Elite Franchise Magazine July 2016 by Elite Business Magazine

July 2016 ÂŁ4.50

elitefranchisemagazine.co.uk

Coffee-Bike

The mobile coffee shop serving up success on the streets

Braveheart

Pearson Ferrier

The estate and lettings franchise shares its approach to property

Should the Scots be fearless about franchising?

SLICE OF THE ACTION

When Ian Christelow first came across ActionCOACH, he knew it was something he wanted to be part of. From one area development license in East Anglia, he has since grown the franchise into a network of over 150 coaches that helps companies throughout the UK

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philipphilipo-fish o-fish I am I am a franchisee a franchisee && this this is my is my McDonald’s McDonald’s ‘We’re ‘We’re very very active active in the in the community, community, likelike helping helping local local business business groups groups andand sponsoring sponsoring grassroots grassroots football football teams. teams. TheThe most most satisfying satisfying partpart of being of being a franchisee a franchisee is developing is developing my my people. people. Seeing Seeing them them enjoy enjoy themselves themselves andand be proud be proud to work to work at McDonald’s at McDonald’s – that’s – that’s thethe bestbest thing.’ thing.’ Phil,Phil, operates operates 6 restaurants 6 restaurants in North in North Wales Wales

www.mcdonalds.co.uk/franchising www.mcdonalds.co.uk/franchising

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& s

y, d e e m k .â&#x20AC;&#x2122;

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DEVELOP YOUR

sustainable business growth strategy PRESENTING BUSINESS LEADERS & SUCCESSFUL ENTREPRENEURS, INCLUDING:

LARA MORGAN

MARK FOSTER

OLI BARRETT MBE

Lara Morgan is best known for growing Pacific Direct, from start-up to successful exit, and now invests her time in fast growth companies. Lara is founder of Company Shortcuts and represents UKTI as an Export Ambassador.

Since retiring from swimming, Mark Foster has become a familiar face on television including appearing on Strictly Come Dancing. Inspired by this experience, Foster teamed up with Natalie Lowe and Ian Waite and formed Fitsteps.

Oli Barrett MBE is one of GQ magazineâ&#x20AC;&#x2122;s 100 most connected men in 2016. Co-founder of Cospa which helps companies and causes to create and grow ventures which make both money and a difference.

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Elite Business Live

CONTENTS

34 Great Scot FREE INFORMATION SERVICE Don’t miss our free information service for franchisees. You can find this at the back of the magazine.

Franchising is on the rise north of Hadrian’s Wall

40 Brewing success The German franchise Coffee-Bike ladling out lattes on the go

46 What’s the deal? Fancy buying a franchise? Better get your finances in order

REGULARS 9 Editor’s letter 10 Contributors 13 News & events 81 Franchise diaries

54 Children of the revolution All bets are off when it comes to marketing to Generation Y

60 21 days later COLUMNS 15 Pip Wilkins 17 Karen Kelly 27.. Nigel Toplis 29 Tony Bowman FEATURES

40 6

30 Home run

Pearson Ferrier is knocking franchising out of the park

Surviving your first three weeks as a franchisee

64 Full steam ahead How the latest tech help franchises boost productivity

70 Can’t compete? Avoid exiting franchisees from stealing your secret sauce

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20 THE ELITE INTERVIEW

For Ian Christelow, helping entrepreneurs with their business is personal

July 2016 | elitefranchise

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SUPPORTING BRITISH BUSINESS

WE COMMIT TO GROW OUR LENDING TO BRITISH BUSINESS

We help brilliant British businesses grow. In the last four years we have helped over 500,000 businesses start up, and we back over 80% of the FTSE 100. We approve 8 out of 10 loans and are lending to all types of businesses across Britain. To ﬁnd out how we can support your business, please contact Richard Holden, Head of Franchising on 07802 324018 or at franchising@lloydsbanking.com Find out more at lloydsbank.com/business

Any property given as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. All lending is subject to a satisfactory credit assessment.

Over 500,000 start-up ﬁgure relates to Lloyds Banking Group, correct as at December 2014. Lloyds Bank FTSE 100 ﬁgure correct as at January 2015. 8 out of 10 relates to period April 2012 – November 2014. Calls may be monitored or recorded. Please note that any data sent via e-mail is not secure and could be read by others. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 119278. We subscribe to The Lending Code; copies of the Code can be obtained from www.lendingstandardsboard.org.uk. The Lloyds Banking Group includes companies using brands including Lloyds Bank, Halifax and Bank of Scotland and their associated companies. More information on the Lloyds Banking Group can be found at lloydsbankinggroup.com

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WELCOME

VOLUME 04 ISSUE 07 / 2016

EDITORIAL Josh Russell – Acting Editor josh.russell@cemedia.co.uk Eric Johansson - Feature Writer eric.johansson@cemedia.co.uk DESIGN/PRODUCTION Leona Connor – Head Designer leona.connor@cemedia.co.uk Jenny Allen – Junior Designer jenny.allen@cemedia.co.uk Dan Lecount – Web Development Manager dan@cemedia.co.uk SALES Gwynn Evans – Senior Account Manager gwynn.evans@cemedia.co.uk MARKETING David Thomas – Group Marketing Manager david.thomas@cemedia.co.uk Aimee Gray – Marketing Assistant aimee.gray@cemedia.co.uk CIRCULATION Paul Kirby – Circulation & Data Manager paul.kirby@cemedia.co.uk ACCOUNTS Sally Stoker – Finance Manager sally.stoker@cemedia.co.uk Colin Munday – Management Accountant colin.munday@cemedia.co.uk ADMINISTRATION Emily Fulcher – Administrator emily.fulcher@cemedia.co.uk DIRECTOR Scott English – Managing Director scott.english@cemedia.co.uk Circulation enquiries: CE Media Call: 01245 707 516 Elite Franchise is published by CE Media, 4th Floor, Victoria House, Victoria Road, Chelmsford, CM1 1JR Copyright 2016. All rights reserved No part of Elite Franchise may be reproduced, stored in a retrieval system or transmitted in any form or by any means, without the prior written consent of the editor. Elite Franchise will make every effort to return picture material, but this is at the owner’s risk. Due to the nature of the printing process, images can be subject to a variation of up to 15%, therefore CE Media Limited cannot be held responsible for such variation. cemedia.co.uk

Weathering the storm I

’ve stepped into the role of editor here at Elite Franchise at a very unique time in the history of both the franchising industry and the country as a whole. Unsurprisingly, the shock decision in the June 23 referendum for Britain to leave the EU has created an uncertain climate that many are still trying to make sense of. However, it’s time to focus on the future. There’s no hiding from the fact that Brexit will cause real instability for UK businesses but it’s important to recognise that our country’s franchises are a very different breed. Despite having to navigate some tricky

economic waters over the last decade, the British franchising sector has gone from strength to strength. It is my sincere belief that the industry will not only weather any storm that comes its way but actively thrive. Picking up from the fine example set by my predecessor Adam Pescod, I will be with you every step of the way. And with inspiring individuals like this month’s cover star Ian Christelow, master licensee of ActionCOACH, helping entrepreneurs overcome challenges and build better businesses, the best days are still in front of us.

JOSH RUSSELL - ACTING EDITOR josh.russell@cemedia.co.uk

July 2016 | elitefranchise

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CONTRIBUTORS

Jon Card

Card is a freelance journalist who sells his penny scribbles to The Guardian and The Telegraph. This month he wrote our piece on productivity and all the labour-saving tech employed by franchise owners. Card looks forward to the day when his work can be performed by apps and he can spend his time in the garden, watching telly and being as unproductive as possible.

Jane Maudsley

It’s been a fantastic few months for Maudsley. Not only was her franchise Little Voices listed in the top five for the EWIF Franchisor of the Year but it is about to open new locations in Cheshire, Welwyn Garden City, Hertfordshire, London and Lancashire. If those new franchisees are looking for a little advice, they should read Maudsley’s piece on overcoming challenges in franchising. 10

Alex Littner

Thanks to his expertise helping businesses access finance in his role as managing director at Boost Capital, Littner is something of an economics expert, inspiring this month’s deep dive on the Scottish franchising ecosystem. Littner is also a family and football man: given England’s disappointing results at Euro 2016, we imagine the former is giving him much more succour than the latter.

Kate Legg

Our resident legal eagle, Legg penned a piece this issue on how non-compete clauses are vital to prevent franchisees setting up in competition with their franchisors. But it’s not all work and no play. She’s been joining the Queen in her merrymaking, with Legg also celebrating a big birthday last month, although, she hastens to add, not as big as her Maj’s. Many happy returns.

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A new concept in franchising Game developers Project M Global are offering the world’s first franchise opportunity where you can be part of a unique mobile gaming concept and the good news is you do not need to know anything about gaming to be part of this very lucrative market. The mobile gaming industry has now outgrown both the movie and music market and has become the biggest entertainment medium in the world. Everyone has heard about the multi-million dollar global success of games such as Angry Birds and Candy Crush, but until now the opportunity to tap into this booming market and be part of the next new game that everyone wants to play has not been there.

Join a $93 billion global market Training and support

What is in it for you

• Training at the Tech Hub in London (monthly training days before and after game launch) • Design toolkit • Operations and business manuals • Video tutorials via our website • A monthly discovery day at the Tech Hub in London to meet the team and knowledge sharing

• Whatever your employment status, you can be the master of your own destiny • Work the hours that suit you • Low start-up costs, work from the comfort of your own home or office • Expected high returns • Quarterly pay outs from launch of the game • It’s a business the whole family can get involved in (including the kids)

Investment Level from £17,500 - £160k + VAT

Next Step To find out more about this unique franchise opportunity, please contact us via any of the below.

0207 608 5591 info@projectmglobal.com www.projectmglobal.com PROJ001 Project M FP June16.indd 1

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Congratulations to HomeXperts who scooped the coveted prize of Franchisor of the Year at the EWIF Awards last month. Sussanne Chambers, being the very proud recipient of the award for her and her teamâ&#x20AC;&#x2122;s hard work and success in the industry, wanted to celebrate in a huge way, and she has decided to run this amazing competition to encourage another woman in to the franchise industry. You could secure your financial future working from home or a small serviced office by working hard and following the proven HomeXperts estate and letting agency franchise model.

Entrants are to pass any initial interviews and due diligence as per HomeXperts Franchise Discovery Procedures showing themselves to be of the right calibre to succeed.

how to enter To apply to the competition you can visit the Franchise Opportunity Directory on elitefranchisemagazine.co.uk and click on competition. You can also contact EWIF or the Franchisor of the Year themselves. email: franchise@homexpertsuk.com or call: 01905 678853 www.home-xperts.co.uk/win-a-franchise elitefranchise & EWIF would like to thank HomeXperts for running this competition with them and helping to Encourage Elite Women In Franchising. What a great way to celebrate success, showing whatâ&#x20AC;&#x2122;s made you FRANCHISOR OF THE YEAR 2016.

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NEWS How to make a splash The judges of this year’s bfa HSBC Franchisor of the Year Award certainly had their work cut out for them picking one winner from the extremely talented £15bn franchising sector. But, in the end, Water Babies’ impressive accomplishments over the past 12 months made it – to quote Tina Turner – simply the best. While Water Babies may have snatched the big win, there were plenty of other accolades dished out. Home Instead Senior Care was rewarded with the silver trophy and Expense Reduction Analysts won the bronze. This year’s award ceremony may be done and dusted but, given all the fantastic franchises out there, we’re sure picking the winners of 2017 won’t be any easier.

Belvoir becomes the UK’s largest property franchise The Creation Station beats 5,000 in Virgin contest

EWIF Midlands Regional Meeting July 5 Fraser Brown Solicitors, 84 Friar Lane, Nottingham, NG1 6ED

NatWest Franchise seminar RBS/NatWest Building July 12 280 Bishopsgate, City of London, London, EC2M 4RB

EWIF South West Regional Meeting July 21 TLT Solicitors, 1 Redcliff Street, Bristol, BS1 6TP

bfa Prospective Franchisor Seminar July 5 Gateley LLP, 98 King Street, Manchester, M2 4WU

Coconut Creatives: Exhibiting and speaking effectively July 14 Best Western Yew Lodge Hotel, Packington Hill, Kegworth, DE74 2DF

bfa Prospective Franchisor Seminar September 7 Fieldfisher, Riverbank House, 2 Swan Lane, London EC4R 3TT

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

July 2016 | elitefranchise

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WORDS: ERIC JOHANSSON

Events

Take a pinch of playfulness, add a dash of colour, franchise it and voila: you’ve got the recipe for The Creation Station. Since launching in 2002, the arts and crafts franchise has sparked the imagination of thousands of children and helped people start their own micro-businesses. So it should come as no surprise that The Creation Station was selected as one of three finalists to be nominated to the Virgin Media Group’s VOOM 2016 Impact Award, beating a competition of 5,000 other businesses in the process. While environmentally friendly paint manufacturer Paint 360 ultimately won the gong, coming so far in a competition judging one’s ability to improve the world is clearly cause for celebration. Colour us impressed.

Belvoir Lettings’ impressive growth shouldn’t have escaped anyone remotely interested in the UK property market. Its £22m acquisition of the lettings franchise Northwood has truly cemented the company’s position as a leader in the sector, making it the largest property franchise in the UK. Belvoir’s network now includes 301 outlets across the country managing 54,000 properties. Following the acquisition, Northwood’s chief executive Gemma Goodson and managing director Eric Walker will remain in their roles. With this new acquisition, Belvoir is sure to remain a franchising force to reckon with.

07/07/2016 14:46

Branch out on your own with the support of TaxAssist Accountants

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119 franchisees on 10 year agreements

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Key UK Franchise Industry Stats

Source: BFA NatWest Franchise Survey 2015

There are now 44,200 franchised units operating in the UK and the sector employs 621,000 people

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TAXA001 04/04/2016 13:36

Pip Wilkins, chief executive, bfa

Laser targeting your messages for franchise growth Rather than a scattergun approach, taking careful aim is the best way to secure new franchisees One of the most common things we hear from franchisors at the bfa is the question of how to increase the number of enquiries from prospective franchisees. But, as every seasoned franchisor knows all too well, finding franchisees is much more than a numbers game. Attracting the right kind of franchisee means putting the right messages in front of the right people – not trying to reach everyone with the same ones. At best, the latter will give you an abundance of enquiries, some of whom will go on

to invest in your franchise. At worst, you’ll be left with almost no interest and no real understanding of why. Like the franchise sector itself, marketing, PR and advertising have changed immensely in recent years. Gone are the days when a blanket message was good enough. Instead, you need to speak directly to your target. You need to focus on their aspirations, ideals, personalities and perhaps even their reservations if it’s the first time they’ll be running their own business.

