Elite Franchise Magazine | Jan 2016 by Elite Business Magazine

JANUARY 2016

CLEANING UP JANUARY 2015

From pounding the streets winning contracts to heading up a cleaning franchise listed on the Sunday Times Fast Track 100, Carol Stewart-Gill is a self-made success ÂŁ4.50

sausage anne egg McMuffin I am a franchisee & this is my McDonald’s ‘For me, it’s all about the people. I have some fabulous people working for me – quite a few who’ve been with me since day one – and it’s a pleasure to watch them grow. Someone who started out as a Crew Member is now the Business Manager at one of my restaurants.’ Anne, operates four restaurants in Leeds

www.mcdonalds.co.uk/franchising

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The Elite interview Carol Stewart-Gill is cleaning the floor with the competition

7 Editorâ&#x20AC;&#x2122;s letter 8 Contributors 12 News & events 64 Franchise diaries

53 Top tech for 2016

24 Moving on up

56 Watch your step

The technology trends that franchises can ill afford to ignore next year

Two Men and a Truck looks set to revitalise removals

30 The right tools for the job

Becoming a franchisor can entail a serious skills shake-up

36 A job well done

44 Finding your voice

40 The future of franchise funding

49 Rules of engagement

Recruitment franchise Antal International is ruling the world

Why looking beyond the banks can pay off for cash-hungry franchises 4

How to avoid the legal pitfalls that could spell trouble for any franchise

How public speaking can put your brand in pole position

Retaining top talent is the key to a successful franchise story

elitefranchise | January 2016

Contents Jan16.indd 1

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Connecting the right people to grow your franchise

Platinum Wave’s expertise spans from helping successful entrepreneurs franchise their business, through to franchisee recruitment, sales generating marketing, business performance, international franchising and we have a significant number of franchise opportunities in the UK and internationally across a variety of business sectors. Collectively our team has: Built their own international franchise networks Sat on the board of a recruitment plc Rescued underperforming networks Recruited franchisees from a huge cross section of business sectors Built brands from scratch and taken them successfully to market Mentored franchisors and franchisees Sat as a Regional Chairperson for the British Franchise Association Delivered digital marketing services including websites, apps, prospectuses, operations manuals, Copywriting, email campaigns, social media and PPC We have a great reputation because we don’t over promise and we always deliver – it’s for this reason that our clients come back to us time and time again as they grow their businesses.

Together, we make your team unstoppable. Contact us to discuss your franchising needs on franchise@platinumwave.co.uk or call Suzie McCafferty direct on 07793 054233

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The freedom.. of running your own business, with the support that only a successful national brand can give.

Established for over 21 years Drain Doctor is offering: - A solid recession proof business - Good cash flow - A national company with national accounts and marketing support Franchises available in: TAUNTON, SLOUGH, EXETER, BRISTOL, BRADFORD, WEST LONDON, ABERDEEN, EDINBURGH, GATWICK, STOKE ON TRENT

For more information contact Jan Mitman on 01733 753939 or visit www.draindoctor.co.uk

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VOLUME 04 ISSUE 01 / 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

Exciting times ahead First things first, I’d like to take this chance to wish you all a happy new year. I hope you’re feeling well-fed, well-recuperated and well-prepared for 2016. Just in case you’d forgotten – or missed our email a couple of months back – Elite Franchise will now be arriving on your desk every month. In some ways, this merely reflects the rude health of the UK’s franchise industry. Equally though, the interest that people have shown in the magazine is such that we had little choice but to increase the regularity of its publication. Suffice to say, we’re been incredibly humbled by the reception we’ve enjoyed since launching the magazine a little over two years ago and I’d like to thank you all for your ongoing support. It’s also a testament to the hard work of everyone involved at Elite Franchise – from editorial to administration. That’s not to say we’re resting on our laurels though: like all successful businesses, franchises included, we have to evolve with the times. That’s why we’ll be introducing a fresh design and some brand new guest columnists for you next month. If that’s not exciting enough, 2016 also happens to be a leap year, so you’ve got an extra day to make your franchise a success. Hopefully we’ll be able to help you along the way. Adam Pescod - ACTING EDITOR adam.pescod@cemedia.co.uk

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.

cemedia.co.uk

January 2016 | elitefranchise

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Chris Brock Brock is the talented chap who snapped this month’s cover star Carol Stewart-Gill. A London-based portrait photographer, he has twice been shortlisted for Photographer of the Year and was a finalist in this year’s prestigious Association of Photography (AOP) awards. When he’s not snapping away, Brock enjoys jogging or catching a flick at the cinema. His new year’s resolution is to attempt to get a six pack – just as it was last year. And the year before that. And the year before that.

Jon Card The author of our feature that predicts the top tech of 2016, Card is a freelance journalist who writes for The Guardian and anyone else that pays him. He predicts that his Christmas will involve excessive eating, drinking and repetitive viewing of the latest Thomas the Tank Engine films. However, he hopes his children will soon be enticed into watching Star Wars instead. Fittingly, his new year’s resolution is not to be tempted by the dark side.

Kate Lester

PHOTO: EMILIE SANDY

Lester actually penned this month’s column back in November but while it might sound incredibly forwardthinking, there was more to her promptness than meets the eye. Fresh from another successful year with Diamond Logistics, Lester celebrated with a well-earned trip to Vietnam and Laos in December. Unfortunately, her travels meant we couldn’t get hold of her for a new year’s resolution. But we suspect it will be along the lines of repeating last year’s success.

Leona Connor Our head designer Connor is the inspired individual in charge of bringing beauty to Elite Franchise’s every utterance but she’s also a bit of a travel junky. One of her most recent excursions was to Cologne, where she browsed the Christmas markets, enjoyed some gluhwein and checked out the gothic dom – or cathedral to us uncultured English. Her new year’s resolution is to perfect her diving in time for her honeymoon in 2017. Did we mention she’s getting hitched?

elitefranchise | January 2016

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Enjoy a safe and secure future with Dublcheck

Founded in 1993, Dublcheck is the UK’s leading franchised commercial cleaning company and has been recognised as the 20th fastest growing private business by Virgin Fast Track and The Sunday Times. With over 100 franchisees in operation, Dublcheck remains a wholly owned British company. Founder and chairman Carol Stewart-Gill says: “If you put in the effort and follow the Dublcheck system, huge rewards can be realised. Franchisees can look forward to a safe and secure future and a great opportunity to create a large business and valuable asset.” The benefits of Dublcheck are: • Low-cost entry • Invoicing and cash collection • Recession-proof utility business • Low overhead requirement - can operate from home • Dublcheck is the franchise where you don't need to be able to sell, we obtain the business for you • Professional white-collar management franchise or operational franchise • Everywhere you look buildings need cleaning • Over 100 franchisees across the UK • 92 per cent customer retention rate • Hundreds of fantastic franchisee testimonials • A massive market that keeps on growing

What our franchisees say:

Graham Coulston-Herrmann and his wife from Lancashire started our Dublcheck Cleaning Franchise in August 2012. “My wife and I were both police officers. I retired in September 2012 after 30 years In Lancashire Constabulary. I chose a Dublcheck franchise after seeing them at the Franchise exhibition 6 months earlier. I was drawn to them as they had a strong customer service model. They also were very friendly and approachable, almost like joining a family. The initial training was excellent covering the practicalities of running a cleaning company as well as the issues that a startup business has to consider. Starting out as a Dublcheck franchisee has allowed someone with no business experience to grow a successful business. I aim to double the size of the business over the next two years. In order to achieve this we will continue to do the basics very well and thereby build a very strong and loyal customer base. Supported by a happy and loyal workforce.

For further details call 0800 317236 or email franchise@dublcheck.co.uk www.dublcheck.co.uk Dublcheck FP Ad Aug15 .indd 1

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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 canâ&#x20AC;&#x2122;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, itâ&#x20AC;&#x2122;s very important that you have the support of people with experience, knowledge and an interest in your success. January 2016 | elitefranchise

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PHOTO: EMILIE SANDY

The old adage holds that charity begins at home and Belvoir, the property lettings and sales franchise, should know. To celebrate its 20 years in business, the company has raised over £20,000 across all of its offices, engaging in a wide range of fundraising activities, including marathons, charity cycle races, sponsored silences, fancy dress days, sponsored mountain climbs and Tough Mudder runs. “We are incredibly grateful to everyone that took part and some offices went above and beyond the call of duty, raising thousands of pounds,” said Dorian Gonsalves, the company’s director of commercial and franchising. Another admirable achievement for Belvoir.

It’s always nice to see an Elite Franchise cover star rewarded for their achievements, so we were understandably delighted to hear that Jan Mitman has been named a Companion of the British Franchise Association (bfa). Awarded in recognition of her contribution and dedication to franchising, Mitman becomes the just the 19th recipient of Companionship since the bfa’s formation in 1977. Along with her husband Freddie, Mitman grew Drain Doctor into the UK’s largest emergency plumbing and drainage franchise before selling it back to parent franchisor Dwyer Group last October. We certainly couldn’t think of anyone more deserving of the accolade.

WORDS: ADAM PESCOD, JOSH RUSSELL

No matter what your nationality, we all love pizza. Germans are certainly no exception, which is why the companies that own Domino’s Pizza in the UK and Australia are eager to grab a larger slice of the German market. To this end, the UK’s Domino’s Pizza Group and its Australian counterpart Domino’s Pizza Enterprises are coming together in a joint venture to make a $86m acquisition of 212 Joey’s Pizza stores in the country. It takes Domino’s combined holdings in Germany to 227 and sees the company finally become the country’s largest pizza-delivery chain. Not the wurst choice of acquisition then.

If there’s something all SMEs need, it’s a little bit of help and support. And that’s as true of a small business operating in the UK as one based on the other side of the world. Recognising this, business consultancy franchise Business Doctors has announced the launch of its first office in India. The new venture in Gujarat has been opened by Saurab Khandelwal, who is looking to grow the franchise’s network throughout India. With expansion into New Zealand and Ireland lined up for 2016, things are looking very healthy indeed for Business Doctors.

upcoming events Prospective Franchisee Seminar January 13 bfa offices, 85f Park Drive, Milton Park, Abingdon, OX14 4RY

Prospective Franchisor Seminar January 14 bfa offices, 85f Park Drive, Milton Park, Abingdon, OX14 4RY

Northern bfa Discovery Day January 19 Hilton Manchester Airport, Outwood Lane, Manchester, M90 4WP

The Franchise Show February 19 - 20 ExCeL, Royal Victoria Dock, 1 Western Gateway, London, E16 1XL

National Franchise Exhibition February 19 - 20 NEC, Birmingham, West Midlands, B40 1NT

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

elitefranchise | January 2016

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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

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ADVERTISING FEATURE

Elevate your career in 2016 Fed up of working for someone else? Thinking about a career change? One industry in which you will expand your skill set and meet lots of new people is the estate and letting agency sector

HomeXperts Amazing Franchisees

ecoming an estate agent is a rewarding and challenging career where you can have a real impact on people’s lives by helping them to move into their dream home. If you are passionate about property and going the extra mile for your clients then estate and letting agency could be right for you. One company that is innovating the property sector is HomeXperts.

in one central location, including all of the legal documents, marketing materials and software. The cloud-based Hub is accessible 24/7 allowing franchisees to access all the materials they need to run their agencies when they need them. When new franchisees join HomeXperts, their Franchise Opener system provides a stepby-step guide to all of the tasks they need to complete in order to launch their agencies.

