why when you buy into our SureLet Franchise, you don’t just buy into a successful business, you buy into a family. We want to continue to build on our successful lettings franchise model and make a real difference in the Lettings Industry.

• Send all paperwork to our PropertyManagement Centre • Bespoke Sign-writing - have the car vinyl synonymous with the SureLet brand • Cloud based technology for easy management • Franchise only starting from £12,500

Contact phone 08000 934 984 | email: info@surelet.co.uk | www.surelet.co.uk

Tax Twerk

Creative business owners save 16-24 hours every month on hourly costs by using an online bookkeeping service. That’s a SAVING of £300 - £400 every month.

If you’re thinking, “Hecky! I don’t need to spend 16-24 hours on the books!”, then you must love those brown letters from HMRC, we say! But if YOU want more time freedom, more tax savings and less stress, Tax Twerk is for you... We’re the premier VIP Online Bookkeeping Service for Creatives.

Got burning questions? Contact Us Today for a FREE 25 Minute Discovery Session!

• Our goal is to help you keep your cash flow bouncing • VIP Membership Service we do all of the bookkeeping completely hands-off for you • Flexibility – we work online and support you every step of the way • We are young, fresh and highly experienced

Call 0330 321 1136 or visit TaxTwerk.com. Limited spaces each month, so don’t miss out!

The Best Of

Residual Income, Low Maintenance and HUGE growth potential.

Our franchisees identify the best businesses in their local area and then using a suite of marketing tools unique to thebestof, work with the business owner to showcase and promote them. Your core income will be from the monthly membership payments made to you by local businesses.

When you’ve got 200 featured businesses, your regular monthly income should be heading north of £19,000 each month.

Remember: residual income is a beautiful thing.

• Low maintenance • No stock • No employees • Residual income • Low-cost

Georgina Grogan 0121 765 5556 | email: tellmemore@thebestof.co.uk | www.getthebestof.co.uk

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FRANCHISE FOCUS

Trivaeo Cloud Services

The company behind the “Best CRM on the Planet” and Finalists in the Network Computing awards 2014 now seeking Channel Partners with a deal structured like a Franchise, but without on-going Management fees. Sell 65 on-line business applications that will automate just about any SME. All revenues earned come directly to you. Full training and Management systems supplied. No technical experience required.

• Easy to sell and demonstrate • Free trials for all users • Revenues that come directly to you • Fantastic margins with limited outlay and no stock.

Contact phone 0844 561 1979 | email: partners@trivaeo.com | www.trivaeo.com

Your Zone Studio

Your Zone Studio operates a revolutionary 55 minute personal group fitness workout set in welcoming, comfortable studio environments. Your Zone is unlike any other fitness concept out there – designed to offer members motivation, enjoyment and visible results where they can expect to burn up to 1,000 kcals per session. Since 2003, Your Zones USP has ensured that the model has brought continuous success and they want to share the successful franchise model with likeminded individuals.

• Instant brand recognition and credibility with global corporations • Full Training on how to build and grow your business • Superior and constantly evolving systems from the Pertemps Group • Start your business with low overheads from your home office

Call 01268 200168 | email: franchise@yourzonestudio.co.uk | yourzonestudio.co.uk/franchise

Zip Yard

Are you ambitious to run your own business?

Customer driven and well organised?

Can you follow a proven business system?

All Zip Yard franchises are finished to a distinctive specification and you are presented with a fully operational and fully supported business with trained staff and comprehensive brand marketing from day one.

• Marketing and promotion tools • Group purchasing power • Internet and web support • Ongoing training programmes • Continued concept and product development • Day to day troubleshooting

Contact phone 01530 513307 | email: edownes@thezipyard.co.uk | www.thezipyard.co.uk

To advertise in this section please call:

01245 707556

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ADVERTISING FEATURE

The franchise with a difference In the world of franchising where there are literally thousands of opportunities to choose from – with franchise descriptions using words such as ‘unique’ and ‘different’ – we question what actually makes a franchise stand out

E

veryone has a unique opportunity or so unique features and elements that distinguish it seems. But to be unique you have to be it from other brands? absolutely one of a kind, with no replicas The Interface Financial Group (IFG) believes and no look-a-likes – which also probably it still retains features that are truly different means no competition. from other franchise models. IFG comes The world of franchising or for that matter with over 42 years of history and during small business in general, has moved from the that lengthy time span it has maintained rented office concept to a home-based office its position as the primary funder for small setup. What was once unique, in that it was a businesses in a non-bank environment. IFG home-based business, is now common place. has sought to deliver a high standard of Employees represent another personal service – unique enough ‘unique’ area that isn’t so in today’s high-tech environment IFG has sought unique after all. It was at one – while at the same time time certainly different to say embracing technology to improve to maintain its that you had a business with no the day-to-day operations of the position as the employees. With the advent of model. primary funder business technology and outsourcing, the The IFG approach to for small ‘no-employees’ claim is again franchising is to share the day-tofairly common place in the small day operations of the business businesses in business world. with its franchisees. This means a non-bank Inventory represents another that the franchisor is actually environment changing area – most businesses involved with the franchisees in that produce or distribute a each transaction. The franchisor product would always have as does not actively compete with much inventory as they could afford. In this the franchisees but rather complements day and age, we tend to be focused less and and supports their efforts. They style their less on making a product and instead choose franchise as a 50/50 approach. This requires to import it, often at a much lower cost the franchisee to undertake what is referred than making it domestically. ‘Just-in-time’ to as the ‘people’ part of the business, while production has also meant that inventory the franchisor (IFG) handles the ‘paper’ part. levels can and are drastically reduced. The As a general rule, this works out very well as claim that you have a business with no most IFG franchisees readily admit they would inventory now starts to be common place. rather be out talking and working with their The next question would then be: is there clients than processing paper. really any business or franchise that still has The Interface Financial Group is in the

business of helping small businesses expand rapidly by unlocking capital that is tied up in accounts receivable. In other words, IFG clients have sold their product or service to their customer and are now waiting to get paid. That waiting period for many small entities creates a major finance and cash flow issue. Interface injects capital by buying those unpaid invoices at a small discount to produce instant funding for their clients.

