February 2016 £4.50
elitefranchisemagazine.co.uk
Busylizzy The postnatal fitness franchise putting flexibility first
The name game Picking the right name for your franchise is key
Mobalpa Bringing fresh French furnishings to your abode
the reel deal He’s the man who single-handedly transformed John Lewis’s food offer. Now Joe Teixeira is working his magic on another British institution: Harry Ramsden’s
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philipphilipo-fish o-fish I am I am a franchisee a franchisee && this this is my is my McDonald’s McDonald’s ‘We’re ‘We’re very very active active in the in the community, community, likelike helping helping local local business business groups groups andand sponsoring sponsoring grassroots grassroots football football teams. teams. TheThe most most satisfying satisfying partpart of being of being a franchisee a franchisee is developing is developing my my people. people. Seeing Seeing them them enjoy enjoy themselves themselves andand be proud be proud to work to work at McDonald’s at McDonald’s – that’s – that’s thethe bestbest thing.’ thing.’ Phil,Phil, operates operates 6 restaurants 6 restaurants in North in North Wales Wales
www.mcdonalds.co.uk/franchising www.mcdonalds.co.uk/franchising
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Profit from print with Cartridge World Delivering cost saving print management services Office printing is a highly lucrative £90bn market. With a Cartridge World franchise you’ll be part of it, providing SMEs with a local print management service that offers up to 30% cost savings. • Perfect for ambitious, sales-driven people • Sales are largely on contract, guaranteeing cash flow • Full support and guidance from day one • Part of an established global brand • Access to industry partners to help your business grow
A business-to-business print services opportunity Leading franchisor Cartridge World developed Cartridge World Print Services -- a flexible print management service for its franchisees to sell to thousands of small and medium-sized businesses. For a fixed monthly fee, Cartridge World manage their printers, provide an automated supply of printer cartridges, paper and ongoing maintenance. Most importantly, it delivers tangible customer cost savings. “Research shows 90% of businesses have no idea how much they spend on print,” says Cartridge World’s General Manager Gavin Askew. “Cartridge World Print Services capitalises on this. It’s a simple, cost effective way of running their business printing with savings of up to 30%.” “Our franchisees benefit from in-depth support at every level of their business,” says Gavin Askew. “They also have access to our industry partners, giving them the opportunity to offer print hardware/software solutions, full service and repair contracts and finance, if required.”
Contact our franchise sales team for more information: Phone: 01423 878 528 Email: franchise@cartridgeworld.co.uk www.cartridgeworld.co.uk/franchise CART001
CONTENTS
30
47 xx
xx REGULARS 9 Editor’s letter 10 Contributors 12 News & events 80 Franchise diaries COLUMNS 15 Karen Kelly 17 Nigel Toplis 29 Tony Bowman
41 Peak production
60 Perfect fit
47 New wage thinking
64 Give tech a try
54 What’s in a name?
69 In good faith?
Kitchen and bathroom franchise Mobalpa is gearing up for growth
How to pay the national living wage without breaking the bank
Choosing the right brand name can help a franchise stand out
Why flexible working goes hand in hand with franchising
Smart franchises are embracing technology like never before
Do franchise agreements oblige those involved to act fairly?
FEATURES
30 Flexible fitness
Busylizzy brings pilates and play for mothers and babies
34 A helping hand
Taking on management support is key to success
FREE INFORMATION SERVICE Don’t miss our new free information service for franchisees. You can find this at the back of the magazine.
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elitefranchise | February 2016
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PHOTO: NATALIE SEERY
20 THE ELITE INTERVIEW
Joe Teixeira has traded football for fish and chips
February 2016 | elitefranchise
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ADVERTISING FEATURE
The ZipYard offers a professional tailoring and alterations service in a clean, purpose build environment
Tailor-made for success O
ur award-winning business is all about outstanding customer service. Whilst there are no other specialist alterations and tailoring centres in the area, there are numerous businesses offering similar services and competition is great. As the top performing ZipYard, we have raised a total of 22,500 invoices. Turnover in the first year was £174,500 from 9978 customers. In the ten months to date of our second year we are at £238,000 from 12,675 customers and on track to hit our target of £274,000 by year end. Added Value We want our customers to believe that nothing is too much trouble. We don’t charge any extra for the express service and often carry out additional minor repairs for free. If one of the seamstresses notices a button needs replacing whilst they are turning up a hem it takes very little additional time to do the complementary work – and customers are always surprised and delighted. Frequently people come in off the street with a button that’s just popped off. We’ll fix it there and then, again for no charge, confident in the knowledge that he or she will regard us as a lifesaver and talk about The ZipYard to others. Customer stories We frequently see brides who have bought a dress from the internet. On one occasion a woman came in to the centre in tears with a dress that fitted terribly. By the time we had finished she was parading up and down with a big smile on her face. Another customer spent over £400 altering her wardrobe after a successful diet and an elderly lady brought in all of her clothes to be taken in - all bundled into storage boxes and carried up the high street to us. Nowadays very few people have the time or skill to mend their own clothes – and a lot of our work involves repairs but even I was surprised when one of our regular customers brought in a pair of her son’s Y-fronts for us to fix a tear! For many of our customers we have become their personal tailors. One well-heeled man left a message on our answering machine to say his wife was bringing in a ball gown the next 8
Richard McConnell being awarded Franchisee of the Year at the ZipYard Conference on Saturday 21st September 2013
“We are all very proud of Richard and his team who have developed a great business in Altrincham – and so successful has this been that Richard has now opened his second Centre in Wilmslow which is testimony to the tremendous potential of the brand” Nigel Toplis, Managing Director
day so ‘please leave space on your machine’ for her. They expect a very fast service and we rarely disappoint. A regular moved out of the area but saves up his repairs until he comes back to visit friends – travelling over 160 miles for our quality of service. The Future Managing customer expectations isn’t easy and it has been a big challenge for us to be able to turn round work quickly as the volume increases. Recently we dealt with 90 paying customers in one day which is ten an hour. We already open seven days a week and are looking to employ another seamstress to focus full-time on express work and have installed a second till to cope with the queues that had begun to form outside the door in busy periods. We are looking at ways to extend the range of services we offer including a paid-for delivery and collection service which will appeal to our busier user clientele. At the moment I manage ZipYard with the help of one other but I will be recruiting additional customer-facing staff to free me up to do more marketing and work on plans to open another ZipYard in the north-west.
elitefranchise | February 2016
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WELCOME
VOLUME 04 ISSUE 02 / 2016
EDITORIAL Adam Pescod – Acting Editor adam.pescod@cemedia.co.uk Josh Russell – Acting Web Editor josh.russell@cemedia.co.uk DESIGN/PRODUCTION Leona Connor – Head Designer leona.connor@cemedia.co.uk Dan Lecount – Web Development Manager dan@cemedia.co.uk SALES Adam Reynolds – Ad Sales Manager adam.reynolds@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 Emily Fulcher – Administrator emily.fulcher@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 2016. 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%, therefore CE Media Limited cannot be held responsible for such variation.
A call to action
I
t’s official: the British franchise sector has never been in better shape. Just in case you haven’t had a chance to delve into the bfa NatWest Franchise Survey 2015, let me reel off those headline stats for you. The £15.1bn contribution that franchising made to the UK economy last year represents a 46% increase over the past ten years and is up 10% on 2013. The industry now employs 621,000 people – up 70% since 2005 – and more franchises than ever are reporting profitability. The recession has helped, of course, but only to the extent that it’s driven greater numbers of people to seek a more secure and satisfying career. Even before 2008, people were looking to
take better ownership of their professional lives. The rampant rise of franchising is a mere reflection of this upward trend. However, there’s still a long way to go before franchises are held in the same esteem as the UK’s fresh-faced startups. I’m talking about those tech types residing in trendy Shoreditch, in case you were wondering. As our new columnist Nigel Toplis rightly says (p17), it’s high time franchising got the recognition it deserves from the powers that be. But a lot depends on the industry making its voice heard. With that in mind, you better start badgering your MP.
Adam Pescod - ACTING EDITOR adam.pescod@cemedia.co.uk
cemedia.co.uk
February 2016 | elitefranchise
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CONTRIBUTORS
Nigel Toplis
A firm fixture of the franchising industry, there can be few better placed than Toplis to run down why it’s important we champion the sector. When he’s not raising awareness of franchising, Toplis is raising money for Well Child by cycling across Cuba, climbing Kilimanjaro, traversing the Sahara and trekking the Sumatran jungle.
KAREN KELLY
Prior to founding domestic cleaning franchise Cleanhome, Kelly enjoyed an illustrious career in the travel industry, which included a tenyear stint as head of UK & Ireland Sales at Virgin Atlantic. When’s she’s not busy growing a business or penning columns on customer service, Kelly spends her time reading, travelling and taking strolls with Leo, her beloved springer spaniel. 10
Tony Bowman
Having spent more than 20 years at the helm of the tyre-fitting franchise etyres, Bowman knows how important an established track record is for franchisees, hence this month’s column. He has also served as the chair of the bfa’s London and South East forum and fills his free time with flying, music, clay target shooting and tackling environmental issues.
Alex Littner
If you’re worried about the looming introduction of the national living wage, Littner’s cracking column should help ease your mind. With an eight-year stint at American Express behind him, Littner is now the head honcho at business funding firm Boost Capital. But while his financial judgement can’t be questioned, some may query his decision to support Arsenal.
elitefranchise | February 2016
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AnytimeFitnessUK
AnytimeFitUK
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NEWS Franchising contributed £15bn to UK economy in 2015
Smashburger to open first site in Milton Keynes
It’s no secret that the British franchise sector has been in rude health for the past few years. And thanks to the bfa NatWest Franchise Survey 2015, the sheer scale of this growth has been revealed. The survey revealed that franchising contributed £15.1bn to the UK economy last year – an increase of 46% over the past ten years – with further findings showing that the number of franchise-owned businesses increased by 14% since 2013. And while over half of franchiseowned outlets reported an annual turnover of more than £250,000, a record 97% reported profitability last year, with 56% saying they are ‘quite’ or ‘very’ profitable. We’d say that’s a pretty strong endorsement of the UK’s franchise sector.
Ever since our cover interview with Tim Lowther back in June, we’ve been wondering when we’ll be getting our first taste of Smashburger on these shores. And now we have an answer: the better-burger company’s first UK restaurant will open its doors in Milton Keynes in May. It’s the first of many restaurants that MSG Group, Smashburger’s franchise owner in the UK, is looking to open in Blighty over the next few years. The company is banking on British consumers going crazy for it’s unique burgers, which are made by smashing a ball of beef onto a hot buttered grill. If that’s not enough to get your juices flowing, we don’t know what is.
WORDS: ADAM PESCOD, JOSH RUSSELL
Puddle Ducks makes a splash with fundraising Puddle Duck’s fundraising efforts are a real feather in its cap and news that it has helped raise another £55,275 for local charities across the UK is only likely to cement this reputation. Through its annual PJ Party fundraising event, the swimming lesson franchise invited parents and children to attend classes in pyjamas to learn important water safety skills whilst raising funds for their chosen charity. Thanks to the 2,500 sessions that took place during the week, the franchise managed to double the amount it raised in 2014. All in all, we’d say that’s a quacking effort. 12
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Search begins for Franchisor of the Year
Childcare shortage leaving parents struggling to work
Events
Finding affordable childcare can be an uphill struggle but new research from Sherpa Kids, the childcare franchise, has revealed that the problem is so bad that some parents have been forced to give up work as a result. The online survey of 1,000 parents found that 53% of respondents had failed to return to work, given up their job or been forced to reduce their hours because they were unable to find out-of-hours childcare. Meanwhile 12% of parents said that their school offered no breakfast club, after-school care club or holiday activities. Not great news for working parents.
The Franchise Show February 19 - 20 ExCeL, Royal Victoria Dock, 1 Western Gateway, London, E16 1XL The National Franchise Exhibition February 19 - 20 NEC, North Avenue, Birmingham, West Midlands, B40 1NT
Once more the biggest awards of the year are looming on the horizon. No, we’re not talking about the Oscars: the bfa HSBC Franchisor of the Year awards are again open for entries and scouring the land for the best and brightest franchisors the nation has to offer. Now in their 27th year, the awards will cover five different categories: Franchisor of the Year, Emerging Franchisor of the Year, the Award for Innovation, the Franchisee Recruitment Award and the Award for Customer Focus. Entries close on February 22 ahead of the awards ceremony on June 23, so those franchises that fancy seeing their name up lights should head on over to the bfa’s website and enter before it’s too late.
Right at Home opens 500th global territory People all over the world have family members who need looking after, so it’s hardly surprising that homecare is one of the most popular sectors for budding franchisees. Reflecting this trend, Right at Home, the international homecare franchise, has just announced the opening of its 500th global territory in Kansas City. Established in 1995, the company has seen 289 territories signed up by franchisees since 2012, and will soon have 35 offices trading in the UK. Here’s to further growth for Right at Home.
EWIF Regional East March 1 Leathes Prior, 74 The Close Norwich, NR1 4dr bfa Prospective Franchisee Seminar March 2 TLT LLP, One Redcliff Street, Bristol, BS1 6TP
bfa Prospective Franchisee Seminar March 3 TLT LLP, One Redcliff Street, Bristol, BS1 6TP The British & International Franchise Exhibition March 11 - 12 Hammersmith Road, London, W14 8UX
A full event listing is available on our website: elitefranchisemagazine.co.uk/events
February 2016 | elitefranchise
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d an list r b fa fina b r 4 – yea 1 20 the of
l u f s s e c c u s t The mos n o i t a r e t l a t n garme UK e h t n i e s i h franc Who? • Are you ambitious to run your own business? • Customer driven and well organised? • Can you follow a proven business system?
How? 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.
Support Includes: • • • • •
Marketing and promotion tools Group purchasing power Internet and web support Ongoing training programmes Continued concept and product development • Day to day troubleshooting
Total Cost: £38,500 + VAT plus shop fit* One-off licence fee Franchise package: - Corporate branding - Production equipment - Marketing and PR launch programme - Opening stock - Bespoke electronic point of sale system, software and computer - Extensive marketing collateral Training and project management Ongoing business support Fully fitted retail unit
“After meeting the franchisor, Nigel Toplis, we were very impressed by the professionalism of the franchise. Since opening the reaction from customers has been amazing and business is going so well that we are looking to open a second Centre, and possibly a third after that.” Richard McConnell, The ZipYard Altrincham
For further information call Emma Downes on 01530 513307 e: edownes@thezipyard.co.uk w: www.thezipyard.co.uk * The exact shop fit cost will be determined by the size and standard of the premises
The Zip yard AD.indd 1 107.13_Resize to 210x297mm.indd 1 EliteFranchise1015.indd Zipyard_Advert_MASTER
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01/02/2016 18:08 07/10/2015 30/06/2014 18:50 12:31
Karen Kelly, founder & managing director, Cleanhome
The love affair between customers and franchises Franchisees have a vested interest in delighting customers but the key for franchisors is keeping service consistent across the board The UK’s franchise sector has never been stronger. According to the latest bfa NatWest Franchise Survey, the industry is currently worth a record £15bn to the economy and there has been a 14% increase in the number of UK franchise outlets in the past two years alone. So what’s driving this growth? The answers could be found in a recent survey by Reed Commercial, which revealed that more than one in five British consumers are more likely to buy a product or service from a franchise. This isn’t that surprising: after all, franchisees are business owners, meaning they have a greater incentive to deliver good customer service than your everyday shop manager. Nevertheless, the most successful franchise operations are those where the consumer is guaranteed to receive the same service at every one of its outlets. This consistency makes the franchise operation as a whole synonymous with quality and this is what drives trust and loyalty among consumers. In the same survey, over half of participants claimed that quality of service is the main reason they prefer to buy from franchises, followed by value and high standards of customer service. As franchisors and franchisees, we should be learning lessons from the most successful franchise operations by maintaining levels of service and ensuring that everyone representing the organisation buys into its values. Unfortunately, when a franchisee or franchisor is focused on building their network and getting to
grips with the administration side of the business, the quality of service and customer satisfaction levels can slip. The key to running and growing a successful business isn’t to grow as fast as you can but to grow slowly and steadily while maintaining the trust and loyalty of existing clients and customers. Given that the cost of attracting a new client is estimated to be ten times that of keeping an existing client, retaining excellent relationships with existing clients and growing the business at a reasonable rate is, in the long term, better for the business and the brand. The beauty of being part of a franchised organisation is that you can access support and guidance. This support ranges from having access to existing and recognised brand material, such as the website and promotional collateral, to training and advice from colleagues who have been through the same process and can offer support about dealing with issues you may face. Indeed, the fact that franchisees operate as part of a bigger network means they benefit from something that other businesses don’t. Making the most of this by sharing best practice on quality and customer service throughout the franchise network will guarantee the ongoing success of your business. Whether you’re a franchisor or a franchisee, remember that you’re all in this together. As they say, ‘Together we stand, divided we fall’. February 2016 | elitefranchise
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ADVERTISING FEATURE
Become a Property Xpert Is it time for a career change? Are you tired of making money for someone else? If you are passionate about property and delivering an exceptional level of customer service to all of your clients, then estate and letting agency could be right for you
E
state and letting agency is a dynamic, rewarding career where you will be able to have a real impact on people’s everyday lives. You will meet lots of new people, expand your skillset and help people to achieve their aspirations by helping them to move into their dream home. One company that will help you to become the face of agency in your area is HomeXperts. HomeXperts is a multi-awardwinning property franchise delivering a consumer-focused estate and letting agency model. Its franchisees deliver a personal agency service operated from home or a small serviced office. This helps them to plan their day around their clients, whilst eradicating the expensive monthly rental costs of a high-street store. Most of its franchisees had little to no previous experience in the property industry before joining HomeXperts, yet its top-earning franchisees join the HomeXperts Altitude Club by earning more than £25,000 in invoiced commissions in a month. By working hard and following the proven franchise model, you could secure your financial future by establishing a profitable and successful estate and letting agency. Its initial two-week intensive Training Academy trains you to National Federation of Property Professional (NFoPP) standards, leading to accreditation from the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA). After your initial training, you will receive 20 weeks of ongoing mentoring and support to guide 16
you through the launch process. Quarterly franchise meetings, monthly business reviews and twice-weekly webinars complete the comprehensive support package. The innovative HomeXperts Hub hosts its ten-volume operations manual, including over 1,000 documents, in excess of 300 webinars and more than 100 marketing materials. With 24/7 cloud-based access to the Hub, you can reach all the documents you need when you need them, helping you to focus on winning new business. HomeXperts retained Gold for The Sunday Times’ Best Estate Agency Franchise in 2015, being winner for the last three years. The innovative franchise model won ‘Best Use of Technology to Improve your Business’ for the West Midlands at the regional Chamber Awards in 2015. HomeXperts believes that your financial situation should not hold
you back from achieving your dreams. For this reason, it has established a range of financial support options to help you start your business. HomeXperts is able to offer up to 100% funding through the government-funded back-to-work scheme FranchisingWorks. It has established key relationships with the major high-street banks, enabling you to borrow up to 70% of the initial franchise fee and first year’s running costs. On an individual merit-bymerit basis, you may be eligible for a selective financial package direct from HomeXperts. To help its franchisees compete in their local market, HomeXperts continues to innovate with its franchise model. It recently launched its Value My Property application that enables users to receive a free instant online valuation of their property, helping to generate more leads for its franchisees. Want to find out more? For a quick, informal chat, call Josh Birbeck, HomeXperts’ franchise recruitment manager, on 01905 678853. He will be glad to answer all of your initial questions. Visit www.home-xperts. co.uk to find out more about the franchise model and read through its virtual brochure. To find out 100% of the information, book your discovery meeting, which are held around the country, including London, Birmingham, Manchester and Worcester by emailing josh@ homexpertsuk.com.