How are HomeXperts changing the industry? Its forward-thinking franchise model helps its franchisees to build and establish successful estate and letting agencies working from home or from small nonhigh-street office spaces. This helps its franchisees keep down expensive rental costs, allowing them to reinvest in building up their business through exceptional marketing. HomeXperts was the first property franchise to give franchisees an individual local website enabling them to compete effectively with their competitors.

How much support will I receive? HomeXperts’ initial intensive training academy trains you to National Federation of Property Professionals (NFoPP) standards, leading you to accreditation from the National Association of Estate Agents (NAEA) and the Association of Residential Letting Agents (ARLA). You will then receive 20 weeks of ongoing mentoring and support to help you launch your business. The comprehensive training and support package also includes quarterly franchisee meetings, monthly one-to-ones and twice-weekly webinars.

What sets their model apart from the rest? The award-winning HomeXperts Hub hosts its ten-volume operations manual online

Do you want to join the best of the best? HomeXperts is proud to have retained the Gold award for Best Estate Agency

November Training Academy at HomeXperts’ Central Support Office

Franchise at The Sunday Times Awards, being a winner for the third year running. It was also awarded Bronze at The Sunday Times Letting Agency Awards for Best Franchise. At the Regional Chamber Awards, HomeXperts won the West Midlands award for Best Use of Technology to Improve your Business, validating the software, systems and processes of its model across a variety of sectors. Are you tired of making money for someone else? By working hard and following the multiaward-winning franchise model you could secure your financial future by establishing a profitable and successful estate and letting agency. HomeXperts’ top-earning franchisees join the HomeXperts Altitude Club by earning more than £25,000 in invoiced commissions in a month. Will you struggle to fund your own 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 four major high-street banks, which enables you to borrow up to 70% of the initial franchise fee and first year’s running costs. On an individual merit-by-merit basis, it also offers selective financial packages to help you focus on developing your business. 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 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 a discovery meeting which are held around the country, including London, Birmingham, Manchester and Worcester by emailing josh@homexpertsuk.com.

elitefranchise | January 2016

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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.”

Happy Franchisees n

HomeXperts received a rating of 88% in the Lloyds TSB Franchise Benchmark Satisfaction Survey, the highest rating for any property Franchise.

Impressive Training

HomeXperts is the only property franchise delivering an industry-leading monthly programme of Continual Professional Development.

Serious Franchisee Support n

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

24/12/2015 13:38

THE ELITE INTERVIEW

To get Dublcheck off the ground, founder Carol StewartGill hit the streets and started knocking on doors. More than two decades later, the cleaning franchise she chairs boasts 120 franchisees across the UK

Checking all the boxes BY JOSH RUSSELL / PHOTOGRAPHY BY CHRIS BROCK

uilding a business empire from scratch isn’t easy. But if you have a degree of tenacity and determination, you can make your dreams a reality. Carol Stewart-Gill, founder and chairwoman of Dublcheck, the cleaning franchise, is living proof of this: with sheer grit and resolve she has created a company that has drawn both adulation and emulation in equal measure. Like many entrepreneurs, Stewart-Gill found the education system inaccessible – although perhaps not for the reasons you might expect. “I went to a Welsh-speaking school but didn’t speak the language,” she explains. “It was frustrating because I knew I had a lot to give.” Stewart-Gill left education with five O-levels and entered secretarial college; fortunately she has since found that aptitude, rather than academics, are more important in creating commercial success. “I truly believe now – having been what I’ve been through – that it’s not about your qualification set,” she says. “It’s the person that actually creates success.” 16

But Stewart-Gill didn’t rush out into the world of work: for some time her main focus was being a stay-at-home wife and mother. However, in 1993, a change in life circumstances meant that her family needed an additional income stream. And one of the first ideas that came into Stewart-Gill’s head was commercial cleaning. “I thought ‘blimey, it can’t be that difficult’,” she says. “So out I went, knocked on doors and eventually got my first contract.” Before long, this one contract had multiplied into many more and she realised that she needed to take on some outside help. Franchising seemed the obvious choice. While the transition from business owner to franchisor can be a tricky one, the fact that Stewart-Gill was still a relative newcomer to the industry meant that she could more easily relate to those she was looking to entice. “You’re singing from the same hymn sheet as people who are going into it,” she says. “Even people that have previously been managing directors can still be nervous because they’re going into an industry that they’re not familiar with.” This helped her create an attractive model with which to draw in franchisees. But it’s not just a case of building it and assuming they will come; the fledgling franchise needed to start getting the word out. “At the time, we were just a Chester-based operation,” StewartGill says. “So we advertised locally and, before I knew it, we’d got our first franchisee.” Having taken on its first franchisee to keep up with demand, Dublcheck suddenly found its client numbers exploding. “Once we began franchising, we just kept getting more and more contracts,” says Stewart-Gill. In part, she attributes this to customers liking the fact that they would be dealing with someone who had a direct

elitefranchise | January 2016

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Iâ&#x20AC;&#x2122;m a grafter; I started this business just knocking on doors

January 2016 | elitefranchise

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THE ELITE INTERVIEW

It’s not about your qualification set; it’s the person that actually creates success

stake in the business. “We were able to say the person responsible for the cleaning of your office owns their business,” she says. Rather than being handled by an individual who had little reason to do a good job, they knew the team cleaning their office would be being managed by someone with a genuine interest in delivering the best results. “That’s how we stood out from the crowd,” she says. Inevitably the appetite for its service meant that Dublcheck needed to rapidly scale up its franchise operations. Fortunately, it not only gained some significant traction from featuring in magazines and exhibitions but a slew of word-of-mouth recommendations also helped it to start securing significant organic growth. “We went from a local franchise to a regional and then a national one,” Stewart-Gill says. “It was that kind of expansion.” Other factors that undoubtedly contributed to Dublcheck’s rapid growth are the wide range of investment options it offers and the fact that it provides a concrete income to franchisees. “They’re guaranteed a certain turnover,” StewartGill says. At the lowest end of the scale, there are packages available for £9,950 that offer a hands-on cleaning business turning over £14,000, whilst, for those with a little more cash in their pockets, a £190,950 investment will put a franchisee at the head of a £500,000-a-year operation. Part of the reason the investment level is so variable is down to the rather radical way in which Dublcheck structures its opportunities. “We’re not just selling franchisees places within a big territory,” says Stewart-Gill. “We’re actually sourcing contracts for them.” Operating national telesales and field sales teams in-house, Dublcheck allows franchisees to invest based upon how much business they require and guarantees them the exact number of contracts they need to run their franchise. “They can either come back for some more or, alternatively, we run sales courses to train them how to get their own contracts,” she says. As Stewart-Gill goes on to explain, if Dublcheck concentrates on connecting franchisees with a consistent stream of new customers, then those franchisees can focus on providing the best possible service to their existing ones. And it’s this that formed the inspiration for the company’s name. “It’s a ‘double check’ system,” says Stewart-Gill. “Franchisees check on the needs of the customers; we check on the needs of the franchisee.” But the support Dublcheck provides doesn’t stop at generating leads for its franchisees. As well as providing a comprehensive training package – covering everything from the practical skills to managing personnel and health and safety – the franchise also provides help with invoicing, credit control and payroll. “The help we offer is second to none,” Stewart-Gill says. “Our franchisees say that they can’t believe how much support they get.”

elitefranchise | January 2016

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24/12/2015 13:11

Celebrating 20 years in franchising gas-elec still holds the same attraction today as it did then

Jonny Butler (Lincoln)

Jonny Butler is gaselec’s newest franchi see. Jonny says “I wa a change of directio s a qualified gas en n, I was fed up with gineer and looking working on the big for website. My wife an bu ild in g sit es. I saw gas-elec on d I visited Carol Otw a fra ay nc at hise the company’s head regional manager do office and thought es all the sales and th is is fo r m m e’ arketing and books The installation last we the work. I compl ek and I have been et ed m y fir su st pp bo orted by the franchi iler am pleased I took th se team through th e plunge” ese early weeks. I

What you can expect from us... If you are gas and/or electrically qualified Work generated by your local office Our Bureau facility collects and allocates payments from clients Credit limits are set and credit control process implemented for all clients Regional management franchisee looks after sales and marketing A bespoke IT system to cater for all aspects of the business Payments made to all franchisees twice a month and VAT calculated for you Our franchisees are audited in the field by our technical experts Ongoing franchise support for all 100 franchisees

You h

a ve n othing t o lose…. but a n ew life to gain!!

www.ga s-elec.co.uk/f

ranchise

0 8 00 0 15 20 3 0

Celebrating 20 years!

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THE ELITE INTERVIEW

Stewart-Gill is keen to stress, however, that the assistance Dublcheck provides doesn’t necessarily just follow a prescribed formula. “It’s a very personal approach,” she says. “We’re there at the other end of the phone.” And, just in case a franchisee would rather speak to someone more on their level, Dublcheck also runs a mentorship scheme for franchisees, effectively providing them a buddy who can help guide them through the trials and tribulations of their first year. “You have a mentor who is on a par with you and you can just pick up the phone,” Stewart-Gill says. “It means you’ve got an ally there.” One of the real benefits of the support provided by Dublcheck head office is that franchisees running smaller operations can keep their outgoings relatively low. “Franchisees can operate from home, which means there aren’t many overheads to start off with,” Stewart-Gill says. However, once a franchise is up and running, it’s relatively trivial for a franchisee to take on more work and scale up their business. “You can purchase more contracts,” she says. “The guys who are running about £500,000 have now got offices of their own.” Given the strength of Dublcheck’s franchise model, it’s hardly surprising that it’s been a target for imitation. “There have been other 20

people trying to replicate what I’ve done with Dublcheck,” says Stewart-Gill. This less-than-honest competition made things harder for the business for a while and did slightly sour public perceptions of cleaning franchises. Fortunately, Dublcheck has managed to rise above this kind of behaviour and has seen off the pretenders to its throne. “We’ve come through all of that now and they’re no longer in the industry,” says Stewart-Gill. “We’re still here after 22 years.” Dublcheck has certainly flourished since it was first founded back in the early 1990s: it has amassed 120 franchisees across the UK and netted accolades such as a place on the Sunday Times Fast Track 100. But Dublcheck isn’t the only one receiving recognition: Stewart-Gill herself received the Woman of Achievement award at the North West Achievement Awards. There’s no doubt in her mind that women becoming high-profile success stories in the franchise sector can help others follow in their footsteps. “I’ve definitely inspired lots of other women to go into business,” says Stewart-Gill. She recalls an event where she had to get up in front of a group of about 100 women from around the world and speak about her experiences in business. “I was as nervous as can be standing up there,” she admits. “After that they were all queueing up and saying: ‘God, that was so inspirational’.” Both Dublcheck and Stewart-Gill have made their mark on the UK franchise industry over the last few decades and the latter is hoping that this expansion will continue apace. “The system is going wonderfully well in the UK,” says StewartGill. “We’re looking to do the same thing over the next 20 years; just keep growing organically.” But there are also much bigger plans afoot for the cleaning company. “The next step is to have a master franchise and start franchising internationally,” she says. Guiding the business through this next stage of development is evidently going to involve something of an adjustment for StewartGill. “I’m a grafter,” she says. “I started this business just knocking on doors. But it’s hard to let go of it because Dublcheck’s my baby.” Despite this, she recognises that she has a strong team behind her that she can rely on to handle more of the day-to-day runnings of the business, giving her more time to focus on the strategic direction of the business and enjoy a bit more leisure time. “I’m stepping back a bit,” she says. “That’s my new year’s resolution.”