Attracting the right kind of franchisee means putting the right messages in front of the right people

That begins with knowing who you’re looking for in the first place. Every good, established franchisor has a clear idea about who their ideal franchisee is and the background, skill set and personality they will require to succeed. Then you need to put yourself in their shoes. Unless you’re looking through the eyes of an audience that may not know much about franchising or your brand, then you probably won’t be appealing to them in the right way. For example, if you’re looking for parents to be your franchisees, you need to understand what’s driving them towards self-employment and franchising in the first place and target your message accordingly. Are you clearly highlighting the work-life balance your franchise can help them achieve? Are you telling them how the business fits around a family, highlighting why parents are succeeding in the network? Are you putting those messages where they will see them in the first place? If not, then you’re probably not piquing their interest, if you’re reaching them at all. It sounds simple and, at its base level, it is. But understanding an audience and how to reach them is a real skill and it’s one that any marketer or PR worth their salt appreciates deeply. It’s easy to write generic copy; it’s not so simple to create words that make a person sit up and take notice. So even if you’re a new franchisor – perhaps especially so – find out what’s driving your audience, use your knowledge of what makes a successful franchisee for your network and marry the two to create your message. Appeal to the right prospects; don’t try to be all things to all people. July 2016 | elitefranchise

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AnytimeFitnessUK

AnytimeFitUK

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01/02/2016 22:40 18:19 23/12/2015 10:53 22/12/2015

Karen Kelly, founder & managing director, Cleanhome

The easy way to motivate franchisees Involving franchisees in head-office decisions is the secret to creating a strong and successful network As the backbone of a business, franchisors are responsible for providing their franchisees with the tools and training required to help them succeed. However, once franchisees have settled into the day-to-day running of a business, how can a franchisor continue to motivate and inspire them? While practical help such as implementing technology, handling the marketing and offering advice and support are all essential, this is not enough to ensure franchisees remain engaged with the company’s vision and embrace changes designed to move the business forward. Many people who are part of a franchise network are not directly involved in head-office decisions on business strategy and future plans. Yet getting franchisees involved in strategic thinking and growth planning can be one of the best ways to engage with them and create an aligned culture that helps a franchise flourish. Franchisors spend a lot of time planning how to move the operation forward and grow the business but if they don’t involve franchisees in the planning process, they may find that they are resistant to change.

Franchisees are more likely to implement a plan if they know they have contributed to it

Communication might also be an issue. Franchisors need to communicate openly with their team to ensure that everyone understands why decisions are being made, as well as how they will benefit individuals and the team as a whole. It’s natural that when franchisees haven’t been involved in head-office discussions, they may struggle to understand the reasoning behind the changes being made. Presenting franchisees with a strategic plan and expecting them to implement it without proper explanation can result in resentment and a lack of motivation. Franchisors need to realise that there’s plenty of space to engage everyone in the network; this will encourage franchises to be enthusiastic about improving the company’s strategy. Successful franchisors are the ones that ensure their franchisees understand the wider industry and discuss any developments with them so they can agree how to move forward. They welcome input and accept feedback and suggestions for change. Franchisees also come from all walks of life, having diverse backgrounds and experience in different industries. This means they are a source of talent and ideas that franchisors need to make the most of. It may sound daunting to involve franchisees in the strategic planning process but the time and effort will pay off in the long run. Ultimately, they are more likely to implement a plan if they know they have contributed to it and that their input is valued. July 2016 | elitefranchise

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Be your own boss with help and support directly from the founders. Since 2012, The New Driveway Company has grown quickly and steadily to become the UK’s leading independent driveway and external landscaping company. Our success is due to our unique strategy – to put the customer first in delivering unparalleled professionalism, workmanship and design.

Our NDC Design & Visualisation software creates designs based on your client’s brief. Taking into consideration both function and style, you can produce detailed designs, plans and video walkthroughs, so your clients can visualise the full extent of your plan for their outdoor space.

Our business is based on a simple premise – to achieve 100% customer satisfaction for every project we undertake. In practice, we do this by coupling innovative design with the best products available.

The success of our company, and of our franchisees, begins with the products we choose. We seek out best-in-class materials and cultivate strong relationships with our suppliers, implementing stringent quality control procedures to keep our standards high. Having worked hard to put customer service with the right product and a proven our business to be profitable and reputable we now know it’s time for one of the best franchise opportunities available to be launched to a wider geographic.

Customer satisfaction is paramount to our success. We deliver the highest standard of professional work and design. If you’re the kind of person who wants to achieve the best level of customer service for your customers, then we want to talk to you.

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”The New Driveway can prove the business model. Darren and the team have extensive hands on experience in the industry. They’re out doing the job day in, day out.” – Chris Thomas, Cardiff Franchisee.

The New Driveway Company is at a pivotal point. We’ve successfully set up a handful of pilot franchises within the UK – with better than expected results. Every single new franchise has exceeded its profit and performance targets, proving that our business model is viable and reproducible.

Now, it’s time to open up our franchise opportunity to a wider geographical range. As a New Driveway Company franchise owner, you can finally achieve the work / life balance you want. You have the freedom to be your own boss, backed by a company with a solid reputation and a steadily growing customer base.

Find out more at: www.newdrivewaycompany.com/elite/ HEAD OFFICE: Milton Innovation Centre, Building 99, Milton Park, Abingdon, OX14 4RY Tel: 01235 854071

SOUTH LONDON: Dalton House, 60 Windsor Avenue, London SW19 2RR Tel: 020 3292 0534

NORTH LONDON: 483 Green Lanes, London N13 4BS Tel: 020 3633 2743

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IAN CHRISTELOW

TAKING ACTION

Witnessing the family business fold when he was just a young boy had a marked influence on Ian Christelow. When he came across the ActionCOACH brand, he knew it would help him prevent other companies from meeting the same fate BY JOSH RUSSELL / PHOTOGRAPHY BY NATALIE SEERY

t’s safe to say that helping companies thrive is close to Ian Christelow’s heart. When he was just a child, the advertising agency his father had founded went under, the memory of which has stuck with Christelow to this day. “Because he didn’t have access to business coaching, he lost his business and we really suffered as a family,” he says. “He lost his job, all of his money and he nearly lost his wife.” For this reason, Christelow, now master licensee of ActionCOACH, the business coaching franchise, has dedicated his life to helping other business owners avoid the same fate. “For me, it’s personal,” he says. After leaving Chelmsford’s Great Baddow High School, Christelow initially wanted to attend art school. However, the failure of his father’s business years before meant he needed to be bringing money in so he found employment at his local branch of Lloyds. “I absolutely hated it to be honest,”

elitefranchise | July 2016

he says. “Finding myself in the machine room processing debits and credits was soul-destroying.” Christelow admits that he may not have tried that hard to conceal his half-hearted attitude: he landed himself in hot water on his first day. “I went into the manager’s office and said: ‘this is crazy – you could get a machine to do this,” he says. “After six months they sacked me.” Fortunately Christelow’s next job worked out much better: not long after he found a position with Pearson Education working for its Pitman Publishing imprint. “I got a job in an accountancy department and decided to make the most of it, which meant qualifying as a chartered management accountant,” Christelow says. He dedicated his free time to studying in secret and booked leave from work so he could sit his exams, eventually passing with flying colours aged just 21. “When I told them that I was a qualified

IAN CHRISTELOW

July 2016 | elitefranchise

Ian Christelow

chartered accountant, they were like: ‘why didn’t you talk to us about this?’” he recalls. “Then they reimbursed me a load of expenses retroactively and gave me a promotion.” After Christelow had spent more than a decade working for Pearson imprints, he had a lucky break. “Paula Khan, our chairman at the time, decided to give me and three other people £1m and 12 months to get a new venture off the ground,” he says. “We had absolutely open book on it.” Christelow and his team eventually created Direct English, the English language training franchise, and, after a successful pilot out in Milan, sold I was very ten international licenses to the business clear I would to the tune of $5m. Along the way never go back Christelow picked up valuable experience of the franchise sector. “Through into a job ignorance, we did some things the wrong working for way,” he says. “But we learnt some really someone else great lessons about how to franchise.” Unfortunately, after four years, a change in management at the Pearson Group saw the company take things in a new direction. “The new chairman decided that the venture was not core business for the Pearson Group, so they sold it to the Linguapone Group and made me redundant,” Christelow says. “That was really tough because it had been a great experience; I cried my eyes out.” But rather than sitting around feeling sorry for himself, Christelow decided to invest a chunk of his redundancy on a convertible and see the world. “I drove around Spain and Portugal and then spent 22

another four months travelling round Australasia,” he says. When he returned to the UK, Christelow decided it was time for a change in direction. “I was very clear with myself that I would never go back into a job working for someone else,” he says. Luckily he had something to fall back on. During his last few years at the Pearson Group he had been studying for an MBA; he returned to complete the degree, selecting as many entrepreneurial modules as he could. And this sparked the idea for a new startup. “For my final project, I decided to set up a pleasure flights business and take stag and hen parties over the Blackpool tower in a helicopter,” he says. But despite his enthusiasm for this new idea, sometimes life has other plans. On a trip down to London to conduct research for his new venture, Christelow stumbled across an ad in the Evening Standard placed by Brad Sugars, the entrepreneur who founded the ActionCOACH brand in Australia. The business coaching

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Ian Christelow

franchise was seeking a general manager for the business in the UK and Ireland. “The advert sounded like it described me,” Christelow recalls. “I still remember the headline: it said ‘people wanted with passion, people wanted with heart’.” And the more he thought about the opportunity, the more the idea enticed him. “The call to action was ‘phone this number by 5pm on Friday’,” he recalls. “Curiosity got the better of me and at 4:45pm on the Friday I found myself calling the number.” Turning up at the group interview, Christelow was a little taken aback: there were 200 candidates going for one position. But after the first stages, which outlined the company and the opportunity, the interviewees were told that they would then need to stand up and make presentations about why they were the right fit for the job. “Half the people left,” he laughs. “I thought ‘great: I’ve only got 99 people to beat now’.” And, as Christelow progressed through the interviews, he only became more adamant that he was the perfect fit for the role. “By the end of that evening, I was so inspired by what I’d heard that if I hadn’t got the job I would have gone on hunger strike outside the office until they gave it to me,” he says. In the end, it transpired such a protest wouldn’t be necessary: recognising his enthusiasm, ActionCOACH snapped him up. Before long, Christelow was working alongside Sugars and two experienced franchisees from Australia in a serviced office in Hammersmith selling area development licenses for £500,000 a pop. When Christelow was asked to sit in on a ten-day training session for the company’s first four area developers, he was struck by an exercise that required them to write down how they would like their own epitaph to read. “I wrote: ‘Here lies Ian Christelow – because of what he did, every business owner in the UK was aware that there was a cure for the blight threatening businesses’,” he says. “And I decided then and there that I would buy one of those licenses.” However, there was one slight stumbling block: scraping together the money he needed to buy the license. “I went to the bank and they laughed at me,” Christelow says. “They all turned us down because, at the time, business coaching didn’t exist in the UK.” Not one to take no for an answer, Christelow sold his house and his car, cashed in his life savings and approached his brother Mark, then the treasurer of the Ford Motor Credit Company, to become his co-investor. After carrying out the required due diligence, Mark put up a 50% stake and together they purchased the area license for East Anglia. “It left me with no car, office, personal

The advert sounded like it described me: it said ‘people wanted with passion, people wanted with heart’ money or property,” he says. “But it was such an interesting opportunity that I just had to take it on.” Getting the new operation off the ground however still took a lot of work and it took some time for ActionCOACH to get the message out to potential franchisees. “Nobody knew what a business coach was,” says Christelow. “Initially, our marketing was ‘this is the difference between a business coach and a management consultant’.” After four months, Christelow found his first serious candidate but, after interviewing them, he realised that they didn’t have the best chance of success and decided to refund their franchise fee. “Sometimes fortune favours the brave: two months later, at 9pm on the night before the planes flew off to training, we signed our first franchise agreement,” he says. “And it just snowballed from there.” Thanks to this success, Christelow was soon able to start expanding his business empire outside of East Anglia. After the license holder for Yorkshire and Lincolnshire found themselves unable to recruit any coaches in their first two years, Christelow stepped in and offered to by the virgin territory off them. This strategy paid off and soon he was replicating his success in region after region. “Gradually I’ve either bought clean licenses for the other territories or bought out the existing area developer,” he says. “We’ve since invested £5m in buying the rights to award the franchise to people across the UK.” Instrumental in this growth was Julie Wagstaff, now recruitment director at ActionCOACH. She first became involved with the franchise as a coach in a region outside of Christelow’s control but, despite having strong commercial nous, quickly found herself foundering due to a lack of support. “Luckily she had the foresight to pick the phone up and approach an already successful coach for help,” Christelow says. “Within the space of four months, she was banking over £12,000 a month.” As one of the franchise’s rising stars, she approached Christelow with a proposal: she said they should join forces and buy the license for London. “I said: July 2016 | elitefranchise

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07/07/2016 14:47

Ian Christelow

There is a sickness out there that kills nine out of ten businesses and I’m lucky enough to have the cure

‘come to me with a compelling business plan and I’ll meet with you’,” he says. “I thought that was the last I would hear of it: two days later she brought me just that.” Wagstaff has since proved invaluable in addressing some of the problems faced by franchisees and, along with Christelow, has helped define the things that truly set ActionCOACH UK apart from the competition. “We now have a fantastic client-generation centre that produces quality leads for the coaches,” Christelow says. Additionally, the franchise offers a money-back guarantee that ensures as long as franchisees get themselves in front of six qualified prospects a month they will be banking £10,000 of personal client income by month seven. “We’ve only given two refunds in the last 15 years,” says Christelow. As a result, ActionCOACH has received some serious plaudits for franchisee satisfaction. In 2012, the franchise received joint runner-up for the Smith & Henderson Best Franchise £25k £99k award, which is awarded based on surveys of franchisees. “We always read every line of feedback and it identified a couple of areas that we needed to strengthen,” Christelow says. “Every year after, our score has improved.” It has since achieved fantastic results and has won the award for the last two years. “At the end of last year, we scored 90% overall satisfaction, which is a UK record,” he continues. 24