Training Academy at HomeXperts’ Central Support Office
elitefranchise | February 2016
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Nigel Toplis, managing director, The Bardon Group
Improving on the ideal business model
in their brand and planning their marketing campaigns – and yet we see most educational establishments effectively ignoring a system that does all these things for the entrepreneur. So while there is little recognition in academia for franchising – with the notable exception of Lancaster University I might add – what about in government? You would think that the government would promote franchising as a genuine means of Franchising offers myriad benefits for regenerating towns and cities. Surely it can see the logic? Well, some both franchisees and the wider economy. MPs certainly can but frankly it But is there more that can be done to will take a sustained effort by both MPs and, more importantly, by help cement its success? influential members of the franchise community to get the business secretary to become significantly The last ten years has been a period characterised by interested. For now, I continue to huge change – whether that be economic, migrational or look forward to the day when a cultural. In business terms, this has meant a great deal of new government reshuffle creates a new products, services and energy in the marketplace. On the other post: minister of state for franchising. side of the coin, however, we’ve seen the constant displacement Franchising has come a long way and redundancy of employees as manufacturing finds a cheaper in the UK – we have many well cost base and technology develops at a pace most of us can’t keep established franchise brands on the up with. high street regularly and Fortunately, franchising offers the ideal vehicle for individuals competently servicing that might have been made redundant from disrupted industries. There is nothing millions of satisfied These people will want to work for themselves and create a to match good customers. And it is personal wealth while still having the support of an established my fervent belief that brand. This is why franchising is an ideal business partnership. franchising for nothing matches good It’s also why the industry is worth over £15bn and employs more creating businesses, franchising when it people than the combined UK armed forces. And yet franchising creating jobs and comes to creating could be even more successful, employ even more people and help businesses, creating establish even more businesses. ultimately for jobs and, ultimately, My frustration with franchising is not that it only accounts for creating wealth creating wealth. Just around 9% - 10% of retail sales in the UK compared to 45% - 50% because academia, local in the US. It’s not that we still see some failures in UK franchising. councils and government can’t seem Nor is it that the word ‘franchising’ is used to describe everything to grasp it, that doesn’t mean that it from a rail network to a football club. My main frustration is that is wrong. But it is ultimately down to franchising is not the first port of call for universities and colleges the franchising community to better teaching business courses. promote itself and to champion the We lecture students on how to start their own business – on case for franchising. taking responsibility for researching their market, investing February 2016 | elitefranchise
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OVER TWO DECADES OF SUCCESSFULLY SETTING Cleaning
1993
“The Dublcheck Franchise was U.K. based, was relatively recession proof and was a basic business concept easily scalable. Most importantly of all it was backed by the support of an established Franchisor that really appealed to us” - Mark
ESTABLISHED
PETER & DENISE Previously Logistics Manager Starting turnover: £48k Selling turnover £140k
MARK & JAMES Previously Textile Manufacturers
“Once I met the Dublcheck team I found the concept of commercial cleaning very appealing” - Joanne
CH BL E Cleaning
JOANNE Previously Project manager at Bank of Scotland Starting turnover: £50k Current turnover £175k
Current turnover £590k
CK
DU
Franchise owners say:
PEOPLE UP IN BUSINESS
2016
“We found Dublcheck during our research into the franchise industry and immediately liked its concept of guaranteed turnover*, with Dublcheck finding your clients and guaranteeing the level of turnover you desire.” - Peter
Franchising
19
LEN DONNELLY
93-2013
Previously Retail Manager Purchased resale Current turnover £350k
ALL FIGURES CORRECT AT THE TIME OF GOING TO PRESS
“A big thank you to the Dublcheck team, and o receive an award was brilliant” - Len “Sonal and I can’t belive a year has past since we decided to join this wonderful franchise. We both wish we had done this years ago.” - Mitesh
SONAL & MITESH Previously Quantity Surveyor Starting turnover: £14k Current turnover £150k
BUILD YOUR BUSINESS THE EASY WAY GRAHAM
NO NEED TO DO ANY SELLING... WE GET THE BUSINESS FOR YOU!
GRAHAM & JAN
We Guarantee:
Previously MD of Colouroll Starting turnover: £48k Selling turnover £400k
• Turnover • Growth • Support
Previously Police Officers Starting turnover: £48k Current turnover £200k
Full training, support and low investment Invest from £9,950 to £190,950. Turnover from £14,000 to half a £1/2 Million per annum. With over 100 franchisees nationwide, and many more areas and opportunities available, you too could benefit from the proven Dublcheck system. Dublcheck’s unique franchise system is a proven way to build a successful business in a multi-billion pound cleaning industry.
Further Details:
0800 317236
email: franchise@dublcheck.co.uk web: www.dublcheck.co.uk
Carol Stewart-Gill, Founder and Chairman of Dublcheck
Dublcheck, The 20th Fastest Growing Company in the UK - Official Source, Sunday Times
APPROVED FRANCHISE ASSOCIATION FULL MEMBER
*Guarantee turnover is not a guarantee of profit.
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ADVERTISING FEATURE
Q&A
with Carol
Carol Stewart-Gill, founder and owner of Dublcheck, answers all of your burning franchise questions Why do you think franchising works? I have been franchising for 22 years now and have been told many times that people wished they had done it sooner. I have seen many people flourish both financially and in their work life balance since moving into franchising.
How much do I need to invest in a franchise? This can vary enormously but my advice is try not to invest a huge amount. Dip your toe in the water, see if you like the industry you have chosen and then you may have the option of reinvesting safe in the knowledge that you will be successful.
What sort of industry should I go into? It does not necessarily have to be something you are familiar with. A change can be good. I would choose a trusted industry that you believe is recession proof.
Do I need expensive premises to run my franchise? No. I know of many successful management franchises that operate from home and enjoy low overheads as a result.
I am a business executive tired of working and making money for someone else. Is franchising a good option for me? Franchising is probably the way forward for you. I know of many executives who have brought their expertise to their franchise and have not only befitted financially but have also enjoyed lots of flexibility to work the hours that they choose.
I have been looking at a franchise but the company has only recently started franchising. I like the service they offer but can’t find any concrete evidence of success. What should I do? It is as well to join a well-established, successful franchise company whereby you can speak to existing franchisees who can tell you about their experience of working with the franchisor and how their business has evolved.
How much support should I expect when investing in a franchise? When buying a franchise, the idea is that you are not on your own. Ask other franchisees how supportive the head office staff are because when you start your new venture, it’s very important that you have the support of people with experience, knowledge and an interest in your success. February 2016 | elitefranchise
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COVER STORY
NOT YOUR AVERAGE JOE JOE TEIXEIRA’S DREAM OF BECOMING A PROFESSIONAL FOOTBALLER WAS CUT SHORT BY INJURY. BUT IT SEEMS NOTHING CAN GET IN THE WAY OF HIS LATEST GOAL: TAKING HARRY RAMSDEN’S BACK TO THE TOP BY ADAM PESCOD / PHOTOGRAPHY BY NATALIE SEERY
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COVER STORY
T
o say that Joe Teixeira has an impressive CV would be something of an understatement. His career in the food industry has encompassed the likes of Pizza Hut, Burger King and, most notably, John Lewis. However, things may have played out very differently for the man who is now trying to rekindle the fortunes of Harry Ramsden’s. After moving to the UK with his family at the age of 12, Teixeira had his sights set on becoming a professional footballer. He broke into the senior side at Barnet before earning a trial at high-flying Crystal Palace. But his footballing dreams were cut short by knee injury. “I had to put a stop to it and my father said, ‘You better get into the real world, son’,” says Teixeira. Fortunately for Teixeira, he already had a decent grounding in food service. With professional football wages in the early-1980s incomparable to the astronomical levels of today, he had to supplement his income in other ways. “I was working at a restaurant in Barnet, which is where I first got into the industry,” he says. He also enjoyed a stint on board the SS Carnival cruise liner – working as an assistant food and beverage manager – before eventually joining Whitbread as a graduate trainee in 1984. Two years earlier, Whitbread had brought Pizza Hut to the UK in a joint venture with PepsiCo Foodservice and it was at the pizza chain where Teixeira started to show his potential. Within three years of joining as a fresh-faced graduate, he became an area manager and later, following a stint with Burger King, he was flown out to Portugal to establish Pizza Hut in his native country. “They already had one site there: because they were operating it badly, the first thing I did was close it down, reformat it and reopen it,” he says. “We then started opening a number of sites and by the time I left Portugal we had 11 open and another five in the pipeline.” Upon returning to the UK, Teixeira had a short spell at Bright Reasons – where he helped establish the brand now known as Bella Italia – before moving on to Greenalls Pubs and Restaurants. As operations director for Henry’s Cafe Bars, which had joined Greenalls’ portfolio as part of its acquisition of competitor Devenish, Teixeira set about imprinting his vision on the brand he’d first encountered at former employer Whitbread. “I never worked for Henry’s when I was at Whitbread but I saw it as a Parisian upmarket café bar,” he says. “Devenish decided to turn it
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COVER STORY
back into a pub so when I got it, I repositioned the brand and it was very successful.” Teixeira’s exploits at Henry’s didn’t go unnoticed and, after six years with Greenalls, he was poached by Parisa Cafe Bars to help build its brand in the UK. The company was headed up by Nader Haghighi, who’d bought out Cellar 5, the off-licence arm of Greenalls, in 1997. He had a vision for a chain of bars that served food and sold an extensive range of wines at off-licence prices. “In Henry’s Café Bars you paid the retail price whereas in Parisa Café Bars we wanted the food to lead but not rip people off on wines,” says Teixeira. “So we had 250 different wines at offlicence prices and only charged the customer a £5 corkage fee.” The concept took off and three years later Parisa was acquired by pub operator SFI. “We sold it for a nice tidy sum and I bought a holiday home in Portugal,” says Teixeira. “I’m still enjoying it today.” Given the rich experience he had under his belt, Teixeira thought it was time to strike out on his own. “I got some confidence, approached some banks and investors and was very close to buying the Pitcher & Piano chain from Wolverhampton & Dudley, which is now Marston’s,” he says. However, Teixeira was forced to lower his offer when September 11 threw the world into financial turmoil. With Wolverhampton & Dudley holding out for the original price, he had to pull out of the deal. “At that time, I still had to pay the mortgage and I was approached by John Lewis,” he says. At first, Teixeira had some reservations about joining John Lewis but he was eventually won over by the vision of Gareth Thomas and Lake Mayhew, respectively the company’s retail director and managing director. “My initial thought was, ‘Why would I want to be involved in something stuck in the middle ages?’, says Teixeira. “But the plans that both Gareth and Luke had at the time really captured my imagination.”
As head of food service, Teixeira was tasked with transforming the catering offer in John Lewis’s department stores, which was basic to say the least. “They were still doing scones and that was about it,” he says. Over the space of almost ten years, Teixeira engineered an incredible turnaround for the business. “We grew profits to around £24m EBITDA from a loss-making position when I joined in 2001, which was quite a feat,” he says. It all stemmed from a decision to invest heavily in the training of kitchen staff. “Everybody in those times was trying to deskill to keep costs down, whereas I thought that John Lewis customers deserved more,” Teixeira adds. “So instead of deskilling, I upskilled. I always say to myself, ‘I arrived with a few cooks and I left with over 500 chefs in the business.’” While he had originally only intended to spend two or three years with John Lewis, the fact that he stayed the best part of ten years owes much to Teixeira’s love of the company. “It was a wonderful organisation; the best organisation I’ve ever worked for in terms of looking after its people and its principles,” he says. “I was privileged to be part of that for ten years.”
I BELIEVED I NEEDED TO TAKE HARRY RAMSDEN’S BEYOND ITS YORKSHIRE ROOTS AND
MAKE IT EVEN
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fish and chips in the world. But when I asked them when they last visited, they couldn’t remember,” he says. “So despite its size – it had just over 30 restaurants when I arrived – the brand punched above its weight. It was almost a McDonald’s level of exposure but without the presence.” Suffice to say, Teixeira saw a fantastic opportunity for the company; one it had failed to capitalise on thus far. “There are over 12,000 fish-and-chip outlets in the UK so my initial thought was: ‘If we are so dominant as a brand, shouldn’t we have 10% market share?’” He also had an overarching vision for the brand that he believed could stand it in good stead for years to come. “I believed I needed to take Harry Ramsden’s beyond its Yorkshire roots and make it even more British,” he says. To this end, Teixeira embarked on an extensive programme of site renovations across the Harry Ramsden’s estate. This included a £1m refit of its flagship outlet in Bournemouth, which currently holds the title of the world’s largest fish and chip restaurant. It also saw the closure of the company’s first ever restaurant in Guiseley, West Yorkshire, which was opened by Harry Ramsden in 1928. As Teixeira explains, it was a tough decision but one that was taken in the best interests of the company.
But after an incredibly rewarding stint with the company, it was time for Teixeira’s next move. “Gareth had retired a year before and he encouraged me to expand my horizons,” he explains. “So I started looking around for my first CEO role.” That role came with Boparan Ventures, the investment vehicle of serial entrepreneur Ranjit Singh Boparan. Previously known for his foodmanufacturing businesses, Boparan made his first move into food service with the acquisition of seafood restaurant chain Fishworks in January 2009. A year later, he acquired Harry Ramsden’s from SSP and set his sights on expanding the popular brand to all parts of the UK. However, the optimism that came with the acquisition was tempered when Boparan discovered the company was in a rather sorry state. “It was probably in a worse place than he was expecting it to be,” says Teixeira, who was hired by Boparan in September 2011 with a simple brief: to reposition the brand and return it to the glory days of the late-1980s and early-1990s. The first thing that struck Teixeira was the significant difference between the brand’s reach and the actual size of its network. “Every time I did some customer research, everybody said they loved Harry Ramsden’s – they thought it was the best February 2016 | elitefranchise
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Peter Moore, Director PMA Ltd t/a www.superyachtsdirectory.com “I have sold (and bought) through the Business Partnership and have found them to be very thorough and professional in all their undertakings. I would not hesitate to recommend them and would hope to use them again in the future.”