We’re not just selling franchisees places within a big territory. We’re actually giving them contracts

elitefranchise | January 2016

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ADVERTISING FEATURE

Make a splash How running a franchise can fit around existing commitments and still yield a very healthy return

ini Swimming has grown from a small business into a widely recognised brand that parents trust when it comes to choosing a swim school for their baby or child. Bronwen Bew, Mini Swimming’s franchisee for South London, came on board with the still family run company in June 2013 and can look back on over two years of teaching. Her story highlights how easy it is to run a successful Mini Swimming franchise that works around other existing commitments. “Being part of the Mini Swimming brand is giving me a flexible business that I can shape around my life and one I thoroughly enjoy,” says Bew. ‘’I can honestly say that I am enjoying being part of the Mini Swimming success story. Ever since I came on board, I have had great support and can always ask the office staff for advice. Flying the Mini Swimming flag makes me proud to be part of the bigger picture and I can grow my own business using their established brand,

whilst benefiting and learning from their marketing expertise and customer service skills – with none of the usally associated costs. “I started off small with a very manageable investment and over the last two years have steadily grown the business to more venues, classes and a healthy revenue, with my year three turnover forecast at £140,000. My classes in South London have become so popular that I have had to hire teaching staff to support me – a sure sign that we are achieving our joint goal of growing both mine and Mini Swimming’s business. “What’s more, I have been able to secure new pool locations and have now got five pools in my area, offering around 80 classes per week. As I now employ two teachers, even that number of classes means I have time to do other things. “I find it very helpful that I can choose which hours I’d like to work, so my job remains rewarding and fits around my other commitments just right. I don’t teach every day which gives me sufficient time to deal with the admin side of the business and above all some free time, too.” Flying the Mini It’s crucial to Mini Swimming to recruit the right people into its franchise model. Of course, it needs Swimming flag to feel confident that each person fits in with the makes me proud Mini Swimming ethos and shares the same passion goals. But it’s also vitally important that every to be part of the and franchisee enjoys what they do, while feeling bigger picture appreciated and rewarded, not least financially. After all, only a happy franchisee is a good franchisee. That’s why Mini Swimming feels that its franchises offer great value for money. It’s not often you can remain flexible around say a young family but earn a substantial income at the same time. As Bew confirms, “I’m glad to say I have made the right choice in becoming a Mini Swimming franchisee and would urge other people to consider the great opportunities the model can offer.”

elitefranchise | January 2016

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Join the UKâ&#x20AC;&#x2122;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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ONE TO WATCH

Moving on up From humble roots to stateside success, Two Men and a Truck is now setting up home in the UK

elitefranchise | January 2016

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ONE TO WATCH

he last thing anyone wants when moving house or office is sloppy service. Thankfully, Two Men and a Truck has recently landed on British shores and is on a mission to take the stress out of removals. For anybody not familiar with the Two Men and a Truck story, it all began back in the early-1980s in Lansing, Michigan. “It literally started with two guys and a truck,” says Colm Hefferon, UK director for Two Men and Truck. “There were two brothers, Jon and Brig Sorber. In the summer, their mum Mary Ellen basically took an ad out in the paper and put them to work. The ad said: ‘Two men and a truck: available for whatever you need them to do.’” After her two sons left for college, Mary Ellen Sheets continued to get enquiries from potential customers. “She was still getting calls and decided she would get another two guys,” says Hefferon. “It started to go well so she bought another truck, then she bought another truck and it basically just grew from there.” What started as three branches in Michigan has since expanded into a franchise network spanning over 300 locations across the USA and Canada. The company’s first franchisee was Sheets’ daughter Melanie Bergeron and, as its growth started to ramp up, Jon and Brig Sorber

rejoined on a full-time basis. “When it got to about ten franchises, the guys got more involved and really helped grow and develop the franchise,” Hefferon says. Given the overwhelming success that Two Men and a Truck had enjoyed stateside, it seemed inevitable that it would soon look to take the concept overseas. It made Canada its first port of call before granting Hefferon the master licence for the UK and Ireland in 2007. Prior to that, Hefferon was a senior manager at Kefron, a family-owned self storage and removals business in his native Dublin. However, the removals side of the business was only introduced when the company acquired a shredding firm in 2006. Despite having no knowledge of the removals industry, Hefferon and his brother kept the business ticking over but they knew deep down it could be so much more. “It was a decent business and we were making good money but it was very old school in its approach,” says Hefferon. “We weren’t doing anything all that special or interesting.” It was while researching the removals market that Hefferon stumbled across Two Men and a Truck online. At the time, it was only advertising for franchises in the USA but, after reaching out to express an interest in bringing the concept to Ireland, Hefferon ended up with a little more than he bargained for. “They said they were really interested in developing their international business and that they’d like us to take on the UK and Ireland as a master franchisee,” he explains. Understandably, Hefferon didn’t rush straight into a decision. “We weren’t sold on the idea immediately,” he admits. “We went out there to get a franchise and here we were with a master franchise. It was pretty daunting.” However, such was the synergy between Two Men and a Truck and Kefron, it wasn’t long before Hefferon had signed on the dotted line. “They are also a family business and their core values were a very good match to ours at Kefron,” he says. “We are [also] a very customer-focused business and when we looked at Two Men and a Truck, there was a really strong focus on the people, on their training and on how they treat the customer. Its mission statement is to consistently exceed [your] customer’s expectations.”

WORDS: ADAM PESCOD

Ultimately we want to have a Two Men and a Truck in every city in the UK

January 2016 | elitefranchise

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ONE TO WATCH

That’s not to say that Two Men and a Truck was guaranteed to chime with customers on these shores. Like any American brand launching on this side of the pond, simply duplicating the US model in the UK would have been somewhat misguided. That’s why Hefferon used the company’s flagship operation in Dublin – as well as three pilot outlets in Chiswick, Windsor and Watford – to help ease its transition into Blighty. “Our challenge when we were promoting our franchise in the UK was that we did not have a UK presence,” says Hefferon. “So we essentially opened three corporate stores in and around the London area, ran them as pilots and then converted them into independent franchises.” Finding the right people to run these pilots was essential: as Hefferon explains, they were seeking individuals with commercial – but not necessarily removals – experience. “We wanted people with good business experience and good management experience because it’s a people-driven business,” he says. And, as demonstrated by Two Men and a Truck’s first three UK franchisees, any future recruits need to be fully behind the brand. “The guys who came on board [as pilot franchisees] just had this absolute belief in Two Men and a Truck,” he adds. “From a values perspective, franchisees have to be a Two Men and a Trucktype person.” Suffice to say, the performance of the pilot franchises has given Hefferon the necessary confidence that Two Men and a Truck can

That’s one of the great things about Two Men and a Truck: in order to grow, you just add a truck

replicate its stateside success in the UK. As he reveals, the way that Two Men and a Truck charges customers – as well as its strong focus on service – is already standing it in good stead. “Whereas other companies will charge an estimated lump sum, we charge by the hour,” he says. “This gives customers control and complete transparency over the cost, which they really enjoy.” Thankfully, it’s relatively easy for Two Men and a Truck’s franchisees to cope with higher levels of demand – the nature of the business means that expansion can happen at minimal cost to the business. “That’s one of the great things about Two Men and a Truck: in order to grow, you just add a truck,” says Hefferon. “You don’t need bigger premises, you don’t need to buy more stock, you don’t need more inventory.” With the added security of multiple income streams, including box sales and storage, the attraction for franchisees is evident. “In terms of numbers, it’s a high-margin, cash-rich business,” Hefferon adds. “It’s not just about moving people’s houses.” Despite this, Hefferon is keen to maintain a steady rate of growth, primarily to ensure that every franchisee has the best shot at success. “We don’t want to go too far too soon because we want to be able to support them, especially in the early days,” he says. The company is therefore aiming to launch six new franchises in 2016 and has a very clear vision beyond that. “Ultimately we want to have a Two Men and a Truck in every city in the UK,” Hefferon concludes. “There’s certainly capacity for at least 50 franchises across the country.”

elitefranchise | January 2016

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Do you have:

Energy? Drive? Enthusiasm? Take your first step to being part of a growing success story Ableworld, one of the UK’s leading mobility and homecare retailers, are looking to award a limited number of franchises for their successful retail and stairlift businesses. There are unstoppable demographic, economic and political forces driving the mobility and homecare industry forward. Just one example is that, according to government statistics, in 10 years time over 25% of people will be over 65 and the figures for those over 80 and 90 are even more striking. Ableworld’s products and services are designed to capitalize on this growing market and you can capitalise too, as an Ableworld franchisee. Franchisees will need: • Drive, energy and enthusiam • A customer service mentality • A passion for helping people • The desire to want to run their own business in a growing market Franchisees will get: • Two integrated businesses for one price • The opportunity of earning up to £95,000 p.a. by Year 3 • Use of the Ableworld brand in an exclusive territory • A first class training and support programme And much more...

overall investment level is £70-75,000 UP TO 70% FINANCE AVAILABLE 30 STORES NATIONWIDE

For more information call 01270 627 185 or visit www.ableworldfranchise.co.uk

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ADVERTISING FEATURE

The UK’s biggest franchise event For many of us, the thought of escaping the weekly nine to five is the stuff dreams are made of – no more early morning alarms, no more commuter traffic and no more office lighting

ver the last six years, The Franchise Show has helped thousands of people make their move into business, offering access to the very latest information and opportunities in this fastmoving industry. The Franchise Show represents the industry’s diversity to its fullest, continually delivering an event that puts visitors in front of a comprehensive exhibitor line-up of over 150 brands – including Anytime Fitness, Cartridge World, Coyote Ugly, Mac Tools and Snap Fitness – and at the heart of unparalleled information, opportunities and contacts, spanning every area of franchising conceivable. Investing into a franchise model can be the perfect fit: it’s all there, boxed up and ready to go. Indeed, if businesses came flatpacked from a certain retail giant that we’re not inclined to name, they’d probably look like franchises. Does the franchise that you’re interested in have a strong brand? Good processes? Is it an easily replicated model? Is it profitable? The Franchise Show will allow you to scope out the industry and process an abundance of information, leading to you make informed, educated decisions.