And franchisees are flocking to ActionCOACH thick and fast. “We recruited over 40 last year: we’re on course to recruit 60 this year,” says Christelow. The franchise now has over 150 coaches on its books and shows no sign of letting up: by 2020 the franchise is aiming to have 1,000 coaches and 10,000 businesses signed up to its services. “By the time I’m 60 or 65, I want us to be a household name,” Christelow says. “That will mean us helping 60,000 business owners through a network of 6,000 ActionCOACHes.” With the failure of his father’s business still fresh in his mind, it’s hardly surprising that Christelow has made it his mission to reduce the human cost that comes with companies going under. “There is a sickness out there that kills nine out of ten businesses and I’ve been lucky enough to have the cure shared with me,” Christelow concludes. “I’ve now got a responsibility to spend the rest of my life making sure that as many business owners as possible know about it.”

elitefranchise | July 2016

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PAPA001 Papa Johns.indd 1

04/04/2016 18:30

Are you looking for a flexible, efficient & highly rewarding Accountancy Franchise? Are you a Bookkeeper or Accountant? Want a better work life balance? Current job not paying enough? You want to earn much more than your current income? DNS Accountants offer the perfect Franchise solution! • 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 • Value Added Services • Dedicated Account Manager • Low Overheads • Zero Risk Solution We’re going to Elite Business Live! Find us at stand 143 or visit our workshop: “GUARANTEED RECIPE FOR A SUCCESSFUL START-UP BUSINESS: 3 vital tools that you cannot afford to miss” This will be presented by Sumit Agarwal, DNS Founder and Award Winning Accountant For more information call us on 020 7148 1706 or email us at info@dnsaccountantsfranchise.co.uk www.dnsaccountantsfranchise.co.uk DNSA002 DNS FP JULY16.indd 1

07/07/2016 10:50

Nigel Toplis, managing director, The Bardon Group

How franchising can reignite local communities

don’t have access to the necessary advice, intellect and information that they need to succeed. Fortunately, this is where franchising comes in. Franchising has an almost endless scope and enables entrepreneurs to start their own business under the umbrella of an established recognisable brand. This provides them not only the benefits of systems and expertise provided by Franchising won’t just boost the the franchisor but also the freedom economy – it could also be the key to that comes with being your own boss. It offers an excellent opportunity regenerating local neighbourhoods for those who have a little capital to invest but want a lower risk solution for starting It has been my long held and passionate their own high-growth business. belief that the franchising model offers Franchising offers a tried and tested means of a highly credible opportunity to assist in the going into business with good prospects, leading regeneration of local, regional and – some would to a more stable business community. This, in turn, assert – national economies. strengthens the towns and villages in which they The UK government is finally waking up to the trade. The result is robust and vibrant local economy idea that self-employment is the engine house of – one that is inhabited and driven by the local growth for the British economy. A report published population, for the benefit of the local population. in August 2014 by the Office for National Statistics, entitled Self-Employed Workers in the UK – 2014, confirmed self-employment to be higher than at any point over the past 40 years and that the rise in total employment since 2008 was predominantly among the self-employed. This trend has helped to sustain the economic recovery. And this is as true at the local level as it is at the national. The physical regeneration of towns and villages isn’t just dependant on the willingness of government, local enterprise partnerships and local authorities to create an environment that attracts developers. We also need entrepreneurs to exploit available opportunities. Given the desire to run one’s own business infects far more people than is generally supposed, there’s certainly not a shortage of viable candidates. However, the problem for entrepreneurs is not achieving lift off; it is actually staying up in the air. Independently owned businesses are subject to a high failure rate. People who go into business don’t usually fail through lack of hard work or ambition, nor is it due to poor ideas, products or services. Generally new companies fail because the people running them July 2016 | elitefranchise

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07/07/2016 14:47

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07/07/2016 10:36 18:14 27/03/2015

Tony Bowman, managing director, etyres

Harnessing the energy of youthful ebullience

Franchising is a perfect match for our millennials. It offers a refreshingly positive and promising future, providing instant career opportunities and great prospects from day one. With the right Not only do franchisors benefit attitude and aptitude, a motivated millennial could hit the ground running from attracting millennials but, for with a franchise and spend less than they the next generation, franchising would on tuition fees in a year. Instead of being saddled with enormous debts offers a cost-effective alternative to and student loans, a franchise would give them the opportunity to learn about university education building a business from the ground up whilst also earning a good living along the way. Providing the funding for a franchise is also an increasingly attractive alternative to financing a university education for parents who want to help their children get the best start in life. They can rest assured that they will be taken under the wing of a trusted and established business brand, be comprehensively trained and offered ongoing support. A good franchisor will know exactly how to channel and foster the ambition, hard work and determination a bright young franchise owner would bring to their network. With exam results on the horizon and career paths stretching ahead, this is clearly the optimum time to start engaging with millennials fresh out of college or Millennials are a hot topic of conversation at university. Given there is the moment. Born between the early 1980s an enormous and diverse and the 2000s, they have grown up in a tough With exam results range of businesses to economic environment and often have first-hand on the horizon, choose from, franchising experience of the harsh realities of being part of this is clearly the offers millennials a the labour force. They have witnessed a global optimum time to world of opportunity recession, a staggering hike in university tuition start engaging to explore. It is up to us fees and a job market leaning more heavily toward with millennials to open the door and short-term contracts than full-time jobs. welcome them in because I was recently invited to take part in an event we will all enjoy the benefits of their at a local college, which was aimed at inspiring aspirations. students to flex their business muscles and fire up It is a win-win situation for young their entrepreneurial spirit. The experience made me franchise owners and franchisors. And think about how we should be actively encouraging you donâ&#x20AC;&#x2122;t need a university degree to ambitious young people â&#x20AC;&#x201C; namely millennials â&#x20AC;&#x201C; into work that out. the world of franchising. July 2016 | elitefranchise

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07/07/2016 14:48

PEARSON FERRIER

HOME RUN As estate and lettings businesses go, Pearson Ferrier may be the new kid on the block but it is already building on its north-western roots and is set to take on the UK BY JOSH RUSSELL

roperty has proven to be a very tricky market to get right in the last couple of decades, with shaky economic circumstances driving many estate agents out of business. But, thanks to some astute decisions, one estate and lettings franchise, Pearson Ferrier, has gone from strength to strength. Mitchell Pearson, the company’s cofounder, has always been something of a self-made man: not long after leaving school, he started to look for opportunities that would allow him to own his own business. “My family had brought me up around horses so we’d always been cheek to jowl with farmers,” he says. Because of this, in 1982 Pearson bought a milk round, something that over the

elitefranchise | July 2016

next 11 years taught him many of the disciplines involved in running his own business, from time-keeping to customer satisfaction. Unfortunately, he eventually found the work was taking its toll. “I was working very early mornings and, in some cases, quite late at night; it was really getting on top of me,” he says. “So in 1992 I decided to sell everything.” Looking to put the capital he’d unlocked to work, he began to buy property through a local branch of Nationwide, the estate agents, something that brought him into contact with its manager Julian Ferrier. “He had a great track record in the business and we struck up a friendship,” Pearson says. Having added a few properties to his

PEARSON FERRIER

THE RECESSION BIT HARD, BIT DEEP AND LASTED MUCH LONGER THAN ANY OF US HAD EXPECTED portfolio, Pearson began craving a more active role. Attending an interview for a sales negotiator position at Nationwide he’d seen advertised in the local paper, he once again found himself sat across a desk from Ferrier. “I became his understudy at Nationwide,” he says. “And we worked well together.” Before long though, London started calling for Ferrier. “He had a change of heart and decided that the Smoke was the place for him,” says Pearson. Consequently Pearson found himself managing the Nationwide office until local businessman Bill Howard offered him the chance to enter into a partnership, an opportunity he jumped at. “The corporate ladder I was on wasn’t really my scene,”

explains Pearson. “I’ve always been self-employed and in charge of my own destiny.” When Howard and Pearson came to open an office in Ferrier’s hometown of Ramsbottom, he was the natural choice to take the helm as manager. “And, not long after that, Julian and I decided that we should buy Bill Howard out,” he says. “That’s how we formed Pearson Ferrier.” And the business took quite a different approach to its contemporaries; the duo decided to buy a local lettings business, something that was fairly uncommon for estate agents of the time. “They were resistant to lettings agents,” Pearson says. “They saw it as a problematic market and a poor relation to estate agency.” For a time, it seemed like the naysayers would be proven right: despite having a local portfolio of 50 houses and putting out adverts in the local press, very little happened for weeks. “Then, all of a sudden, a lightbulb came on and the buy-to-let boom began,” he says. From here, Pearson Ferrier began seriously ramping up its growth. By 2007, it had opened seven offices employing 50 people and was planning to open around four locations a year for the next five years. “The future was mapped out for us and we weren’t looking back,” he says. “But then the recession hit.” This required the founders to make some very tough choices and they decided to scale the business back to four offices. “I’m very glad we did because the recession bit hard, bit deep and lasted much longer than any of us had expected,” he says. It wasn’t really until 2013 that the market began to show signs of recovery, thanks in no small part to the launch of the government’s Help to Buy scheme. Pearson Ferrier decided the time was ripe for expansion once more. “We were still young and ambitious enough to move forward,” Pearson says. “After all, anybody who sits still really goes backwards in this market.” July 2016 | elitefranchise

pearson ferrier

All of a sudden, a lightbulb came on and the buy-to-let boom began However, one problem the business had run into during its previous expansion was the question of motivation: it was hard to properly incentivise employees and ensure their interests were aligned with those of the business. “We thought it would make sense to have someone who had a vested interest in each office that they opened,” he says. “And it wasn’t long before the word franchising came up.” Despite its lengthy track record in the estate and lettings market, the founders were eager to make sure that the business would lend itself well to a franchised model. “We wanted to be working above board and make sure our brand was franchiseable,” says Pearson. To that end, Pearson Ferrier sought out the assistance of The Franchising Centre, which guided it through a rigorous testing process and helped the founders round out its model. Before long, the franchise had signed its first franchisee in Bolton and many more followed after. “The first two or three are the hardest,” he says. “But, as the brand grows, selling the service becomes easier.” Pearson Ferrier has a specific set of criteria to help identify which franchisees are most suited to sit at the helm of one of its franchises.

We were still young and ambitious enough to move forward

“It’s not an easy business; there’s an enormous amount of competition,” says Pearson. “But if you are committed, prepared to work hard and willing to integrate yourself into the local community, then you can make a success of it.” While past experience of the industry isn’t necessary, having professional contacts in the area can prove very valuable indeed. “It also helps if people have been self-employed before so they are aware of the ups and downs of running a business and the fact that it isn’t all cakes and ale,” he says. But franchisees aren’t just left to face things on their own: Pearson Ferrier has a comprehensive programme of support to help new recruits get up to speed. “Prior to the opening of the office, we immediately go down to the area to start a marketing campaign,” Pearson says. By helping them to get the word out using the local press, flyering and going from door-todoor, Pearson Ferrier helps ensure franchisees have a healthy customer base from the off. “On opening a new location, we will stay with the franchisee and have onsite training for at least two weeks,” he says. “And, afterwards, we are available via Skype and are able to go back down to an area at various times over the next six to 12 months.” Thanks to this, Pearson Ferrier is going from strength to strength. Not only has it opened 15 franchised locations across the north west in the last few years but it has made some serious inroads down south, opening locations in Bath and Gloucester. “Our target within the next three years is to be approaching 50 sites across the UK,” says Pearson. And, in addition to the introduction of commercial wing catering to everything from corner shops to industrial parks, Pearson Ferrier is also in the process of introducing a property maintenance arm. “That will enable us to offer a much better service to our landlords and indeed the general public,” he says.

elitefranchise | July 2016

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07/07/2016 14:48

Don’t just invest in a business... I can hardly believe how fast the time has gone since I joined The Original Poster Company greeting card franchise as Business Development Manager. It’s already six months and this being my first role in franchising - it’s been a huge learning curve. It’s been an exciting period of change for OPC too. I’ve been lucky enough to be part of the nationwide roll-out of our new cloud and iPad based invoicing system called ConsignPak – and I love it! To be honest, with the wide variety of ranges OPC offers, it seemed that I would never learn the names of all the ranges - I constantly referred to our blank photographic range as Animal House confusing everyone as our longtime best-selling range is called Animal Magic! The best part of these past six months has been meeting and spending time with the franchisees in my area – or my Southern team as I have come to call them. They have all helped me settle in and are a great source of information and handy tips on product, merchandising and all other aspects of the business. As a result, I now can quickly recognise what a good profitable display looks like and this goes to show just how extensive the knowledge and support within a franchise network can be and how powerful the franchise business model is. Now I can return the favour by putting my knowledge to use with the new technology involved in ConsignPak – I’m in my element! It has been fun being part of the launch of this system and it’s so rewarding to see franchisees not only embrace the technology but start reaping the benefits it immediately brings to their business – from the very first store they merchandise. If I had a down side to the job, I think it would be the traffic. It seems to follow me everywhere but … ever resourceful, I’ve listed my favourite hotels, the routes to avoid and most importantly – I finally have a coffee cup holder for my car. I can’t help but feel excited about being in franchising. I can only look forward to seeing what my team and I, together with the rest of the OPC franchise can achieve.

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...INVEST IN A TEAM www.originalposter.com 01932 267 300

The Original Poster Company Original Poster Company.indd 1

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07/07/2016 09:25

Scotland

Great Scot Franchising is beginning to amass more of a following north of the border. But what will it take for Scotland to truly embrace the model? by Alex Littner, managing director, Boost Capital

cotland has a strong tradition of entrepreneurship. Scots invented the television, telephone and radar technology, while the country also boasts a whole host of big business names from steel magnate Andrew Carnegie to, more recently, Michelle Mone and Tom Hunter. But one type of business ownership has not always proved popular north of the border, with the number of franchises remaining low compared to much of the UK. Fortunately this is finally beginning to change. So what is now driving Scottish people towards franchises? Where is the growth and how is it funded? And how might Scotland’s franchising scene look in the future?