COULD YOU BE A BUSINESS BROKER? Do you want an exciting and rewarding new business career? Would you like to manage a home-based business that offers greater job satisfaction and provides an excellent life work balance? The Business Partnership helps hundreds of business-owners every year to sell their businesses. Why not join our network of professional business brokers? As a regional partner, you will enjoy the benefits of being part of a mature organisation, which has been trading since 1979, and the support of like-minded professionals.
“I could not operate as cost effectively without the support of the franchise. The knowledge and support from fellow partners is always useful and allows me to run my own business, whilst being part of a good network of business brokers.” Paul Dodgshon, ManchesterCentral
Whatever you want for your future, we can help you get there. For more information: 0870 444 0 555 | www.business-partnership.com | enquiry@business-partnership.com ULTI001 Business Partnership FP Feb16.indd 1
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COVER STORY
“It was an exceptionally difficult decision, which was not taken lightly, especially considering the sentimental value associated with the property,” he says. “[But] that outlet in particular was in dreadful shape with property structural issues [that] required an enormous investment to correct and, quite simply, this made the commercial case untenable.” The restaurants weren’t the only things that needed transforming: the culture of the company was also calling out for an overhaul. “For me, everything we do is about the customer,” he says. “I can spend millions on refurbishing all the sites and acquiring new ones but what I can’t do is deliver the perfect service to the customer. So my biggest challenge going forward is not finding sites; it’s finding the right people to deliver the vision that we have created.” Thankfully, with 25 years in the industry behind him, Teixeira wasn’t short of trusted contacts. “I was very fortunate,” he says. “I could go and handpick people from John Lewis and the other companies I’d worked for.” The other area of the business that had been flagging was its franchise division. At one point, the company had partners in all corners of the globe and, around the turn of the millennium, had tentatively trialled some franchises in UK motorway service stations. But once again, Teixeira found himself having to start from square one. “I had to start from scratch because the franchise agreements were so basic,” he explains. “They lost some really quality franchisees because they didn’t provide the support. When you are franchising a business, you need to set the building blocks at the beginning.” The first step was appointing a team of franchise
lawyers and applying for membership of the British Franchise Association (bfa). “Initially we joined as associate members and we have now become full members,” says Teixeira. “Everything had to be put in place, including the support packages for financing with the banks.” The focus now is on firming up a range of concepts to suit all locations, whether that’s a local high-street, high-footfall shopping centre or seaside promenade. In addition to the company’s full-service restaurants, franchisees can operate a traditional takeaway or a hybrid concept that offers assisted service like Nando’s. A fourth concept, which Teixeira describes as the ‘pub model’, is also in the pipeline. “We are always looking at the market and saying: ‘What fits Harry Ramsden’s?’” he says. “We are not going to bastardise it; we are going to keep it in line with our heritage but we are also going to adapt to the market, modernise it and make it relevant.” Once the concepts are set in stone, Teixeira’s attention will turn to growth. Franchises have already been sold for Yorkshire, Scotland, West Sussex and the combined territory of Essex, Hertfordshire and Cambridgeshire. And that’s just for starters: Teixeira is aiming to open over 300 new outlets in the next five years, 100 of which will be company-owned and the remainder franchises. In light of these growth projections, it’s not a surprise that Teixeira is seeking franchisees who can operate multiple outlets. “We are looking for people who have got the capability to grow with us and open at least ten sites,” he says. Beyond the UK, the company has recently launched in Qatar and is set to open its first outlets in Jeddah this month – marking its return to Saudi Arabia after a ten-year absence. With other deals close to completion, Teixeira is confident the brand is ready for a successful return to the international stage. “I believe the proposition is right, I believe we have got the supply chain right but, above all, the demand is there,” he explains. “There are a lot of American brands in both the Middle East and the Far East that work really well. They are [also] crying out for British brands and Harry Ramsden’s is the only bona fide British restaurant brand.” In addition to further territories in the Middle East, Teixeira is currently targeting China, Hong Kong and tourist destinations around Europe. After that, his ambition is clear: to take Harry’s worldwide. “Everybody thinks I’m cuckoo,” he laughs. “But that’s the way it’s going.”
They lost some really quality franchisees because they didn’t provide the support
February 2016 | elitefranchise
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Exciting
cleaning franchise opportunities available
Vapor Clean are the only company based around Vapor Steam technology, offering an extensive range of eco friendly cleaning solutions. This means franchisees beneft from the multiple income streams it creates. Cleaning is BIG business and the industry continues to grow as people lead busier lives and choose to pay for cleaning professionals rather than do it themselves. Vapor Clean offers potential franchisees the exciting opportunity to own a cleaning business in a geographical UK location. You’ll benefit from our successful business model and be associated with our reputable brand while receiving full support to run your business.
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Oven Cleaning
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One package, multiple income streams Vapor Clean stands alone from other franchise packages by offering unique methods within the industry and having a multitude of services generating income. A Vapor Clean cleaning franchise gives you as a potential business owner the ability to offer a wide range of domestic and commercial cleaning services including: • • • •
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The Vapor Clean Franchise Investment: For the initial small investment of £9995 you could expect to generate a turnover in excess of £70,000 in year one. Income is generated incurring minimal business overheads, giving a fantastic profit margin and remember, with a Vapor Clean Franchise Package there is no ceiling on earnings potential. Vapor Clean's training and revenue streams provide natural growth year on year with a number of ways to grow and ensure potential of the business in your territory is maximised.
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Start your Vapor Clean cleaning franchise today! for more information call us on 0845 120 1310 visit us at stand 660 or visit our website vaporclean.co.uk/cleaning-franchise-opportunities VAPO001 Vapor Clean DPS Feb2016.indd 2
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Where’s the fire? Secure your Future with a Jackson Fire & Security Franchise A Jackson Fire & Security franchise meets the constant demand for legally compliant Fire Safety systems from businesses and organizations throughout the UK. Profit from 25 years of industry experience, gold standard industry accreditation and a solid reputation within this lucrative sector. With an increasing demand for property protection and surveillance, and an ever present need for fire protection why not find out how you could profit from running a Jackson Fire & Security Franchise. • A Recession resilient business • Fire Alarms - a requirement for every business and managed property • Growing demand for property protection and surveillance • Repeat business maintenance and servicing • 25 year reputation • Gold standard Industry Accreditations As this is a management franchise no previous industry experience is required.
Call us on 01352 755866 for more information or email: franchise@jacksonfire.co.uk
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Tony Bowman, managing director, etyres
Committed franchisees make for a successful franchise Finding out how many franchisees stay the course can be a good way of establishing which franchise investments are actually worth stumping up for Before you invest in a franchise there are so many things to consider. Some of them are obvious, such as the full cost involved and what training and support you will receive. However, there is another key indicator that reveals a lot about the business and yet is often overlooked: has it got any current franchise owners who have renewed their contracts and have been trading successfully for many years? This sort of commitment demonstrates that the franchisor is delivering a sound and sustainable business opportunity. You don’t hear that old saying “behind every successful man there is a strong woman” much these days – for obvious reasons. However, it is fair to say that behind every successful franchise is a network of hard-working and selfmotivated franchise owners who are investing everything in growing the business. After all, if they deliver a high level of customer service and execute their everyday business with pride and professionalism, it ultimately reflects well on the brand as a whole. This is why it is
vital to match each franchise owner to the right business, in order to ensure that the partnership can thrive for many years. The first franchise owners to join etyres back in 1996 have just celebrated their 20th anniversary with us. Husband-and-wife team Pam and Stuart Cass have expanded their Portsmouth territory to encompass Southampton and have worked alongside us as we have grown and evolved. I cannot stress enough that these are the kind of people you need to talk to if you are thinking about investing in a franchise – they will tell you how it is. The chances are that they have experienced the full range of highs and lows that befall all business owners, including the effects of an economic slump and the pressure of more competitors entering their market. Open communication between prospective franchise owners and a franchise network is vital in establishing that it has a proven track record. So if you are looking to invest in a franchise, make it personal and get to know about the existing franchise owners – you could end up working together to achieve the same goals. February 2016 | elitefranchise
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s es tn fi
Fl ex ib le
Busylizzy
Busylizzy’s postnatal fitness classes are making it easier for parents to get fit while their infants have fun BY Josh Russell
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stablishing a good fitness regime is rarely compatible with taking care of a small infant. Charging from creche to circuit training can cause enough of a headache; package in inflexible fees and booking arrangements and it seems likely to become a full-blown migraine. Fortunately, postnatal fitness club Busylizzy has created a flexible solution that’s suitable for parent and progeny alike. Co-founders Julie Yates and Sarah Monk first saw the opportunity to create a different kind of fitness club when they were looking for baby classes. One of the things they noticed was that there was an branding was finding something that seemed fresh inherent inflexibility about the way mum and baby and stimulating but that wasn’t heavy on babyish groups were structured. “We always found it a bit iconography. “This is somewhere parents go, hit and miss,” says Yates. “The traditional mum exercise, meet like-minded people and enjoy some and baby groups seemed to be stuck in 1985.” Not classes with their children,” she says. “We wanted to only were many baby classes held in unsuitable get that across in our branding without it all being locations like dusty and draughty village halls but cutesy and full of teddy bears, toys and rattles.” parents would often be expected to cut a cheque After conducting focus groups and putting the for a term of classes, something that seemed contract out to tender, Busylizzy found its current rather anachronistic by 2009. “I don’t know about designer, who has continued to guide its branding you but I can’t remember the last time I used my to this day. chequebook,” she adds. But whilst its unique approach to design has And the future business partners found going to certainly made it popular with its customers, the gym wasn’t much better: any time they wanted Busylizzy’s broad range of classes is undoubtedly to attend a fitness class they would also what has helped it stand out. “Each club have to worry about childcare. “I had to has access to 21 classes and they can put try and juggle creche bookings,” Yates any combination of those classes on their says. “My little ones didn’t always want to timetable,” Yates says. The classes are go to the creche so I’d have tears.” split into three different groups: the first It occurred to Yates and her co-founder focuses on ‘Mummy & Me’ post-natal There’s no reason that there had to be a way of combining fitness, offering things like Pilates, yoga a three-month-old fitness and baby classes in a way that was and buggy fitness. The baby classes focus baby can’t chill out on calming and nurturing activities – better for both parent and child. “There’s no reason when you’ve got a threeencompassing things like reflexology, on the matt or a month-old baby that they can’t chill out massage and painting – whilst sessions duvet while mum on the matt or a duvet while mum does for toddlers provide more active classes, does Pilates or Pilates or yoga,” she says. “So we put all including Hip Hop Tots and Mini these things into the pot and Busylizzy Explorers. “We span the first four years yoga was born.” that parents have with their little ones, Before long, the nascent franchise was pretty much up until school,” says Yates. coming to fruition. “It took about three Busylizzy has also revolutionised the months working from my kitchen table at home and way that parents pay for fitness and children’s classes. recruiting instructors,” says Yates. “Because of my “Traditionally as a parent you would buy a term of background in leisure, I didn’t find it too daunting.” Pilates and then buy a separate term of a baby-masShe began tracking down independent teachers sage course,” Yates says. “We’ve pulled it all under from local magazines and classes, asking them to one umbrella and parents pay a monthly memberwork under the Busylizzy brand and explaining ship, like you would at a gym.” Busylizzy’s online their plan to bring a multitude of parent and child booking and smartphone app also allow much more classes under one roof. “People soon came round to flexibility in the booking process, enabling parents it and it was one of those ideas where people were to book any combination of classes they want each like: ‘Why hasn’t this been done before?’” she adds. week and easily cancel last minute should something Considerable attention was also paid to Busylizzy’s come up. “We’re able to offer people the flexibility branding. “As we’ve grown, it has proven to be a that they want,” she says. “It’s completely up to you real clincher,” Yates says. The main focus with the as a parent how you manage it.” February 2016 | elitefranchise
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Busylizzy
Thanks in part to the flexibility it offered, the franchise proved particularly popular with parents. Before long its co-founders found themselves inundated with enquiries from people who wanted to see a Busylizzy open in their area. “Former members that had moved to another part of the country were getting in touch saying, ‘I really wish there was a Busylizzy here’,” Yates says. The sheer level of demand made franchising the natural choice and gave Busylizzy an inbuilt stock of potential franchisees. “We’ve sold five franchises without ever actually having advertised,” she says. “They’ve all come from word of mouth and people asking if they can get involved.” This more organic recruitment has meant that Busylizzy’s franchisees are a comparatively diverse bunch. “All of our franchisees come from completely different backgrounds,” says Yates. From a seasoned Pilates practitioner to someone who formerly worked in central government, Busylizzy franchisees don’t necessarily fit a rigid template. The one thing they do have in common is that they are often
franchisees might have but it also provides all of the franchise’s marketing materials, from print ads to social media graphics. “At the touch of a button, franchisees have access to everything they need,” Yates adds. And franchisees aren’t the only ones sitting up and taking notice. In 2012, just a few months after it had launched, Busylizzy won the Toast of Surrey award, a Dragons’ Den-style pitching event for local businesses. “It was quite a full-on morning of being interrogated,” says Yates. “We were so pleased to win that award because we worked really hard for it.” Since then it has scooped plenty of other gongs, including a Mumpreneur Website award and a BBC Community Heroes award. “We’ve won a couple of awards every year from all sorts of different places,” she says. “Hopefully they show that we’re doing things a little bit differently.” Whilst much of Busylizzy’s focus thus far has been on Surrey, it is now looking to kickstart its national expansion. And since it gained accreditation with the bfa in December last year, the enquiries have rolled in thick and fast. “We’ve had more enquiries in the first two weeks of January than we had in the whole of 2015,” she says. “We’ve got people in Essex, Devon, the Midlands and Wales getting in touch.” Busylizzy’s sixth site is due to open in April this year; it is aiming to open a further six this year and be up to 30 by the close of 2017, as well as adding to its portfolio of signature classes to offer even more variety to its customers and franchisees. “Growing the franchises and developing the class offering,” Yates concludes. JULIE Yates co-founder, Busylizzy “That’s where the future will be.”
We would never say that a Busylizzy franchise is an
easy option because it’s not;
it’s hard work professional women seeking a more flexible working arrangement after having children. However, Yates is keen to stress this doesn’t mean it’s a cakewalk. “We would never say that a Busylizzy franchise is an easy option because it’s not; it’s hard work,” she says. “It’s a full-time job; it’s just a full-time job that can be done completely flexibly.” Fortunately, there’s plenty of training available to help new franchisees get on their feet. As well as providing five days of initial training and quarterly meetings to share best practice, Busylizzy has also found a high-tech way to help franchisees learn everything they need to know. “Instead of putting together a paperbased operations manual, we’ve actually created an online portal,” Yates says. Not only does it contain all of the franchise’s processes and the answers to any potential questions that 32
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Time for action! Look into having your own B2B consultancy, working closely with a 102 year-old business. CPA Online is the online division of The Credit Protection Association plc (established in 1914) with an enviable record of providing highly effective credit management systems to businesses who sell their goods or services on credit account. We supply these companies state-of-the-art, online credit intelligence to help avoid losses. They also suffer from slow-payers with resultant cash flow issues. CPA solves the problem by prompting slow-payers to settle their bills. Over 80% of all accounts are resolved within days and maximum goodwill is preserved.
Who are we looking for?
We have successfully worked with sales agents for thirty eight years, so we understand how to coach and support people to achieve their potential. For the first time, we are offering the best of these agents franchises in recognition that they are the ones with determination and entrepreneurial spirit to achieve even more within their own businesses. We now seek similar individuals as franchisees who are also ebullient, self-motivated and have a can-do attitude! They will have a broad business, fi eld sales, ex-Services or management background.
What you must have:
• Reliable vehicle • Total determination to succeed • Ability to deal at directorship level • Dynamic, proactive and hardworking ethos • Broad business, field sales, ex-Services or management background • Capacity to fund a modest franchise fee
Enquire TODAY to learn more about this profitable and exclusive franchise opportunity! Call Peter Uwins on 020 8846 0000 or email your interest to franchise@cpa.co.uk alternatively visit www.cpa.co.uk/franchise
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CPA’s headquarters, London
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HIRING FOR GROWTH
A helping hand Once a franchise is up and running, a franchisor might look to add a franchise development manager to their team. But when’s the best time to hire? BY ADAM PESCOD
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hether you’re franchising a business for the first time or have acquired the master licence for an overseas brand, the recruitment of a franchise development manager is a necessary step for many franchisors. However, while the rationale for bringing an FDM on board is often the same, the timing of such an appointment tends to differ. Sitting pretty Dog-sitting franchise Barking Mad has grown at an impressive rate over the past 16 years. The company was founded by Lee Dancy who, after receiving a puppy as a Christmas present, saw the need for an alternative to kennels when it came to dog care. “She was going on a family holiday and she had nobody to look after the dog,” says Richard Dancy, marketing manager at Barking Mad. “A dalmatian puppy is a bit of handful and a kennel was not something she was willing to do. She took [the dog] back to the breeder but the next time she found somebody who was able to look after it. Very quickly, she decided that could be her business.” Upon launching the business, Dancy knew that Barking Mad was a concept that could be franchised across the UK. “She always had in the back of her mind that it was something that could be replicated and leveraged via franchising,” says Dancy. Initially, Dancy enlisted the help of a franchise consultant, a franchise lawyer and the British Franchise Association, all of whom could offer the necessary support to get the franchise off the ground. However, as the company approached the ten-franchise mark, it became clear that Dancy needed an additional pair of hands to help steer the ship. It was for that reason she hired Barking Mad’s first ever franchise development manager in the shape of Nikki Brown. “Like many franchisors, Lee had her own company-owned outlet but the next stage was to sell her business and concentrate on being a franchisor rather than a provider of pet care,” says Dancy. “She brought Nikki in after about three years because she needed help supporting the franchisees.”