International opportunities High-investment, high-return opportunities are also available at The Franchise Show, offering visitors the chance to meet people who have successfully established master franchises. To complement the huge number of UK brands at the show, many international franchises will be present, all

looking for willing franchisees to take the reins of their concepts to the UK. As such, many of the international brands exhibiting at the show are not currently trading in the UK and are therefore offering the opportunity to acquire a master franchise licence. This provides you with the exponential benefits of being responsible for not just one but a whole network of franchises in the UK. There will be a number of great brands from the USA, Spain, Italy and the rest of the world looking for UK master franchisees at the event. These brands offer a unique and exclusive opportunity to bring a globally successful brand into the UK. If you think you have what it takes to do this, you can arrange a one-to-one appointment at the show. Or to discuss what’s involved, please call 0800 1577950.

Seminars Via a series of 30-minute seminars delivered by the most respected and experienced professionals in the industry, The Franchise Show will provide you with the answers to all of your burning questions. Each free seminar focuses on a different franchise sector; starting with a brief introduction to franchising, the seminars look at the characteristics of the industry, investment levels, expected return, skills needed, the common pitfalls and the dayto-day operations. Where better to make a start in the franchising world than at The Franchise Show on February 19 and 20, 2016 at ExCeL London? To register for your free ticket, call 0800 157 7950 or visit www.thefranchiseshow.co.uk

elitefranchise | January 2016

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Dreaming of...

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ANALYSIS

THE RIGHT TOOLS FOR THE JOB Making the move into franchising can be an easy decision for business owners looking to ramp up their company’s growth. But it often means adding a few new skills to their repertoire

hen getting ready for franchising there are plenty of things that a budding franchisor has to consider. How replicable is their business model? Have they thoroughly checked the financials? Is the franchise agreement watertight? But one thing that is often overlooked is how the skills required by franchising differ from those needed to start and run a business.

WORDS: JOSH RUSSELL

Priming the pump

One of the first skills involved in franchising is knowing the right time to enter the sector. “We originally looked at franchising in the early 2000s and, at that time, it just wasn’t right for us at all,” says Martin Wood, managing director of Prima Ardelle, the recruitment franchise. However, after 2008, this all changed; contrary to what one might expect, the company thrived in the post-recession climate and remained very profitable. This

elitefranchise | January 2016

convinced the founders that the model was robust enough to begin franchising. “We knew we could replicate the way that we operate,” Wood says. Having already enjoyed a lengthy heritage with a non-franchised enterprise before getting involved in the franchising sector, Wood is certainly in a position to appreciate the different skills required by the two models. “When growing a traditional business, you need to know your product or service inside out,” Wood says. “And it has to perform a function within the marketplace; you have to be able to sell it.” Essentially, startups need to concentrate on providing something that occupies a unique space and stands out from the crowd. This productfocused approach naturally favours more complicated concepts and allows increasing levels of sophistication to be added to a product or service as time goes on. Conversely, franchising requires an ability to reduce a business model to its most

ANALYSIS

fundamental, streamlined form. “You need to remove any grit from the gearbox,” says Wood. “It needs to be really fluid.” Given that a franchise network will inevitably be composed of people with all kinds of backgrounds and experience levels, a knack for reducing a complicated concept to its most basic elements can prove invaluable. “If you can’t replicate it for a broad spectrum of people, you’re just not going to be able to do it,” Wood continues. Adapting from one approach to the other won’t always be the easiest of transitions but it’s worth remembering that you don’t have to do it alone. “You need to outsource your non-core competencies,” says Wood. “That’s really important.” Seeking help in key areas that you are less experienced in will not only help shore up any skills gaps that you might have, it will also help you smooth out the rougher edges in your model. However, Wood warns against assuming external consultants will do everything on your behalf. “Nobody really knows your business as well as you do,” he says. “The only person that can make it happen is yourself.”

Balancing act For Sarah Owen, developing both her professional skills and her business has been a very organic process. She first came up with the idea for Pyjama Drama, the kids’ drama-class franchise, when doing performance activities and making up games and songs with her children. “I just thought: ‘I wonder if I could do a class like this?’” says Owen. Before long she had set up classes at the local leisure centre and at several nurseries, giving up her job as a high-school drama teacher to run the business full-time. Four years later, when her youngest child started school, she resolved to start ramping up the business. “I decided to give it a go and see what happens,” Owen says. “So I sold the first franchise to one of the mums who’d come to my classes.” Building a company for the first time, whether it be a startup or a franchise, involves picking up a whole host of skills. And this is something that Owen knows all too well. “For me personally, it was a massive learning curve,” she says. “I had no experience in business before and January 2016 | elitefranchise

ANALYSIS

certainly had no experience in franchising.” However, she quickly found that the most important skills for running a business were those that help you innovate and identify new opportunities or keep things together in difficult circumstances. “You have to be incredibly tenacious, able to think outside the box and willing to accept risk,” says Owen. She maintains that there is a definite overlap between the skills required for traditional business and those needed for franchising. “They rely on very similar skills,” Owen says. But whilst she believes that typical entrepreneurial traits like tenacity and drive are just as important in franchising as they are elsewhere in business, she warns against being too autocratic when building your franchise. “You’ve got to have the self-belief to make your own decisions but try not to be arrogant,” she says. “Be willing to listen and take other people’s experiences on board.” This is one of the real strengths of a franchise: you have a network of partners that can provide valuable input when you need a second opinion. “In our franchise, if we have to make certain decisions, we will very often give our franchisees a vote,” says Owen. “That can be a massive source of support because you’re not just relying on your own opinion.”

A game of two halves Having been at the head of both a traditional startup and a franchise, Robert Oyston, managing director at Sports Xtra, the children’s activity franchise, is well aware of the skills that each require. His journey started when he began coaching football in the US whilst at university. “I saw the

You’ve got to have the self-belief to make your own decision but try not to be arrogant Sarah Owen, Pyjama Drama

high level of coaching that was being delivered over there,” says Oyston. Not only was there more of a focus on quality stateside but there were also far more services focused around younger age groups. This inspired Oyston to start Regional Sports Schools, his own coaching company, in the UK. “We started with nothing – no brand, no processes – to begin with,” he says. “We had to create all of that ourselves.” Outside of the industry-specific skills an entrepreneur might require, Oyston believes there is a universal skills palette that will always assist in building a thriving business. “Discipline is key, as are drive, tenacity and organisation,” he says. “Then you need the creative element to be able to create and put the right processes in place.” While these skills help lay the foundation for a business, marketing expertise and an eye for providing a quality service, product or experience prove invaluable in growing a company’s profile. “The thing that grows your business is providing customers such a great experience that they return with their friends,” he says. Certainly these skills set Oyston and his business in good stead; by 2011, Regional Sports Schools was operating in Cardiff, Oxford, Swindon and London, setting the stage for its acquisition by Sports Xtra. “It’s founder Gareth [Lippiatt] had spoken to us about franchising and it was just a very good fit,” says Oyston. Part of this was down to the fact that both companies were exploring ways to encourage the involvement of kids who otherwise might not participate in sports, offering activities such as spy, detective and adventurer activities. “It was just in line with the direction of our business,” Oyston explains “That’s when we became shareholders and I became managing director of Sports Xtra.” Finding himself in a senior position at the head of a major UK franchise meant that Oyston quickly had to adapt his skill set. “I’ve learnt more getting involved in franchising than I did in all of the years that I was running my own business,” he says. However, he found that the main difference was in degree, rather than kind: the most important skills, such as consistency and an ability to manage the needs of stakeholders, are cross-transferable. “They’re skills that you would need in a business anyway but you just need to have a real focus on those as a franchisor,” he says. “Much more than you would in a standalone business.”

elitefranchise | January 2016

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Join one of the fastest growing lawn care franchises in the UK Training from a lawn care expert with over 30 years’ experience within the industry A territory with a minimum of 100,000 households Full business planning support Repeat business Opportunity to employ staff you trust Professional support from a franchisor with over 55 years’ experience Support from an award-winning marketing team Opportunity to grow a multi-van business

INVESTMENT FROM £24,995

“The level of knowledge and expertise the brand manager, Steve Welch has on lawn care is second to none.”

“Since starting my business in February 2015, customer acquisitions have exceeded my expectations.”

Martyn Horton TruGreen East Hertfordshire and North Essex

Mike Lethbridge TruGreen Newbury and Basingstoke

“Lawn care is quite a technical business, so it was important that I had the right backing, both technically and through a recognised brand.”

“Never short of a telephone conversation, email response or personal visit from a member of the TruGreen management team.”

Karen Burdett TruGreen Milton Keynes and West Northants

David Inglis TruGreen Edinburgh South West

T: 0116 275 9005 E: franchisesales@servicemaster.co.uk W: www.trugreenfranchise.co.uk/elite

PROVISIONAL

/TruGreenUK

sm_franchises

/company/servicemaster-limited

Fosse Healthcare Franchising

Are you ready to run a fast-paced and exciting franchise?