Analysis.indd 1

From small beginnings Currently, Scotland has one of the lowest rates of franchise ownership in Britain, with just 5% of the UK’s units based in the country, according to the latest figures from the bfa. Only Wales and Northern Ireland fall lower in the rankings. However, the franchising landscape is shifting in Scotland – and quickly. Franchising contributed £800m to the Scottish economy last year, a 14% increase over five years. And the bfa predicts this figure will hit the £1bn mark by 2020, reflecting a growing appetite for franchise systems among the Scottish population. There are more than 2,200 franchises in the country at present, employing about 32,000 people and representing more than 500 brands. And experts suggest the relative immaturity of the franchising industry in Scotland represents a tremendous growth opportunity – one that many enterprising Scots are beginning to realise.

elitefranchise | July 2016

07/07/2016 14:49

Scotland

This is one of the reasons the bfa held Scottish Franchise Week from May 16 to 20, the 12th such event celebrating the country’s existing franchising successes, as well as encouraging others to invest. But the question remains: why is franchising only now flourishing so far north? And what is the state of the Scottish business ecosystem? Geography is certainly a factor. Evidence shows that franchises tend to cluster in urban areas. While Scotland has significant conurbations in the south, it also has one of the lowest population densities in Europe, with many inhabitants scattered between villages, isolated towns and islands. On the upside, the country’s birth rate is now growing and it has increasing levels of inward migration – all good news for the economy. However, the economic effects of fiscal devolution – Scotland recently gained control over its own income tax as part of its deal with Westminster after 2014’s Scottish independence referendum – have yet to be seen. A mood of optimism gripped the country after the success of the Scottish National Party in the 2015 general election but falling oil and gas prices have dented business

confidence, with small firms in Scotland recently found to be at their lowest ebb for three years. Add to this a further possible vote on independence following the referendum where Britain opted to leave the European Union and it’s understandable why Scottish businesses are a bit uncertain about the future.

The number of franchises remains low compared to much of the UK, though this is beginning to change

The security of franchising So the economic backdrop in Scotland is a mixed picture. But these variables may explain why those who want to be their own boss are considering more secure forms of enterprise ownership than launching a startup. When many Scottish small businesses closed their doors in recent years, franchising largely weathered the storm. At the worst points of the downturn, Scottish franchise numbers stumbled a little but not dramatically – and they’ve since made an impressive recovery. It’s no surprise, since everyone knows franchises have a lower failure rate than independent, standalone businesses. It may be linked to the backing given by the parent franchisor, the fact that owners are operating a tried and tested business

formula and because a recognised brand attracts consumers who prefer giving their money and custom to a known entity. Whatever the reasons, the franchising formula appears to be working for many Scots and it’s attracting more who want their own operation with minimal risk. Growth and how it’s funded Scotland has followed general UK trends in franchising, with fastfood operations, as well as hotel and catering businesses on the rise. Personal services are also proving popular. In particular, one Glasgowbased franchising expert labelled last year ‘The Year of the Dog’ due to a rush of interest in dog-walking, grooming and kennelling franchises. He put this growth down to the low barriers to entry: minimal investment July 2016 | elitefranchise

Analysis.indd 2

07/07/2016 14:49

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Scotland

When it comes to funding business investment, most Scottish entrepreneurs remain conservative in their behaviour

costs, few overheads and the ability of franchisees to work from home without premises. With about one in four Scots owning a dog, it’s not surprising such businesses are proving successful. But when it comes to funding, most Scottish entrepreneurs remain conservative in their behaviour. Information doesn’t exist detailing franchising finance north of the border but the Scottish Parliament has said that fewer than one in three Scottish SMEs has heard of alternative funders, such as asset finance, crowdfunding or short-term providers operating online. Most still depend on friends, family, personal funds or bank loans and overdrafts for business capital. Alternative-finance providers clearly have work to do to raise awareness among Scotland’s business community of the range of funding options available. 36

Analysis.indd 3

Points of difference It’s also worth noting Scotland has its own legal system and, while business matters are similar to the rest of the UK, there are areas where things differ. For example, franchise agreements made on one side of the border may not be enforceable on the other. Say an English franchise with an agreement drafted under English law recruits a Scottish-based franchisee. It’s necessary for both parties to check that there are no acts of parliament – either from Westminster or Holyrood – that do not apply in the other country. These variations only look set to increase now Scotland has powers to collect its own taxes, so the help of an experienced franchise lawyer with knowledge of the Scottish law is vital before any agreements are signed. Very often they will only need to draft a document known as a Scottish Addendum to attach to the franchise agreement but it is a necessary step in the process. Equally, if a franchise operates in a sector requiring membership of a governing body – for example, a care-home franchise or education-related operation – Scotland and England often have different regulators, so franchise agreements must be amended accordingly. And, finally, Scottish law is very different when it comes to property issues, so any lease agreement must be put in front of a Scottish property expert before anything is finalised between franchisor and franchisee. The growth in Scottish franchising is genuinely exciting and, with the country’s already rich and diverse economy, proud business heritage and enterprising population, it has tremendous potential. Franchising has a great track record of creating wealth and employment elsewhere in the UK and with the right funding, business support and a healthy dose of ambition, Scotland can follow suit.

elitefranchise | July 2016

07/07/2016 14:49

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Insurance claims management & building repair

The Concept Building Solutions WORK VOLUME

GUARANTEE... C

As part of our summer recruitment, Concept Building Solutions are coming to Swindon on the 15th and 16th of June at the Hilton Hotel Swindon and we would love to discuss our exciting franchise opportunity with you.

Due to continued success in acquiring new business, leading claims management franchise Concept Building Solutions now need to recruit new professional, focussed partners quickly for the upcoming months. To speed up the recruitment process Concept Building Solutions are providing a Work Volume Guarantee that a new franchisee will receive in the first year of trading.

HOW CAN WE DO THIS? We already have claims coming through the door in your area and we need you to manage them. The work is there, ready to be serviced, for this reason we are extremely confident that we are able to deliver on our promise. What happens if a new franchisee does not receive the volume of work guaranteed in the first year of trading? Then we will not charge the management service fee in the month where the volume guarantee was not met - worth ÂŁ700 a month!*

Come and explore Concept Building Solutions and uncover how you could earn a six figure sum and be part of the UKâ&#x20AC;&#x2122;s leading insurance claims management franchise. To arrange a one on one meeting with a member of our team please do not hesitate to contact us.

* Subject to Terms and Conditions

0800 037 0315

Telephone: 01772 799 750 (Head Office) Email: info@concept-solutions.co.uk follow us on twitter: @conceptCBS like us on facebook: conceptbuildingsolutions

www.conceptpropertyclaims.co.uk CONC003

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31/05/2016 14:54

ADVERTISING FEATURE

Xpert care

HomeXperts provide their franchisees with top-class training and support

f you are interested in running your own business where you will have an impact on the everyday lives of others, it’s worth putting serious consideration into the estate and letting agency sector. Helping people move into their dream home is both a dynamic and emotionally rewarding career, and one in which you’ll learn fresh skills and meet lots of new people. When going into a new business it’s important to evaluate exactly where you want to be in several years’ time and what you are going to do to achieve that. Franchising is an exceptional option as you will benefit from a nurturing environment and a team to help you to set up your business, so you can hit the ground running. The bfa / NatWest Franchise Survey 2015 showed that 95 per cent of franchises are profitable after three years, compared to just 20 per cent of independent businesses after the same time period. Once you have decided what type of franchise you want, look at what support the franchisor provides. One company that offers a comprehensive support package is HomeXperts, who have established a multi-award-winning brand with a forwardthinking approach. HomeXperts takes control of all back office administration so that franchisees can focus on winning new business. The innovative cloud-based HomeXperts Hub gives franchisees 24/7 access to all the materials they need to constantly improve their business. The way people search for property has changed over the years, with most people turning first to online portals, such as Rightmove or Zoopla, when looking for a new home. As a result, delivering world-class customer service is becoming of increasing importance for the consumer-focused property market. As well as giving franchisees access to the most popular portals, HomeXperts encourage franchisees to incorporate social media in their marketing – platforms where video sharing at the click of the button can reach a targeted audience. HomeXperts also provide continuous training. Sussanne Chambers, Founder and Managing Director of HomeXperts and EWIF Woman Franchisor of the Year, confirms: “Our initial twoweek intensive training academy helps all our franchisees get up to speed quickly in the property industry, resulting in recognised qualifications from the National Association of Estate Agents and the Association of Residential Letting Agents. With 20 weeks 38

Investment Level: £10,000 or more depending on territory size of ongoing mentoring and support, we ensure our franchisees have all the help they need to hit the ground running. “We will guide you through the launch process of your business including helping you to form your personalised development plan. We will provide quarterly franchisee conferences, monthly business reviews and twice-weekly webinars, so that you have all the support you need to establish your business successfully.” HomeXperts lead the way in delivering top-class client services with a proven, industry-leading franchise model. It is this that in 2014 and 2015 helped HomeXperts to win gold for Best Estate Agency Franchise at The Sunday Times Awards and the bronze award for The Sunday Times’ Best Lettings Agency Franchise in 2014 and 2016. Sussanne continues: “We want to work with ambitious people with a passion for property who want to secure a prosperous future working for themselves. Many of our top-earning franchisees had little to no previous experience in the property market. By following our proven franchise model, however, and delivering exceptional service to their clients, they were able to join the HomeXperts ‘Altitude Club’ by generating over £25,000 in a month in invoiced commissions. “Our franchisees are self-motivated individuals who are enthusiastic about establishing new customer relations. With a positive, dynamic attitude, they are willing to go the extra mile to build a profitable, sustainable business.” HomeXperts are currently looking to expand their franchise network further across England as well as into Wales and Scotland.

elitefranchise | July 2016

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Interested in Starting an Estate & Letting Agency? 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 



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 



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



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

HOME002 Untitled-3 1 advertorial Jun16.indd 2 Home Xperts

07/07/2016 12:04 18:15 03/06/2016

COFFEE-BIKE

BREWING

SUCCESS

Tobias Zimmer spills the beans on how slinging java enabled Coffee-Bike to expand from the streets of Germany, across the globe and onto British shores BY ERIC JOHANSSON

hilst the parallels between poultry and prepping espresso shots might not be immediately clear, chasing round after chickens taught Tobias Zimmer everything he needed to know about the world of business. In the six years since Zimmer, co-founder and CEO of Coffee-Bike, first launched the mobile coffee franchise in Germany, he has never forgotten the lessons he learned from his earliest entrepreneurial experience. “As a child, I used to take the eggs and sell them around the neighbourhood,” he says. The experience firmly instilled in him one of enterprise’s toughest home truths: there is no such thing as a free lunch. “My parents told 40

elitefranchise | July 2016

me that if I made money then I had to buy the chickens’ food,” recalls Zimmer. Covering the expenses of keeping poultry slashed his profits but taught him the benefits of growing a business. “On their own, two chickens weren’t profitable, so I had to double the number I kept,” he explains. “Ultimately, I ended up having over 50.” Zimmer’s enthusiasm for keeping his feathery friends faded as he grew older. “About the time I turned 12, I realised that running a chicken business wasn’t a cool thing to do,” he laughs. But before long he was ready for another shot of entrepreneurialism. “I started my first real company when I was 16,” says

Zimmer. “It was a small agency that helped people sell products on eBay. It was usually more senior people who weren’t that tech-savvy and didn’t understand the internet properly.” Through these entrepreneurial endeavours, Zimmer managed to fund his studies at universities in Marburg, Leipzig, New York and Seoul, eventually securing an MBA and a business administration diploma. Still, Zimmer’s earlier experiences of keeping poultry and trading on eBay had given him a taste for the startup life and fortunately his childhood friend Jan Sander was of a similar mind. “We’d always talked about starting a business together,” says Zimmer.

COFFEE-BIKE

THEY TOLD ME THAT I WAS CRAZY FOR WASTING MY DOUBLEDEGREE ON SELLING COFFEE ON A BIKE

The spark that led the two entrepreneurs to found Coffee-Bike was ignited during a holiday in Denmark. “We were in a park and saw a man selling coffee from a bike,” he says. “The coffee wasn’t very good. It was cold and of low quality but people still bought it. Watching him, I couldn’t stop thinking about what kind of margins he must’ve been making.” Zimmer realised that he and Sander could easily slash many of the overheads facing regular coffee shops – such as rent – by emulating the man from the park. “The basic idea of CoffeeBike came from that moment,” he says. However, turning that grain of inspiration into red hot reality wasn’t without challenges. For starters, the friends needed funding for their enterprise. Like many do in times of adversity, the two entrepreneurs turned to friends and family, asking them to help fund the venture. While some eagerly embraced their vision, others were not as easily persuaded. “Some of my friends were really sceptical,” laughs Zimmer. “They thought I was crazy for wasting my doubledegree on selling coffee on a bike. They were like: ‘Are you kidding me?’” Still, enough of their nearest and dearest believed in the idea for Zimmer and Sander to begin to lay the company’s foundations. “We started building our first coffee-bike in our parents’ garage,” he says. Doing so enabled them to focus their limited funds on the hiring of engineers to provide support and technical July 2016 | elitefranchise

coffee-bike

knowhow on the best way to make the bike work. “Before long, we had two prototypes that Jan and I took out and sold coffee with.” However, that first excursion slinging java on the streets of Osnabrück in 2010 only marked the start of an intense 12-month testing period. “We sold coffee from Thursday to Sunday, raising some revenue and writing down adjustments we needed to make,” explains Zimmer. We started “From Monday building our first to Wednesday, we implemented the coffee-bike in our improvements parents’ garage before hitting the road again.” The testing period also uncovered an unexpected challenge. “We didn’t anticipate the technology would become so expensive,” confesses Zimmer. Part of the reason for these spiralling costs was the fact that the technology didn’t just have to enable the bikes to produce high-quality coffee for passers-by; the founders also had to ensure the bikes followed health, safety and traffic regulations. “We thought we’d have to spend €30,000 or €50,000 on tech,” the javaslinging entrepreneur says. “In the end, we spent more than €600,000.” With the tech in place and the coffee-bikes up and running, the company quickly grew to having six bikes in two cities in 2011. But this success presented them with new hurdles to overcome. “We reached the point when we were working about 17 hours a day,” says Zimmer. “Another problem was that each coffee-bike was more profitable when Jan and I operated them. We realised that, to make a profit, we needed the guy operating the bike to be an entrepreneur just like us, someone who really identified with the bike.” Wanting not to fall victim to their own success, the partners decided to franchise the company. And they were clear from the get-go about what attributes prospective 42

franchisees should have. While other franchisors might rely on technical knowhow, the new crop of Coffee-Bike franchisees would need to be naturally social. “That is really important,” says Zimmer. “This is a people-based business; it’s all about personality.” But even though Coffee-Bike looks for people skills over technical knowhow, Zimmer reveals that there is still one thing he searches for on prospective franchisees’ CVs. “I want to see that they finish what they start,” he says. “Whether it’s university studies or being in selfemployment, it is important that you’ve seen it through to the end.” The approach has resulted in a surprising blend of recruits. While some of Coffee-Bike’s franchisees have spent their careers behind supermarket tills, others have abandoned high-paying bank jobs to serve up lattes. And this franchisee recruitment strategy has proven successful. Since Coffee-Bike first took to the streets of Osnabrück, the company has expanded to having over 100 franchisees in Germany and has also successfully set up shop across Europe as well and has established a base in locations such as Qatar and India. And, in May of this year, the company launched its first franchise in the UK in Trowbridge. “We did a big market study of all European countries and realised that the UK was the most interesting for us,” Zimmer explains. More UK franchisees are set to follow in the coming months. These new franchisees can rest assured that the two founders understand the hardships of serving up cups of joe on the streets. “There were some really challenging times along the line,” concludes Zimmer. “But, in the end, it has all been worth it.”

elitefranchise | July 2016

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The Ultimate Professional Franchise Opportunity

An IFG Franchise provides you with an opportunity to earn an above-average return on your working capital, plus: • No Long Hours or Extensive Travel • No Employees • No Inventory or Equipment Get the full story today. Contact us at 0845 834 0332 or ifg@interfacefinancial.com

www.interfacefinancial.co.uk/franchise INTE002 IFG June16.indd 1

03/06/2016 13:47

Profit from print with Cartridge World Delivering cost saving print management services Office printing is a highly lucrative £90bn market. With a Cartridge World franchise you’ll be part of it, providing SMEs with a local print management service that offers up to 30% cost savings. • Perfect for ambitious, sales-driven people • Sales are largely on contract, guaranteeing cash flow • Full support and guidance from day one • Part of an established global brand • Access to industry partners to help your business grow

A business-to-business print services opportunity Leading franchisor Cartridge World developed Cartridge World Print Services -- a flexible print management service for its franchisees to sell to thousands of small and medium-sized businesses. For a fixed monthly fee, Cartridge World manage their printers, provide an automated supply of printer cartridges, paper and ongoing maintenance. Most importantly, it delivers tangible customer cost savings. “Research shows 90% of businesses have no idea how much they spend on print,” says Cartridge World’s General Manager Gavin Askew. “Cartridge World Print Services capitalises on this. It’s a simple, cost effective way of running their business printing with savings of up to 30%.” “Our franchisees benefit from in-depth support at every level of their business,” says Gavin Askew. “They also have access to our industry partners, giving them the opportunity to offer print hardware/software solutions, full service and repair contracts and finance, if required.”