In their quest to deliver a unique franchise system for their franchisees, the fact that the franchisor handles all of the transactional paperwork goes a long way to set their model apart from other opportunities. But it does not end with a 50/50 approach to paperwork – IFG also offers a 50/50 approach to funding transactions. This means that every time an invoice is purchased from a client, it is a joint purchase by the franchisee and the franchisor.

The paperwork and funding elements help to create a franchisee comfort zone.

Franchisees can take comfort in the fact that IFG handles the paperwork, based on its 42 years of industry experience. They can also take comfort in the fact that every time they engage in an invoice purchase, the franchisor is working alongside them and investing its own money in the same transaction.

The Interface Financial Group franchise is naturally a capital-intensive franchise.

Capital is the key to growing a business, both for IFG clients and IFG franchisees. It has, therefore, created a capital leverage program that assists franchisees with their capital needs. The program effectively lends capital to the franchisees to enable them to complete a greater number of transactions. Having access to funding from the franchisor enables franchisees to not only assist their clients but also to allow them to grow their franchise entity at an exponential speed.

These are unique features – even if the word ‘unique’ is somewhat overworked, these features truly represent a franchise opportunity with a definite difference.

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Thumbs up for the New Franchise Opportunity from IFG! 3 great features of the IFG 50/50 franchise • Leverage your capital • We handle the paperwork • Create exponential growth

This is your opportunity to be in control of • Your Income potential • Your Capital • Your Work Schedule While earning a well above-average ROI!

IFG 50/50 franchisees provide short-term working capital for small businesses by purchasing current, quality invoices at a discount.

For more information: Tel: 0845 834 0332 Email: ifg@interfacefinancial.com Website: www.interfacefinancial.co.uk Interface Financial Group (Advertorial).indd 2

31/03/2015 20:55

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31/03/2015 20:50

Franchise Diaries with Kate Lester

A recipe

for success

Though the franchise model provides a safety net for people wanting to run their own businesses, there’s still margin for error. Kate Lester outlines her top tips for avoiding failure in franchising

I

heard an ‘expert’ defined this week as “someone who’s made a lot of mistakes in a very specific area”. After having a courier company for the last 23 years I have learnt the hard way the best ways to do and, more importantly, not to do business in the world of logistics. I’m an ‘expert’ no less. And it is all that experience that has helped craft our franchise model.

The franchises that follow the Diamond prescribed way of doing things succeed. Simple as that.

To be frank, I wish someone had offered me this template when I started out 23 years ago – the cost of all the mistakes I have made is, well, I shudder to think. The beauty of our particular model is that it has removed much of the laborious but necessary admin stuff which suffocated us administratively and took us away from what should have been the core function of getting and keeping clients. That is your number one priority in building a successful business.

It’s why I totally rate the franchise model for start-ups. It’s the best of both worlds: your own independent business backed by the expert guidance of a proven business model short-cutting your way to success. The franchisor has historically made and learnt from their mistakes so you don’t have to.

Unless, that is, you make the fatal new franchise errors which I have seen again and again.

I have a group of fellow franchisors who I regularly meet with and we all, without exception, experience the same mistakes being made by a small percentage of franchises that will inevitably go on to fail.

So here it is – my guide on how to avoid failure and build a successful franchise.

Prime your pipeline

The conversion ratio of leads to actual purchases is very important. Understand your sales funnel, rate of conversions and how many enquiries you need to make a sale. Lack of lead volume won’t kill you today but it will kill you eventually. You need to prioritise this daily.

Make sure you close your sales

Ask for the business: poor franchises may be successful at generating the leads – or indeed have them generated for them – but then fail to close the deal. Conversion to paying customers is essential.

Acquire some help

If you are not a salesperson, get one, but don’t abdicate the sales effort. Don’t believe your salesperson will do it – check that they do. Figures speak the truth. Look at the activity, sales pipeline and new accounts and daily, weekly and monthly revenue figures.

Stick to the plan

Despite buying a prescribed formula, some just try and run the franchise differently to how their handbook dictates. If it’s a great franchise, suspend your intuition to apply your own initiative or experience and work to the plan you have been prescribed. It’s there for good reason.

Give it time

Some newbie franchises give up quickly – I’ve heard of extreme cases where they’ve given it less than six weeks. Sales are like pumping water from a well – you have to keep on pumping or you never get sufficient momentum to become sustainable.

Stop sweating the small stuff

Franchises aren’t perfect – it’s impossible with a human element. If you get caught up in the minutiae of nitpicking every little thing, you will be wasting valuable energy and time on detail when you could be building sales revenue.

Take responsibility

As any good entrepreneur will humbly acknowledge, we live and die by our own efforts. If it ain’t working – and it’s working for the majority of your franchise associates – then the problem is you. Be honest, look at your own commitment, skill set and ability. Work on this to improve performance.

Buying a franchise of a long-standing and respected brand exponentially improves your success probability, and saves you making expensive mistakes. And I guess the words of my best new franchise in 2014 – when asked for the insight into his success – sum it up entirely. “I just did what you said in the manual and the training. It works.” Simple as that.

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