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Call us today on 0116 402 7199

Healthcare Staffing Support Agency 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 Fosse DPS.indd 2

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INTERNATIONAL

A job well done

WORDS: ADAM PESCOD

Antal International has proven that recruitment and franchising can go hand-in-hand. And on a truly global scale

alent is an invaluable asset to all companies, which is why many enterprises enlist external agencies to help source the best people possible. And, ideally, they’ll be looking for a recruitment partner with international pedigree. Suffice to say, this is something that has stood Antal International in good stead for the best part of 23 years. The company was founded in 1992 by Tony Goodwin who, after a spell as an accountant, saw a gap in the global recruitment market. “He noticed that the multinationals he was working with did not have a recruitment company supporting their needs in Eastern Europe,” explains Doug Bugie, president of Antal International Network, Antal International’s franchise division. Goodwin launched his new venture in Budapest, with its name deriving from the Hungarian word for Anthony. And it wasn’t long before the company established a strong presence in the surrounding region. “He was one of the first people over the horizon and ended up building what is now, in Russia and Poland, far and away the largest recruitment company,” says Bugie. “That platform became the springboard to come back west.” By 1997, the company was operating in the Netherlands, Germany, Switzerland and Italy, with a headquarters in London. As Bugie explains, the British capital was Antal’s natural home. “In our business, London is the place to be,” he says. “It’s the key city in the world for recruitment.” In the space of ten years, Antal had built up a thriving network of offices that stretched from London all the way to China, Singapore, Japan and Taiwan. Confident that his business model translated

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INTERNATIONAL

Doug Bugie president, Antal International Network

We give them the structure and knowhow and they translate that into their own culture

Tony Goodwin founder, group CEO and chairman, Antal International

well in all corners of the globe, Goodwin decided it was time to ramp up the rate of Antal’s growth. By this time, his attention had already been piqued by another company operating in the executive-search space, which was headed up by Bugie and serial entrepreneur James Caan. Launched in 1992 – the same year as Antal – Humana International grew rapidly to 130 offices across 24 countries before being sold in 1999 to CDI Corp, the parent company of the recruitment giant MRI. It was Humana’s growth strategy that caught Goodwin’s eye, not least because it was unheard of in the recruitment industry at the time. “As I travelled around the world, I had seen that there was an opportunity to franchise the business of recruitment,” says Bugie. “Nobody had ever done it outside the US and James [Caan] thought that was a good idea too. Brick-by-brick, we built it up until it started gaining its own momentum.” Needless to say, Goodwin wanted a piece of the action. “He liked the idea of it, he saw it was working and he’s the kind of guy who, when he sees something good and it’s in his wheelhouse, he wants to try it,” says Bugie. “And he did: he made a serious investment in franchising Antal and never stopped.” However, having never franchised a business before, Goodwin needed some experienced hands on board. And where better to turn than the company that had inspired him to franchise in the first place? “He managed to attract some key people from [what became] MRI and one of them was my top salesperson,” Bugie laughs. Five years later, Bugie himself came on board to help propel the franchise’s international growth. “I liked it so much that I thought ‘this is great – I am going to get involved with this company,” he says. The Antal network now spans 130 offices in 34 countries but, unlike the growth strategy adopted by other international franchises, it doesn’t sell master licences for individual countries or regions. Instead, Antal franchises are sold directly by its teams in Mumbai, Frankfurt, Dubai and London. “They know how to sell them, train them and support them but they’re not masters,” explains Bugie.

“They have made a lot of money as individual franchise owners and we have liked them enough that we have offered them a deal to come into the bigger picture.” As one would expect, Antal’s franchisees are cut from a similar cloth to the people they are trying to source for their clients. “They are normally white collar professionals who have probably been earning between £60,000 and £150,000,” says Bugie. “They like the kinds of industries they have been involved in and don’t want to leave them.” And while only 2% of Antal’s franchisees have a background in recruitment, the investment that the company makes in training and ongoing support means it can get anyone to the required level with ease. “Our philosophy is to reinvest the entire franchise fee in the training,” says Bugie. This is backed up by the knowledge that each franchisee has of their respective territory, which helps localise Antal’s offering to each and every country it operates in. “We give them the structure and know-how and they translate that into their own culture,” says Bugie. It all adds up to a service that is almost identical wherever it is found. “The differences between how this business is done in the Ivory Coast, Paris, Madrid or Shanghai is five degrees of separation,” he adds. Having launched 27 new franchises this year, Bugie is targeting a further 45 in 2016. It comes after a successful rollout across China and India – where it is now a market leader – reflecting Antal’s strategy of targeting the fastest-growing recruitment markets first. “If you had to pick places in the world where recruitment is really going places, you are going to concentrate more on China and India than you are on Brazil,” says Bugie. “[That’s why] we are only now starting to advertise in South American countries.” It’s evident that franchising has worked wonders for Antal International. And, with more countries on its radar, it looks like it will have the world at its fingertips for years to come. “We have got a great pipeline and a lot of confidence,” Bugie concludes. “The planets are aligning for this industry and, I’m pleased to say, for us.”

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

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

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

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

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FINANCE

The future of franchise funding There was a time when banks were the only port of call for franchises looking to borrow. But things are very different in the post-recession era, says Alex Littner, managing director of Boost Capital 40

here are many myths that swirl around franchising: only big-name franchises are worth the investment; buying into a tried and tested formula always ensures success; and franchise funding is impossible to find. In truth, opportunities exist in lesser known franchise systems; any enterprise can fail without hard work and business know-how; and growth finance is available for franchisees if they know where to look.

Small business lending on the up Given the Funding for Lending scheme makes it easier for banks to lend to smaller businesses, its extension until January 2018 is a positive sign for capital-hungry SMEs, including franchises. Likewise, figures from the Bank of England showing that loans to small firms have increased by ÂŁ2.1bn to October 2015 can only be welcomed. However, this is still far below the levels of lending to small companies before the recession, with franchisees among those to be hit hard by the tightening of credit by the big financial institutions.

Frustrated potential Detail about the impact of the economic slump on UK franchisesâ&#x20AC;&#x2122; borrowing behaviour is hard to find. But where the US leads, we tend to follow and, in 2013, the amount of borrowing available in the States was only about 10% of what was needed by franchises, according to the International Franchise Association. Ironically,

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this negative lending pattern coincides with a period when franchise numbers have boomed, since periods of rising unemployment typically see more people considering business ownership via franchising. In Britain, the franchise industry’s contribution to the economy grew by 20% between 2008 and 2013 when the overall economy shrank by 2.5%. Demand for lending by franchises inevitably rose at the same time, although this need for finance has too often been frustrated.

Limiting debt limits growth This bias seems unjustified since franchise businesses have a better than average chance of making money: according to the British Franchise Association, almost half are quite or very profitable and 92% are at least marginally in profit. As a lender, we tend to favour those industries that are well-populated by franchise operations and which many conventional lenders snub as being too risky. These include food and hospitality, automotive, and the services sector. Businesses that operate as franchises in these less popular fields can find themselves doubly disadvantaged, even when approaching banks with specialist franchise lending teams. Since these enterprises’ opportunity to borrow has been restricted, so has their ability to expand or hire, and some have been forced to downsize. Against this gloomy backdrop, some business owners’ attitudes towards borrowing have also suffered. The latest SME Finance Monitor from BDRC Continental shows that about half of all SMEs qualify as ‘permanent non-borrowers’, shunning any form of credit. This increasing fear of debt really matters, since evidence has repeatedly shown that under-capitalised companies not only grow less quickly and can be overtaken by competitors but can also be in greater danger of collapse.

The changing lending landscape

Business owners should not be put off their expansion goals from fear that finance will be out of their reach – or fear of borrowing itself

But there are reasons for hope. Most notably, more SMEs are learning that new sources of funding do exist, including alternative finance providers. This new breed of lender has grown out of the recent funding crisis and has been fuelled by the development of digital platforms that are open to all, as well as algorithms enabling speedy decision-making on loan applications. Since the banks have curbed their appetite to lend, others have emerged to fill the funding gap and the nature of business finance has been changed irrevocably in the process. In recent years, funding choices have proliferated for those running franchises. Some will still look to their bank first, while independent specialist franchising lenders are also practised in helping those in the industry. Asset finance and leasing arrangements are other 42

familiar ways for franchisees to invest in their operation. However, innovative alternative funders are on the rise. For example, as indicated by the SME Finance Monitor, more than a third of small or medium-sized businesses seeking borrowing has heard of crowdfunding. This reflects a growing awareness of alternative finance among business owners and franchisees, as small firms discover the possibilities offered by peer-topeer borrowing, invoice finance and short-term, unsecured lenders.

Greater choice boosting confidence

Franchise businesses need money for many things, whether that’s investment in the franchise licence, startup expenses including stock, marketing and recruitment costs or extra working capital to survive the early months. All of this comes before the business seeks finance to implement any serious growth plans. It’s worth emphasising that there are lenders and finance providers that do want to do business with franchisees in these positions. Business owners should not be put off their expansion goals from fear that finance will be out of their reach – or fear of borrowing itself. Franchising can be a route to business success but it requires investment, which typically means debt of some kind at certain points in a company’s life. But debt in itself is not a bad thing if chosen wisely and the good news is franchisees have more choice today in terms of funding options than ever before. And that’s not a myth; that’s reality.

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ADVERTISING FEATURE

Home Sweet Home Kev Popat, managing director of Right at Home Solent, explains why the franchise was the right choice

was brought up in a joint family home and spent most of my early years with my grandparents. I have so many fond memories of these initial years. Imagining my Gran receiving care from someone who has no interest in her is the reason I’m here today. My wife Amy comes from a family of entrepreneurs. We both had great jobs, but after a few years in the corporate world I believed we had gained enough experience to start a successful venture of our own. A family member suggested the care industry, and going through the various websites and articles, I remembered how upset my family were at the poor care my Grandad received when he had a stroke. Amy and I began to feel that this was something that we could perhaps do ourselves – provide a great service that we would be happy to offer our

own families. We called a lot of companies and couldn’t believe how much they all sounded the same! Initially they all talked how much they cared, yet it became clear they weren’t actually focused on quality of care at all – just growth for the company. It was on a visit to the National Franchise Exhibition that we found Right at Home. They were exactly what we were looking for. The entire ethos of the company matched ours; believing that quality of care came first every time. They clearly demonstrated that they weren’t just paying lip service – striving for excellence was non-negotiable and they weren’t interested in giving a franchise to anyone who wasn’t on exactly the same page. There is so much to learn and so many regulations to comply with that I simply don’t

see how someone could do this successfully on their own. Right at Home is an industry leader and they work around the clock to make sure they are not just on top of changes in the industry, but also shaping them. With them behind us, our team can concentrate on what we are here to do – provide a phenomenal service to our clients, one our families can be proud of, and to run the most professional business we can. There is no better feeling in the world than making someone’s day; the team we are putting together will be making people’s days, every single day. If you would like to learn more about becoming a franchise owner with Right at Home, please contact Kate Dilworth on 07825 047344 or email kate.dilworth@rightathomeuk.com

Run a business that makes

a real difference

in your community

Right at Home provides top quality home care services to support people to live independently in their own homes. Our services range from weekly companionship, shopping and household support visits to complex 24/7 personal care needs. We differ from other homecare companies in that our minimum visit time is 1 hour, our carers don’t wear uniforms, we carefully match our clients to carers and are happy to go the extra mile to help make their lives easier. Why join the Right at Home UK franchise? • Fast-growing, recession-resilient market which cannot be overtaken by technology • Well-established international company (400+ offices on 5 continents) • 30+ UK offices and fantastic territories available in all regions • We are a company that looks after its franchisees, with a BFA award-winning managing director • Identified by the bfa as Emerging Franchisor of the Year 2014