Contact our franchise sales team for more information: Phone: 01423 878 528 Email: franchise@cartridgeworld.co.uk www.cartridgeworld.co.uk/franchise CART001

Franchise fees

What’s the deal? Before buying a franchise, it’s worth considering what exactly you’re paying for and, just as importantly, whether you can afford it, says Carl Reader in The Franchising Handbook

ne of the key things to consider when looking at a franchise is the affordability of the initial franchise fee and associated startup costs, such as working capital and any stock or assets that are required to get the business off the ground. In fact, in my experience, this is usually the main limitation that most franchisees have and plays a huge part in the selection process. I’m fairly confident that a vast number of franchisees spend as much as they can afford – both through personal and external funding – so being clear on affordability levels is vital when starting to consider your options in franchising.

Understanding the principles of funding Even if you are able to fund the entire startup costs of the franchise personally, it may be preferable to source external funding for a proportion of the costs. But, before you even attempt to gauge how much you can afford, it’s important that you fully understand the basic principles of external funding.

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Franchise fees

In particular you should consider both what the banks would look to receive from you and how much they would be prepared to fund you in the new venture. The general rule of thumb for financing a franchise is that the banks will lend up to 70% of the initial capital requirement for an established, successful brand. Advertising of initial franchise costs One of the areas where you will need to proceed with caution is in respect to the figures advertised by franchisors as the initial cost. From a franchisee’s perspective, this is one of the challenges raised by the fact that the industry is unregulated. The only exception to this is the Code of Ethics that is voluntarily adopted by all bfa-member

franchisors. Section 3.1 of the bfa’s Code of Ethics states: “Advertising for the recruitment of individual franchisees shall be free of ambiguity and misleading statements.” Whilst this means that any advertising must be free from factual misstatement – such as advertising the franchise fee as £10,000 when it is actually £15,000 – it does not dictate how the initial investment should be disclosed, if at all, nor does it state how this figure should be calculated. Prospective franchisees should therefore consider whether any amounts quoted are for the franchise fee only, the franchise fee plus required purchases from franchisor or if they include additional working-capital and asset-purchase requirements to start trading. Funding requirements over the initial franchise fee The working-capital requirements of a business depend on many things, not least the type of company that you are running and the nature of the cash flows within that business. Broadly, there are two different types of funding required above the initial franchise fee.

Asset funding For most franchises, particularly those outside of the home-based, business-to-business sector, there will be a requirement to purchase some assets. This requirement might simply be for an initial stock of items – for example, a footballtuition franchise might be required to only purchase some footballs and children’s football kits. However, this will often be a wider ranging requirement. Depending on the type of sector, you may be required to fund the purchase of items such as shop fittings, kitchen equipment, vans, tools and computer systems. Working capital requirements The other funding requirement over the initial franchise fee is working capital. Every business has some form of working-capital requirement, which

Being clear on the affordability levels is vital when starting to consider your options in franchising

July 2016 | elitefranchise

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Franchise fees

is simply to fund the time between work being commenced and a customer paying for its completion. The working-capital requirements can be established from a business plan and will form part of the funding requirement of the company. Payback period One of the things that you should consider when looking at affordability – and ultimately appraising the investment – is the payback period for the franchise investment. Whilst the payback period varies depending on the type of franchise, the level of head-office support and, most importantly, the input that you put into the business, it is still a metric that you need to consider. Generally speaking, the payback period on a management franchise would be longer than the payback on an owner-operator franchise. This is because you, as the franchisee, are effectively subsidising the business for the cost of labour for actually doing the job. As this period can vary from franchise to franchise – and can ultimately be dramatically affected by your own business performance – I wouldn’t get too hung up on this statistic. However, I certainly would look to acknowledge this within your projections and be aware of the payback target for your investment.

Every funder will be looking for you to have some skin in the game

Personal risk appetite Another area that you need to take into account is your appetite for risk. As mentioned above, the banks want to see that you have taken an impartial and informed view of the risks involved in running the business. And, perhaps more importantly, they want to make sure that you share the risk with them. Every funder will be looking for you to have some skin in the game and this would ordinarily be through a combination of personal funding, security over assets and the right motivation to grow the business. On the face of it, a larger investment will carry a larger risk because the security over personal assets and the initial capital requirement from you personally will be greater. You also need to consider the risk of the franchise itself. Clearly an investment in a well-established, successful brand such as McDonald’s – although higher in terms of pounds invested – should be a safer bet than a franchise that hasn’t been set up properly, nor tested through a pilot operation. Only you will be able to decide the right level of risk that you are satisfied to accept and again it comes back to the key skill of separating your emotions from the logic of deciding whether to purchase the franchise.

The above is an exclusive and abridged extract from The Franchising Handbook by Carl Reader. The book is due to be published on July 14 and will be available from Amazon and all major bookstores. 50

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FREE 1 HOUR CONSULTANCY M ORRIS & C O M O CHARTERED ACCOUNTANTS CO SPECIALIST FRANCHISE ACCOUNTANTS 0151 348 8400 franchise@moco.co.uk www.moco.co.uk/franchise Some of the services/advice we offer to franchisors and franchisees include:

■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

Fixed annual fee quote FREE telephone support for general business advice, taxation and VAT Review of business plans and cashflow projections Year end accounts Corporate and personal tax Grooming your franchise for resale BACS payroll service/auto enrolment Xero online accounting software Mid-year planning sessions to improve your bottom line Benchmarking Choosing the best structure for your business

As specialist franchise accountants, Morris & Co are proud to be an Affiliated Professional Advisor of the British Franchise Association (BFA). We are the preferred accountants for several franchise networks and use our extensive knowledge of franchising to provide tailored services to fit your specific needs. We work with you to improve the profitability of your business and ensure that you pay only the minimum amount of tax. We have a dedicated specialist team headed up by Desirie Lea who is one of the few accountants to have been awarded the coveted QFP certification and regularly undertakes training seminars on behalf of the BFA and various franchise networks.

Please contact Desirie Lea QFP on 0151 348 8400 or email franchise@moco.co.uk for more information. JOSE001 Untitled-3 1

07/07/2016 18:17

OVER TWO DECADES OF SUCCESSFULLY SETTING Cleaning

Cleaning

ESTABLISHED

LEN DONNELLY

1993

“The Dublcheck Franchise was U.K. based, was relatively recession proof and was a basic business concept easily scalable. Most importantly of all it was backed by the support of an established Franchisor that really appealed to us” - Mark

Previously Retail Manager

93-2013

Purchased resale Current turnover £350k

PETER & DENISE Previously Logistics Manager Starting turnover: £48k Current turnover £140k

MARK & JAMES Previously Textile Manufacturers

“Once I met the Dublcheck team I found the concept of commercial cleaning very appealing” - Joanne

CH BL E Franchising

JOANNE Previously Project manager at Bank of Scotland Starting turnover: £50k Current turnover £200k

Current turnover £620k

Franchise owners say:

PEOPLE UP IN BUSINESS

“We found Dublcheck during our research into the franchise industry and immediately liked its concept of guaranteed turnover*, with Dublcheck finding your clients and guaranteeing the level of turnover you desire.” - Peter

“A big thank you to the Dublcheck team, and o receive an award was brilliant” - Len “Sonal and I can’t belive a year has past since we decided to join this wonderful franchise. We both wish we had done this years ago.” - Mitesh

SONAL & MITESH Previously Quantity Surveyor Starting turnover: £14k Current turnover £150k

BUILD YOUR BUSINESS THE EASY WAY LARRY

NO NEED TO DO ANY SELLING... WE GET THE BUSINESS FOR YOU!

GRAHAM & JAN

We Guarantee:

Previously Finance Director Starting turnover: £60k Current turnover £250k

• Turnover • Growth • Support

Previously Police Officers Starting turnover: £48k Current turnover £200k

Full training, support and low investment Invest from £9,950 to £190,950. Turnover from £12,000 to half a £1/2 Million per annum. With over 100 franchisees nationwide, and many more areas and opportunities available, you too could benefit from the proven Dublcheck system. Dublcheck’s unique franchise system is a proven way to build a successful business in a multi-billion pound cleaning industry.

Further Details:

0800 317236

email: franchise@dublcheck.co.uk web: www.dublcheck.co.uk

Dublcheck, The 20th Fastest Growing Company in the UK - Official Source, Sunday Times

FULL MEMBER

*Guarantee turnover is not a guarantee of profit. All figures correct at the time of going to press.

Carol Stewart-Gill, Founder and Chairman of Dublcheck

ADVERTISING FEATURE

Current Turnover in excess of half a million pounds

DUBL VISION Dublcheck co-franchise owners Mark Howarth and James Kitwood look back on their journey from single business owners to co-franchise owners and how it has changed their lives.

here is the old saying ‘it’s grim up North.’ Six ago years that was most certainly the case working in the cut-throat world of retail fashion manufacturing in Leeds. Dublcheck co-franchise owners Mark Howarth and James Kitwood had spent 20 years manufacturing garments for major blue-chip retailers such as Next, Ted Baker and Austin Reed. However, as for many companies in the UK whose businesses relied on the British manufacturing market, the writing was on the wall. Says Howard, “In the beginning business was quite lucrative and enjoyable, but slowly the times changed, as did the manufacturing locations for our products. Manufacturing in the UK became based in Poland, then Romania, Hungary, Macedonia,

China and India. I spent more and more time abroad. Slowly the worklife balance began to tip and my family life bore the brunt.” Working an average 40-hour week initially, that quickly became a 70hour week, Mark and James could no longer spend quality time with their families and when coupled with the gruelling travel schedule, both ended up with the same thought: ‘something has to change and we need some inspiration!’ A visit to The British Franchise Exhibition in 2009 led to a moment of inspiration. “In front of us was an array of different opportunities.” explains Kitwood. “Up and down the aisles, a discussion here, a goodie bag there, but none were exactly right, until we stopped at the Dublcheck stand.”

During the two-hour drive back home, Mark and James discussed what they had seen at the expo. Business after business was ruled out until they got to Dublcheck. After weighing up the pros and cons between their current role and what Dublcheck offered, both men realised that a Dublcheck Cleaning franchise might in fact be what they were looking for. “It was UK based, it was relatively recession proof and it couldn’t be outsourced abroad,” Howarth highlights. “It was a basic business concept that was easily scalable and most importantly of all it was backed by the support of an established franchisor and that was something that really appealed to us.” In June 2011 , Howarth and Kitwood took the plunge and bought an established franchise from another Dublcheck franchise owner who was looking to retire. The transition was not an easy one but they were helped by the mentoring system that Dublcheck had put in place where an established franchise owner offered guidance and advice for as long as it was deemed necessary. After three months of strong support and guidance, Howarth and Kitwood felt they were capable of spreading their wings and running the business. “With the continued support of Dublcheck and ideas of our own we continue to flourish as a business,” Kitwood reveals. July 2016 | elitefranchise 53

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07/07/2016 17:20

Targeting Generation Y

Children of the revolution Given Generation Y is transforming the world of business, if franchises want to successfully attract millennials they better tear up the marketing rulebook by eric johansson

f you’ve missed out the increasing obsession with Generation Y – the generation born between the years 1980 and 2000 – then you clearly haven’t been paying attention. After all, the press has been dissecting the impact the cohort has been having on marketing since Advertising Age first coined the phrase in an editorial back in 1993. While franchises have everything to win by turning the Zuckerberg-generation into customers, marketing to millennials is easier said than done. “The most important thing brands have to realise is that they need to say goodbye to the good old days of marketing,” says Amy Shaw, digital PR executive at Curated Digital, the digital marketing agency. According to a 2015 survey from Elite Daily, the publication dedicated to millennials, only one in 100 echo boomers – so-called because they are the echoes of the baby boomer generation – would trust a brand more due to a compelling ad campaign. “Millennials don’t take adverts at face value,” says Shaw. “For instance, if Coca-Cola tells them to buy their products for X, Y and Z reasons, they won’t just take the company’s word for it.”

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Targeting Generation Y

Because of this, franchises wanting to capture Generation Y’s attention better swap traditional marketing strategies for a slightly less orthodox approach, which – according to a recent survey from Protein, the communications agency – will help them appeal to 76% of millennials. And with 14.7 million potential Gen Y customers in the UK, franchises have everything to win by stepping up their millennial marketing game and addressing echo boomers with the right tone of voice. “A lot of people underestimate just how smart modern young people are,” say Kevin O’Connor, content marketing director at Greenlight, the digital marketing agency. “They think all the text-speak, emojis and acronyms currently flying around Snapchat are the only things Generation Y cares about.” Instead of simply hashtagging messages on Twitter and signing off adverts with LOL and OMG, franchises must recognise that Generation Y does not consist of one shallow homogenous group. “The term millennial can be a bit of a misnomer,” says O’Connor. “You have to break down millennials into different segments; they’re all different and respond to different things.” This isn’t hard to find evidence for: just consider that the pop queen Taylor Swift and the black metal band Ghost both rose to fame in the past decade.