As with any recruit, it was crucial that the franchise development manager was the perfect fit for Barking Mad. While Brown has now departed the company to set up her own business, the fact that she spent over a decade at Barking Mad is testament to her compatibility with both the brand and its owner. “One of the reasons Nikki and Lee worked so well together for so many years is that they are very similar,” says Dancy. “They shared the same values and both of them loved dogs. But Nikki is also quite entrepreneurial and had the same spirit and same desire for the business to expand.” Perfect blend With 74 territories under its belt, coffee franchise Cafe2U has built a strong presence in the UK since landing on these shores just over a decade ago. Tom Acland, founder and managing director of Cafe2U UK, first encountered the brand in Australia where he’d been setting up an IT company. “The first Cafe2U concept van came to our business,” says Acland. “I went out every day, bought coffee and decided it would be a good idea and good timing to bring it back to this country.” At the time, the British coffee market was starting to stir and, combined with the low overheads and flexibility offered by a Cafe2U franchise, Acland was convinced the brand would translate well to the UK. “I could see from the Australian franchisees that you could run it as a part-time and full-time business,” he says. “You could run it five days or seven days a week.” Nevertheless, Acland’s limited experience of franchising made the early appointment of a franchise development manager essential. Rather than throw somebody straight into the role, Acland brought in his chosen candidate as a pilot franchise before promoting them to FDM. “I wasn’t prepared to recruit my first franchisee without that experience in the business,” he says. “It needed to be somebody who had been there, done it, knocked on the doors and sold the concept.” As Acland explains, appointing an FDM freed him up to focus on businesscritical issues, safe in the knowledge that
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Fosse Healthcare Franchising Healthcare Staffing Support Agency Are you ready to run a fast-paced and exciting franchise? The Opportunity Fosse Healthcare have a number of opportunities throughout the UK for ambitious, salesoriented individuals, to run their own business. If you’d like to throw off the shackles of employment and be your own boss, the Fosse Healthcare franchise might be right up your street. Our Fosse Healthcare franchised businesses provide specialist temporary staffing support services to care homes and hospices. We have a proven business model that is providing very generous incomes for our best franchisees. Our business systems, training and support will give you everything you need to learn how to operate a successful business.
Six figure personal income Growing marketplace Proven business model White collar opportunity Be your own boss Management franchise
Testimonial
“I started my Fosse Healthcare franchise in October 2013. We have grown a lot faster than we expected achieving annual sales of £880k in our second year. We’re on track for sales of £1.3million for year three and I now enjoy a very healthy six figure income. I’m so delighted with my Fosse Healthcare franchise that I’ve just bought another one!” Ken Rudge - Fosse Healthcare (Devon) December 2015
To find out more visit: www.fossefranchise.co.uk Call us on: 0116 402 7199 Email: info@fossefranchise.co.uk FOSS001 Fosse FP Feb 2016.indd 1
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HIRING for growth
I wasn’t prepared to recruit my first franchisee without that experience in the business Jo Stone, Puddle Ducks
the franchisees were being well managed. “It allowed me to guide the business slightly more strategically and look for partners in the supply chain while they were out in field answering all of the franchisees’ questions,” he says. “It meant I could actually manage the business rather than be too front-end-focused.” Cafe2UK has since appointed another two franchise development managers – each of whom is responsible for about 30 franchises – as well as an operations director and franchise recruitment manager. “I have always recruited the next FDM prior to needing to them so that they’re trained and understand the business before they are needed,” explains Acland. “That means we will be adding our fourth when we get to 90 franchises so that they are here as we grow to 120.” Pitching up Now a fully-fledged franchise, Wigwam Holidays started life as a small-scale
operation in Scotland. After a stint working for the Countryside Commission – where he designed low-cost accommodation for people hiking along Scotland’s long-distance footpaths – the company’s founder Charles Gulland established All Round Buildings, constructing lodges from rounded pieces of locally sourced timber. And it wasn’t long before he had devised the ‘camping pod’ that was the inspiration behind Wigwam Holidays. “We had a lot of experience in designing rural buildings from homegrown timber but we saw a very clear opportunity to diversify into the holiday business,” says Gulland. “So in 2000, we started with our first four sites and that was the beginning of Wigwam Holidays.” For the best part of 13 years, the company grew organically, constructing wigwams and selling them to sites that would operate under the Wigwam Holidays banner. However, once it had amassed 55 sites, it became apparent that franchising was the best way to ramp up the company’s growth. “It was clear that there was huge potential in the Wigwam brand but it was also clear that we were undervaluing it by licensing the brand,” says Gulland. “We just knew the way forward was to turn the whole business into a more formal franchise model.” With six franchisees signed up, Gulland has now started to think about recruiting an experienced franchise hand who can help take the company to the next level. “We are probably at the point to start looking for a franchise development manager,” he says. “It would be interesting to bring somebody with that industry experience into our team.” Like many franchises, Wigwam Holidays relied on external parties in the early stages: a consultant helped put together its operations manual and a lawyer took care of the franchise agreement. But it’s now time to bring a seasoned franchise professional on board. “We have got a strong brand and a good ops manual but, as we grow this, we could probably do with some specialist expertise,” Gulland concludes.
February 2016 | elitefranchise
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ADVERTISING FEATURE
How to improve your credit rating Franchising is playing an ever more important role in supporting enterprising individuals who are setting up their own business. However, if you’ve had credit difficulties in the past, what can you do to get the backing of a bank to support your franchising plans?
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our credit history can affect your ability to borrow money from a bank but a poor credit rating can have a far wider impact on your ability to get store credit, a mobile phone contract or even pay insurance by monthly installments. It is worthwhile checking your credit report to ensure that the information held on your file is accurate. Mistakes can happen that may restrict your chances of obtaining credit so it is important to regularly check the records and to do this before making any major application. There isn’t just one credit file and don’t assume that all your files will be identical. Your credit files are held by Experian, Equifax and Callcredit. You have a statutory right to check your files with all three credit reference agencies. Here are some of the things that could have a detrimental influence on your credit rating: • Significant existing debt • Multiple recent credit applications • Payment arrears • Late payments • Default information • County Court Judgments • Financial association with someone who has a poor credit history • Not being on the electoral register • Credit card accounts which aren’t being used • Frequent changes of address
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Clearly it is best to avoid doing anything that could adversely impact your credit history. Don’t worry if your credit rating isn’t in the best shape because there are simple steps you can take to improve your chances of securing the financial backing you require. The first step is to stop applying for credit until you’ve sorted out any problems. Every time you apply for credit it leaves a footprint on your file. You should fix any mistakes on your credit file by complaining to the relevant credit reference agency. They have 28 days to investigate your concerns and either remove the error from the file or explain why they may disagree with you. Get on the electoral register if you haven’t already done so and cancel any unused credit cards. If you have defaulted on any credit agreements in the past don’t bury your head in the sand; speak to the lender and come to an arrangement to settle any outstanding debt. Moving forward ensure that you make all payments on time by setting up direct debits as this shows that you are a responsible borrower. Often these direct debits just cover the minimum payment, so if you want to clear your debt quicker you’ll need to make additional payments but at least you’ll have the peace of mind of knowing you won’t miss a payment. Whilst having too much debt is to be avoided, if you have never borrowed before this can also work against you. If you have
elitefranchise | February 2016
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ADVERTISING FEATURE
UK and it can have a devastating impact on unsuspecting individuals who apply for finance. It can take a long time before you spot that you are a victim of identity fraud, and it can also take a long time to recover from it. Anyone can be a victim of fraud, but you can take a few simple steps to protect yourself. • Shred or destroy documents that contain personal information before throwing them away • Read all bank and credit card statements regularly to check for suspicious transactions • Report theft as soon as possible • Never disclose your personal information to cold callers without verifying them • Don’t disclose too much personal information on social networking sites • Register to vote at your current address • Redirect your mail via the Post Office if you move address • Never write down or share passwords or PINs • Don’t use the same password for logging into all your sites and change them regularly • Check your Credit Report regularly
Whilst having too much debt is to be avoided, if you have never borrowed before this can also work against you never had a credit card or a loan, lenders cannot review your track record to establish whether you are capable of sticking to a repayment plan. You may need to build your credit history before applying for any major financial commitment. There are credit builder cards you can apply for which are designed to help demonstrate your repayment history and there is no interest to pay provided you repay the card in full each month. Obviously if you have an unused credit card you can start using that to rebuild your credit record rather than applying for a new card. If you’ve had joint finances and have split with your partner, then ensure that you financially de-link as soon as your finances are no longer linked to stop their credit history affecting yours. Identify theft and fraud is a rapidly growing problem in the
By following these simple steps you can prevent fraud destroying your personal credit record. You should start addressing past problems straight away so that you will be in a position to apply for financial assistance from a bank when you find the right franchise opportunity for you. Lenders with a specialised franchise department, such as Lloyds Bank, are the best bet for funding the franchise opportunity you are looking at. They will have a team of trained managers who understand franchising and are likely to have a track record of funding existing franchisees in the brand you are looking to invest in. If you are finding it difficult to get credit, you may find it beneficial to apply to your own bank as they already have an established track record with you. Contact Richard Holden, head of franchising, Lloyds Banking Group Tel: 07802 324018 Email: franchising@lloydsbanking.com Website: www.lloydsbank.com/ franchising February 2016 | elitefranchise
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01/02/2016 17:11
Proven franchise opportunity with one of the world’s leading cleaning companies: • 35 years’ cleaning expertise • Growing market • Full support and training • Repeat business • Professional support from a franchisor with over 55 years’ experience • Employ staff you trust • Dedicated marketing assistance
INVESTMENT FROM £19,995
“The training taught us everything we needed to know about running a Merry Maids franchise, so we knew exactly what to expect when starting.”
“We both hold strengths in different areas and we are able to support each other in all situations we come across.”
Mandy Ascroft and Trish Malley Merry Maids of Wigan
Anna and Kevin Riley Merry Maids of Southampton
“The visit from marketing really inspired me to push my business further and actually helped me achieve results beyond my expectations.”
“I am able to be in control of my own business and I still have the support of head office and the rest of the network to rely on.”
Ian Kemp Merry Maids of The Chilterns
Nicky Morris Merry Maids of Fylde, Blackpool and Preston
T: 0116 275 9005 E: franchisesales@servicemaster.co.uk W: www.merrymaidsfranchise.co.uk/elite EliteFranchise0216.indd 1
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/MerryMaidsUK
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28/01/2016 18:01
Mobalpa
Not content with a distribution network spanning half the world, kitchen and bathroom brand Mobalpa is now on a serious franchising drive in the UK
Peak production BY JOSH RUSSELL
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hilst convenience is great, it’s always nice to have furniture and fittings with some heritage. And Mobalpa, the kitchen and bathroom design franchise, has that in spades. The Fournier Group – the umbrella organisation that owns Mobalpa UK – was originally created by Eugène Fournier when he founded a cabinet-making workshop in the French Alpine town of Annecy. “Originally they were doing everything in wood, so they were more craftsmen,” says Cyril Raberin, franchise director and general manager at Mobalpa UK. Fournier’s sons Marcel and Paul Fournier eventually inherited the company and, in 1948, they created the brand Mobalpa – a contraction of the French words for ‘furniture of the Alps’ – along with its bespoke wardrobe factory. And Mobalpa certainly created a splash in the French market. “In France – and I think in Europe – we were really the first to create fitted kitchens,” Raberin says. To start with, Mobalpa focused largely on distribution and sold through third party stockists but before long it had built up a head of steam and began to grow its own portfolio of corporate stores. “With the success of the sales side of things, we created our own
exclusive network, which now stands at more than 280 stores,” he adds. In terms of the international market, Mobalpa has typically focused on distribution, covering an impressive territory that ranges from Kazakhstan, China and Russia to the United States and Canada. “Altogether, we cover 20 countries outside the UK and we’ve got maybe 100 contract accounts,” says Raberin. Originally, Mobalpa entered the UK market on this same basis and for the best part of three decades the majority of its contracts were held with independent retailers. But when the financial crash hit, it realised that being so reliant on independent outlets didn’t offer sufficient security. “That’s not really a long-term strategy,” Raberin says. Mobalpa thought that establishing its own network overseas would give it a firmer footing – and franchising seemed to offer the best route to achieve this. However, it also realised that spreading its resources too thin across multiple markets would only undermine the quality of its offering. “We really needed to invest everything that we could not only to better deliver goods to our partners but also to deliver the required knowhow and experience,”
February 2016 | elitefranchise
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Reach out for renewables
Other benefits include:
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.
• Exclusive products
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 greener alternatives for practical renewable energy solutions for the future. The Green Square franchise offers the 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.
• Fully certified training and qualifications in renewable technology • Quality Management system for microgeneration technologies in place (MCS) • Supported by legislation • Reasonable franchise fee • Bespoke software allowing full system design and calculations for complex installations • Full marketing support: website, launch event and marketing campaigns • Turn-key business concept
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
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Mobalpa
Raberin says. Outside of France, its top two markets had proven to be the UK and Flemish Belgium, making these the obvious regions to focus on. “We reduced the number of targets so that we could invest heavily in these markets,” he says. Whilst Mobalpa had been operating in the UK for some time as a distributor, some of the peculiarities of the market meant it needed to tweak its model before it was ready to franchise. “The UK is far ahead in terms of digital marketing compared to other countries so we had to change our retail methods, promotions, communications and websites,” says Raberin. Another key difference is that, particularly in the south of UK, there tends to be more of a focus on premium products, requiring Mobalpa to place a higher focus on quality in its showrooms. “We also had to increase the quality of the way we display the kitchens and design and dress our shops,” he says. In light of this, the franchise decided to run a pilot, opening its first store in Warrington in mid-2012 to help iron out any potential creases. “It helped us adapt what needs to be adapted in terms of concepts,” Raberin says. “And it proved it was working so
In France, we were really the first one to create fitted kitchens
we then started to search for more franchisees.” Before long the enquiries were flowing in thick and fast; 2014 saw Mobalpa open showrooms in Richmond and Pinner, whilst in 2015 new stores opened in Chelsea, Islington and Wimbledon. So what is it about Mobalpa that makes it so attractive to franchisees and customers alike? First of all, nearly seven decades after it was first founded, Mobalpa still manufactures all of its products itself. “All the manufacturing is based here in the French Alps,” says Raberin. “We’ve got four different factories in a radius of around ten miles.” Each factory produces something different, so while one takes care of worktops, the others produce bathroom, living and kitchen unit ranges. And this is one of the things that Raberin believes gives Mobalpa the edge. “Purely down to the fact that we’re alone in our neck of the woods, we tend to manufacture everything, including the lacquer,” he says. “That gives us an advantage in terms of quality and lead time.” Another thing that makes Mobalpa so attractive is the fact that it involves customers far more in the creative process. “A lot of professionals would take the brief, work on their own and then present to the customer,” says
February 2016 | elitefranchise
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Join the UK’s Fastest Growing Swim School for Babies, Toddlers and Children Are you... - looking for a flexible business opportunity that can fit in with your lifestyle? - ambitious and enthusiastic with a drive to succeed? - enjoying working with babies and children (and people in general)? A Mini Swimming franchise might be just right for you. We are a swim school running engaging and sociable classes for babies (from 6 weeks old), toddlers and young children (up to 10 years old) and are looking to expand our franchise network UK-wide. Our flexible franchise model offers a low investment level and has been backed by several high street lenders. As a Mini Swimming franchisee you benefit from: - Joining our established and trusted brand. - Tapping into our proven business model. - Receiving hands-on support from us at all times. - Being your own boss and loving it. - A great work-life balance. To find out more and to receive a full prospectus, please contact us - we would love to hear from you!