Initial franchise fee: £31,995 +VAT. Working Capital is also needed – total investment up to £120,000 For further information please enquire via www.rightathomefranchising.co.uk or call 07825 047344 or email kate.dilworth@rightathomeuk.com

January 2016 | elitefranchise

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SALES & MARKETING

Finding your voice Public speaking isn’t just about putting a face to a brand – it is also one of the best ways of delivering your vision to franchisees and customers alike

WORDS: JON CARD

he ability to speak well in a crowded room is an essential skill for any serious business owner. As a marketing method, it’s one of the cheapest available and can be very effective; people buy from people and there’s no better time to make a connection than when you’re face-to-face with a potential franchisee. And, whilst not everyone is a natural public speaker, those of us who are on the shy side can still learn how to deliver a good speech or presentation. Effective public speaking can certainly be a major driver of sales in the franchising industry. It’s a great way to promote one’s brand and helps ensure key messages reverberate consistently among staff and out to customers. Steve Bramley is head of support at Rainbow International, which provides specialist commercial cleaning services and restoration work and has clients in the public sector and insurance industry. Bramley has spoken at numerous franchise events for the business over the years but now mostly speaks at company events and training sessions. He says these events are critical for ensuring the company is operating as it should be. “As a franchisor, you want to be sure that what you are offering clients is the same, wherever you do it,” says Bramley. “Public speaking for me is often about delivering key messages, vision and strategy.” Bramley is currently preparing for his company’s annual conference, where he hopes to provide a new impetus to the network and ensure consistency in sales messages and delivery. He says the most important thing for a public 44

The worst thing to do is be too formal or read from a script Rachel Ray, Bright & Beautiful

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SALES & MARKETING

speaker is to be interesting, adding that PowerPoint slides full of written information are a turn-off for any audience. “You need to understand your audience,” he says. “By making it interactive, it will make it more interesting for the audience and will ideally make them do the thing that you want them to do, whether that’s buy your product or invest in a franchise.”

Public speaking for me is often about delivering key messages, vision and strategy Steve Bramley, Rainbow International

Recruiting One of the main uses of public speaking is to recruit potential franchisees who may attend conferences and events. Rachel Ray is the founder and owner of housekeeping service Bright & Beautiful, which began operating as a franchise in June 2010 and now has over 50 territories across the country. Ray often uses events and conferences as a way to find new franchisees and runs ‘discovery sessions’ where she talks about how the business works. “I present at a lot of discovery sessions where people who attend are interested in our franchising opportunity,” says Ray. “You need to understand your own goals and the expectations of the audience and make sure you are fulfilling both. My objective is to communicate effectively the value of the franchise to potential franchisees.” Ray hones down her talks to a series of easy-tounderstand messages. However, she also tries to relax and be herself and advises against being too corporate or formal. “You need to be succinct but also be yourself,” she says. “It should be a conversation so I would recommend having bullet points but then doing some ad-libbing in between. The worst thing to do is be too formal or read from a script.” Understandably, the audience will come with questions on their minds at such sessions. She advises speakers to always schedule the Q&A section and to inform the audience of this in order to avoid interruptions. “I think it’s important to tell the audience that there will be a specific time for questions,” she says. “By the time I have finished speaking, I hope to have answered 95% of them.”

The greater good Franchisors will always want to advertise their businesses and make connections. However, it is often advisable to adopt a less acquisitive approach at events and instead aim to help others in industry, network broadly and avoid the hard sell. Ray speaks at a range of events each year to both promote her business and contribute to discussions and activities within the franchising industry. These include British Franchise Association (bfa) events. “I am always honoured to speak at a bfa event,” says Ray. “It’s not always about promoting the business: you can go to talk about best practice with other franchisees and learn from others too. It’s a great industry and it’s important that franchisors share best practice.” 46

Speak easy

Toby Buckle of the Brighton Leadership Project has worked with leaders in major organisations on key business skills. Here are his top tips for public-speaking success: 1 Know your audience – Put yourself in the audience’s shoes and work out what is most important to them. 2 Use the magic number three – Start your presentation by outlining the three reasons why what you are about to talk about is important. Then deliver your presentation in three distinct chunks. 3 Work on timing – Most people try to get too much into their talks and they either become boring or run out of time. Time yourself practising the speech and allow time for questions. 4 Calm yourself – Get yourself in the right state by breathing in while counting to six and then out again for six. Feel your feet on the ground and loosen your jaw. 5 Tell them a story – Stories help to hold attention and people relate to them. So think about how you can tell your business’s story in a way that people will enjoy.

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A franchise that’s right behind you Helping you to realise your dream and secure your future.

We will help you build and run a profitable business, using a proven model in the still new and growing industry of outsourcing. A franchise where you employ others to do valuable work for both large and small businesses. You will grow as your client portfolio expands, leaving you free to pursue your goals and dreams.

Benefits:

• Keep your costs to a minimum while helping you grow • Limit the time you spend on operational matters that hinder growth and profitability • Help you establish a business, not a job, that runs itself when you’re not there • Create an asset that you can use to support your lifestyle or sell on when the time is right

So .... What are you waiting for?

Call 01279 276200 and ask for Alan or Kaye email alan.hopgood@zebpa.co.uk Zeb PA Dec15 FP.indd 1

www.zebpafranchise.co.uk 03/12/2015 15:23

The Interface Financial Group An ‘in-demand’ Financial Service

Low Capital Start-up

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rules of engagement

PEOPLE

Research shows that an engaged workforce contributes greatly to business success. Thatâ&#x20AC;&#x2122;s why franchises should put their people first, says Annabel Jones, HR director at ADP UK

he importance of employee engagement should not be underestimated. When employees feel enthusiastic and committed, they are more likely to be productive at work. In fact, research has shown that highly engaged employees are a key contributor to greater business success, generating 26% higher revenue per employee. Organisations across the globe are striving to ensure their employees are as happy, healthy and productive as possible. Encouragingly, a recent study by ADP found that over half of UK employees are feeling highly engaged in their organisations. So, how exactly can franchises create a company culture that promotes employee engagement?

Striking a balance The ADP study also found that, aside from pay, obtaining a good work-life balance is the top motivating factor for employees. However, research from EY shows that nearly half of managers across the globe are working more than 40 hours per week, with four in ten saying their hours have increased over the past five years. This could contribute to well-being issues among staff, leaving them feeling discontented and underappreciated at work. In such instances, employees often become less productive and may even look to work elsewhere. January 2016 | elitefranchise

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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

Contact our franchise sales team for more information: Phone: 01423 878 528 Email: franchise@cartridgeworld.co.uk www.cartridgeworld.co.uk/franchise

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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.”

23/12/2015 11:15

PEOPLE

In an effort to achieve a balanced working life, 29% of employees say they would like to work where and when they want, while 37% are hoping to obtain a totally flexible working pattern. In an increasingly mobile world of work, we can only expect the popularity of flexible working to increase, accelerated by the need for businesses and teams to be connected from anywhere at any time. In the franchise industry, this is an increasing trend, particularly for international franchises. For example, franchise owners and employees in different countries may be expected to communicate with one another on a regular basis, making the ability to work flexibly and across differing time zones even more important.

Reward and incentivise While pay and benefits are a key incentive for employees, franchisees should consider the compensation preferences of their workforce. Interestingly, a quarter of UK workers say they would like to receive benefits that look after their long-term financial welfare. While auto-enrolment in a pension is being introduced to UK businesses, franchises need to ensure they are prepared to comply with the changes and understand how they can best contribute to this critical aspect of employeesâ&#x20AC;&#x2122; longterm financial security. Franchises could also look beyond purely financial benefit schemes to further support engagement. For example, whilst childcare vouchers may appeal to some employees, car allowances may be an attractive option for those who travel long distances to work. Franchisors can play an important role in educating franchisees about

Employee engagement really is the backbone of a happy, productive and profitable workforce tailoring their benefit schemes to align with employee needs and the different options available. By doing so, franchisees can help their workers feel more valued and consequently more engaged in their roles.

Mitigate stress Whilst healthy amounts of pressure can be dynamic and stimulate productivity, too much stress is likely to have the reverse effect. Currently, a worrying 39% of UK employees feel that they experience stress fairly or very often. When employees constantly experience such high levels of stress, this can become counterproductive, harming their overall performance and commitment to the business. In an increasingly demanding world of work where many employees find themselves working beyond the traditional nine to five, mitigating workplace stress becomes an ever more important factor. However, it is concerning that 21% of the European workforce currently feels that their employer does not help them manage stress at all. Franchises need to be aware of the situation and work to reverse this trend by proactively monitoring stress amongst employees and offering them support should workloads become too heavy. Regular check-ins with staff can be made part of the franchise culture, as well as a clear organisational structure that enables fair and balanced delegation of tasks among colleagues. These types of solutions are easy to implement and enable businesses to share responsibility and mitigate stress more efficiently. In addition, such tactics can strengthen the relationships between employees and their senior peers as they will know that the support they need is always there. Employee engagement really is the backbone of a happy, productive and profitable workforce. Thatâ&#x20AC;&#x2122;s why the importance of creating a workplace that is full of enthusiastic and committed employees cannot be taken for granted. Whilst franchisors can instil plans and initiatives to cement employee engagement into the company culture, franchisees need to take the lead in implementing these strategies into the wider business. When both the franchisor and franchisee do their part in building and sustaining employee engagement, they can maximise their chances of growing a happier and more engaged workforce, enabling them to benefit from their greatest asset: their people. January 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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TECHNOLOGY

With technology advancing at a rate of knots, it’s hard to keep track of what’s hot and what’s not. That’s why we’ve gathered some of the industry’s best to run through the tech trends that franchises can’t afford to ignore this year

Top tech for 2016

echnology is now a key part of any business and the franchise sector is no exception. Without a doubt, those businesses that deploy the right technology gain an edge over the competition. So what are the key technologies and trends that will help franchises succeed in 2016? Here’s what the experts think.