Bearing in mind the multitude of differences displayed amongst members of Generation Y, franchises need to pinpoint exactly which slice of the millennial cake they want to take a bite off. “You have to know exactly which demographic you are pitching to because blanket efforts trying to reach all millennials won’t work,” says Shaw. But deciding who to target is just the beginning; franchises still have to research that group and find out which publications they read, how they spend their time and where they hang out online. Doing so will enable franchises to address Generation Y customers in the right way and to find out where the best place to start a conversation is. “If you notice that they have a strong presence on Facebook, then that’s where you need to be,” says O’Connor. However, even after pinpointing which social media platform their target audience hangs out on, franchises still face the challenge of making prospective A lot of people customers interact with them. For millennials to underestimate stop, read and listen, franchises must understand just how smart why Generation Y is also referred to as Generation Now. “They know what they want and they don’t modern young want to wait for it,” says Fiona Baker, head of people are franchise sales at Nicholas Humphreys, the lettings franchise specialising in student accommodation. Kevin O’Connor, Greenlight In the 18 years since it first opened for business, Nicholas Humphreys’ employees have witnessed the rise of Generation Y first-hand and therefore understand the need for speed. “So when we’re writing for Facebook, for instance, the key point needs to be at the very top,” says Baker. “It needs to be short and snappy, ensuring that they don’t scroll past it.” However, swiftness is also paramount in other ways. With the Elite Daily survey revealing that 37% of Generation Y takes the recommendations of friends on board, franchises cannot afford to offer poor customer service. “If they tweet at you, you better get back to them within five minutes,” says Shaw. “If you don’t, they’ll get more irritated with every tweet.” And while Generation X, the immediate predecessors of Generation Y, may have told a few of their friends when they were unhappy with a product or service, millennials can make their dissatisfaction known to hundreds of people with a single tweet. “They’ll voice their opinions,” says Shaw. The only way to ensure their sentiments stay positive is to engage with millennial customers quickly and in the right way. Having grown up in the fast-paced digital age, echo boomers have little patience for lengthy conversations. “People are July 2016 | elitefranchise

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Join Coffee-Bike! One of Germany´s fastest growing franchise systems! Operate your own mobile coffee shop and benefit from: • • • • •

Low initial investment No monthly fixed costs Royalties only on sold coffee specialities Individual training and ongoing support Brand concept and company culture

Work full-time or part-time and choose where you want to operate your bike: • • • • •

Greatest possible flexibility and mobility Private, public and corporate events No water or electricity connection needed Comprehensive product portfolio Sustainability and environmental protection

Join one of our upcoming Discovery Days:

Friday, 22nd of July (London) Saturday, 20th of August (Manchester) Sunday, 21st of August (London)

t. 0203 - 695 89 - 80 m. franchise@coffee-bike.co.uk w. www.coffee-bike.com/en

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COFF001 18:18 07/07/2016 16:53

Targeting Generation Y

becoming more and more unwilling to have a telephone conversation,” says Baker. In fact, according to a Salesforce survey from 2015, 34% of millennials would rather have their teeth cleaned than to call a support line. Instead of engaging with customers over the phone or meeting millennials face-to-face, Nicholas Humphreys has ensured that customers can interact with them via email, text messages and on social media platforms. “Why would you have a ten-minute conversation when you can simply send a text?” asks Baker.

They think textspeak and emojis or whatever acronyms are currently flying around Snapchat is all that Generation Y cares about Kevin O’Connor, Greenlight

But there are more ways to market to millennials than through your customer service and social media posts. Franchises can also boost their internet hit-rate by tailoring their content to the things millennial customers might google. “The first point of reference is always a search engine when they’re looking to buy something,” says O’Connor. This means franchises must ensure prospective customers can easily find their content through a search engine by using common terms and phrases. Franchises can also build their rep with Gen Y simply by doing good things, since millennials are widely known to have a strong social conscience. “They are huge advocates of gender equality, LGBT rights, minority rights and everything like that,” says Shaw. However, this cuts both ways: according to the aforementioned Protein survey, 77% of millennials feel that brands also have a moral responsibility to improve the world. “If a brand shows that it also has these core values at heart, then millennials are much more likely to get on-board with what they are selling,” continues Shaw. Yet, franchises don’t want to proclaim how important the environment if that statement doesn’t actually ring true. “You don’t want to con them,” says Shaw. “If you say you care about the environment, then people will research that; if they see that you haven’t even done a Twitter campaign, then they’ll become very wary of your brand.” Levelling-up your online marketing game, researching which segment of Generation Y you want to attract and speeding up your response time may seem like a lot of work but, ultimately, tapping into almost 15 million consumers will be worth it. July 2016 | elitefranchise

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Making our success part of your future Low investment <£5k, low running cost, no fees, high ROI with a family business manufacturing the Best Workwear and Footwear for 30 years For over 30 years, Mascot has been delivering the very best in workwear and safety footwear - and this is your chance to become part of its international success. Mobile Workwear is an innovative new franchise opportunity, bringing our range of reliable, hardwearing products to the businesses that need them most. Our success is built on being ‘tested to work’, from the products we offer, to our staff, suppliers and partners. As a franchisee, you can unlock the potential within that brand to create a mobile retail business limited only by your ambition. Low overheads, high earning potential and an unprecedented level of support, welcome to Mobile Workwear.

Mascot DPS Mar16.indd 1

04/04/2016 13:32

Fully sign-written van and mobile showroom

“Our franchisees should appreciate quality workwear, but don’t need to have a textile background. What’s most important is having people with drive and ambition, who are keen to benefit from our established brand, experience and products.” In addition to the low start-up costs and overheads associated with running a mobile retail service, each branded Mobile Workwear franchise will enjoy discounted samples. And, to keep costs down even further, we offer centralised accounts, stock and delivery control. Your five year renewable franchise agreement for Mobile Workwear requires an initial investment £5k, a leasing agreement for the van and a credit guarantee of £10k underwritten by your bank. From there, we can get you up and running straight away with product training, visibility on our website and full support from our dedicated team. You can contact us any time for help, or just to discuss plans and decisions you have to make.

For more information call: +45 87244700 or 07769 882775 email mobile.workwear@mascot.dk or visit www.mobileworkwear.com MASC001 Mascot DPS Mar16.indd 2

04/04/2016 13:32

Starting out

21 21 days later The first three weeks as a franchisee can be a tough gauntlet to run. Fortunately, our day-by-day guide should help newcomers find their feet BY Caroline Crabbe, general manager, Jo Jingles

1-3

Reality check: Once you have registered your business with Inland Revenue and have dealt with other important logistical requirements, such as setting up a business bank account, it’s time for a quick reality check. You’ve taken the plunge; launching your own franchise is a big decision. You might have chosen this route to gain a more flexible and beneficial work-life balance in the long term but remember: you’ve just begun. Establishing a franchise takes time, passion and a lot of self-discipline.

During the first week, take a breath: you’ll need to invest blood, sweat and tears into getting your new venture off the ground. That might mean less free time to begin with but later down the line the benefits and change in lifestyle can be dramatic.

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elitefranchise | July 2016

07/07/2016 14:47

Starting out

It’s true that any good franchisor will provide you with the support and tools you need to get your business off the ground. In many cases, you’ll be able to take advantage of a fully functioning marketing programme, nationwide advertising campaigns and an established brand reputation. But that doesn’t remove the need for you to market your franchise individually; ultimately this is your business and you are the only one who can make it a true success. The earliest days should be spent thinking about how you can let people know you exist.

That’s the spirit: To grow your franchise successfully, you need to have relentless drive, ambition and focus. A get-up-andgo spirit is essential, as is the motivation and the self-discipline to get out there and make things happen for yourself.

7-9

Getting to know you: You’ve invested money in a franchise so it goes without saying that you’ll quickly need to establish who your customers are. Spend time getting to know your consumer base in greater detail. In most cases, you’ll already have a good idea who they might be but you need to take that a step further. A good place to start is to develop your own audience character profiles.

Build a picture of what your customer looks like – there may be a few different types of demographic. Give them a name and a personality. What do they look like? Where do they shop? Where do they live? How much do they earn? How many children to they have? What do they wear? Where do they go and what do they like doing? The more detail the better because this information will help you market your business to the right people.

The earliest days should be spent thinking about how you can let people know you exist

10-12

4-6 Spreading the word: You – and only you – can ensure you’ll succeed as a franchisee and that means developing your own local marketing strategy from the outset. You have to tell the world you are here: no one will do it for you.

Act local: Adapt your marketing activity to local cultures and trends to make your business relevant to the audience you are targeting. The more people that identify with it, the more likely they are to take notice. Whilst you should make the most of the nationwide marketing programme provided by the franchisor, you should also still expect to invest time and money in doing your own marketing locally. It’s great to have nationwide appeal and recognition for your brand but use that success as a platform to create more local exposure for your business and you’ll reap the rewards.

Going public: Aside from marketing, public relations is another great way to explain your purpose, get your message across and explain to people why they should be interested in your services or product. Get to know your local media: find out what your local newspapers, magazines, local online news sites and TV and radio stations are. Do your research and keep in touch with local media on a regular basis, ensuring you share any local news about your business. When dealing with the press avoid the ‘big sales pitch’ and instead focus on stories, angles and ideas that will resonate with the readers of the publication. Journalists want good stories, not adverts. July 2016 | elitefranchise

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13-15 16-18 19-21 Starting out

Hungry for more: Once you’ve got your customers, you need to keep them coming back. So consider giving away freebies, sponsoring local charities or running special promotions, loyalty programmes, referral rewards and competitions. Getting social: Social media has given us the perfect platform for highlighting customer engagement and that gives you a real opportunity to boost exposure for your business. We live in a culture today where people like to talk about the things they are doing so it’s vital to set up your own social media channels from the outset – as long they are consistent with your franchisor’s policies.

Singing your praises: Happy customers tell other people so get your clientele to share their experiences and don’t be afraid to ask people for reviews; this is a great way to shout about your success. Most large franchises will have their own mainstream website but many are supportive of local-focused sites and social media pages too. Equally, join a local business committee to make contacts, spread the word about your business and share knowledge with other likeminded business people.

Know your enemy: Knowing who your local competitors are is vital. Do your research, follow them on social media, see what they are doing, who their customers are and what promotions they run. You can learn a lot from an already established rival. And remember there is plenty of room for a bit of competition, so don’t be afraid to be confident with your marketing.

Staying alive: You are almost a whole month into your launch at this point; you might have laid the groundwork but it doesn’t end here. You have to keep your franchise alive through your own passion and determination. If you wake up every day and love what you do, you’re on your way to a successful business because if you believe in it, others will too.

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elitefranchise | July 2016

07/07/2016 14:48

ADVERTISING FEATURE

A touch of gold Having proven itself as a shining light in the world of franchising, a business opportunity with Goldgenie is surely one not to be missed

oldgenie has established itself as the world’s premier customisation brand with over 18 years of experience and a high calibre of clientele from celebrities to blue-chip organisations – including Lexus, Honda, Toyota and Nokia, Blackberry and HTC.. Driven by award-winning entrepreneur Laban Roomes, who founded the business in 1995 and secured investment from James Caan on BBC’s Dragons’ Den, the business has seen exponential growth and now seeks motivated entrepreneurial individuals to grow the brand around the world. The Goldgenie Business Opportunity will allow any ambitious individual to establish and grow their

We provide you with the tools, the roadmap and the guidance to set up a proven business in your local area

own successful Goldgenie Certified Professional business by offering the attractive gold-plating service to clients. We provide you with the tools, the roadmap and the guidance to set up a proven business in your local area. This unique opportunity means that there are no franchise fees, no royalties or fixed overheads once you become a franchisee. As a partner you will receive advice, guidance and sub-contracted business leads directly from them when available. As a formal Goldgenie Certified Professional, you are supplied with a ‘business in a box’ which will include your plug-in-and-play gold plating system and everything that you could possibly need including: personalised business stationery, marketing materials and high resolution images for your own marketing needs, so that you can get started building your business straight away. You will also have an affiliate link that will give you commissions from sales off their website product range. With partners now working boasting clients including luxury car dealerships, yacht owners, jewellery stores, trophy outlets, manufacturers, churches and home and hotel owners, how you build your business is limited only by your imagination. Budding entrepreneurs will have complete flexibility and freedom in how they run their business. Not only will you be benefitting from over 18 years of experience - with access to a dedicated team of specialists to assist you with everything you need to start your business - you’ll be hitting the ground running. For more information please contact Frank Fernando on 02088046200 or email business@goldgenie.com July 2016 | elitefranchise 63

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07/07/2016 13:59

Productivity

Busy as a bee Low productivity might be an issue for UK plc but techsavvy franchisors are finding ways to get out of the slump BY jon card

K productivity, or rather the lack of it, has been getting a lot of attention of late. Government figures show that UK productivity per hour is 18% below the average for G7 nations. Suffice to say, the failure of British businesses to churn out as much as our rivals in other advanced economies puzzles both economists and policymakers alike. However, many feel that technology provides the perfect solution to Britain’s productivity problem, claiming that businesses don’t need to work harder but smarter. Indeed, research from Salesforce, the cloud-computing company, found that using mobile apps can boost an employee’s productivity by more than 34%. Meanwhile, 90% of respondents said apps had changed their behaviour, with many saying it helped them with multitasking.

Google apps For franchisors such as Jenny Williams, founder of The Detective Project, which hosts detective-themed parties and workshops for children, using tech is just part and parcel of how they operate. As Williams says, tech is a major driver of productivity in her business. “We use a number of Google apps, which have most definitely improved our 64

The biggest thing that can affect productivity is if a device is not usable Nassar Hussain, SOTI

productivity,” she explains. “Our business relies on a lot of different content. The ability to share and edit that among franchisees, rather than constantly emailing, makes it much easier and faster.” Williams says using templates and ensuring there are no compatibility issues is a major timesaver. Her workshops utilise video content but she shares this with franchisees and they then edit it according to their needs. “We also use iMovie, which is a really simple app that helps you create professional looking videos,” she says. “However, you don’t have to start from scratch. You just change a few slides and add a photo to your template, so everyone in my team can use the one I made.” For Williams, time management and technology go hand in hand, ensuring she can get the most out of the hours in the day. “I personally use online calendars to organise my day and encourage my team to do the same,” she says. Ensuring that all of the company’s franchisees are competent with technology

elitefranchise | July 2016

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07/07/2016 14:49

Telcoinabox set up, supply and support telecoms companies We give you the systems and tools to change your lifestyle. Create a successful business that fits in and around your family or other commitments. If you’re motivated and ambitious, a Telcoinabox business will enable you to have the work-life balance you choose — or dream of. Use your entrepreneurial skills to be your own boss, build your own brand and start up your own business. You’ll have the flexibility to work from home, or anywhere with a computer and phone, and to work when and how you want.