01376 340 310 franchise@miniswimming.co.uk miniswimming.co.uk/franchise
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Mobalpa
We tend to manufacture everything, including the lacquer; that puts us ahead in terms of quality and lead time Raberin. “We involve the customer 100% in the actual design of the kitchen.” After establishing the customer’s specific requirements, the sales designer will do some sketches before putting them into Mobalpa’s 3D CAD software. Once there has been an on-site measurement to make sure there are no issues, the designs are sent to Mobalpa’s factories for production and the franchisee will organise the fitting. As one can probably appreciate, managing a process like this means that a franchise needs a special combination of aptitudes. “They need to be happy to be there, be able to sell, manage their team and develop their skills, as
well as limit staff turnover,” Raberin says. Effective management is one of the key indicators of success that Mobalpa has identified; when its year-end results are released, those franchisees with the strongest management skills are invariably those who are achieving the best results. “When they’re underperforming, it’s always due to lack of management,” he adds. Fortunately, Mobalpa provides plenty of training to help get its franchisees up to speed. Franchisees begin with a 15-day period of e-learning guided by Mobalpa’s area sales manager, followed by five and a half weeks in a training school in France split between the sales, design and CAD processes. And once a franchisee is in store, the training is followed up by visits from sales coaches, the Mobalpa UK technical director, a business developer and Raberin himself, who train them up on the technicalities of the job, solve potential issues and put in place key processes and reporting systems. “There is a massive investment in terms of human resources to give them all the chance to start quickly,” says Raberin. And this looks set to pay off for Mobalpa UK. “We’re on a trend of opening three shops a year,” he adds. “From next year, we’ll set ourselves a target of four to five.” In terms of locations, the franchise is focusing on Greater London, as well as the corridor of cities between Chester and Hull that includes Liverpool, Manchester, Leeds and York. But Raberin is keen to stress that they aren’t focusing on targets at the expense of creating an effective network. “We don’t want to open just for sake of it,” he concludes. “We want to open shops with the right people, help them set up as quick as possible and make them succeed.” February 2016 | elitefranchise
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National living wage
new Wage thinking Many businesses will be fearing the introduction of the national living wage but there’s plenty that franchises can do to lessen its impact BY alex littner, managing director of boost capital
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ne of the merits of running a franchise is that many carry an established brand name. But while franchisors offer reputation, experience and support to those who invest in them, franchises are still operated by self-employed people who share many of the worries of the typical SME. Among the headaches looming for franchisees is the introduction of the national living wage (NLW) this April. With sectors well-populated by franchise systems set to be hard hit, what is the likely impact of the new rules? And, with a few months left before the legislative change, what can franchisees do to limit their exposure to the pay hike?
A big problem for small companies – and franchises When George Osborne announced last summer that workers over the age of 25 would
be paid a living wage of £7.20 an hour from April 2016 – 50 pence more than the current national minimum wage – employers were up in arms. The new pay structure will go further – increasing to £9 an hour by 2020 – and critics have pointed out that industries with smaller employers, high staff costs and relatively lowpaid workers will suffer. Hospitality, retail and support services, such as residential care homes and cleaning firms, were singled out by the Resolution Foundation as areas set for the biggest wage increases. All of these are sectors are populated by a large number of franchises. And when it comes to franchising, there’s one other sector that will probably feel the real impact of the national living wage. According to the latest data from the British Franchise Association, food and drink accounts for six out of ten of the UK’s biggest franchises by unit. February 2016 | elitefranchise
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SUPPORTING BRITISH BUSINESS
WE COMMIT TO GROW OUR LENDING TO BRITISH BUSINESS
We help brilliant British businesses grow. In the last four years we have helped over 500,000 businesses start up, and we back over 80% of the FTSE 100. We approve 8 out of 10 loans and are lending to all types of businesses across Britain. To find out how we can support your business, please contact Richard Holden, Head of Franchising on 07802 324018 or at franchising@lloydsbanking.com Find out more at lloydsbank.com/business
Any property given as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. All lending is subject to a satisfactory credit assessment.
Over 500,000 start-up figure relates to Lloyds Banking Group, correct as at December 2014. Lloyds Bank FTSE 100 figure correct as at January 2015. 8 out of 10 relates to period April 2012 – November 2014. Calls may be monitored or recorded. Please note that any data sent via e-mail is not secure and could be read by others. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 119278. We subscribe to The Lending Code; copies of the Code can be obtained from www.lendingstandardsboard.org.uk. The Lloyds Banking Group includes companies using brands including Lloyds Bank, Halifax and Bank of Scotland and their associated companies. More information on the Lloyds Banking Group can be found at lloydsbankinggroup.com
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National living wage
The living wage is not necessarily all bad news for employers Subway tops the list, boasting more than 2,000 stores across Britain. Such industries employ a lot of staff, many of them at the lower end of the pay scale. According to the Resolution Foundation, the hotel and restaurant industry’s total pay bill will grow by 3.4% by 2020 as a result of the NLW rules – the largest of any sector – while retail’s wage costs will increase by 2% over the same period. What will happen? There has been much talk about how businesses may cope with the higher salary costs on the horizon. Tim Martin, head of pub giant JD Wetherspoon, predicts pubs in poorer areas will be forced to close due to the new pay rule, while the UK Care Home Association has written an open letter to the government asking for more public funding to counter the huge expense of the changes to their industry or risk seeing institutions shut. When the Confederation of British Industry asked business owners how they would address the pay regime in practical terms, more than a third said they planned to pass on higher employment costs by bumping up prices, one in five said they would change employee reward packages to compensate and about 28% said they expected to employ fewer people. The last of these approaches is difficult to reconcile for business sectors that require human beings to function, whether it’s carers looking after elderly residents, bar staff pouring drinks for thirsty punters or shop assistants working the tills at busy times in the retail calendar. Many franchisees will wonder if their staff costs are sustainable but will also question whether they can
maintain service standards if they cut numbers. Some may opt to hire more workers under the age of 24 who are not affected by the NLW pay rate. However, another alternative is to reduce unnecessary running costs and employ better cashflow practices in an attempt to make up some of the expected shortfall. Balancing the books, chasing cash and best practice The best place to start is to examine your current overheads to see if there are any areas of obvious waste, be it raw materials or unsold stock. Many smaller companies also haemorrhage cash by failing to seek out the best utility or insurance deal, so shop around for suppliers. Likewise,
February 2016 | elitefranchise
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rts
Expe The Catering Business
Are you ambitious and excited by the world of food? Do you want the freedom of working for yourself but with support and guidance to help you along? Talk to the Catering Business Experts at Jasper’s. We have built the most forward thinking food franchise model out there. We are not part of the saturated fast food world that requires half a million pounds worth of investment to leave you static in expensive retail outlets with a limited offering. Jasper’s provides buffet style catering to business customers, offering more choice than any other caterer. This means high value, repeat orders from leading companies in the UK such as Lloyds TSB, the NHS, as well as charities and independent businesses. No working unsociable hours, no late night drunks, no expensive retail rates or reliance on passing trade.
g opportunity?
terin What is the Jasper’s Ca
Multiple revenue streams in a resilient market place: buffet catering, contemporary food to share, fruit, snacks and sundry delivery, and more In year one, Jasper’s guarantees to book you £1,000,000 worth of prospective business appointments You won’t pay any Management Service Fees for the first nine months You will get £40,000 worth of free stock (at sale value) in your first four months of trading Your own exclusively mapped business territory of around 13,000 prospective customers You professional kitchen and office is based in a commercial business unit - no expensive high street rents and rates Our unique Business Management System is your tool to managing your business Nobody in our marketplace can compete with our range of products and services The market potential is vast, with sandwiches alone in this industry worth £2.8billion a year
The financials In total you can expect the following costs to open your Jasper’s franchise: - £29,997 + VAT for the franchise fee which grants you the right to trade as a franchisee under the identity of Jasper’s Catering Services Ltd for the duration of the franchise agreement. - £54,500 - £60,000 + VAT for the design and fit out of your commercial kitchen - £25,000 working capital (this amount varies depending on your own needs) In addition, as with all franchises, you will pay a Monthly Service Fee, but not until month ten.
No other food franchise can offer you what Jasper’s can: everything you need to build your own catering empire. That’s why we say if you are looking for THE food franchise then Jasper’s is it! email: beyourownboss@jaspersonline.co.uk www.jaspers-franchise.co.uk JASP002 Jaspers FP Feb16.indd 1
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National living wage
Some businesses may need to accept that their profits will be lower in the medium term
ensuring that staff have environmentally sound habits to reduce energy use can make a big difference to annual bills. This could simply be switching off lights and equipment not in use. If you’ve already trimmed company expenses to the bone, consider your cashflow management. How much are you in control of the firm’s finances? A successful business owner will not only know current and recent profit and loss figures – plus their break-even point – but they will also conduct regular cashflow projections to spot potential problems looming. Software exists to do this number crunching and can also help with chasing late payments – another bane of smaller companies’ lives. Good payment practices, such as issuing prompt invoices, tracking the progress of unpaid bills and persistently following up on money owed can be the difference between your company bank account being in rude health or in the red. Recent digital developments might help transform performance and cut costs.
Automation of payment, for example, has been successfully adopted by larger retailers and smaller operators could take heed. Restaurateurs might also improve service by embracing digital ordering and ways of paying, developments that customers increasingly crave, according to research from Boost Capital. Silver linings… in time It is worth emphasising the living wage is not necessarily all bad news for employers. One expected side effect of higher pay is better staff retention, while others predict a likely increase in motivation and productivity. This means that franchisees could feel the pinch on their wage bill while the NLW is being phased in but will then see their books rebalanced as a result of increased productivity. Also, some of the sectors set to be most affected are those that struggle to recruit decent candidates due to poor pay rates. It’s possible that improved salaries could attract better-skilled workers, which itself could improve the performance of businesses over time. Regardless of how franchisees choose to address the NLW, they must not forget that April’s pay changes are compulsory, with those who flout legislation liable for fines or even expulsion as a company director. Pay bills look likely to increase in the near future and some businesses may need to accept that their profits will be lower in the medium term. This could mean taking on temporary debt to fund the rise in wages while the company adjusts to the new payment system. It certainly requires having a plan of action as soon as possible, meaning it’s time to start scrutinising costs, making healthy cashflow a priority and facing up to uncomfortable financial truths ahead of time. Most franchises want a happy, properly remunerated workforce, so do the right thing before the law forces your hand. February 2016 | elitefranchise
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ADVERTISING FEATURE
TaxAssist Accountants TaxAssist Accountants is an innovative and award winning franchise servicing small businesses and the self-employed
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ranchisees operate from welcoming and modern shopfront premises offering year-end accounts, tax returns, bookkeeping, VAT returns, payroll and cash flow projections. After consistently winning awards in both the franchising and accountancy sectors, TaxAssist has grown to become the 24th largest network of accountants in the UK servicing over 58,000 clients from over 245 shops and offices. Central London based franchisee Vince Dalaimo previously worked for the Royal Bank of Canada, Deutsche Bank and JP Morgan. He joined TaxAssist in 2003, as he could see the value in the TaxAssist brand name, the high visibility of shop-front premises and the support. “I was a very small cog in a very big wheel and thought there must be more to life,” explained Vince.
“When I first investigated franchising, I was surprised to find accountancy as an option. TaxAssist has given me the confidence to set up my own practice and provided me with the support and training to grow my business. The best parts are the support given by the franchisor. Also, there is an amazing relationship between franchisees, where you get to know your neighbouring franchisees and quite often meet, share experiences or provide help and support as and when required. Although I run a small business, I definitely feel I’m part of a larger group and have the resources of a national network.” “The franchise allows me to grow my business while the franchisor provides me with the tools to sign up new clients. For me to replicate the same marketing effort would both be time consuming and cost a lot of money. I have found that clients have really taken to the concept of a ‘drop-in’ shop, where they can get all their tax returns, payroll and bookkeeping needs taken care of as they walk into work or at breaks and lunchtimes. It means they can concentrate on running their business and increasing their own income and profitability. I would definitely recommend the franchise.” Each franchisee operates in an exclusive territory and there are still many territories and resale opportunities available across the United Kingdom. Please visit the TaxAssist website www. taxassistfranchise.co.uk or call 0800 0188297 for further information. February 2016 | elitefranchise
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Brand names
What’s in a name? Deciding what to call your franchise is the first step to creating a strong brand identity. However, with plentiful legal obstacles to consider, settling on a company name is far from a walk in the park BY JON CARD
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Brand names
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or businesses looking to expand through franchising, their choice of name is crucial. It is the core part of the brand, trademark and intellectual property that will then be licensed to others. It’s for this reason that business owners looking to establish a new business or launch a new enterprise should not rush into choosing a name for their company.
don’t know what CSI stands for, so it’s a better name.” Once assured she had the right name for the business, Williams began investing in her brand, creating a logo and building a web presence around it. She worked with a graphic designer who found the right font and designed the company’s distinctive fingerprint logo. “Fingerprints are one of the best parts of evidence at a crime scene, so it works really well,” she says.
Detective work When choosing a name for a business, many entrepreneurs are influenced by popular Swimming success culture. Business owners searching for a Jonathon Madden is the managing director name might well take inspiration from TV of Seriously Fun Swimming Schools, which shows, movies or music. However, this might was originally founded by his mother Janet not always be the best option for many. in the 1990s. However, as Madden and Jenny Williams founded The Detective his brother Phillip sought to expand the Project in 2010 after she created a crimebusiness through franchising, a name change themed birthday party for her son Isaac. was deemed necessary. Having previously worked as “We were originally called a police officer, Williams drew J.M. Swimming Schools and on her experience in the force our tagline was ‘Seriously to teach children all about FUN Swimming Lessons’,” solving crimes using games says Madden. “When the The key to and fun. She originally called decision was made to expand branding is to her business CSI Kids before through franchising, we felt combine the realising there was also an it would be a good idea to adult market for her detectivechoose a name we could story with the themed events. She therefore establish as a brand.” chose the name Project CSI and unique selling However, like many business point behind applied for it to be registered owners, they encountered a as a trademark at the IP Office. few legal issues when it came the concept However, difficulties arose when to registering the name as a or product lawyers representing American trademark. “Before we settled Damien Zannetou, TV show CSI threatened her on Seriously Fun, we had Aenea with court action. decided to go with the name After much deliberating, Swimstars,” says Madden. Williams instead chose the name The “However, when we tried to register the Detective Project, successfully trademarked name, it was challenged by another company, it and is now licensing it to others as a so we had to go back to the drawing board. franchise opportunity. “We decided not We eventually agreed that Seriously Fun to fight the case,” she says. “I could have Swimming Schools was both unique and said remortgaged my house to fight it in court it all.” and still lost. And I’m glad we didn’t: Madden says his choice of name has children know what a detective is but they had a big impact on the business because
February 2016 | elitefranchise
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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
Commercial Cleaning with a Difference JANP001
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Brand names
Literal or abstract?
it contains an implicit promise to customers. “Our name certainly holds us to account,” he says. “We only have to look down at our t-shirts when we’re by the poolside to remember why we’re there and what we’re promising our customers.” Beautiful brand When a franchise expands internationally, a business owner needs to think about where their company’s name may be displayed in the long term. Damien Zannetou, founder of skincare and beauty franchise Aenea, has ambitions to take his brand across Europe. He recently opted to rebrand as he found that a company in Spain was using his business’s original name, Anesis. “I am of Greek Cypriot origin and ‘nea’ is the Greek for new, which is the inspiration behind our skincare range Aenea Skin,” says Zannetou. “My original brand for services was Anesis, which is the Greek for ‘relax’. The new registered trademark is a combination of Anesis and Nea.” Zannetou says a strong brand is essential in the beauty industry as consumers are drawn by a company’s
image and story. He also says the aspirations and views of customers need to be central when searching for the right name. In the beauty industry, professional consultants and distributors like a story and want to know who the people are behind the brand. The brand name is normally key to the story, building a picture of innovation and a unique approach that sets it apart from its competitors. “The key to branding is to combine the story with the unique selling point behind the concept or product,” says Zannetou. “If you do that, you’re onto a winner. But remember your target market and whether the word fits that market appropriately”. Once he had found his brand name, Zannetou immediately embarked on design and logos, working with a designer to get the right look. “I wanted to put my word into a vision and ensure that vision was in line with my target demographic audience,” he says. “I therefore ensured that the word was designed in a way that would not only target a female market and had a high-fashion focus but also had certain symbols
In the online age, all sorts of unusual company names have emerged: Google, Bebo, Zopa to name a few. But are they a good idea? Alex Ririe, managing partner at Coley Porter Bell, the branding and design agency, says businesses need to be realistic about their marketing budgets before choosing abstract names. “A new name is an empty vessel and even the best names can fall short if the brand and its marketing activity don’t help to fill the name with meaning,” he says. “Generally, if you are planning on lots of marketing support and communications that can explain your products or service and what you’re about, then your name can be more abstract. If, however, you have minimal budget, it may be better to be more literal.”
to have the Greek connotation. That is why it made use of letters of the Greek alphabet.” Finally, Zannetou sought legal protection for his brand, not only in the UK but also overseas. “Once the word and logo were designed I approached a trademark lawyer and ran a search before filing an application for Europe,” he says. “It covered all classes that would be beneficial to the future growth and expansion of my business.” Suffice to say, he has some timely advice for anybody looking to protect their brand. “I had one previous trademark dispute under Anesis so I would recommend anyone, when registering a mark, to run a search prior to any application then have a trademark attorney handle the application. It will save you time and money in the long run.” February 2016 | elitefranchise
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Y E A R S
Serving you for 20+ years! Established in 1996
IN FRANCHISING
“I love the hours of the job, the earning potential, not having to collect money or chase debts, and the understanding and friendly staff in my regional office. I also have a great relationship with my clients, and have known some of the staff in the lettings agencies with whom I work, for my entire time as a franchisee.” Dennis Healy Franchisee for 20 years (W London)
and tingham gas-elec ger, Not d a n n e a m M m s ty o c uali of Letting py to re fessionalism, q p a h re ro “We a ability, p their reli petitive endorse and com ip h s n a workm pricing.”