Cyber-security and the Internet of Things

WORDS: JON CARD

Robert Arandjelovic, director of security strategy EMEA, Blue Coat Systems Unfortunately, when it comes to cybercrime and hacking, it’s likely that 2016 will see a continuation of the trends of last year. In fact, many businesses are becoming desensitised to news on data breaches. A survey from CyberEdge last year found that 52% of organisations expected their networks to be compromised this year. However, while we’re in tough times, I’m hopeful that we’ll arrive at a turning point in the near future. Cyber security is already moving up the agenda to the boardroom level as an area of significant business risk. Furthermore, new legislation in Europe,

such as the General Data Protection Regulation (GDPR) and the Network and Information Security (NIS) Directive, should help push organisations further towards prioritising and formalising their response. Hackers tends to target the weakest link in networks, which means franchises need to shore up their defences. Basic things like enforcing a minimum standard of cyber security and auditing external points of entry to their network and systems are key. The importance of security only grows with the rapid growth of the Internet of Things (IoT). While IoT presents plentiful opportunities to franchises, there are also significant and unique security risks. IoT devices themselves are fundamentally different from what IT security infrastructures have had to deal with in the past. They serve different purposes and have different physical characteristics than traditional computers. They are typically mobile and this makes them harder to maintain in a secure network. This means a new approach is required. For me, one of the big developments of 2016 will be how cyber security makes IoT a safer bet for businesses. Companies that become successful in using IoT will be those that manage to create a really useful product and ensure its overall security. Ultimately, security cannot take a back seat with the growth of IoT and that gives franchises a lot to think about in 2016. January 2016 | elitefranchise

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TECHNOLOGY

Big data and visualisation Clement Levallois, assistant professor, EMLYON Business School The transparency of big data will have a telling impact on franchises in 2016. Big data has been around for years but we still struggle to present data in an effective and clear manner. The increasing development of smart devices will increase the amount of data available to marketers, so having a clear way of communicating and presenting this data will be even more important. Of particular interest to franchises will be textual data, such as customer reviews on Amazon or comments posted on a company’s Facebook page. Such information is of great value to consumer-facing businesses but only if they know how to interpret and use it. Franchises will have to create new teams with skill sets to take advantage of this trend. Firstly, they will need to consider employing the services of statisticians and mathematicians who will be able to analyse the data. There’s also a greater requirement for companies to have a team of ‘hackers’; computer engineers capable of coping with big and unstructured data. Thirdly, ‘domain specialists’ will be able to translate what the data means in business terms and come up with ideas for the business based upon it. The best teams might even encompass a fourth role in the shape of a designer who can assist in speeding up the exploration of datasets with visualisations before presenting them to the management team in a compelling manner. Targeted advertising is likely to remain the primary use of this data. This is because developing more personalised and effective advertising is a key strategy for franchises. But there will also be more developments in dashboarding in 2016. This means fewer pie charts and more customised graphics and enhanced interaction.

Wearable technology and robotics Dr Peter Chadha, CEO, DrPete Technology Experts Automation and smart technology only looks sets to grow in 2016 and the growth of cardless payment technology will further hasten the demise of cash. Elsewhere, robotics will provide the underbelly of resource that economically successful societies have enjoyed from the times of the slaves in Egypt and Rome to the machines and computers of recent times. Robotics can help franchises maximise the value of their 54

Robotics can help franchises maximise the value of their people by letting them focus on where they add value Dr. Peter Chadha, DrPete Technology Experts

people by letting them focus on where they add value. While it is still early days for many, sectors such as financial services, online gaming and gambling are already looking into this and applying it. Wearable technology is also growing on a daily basis, not just with technophiles but with later adopters such as stay-at-home parents who desire a healthier lifestyle. These groups are finding the technology reasonably easy to use as much of it combines with their smartphones apps, meaning they aren’t put off by the techie stuff. Wearables enable users to receive message and prompts without reverting to their phone, thus making it a lot more discreet. They also have the ability to monitor activity, which has big implications for business. However, for any franchises considering how to make use of wearables in the workplace, it is vital to think about the human beings that they are designed to help. Especially if the aim is to improve productivity, it’s important to consider the ethical issues at play before deciding whether wearables really are the best solution.

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Over 44,000 stores in more than 110 countries worldwide

This is your chance to get on board with the

Number One Franchise Opportunity! *

2 Outlet opportunities currently available 2 Low cost, simple operation 2 20 franchisee support offices throughout the UK and Ireland

2 70% of franchises purchased by existing owners

We’re celebrating! Over 2,000 stores

now open in the UK and Ireland

To find out more visit

www.subway.co.uk/business www.subway.ie/business or call 0800 085 5058 (UK) 1-800-413-076 (Eire) *SUBWAY® is the number one QSR brand by total store count (as at January 2015). ©2015 Doctor’s Associates Inc. SUBWAY® is a registered trademark of Doctor’s Associates Inc.

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LEGAL

Watch your step Don’t let legislation knock you off your feet: sidestepping these common mistakes can stop you from getting into an awkward legal wrangle

ranchising can be an excellent route to grow your commercial empire, entailing fewer risks than those involved in building a traditional business. However, this is not to say that franchising is without its fair share of statutory snares; ensuring that you don’t fall foul of any regulatory pitfalls is absolutely critical to a successful franchise story. That’s why we’ve assembled a crack team of lawyers to help you navigate the hazards that come with franchising a business.

WORDS: JOSH RUSSELL

Ignorance of the law is no excuse Perhaps one of the most important steps for any business that is getting into franchising is familiarising itself with the various pieces of legislation that apply to the sector. “There is no franchise-specific legislation in the UK,” says Gordon Drakes, senior associate at Fieldfisher. “However, the general principles of contract law still apply to franchise agreements.” One example he gives is that of UK and EU competition law. “Many businesses that are looking to franchise for the first time do not always appreciate the impact of competition 56

law,” Drakes says. Common mistakes include attempting to dictate the prices at which franchisees can sell their products or services or prohibiting them from selling online. And whilst these mistakes may be easy to make, they come with harsh consequences. “Franchise agreements that do not comply with competition law may be unenforceable, either in whole or in part,” he says. “[And] a non-compliant franchisor may be liable to hefty fines or even imprisonment for its officers.”

Disagreeable terms In legal terms, the franchise agreement is the foundation upon which an entire franchise operation rests. “You will be licensing your intellectual property rights and system to a franchisee as well as divulging substantial know-how and information concerning your business,” says Emily Sadler, solicitor at Paris Smith. “You will therefore want to ensure that your agreement is robust.” Having an airtight franchise agreement is ultimately worth the investment, which is why Sadler recommends seeking the input of a British Franchise Association-approved lawyer.

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6710 Franchise Ad_Layout 1 20/07/2015 11:58 Page 1

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

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

Unique software package

Driver Hire is

People like you

Financial returns

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

• Franchisees from a wide range of backgrounds • No previous knowledge or experience required, but... • A passion for excellent customer service and the commitment and desire to build a successful, profitable franchised business • 93% of franchisees would buy a Driver Hire franchise again!

• Average full year franchise turnover of £988k in 2014/15 • 36 of offices achieved sales of £1m+ in 2014/15 • Low fixed costs and attractive resale values upon exit • Net profit potential of over £100,000 per annum • Opportunity to boost revenue significantly by offering complementary products

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

✆

www.driverhirefranchise.co.uk

01274 361073

franchise@driverhire.co.uk

AWARD WINNER - bfa HSBC ‘Franchisor of the Year’ 2006 and 2012 Untitled-5 1

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LEGAL

You cannot simply pluck figures out of the air John H Pratt, Hamilton Pratt

Although some in the franchising sector may claim it’s cheaper and easier to crib a template agreement from the internet, Sadler stresses that Google is not your friend in these circumstances. “Not only does this raise issues of copyright infringement but it will not be tailored to your particular business,” she says. “[It] will almost certainly not be as protective as it could be.” Getting a bespoke agreement drawn up by an experienced hand will ensure you aren’t exposed to loopholes or litigation.

Fudging the numbers One of the main things a prospective franchisee with the slightest nous will ask from a franchisor is a detailed set of projections for the opportunity in question. “Your lawyers will encourage you not to provide any financial information to prospective franchisees but in the real world it is very difficult to sell franchises without providing some financial information,” says John H Pratt, partner at Hamilton Pratt. Given that a franchisor is going to be obligated to provide some kind of financial account of its business, it’s vital that the numbers provided are an accurate reflection of the average performance of a franchisee, rather than data cherry-picked solely to present the operation in a favourable light. “You cannot simply pluck figures out of the air,” Pratt says. “If you do, your franchisees may have a misrepresentation claim against you.” Ultimately, gaining a quick sale isn’t worth the risk of a protracted lawsuit. 58

Brain drain Without a doubt, the most valuable asset of any franchise is its intellectual property (IP) and this makes it one of the prime areas where franchisors can be tripped up. “[You need to] ensure you have the proper protection for the business, that the unique business name or trading style are trademarked and any unique process or equipment is patented,” says Helen Hall, associate solicitor for litigation and dispute resolution at Simpson Millar. It’s also vital for a franchisor to check that the processes and branding it has established don’t infringe on the IP of others, which can severely devalue its package and potentially land it in court. Additionally, given that meeting with potential franchisees will, by necessity, involve sharing at least some of a franchise’s inner workings, it’s important to put in place some protections to ensure that you’re not giving away your secret sauce. “Make sure information about the business model provided pre-contract is done under terms of confidentiality,” says Hall. And these kinds of protections shouldn’t only apply to those outside the business; they’re just as important for those who are already on the inside. “Include restrictions in the franchise

agreement that prevent franchisees from setting up in competition or using your industry know-how if they leave,” she says.

With your eyes closed Whilst franchisors can’t be expected to be perfect prognosticators, attempting to look into the future can certainly help protect a franchise from any hidden pitfalls that might lie ahead. “In the absence of a crystal ball, it is important that the shareholders in the franchise consider what their future plans for the business might be and discuss this with their legal advisors,” says Drakes. Perhaps one of the most important considerations will be the provisions that need to be made for when a franchisor wants to sell the business. “It is important to ensure that the franchise agreements that underpin the network give the franchisor the flexibility to accept investment or sell the business,” Drakes says. For a franchisor to be able to make a major decision like this without having to undergo a lengthy consultation with its franchisees, it’s important to ensure the relevant documents contain the right caveats. “It can cause significant issues down the line if franchisee consent is required for investment or a sale,” he says.

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Buy a coffee franchise with

Why buy a coffee franchise? Coffee is big business: 800,000 people in Britain buy coffee at least 4 times a week It makes lots of money: Total turnover for this sector reached £5.8bn in 2012 And it’s growing: Analysts predict that the chain market will grow at least 6% by 2017, hitting 7,000 outlets and £3.7bn in sales revenue.

Visit FranchiseSales.com to find out more about buying a coffee franchise – and more!

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03/12/2015 15:30 12/11/2013 16:59:27

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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.

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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

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 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

BBX UK

Over 60% of businesses have the ability to service more customers without increasing their fixed costs – this is called their SPARE CAPACITY. If their spare capacity is not used its value will be lost forever which costs UK businesses hundreds of billions in lost revenue annually. BBX is the largest Global Cashless Trade Exchange offering businesses a facility to turn their spare capacity into additional revenue without discounting. Building on 22 years of franchising we have opportunities in the UK offering:

• Multiple income streams – earning 24/7 • Dedicated territories • Renewable income leading to exponential profit growth • Immediate cash flow • Global market leaders

Contact Matthew Harding | Call: 0333 4002014 | email: matt.harding@bbxuk.com | www.bbxuk.com

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

Eazi Apps

Get involved in the fastest growth market in history offering iPhone, iPad, Android and mobile web apps without any technical or design experience. We give you a full turnkey package that includes in- house training, support, help desk, loads of marketing materials and a full sales and marketing plan. Be your own boss, work your own hours, when you like, where you like.