No telecoms experience required. We make selling telecoms easy through robust training and back end office support.

Sell once and receive monthly recurring revenue for the remainder of the contract - just like the large phone networks enjoy themselves.

Earning potential of £75,000+ per year within 2 years - based on adding only 6 small business customers per month.

4 5

No stock, no territories or retail store required. Sell under your own brand throughout the UK.

Proven business model – our model supports over 400 Partners worldwide, with over 75 Active Partners in the UK.

“Enabling passionate people. Igniting the entrepreneurial spirit. Enjoying the ride.”

0203 326 5550 | info@telcoinabox.co.uk www.telcoinabox.co.uk Telcoinabox FP Feb16.indd 1

TELC001 29/01/2016 16:35

Productivity

Five productivityboosting apps for your franchise 1) Slack Instant messaging and collaboration system Slack comes with a host of bots designed to help organise and manage your franchise. 2) Noteshelf Noteshelf allows users to make and record ideas on their iPad via freehand notes, diagrams, pictures and scribbles and record, save and send them as necessary. 3) Intercom Helps businesses convert views into sales and retain customers by enabling ‘chat’. It also synchronises with email and social media platforms. 4) Trello Collaboration tool Trello makes workflow easier by allowing users to create a series of interactive to-do lists and providing useful management tools. 5) CloudMagic Email integrator CloudMagic streamlines communications by enabling the aggregation of multiple email addresses from different providers into one place.

We use a number of Google apps, which have most definitely improved our productivity Jenny Williams, The Detective Project

is a key part of their training. “If franchisees need more help, I identify it and offer more training,” she adds. Williams believes that she will invest in more technology, which will enable the franchise to grow and improve its productivity. “We are currently looking to buy a CRM system and also to automate our payments and bookings,” she says. “This will really make things faster and more productive.” Mobile The phenomenal growth in smartphone adoption over the past five years means the majority of us are able to access a wide range of apps, many of which are designed for business purposes. According to tech analysts Statistica, business apps are now the second most popular category, with only games enjoying more downloads. On the surface, having a mobile workforce that’s armed with the latest business apps might seem a readymade solution to poor productivity. But, according to Nassar Hussain, managing director for Europe at SOTI, the mobility-management company, businesses need to have systems in place to regulate and manage the use of apps. He says that a central system that controls which apps are being used and monitors staff usage can prevent a device acquiring malware. It will also ensure that employees are getting the most from their devices. “The biggest thing that can affect productivity

is if a device is not usable,” he says. “This may be because the device has a problem or because the user is not able to use it properly.” Cloud Mobile technology, combined with the cloud, is opening up entirely new ways of operating for businesses. For franchises like Little Kickers, the football franchise, the use of the cloud has enabled rapid international growth. The business, founded in 2002, is operating in 18 countries and has over 240 franchisees. Its chief operating officer Frank Stanschus says staff and franchisees have increased their productivity through a variety of cloud-based technologies, including Google apps, Skype and a company intranet. “We have put a lot of effort into developing one underlying business system infrastructure that meets the needs of all of our franchisees around the world,” says Stanschus. Like Williams, Stanschus believes cloud technology makes staff more productive as it helps people to work together, share thoughts and avoid mistakes. “All 240 franchisees are connected through this set of applications and it gives us a tremendous wealth of shared experiences,” he says. “One huge advantage is that, as a franchisee, it does not matter if you are in a new territory or in one that has been running for 13 years. All franchisees can interact with each other and share their thoughts and experiences.”

elitefranchise | July 2016

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07/07/2016 14:49

DEDICATED TO HELPING SMALL & MEDIUM SIZED BUSINESSES ACHIEVE THEIR VISION

Looking for a new challenge with the safety net of a proven network? If you want to do something that you love, while giving something back, we would welcome a conversation with you.

Business Doctors is a business support franchise, dedicated to helping small and medium sized businesses achieve their vision. We are passionate about sharing our skills and experiences with others. Our aim is to offer ‘hands on’ support to business owners, enabling them to overcome their individual challenges, helping them to achieve their aspirations for growth. If you have professional experience and business acumen and you are tired of the ‘working for someone else’ why not apply your experience and develop your own truly successful business.

“I’ll never look back, it is one of the best decisions I have ever made. It has allowed me to fulfil a dream of running my own business” Andy Mee

“If you are working for yourself, you have to make sure you enjoy what you are doing” Peter Fleming

We don’t just coach, we get on the pitch!

Contact Business Doctors Today: 01744 817738 | ben@businessdoctors.co.uk | www.businessdoctors-franchise.co.uk BUSI002 BDAD.indd 1

07/07/2016 18:21

BE PART OF THE EXCITING NEW CURRENCY REVOLUTION

visit us on stand 69!

Largest cashless banking facility globally

Generate revenue 24/7

22 year old pedigree

Enjoy exponential profits

Franchising in 13 countries

Be part of a franchise community

Over 60% of businesses need our service

working ahead of the curve

UNITED KINGDOM

CHINA INDIA

SOUTH KOREA HONG KONG TAIWAN

THAILAND MALAYSIA

COSTA RICA

SINGAPORE AUSTRALIA Established herehere in Aprilin1993. Established 1993 Currently operating in twelve with over, 70,000 card countries with over 15,000 card holders in 12 countries. LSPHIVW ERH WXEÇº

NEW ZEALAND

BBX001

Enquire to: franchising@bbxuk.com 0333 4002014 www.bbxuk.com/bbx-franchise BBX.indd 1

BB UK

BUSINESS BANK EXCHANGE 07/07/2016 09:34

Operate your very own branch of The Bank of Spare Capacity. Now is your chance to be part of the CURRENCY REVOLUTION with the rise of alternative currencies gathering pace along with the acceptance of new methods to fund business growth. BBX has been a leader in the marketplace since inception in 1993 and is proud to have a strong franchising pedigree allowing it to expand into 12 countries covering 4 continents. Our franchisees invariably have a background in sales management and are good motivators and communicators. Depending on the individual strengths a franchisee will chose to build either a Regional or District franchise, details below, which both enjoy the following key beneﬁts: • Worldwide brand and proven business model. • A product at the forefront of the currency revolution currently taking place. • Earnings 24/7 due to international reach and automated systems. • High proﬁtability and re-sale values.

Regional Franchise As one of 14 regional franchisees you would be responsible for client acquisition within a defined territory and developing a sales team of up-to 15 individuals to recruit 30 new clients for each of the 5 district offices in your territory. You would also be responsible for running a regional sales office and forging links with the business heads in the area.

District Franchise A district franchisee is responsible for the ongoing client management of the accounts within a deﬁned area involving:

Regional P&L Forecast YEAR

P&L

£64,906

£133,956

£313,006

£418,342

£535,943

District P&L Forecast YEAR

P&L

£50,838

£121,015

£251,935

• Running periodic networking events

• Maximising the clients usage of our currency

£305,135 £347,396

• Establishing a District Branch oﬃce • Building a team of account managers

Enquire to: franchising@bbxuk.com 0333 4002014 www.bbxuk.com/bbx-franchise EliteFranchise1015.indd 2

BB UK

BUSINESS BANK EXCHANGE 06/10/2015 14:12

Non-compete clauses

Can’t compete? Non-compete clauses are essential to protect a franchisor from franchisees using its secret sauce to set up in opposition. But how can franchises ensure their terms are valid?

BY Kate Legg, CEO, Komerse

n the economy, as in sport, competition is generally considered to be a good thing. As a result, we have a variety of laws that prohibit commercial agreements that restrict competition. Despite this, all franchise agreements contain terms that prevent franchisees from setting up in competition. These provisions go by many different names: ‘non-compete clauses’, ‘restrictive covenants’, ‘restraint of trade‘. Call them what you will, the effect is the same. They are provisions that seek to prevent the franchisee operating a business that competes with the franchisor or the wider franchise network. But what kinds of restriction are typically found in franchise agreements? And in what circumstances will they be valid? Types of restriction Franchisees gain a lot of confidential information during their time with a network and most people would agree that it would be unfair for the franchisee to be able to use that information to compete with

Legal.indd 1

the franchisor. In light of this, all franchise agreements contain restrictions that seek to prevent the franchisee from engaging in a competing business. Typically, these restrictions will include not being involved, in any capacity, in a competing business and not soliciting employees or customers of the franchise. And they usually apply both whilst the franchisee is operating the franchise business and for a period of time after the franchise agreement ends. General rule The general rule is that any restriction that prevents competition is unenforceable. But before you get excited and rip up your franchise agreement, there are certain circumstances where the clauses will be valid. Specifically these are when there is a legitimate business interest that needs to be protected; the restrictions don’t go any further than is reasonably required to protect that interest; and the restrictions are not against the public interest.

elitefranchise | July 2016

07/07/2016 14:50

Non-compete clauses

The franchisor’s know-how, business contacts and the difficulty of recruiting a replacement franchisee if the old franchisee is allowed to compete freely are all legitimate interests that the franchisor is entitled to protect. What’s the wiggle room? The wider the scope of the restriction – considering the time period, geographical areas in which the restrictions apply and the nature of the restricted acts – the more unreasonable it becomes. A restriction that is too wide will be entirely unenforceable. The big difficulty with this is that what the franchisor thinks is reasonable will probably be considered unreasonable by the franchisee. The courts’ general view is that the people who are best placed to decide whether something is reasonable are the parties themselves, so if the parties have agreed that the provision is reasonable, the courts will be reluctant to interfere. As a result, franchise agreements will often contain It would be unfair a clause where both sides agree that the provisions are considered reasonable. for the franchisee

to be able to

What if a clause is too wide? use confidential Typically, franchisors will want to include restrictions that are as wide as possible information to for maximum protection but if a clause compete with the is too wide then it will be invalid and franchisor. unenforceable. The franchisor will often hedge their bets by including a series of very similar clauses but with a slightly different time period or geographical area in each one. The advantage of this is that if one of the clauses is too wide to be enforceable, then the franchisor can fall back on the next one with a slightly smaller scope. The stakes are high When it comes to enforcement of restrictive covenants, both sides have much at stake. If the franchisor doesn’t enforce the clause, they risk other franchisees in their network thinking it’s okay to set up an independent business using the knowledge gained from the franchisor. Equally, a franchisee who has worked in a particular industry for many years may be at a loss as to how to earn a living if they can’t continue to be involved in that industry after the franchise agreement ends. The high stakes mean that this is fruitful ground for litigation and several franchise cases have been taken to court over recent years.

Overall, the courts have shown that they are generally willing to enforce non-compete restrictions in franchise agreements, recognising that the franchisor does have a legitimate interest that needs to be protected – as long as the clause is not too wide. The generally accepted view is that restrictions lasting up to a year are almost certainly valid. Equally, a restriction that applies in the franchisee’s territory is almost certainly valid. The position is less clear cut when it comes to restrictions that apply in wider areas or for longer time periods. In that situation, the courts will look at all of the relevant facts and circumstances, including what knowledge the franchisee has learnt during their time with the network and how widely the network operates. Ultimately, the best advice for franchisors is to clearly identify the interests that you want to protect and choose restrictions that protect them – but no more. Meanwhile, a good rule of thumb for franchisees is to assume when you sign your franchise agreement that the non-compete clauses will be valid. If you’re not prepared to accept the restrictions, don’t sign up.

July 2016 | elitefranchise

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07/07/2016 14:50

Franchise RESALES

Why buy a sandwich franchise? • The British ‘on the go’ sandwich market is currently valued at £3 billion • 1.8 billion sandwiches are bought in the UK every year • A healthier fast food option

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

DYNA001

Time For a Career Change? Existing profitable business Income from day one Flexible hours Work for yourself Full training & support Opportunities available now THEO003

For more information call Andrew Cutler on:

01932 267 300 andrewc@originalposter.com

www.originalposter.com

Franchise RESALES - sponsored by Franchise ReSales July16.indd 1

07/07/2016 17:13

Franchise RESALES

Franchisee: East London

A resale opportunity has arisen in one of our franchises based in East London.

Investment: TBC

The franchisee started the business in 2004 and operates from a ‘visible’ office, complete with signage in a prominent location. The business services around 186 clients and enjoys gross annual recurring fees of circa £180,000.

Location: East London Established: 2004

Turnover: £150,000

Any purchaser would be walking into an established business, complete with furniture, IT and telephone systems along with experienced, well qualified staff. The business has enjoyed regular growth with the majority of new clients coming from recommendations and inbound leads generated from the Support Centre. This opportunity represents an excellent foundation upon which a new franchisee can further develop and grow an established business. 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. For further information please call us today on 0800 0188 297 or visit us at www.taxassistfranchise.co.uk/resales

TAXA001

Exhibit at Europe’s Fastest Growing

Franchise Exhibitions... ...and put your brand in front of thousands of qualified investors the

New Start

Scotland

17th & 18th February 2017

Justin Livingston CFE

9th & 10th September 2016

10th & 11th November 2016

James Dixon Box Events Manager

Richard Holden, Head of Franchising

Had a great show in London! Talked to great potential clients about expanding Coyote Ugly in India, UK, Ireland, Italy, Slovakia, and more!

‘‘

The best exhibition I’ve attended in the past five years. Clearly a lot of effort has gone in to promoting the show and attracting quality visitors which has convinced me that Excel is the place to be for exhibitors wanting high quality enquiries

‘‘

www.newstartscotland.com

www.thefranchiseshow.ie

‘‘

We attend this show every year and it just gets better and better. The organisation was seamless and the we will definitely be back next year.

‘‘

Secure your stand today!

‘‘

www.thefranchiseshow.co.uk

EXHIBITION

0330 1222 049 @FranchiseShowUK jemma.tonge@newstartexhibitions.com

Franchise RESALES - sponsored by Franchise ReSales July16.indd 2

07/07/2016 17:13

FRANCHISE FOCUS

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

Franchise Sales

FranchiseSales.com is the leading internet resource for franchising. Online since 2001, we have extensive experience helping prospective franchisees find and buy the right franchise and franchisors find and recruit the right people for their business. We aim to help you become an owner of your dream business, by making the process quick, simple and easy. Our clients are successful, wealthy and happy with their franchise business.