What you can expect from us... If you are gas and/or electrically qualified
Sales and Marketing is carried out by the regional management franchisee and work generated for you Our Bureau facility collects and allocates all payments from clients Credit limits are set and a credit control process is implemented for all clients A bespoke IT system caters for all aspects of the business Payments are made to all franchisees twice a month upon receipts and VAT calculated for you All franchisees are audited in the field by our technical gas and electrical experts Ongoing franchise support for all our franchisees from an experienced team
www .gas-e
lec.co.uk /franchise info@g as-elec.co.uk 0800 015 203 0 GASE001
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ADVERTISING FEATURE
Still going strong
gas-elec’s first franchisee Dennis Healy is still going strong after 20 years
O
ne evening back in 1996, Dennis Healy was nursing a pint in his local and got chatting to a former director of gaselec, the nation’s premier gas and electrical inspection company. Dennis had recently been made redundant from Southern Electricity where he had worked for 20 years. The director said, in that case, maybe Dennis should meet gas-elec’s managing director John Davidson. There might be an opening for him at the company. The meeting took place and John was impressed: Dennis was definitely gas-elec material. But, in order to join gas-elec the electrical engineer should add another string to his bow and qualify as a gas engineer. Having both qualifications would make him perfect for the company, whose founding concept was a testing and inspection service for both gas and electricity, carried out by one engineer in a single visit, giving one report – saving clients landlords, tenants and homeowners time, inconvenience and money. Back then, the idea of a combined safety inspection was nothing short of revolutionary – so revolutionary, in fact, after its first year in business, the company still didn’t have a single competitor. At which point, John had a brainwave: he decided to franchise his thriving business. As he puts it: “getting people to directly invest in their own future, is a great way to grow a business further still. “We split the UK into different regions to make room for 20 management franchisees to do all the sales and marketing for that region. Then each area would have a tier of safety inspection franchisees, each working in their prime area of
responsibility, defined by postcode area.” he recalls. “We then invested heavily in putting it all together. We were a couple of years out of recession and many people told me I was crazy – who, they asked, would invest in the venture when the country was on its knees?” Dennis liked working for gas-elec and through his work had proved the franchise worked, which actually helped gas-elec’s application for bfa membership. Being self-employed without having to find his work was, highly appealing to Dennis. “The company finds all the work. The regional franchisees book and coordinate work, as well as doing the sales and marketing for their safety inspection franchisees. The first job is usually at 8am, I’m generally home at 4.30pm and I enter the details of the day’s work on my computer and submit it to the company. There’s no selling and no invoice chasing either: one of the biggest headaches for those who are selfemployed is administration and bookkeeping. Which is why gas-elec devised its bespoke bureau facility which, on the franchisees’ behalf, collects payment, performs credit control and sets credits limits for their
clients. It then pays franchisees twice a month upon receipts. “We came up with the idea 11 years ago after we realised that the amount of time regional offices were spending on admin and invoicing, was leading to a direct fall in sales,” explains John. “On average, it saves our franchisees around 17 hours a month.” This has enabled the 53-year-old to comfortably look after his very large family – seven now grown-up children and a wife. These days, almost all of Dennis’s work is in and around Berkshire, the SL postcodes are his prime area of responsibility. Sometimes he gets several days’ work at the same property, which cuts down on driving. A good proportion engineers earn more than £60,000 a year and gaselec has provided services to over 1,000,000 customers. The majority of his workload comprises gas and electrical inspections, boiler repairs and electrical remedial work for letting agents and private landlords in the rapidly growing lettings industry. For the first time in modern history, more people privately rent their home. And by 2026 half of all householders in the UK will be living in private rented accommodation: gas-elec’s core market. The company’s workload is also determined by changing legislation. Dennis, for example, recently learnt how to conduct risk assessments for Legionnaires’ disease, which landlords are now legally obliged to carry out in their tenants’ homes. He has also been trained to fit and service smoke and carbon monoxide alarms. The company can also offer competitive commercial tariffs for businesses, issue energy performance certificates and install energy-saving systems including LED lighting. Dennis’s fourth franchise agreement expires in three years’ time. If he is “blessed with continuing good health”, gas-elec’s first franchisee has every intention of taking out a fifth. “It all means a lot and if I had my time over, I would certainly do it all again.” February 2016 | elitefranchise
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Flexible working
Perfect
fit
Flexible working arrangements can help franchisees shape their businesses to best suit their lives BY Josh Russell
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one are the days when people need to strap themselves to an office desk for eight hours to run a business: entrepreneurs can now operate a business whenever and wherever they like. But whilst flexible working is still considered a fad by many companies, the world of franchising has truly taken the trend to heart. So how are franchises making the most of flexible working patterns? And why are they so far ahead of the curve? Piece of cake Flexibility is baked into the model of Oast House Farm Snacks, the snack box franchise that raises funds for local hospices. Whilst the franchise’s full-time offering involves the merchandising of 300 snack boxes, it also offers a much more granular opportunity, enabling franchisees to scale the level of investment and workload to better suit their needs. “They might not want something full-time,” says Matthew Simmonds, franchise director at Oast House Farm Snacks. “They might want to do it between the hours of 10am and 2pm, in which case they would have a 150-box franchise.” In Simmonds’ eyes, there are certain sectors better suited to flexible working than others. “There are certain franchises that offer a lifestyle solution that allows flexibility for people with time restraints,” he says. Conversely there are other verticals in which flexibility isn’t really an option. In areas like retail or food service, not only does the business need to be open the same core hours each day but even if the person investing intends to be more hands-off in terms of day-to-day operations, they will still
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Flexible working
be taking on a lot of responsibility. “You might be able to spend part of your time in the business but you’ve got a full-time headache in terms of running it,” Simmonds continues. Despite this, Simmonds feels that the franchising sector as a whole is far ahead of the curve when it comes to embracing flexible working. “The general business market outside of franchising still doesn’t really recognise it,” he says. Part of the reason for this is that franchisors by necessity need to actively court the investment of franchisees and this entails offering ways of working that suit their requirements. “We have to listen to what’s going on,” says Simmonds. “We’re monitoring trends and looking at the reasons why people are looking to run their own business.”
Get up and go Raring2go!, the print and digital magazine covering local kids activities, also offers flexible working arrangements. However, Freddie St. George, managing director of Mojo Publishing, the publisher that owns Raring2go!, insists this doesn’t make it a pushover. “One of the central tenets of our business is that we’re not part-time but we are flexible,” he says. The fact that franchisees are working toward delivering four quarterly magazines a year and can structure their own working arrangements makes it a very suitable option for parents looking to fit their work around the school day or term time. “They can effectively enjoy the full 13 weeks of the school holidays every year by working our system
and model flexibly,” St. George says. “It genuinely does provide for a very flexible working relationship.” When putting flexible arrangements at the heart of a franchise offering, it’s important to remember that franchisees are forgoing a traditional working pattern and may need additional support. “They’re working in isolation,” St. George says. “Suddenly you’re taken from a traditional environment and you’re working from your back bedroom at home.” For this reason, Raring2go! holds regular regional meetings and buddies franchisees up with each other to ensure they feel connected to the wider network. “When there’s a question that they want to ask a peer, they can ask one of the network’s franchisees,” says St. George.
When you’re working with children, being available outside of the nine-to-five benefits everyone Carly Poyser, Little Scrummers Rugby
But beyond putting in place the right support network, St. George believes one of the most important things for any franchise embracing flexible working is judicious use of technology. Raring2go! has invested heavily in both a cloud CRM and magazine management tool, which help franchisees work whenever and wherever they need. “As long as they’ve got a wifi or a 3G signal, they can be sitting in a Costa coffee and catching up with their accounts, doing their invoicing, checking their flatplan and communicating with their clients,” says St. George. February 2016 | elitefranchise
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Flexible working
The general business market outside of franchising still doesn’t really recognise flexible working Matthew Simmonds, Oast House Farm Snacks
A whole new ball game It’s safe to say that Carly Poyser, owner and director of children’s rugby franchise Little Scrummers Rugby, is an advocate of the benefits of flexible working. “Even if you can’t do a full-time, nine-to-five job, you can still build your own business and be successful,” she says. Poyser herself is evidence of this: having set up her business when her sons were just three and four-years-old, she has had to embrace flexible working patterns. “As a franchisor I’m quite flexible when I work,” she says. “Sometimes it is 7am, other times it is 11pm.” As many of Little Scrummers’ franchisees have families of their own, it made perfect sense to build flexible arrangements into its model. “Whilst they’ve got to work at the weekend because that’s what the classes dictate, the rest of the admin behind that can be handled at any time,” says Poyser. For example, one Little Scrummers franchisee doesn’t work during the hours her baby is awake but then uses the evenings to run her social media and catch up on her admin. Being their own boss effectively means that it’s easier for franchisees to tailor their working patterns to suit their personal circumstances. “You can fit it in much more with your life,” says Poyser. 62
And whilst businesses with a B2B focus might find that they need to be most available during traditional working hours, franchises that work with families actually benefit vastly from working slightly more negotiable hours. “As a parent, not everything works nine-to-five, Monday to Friday,” says Poyser. One example she gives is a parent getting in contact at 7am the morning of a class because they’ve realised they’ve forgotten to pay; a franchisee working flexibly can more easily deal with these issues as and when they arise. “When you’re working with children, being available outside of the nine-to-five benefits everyone,” she says. All in all, it’s clear that flexible working is something that many franchises can’t afford to ignore. “That’s modern life,” Poyser concludes. “People don’t all work nine-to-five and if you can capitalise on that then you’re going to have far more success.”
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Telcoinabox set up, supply and support telecoms companies We give you the systems and tools to change your lifestyle. Create a successful business that fits in and around your family or other commitments. If you’re motivated and ambitious, a Telcoinabox business will enable you to have the work-life balance you choose — or dream of. Use your entrepreneurial skills to be your own boss, build your own brand and start up your own business. You’ll have the flexibility to work from home, or anywhere with a computer and phone, and to work when and how you want.
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No telecoms experience required. We make selling telecoms easy through robust training and back end office support.
2
Sell once and receive monthly recurring revenue for the remainder of the contract - just like the large phone networks enjoy themselves.
3
Earning potential of £75,000+ per year within 2 years - based on adding only 6 small business customers per month.
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No stock, no territories or retail store required. Sell under your own brand throughout the UK.
Proven business model – our model supports over 400 Partners worldwide, with over 75 Active Partners in the UK.
“Enabling passionate people. Igniting the entrepreneurial spirit. Enjoying the ride.”
0203 326 5550 | info@telcoinabox.co.uk www.telcoinabox.co.uk Telcoinabox FP Feb16.indd 1
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Investing in tech
Time to invest in tech? Whether it’s maintaining customer expectations, coping with growth or gaining data to understand your business, technology is fast becoming an essential investment for franchises BY jon card
F
ranchising is one of the most effective models for growing a business. But for all companies, growth presents challenges around administration and maintaining standards. Increasingly, the answer to these challenges is to use technology but this is often easier said than done. Digital technology is indeed powerful and effective but it can also be expensive and its rollout can be time-consuming. Furthermore, the question of what technology to invest in is one that not all franchisors feel well equipped to answer. Nevertheless, as demonstrated by the following franchises, an investment in technology can deliver significant returns to any business.
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Finding an expert Mark Llewellyn is the managing director of Revive UK, which provides car repair services for minor issues such as cracked windscreens and damaged tyres. The business has grown rapidly in the past five years, more than doubling its number of franchisees to 70 and taking on a number of major contracts with car dealerships and fleet management companies. In order to cope with this growth, the business has invested close to £200,000 in IT and digital technology over the past four years. Llewellyn says it has been a challenge, especially as IT is not his strongest suit. “I’m not an IT person,” he says. “One of the problems with investing in this area is that you have to start off by believing someone who says they know what needs to be done.” Revive provides bookkeeping services for its franchisees and Llewellyn says about 50% of sales calls come through head office. Because of this, there was a growing amount of paperwork and phone calls. Just over four years ago, Llewellyn and his team realised it needed to upgrade its administration, which was still paper-based, involved substantial duplication and was increasingly expensive. “The amount of paperwork and duplication was becoming significant and, as we grew, it was becoming unwieldy,” he says. “So we invested in a long-term IT plan.” The business initially dealt with some IT consultants but Llewellyn felt they were more interested in selling them products than creating a system that really worked for his business. Eventually, he opted for a more novel approach: a knowledge transfer protocol (KTP). This involved an agreement with Coventry University, where graduates in computer science, supported by their lecturers, would work for Revive. “The university is getting graduates placed in industry and, in return, we’ve got a computer science graduate,” Llewellyn explains. Through the KTP, Revive was able to research the IT market, install a new system and create an IT department
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Own the assets for life Platinum Property Partners enables both novice and seasoned property investors to build their own sustainable and profitable buy-to-let business, where they own the assets forever and earn an income for life.
BE MORE. DO MORE. HAVE MORE. GIVE MORE.
01202 652101
www.platinumpropertypartners.co.uk/elt info@platinumpropertypartners.co.uk EliteFranchise1015.indd 1 PPP.indd 1
PLAT001 06/10/2015 01/02/2016 11:56 18:26
Investing in tech
with three staff, two of whom are Coventry University graduates. This has led to the creation of an integrated CRM, booking and accounts system. Tablets have also been issued to staff on the road who use an app designed by the company’s in-house team. “Working with the university has been fantastic; I think KTPs are a brilliant idea,” says Llewellyn. “I’ve tried working with third-party IT companies but they are just interested in selling you products from their suppliers. However, a university is there to help you and there was a real difference in approach.” While Llewellyn says that the rollout has been largely successful, he warns franchisors that IT system overhauls are long-term projects. “When you’re dealing with IT, double the amount of time you think it will take,” he says. Data-powered business One of the benefits of investing in digital technology is that it can unlock data and information that was previously unknown. Christopher Aston, director at Expense Reduction Analysts (ERA), the procurement franchise, says the £1m investment his business made in its “state of the art” customer relationship management (CRM) system has meant better information and a large uplift in sales. “We made a significant investment in our IT system, replacing our old Lotus Notes system with a Microsoft Dynamic CRM.” he says. “Having a good CRM means you can better plan and manage your sales campaigns. Since we started using this system, we’ve had an 80% uplift in direct marketing appointments.” Unlike most franchises, ERA doesn’t sell geographic territories but instead enables its franchisees to select up to 150 clients that become its targets. But in order to make this system work effectively, good information, data and a suite of online tools are required. Thanks to its new CRM, this is something that ERA has access to on a daily basis. “It’s a dynamic system, so it’s online and you can log into it as long as you have an internet connection,” he says. “We also use 66
a Microsoft bulletin board, which enables all of our franchisees to keep in touch and post questions.” Data can be a powerful and persuasive tool and, combined with the right software, can generate powerful visualisations that can be used internally and externally. As Aston says, “We can create some lovely infographics and this helps us to understand our business. It also helps us to make sales.” Aston believes that oversight of the business as a whole has improved as a result of its investment in technology. “The new system enables us to do business reviews with our network and have data showing exactly how much revenue each account is bringing in,” he concludes. “It makes a massive impact on management reporting but also on our marketing.”
greater flexibility of booking. “One of our unique selling points is that customers are allowed to rearrange cancelled classes,” she says. “However, this meant franchises would spend a lot of time on the phone and doing admin. With the new system, customers will be able to book, pay and rearrange lessons online. That’s a much better customer experience.” Before implementing the new system, Puddle Ducks researched the market, spoke to 50 or 60 IT specialists and examined many offthe-shelf systems. However, it decided that it needed a bespoke system and hired a company to redesign its websites, make them mobile-friendly and create the booking system. Puddle Ducks is now rolling out the system and hopes this will be complete by the summer. It has also appointed a
We could see that the growth was coming but the system we were using wasn’t sustainable Jo Stone, Puddle Ducks
Consumer friendly Technology has become central to the lives of consumers and many expect fast, flexible and digitally powered services as the norm. For many, this means fast and effective online services that can be accessed by mobile devices. It’s something that Jo Stone, co-founder of swimminglesson franchise Puddle Ducks realised, leading her to embark upon a major investment in her websites and online-booking systems. “We could see that the growth was coming but the system we were using wasn’t sustainable,” says Stone. Parents with young children understandably have to make cancellations from time to time and one of Puddle Duck’s offers was
full-time IT manager from within the company to oversee its rollout and the training of staff and franchisees. “We are fortunate that we had someone in the business who really understood it,” says Stone. “They were the perfect person for the job.” Stone says the company has invested about £60,000 so far and that the overall investment, including salaries, will be over £100,000. However, she is confident that the new system will deliver strong growth. “Customer service was the main driver; we really wanted to make it better,” she says. “But the franchisees were also wasting a lot of their time on administration. By reducing that, it means they can now spend more time growing and marketing their businesses.”