• Start your own mobile app business for only £5,995 (+VAT) • Substantial income potential • Work from home • No tech experience required

Call 0800 865 4600 | www.eazi-apps-business.co.uk

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FRANCHISE FOCUS

Home Instead Senior Care

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

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

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

PA4You

Our call handling support will bring your franchise more sales - guaranteed! All small businesses miss calls. Engaged lines, unanswered calls, too busy on your workload, weak mobile signals. This all means lost opportunities. Our award winning, very personalised, sales support teams of PA’s will quickly capture your diverted missed calls, and new web leads, that you are missing every day and help you convert them into happy new clients. Our service pays for itself! Call us for a free trial

• Knowledgeable, responsive PA staff helping your callers • Longer opening hours for your callers • Low cost, high value sales support • Short contracts • More profits for your business

Call 0333 800 3690 | email: hello@pa4you.co.uk | pa4you.co.uk

SNAP FITNESS

The concept behind Snap Fitness, the world’s faster growing fitness franchise, is a simple one: Compact 24/7 gyms with state of the art equipment, minimal staffing and no fuss. Founded in 2003 in the United States, Snap Fitness has taken on a rapid expansion plan and currently has more than 2,000 clubs worldwide including USA, Canada, Mexico, India, Australia

and New Zealand, Spain, Belgium, Netherlands, Luxembourg and now the United Kingdom. In 2009, Entrepreneur Magazine ranked us No. 1 “Best in Category” for fitness franchises and the editors of Inc. Magazine placed us at No. 16 on its annual “Inc. 500” list of privately owned businesses. We now offer fitness solutions to more than half a million members worldwide. With rapid growth plans for the United Kingdom

we are looking for passionate, experience and well capitalised franchisee to join in our journey and transform the fitness industry here in the UK.

Contact Isaac Buchanan | Call: +44 752 559 5812 | ibuchanan@snapfitness.co.uk | www.snapfitness.co.uk

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

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Franchise Diaries with Kate Lester

Quick off the mark Building up a solid sales pipeline prior to launch can ensure the success of any franchise

he enthusiasm of a new startup is infectious. People are keen, full of energy and excited by the wealth of possibility ahead of them. However, it soon dawns on them that the reality is quite different. Particularly when starting from scratch with a lesser known brand, a franchise is no less work than a traditional startup. As with any new business, a few knockbacks and stumbling blocks can see your progress falter and initial enthusiasm start to decline. That’s why sales are essential – there is very little that can’t be cured by a busy order book. At Diamond Logistics, we insist that all our franchisees come to training with their first 500 target clients identified. This means they have a good chance of hitting the ground running. Our best start to date is Hon Leung of our Bournemouth site: he started at the right time of year, with a handful of clients ready to start trading on day one. He quickly

reached his critical mass stage – where his revenue matched his outgoings – and this took the pressure off him so he could wholly focus on business development without having to get caught up in fuelling a deficit. When buying a franchise, you are buying a formula for how to sell and the operational means to fulfil those sales. There are a few – namely the likes of McDonald’s and Costa – where your sales may walk in through the door on the brand alone. But most franchises are sales franchises first and operational franchises second. You have to prioritise the sales otherwise you have a very functional business with no revenue – and that won’t last long at all. To stop the rot, it’s worth acknowledging what a typical psychological journey is, noting where the danger points may be in terms of motivation and where you need to address the key concerns. Front loading your sales pipeline will be the key to success – as well as acknowledging that after your first round of sales you cannot take your foot off the sales pedal. Again, looking back at our most successful franchise, it quickly added resources to deal with the operation arising from its first sales and kept its foot on the sales pedal – powering onwards and upwards in pursuit of its sales goals. The most successful franchises fully acknowledge their individual responsibility for the sales; they understand that the key promoter of a business is the proprietor. Delegating that core responsibility can be risky, so it’s far better to delegate the replicable operational elements so that you can focus on the sales and marketing. This will give you far more predictable sales revenues because you have taken control. The path to success in business, whether a franchise or not, is never smooth. But the operational know-how provided by a franchise helps free you up to perform the key activity of any successful business – getting and keeping customers. Just remember they don’t walk in through the door. So go out and get them.

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

investment

25k+vat

✔ ✔ ✔ ✔ ✔

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

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

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

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ADVERTISING FEATURE

Tips on how to impress your bank manager Richard Holden, head of franchising at Lloyds Banking Group, discusses the importance of your first meeting with your bank manager

ranchising plays an increasingly important role in supporting enterprising individuals who are setting up their own business, as it provides them with the reassurance of a proven model as well as initial training and ongoing support. Business owners looking to secure the financial backing for their franchise development plans often turn to a bank for support. One way to guarantee that you receive relevant, sector-specific support and funding is to approach a lender that has a dedicated franchise team, such as Lloyds Bank. In doing so, your bank manager will have a solid understanding of the challenges that franchise owners are likely will face and can tailor the most appropriate funding to fit your requirements. Before your first meeting with the bank manager it is important that a substantial business plan is produced. A

significant amount of time and effort should be put into your proposal as it is the first introduction the lender will have to your business. The plan should provide a detailed description of the service and products that you provide, whilst outlining your objectives and strategy to build a profitable franchise. The business plan should be punchy and not too detailed, which will ensure that it grabs the bank managerâ&#x20AC;&#x2122;s interest. The bank isnâ&#x20AC;&#x2122;t looking for a two-hundred-page document going into microscopic detail but it will expect you to provide commentary on your skills and experience, business objectives, the franchise brand, local market, competitors, potential clients, suppliers, premises, staff, marketing strategy, financial requirements, available security and any contingency plans that you may have considered.

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So how do you make sure that your business plan packs the winning punch? There is truth in the old saying, “If you fail to plan, you plan to fail” especially when you’re starting a new business. Those who understand the benefits of business planning are much more likely to be successful than those who react to day-to-day operational issues and are constantly firefighting problems. The initial objective of the document is to help you raise finance for the business. It will also help you understand what you wish to achieve and is an essential document to review your performance against your projections, alerting you to anything that is not going according to plan as well as identifying potential opportunities for the business. The plan should also demonstrate that you understand the business opportunity and the local market for your product or service. Most banks can provide a business planning template for you. Accountants can also provide advice in producing the plan but remember it is your document and is too important to leave to someone else to write. Financial projections for the business are another vital assessment tool. Most franchisors will provide you with illustrations of possible trading performance but it is up to you to dig deeper. Find out what the financial projections are based upon and the assumptions that have been used. A business plan is a useful tool to help gather thoughts and set objectives for the business. It should demonstrate that there is sufficient demand for the product or service and that you have a good understanding of the market. It should also set out the competitive advantage or unique selling point your business may have.

A good business plan will cover the following areas: • Executive summary • Personal details (Contact details, age, marital status, dependants) • Franchisee’s experience, skills and attributes • Objectives / mission statement • Overview of the franchise • Local market (Research, Location, Customers, Competitors) • Business operation (Premises, IT, Vehicles, Equipment) • Key personnel / management team • Marketing strategy • Borrowing requirements • Capital stake and security • Personal assets, liabilities,income and expenditure statement • Financial Projections (Cash flow and Profit & Loss forecasts) • Financial Assumptions • Three years of financial accounts (Existing businesses only) • SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) • Exit strategy

Pitching your plan to your bank manager It is good practice to send a copy of your business plan to the bank manager a few days ahead of your appointment to allow them to become familiar with the content. The document should achieve a comfortable balance between being professional yet interesting to the lender. As your meeting approaches you should have an excellent understanding of your strategy and it is advisable to prepare and practice a script that briefly introduces your business proposal. This projects a professional image and offers credibility to

your proposition, while the depth of your research will allow you to comfortably answer any questions posed. The bank manager will naturally be interested in the operational and financial aspects of your business and will expect you to be able to respond confidently and accurately. Think of those entrepreneurs on BBC’s Dragons Den. From the outset, many don’t stand a chance of securing the investment they are seeking because their presentation is poorly conceived or they don’t have a good understanding of the key financial

information. Consequently, they are unable to establish their own credibility and project confidence in their business. Whilst it may seem obvious, it is essential that you are dressed appropriately for the meeting and arrive on time – first impressions count. The combination of a professional approach and a workable strategy delivered by a positive, committed owner will put you in a strong position to secure the funding that you need to launch a successful franchised business.

Top tips • Research your options thoroughly • Have clear objectives • Prepare a strong business plan • Understand your financial projections • Produce a SWOT Analysis highlighting the strengths, weaknesses, opportunities and threats for your business • Always approach the bank’s franchise department in the first instance • Send a copy of the business plan to the bank manager before the meeting so they can prepare • Be prepared: understand how you are going to present your business proposal and expect to be challenged on all aspects of your plan • Identify a contingency reserve fund to fall back on if business sales are initially slower than expected • Dress to impress: first impressions count

Funding your franchise development plans The level of finance available from a bank will depend upon the strength of the franchise system and brand as well as the business plan you’ve produced. Typically, for well established franchises, the bank will lend up to 70% of the total setup costs including working capital. For newer, less established franchise systems, the amount of finance available maybe lower. The bank will probably require security for the loan, which commonly will be a legal charge over a residential property with sufficient equity. Don’t be put off they isn’t any security to offer the bank. The government-backed Enterprise Finance Guarantee Scheme may be available for those who have a strong business proposal but who lack the security that the banks usually require. It is sensible to have a contingency reserve fund to fall back on in case the business takes longer to get off the ground than originally anticipated. Lloyds Banking Group continues to approve 80% of customers’ requests for loans and overdrafts and

it has a range of funding options available, which includes Lloyds Funding for Lending. This utilises the government’s Funding for Lending Scheme and enables businesses to benefit from lowered funding costs on loans, offering a 1% reduction in the interest rate for new business loans. Once you have established a relationship with your bank and secured the necessary financial support, it is important to build on this and keep regular communication channels open. Offering regular updates on the progress of your business breeds confidence in your ability to manage your business in the current trading environment. Self-employment can be a daunting prospect but hard work, determination and a large amount of common sense will take you a long way towards achieving your business goals. If you set realistic objectives and undertake a meticulous planning process, and once you have delivered your business plan with confidence and answered all questions knowledgably, then you have the basis for a successful relationship with your bank manager as you look to expand into franchising.

Contact Richard Holden Head of franchising Lloyds Banking Group Email: franchising@lloydsbanking.com

Lloyds Bank can help with your franchise plans To find out more contact franchising@lloydsbanking.com lloydsbanking.com/franchising