BBX001

• High quality leads • High conversion rate • Number one in Google and other search engines • Global reach

www.franchisesales.co.uk

DYNA001

Fantastic Services

Do you want to start your own business and be your own boss? What if you could deliver high quality home services without investing in marketing or advertising? Join Fantastic Services today, the only UK franchisor that finds customers for you and arranges your work schedule so that it fits your skills and preferred territory. You can now become a Cleaning, Gardening, Handyman, or Removals franchisee with a minimum investment.

• Guaranteed customers • Industry leading brand • Unlimited trading territory • Full initial training and ongoing support • Fast easy start - up to 14 days • Franchise fee starting from £1490

Phone: 020 3404 0424 | Email: franchise@joinfantastic.com | www.joinfantastic.com

FANT001

HomeXperts

The innovative HomeXperts franchise model enables you to start your own estate and letting agency working from home or a small serviced office. You will be trained to industry standards, whilst receiving continuous, comprehensive support and receive access to the awardwinning HomeXperts Franchisee Hub. By working hard and following the proven franchise model, you could secure your financial future by earning more than £25,000 in invoiced commissions in a month.

• Industry leading training package • iPad, Wide-angle lens camera, Digital measurer • 24/7 access to the award winning HomeXperts Hub • Access to all of the major UK property portals • Local website and a national branch page • Full back office support

Phone: 01905 678853 | Email: franchise@homexpertsuk.com | www.home-xperts.co.uk

HOME002

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FRANCHISE FOCUS

Mobile Workwear

Mobile Workwear is an innovative new franchise opportunity, bringing our range of reliable, hardwearing products to the businesses that need them most. Our success is built on being ‘tested to work’, from the products we offer, to our staff, suppliers and partners. As a franchisee, you can unlock the potential within that brand to create a mobile retail business limited only by your ambition.

• Low investment <£5k • Low running cost • High earning potential • Unprecedented level of support • Centralised accounts, stock and delivery control • Discounted samples

Phone: +45 87244700 or 07769 882775 | Email: mobile.workwear@mascot.dk | www.mobileworkwear.com

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Now Boarding Pet Hotels

Do you have a passion for small pets? Do you want to work from home with flexible working hours? If this sounds like you, then why not open your own Now Boarding Pet Hotel. 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. Phone: 01322 471801 | Email: enquiries@nowboardingpethotels.co.uk | www.nowboardingpethotels.co.uk

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Original Poster Company

OPC is celebrating over 25 years as the world’s leading distributor of greeting cards, selling quality products through independent retailers and national groups such as Costcutter, Nisa, etc. Our network benefits from two growing UK industries – the greeting cards industry, worth £1.6 million (GCA 2015), and the convenience sector, up 1.5% from last year (IGD). Our franchise opportunities are established businesses with stock and customers.

• Low overheads, high margin product • Proven simple business model using Cloud and iPad based technology • Attractive to retailers - they only pay for what they sell • We don’t charge royalty payments or management fees • We offer a five year renewable franchise agreement • Comprehensive training and support • Full BFA membership

Contact Andrew Cutler | Phone: 01932 267 300 | Email: andrewc@originalposter.com | www.originalposter.com

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TaxAssist Accountants

TaxAssist Accountants is the UK’s largest network of accountants servicing the needs of small businesses and the self-employed. TaxAssist takes on both accountants and business/finance professionals as franchisees can employ accountants while they concentrate on building their business. With an established brand and known for breaking with tradition in an industry that has not experienced this before, TaxAssist Accountants stand out from the crowd operating from highly visible and welcoming shop front premises.

• 5 star franchisee satisfaction award for three years running • Awards from franchise and accountancy arenas • Accountancy fee banks are a saleable asset • In demand services • 1st class support and training

Contact Jody Macmillan | Call: 0800 0188297 | Email: jody.macmillan@taxassist.co.uk | www.taxassistfranchise.co.uk

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FRANCHISE FOCUS

The Interface Financial Group

IFG 50/50 is an affordable home-based franchise that provides short-term working capital to businesses by purchasing current, quality invoices at a discount. In IFG 50/50, all transactions are handled by both the franchisor and the franchisee. Both handle due diligence and funding. The franchisor, however, handles 90% of the paperwork, leaving franchisees free to handle the ‘people’ part of the franchise.

• Above-average ROI • Low overhead - home-based • Virtually paperless • All transactions worked together • Non-territorial & Portable

Phone 0845 834 0332 | Email: ifg@interfacefinancial.com | www.interfacefinancial.co.uk

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The New Driveway Company

We are the UK’s leading independent driveway and external landscaping company and can trace our consistent growth to a clear strategy – to bring a new level of professionalism, design and customer service to the homeowners of Britain. Each franchise significantly exceeded its performance and profitability targets, confirming the viability of our innovative business model. We are now successfully rolling out our best in class franchise opportunity across the UK.

• Your own unique, extensive territory • A 3-year business plan tailored for you • Assistance with financing via Franchise Finance • Full training • Support with marketing • Well set up your virtual office

Contact Darren Field | Phone: 01235 854071 | email darren@newdrivewaycompany.com | www.newdrivewaycompany.com/elite

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Zip Yard

Are you ambitious to run your own business? Customer driven and well organised? Can you follow a proven business system? All Zip Yard franchises are finished to a distinctive specification and you are presented with a fully operational and fully supported business with trained staff and comprehensive brand marketing from day one.

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

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

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To advertise in this section please call: 01245 707556

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GET INSPIRED BY SOME OF THE UK’S MOST SUCCESSFUL FRANCHISORS Elite Franchise is the UK’s fastest-growing title for franchisees, start-ups and growing franchise businesses in the UK. A high-quality magazine, it’s packed with engaging content including interviews with the hottest franchises around, hints and tips to help aspiring entrepreneurs and columns from those in the know. SAVE £20 on the cover price delivered free to your door. Subscribe to the print edition and enjoy free access to the digital edition every month.

Receive 12 issues of the UK’s best new franchise magazine for entrepreneurs for only £20* OFFER CODE:

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DISCOVERY DAYS

To find out 100% of the information about the award-winning HomeXperts model, book your discovery meeting by emailing franchise@homexpertsuk.com.

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A discovery meeting will explain the innovative franchise model in full, helping you to decide if HomeXperts is right for you. Discovery meetings are held around the country on a weekly basis, including London, Manchester and Worcester. If you have any initial questions, call the HomeXperts Franchise Recruitment Team on 01905 678853.

‘The best part of being a franchisee is the responsibility that comes with

Ilooking am aafter franchisee & a large workforce. Givingis local a chance to this mypeople McDonald’s

develop their skills, grow in confidence, progress their ‘The best partsomething of being a franchisee career – it’s I find is the responsibility really rewarding.’ that comes with looking a large workforce. Taimoor, after operates four restaurants Giving people a chance to in Southlocal East London develop their skills, grow in confidence, progress their career – it’s something I find really rewarding.’ Taimoor, operates four restaurants in South East London

Phone: 01905 678853 Email: franchise@homexpertsuk.com www.home-xperts.co.uk

Come and talk to us at our Insight Day in Elstree 22nd July 2016 www.mcdonalds.co.uk/franchising

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Come and talk to us at our Insight Day in Elstree 22nd July 2016

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www.mcdonalds.co.uk/franchising

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Find out about our seminars and book your FREE place at www.franchise-seminars.info.

Ahead for Business IFG operates regular Franchise Office Discovery Days. For those interested in a self-employed career that involves a world connected to finance and who have a business curious analytical mind, we hope they will enjoy spending some time investigating this fascinating franchise opportunity. There with you are co-attendees researching IFG; different ages, career backgrounds and perspectives...it all adds to a constructive, productive day.

STEP INTO FRANCHISING

Ahead for Business What is franchising? How does it work? Can I be successful?

Right from the start, the heart of IFG has been to place its franchisees in a serious leadership position. Only with a network of skilled, committed and industrious franchisees can we correctly find, service and underwrite our small business clients who need prompt payment of their bills.

All of these questions and more are answered at the NatWest Franchise Seminars. We will provide advice and guidance to help you identify and choose the right franchise, so that you can enjoy the rewards and freedom of being your own boss.

We are proud of providing an ethical and sustainable source of fast finance to businesses. We’d be delighted if you wish to join us at one of our Discovery days to learn more.

You will be guided through our ‘Steps to Success’, an overview of the franchise industry, given financial advice and an insight into the operational and legal considerations of investing in a franchise.

Phone 0845 834 0332 Email: ifg@interfacefinancial.com www.interfacefinancial.co.uk

Franchise Seminars

The seminars are held regularly in Manchester, Birmingham and London.

02071 833 657

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www.franchise-seminars.info I enquiry@franchise-seminars.info

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DISCOVERY DAYS

Having seen Now Boarding Pets Hotels, you are probably wondering what to do next regarding investing in your own franchise? You’ll be happy to know we work on a 1-2-1 basis with you, and after you’ve got in touch we’ll run through some basics over the phone and then invite you in to show you exactly how the Now Boarding Pets Hotels business operates and will work for you. Get in touch today to join us in this amazing, rewarding world.

Interested Investors

One of our franchise representatives will contact you shortly to introduce themselves and the opportunity. Provided you are happy we will send you some more detailed information for you to digest. We then arrange a Q&A over the phone and if all your questions are answered satisfactory we will then invite you into the office to meet the developers and give you a full presentation covering best, conservative and worst case scenarios. From there we cover the contract and provided you are happy we welcome you on-board. To find out more about this unique franchise opportunity, please contact us via any of the below. 0207 608 5591 info@projectmglobal.com www.projectmglobal.com

Phone: 01322 471801 Email: enquiries@nowboardingpethotels.co.uk www.nowboardingpethotels.co.uk NOWB001

What are you waiting for? Lets get ‘Out There’ Come and find out about our amazing franchise opportunity. Easy and relaxed way to meet the team, ask questions, and learn about what we do and how we do it. Contact Dave Palmer on 0151 347 9333 or email david.palmer@outthere.today www.outthere.today

IF YOU’D LIKE TO TELL POTENTIAL INVESTORS HOW YOU RUN YOUR DISCOVERY DAYS OR 1-2-1’s PLEASE CALL: 01245 707516

to speak to a member of our team

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Franchise Diaries Jane Maudsley, founder & managing director, Little Voices

The potholes of franchising W Buying a franchise might be a safer way to start your own business but there are still plenty of obstacles to overcome on your way to success

hile I don’t like to focus on the negatives, it’s still important to consider all the potential risks and obstacles that could arise when building a franchise. Ultimately, this could be the difference between a successful franchise and an unsuccessful one. So what are the biggest potholes you could face when getting your business off the ground and, crucially, how can you overcome them? Finding the right support Of course your family and friends support you but they will have an emotional interest in you personally rather than a pragmatic, transparent and objective interest in your success. That’s why it pays to surround yourself with business mentors that will be there to provide impartial guidance, whether that’s a positive business advisor, a forward-thinking accountant or a legal expert. And, as much as other franchisees in a network will welcome you with open arms, you need to remember that they have their own plans and agenda. It sounds harsh but very few are genuinely happy for the ones doing really well, as they secretly wish it was them. So be mindful of this at all times and don’t get caught up in it. A wise franchisee knows what goes on and will remain stoic, run their business professionally and stick to the terms laid out in the franchise agreement. Remember why you bought the franchise in the first place, what you want from it and stay true to this.

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Taking care of your employees The money will flow if you tap into the power of your employees; they will ensure the product or service is the best that it can be. Suffice to say, if they are not happy, the outcome for your customers will be devastating. On the other hand, if your employees are looked after, respected, supported and given responsibility, your customers will be happy and become loyal to the brand. It is all about what your employees and your customers need to feel. If cracks start to appear and you don’t repair them properly, relationships will fall down. This will have a catastrophic effect on your bottom line. So if you become great with employees then customers success is sure to follow. Overcoming the fear Fear is debilitating, negative and gets you nowhere. We spend our lives looking for danger and avoiding risks but the problem is that when you look for them, they come your way. You can steer clear of this by looking ahead and focusing on what you want to happen. Look past the fear to where you want to be because there’s something bright and warm on the other side of that journey – experience, knowledge, empowerment, wisdom and success. You already know how to get there and what you have to do, so go and do it. There are always going to be problems and challenges but look to overcome them. Don’t dip too low that you cannot recover. And look to the franchisor for help and support. 82

Following the rules Do not go into or remain in franchising if you don’t like rules or if you want to be an innovator. Someone built this system before you: they have many more years of experience running it than you do. They have encountered potholes, overcome them and kept going. Franchising is not a great fit for everyone, so if it’s not for you that’s absolutely fine. Walk away from it. But if you are in it, make it work. Make the system bring you your rewards. Don’t go down the slippery slope of losing the faith and the drive you’ll need to succeed. The franchisor started the brand and will do everything in their power to make it a huge success. This will involve some strategic decisions, changes and tweaks along the way. It will all be for the good of the brand and the company as a whole. No decision will ever be taken lightly. And that’s something I can tell you as a franchisor that really cares about its franchisees. Its all about shared success amongst our entire network and we have one very clear goal: to be the best. That is at the heart of our company and it’s what drives us.

Do not go into franchising if you don’t like rules or if you want to be an innovator

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Be part of the Jan-Pro family - the fastest growing, #1 commercial cleaning franchise in the world.

Could you be our next Regional Director? Step into established successful business in Bath, Bristol, Southampton or Taunton. • • • • • • • •

Profitable business already established with GP% of 30% Bring your management expertise and create a lifestyle you love Office based, low overheads, few employees Marketing focus with multiple income streams Average Regional Director t/o after 3 years is £1.5 million Investment starts at £50,000 and up to 50% can be paid over three years. Growing market Recession resistant

Come and discuss your future with Ann Mary Wardman, UK Master franchisee in our offices in Cheddar, Somerset.

We’re growing worldwide, serving clients in 13 countries via more than 10,000 franchises. We’re now seeking additional Country Master Franchise Owners to keep our global expansion going strong.

Join Jan-Pro and become part of the #1 commercial cleaning franchise company in the world. As an experienced executive, you can apply your leadership skills directly to building your own business.

We offer home-based franchise opportunities for people who yearn to build a better life for their family. With a Jan-Pro commercial cleaning business, you control your future.

Commercial Cleaning with a difference To learn more about JAN-PRO, please contact us on: t: 01934 70472

m: 07933 753228

e: annmary.wardman@jan-pro.com

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