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FRANCHISE FOCUS
ActionCOACH
ActionCOACH is a multi award winning franchise. ‘Best Overall Franchise Award’ for 2014 in the £25k to £75k investment category. ‘5-Star Franchisee Satisfaction Award’ - 2nd year running. ‘Award for Continuous Improvement’ & Compare The Financial Market’s ‘UK’s Best Business Opportunity’. ActionCOACH is the world’s number one business coaching franchise, with more than 1,000 offices in 50 countries. Our teams of coaches were originally frustrated, undervalued entrepreneurs and white-collar managers.
• Best UK Business Opportunity according to Compare The Financial Markets • Guaranteed £10k per month by month 7 for the best applicants (Ask us about Ts & Cs) • 1st to achieve 5 Star Franchisee Satisfaction Award • Personal investment can be as low as £10k • You get to reap the rewards; the more you put In, the more you get out • Winner 2014 Best Franchise Award sponsored by RBS • Break the 9-5 routine!
Watch a six-minute overview video at www.actioncoach-franchise.co.uk/overview
Contact Rainy or Sam | Call: 01284 701648 | email: rainy@actioncoach.com | www.actioncoach-franchise.co.uk
CEUK001
DNS Accountants
The flexible, efficient & highly rewarding Accountancy Franchise Whatever your experience we have the PERFECT Franchise solution for you. Whether you have many years accountancy experience or are a trainee accountant / bookkeeper looking for a great product, training and support, then we have the Accountancy Franchise for you. Our Franchise Package also includes fully integrated cloud-based bookkeeping and accounting software, as well as high quality leads through our proven lead generation marketing; we give you the tools to succeed and stand out in this highly competitive industry.
• Award Winning Business • Proven Sales Program and Leads • Free Accounting & CRM Software • Large Marketing Territory • Full Training & Unlimited Support • IT Set-up, Back-up & Support • Low Overhead Zero Risk Solution
Call: 020 7148 1706 | email: info@dnsaccountantsfranchise.co.uk | www.dnsaccountantsfranchise.co.uk
DNSA001
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
KIDD001
Women UK
Your own glossy magazine and commercial membership directory. WomenUK.co.uk is the ultimate ‘online’ portal for women in the UK. Packed with fashion, style, health, interiors, business, family and more. WomenUK.co.uk provides readers with advice, tips and news on everyday life both on a national and local scale. WomenUK.co.uk is available to license on a county to county basis and provides businesses the opportunity to reach key decision makers both at home and at work through strong editorial and business listings. Perfect opportunity for anyone wanting to run their own business whilst building a residual income.
• Complete Franchise £9,999 • Full Training Given • Low Overheads/ Work from home • Realistic Earning Expectation in excess of £100,000 within two years • Payment Plan Available
Contact: Carole on 07525842212 or carole@ukwomenmagazine.co.uk for more details. | www.womenuk.co.uk
UKWO001
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Do you have a passion for pets? Do you want to work from home? Do you need flexible working hours? If this sounds like you, then why not open your own Now Boarding Pet Hotel. It’s a wonderful business to run if you love animals, want to work from home and need flexibility with your hours.With our complete start up package, you could be ready to open for business within weeks! We provide you with everything you need to get started, and will help you every step of the way. No previous experience is required as full training will be given in all aspects of running the business. The Now Boarding Franchise Package Includes: • A fully fitted out Now Boarding Pet Hotel • Your own page within a lead generating central website • A bespoke online booking system to manage your business • Your own exclusive territory • Pet Boarding Insurance • Comprehensive training and ongoing support Who are we looking for? We are looking for honest, friendly and hard working individuals, who enjoy giving excellent customer service, and have the drive and determination to succeed. You must share our vision to ensure your Now Boarding Pet Hotel provides the best home boarding service in your area, so that your customers not only recommend you, but return time and time again. If this sounds like you, we’d love to hear from you! Please contact us for further information on the franchise opportunity. Phone: 01322 471801 Email: enquiries@nowboardingpethotels.co.uk www.nowboardingpethotels.co.uk
NOWB001
The Interface Financial Group An ‘in-demand’ Financial Service
Low Capital Start-up
GREAT REASONS
40+ year-old Organization We work with you on every transaction
TO JOIN IFG
Home-based You set the timetable (think Bankers’ hours) No cold calling/telemarketing/advertising
EVEN MORE REASONS...
Training
Support
Experience
R.O.I
0845 834 0332 | ifg@interfacefinancial.com www.interfacefinancial.co.uk INTE002
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Good faith
In good faith
The majority of franchises are built on mutual respect. But good faith in franchise agreements is anything but black and white BY Emily Sadler, solicitor at Paris Smith
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orally speaking, most people involved in ethical franchising would be in no doubt that a franchisor should act in good faith towards its franchisees. Indeed, franchisees themselves should act in good faith towards their franchisors. After all, is that not the very foundation of a good franchising relationship? However, it is rare to see an express contractual obligation to act in good faith towards one another contained within the franchise agreement itself. Therefore, in the absence of an express good faith clause, can those involved rely on an implied duty to act in good faith if the relationship subsequently breaks down? The first thing to say is that this is a grey area of English law, as the courts have varied their approach when dealing with cases concerning good faith. There is no general duty to perform contractual obligations in good faith under English law, in contrast to some European legal systems, which do impose such a duty. The English courts have traditionally been concerned that having an implied duty of good faith would create legal uncertainty by imposing a vague and subjective obligation into freely negotiated contracts between commercial parties. Is the tide turning though? In a 2013 case, the claimant, Yam Seng, was successful in arguing that its contract for the distribution of Manchester United-branded aftershave for sale at duty-free outlets in Asia contained an implied
obligation for the defendant to act in good faith. The defendant, International Trade, had repeatedly misled Yam Seng about stock availability, the nature of its licence with Manchester United and lower retail prices at non-duty free outlets. Yam Seng argued that its business had suffered financial loss as a result of the defendant’s erratic and, at times, dishonest behaviour. The defendant’s breaches were sufficiently serious so as to justify Yam Seng terminating the contract. The judge stated that the certainty of English law is not automatically undermined by recognising general duties such as the requirement to act in good faith. He noted that contracts involving long-term relationships and substantial commitment require a high degree of communication and February 2016 | elitefranchise
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Good faith
In good faith
cooperation based on mutual trust and confidence. He referred to these as ‘relational contracts’, observing that these expectations are rarely found in the express terms of an agreement but are implicit in the parties’ understanding and necessary to give business efficacy to such arrangements. A handful of key cases followed on from the controversial decision in Yam Seng and considered the issue of relational contracts. Decisions in these cases went both ways, with some judges following Yam Seng and finding implied duties to act in good faith, with honesty and integrity, while other judges preferred the more traditional approach. During Yam Seng, one example that was given of a relational contract was a franchise agreement. This was important for franchisors, not least because it was unclear as to what exactly was meant by the term good faith.
The test case for the franchising industry came in 2014 with Carewatch. The defendants advanced arguments in relation to Yam Seng that a clause stating that “the parties would conduct themselves as franchisor and franchisee in good faith” should be implied in the franchise agreement. In rejecting this argument, the judge noted that the agreement already contained detailed express terms that dealt with all aspects of the franchise relationship. Any franchisor or franchisee will be well aware of the many pages in a typical franchise agreement listing all the obligations on both parties – but mainly the franchisee. As such, there was no obvious void that only an implied term of good faith could fill. The judge held, which will be of great comfort to any franchisor, that Carewatch was “free to have regard to its own commercial interests in deciding how to run its franchise business, 70
provided that it complied with the express terms of its current franchise agreements.” Carewatch removed some of the uncertainty for the franchising industry that was left in the wake of the Yam Seng case and confirmed that the courts are likely to take a pragmatic and commercial approach to resolving franchise disputes. The latest key case – Portsmouth City Council v Ensign – was decided last year and involved a contract for a project that would involve the parties working together over a 25-year period – a classic relational contract. Contained within one particular clause of the contract was a requirement to act in good faith but this duty was confined to the clause in question. It was argued by the claimant that the requirement was an overriding objective that should apply to the whole contract. This was rejected but the judge did consider instead that there was an implied term that the defendant had to act honestly, on proper grounds and not in a manner that was arbitrary, irrational or capricious. The Ensign case shows the continued reluctance of the courts to interpret express obligations to act in good faith too widely and therefore it would appear we are back where we started. Whilst it cannot be said that an implied term of good faith could never be applied to a franchise relationship, it appears from recent case law that the idea of an implied contractual duty of good faith seems more suited to highly unusual circumstances, rather than acting as a blanket obligation that applies to the franchise industry as a whole. Whilst this will not please those who prefer black and white answers – I’m afraid law has very few of these – each franchising case before the courts, concerning the issue of good faith, will continue to turn on its specific facts.
elitefranchise | February 2016
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Buy a pizza delivery franchise with
Why buy a pizza delivery franchise? A large market: 70% of Brits ate pizza in 2011 And a growing market: The home delivery market grew by 20% between 2006 and 2011
Even during a recession: Sales at Domino’s, the UK’s largest pizza delivery operator, jumped 8.4% year-on-year at the recession’s peak
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Visit FranchiseSales.com to find out about buying a sandwich franchise – and more!
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Franchisee: Ipswich Location: Ipswich Investment: TBC Established: 2010 Turnover: £58,850
A resale opportunity has arisen for one of our Franchises based in Ipswich. The franchisee started the practice in 2010 from shop front premises. The business has 102 clients with gross recurring fees of c£55,000. As the business operates from a shop front, any purchaser would be walking into a ready-made business with a fully fitted shop complete with furniture, IT and telephone systems. This represents an excellent foundation upon which a new franchisee can further develop an already established business. The business has enjoyed regular growth with the majority of new clients coming from recommendations, walk in business and inbound leads generated from the Support Centre. For a franchise re-sale you only pay us a half franchise and training fee as we recognise that you will also be investing in purchasing the business. You will of course benefit from the training and support that a new franchisee would expect.
TAXA001
Franchise RESALES - sponsored by Franchise ReSales feb16.indd 1
29/01/2016 15:58
Franchisee: Greater Manchester Location: Greater Manchester Investment: TBC Established: 2006 Turnover: £240,000
A resale opportunity has arisen in one of our franchises based in the Greater Manchester area. The franchisee operates from a shop front so any purchaser would be walking into a readymade business with a newly refurbished shop complete with furniture, IT and telephone systems along with experienced, well qualified staff. This represents an excellent foundation upon which a new franchisee can continue to develop a substantial business which is very well known in the local area. The business has enjoyed regular growth with the majority of new clients coming from recommendations, walk in business and inbound leads generated from the support centre. The business has gross recurring fees of c£242,000 and the franchisee is now looking to realise the asset built. For a franchise re-sale you only pay us a half franchise and training fee as we recognise that you will also be investing in purchasing the business. You will of course benefit from the training and support that a new franchisee would expect
TAXA001
No+Vello Franchise Opportunity In Slough For Sale Slough, Berkshire £30,000
A very rare opportunity to take on a recently established clinic in Slough The chance to take over a No+Vello clinic that is already established doesn’t come along too often. But that’s exactly what’s on offer with our Slough clinic in Berkshire. With the current owners husband accepting a Job abroad Manuela is now offering her much loved clinic for sale so she can accompany her husband. Using launch campaigns to build a strong and loyal client base. To cope with the ever-increasing demand for the clinic’s cutting edge IPL treatments, she currently employs one full-time therapist, and works on a part-time basis herself too. treatments on offer in Slough are IPL Hair Removal, Skin Rejuvenation and Pro Skin (Galvanic and Ultrasonic Skin Cleansing).
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Franchise RESALES - sponsored by Franchise ReSales feb16.indd 2
29/01/2016 15:58
BE PART OF THE EXCITING NEW CURRENCY REVOLUTION
Largest cashless banking facility globally
Generate revenue 24/7
22 year old pedigree
Enjoy exponential profits
Franchising in 13 countries
Be part of a franchise community
Over 60% of businesses need our service
working ahead of the curve
UNITED KINGDOM
CHINA INDIA
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THAILAND MALAYSIA
COSTA RICA
SINGAPORE AUSTRALIA Established herehere in Aprilin1993. Established 1993 Currently operating in twelve with over, 70,000 card countries with over 15,000 card holders in 12 countries. LSPHIVW ERH WXEǺ
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BBX001
Enquire to: franchising@bbxuk.com 0333 4002014 www.bbxuk.com/bbx-franchise BBX.indd 1
BB UK
BUSINESS BANK EXCHANGE 29/01/2016 16:57
Operate your very own branch of The Bank of Spare Capacity. Now is your chance to be part of the CURRENCY REVOLUTION with the rise of alternative currencies gathering pace along with the acceptance of new methods to fund business growth. BBX has been a leader in the marketplace since inception in 1993 and is proud to have a strong franchising pedigree allowing it to expand into 12 countries covering 4 continents. Our franchisees invariably have a background in sales management and are good motivators and communicators. Depending on the individual strengths a franchisee will chose to build either a Regional or District franchise, details below, which both enjoy the following key benefits: • Worldwide brand and proven business model. • A product at the forefront of the currency revolution currently taking place. • Earnings 24/7 due to international reach and automated systems. • High profitability and re-sale values.
Regional Franchise As one of 14 regional franchisees you would be responsible for client acquisition within a defined territory and developing a sales team of up-to 15 individuals to recruit 30 new clients for each of the 5 district offices in your territory. You would also be responsible for running a regional sales office and forging links with the business heads in the area.
District Franchise A district franchisee is responsible for the ongoing client management of the accounts within a defined area involving:
Regional P&L Forecast YEAR
P&L
1
£64,906
2
£133,956
3
£313,006
4
£418,342
5
£535,943
District P&L Forecast YEAR
P&L
1
£50,838
2
£121,015
3
£251,935
• Running periodic networking events
4
• Maximising the clients usage of our currency
5
£305,135 £347,396
• Establishing a District Branch office • Building a team of account managers
Enquire to: franchising@bbxuk.com 0333 4002014 www.bbxuk.com/bbx-franchise EliteFranchise1015.indd 2
BB UK
BUSINESS BANK EXCHANGE 06/10/2015 14:12
ADVERTISING FEATURE
Is franchising for you?
franchise’s merchandising and policies. On the other hand, so long as you’re happy to work within the franchise’s parameters, you can actually find a good deal more flexibility and control within the system than is typically offered in regular employment.
3. You enjoy hard work Franchises don’t necessarily require the same number of long hours that setting up your own business may call for. But they do still require a good level of enthusiasm and input and this is where some people fall down, thinking that all the hard work is already done for them. Depending on how well known the franchise is, the brand name should indeed help to draw some customers and you’ll also benefit from exclusivity clauses, but this isn’t a route for those looking to just kick back and let the brand name do all the talking. If you’re looking to buy a franchise, you still need to be motivated and committed. You need to be able and willing to devote the necessary time and energy to the venture. At the same time you’ll also need to follow the franchisor’s systems and policies.
2. You want some security Setting up and running your own business from scratch is a process fraught with uncertainty and pitfalls and even those people that do a good amount of research and are experienced in the field can find the challenges difficult to deal with at times. Most people setting up their own business don’t start making
4. You can afford it Buying a franchise can be surprisingly expensive, especially if it’s a wellknown name. It’s not something that everyone can afford to do, so you may need to consider your finance options and budget carefully. But if you have access to good credit or other available funds and you have answered yes to the other three questions above, then buying a franchise just might be for you.
from FranchiseSales.com
What kind of person should buy a franchise? If it is something that you’ve considered in the past or are now considering, then this could be a pertinent question. After all, not everyone is suited for this type of work
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any people enjoy the structured environment that full-time employment offers. Others find the uncertainty involved in running their own business, albeit a franchise, off-putting or even alarming. So is it right for you? Let’s take a look at four top reasons why it just could be.
1. You want more control With a franchise, you’ll still have involvement with – and guidance from – the franchisor. The extent to which this guidance is hands-on varies but if you’re after complete control of your business then franchising may not be a model that suits you. You’ll still have to adhere to the
a profit straight away, so it can be problematic if you don’t have solid finance or other funds in place. A franchise, on the other hand, is a tried-and-tested model that offers a level of security because there is already brand awareness and an existing customer base. You’ll also benefit from the ongoing support and training that your franchisor can offer, rather than being thrown in at the deep end and left to figure things out for yourself.
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ADVERTISING FEATURE
How to choose a franchise
Buying a franchise is a model that is often preferred to outright business ownership. It has many advantages, not least of which is that all the branding, marketing and products are already in place
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uying a franchise frequently appeals to those looking for an environment with more freedom and flexibility than offered by regular employment. Equally, because of the brand awareness and trading background, as well as the ongoing support offered to new franchisees, this route also offers a degree of certainty and security. So if you have decided that buying a franchise is a good option for you, how do you go about choosing which one?
1. Consider your skills and experience Buying a franchise is a big step and not one that you should take lightly. It can certainly help if you have skills and experience in a certain field and know what kind of franchise you are looking for. As well as specific experience and interests, you may also want to consider general factors, such as your strengths and weaknesses, and whether you want to work primarily
alone or with others. 2. Think about the demand and competition within your field Consider how much demand there is in the local area for the product or service. This ties in with how much competition there is. If demand is saturated, either because there isn’t much in the first place or because many other places offer the same products or services, then there may not be a big enough customer base for your franchise to be viable. 3. Assess your budget and finance options This is, of course, a key consideration. You need to be looking around for finance options before you express an interest in a franchise and you need to have a good idea of how much money you can invest. 4. Think about lifestyle factors These include factors such as
relocating and work hours. Are you prepared to relocate for the right franchise? It could be an opportunity to make a fresh start in another area, but equally many people want to remain closer to home because of family or other commitments. You’ll also need to consider what kind of work hours you’re prepared to put in, both while the business is being set up and after it is established. 5. Judge the franchise on its name and potential Think about the franchise. Is it a name that people easily recognise? What kind of reputation does it have? A well-known name is likely to attract more customers than an unknown business, which can give you an advantage from the start. But you also need to think about how long the company has been in business and whether it has a solid business model for the future or is a passing fad that could run into trouble in the years to come. 6. Weigh up the training and support on offer Franchisors typically offer a good level of training and support to their franchisees. After all, they want your business to be successful too as this will feed back to them. But there are no guarantees, so be firm and assess whether they do indeed offer a thorough level of training and guidance for you and your staff. 7. Network and research Talk to people in the business to see what they think about the franchise. Where possible, this should include current or past owners of the franchise you’re thinking about buying, as their opinions and experiences will provide invaluable inside information. They might be biased, of course, so look for third party evaluations too.
February 2016 | elitefranchise
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ADVERTISING FEATURE
How to sell yourself to a franchisor When a franchisor sells the rights to be part of their brand, they have to be sure that they are selling to the right person: somebody who will fit in and, if possible, even improve the company’s standing
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f you want to be that person, you have to make the most of the limited opportunity you will get to present yourself to the franchisor.
Before you prepare your application Do your homework. If you’re presenting an existing concern for consideration, identify all those qualities that your current business and the franchise share. These will probably be the usual things that make your business desirable, such as reliability, quality of provision and being an equitable employer. But you can only really pinpoint any commonalities by researching the franchise. Structuring your presentation You will need to pitch your proposal to the franchisor in the form of a presentation. To achieve the desired result, this should inform the franchisor about the ways in which accepting you as part of their franchise family will benefit the existing structure. This is where your research will pay off as you can highlight those very properties that you know they look for in a franchisee. Be concise and direct as you paint them a picture of a future company
that is enriched by what you have to offer. Practising for your presentation The more relaxed and well-informed you are during the presentation, the more convincingly you will be able to make your case. The key to being relaxed is to have practised the presentation until it requires no effort, so you should write it well ahead of your appointment; this will give you time to learn it, almost as you would learn a script. However, you should be prepared for any questions that may arise from your presentation. Put yourself in the franchisor’s shoes and try to foresee what they may ask. Know your main points inside out, so that if one of them is covered in the answer to a question, you can move on without repeating yourself.
company, so that they understand the context of your pitch. Don’t: • Rely too heavily on notes. This detracts from the presentation, preventing you from making strong eye contact. It also gives the impression that you are not thoroughly familiar with your own business. • Neglect your appearance. Dress to impress, without being too ostentatious. • Try to fill silences with unprepared statements. The franchisor may interpret this as anxiety and worry about how you will cope in a crisis. • When you research a company, you will discover whether it is right for you as well as being able to determine whether you are right for it. If you truly believe that you can bring a positive dimension to a franchise, you should have very little difficulty vocalising that belief. If you don’t know whether you and the franchise are a good fit, you should keep looking. When you find the right company, everyone will benefit.
Dos and don’ts
To devise a strong presentation, Do: • Be specific about how you can add value to the franchise. • Be honest about your achievements and abilities. • State your case coherently, making relevant points in an assertive and non-repetitive way. • Prepare a concise overview of your
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elitefranchise | February 2016
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ADVERTISING FEATURE
The franchise agreement When you agree to take on a franchise, the most important – step that you will be expected to take is to oversee the creation of your franchise agreement
• Training of staff to uphold the standards and practices associated with the brand, including whose responsibility it is to arrange and pay for such training. • The length of time covered by the agreement and whether it will be renewable under current terms or will require renegotiation in the future. • Brand image, including such factors as logo use, uniforms and the appearance of any premises. This is one of those concerns that is particular to franchise agreements. • Company policies, such as opening times, which you must investigate thoroughly, since you will be bound to adhere to the timetable expected by those familiar with the brand. Another policy that will need to be laid out in full is the staffing policy: what are the rules regarding holidays, sick pay, recruitment and professional development, for example? Opening the new franchise You may be expected to hold an event to mark the opening of the business and, if so, you need to establish what is expected of you and whether the franchisor will contribute anything in the way of funding, resources or a corporate presence. Similarly, you may need to commit to a certain budget for advertising, which you would have to factor into any calculations.
T
his is the contract that lays out, in great detail, both your rights and obligations as the franchisee and those of the franchisor.
Before the agreement has been drawn up As you would expect, a franchisor will often have a standard agreement waiting for use upon your decision to become involved in the business. However, in your predecision discussions, you will probably have been given a number of assurances verbally and it is very important that you keep track of these, record them and insist that they are included in the final document. Once you have signed an agreement, any promises made prior to that signature will be superseded by the written contract and it will be too late to add something new. What can you expect to find in the agreement? There are a number of factors that may be common to most legal contracts and some that are generally found in franchise agreements but not in others. However, on the whole, you should expect details regarding: • Fees, including the management service fee, which is usually calculated as a percentage of your profit, but may include a stipulation of a minimum fee.
Obtaining supplies Many franchises have specifications for products that require you to obtain supplies and equipment from the company itself. The terms and conditions of such procurement will be included in this agreement. In some instances, a separate guideline on business practices within the franchise may be available, whether as part of the agreement or at an additional cost. If this guide – or ‘operations manual’ – is available electronically, it is important to ascertain how often it will be updated. Moving on Even as you take on a new franchise, it is important to plan an exit strategy, as well as knowing what would happen in the event of your death. You will need to know whether the franchise passes to your spouse, partner or heir if you die, whether the franchisor must be consulted if you want to pass the business on and whether there are any conditions under which either you or the franchisor can end the agreement before it has run its full course. Any legal agreement must be taken absolutely seriously, as it is binding and - usually - very costly. Make sure you have complete confidence in those with whom you are entering into the agreement and ask your solicitor to read the document, explain it to you and draw your attention to any concerns they may have. With proper attention to detail, the purchase of a franchise can be the beginning of a highly successful enterprise.
February 2016 | elitefranchise
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Franchise Diaries with Kate Lester, chief talent spotter at Diamond Logistics
The F word If there’s one thing franchisees should be wary of when seeking a new opportunity, it’s a franchisor that says it has never failed In much of society, failure is seen as a bad thing. We are conditioned from a very early age not to fail, not to hold up our hands and not to ‘fess up when we have made mistakes. And this is fundamentally wrong. Any businessperson, sportsperson or franchise professional will have suffered multiple failures. But the difference between ultimate success and mediocrity is the acceptance of failure as a way to continually improve. In some industries in the UK today, failure is openly assessed, evaluated and monitored. Learnings are then copied and communicated widely so that these failures are reduced moving forward. Tragically there are also industries that support a more hierarchical structure, with status, egos and recriminatory practices meaning teams are scared to admit failure. As a result, valuable lessons are missed and the same failures are denied or negated. Ultimately this can lead to even more failures – and in some industries this costs lives as well as businesses. There are some great books to read on this subject, my favourite of which is Black Box Thinking by Matthew Syed. It draws particular differences between the aviation industry – which predominantly evaluates, reports and upskills based on the learnings of failure – and healthcare, which for many reasons doesn’t seem to welcome the assessment of failure. It shows that, statistically, healthcare 80
has considerably higher failures rates. Fatal failure rates. So what does this have to do with franchising? Well, it should help you evaluate your franchisor for a start. Any franchisor who says they haven’t had failures is lying. You should therefore be deeply suspicious of the franchisor who preaches 100% success rates – and yes I have seen a few. It’s better to see a franchisor who has incorporated a method of assessing failure, evaluating it and addressing those issues – and indeed communicating those learnings to their teams – in order to make sure that their product improves. This means it is safer for you to look at franchises that are a few years old. People investing in a new franchise may enjoy lower investment rates and the thrill of being part of a startup but I know most franchisees now would rather be part of a third or fourth tranche of recruitment when some of the mistakes – by both the franchisor and other franchisees – have been made and lessons learnt. We actually did a presentation in one of our first network meets – and we now roll it out to all of our new depots – called How to Fail. It lists all the things that you need to do to almost guarantee mucking up your business. It serves as a salutary warning and guides our franchises on making the right choices, following the right path and increasing their probability of success. We also actively encourage interaction and the reporting of failures; taking feedback at every event while monitoring what sales techniques work and, conversely, those that don’t.
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It does take an enormous amount of guts to self-evaluate like this. Society likes to apportion blame or find a scapegoat but this is often a massive simplification that neither delivers improvement nor finds the real essence of problems. Ask yourself this: would you rather be part of a team that is conscious of the people factor, builds that into its model and has taken time to evaluate where it has gone wrong so that it can improve its products? Or would you rather be part of a hierarchical, top-down organisation that is blind to selfimprovement and thinks it knows best and everyone else is wrong? I know what I’d prefer. If you are running a franchise – or are thinking of investing in one – why not ask the franchisor about their failure rates? Ask them what they have learned. Ask them what they do differently now and ask what you need to avoid in order to be their next big success story. Also ask how many years they have been doing it and how
they evaluate their successes and failures. This will show you three key things. Number one: if they are admitting to failure, this means they are honest. There is not a single decent franchisor I know who hasn’t failed. If they say they haven’t then their definition of failure is flawed or they are just plain lying. Number two: if training incorporates learning from failure, this means there is a company ethic of continual improvement. Successes and failures are shared among the team, resulting in better products, services and franchise success rates. Number three: if franchisors accept failure as being a two-way street, you know they are truly committed to a partnership. But if your franchisor thinks all failures are wholly the franchisee’s fault, it shows that they are not sufficiently self-aware to acknowledge their lack of perfection, which is dangerous. If you get your questions about failure answered openly and honestly, it means that you have a very strong foundation on which to build your business.
There is not a single decent franchisor I know who hasn’t failed
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ADVERTISING FEATURE
Not all franchise opportunities are created equal Will Gavan of Jani-King UK explains
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et’s face it: there are a lot of franchise choices out there and an almost infinite range of industries, specialisms and business types to choose from. So how do you make that choice? It makes sense to go for a franchise with stability, one that offers you an established brand with proven recession resistance, extensive support and training and flexible startup options. So far, so obvious. But what else is out there and what else can you get? Looking around, it’s clear that not many franchise opportunities can offer gold-plated guaranteed offers of monthly All our business and immediate and ongoing franchisees are demand in every area. That’s where Janiguaranteed to King comes in. Jani-King is one of the be offered an largest commercial cleaning franchise agreed amount companies in the world and has been of monthly present in the UK for 23 years. We thrived business during the recent economic downturn and 2015 was a particularly buoyant year, generating £1.2m of new business for existing franchisees. We also won a prestigious new contract with national restaurant chain Byron Burgers last year, adding them to our existing client list that includes H&M, Wagamama, Diesel, Lexus and Mercedes car showrooms, Yo Sushi and Giraffe, amongst others. 82
So how does this benefit you? All of our franchisees are guaranteed to be offered an agreed amount of monthly business and we deliver on that guarantee. The average increase in turnover for our franchisees in 2015 was 24% (resulting in an average turnover for franchisees of £72k per month). Our best performing franchise saw their turnover increase by 55%. This surprising level of growth is directly attributable to the high level of holistic support that Jani-King provides to its franchisees. As well as delivering on the initial guarantee we know that businesses have to grow to survive, so we ensure that our franchisees have unlimited access to a dedicated locally-based sales team that is supported by a proven national sales effort. In addition to winning new business for franchisees, Jani-King’s proven system provides ongoing business management support, including customer invoicing, cash collection, customer-service calls, customer management and on-going technical training. This means there is always someone to help and you are never alone. Jani-King UK franchisees also have the added and invaluable benefit of ongoing business mentoring and support to help their franchise business achieve its potential and to give them the personal and business skills needed for each stage of business growth, including putting systems, processes and organisation in place to create a real scalable and saleable business asset. If you are keen find out how you could be part of the Jani-King success story, why not get in touch to see how we can work together to build your business for the future? Freephone 0800 917 3293 Email info@janiking.co.uk Web www.janiking.co.uk
elitefranchise | February 2016
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Looking for an opportunity to become a successful, independent business owner, backed by one of the world’s largest franchised cleaning companies?
Plans start from as little as
£18,000
New franchise plans start from as little as £18,000 and go up from there in line with the investment you wish to make and the amount of guaranteed offers of business you want. Success with national accounts means we urgently need new franchisees to service existing business in: Bristol Cardiff East Anglia
East and West Midlands Yorkshire London and M25
If you are interested in becoming the next Jani-King success story why not get in touch to find out more and start the ball rolling?
“When I was looking into different franchise opportunities the one offered by Jani-King stood out to me over the competition for a number of reasons. I was reassured because it offered a proven business model with guaranteed turnover, which they delivered, and the chance to work with some well-known national brands. I am glad that I chose Jani-King, they have more than fulfilled their promises and, with their comprehensive support, I have built an extremely successful franchise business that has grown steadily, even during the recent economic downturn.” Tony Vockins, Jani-King franchisee of 8 years
Freephone 0800 917 3293 Email info@janiking.co.uk www.janiking.co.uk JKFR001 Jani King DPS.indd 2
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Wanted Property Entrepreneurs
Are you Ready to Deliver a World-Class Customer Service? Join a Multi Award-Winning Property Franchise - HomeXperts Jason & Gaya chose HomeXperts for their support and training... “There are a number of reasons why I chose HomeXperts. I have worked in estate agency for approximately 17 years and enjoyed building a good name, contacts and market awareness. I have also been a landlord and let property for over 10 years. The HomeXperts franchise enabled me to continue working in the area that I have great knowledge and contacts while offering me Jason & Gaya Barnett, greater flexibility running my business working from home. As I enter my second year my business is healthy, growing at a rate of HomeXperts Worcester knots and I have established a reputation for excellent customer service which is creating some excellent referral business for HomeXperts.
Sussanne Chambers, Managing Director and Founder, accepting The Sunday Times’ Gold award for Best Estate Agency Franchise from Matt Dawson MBE
It scares me now that I may have missed out on this amazing opportunity by not having the courage to branch out on my own. But with the support of the amazing team at the Central Support Office my dreams are coming true.”
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HomeXperts received a rating of 88% in the Lloyds TSB Franchise Benchmark Satisfaction Survey, the highest rating for any property Franchise.
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Impressive Training
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HomeXperts is the only property franchise delivering an industry-leading monthly programme of Continual Professional Development.
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An individual launch marketing plan and marketing campaign enable franchisees to hit the ground running. We work with you to make your business a success. To register to attend a Discovery Meeting near you, visit www.home-xperts.co.uk or email at us at franchise@homexpertsuk.com
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Our top franchisees become members of the HomeXperts ‘Altitude Club’ by earning more than £25,000 in a month in invoiced commissions. Clever marketing has helped our franchisees to achieve profitability and sustainable businesses. Our intensive training academy trains to National Federation of Property Professional (NFOPP) standards. 22 weeks of ongoing support to guide new franchisees through their business set up process.
Each franchisee has a Support Manager to guide them through the launch processes and business development. Monthly one-to-one’s to discuss your progress. To join HomeXperts call us on
01905 678853
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